Visibility Matters: Mitigating Detention and Demurrage Charges with SiteTrax Data

Learn how to navigate the future landscape as the new FMC regulations went live on May 28, 2024.

As the new FMC rule clarifying the billing procedures for detention and demurrage charges by common carriers and marine terminal operators went into effect on May 28, 2024, understanding and navigating the new landscape may be challenging. While the rule is designed to streamline practices and ensure fairness in billing, it makes clear that now more than ever, having good data is essential for a smooth transition. SiteTrax stands poised to assist in providing visibility and reliable data.

What is the rule?

On February 26, 2024, the Federal Maritime Commission (FMC) released a final regulation governing detention and demurrage billing conditions. Except for a few invoicing requirements, the rule went into effect on May 28, 2024, after FMC received the go-ahead from the Office of Management and Budget (OMB).

The new rule aims to promote supply chain fluidity by ensuring a clear connection between the fee and the failure to return equipment or pick up cargo on time. However, this will impact billing parties and invoice information.

Detention and demurrage invoices can only be issued to the person who contracted for the ocean transportation or cargo storage, or the cargo’s ultimate recipient (consignee). Truckers will no longer be charged detention and demurrage at ports.

Furthermore, detention and demurrage invoices must include enough information to help the billed party identify a contact for questions and understand the process for requesting a refund, waiver, or fee mitigation. This consists of an email, phone number, or other contact information. The billed party isn’t obligated to pay the charge if the invoice doesn’t include the required information.

A Clear Path to Knowing Where Your Stuff Is and Avoiding Fees

With the introduction of the new regulation, it is vital to know when a container is at risk of incurring fees to ensure costs are kept to a minimum. To do this, you have to know the location of the asset with accuracy and timeliness, two major challenges that plague logistics visibility. With demonstrated in-gate and out-gate accuracy of over 97%, SiteTrax is here to help and eliminate the uncertainty.

Using any smartphone, tablet, or security style camera, the user-friendly platform captures your asset IDs, geolocation, and timestamp. SiteTrax then pushes the data captured to your management system giving you a real and accurate picture into your assets current status.

Some of the key features of SiteTrax that help avoid detention and demurrage charges include:

In-Gate and Out-Gate Tracking
Proof-of-Pickup and Proof-of-Delivery
Yard Inventory

Are you ready for SiteTrax to guide you through the new FMC rule?

FMS’s new rule change is a long-term solution for streamlining services within the supply chain. As companies begin to experience the effects of these changes, obtaining good data is the best approach to adeptly adjusting and avoiding costly practices. Get in touch with the SiteTrax team to find out more about how SiteTrax’s state-of-the-art asset tracking platform can help your company.

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