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Freight Regulation & Compliance

FMC §541 Motor Carrier Detention Billing Ruling: What Drayage Companies Must Know Now

The D.C. Circuit vacated §541.4 in Sept 2025, letting ocean carriers bill drayage companies for detention. Here's what protections remain and how to fight bad invoices.

Drayage truck at Port Newark container terminal with ocean carrier detention invoice overlay illustrating FMC §541 billing ruling
Following the D.C. Circuit's September 2025 ruling in World Shipping Council v. FMC, ocean carriers may now bill drayage companies directly for detention and demurrage charges under 46 CFR Part 541.
All the key regulatory facts are confirmed. Let me now check one remaining item: the draft's claim about "§541.8: Your 30-day window to request mitigation" and whether the §541.8 language about the billing party's response is correctly framed. This is confirmed at 42-7/42-8: "The Billing Party must give the Billed Party at least thirty (30) calendar days from the invoice issuance date to request mitigation, refund, or waiver of fees. The Billing Party must attempt to resolve a request for mitigation, refund, or waiver of fees within thirty (30) calendar days after receiving any such challenge." Now I have everything I need. Let me compile my edits: **Verified facts — all confirmed:** - Case citation 152 F.4th 215 ✓, date Sept. 23, 2025 ✓ - Docket FMC-2025-0107, RIN 3072-AD08, Dec. 29, 2025 ✓ (Federal Register citation is 90 FR 60579 — draft doesn't cite this but doesn't need to) - 89 Fed. Reg. 14330 (Feb. 26, 2024), effective May 28, 2024 ✓ - May 9, 2024 Correction, 89 Fed. Reg. 39569-70 ✓ - §541.6: five categories, up to 20 items, certification requirement ✓ - §541.7: 30-day VOCC/MTO deadline; NVOCC 30 days from receipt ✓ - §541.8: 30 days to request mitigation; billing party responds within 30 days ✓ - Maersk Jan. 1, 2026: Newark terminals all tiers Dry/NOR/SOC/Tanks +$20; Operating Reefers +$40 ✓ - Port Newark demurrage 2026: $150–$250/day, exceeds $350/day after first week ✓ - "Six figures for large shipments" ✓ **Issues to fix:** 1. The draft's opening blockquote mentions "46 CFR §541.4" as "the federal rule that blocked it" — correct. 2. The draft says "§541.6: Five categories of required content — identifying, timing, rate, dispute, and **certification** information" — the eCFR confirms five subsections: (a) identifying, (b) timing, (c) rate, (d) dispute, (e) certifications. ✓ The draft's list is accurate. 3. The draft says the certification is "a statement that the billing party's own performance did not cause or contribute to the charge." The actual eCFR text says "The billing party's performance did not cause or contribute to the underlying invoiced charges" ✓ 4. The correction date in "the May 9, 2024 Correction (89 Fed. Reg. 39569-70)" — the Federal Register shows the correction was published May 9 but in 89 Fed. Reg. **39569-70**. However, the search result from Justia shows "89 Fed. Reg. 39569-70" — but this is the Correction document number in the Federal Register. Let me verify: Benesch Law confirms "89 Fed. Reg. 39569-70" ✓ 5. The Maersk fact is **confirmed exactly** as written in the draft. 6. Port Newark demurrage $150–$250 starting, exceeding $350/day after first week — **confirmed** (source 31-1/31-10). 7. Detention free time "typically 3–7 days" — confirmed. 8. "Six figures for large shipments" — confirmed (31-2). **Structural/editorial issues to fix:** - Cut generic logistics filler sentences ("This is the section that matters most right now" type). - Break paragraphs over 4 lines. - Tighten transitions. - Remove throat-clearing. - Confirm all 6 internal links are present with correct hrefs. - Word count: The draft is approximately 3,100–3,200 words — I need to tighten to stay within 3,200. - The opening answer block needs to be 2–4 sentences. Now I'll output the corrected article:
Direct answer: Yes — an ocean carrier can now send your drayage company a detention invoice. The federal rule that blocked it, 46 CFR §541.4, was vacated by the D.C. Circuit on September 23, 2025 in World Shipping Council v. FMC, 152 F.4th 215, and the FMC formally removed it from the Code of Federal Regulations on December 29, 2025. No replacement rule has been finalized as of mid-2026. The remaining provisions of 46 CFR Part 541 — including hard invoice content requirements and a 30-day issuance deadline — are fully in force, and a single deficiency in an invoice eliminates your obligation to pay.

