S4.E16 - Holidays and Weekends subject to Detention and Demurrage billing? FMC has something NEW to say about it...
Description
Topic of the Week (2/21/25):
Did the FMC just clear up D&D billing on holidays and weekends? Yes, but don’t count your chickens yet—it may still be fluid…
⚓ The Maritime Professor® presents By Land and By Sea Podcast 🎙️ – an attorney breaking down the week in supply chain
with Lauren Beagen (Founder of The Maritime Professor® and Squall Strategies®)
Let’s dive in...
🔹 Top Three Stories of the Week:
1️⃣ Trump’s Executive Order on Independent Regulatory Agencies
📜 A new Executive Order asserts greater presidential oversight over independent agencies, including the FMC. This could change how shipping regulations are reviewed before being finalized.
📖 Read the full Executive Order: https://www.federalregister.gov/documents/2025/02/24/2025-03063/ensuring-accountability-for-all-agencies
2️⃣ Proposed Tax on Foreign-Flagged Ships
💰 The newly confirmed U.S. Commerce Secretary suggested taxing foreign-flagged ships, including cruise ships and supertankers, to level the playing field for U.S. interests. Could this lead to a push for U.S.-flagged cruise ships?
📖 Read Greg Miller’s Lloyd’s List report: www.lloydslist.com/LL1152653
3️⃣ USMX & ILA Master Contract Update
⚓ The ILA and USMX master contract vote is scheduled for February 25, 2025, with an extension filed at the FMC until March 31, 2025, allowing time for ratification.
📖 View the FMC filing: https://www2.fmc.gov/FMC.Agreements.Web/Public/AgreementHistory/8153
⬛ Deep Dive: FMC’s Decision on D&D Charges Over Holidays & Weekends
The FMC ruled (after an appeal and remand) that charging detention fees on days when ports are closed does not promote freight fluidity—a key principle in demurrage and detention regulations.
🛑 Why does this matter?
🔹 The FMC reaffirmed that detention charges should incentivize cargo movement, not serve as penalties.
🔹 Holidays and weekends should generally not accrue detention charges if terminals are closed.
🔹 The decision could still be challenged, but for now, it seems to be a win for shippers and truckers.
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❗ This content is for educational purposes only and not legal advice. If you need an attorney, contact one.
#ByLandAndBySea #FMC #MaritimeLaw #SupplyChain #DetentionCharges #Regulations
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