D&D Final Rule 'Silent' on Important Fee Issues, Industry Official Says

The Federal Maritime Commission's recently issued final rule on detention and demurrage billing requirements was "silent" on some of the recommendations the National Shipping Advisory Committee has offered in recent months (see 2403070061), said Rich Roche, NSAC member and senior vice president at Mohawk Global.

Roche said the FMC acknowledged the NSAC concerns but has declined to provide the committee with more details, pointing to ongoing cases or the fact that some of these issues may be addressed in "future regulation." The cases the FMC cited have been settled and no precedent-setting jurisdiction or recommendations have come out of those cases, Roche said.

But, without a regulatory fix, certain issues surrounding fee disputes won't change, Roche said, and will instead be left to the "shipping public" to fight on a case by case basis.

Roche, speaking during a NSAC meeting this week, said NSAC has asked the commission to address which agency has authority over railroad storage fees and other issues surrounding excess dwell fees; early receipt dates; and demurrage and detention involving government holds.

The FMC clarified in May that it only has authority on cargo moving inland under a through bill of lading and any contracts that are made between a motor carrier and a vessel-operating common carrier without the through bill of lading would "likely be" outside the scope of the commission's new rule (see 2405080026).

Roche also applauded the FMC for its rulemaking progress so far this year, and said NSAC has started a working group focused on the FMC's ongoing rulemaking covering unreasonable carrier conduct (see 2306120075).