What Just Changed: The September 2025 Ruling in Plain English

World Shipping Council v. FMC, 152 F.4th 215 (D.C. Cir. 2025) — the case in one paragraph

On September 23, 2025, the U.S. Court of Appeals for the D.C. Circuit issued its decision in World Shipping Council v. FMC, No. 24-1088 (D.C. Cir. 2025) — full opinion. The court vacated 46 CFR §541.4 with immediate effect. That provision was the single federal rule preventing ocean carriers from billing motor carriers for detention and demurrage charges.

Why the court called the FMC's motor-carrier ban "arbitrary and capricious"

The FMC's rationale for §541.4 rested on contractual privity: a carrier should only bill parties who had a contractual relationship with it. The court found a glaring inconsistency — consignees with no contractual privity could still be billed, while motor carriers who did have privity could not. The court held 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." That was enough to kill the rule under the arbitrary-and-capricious standard of the Administrative Procedure Act.

What the FMC formally did on December 29, 2025 to remove §541.4 from the CFR

Following the ruling, the FMC published a Federal Register final rule removing §541.4 (Dec. 29, 2025) under Docket FMC-2025-0107, RIN 3072-AD08 (90 FR 60579). The section is now marked reserved in the current CFR. As of mid-2026, the FMC has not finalized a replacement rule, leaving motor carriers in a regulatory gray zone with no bright-line federal protection against receiving D&D invoices directly from ocean carriers.

What §541.4 Used to Do — and Why Drayage Companies Cared

The original two-party billing limit: contracting shipper or consignee only

The FMC's D&D Final Rule was published February 26, 2024 (89 Fed. Reg. 14330) and took effect May 28, 2024 under the Ocean Shipping Reform Act of 2022 (OSRA 2022). It limited demurrage and detention invoices to two parties: the entity that contracted for ocean transportation, or the consignee. Drayage companies were not on that list.

The May 9, 2024 FMC Correction that categorically barred motor carrier billing

A May 9, 2024 Correction (89 Fed. Reg. 39569-70) made the protection explicit: motor carriers could not be billed under any circumstance. No exceptions, no workarounds through intermediary brokers. If you were a trucking company, the invoice could not lawfully be addressed to you.

How the rule shielded drayage operators who had zero control over unloading delays

The policy logic was straightforward. A drayage carrier pulls a container from the terminal, drives it to a consignee's facility, and waits. How long that wait lasts is entirely up to the beneficial cargo owner — the warehouse crew, the receiving dock, the staffing level that day. The carrier controls none of it. Billing the carrier for that delay was considered fundamentally unfair. That protection no longer exists at the federal level.

The Protections That Survived: Your Invoice Checklist Under 46 CFR §§541.5, 541.6, and 541.7

Sections 541.5 through 541.9 of Part 541 were not touched by the court's ruling or the FMC's December 2025 action. They are fully in force and are your primary defense against an invoice that should not be paid.

Definition — Demurrage vs. Detention: Demurrage is the charge that accrues when a container sits inside the marine terminal past the ocean carrier's free-time period. Detention is the charge that accrues when the container has been pulled from the terminal but the carrier has not returned the empty equipment within the allowed free-time window. Both can run simultaneously on the same shipment, and both are governed by 46 CFR Part 541.

§541.5: Failure to include required information eliminates the obligation to pay

The rule states it plainly: failure to comply with invoice content requirements or the 30-day issuance deadline eliminates any obligation of the billed party to pay the applicable charge. You do not negotiate your way out of a deficient invoice. Under §541.5, you simply do not owe it.

§541.6: Five categories of required content — identifying, timing, rate, dispute, and certification information

Under 46 CFR Part 541 — current eCFR text, a compliant demurrage or detention invoice must contain five categories of information covering up to 20 numbered data elements depending on import or export direction. Every invoice must include:

  • Identifying information — including the specific legal basis for why the billed party is the proper party liable for the charge
  • Timing information — the dates on which free time began and ended, and the dates on which the charge was incurred
  • Rate and tariff information — the applicable per-day rate and the tariff or service contract under which it was assessed
  • Dispute contact and process information — how and where to submit a dispute
  • Certification — a statement that the billing party's own performance did not cause or contribute to the underlying invoiced charges

That certification requires the ocean carrier to attest, in writing, that it did not cause the delay. If it cannot make that attestation accurately, the invoice is facially deficient.

