Rule2025-23920
Demurrage and Detention Billing Requirements Properly Issued Invoices Provision Set Aside by Court
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 29, 2025
Effective
December 29, 2025
Issuing agencies
Federal Maritime Commission
Abstract
This final rule removes from the Code of Federal Regulations a section of the final rule published on February 26, 2024, entitled "Demurrage and Detention Billing Requirements." This action is responsive to a decision of the U.S. Court of Appeals for the District of Columbia Circuit that set aside the properly issued invoices provision of the rule.
Full Text
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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Rules and Regulations]
[Pages 60579-60580]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23920]
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FEDERAL MARITIME COMMISSION
46 CFR Part 541
[Docket No. FMC-2025-0107]
RIN 3072-AD08
Demurrage and Detention Billing Requirements Properly Issued
Invoices Provision Set Aside by Court
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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SUMMARY: This final rule removes from the Code of Federal Regulations a
section of the final rule published on February 26, 2024, entitled
``Demurrage and Detention Billing Requirements.'' This action is
responsive to a decision of the U.S. Court of Appeals for the District
of Columbia Circuit that set aside the properly issued invoices
provision of the rule.
DATES: This action is effective on December 29, 2025.
FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email:<a href="/cdn-cgi/l/email-protection#c2b1a7a1b0a7b6a3b0bb82a4afa1eca5adb4"><span class="__cf_email__" data-cfemail="a9dacccadbccddc8dbd0e9cfc4ca87cec6df">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On February 26, 2024, the Federal Maritime
Commission (Commission) published a final rule entitled ``Demurrage and
Detention Billing Requirements'' under the authority of the Ocean
Shipping Reform Act of 2022, Public Law 117-14 (June 16, 2022), 89 FR
14330. This rule established requirements for common carriers and
marine terminal operators to include specific minimum information on
demurrage and detention invoices, outlined certain detention and
demurrage billing practices, such as determination of which parties may
appropriately be billed for demurrage or detention charges, and set
timeframes for issuing invoices, disputing charges with the billing
party, and resolving such disputes.
In April 2024, the World Shipping Council, a trade association
representing the largest vessel-operating common
[[Page 60580]]
carriers globally, filed a petition for review in the United States
Court of Appeals for the District of Columbia Circuit, challenging the
rule as arbitrary and capricious under the Administrative Procedure
Act. On September 23, 2025, the Court held that one section of the
rule, 46 CFR 541.4, ``is arbitrary and capricious because the
Commission failed to explain the seeming inconsistency between its
contractual-privity-based rationale and its categorical bar against
billing motor carriers even when in privity with the billing party.''
World Shipping Council v. Federal Maritime Commission, 152 F.4th 215,
220 (D.C. Cir. 2025). Accordingly, the court severed and set aside 46
CFR 541.4. Consistent with that decision, this rule removes 46 CFR
541.4 from the Code of Federal Regulations. The other provisions of the
rule remain in effect.
The Commission is not required to provide notice and comment or
delay the effective date of this rule. This rule is not subject to the
requirement to provide public comment because it falls under the good
cause exception at 5 U.S.C. 553(b)(B). The good cause exception is
satisfied when notice and comment is ``impracticable, unnecessary, or
contrary to the public interest.'' Notice and comment for this action
would be unnecessary and contrary to the public interest. This rule is
a necessary administrative step following the court's order setting
aside 46 CFR 541.4. Per the court's decision, section 541.4 has no
legal effect. Public comment would not have any impact on the action.
For those same reasons, and because this rule implements a court order
already in effect, the Commission has good cause to waive the 30-day
effective date under 5 U.S.C. 553(d)(3). Delaying the ministerial act
of removing the regulatory text in the Federal Register is contrary to
the public interest because it could lead to confusion, particularly
among the regulated public.
List of Subjects in 46 CFR Part 541
Common carriers, Demurrage and detention, Exports, Imports, Marine
terminal operators.
For the reasons set forth in the preamble, the Commission amends 46
CFR part 541 as follows:
PART 541--DEMURRAGE AND DETENTION
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1. The authority citation for part 541 continues to read as follows:
Authority: 5 U.S.C. 553; 46 U.S.C. 40101, 40102, 40307, 40501-
40503, 41101-41106, 40901-40904, and 46105; and 46 CFR 515.23.
Sec. 541.4 [Removed and Reserved]
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2. Remove and reserve Sec. 541.4.
By the Commission.
David Eng,
Secretary.
[FR Doc. 2025-23920 Filed 12-23-25; 8:45 am]
BILLING CODE 6730-02-P
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</html>Indexed from Federal Register on December 29, 2025.
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