46 CFR Part 541 · Ocean Shipping Reform Act of 2022 (Pub. L. 117-146)
The FMC billing rule, section by section.
What every demurrage and detention invoice must contain, when it must issue, how disputes work, and where the charge complaint process fits.
Background: OSRA 2022
The Ocean Shipping Reform Act of 2022 (Pub. L. 117-146) was signed on June 16, 2022. Among other changes it directed the Federal Maritime Commission to set rules for what demurrage and detention invoices must contain, and it created a charge complaint process at 46 U.S.C. § 41310.
The FMC's final rule, “Demurrage and Detention Billing Requirements,” was published at 89 Fed. Reg. 14330 (February 26, 2024) and took effect on May 28, 2024. In that rulemaking the Commission noted that nine of the largest carriers serving US trades charged approximately $8.9 billion in D&D between 2020 and 2022 and collected approximately $6.9 billion.
Scope and billing parties
Part 541 governs invoices for demurrage and detention issued by billing parties: ocean common carriers, which includes vessel-operating carriers (VOCCs) and NVOCCs, and marine terminal operators. It covers both imports and exports, and charges billed directly or passed through an intermediary.
§ 541.6: the minimum invoice contents
Every invoice must be accurate and contain sufficient information for the billed party to act on it. The rule lists twenty minimum items in five groups.
Identifying information
- Bill of lading number(s) (§ 541.6(a)(1)). Every B/L the charge relates to, so the billed party can tie the invoice to a shipment.
- Container number(s) (§ 541.6(a)(2)). The specific equipment billed. Charges cannot be pooled across unnamed containers.
- Port(s) of discharge (imports) (§ 541.6(a)(3)). Where the container was discharged, which sets the terminal and free-time context.
- Basis for billed-party liability (§ 541.6(a)(4)). Why the recipient is the proper party: the contracting party for carriage or storage, or the consignee.
Timing information
- Invoice date (§ 541.6(b)(1)). Starts the billed party's dispute window and proves the 30-day issuance deadline was met.
- Invoice due date (§ 541.6(b)(2)). When payment is due. Must leave room for the 30-day relief request window.
- Allowed free time in days (§ 541.6(b)(3)). The free time granted under the tariff, contract or terminal schedule.
- Start date of free time (§ 541.6(b)(4)). The day free time began. Often wrong when availability lagged discharge.
- End date of free time (§ 541.6(b)(5)). The last free day. Billing must begin after it, not on it.
- Container availability date (imports) (§ 541.6(b)(6)). When the box was actually available for pickup. The most frequently omitted element.
- Earliest return date (exports) (§ 541.6(b)(7)). The first day the terminal would accept the export load.
- Specific dates charged (§ 541.6(b)(8)). Each calendar day for which demurrage or detention accrued.
Rate information
- Total amount due (§ 541.6(c)(1)). The full amount billed.
- Applicable rule or contract (§ 541.6(c)(2)). Tariff name and rule number, terminal schedule, or service contract number and section.
- Specific rate(s) (§ 541.6(c)(3)). The per-day rate or tiered rates applied under that rule.
Dispute information
- Contact for questions and relief requests (§ 541.6(d)(1)). A named route (email, phone or portal) for mitigation, refund or waiver requests.
- URL, QR code or digital watermark (§ 541.6(d)(2)). A digital pointer to a public page describing what a relief request must include.
- Dispute and resolution timeframes (§ 541.6(d)(3)). The window to request relief and the billing party's own resolution deadline.
Certification information
- Certification of FMC rule consistency (§ 541.6(e)(1)). A statement that the charges are consistent with the Commission's D&D rules.
- Certification of no contributing performance (§ 541.6(e)(2)). A statement that the billing party's own performance did not cause or contribute to the charges.
§ 541.5: failure to include required information
If an invoice omits any of the required minimum information, the billed party's obligation to pay the charge is eliminated. This is the provision that turns a missing availability date or a missing certification into a complete defense rather than a quibble.
§ 541.7: issuance deadlines
- 30 days from last incurred. A billing party must issue the invoice within 30 calendar days of the date the charge was last incurred, or the billed party is not required to pay (§ 541.7(a)).
- NVOCC pass-through. An NVOCC must issue its invoice within 30 calendar days of the issuance date of the invoice it received (§ 541.7(b)).
- Dispute extension for NVOCCs. When the NVOCC's customer disputes, the NVOCC can notify its billing party and gets an additional 30 days to dispute (§ 541.7(c)).
- Wrong party. A billing party that invoiced the wrong person can invoice the correct party within 30 days of the date the charge was last incurred (§ 541.7(d)).
§ 541.8: requests for mitigation, refund or waiver
Billed parties must have at least 30 calendar days from the invoice issuance date to request mitigation, refund or waiver. Billing parties must resolve requests within 30 calendar days of receipt, unless both sides agree to a different timeline. The invoice itself must state these timeframes and give a contact and a URL, QR code or watermark describing what a request needs.
46 CFR § 545.5: the incentive principle
The Commission's 2020 interpretive rule explains how it assesses whether demurrage and detention practices are reasonable under 46 U.S.C. § 41102(c). The central question is whether a charge serves its purpose of incentivizing the movement of cargo and equipment. The rule lists factors the Commission may consider, including cargo availability and government inspections, and says detention is likely to be found unreasonable when empty return was not possible, absent extenuating circumstances.
In practice, that is why day-by-day records of availability, holds, closures, appointments and empty-return refusals matter: they show whether a charge could have prompted any action at all.
46 U.S.C. § 41310: charge complaints
Any person may submit a charge complaint alleging that a common carrier's charge violates 46 U.S.C. § 41104(a) or § 41102(c). For demurrage and detention charges, the common carrier bears the burden of establishing that the charge was reasonable. The Commission can order a refund, and carriers may refund or waive charges voluntarily before a decision. The process excludes charges invoiced before June 16, 2022 and, under FMC guidance, terminal charges unless assessed on a carrier's behalf.
ATAHSKIA prepares complaint dossiers for billed parties to submit. It does not submit them or represent anyone before the Commission.
What changed in 2025
As originally adopted, § 541.4 limited who could properly be billed. On September 23, 2025 the U.S. Court of Appeals for the D.C. Circuit vacated that section in World Shipping Council v. FMC, and the Commission later removed it; it now appears as reserved. The rest of Part 541, including the § 541.6 requirement that each invoice state the basis for the billed party's liability, remains in effect.
FAQ
When did 46 CFR Part 541 take effect?
The final rule was published at 89 Fed. Reg. 14330 (February 26, 2024) and took effect May 28, 2024.
Does Part 541 apply to marine terminal operators?
Yes. Billing parties include ocean common carriers (VOCCs and NVOCCs) and marine terminal operators that bill demurrage or detention.
Is ATAHSKIA's guide legal advice?
No. It explains the published rule. For advice on a specific dispute or formal proceeding, consult maritime counsel.
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