§541.7: The 30-day issuance hard deadline — and what it means if the invoice arrives late

A VOCC or MTO must issue a demurrage or detention invoice within 30 calendar days from the date on which the charge was last incurred. An NVOCC must issue within 30 calendar days of the date it received its own invoice. Miss that window and the obligation to pay is eliminated. Check the email timestamp. Check the postmark. The 30-day clock is a statutory precondition to enforceability, not a soft guideline.

§541.8: Your 30-day window to request mitigation, refund, or waiver

Even if an invoice is technically complete and issued on time, you have at least 30 calendar days from the invoice date to submit a written request for mitigation, refund, or waiver under §541.8. Once you file a timely request, the billing party must attempt to resolve it within 30 calendar days unless both sides agree to a longer period. Do not let this window pass without acting.

What the Ruling Does NOT Do: Common Misconceptions

The rest of Part 541 is fully in force — this was not a blanket deregulation

Read the FMC official statement on the World Shipping Council v. FMC decision. The Commission was explicit: only §541.4 was vacated. Sections 541.1 through 541.3 and 541.5 through 541.9 remain fully intact and enforceable, and the FMC has stated that common carriers and marine terminal operators must continue to follow all remaining requirements.

Ocean carriers cannot simply send any bill to anyone without meeting content standards

The ruling did not create a free-for-all. An ocean carrier that invoices a drayage company still must meet every requirement in §541.6, issue within 30 days, and certify its own non-contribution to the delay. A carrier that ignores those requirements is producing an unenforceable document regardless of what it says on the invoice.

The FMC still has enforcement jurisdiction and a complaints process

If an ocean carrier sends invoices that fail the §541.6 content test or fall outside the §541.7 issuance window, you can file a Charge Complaint with the FMC. The Commission's enforcement authority was not affected by the D.C. Circuit's ruling.

Before and After: What Changed for Drayage Carriers

Issue Before September 23, 2025 After September 23, 2025
Who can be billed for D&D Contracting shipper or consignee only Anyone the carrier chooses to invoice, including motor carriers
Federal shield for motor carriers Categorical ban under §541.4 No standing federal rule
Invoice content requirements (§541.6) Fully in force Fully in force — unchanged
30-day issuance deadline (§541.7) Fully in force Fully in force — unchanged
30-day dispute window (§541.8) Fully in force Fully in force — unchanged
FMC enforcement jurisdiction Active Active — unchanged
Replacement rule for §541.4 N/A Expected but not finalized as of mid-2026

Real Exposure in the Port Newark Corridor: What the Dollar Figures Look Like

Understanding Port Newark dwell times and congestion patterns in 2026 matters because the math on a single delayed container compounds fast.

Detention rate tiers at Newark in 2026 — Maersk's January 2026 increase as a benchmark

Maersk raised demurrage and detention tariffs at Newark terminals effective January 1, 2026, adding $20 per day across all tiers for dry, non-operating reefer, SOC, and tank containers — and $40 per day for operating reefers. That increase landed on top of rates already climbing. Demurrage at Port Newark in 2026 typically starts at $150 to $250 per container per day and escalates to more than $350 per day after the first week.

How demurrage and detention can stack on a single shipment

Detention free time is typically three to seven days. After that, per-day detention charges begin accruing. If the container is also past its terminal free time, demurrage stacks simultaneously. On a multi-week hold involving a large shipment, the combined exposure can reach six figures.

Port Newark's post-tariff container backlog has made extended dwell times common even on shipments with no operational problems on the drayage side.

The Port Newark dwell-time and congestion context that makes delays almost inevitable

A drayage driver doing everything right — confirmed appointment, on-time arrival, clean paperwork — can still lose days to terminal congestion, chassis shortages, or a consignee dock that is not ready. None of that is within the carrier's control. And until a new federal rule is finalized, the ocean carrier can attempt to put that cost on your books.

How to Fight an Invoice You Receive: A Step-by-Step Dispute Protocol

Step 1: Check the issuance date — was it issued within 30 days of the last charge?

Pull your terminal availability records and gate timestamps. Identify the last date on which a charge was incurred. Then look at the invoice date. If more than 30 calendar days passed between those two dates, you owe nothing under §541.7. Document this in writing before you respond to the billing party.

Step 2: Audit every required field under §541.6 before paying a cent

Go through the invoice line by line against the five categories in §541.6. Is the liability basis stated — not just your name, but the specific legal reason you are the party being charged? Are the free-time start and end dates present? Is the tariff identified? Are dispute instructions included? Is there a certification that the billing party's performance did not contribute to the charges? A single missing field eliminates your payment obligation under §541.5.

