U.S. Regulatory Update | New FMC Rules Impacting Your International Trade Business Effective May 2024

Critical Changes to Demurrage & Detention (D&D) Charges

During the 2021 port congestion crisis, major U.S. ports like Los Angeles and Long Beach implemented controversial container dwell fees of $100 per container per day. After extensive industry consultation, the Federal Maritime Commission (FMC) has announced significant reforms effective May 28, 2024.

Key Changes in the New Regulations:

1. Revised Billing Parties

●  D&D invoices may now be issued to either:
          ▪  Shippers (parties contracting for ocean transportation)
          ▪  Consignees (final receivers of goods)

●  Critical change: No more duplicate billing to multiple parties

2. Strict Billing Timelines

●  Carriers/terminal operators must issue D&D invoices within 30 days of last charge

●  Recipients get minimum 30 days to dispute charges

●  Disputes must be resolved within 30 days (unless mutually extended)

3. Enhanced Invoice Requirements

•  All D&D invoices must now include detailed supporting information

•  Game-changing provision: Recipients may withhold payment for non-compliant invoices

What This Means for Traders

The reforms bring three major advantages:

•  Cost Protection - Truckers/third parties without direct contracts are now shielded from D&D charges

•  Dispute Resolution - Clearer processes for challenging unreasonable fees

•  Cash Flow Benefits - More predictable billing cycles and dispute timelines

Action Plan for Compliance

✔ Review current shipping contracts for D&D terms
✔ Update accounting processes to track 30-day billing windows
✔ Train logistics teams on new dispute procedures
✔ Optimize pickup schedules - while deadlines remain, the reforms allow smarter planning

Important Note: These changes don't eliminate D&D fees entirely - timely cargo pickup and clearance remain essential to avoid charges.

SS Group : Your Partner in Navigating the Changes

Founded in 1973 in San Francisco, SSA Global provides comprehensive supply chain solutions including:

•  Full-port U.S. customs clearance

•  Third-party warehousing & distribution

•  Overseas warehouse transshipment

•  Nationwide container drayage services

•  C-TPAT certified since 2003

With 50+ years of trade compliance experience and handling 10,000+ monthly containers, we help businesses:
       ▪  Maximize savings under the new rules
       ▪  Streamline port operations
       ▪  Maintain perfect compliance

Contact our experts today to optimize your logistics strategy for the May 28 changes.