Terminal Demurrage and Storage Bills: The Same FMC Rules Apply

When a container sits too long at the port, the bill does not always come from the shipping line. Sometimes it comes from the marine terminal, as a demurrage or storage charge. Importers who check carrier invoices carefully often pay the terminal bill without a second look.

The FMC billing rules in 46 CFR Part 541 apply to both. The rules govern any demurrage or detention invoice issued by an ocean common carrier, a marine terminal operator, or a non-vessel-operating common carrier (541.2(a)).

Storage counts too

Part 541 defines demurrage and detention as any charges, including "per diem" charges, that a carrier, terminal or NVOCC assesses for the use of marine terminal space or shipping containers. Freight charges are excluded (541.3). So a terminal charge for a container occupying terminal space falls under the rule, whatever the line on the invoice is called.

The one relationship the rule does not cover is billing between carriers and terminals themselves (541.2(b)). An invoice sent to you is covered.

What a terminal invoice must show

Every demurrage or detention invoice must include a minimum set of details (541.6). For an import, that includes:

The bill of lading number and container number
The port of discharge
The basis for why you are the party responsible for the charge
The invoice date and due date
The free time allowed, with its start and end dates
The date the container became available
The specific dates being charged
The total amount, the rule the daily rate comes from, and the rate itself. For a terminal, the rule can be its terminal schedule.
A contact for questions, a link to the terminal's process for requesting a refund or waiver, and the time limits for that process
A statement that the charges follow the FMC's demurrage and detention rules, and that the terminal's own performance did not cause or contribute to the charges

If any of this required information is missing, the billed party has no obligation to pay that charge (541.5).

The 30 day limit

A terminal must issue the invoice within 30 calendar days of the date the charge was last incurred. If it does not, you are not required to pay (541.7(a)). If the invoice went to the wrong company, the terminal can send a corrected invoice to the right one, but only within that same 30 days (541.7(d)).

Once you receive an invoice, you have at least 30 days from the invoice date to ask for a reduction, refund or waiver, and the terminal must try to resolve it within 30 days of your request (541.8).

How to check one

1. Match the container and the bill of lading. Confirm the container is yours and the bill of lading is correct.
2. Check the dates against your own records. Compare the availability date and the free time window on the invoice with your arrival notice and the actual pickup time.
3. Look for days the box could not move. Holds, gate closures and missing appointments are worth a closer look against the dates charged.
4. Count from the last charged day to the invoice date. If it is more than 30 days, the charge does not have to be paid.
5. Check every required item on the list above. A missing item removes the obligation to pay that charge.

One difference from carrier bills

The FMC's Charge Complaint process covers charges assessed by common carriers. A marine terminal operator is not a common carrier, so a terminal bill is disputed directly with the terminal, using the rights in Part 541.

Want a second look?

If a terminal storage or demurrage bill landed on your desk, send it over. I will check it against these rules and tell you plainly whether it holds up.

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