National Shipper Advisory Committee to Federal Maritime Commission (FMC)

Sub-Committee: Demurrage, Detention and Freight Charges

Recommendation

Investigate the ocean carrier practice of charging exporters with demurrage or detention fees for early 

return of cargo, or late delivery of cargo, when the Cargo Receiving Window (Early Return Date (ERD). 

Documentation Cutoff Date, and Physical Cargo Cutoff Date) is changed without reasonable notice for 

cargo that is already in the process of or is actually delivered to pier within the original booking 

confirmation cargo receiving window.

Purpose: Vessel schedule integrity has never been worse since the onset of supply chain disruption 

caused by the Covid-19 pandemic. Terminal congestion and delays has resulted in the constant 

jockeying of vessel berthing and cargo operations schedules resulting in export cargo receipt date 

changes. All too often however, these dates are changed without adequate notice given to the 

exporter. Lack of proper notification from ocean carriers on vessel changes, early return dates, and cut 

dates also affect rail, trucking, and inland terminals.

Ocean carriers are not giving adequate lead time on ERD changes for exporters to alter scheduled 

dispatch and loading times for cargo that may be hundreds of miles inland requiring days of 

preplanning. 

In some cases, ocean carriers are not informing shippers of the change at all, and the changes are 

identified when drayage companies arrive with loaded containers. Changes can also take place after 

part of a shipment already has containers out against it. Additionally, shippers bear unplanned 

additional costs that can include more chassis rental fees, dry run fees, yard storage of drayage company 

yard, additional truck moves to rail ramp or port and other charges because of these last-minute 

changes.

ERD Notification:

It is our recommendation that all ocean carriers are required to provide an early return date on all 

booking confirmations. 

It is also our recommendation that when an ocean carrier changes the ERD, the following must apply: 

• The ERD date applicable for a shipment will be the one in effect at the time the empty container 

has been picked up from the terminal.

• If the ERD date is changed, detention will not apply for any days between the original 

EDR and the revised ERD that the container remains outside the terminal.

• If the ERD date is pushed back, demurrage will not apply for any container in gated into 

the terminal for any days between the original EDR and the revised ERD that the 

container rests inside the terminal.

• If there are multiple containers on the Booking and carrier chooses to split the booking, 

then demurrage will not apply for any container in-gated into the terminal prior to the 

change in ERD, and fees to split the booking will not be assessed by the carrier.
It is also our recommendation that inland terminals and ports honor the original ERD when there is 

activity on a booking (containers pulled). Some USA ports (Norfolk) have already implemented this 

policy. 

ERD Demurrage: On the export side of the business, ocean carriers are constantly updating or changing 

their Early Return Dates (ERD) for faltering vessel schedule integrity. Exporters should not be held liable 

for charges on containers delivered within a previously announced cargo receiving window, that were 

dispatched, loaded, railed, or were otherwise in the process of being returned when the ERD changed. 

While it is understood that vessel planning is complex, there is also a timing issue on the ever-changing 

ERD announcements that should not be applied to all cargo having already been in motion based on the 

best information provided at the time of dispatch. Certainly, the further away the loading point, the 

more leeway that should be granted by the ocean carrier to accept the cargo. Computer generated 

invoicing for these changes is causing a ‘bill first – argue later’ scenario that results in much time and 

effort after the fact to correct. Guidelines are needed for ERD changes that result in charges to the 

exporter.

We recommend that ocean carriers should be required to internally audit all demurrage/detention 

invoices for errors before sending out. They must consider scenario’s where empty containers are pulled 

for export, and then booking is rolled by ocean carriers due to vessel delay. Another scenario is where 

export returns a loaded container within the ERD dates, and carrier rolls their vessel causing demurrage 

at inland rail, container yard, or port of export. These scenarios should not be billed to the exporter of 

record as long as they followed the initial ERD and Cut dates as provided by the ocean carrier or 

terminal. 

For these reasons, we, as the unified National Shipper Advisory Committee, hereby recommend that the 

Federal Maritime Commission codify regulation in concert with the Interpretive Rule that prohibits any 

unreasonable application of charges on containers for Early Return Dates (ERD) changes, documentation 

cut dates, and cargo cut dates while shifting the burden of proof to vessel operators and/or marine 

terminals and strengthening requirements for reasonable and timely dispute resolution.