No more detention fees with FMC rule for container billing practices

During the pandemic, these charges were significantly high for carriers and have become a major source of controversy within the supply chain, as mentioned by Jonathan Eisen, Executive Director of the Intermodal Motor Carriers Conference of the American Trucking Associations to Transport Topics. In 2022, when the Ocean Shipping Reform was passed, the IMCC and ATA urged Congress to include this clarification, as cargo carriers have faced significant charges from maritime carriers when containers are delayed.

With the new resolution, cargo transportation companies won’t need to seek reimbursements from shippers, which will alter the supply chain. The FMC stated that this new regulation will impact short-haul transportation companies operating at ports, as well as trucking companies tasked with transporting international containers from inland rail facilities. Eisen emphasized the importance of contracting parties collaborating closely.

Matt Schrap, CEO of the Harbor Trucking Association, noted that issues with billing practices have persisted for over 20 years. He highlighted that the key word in this resolution is responsibility, emphasizing that it’s not just about how much is charged, the type of equipment billed, or the allowable storage time. Clearing up misunderstandings about cargo transportation will be possible thanks to this new provision from the FMC.