[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