FMC demurrage and detention billing rule: what an invoice must contain and how to dispute it
Updated · Rotomal
Under 46 CFR part 541, a demurrage or detention invoice must be issued within 30 calendar days of the date the charge was last incurred, and it must include a minimum set of information. If it is late or incomplete, the billed party does not have to pay. The invoice must give you at least 30 calendar days to request a refund or waiver, and the billing party must then try to resolve the request within 30 calendar days.
What the invoice must contain
- Identifying information: bill of lading number(s), container number(s), port(s) of discharge for imports, and why the billed party is the proper party to pay.
- Timing: invoice date and due date, allowed free time in days, free-time start and end dates, container availability date for imports, earliest return date for exports, and the dates on which the charge applied.
- Rates: total amount due, the tariff rule or service contract that applies, and the specific rate(s).
- Dispute information: a contact for questions, a URL or QR code to a public page describing what documents a dispute needs, and the time limits for requests and for resolution.
- Certifications: that the charges comply with FMC rules, including part 541 and 46 CFR 545.5, and that the billing party's own performance did not cause or contribute to the charges.
The two 30-day clocks
| Clock | Starts | Length | If it is missed |
|---|---|---|---|
| Issuing the invoice | Date the charge was last incurred | 30 calendar days | The billed party is not required to pay (541.7) |
| Your request for mitigation, refund or waiver | Invoice issue date | At least 30 calendar days | The rule sets no outcome; a late request depends on the billing party's goodwill |
| Billing party's answer | Receipt of your request | 30 calendar days unless both agree to longer | Note it in your file and follow up |
An NVOCC that receives an invoice and passes it on must issue its own invoice within 30 calendar days of the date of the invoice it received (541.7(b)). If its customer disputes, the NVOCC can notify its billing party, which must then give the NVOCC an additional 30 calendar days to dispute the charge (541.7(c)).
How to check an invoice in ten minutes
- Find the last day the charge accrued and count to the invoice date. More than 30 calendar days means it was issued late.
- Tick each required item from the list above. A missing item is enough.
- Rebuild the free time from the arrival notice or availability date and your gate-out and empty-return dates, then compare the chargeable days.
- Check the rate against the tariff rule or service contract the invoice cites.
- Write down your request deadline and send the dispute before it.
What to put in a dispute
Keep it short. Give the invoice number, the B/L and container numbers, the section the invoice breaks (for example, 'free-time start date not stated, 46 CFR 541.6(b)' or 'issued more than 30 days after the last charge, 46 CFR 541.7'), what you are asking for (waiver, refund or corrected invoice), and your own dates as evidence. Send it to the dispute contact the invoice names and keep the sent email.
If you want help
Demurrage Check runs this check on every invoice you forward, recalculates free time from your dates, and gives you a ready dispute with both deadlines, from $39 per month. This guide is general information, not legal advice.
Questions
When did the FMC billing rule start?
Part 541 was published in the Federal Register on 26 February 2024 (89 FR 14362) and applies to invoices issued after it took effect.
Does a missing item really cancel the charge?
Section 541.5 says that leaving out required information eliminates the billed party's obligation to pay that charge. Section 541.7(d) lets a billing party reissue an invoice to the correct party only within 30 days of the date the charge was last incurred.
Is the 30-day dispute window always exactly 30 days?
No. It is a minimum. The invoice must state the window, and it cannot be shorter than 30 calendar days from the invoice date.
Sources
- 46 CFR 541.6, contents of invoice (Cornell LII) Source: law.cornell.edu
- 46 CFR 541.7, issuance of invoices (Cornell LII) Source: law.cornell.edu
- 46 CFR 541.8, billing disputes (Cornell LII) Source: law.cornell.edu
- 46 CFR 541.5, failure to include required information (Cornell LII) Source: law.cornell.edu
- 46 CFR part 541, source note 89 FR 14362 (Cornell LII) Source: law.cornell.edu