Demurrage and Detention Dispute Resolution Process

Penske Logistics LLC - OTI License Number: 026184N


The Ocean Shipping Reform Act of 2022 (OSRA 22) signed into law on June 16, 2022, put in place new requirements for dispute resolution on demurrage and detention charges assessed by common carriers (VOCCs & NVOCCs) and marine terminal operators (MTOs). The Federal Maritime Commission issued its final rule on Demurrage & Detention Billing Practices with effective date of May 28, 2024.

New Definitions

Billed party means the person receiving the demurrage or detention invoice and who is responsible for payment of any incurred demurrage or detention charge.

Billing party means the VOCC, NVOCC, or MTO who issues a demurrage or detention invoice. While in most cases, the billing party will be a VOCC, this term is defined broadly to incorporate the occasions when an MTO or an NVOCC may issue a demurrage or detention invoice.

Consignee means the ultimate recipient of the cargo; the person to whom final delivery of the cargo is to be made.

Dispute Process

Billed party has the right to dispute demurrage or detention charges within thirty (30) calendar days of the invoice issuance date by contacting Penske Logistics LLC by email: . The billed party must provide the Penske Logistics LLC invoice number being disputed together with the container number, master bill of lading number and /or house bill of lading number. A summary explaining why the invoice is being disputed must be included in the email.

Penske Logistics LLC then has thirty (30) calendar days from the date such request is received to review and request additional information. Such time frame may be extended by mutual agreement of billed and billing parties. Penske Logistics LLC will resolve such request either (1) within thirty (30) days of receipt of the request from the billed party or (2) until the date mutually agreed upon by the billed and billing parties.

Penske Logistics LLC, acting as a non-vessel-operating common carrier (NVOCC) can be both a billing and billed party in relation to the same charge, for example, passing through a charge billed Penske Logistics LLC by a steamship line. When Penske Logistics LLC is acting in both roles and Penske Logistics LLC’s billed party disputes charges assessed by a third-party Penske Logistics LLC will dispute charges on behalf of its billed party with the party that billed Penske Logistics LLC for the charge. Penske Logistics LLC accepts no responsibility for decisions made by any third party, or a third party’s failure to timely respond, but will provide Penske Logistics LLC’ billed party with the response from the third party promptly upon receipt by Penske Logistics LLC.