I want to learn about the deumurage and detention process . current D&D/OSRA Environments and rules

Welcome! I am excited to guide you through how Ocean Shipping Reform Act (OSRA) regulations affect container fees.

To start, what is your role in the supply chain (e.g., importer, freight forwarder, or broker), and what specific challenges are you facing with D&D charges?

I'm new to this and just want a general overview.

Welcome! I am glad to help you get up to speed on this topic.

Your path

Key Compliance Requirements

Dispute Resolution and Best Practices

What Are Demurrage and Detention?

At their core, both and are late fees charged by ocean carriers or terminal operators to keep container traffic moving. The easiest way to remember the difference is by looking at where the container is located:

Demurrage applies when a full shipping container remains inside the port terminal past its allowed free time.
Detention applies when you have moved the container outside the port (e.g., to a warehouse), but fail to return the empty equipment back to the carrier on time.

Give an example of a demurrage fee scenario

That example shows how quickly these daily costs add up when equipment gets stuck. Now that we've covered what demurrage and detention are, let's look at why Congress stepped in to reform these rules.

The Purpose of OSRA 2022

During recent years of heavy port congestion, shippers often faced massive D&D fees for delays they couldn't control, like a port being too backed up to accept an empty container return or having no available pickup appointments. To address this, Congress passed the (OSRA) of 2022. Its main goal is to promote fairness and transparency in international shipping. OSRA shifts the burden back to ocean carriers, ensuring penalties are used solely to keep freight moving efficiently rather than serving as a revenue builder when shippers are powerless to move their containers.

What power does the FMC have to enforce OSRA?

To enforce OSRA, the (FMC) was given broad authority to investigate unfair billing practices and penalize carriers directly.

Specifically, the FMC expanded its investigative staff and established an interim direct complaint portal where shippers can submit contested charges. If an ocean carrier is found to have issued an improper or non-compliant demurrage or detention invoice, the FMC can strike down the fee entirely and impose civil monetary penalties on the carrier.

What penalties do carriers face for invalid fees?

Carriers face severe consequences, including direct financial penalties and the total cancellation of the disputed fee. If an ocean carrier issues an improper or non-compliant demurrage or detention invoice, the (FMC) can declare the entire charge void, meaning you do not have to pay it at all.

The FMC Final Rule on Billing Practices

To give these penalties teeth, the FMC published a landmark (codified at 46 CFR Part 541) that transformed how container fees are billed. Under this rule, carriers and terminal operators must follow strict rules:

Mandatory Invoice Elements: Every invoice must include over a dozen required data points, including container numbers, free time declarations, port dates, and specific instructions on how to dispute the fee.
Strict Issuance Timelines: Carriers must issue demurrage or detention invoices within 30 calendar days from when the fee stops accruing. If they miss this deadline, the shipper's obligation to pay is eliminated.
Dispute Windows: Invoices must give shippers at least 30 calendar days from the invoice date to submit a formal dispute or mitigation request.