Process your per diem invoices with ease

On May 28, 2024, the Federal Maritime Commission’s (FMC) final rule specifying guidelines for billing detention and demurrage (per diem) went into effect. This final rule set requirements for minimum amounts of information that must be included on detention and demurrage invoices, outlined detention and demurrage billing practices, and set timelines for issuing and disputing invoices. Some key takeaways from the FMC’s final rule:

Billable Party: The FMC’s final rule dictates that detention and demurrage (per diem) invoices must be sent to

either:

– The person for whose account the billing party provided ocean transportation or storage

of cargo and who contracted with the billing party for the ocean transportation or storage

of cargo

OR

– The consignee

EXCEPT

– In the case of Merchant Haulage moves, ocean carriers may still bill the trucker for

detention and demurrage.

Billing Timeline: The FMC’s final rule requires vessel-operating common carriers (VOCCs) and multimodal

transport operators (MTOs) to issue detention and demurrage invoices within 30 calendar days

of when charges were last incurred. Non-vessel-operating common carriers (NVOCCs) must

issue their invoices within 30 calendar days of the issuance date of the invoice they received. If

these timeframes are not adhered to, the billed party is under no obligation to pay the invoice.

If a billing party mistakenly invoices an incorrect party, they may issue a new invoice to the

correct party so long as the corrected invoice is still issued within the 30 day timeframe. If it is

not, there is no requirement for the billed party to pay the corrected invoice.