FIATA FMC toolkit provides guidance to members on unjust demurrage and detention practices
FIATA (International Federation of Freight Forwarders Associations) has published a toolkit on the US Federal Maritime Commission (FMC) Final Rule on Demurrage and Detention to help its members leverage this information in their national contexts.
The FMC’s decision came after six years of investigation with all actors in the supply chain, including FIATA, which concluded the likeliness of a long history of unjust and unfair demurrage and detention practices. Whilst there are country and port related variances, the FMC findings apply globally as demurrage and detention is a common and widespread topic of contention.
FIATA welcomes the FMC rule following years of complaints from freight forwarders that demurrage and detention practices unfairly penalized them for circumstances outside their control. Governments worldwide must have greater scrutiny over these practices to ensure that they are considerate and reasonable for the good of their own economies.
“There will be many lessons to take away from the current health crisis, one being that we must ensure the fluidity and well-functioning of the supply chain to deliver essential goods – now and beyond the pandemic,” said Dr Stephane Graber, FIATA Director General. “We hope that our members will benefit from this toolkit to accomplish precisely that, following the release of these important considerations regarding demurrage and detention.”
The FIATA FMC toolkit was developed under the guidance of the Working Group Sea Transport and is meant to empower members to promote the rule in their own countries. The toolkit includes a quick start guide; a template press release to be adapted to national contexts calling for government support of the rule; presentation slides containing information on the matter to be distributed to policymakers, regulators and industry stakeholders; and a detailed analysis document of the FMC Final Rule to be used as a key reference point to delve deeper into the different aspects of the rule, together with the original text annexed.
The FMC toolkit is a crucial step in FIATA’s commitment to play a leading role on the worldwide issue of demurrage and detention. It follows FIATA’s 2018 Best Practice Guide on Demurrage and Detention on Container Shipping, as well as subsequent press releases, where FIATA urged the FMC to provide the necessary guidance to ensure a level playing field, and supported the adoption of the incentive principle as part of the FMC’s interpretive approach.