Dear Valued Customers,
A D.C. Circuit Court ruling issued September 23, 2025, struck down a Federal Maritime Commission rule that had prevented ocean carriers from billing motor for demurrage and detention fees. This means that ocean carriers can now resume the practice of billing motor carriers directly for these fees.
The Federal Maritime Commission is reviewing the federal court’s decision, saying it “will take appropriate action going forward.”
The court’s decision was made in response to a challenge from the World Shipping Council and is a significant reversal for motor carriers, who had been protected from direct billing for demurrage and detention charges under the now-partially-vacated FMC rule.
It is important to note that the court only vacated the part of the rule that limited who could be billed. Other provisions of the FMC’s billing rules remain in effect, including requirements for timely and detailed invoicing, and reasonable dispute resolution processes. Trucking companies are advised to review their haulage agreements and make sure they understand the terms governing detention and demurrage.
In light of the circuit court ruling, the Association of Bi-State Motor Carriers has reached out to Ocean Carrier representatives and other coalition partners to determine the best path forward. It is the Bi-State’s goal to ensure that detention and demurrage billing practices remain fair and do not pose an undue burden on motor carriers’ ability to move freight efficiently for their customers. The Bi-State is assessing any potential mitigation opportunities through the UIIA and/or additional federal reforms as well.
The Bi-State is also consulting with Allied Member PortPro on their technology system, which helps streamline the documentation gathering process for filing detention and demurrage billing disputes if/when direct invoicing of motor carriers resumes.
Schedule a consultation with Heavy Weight Transport to learn more about how the updated FMC billing rule directive impacts your heavy weight or standard drayage needs.
