[Federal Register Volume 89, Number 91 (Thursday, May 9, 2024)]
[Rules and Regulations]
[Pages 39569-39570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10136]
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FEDERAL MARITIME COMMISSION
46 CFR Part 541
[Docket No. FMC-2022-0066]
RIN 3072-AC90
Demurrage and Detention Billing Requirements; Correction
AGENCY: Federal Maritime Commission.
ACTION: Final rule; correction.
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SUMMARY: This document corrects the preamble to a final rule published
in the Federal Register on February 26, 2024, concerning demurrage and
detention billing requirements. This correction provides information
regarding situations in which vessel-operating common carriers (VOCCs)
enter into written contracts with motor carriers that use containers in
the transportation of goods.
DATES: This action is effective on May 9, 2024.
ADDRESSES: To view background documents or comments received, you may
use the Federal eRulemaking Portal at www.regulations.gov under Docket
No. FMC-2022-0066.
FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email: [email protected].
SUPPLEMENTARY INFORMATION: The Commission notes that it has received
several inquiries concerning a possible discrepancy between the rule
text and one paragraph in the preamble, found at page 14336.\1\ The
Commission
[[Page 39570]]
appreciates these inquiries as they reflect the strong interest within
the shipping industry in ensuring compliance with applicable
regulations. These inquiries have helped this clarification issue well
before the rule goes into effect on May 28, 2024.
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\1\ ``In regard to the second comment, there seems to be a
misunderstanding on the commenter's part about the rule's
applicability. As discussed in the NPRM, a primary purpose of this
rule is to stop demurrage and detention invoices from being sent to
parties who did not negotiate contract terms with the billing party.
That concern is not present where a motor carrier has directly
contracted with a VOCC. Nothing in this rule, either in the proposed
or final version, prohibits a VOCC from issuing a demurrage or
detention invoice to a motor carrier when a contractual relationship
exists between the VOCC and the motor carrier for the motor carrier
to provide carriage or storage of goods to the VOCC. The definition
of ``billed party'' is intentionally broad to capture any party to
whom a detention or demurrage invoice is issued. When a VOCC issues
a detention or demurrage invoice to a motor carrier, the VOCC must
comply with the requirements of part 541. The Commission has
jurisdiction over common carriers, marine terminal operators (MTOs),
and ocean transportation intermediaries (OTIs), including over
through transportation. Without knowing the particulars of the
hypothetical, in this situation, presumably the FMC's jurisdiction,
and thus this rule, would apply only to cargo moved inland under a
through bill of lading and contracts between a VOCC. A motor carrier
not based on a through bill of lading would likely be outside the
scope of this rule.''
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In the preamble, the Commission responded to a comment requesting
that we amend the definition of ``billed party'' to address situations
in which vessel-operating common carriers (VOCCs) enter into written
contracts with motor carriers that use containers in the transportation
of goods. The Commission responded by declining to adopt this proposed
change, and we now reiterate that conclusion--demurrage and detention
should be billed 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.
The Commission's explanation in the preamble was intended to
further explain that the rule only addresses carrier-trucker
relationships on through bills of lading. The Commission meant this to
be understood in the context of its statement that ``the FMC's
jurisdiction, and thus this rule, would apply only to cargo moved
inland under a through bill of lading and contracts between a VOCC
[and] a motor carrier not based on a through bill of lading would
likely be outside the scope of this rule.'' We further did not intend
the paragraph to suggest that there is an exception to the rule's clear
direction regarding who may be a ``billed party''. However, we now see
that the inadvertent inclusion of certain language renders this comment
response ambiguous, and we take this opportunity to clarify our
intention by correcting the language in the preamble.
Accordingly, in FR Doc. 2024-02926, on page 14336, in the third
column, the paragraph beginning with ``In regard to . . .'' is
corrected to read as follows:
``In regard to the second comment, the rule makes clear that
demurrage and detention invoices can only be issued 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. As discussed in the NPRM, a primary purpose of this
rule is to stop demurrage and detention invoices from being sent to
parties who did not negotiate contract terms for ocean
transportation or storage of cargo with the billing party. When a
VOCC issues a detention or demurrage invoice, the VOCC must comply
with the requirements of part 541. However, in our response to this
specific comment, we presume that the FMC's jurisdiction would apply
only to cargo moved inland under a through bill of lading, and that
contracts between a VOCC and a motor carrier not based on a through
bill of lading would likely be outside the scope of this rule.''
By the Commission.
Dated: May 3, 2024.
David Eng,
Secretary.
[FR Doc. 2024-10136 Filed 5-8-24; 8:45 am]
BILLING CODE 6730-02-P