D&D Billings Returning to Pre-Pandemic Levels, FMC Says

Detention and demurrage billings appear to have returned to pre-pandemic levels after spiking during the last few years, said Jason Guthrie, an official with the Federal Maritime Commission's Bureau of Trade Analysis.

Guthrie, speaking during a May 29 FMC meeting, said the dollar amount of billings reached a "peak" in 2022, but data from the fourth quarter of 2023 shows they're declining. "This is not to suggest that detention and demurrage are no longer an issue of interest to the FMC," he said. "It is encouraging evidence, however, that the commission's efforts in terms of establishing best practices, its ongoing enforcement activities" and the FMC's rulemaking on billing practices (see 2402230028) "could continue to reduce the negative impacts of excessive detention and demurrage on U.S. ocean commerce."

Terra Nielsen, an FMC lawyer, said the number of reported disputes surrounding detention and demurrage charges were "relatively flat" during the last two quarters of 2023, and they were about the same as the number of disputes that were resolved during that time period. "It therefore appears that the carriers are able to keep up with reviewing and responding to these complaints at their current levels in a timely fashion," she said.