Step 3: File a written mitigation request within your own 30-day window under §541.8

If the invoice is technically complete but the charge is wrong on the merits — free time was miscalculated, the container was held at the terminal due to port congestion, the consignee unloaded within normal turnaround time — submit a written mitigation request under §541.8 within 30 calendar days of the invoice date.

Include every piece of supporting documentation you have: appointment confirmations, gate-in and gate-out timestamps, any port congestion advisories in effect during the period. The billing party then has 30 days to respond.

Step 4: If unresolved, file an FMC Charge Complaint

If the billing party does not respond within its 30-day window, or responds unsatisfactorily, the FMC's formal complaint process is available. The Commission actively monitors D&D billing practices and has enforcement tools. Keep a complete paper trail from the moment the invoice arrives.

The Operational Fix: Why Positioning at an Asset-Backed Cross-Dock Near the Port Shifts the Exposure

How moving a container to a facility like RapidShips resets the detention clock dynamics

The fundamental detention problem for a drayage carrier is this: you pull the container, deliver it to the consignee, and the clock runs while the BCO decides when to unload. You cannot push them. You cannot force the dock open at midnight. You accumulate detention liability for a delay you cannot control.

The alternative is cross-docking at a facility built for rapid container turnaround. Bring the container to a cross-dock, devan it, and return the empty equipment the same day or next day. The window during which you hold the ocean carrier's box shrinks from days to hours. Detention exposure shrinks with it.

Cross-docking versus live-unload at a shipper's dock: where the delay risk lives

A live-unload at a consignee's facility puts you in a queue you do not control. A 24/7 cross-dock with dedicated receiving staff does not have that problem. For shipments that need transloading from ocean containers into domestic trailers, the same logic applies — the international box goes back empty fast, and the freight moves forward in a domestic 53-footer on the consignee's schedule, not yours.

24/7 operations and proximity to Port Newark, Elizabeth, and GCT as a structural advantage

RapidShips operates a 24/7 dock at 25A Cotters Lane, East Brunswick, NJ — minutes from Port Newark, Elizabeth Marine Terminal, and Global Container Terminal. For containers that arrive damaged or non-compliant and need to be devanned before delivery anyway, freight rework for containers that arrive non-compliant is handled here every day. Those containers are prime detention risk candidates — they sit at a consignee's dock while the BCO figures out what to do. Routing them to a purpose-built facility eliminates that exposure.

What Comes Next: FMC's Likely Rulemaking and How to Prepare Now

The FMC's stated authority to address motor-carrier billing in a new rulemaking

The FMC confirmed in its September 2025 statement that the court's ruling does not preclude future rulemaking on who may be invoiced for D&D charges. The D.C. Circuit left the door open as well: it noted the FMC could potentially justify a categorical motor-carrier exclusion with a more reasoned explanation than the one it offered the first time.

What a future rule could look like — contractual-privity-based approach

Legal analysts at Benesch Law and Jones Walker both expect the FMC to return to rulemaking under the OSRA 2022 mandate that compels the Commission to address detention and demurrage billing practices. A future rule built on a true contractual-privity framework — rather than the internally inconsistent hybrid the court struck down — could restore categorical protection for motor carriers without a direct contract with the ocean carrier. That rule does not exist yet.

Contractual and documentation steps carriers and brokers should take before a new rule lands

Until the FMC finalizes a replacement rule, take these steps now:

  1. Document every through-bill-of-lading versus house-bill arrangement on every load. Know exactly what contractual relationship, if any, exists between your company and the ocean carrier.
  2. Ensure your contracts with BCOs include explicit indemnification language covering D&D charges caused by the shipper's or consignee's unloading delays. If the consignee caused the detention, the consignee should be contractually obligated to cover it.
  3. Track free-time clocks on every container from the moment it hits the terminal. Do not rely on the ocean carrier to notify you when free time expires.
  4. Keep a complete documentary record for every load: appointment confirmations, gate timestamps, congestion notices, and any communication with the BCO about unloading delays.
  5. Evaluate cross-dock and transload options for any load going to a receiver with a history of slow unloading.

To discuss the detention exposure on your current freight flows, contact RapidShips 24/7 to discuss your detention exposure.

Frequently Asked Questions

Can an ocean carrier legally send my drayage company a detention invoice right now?

Yes. As of September 23, 2025, the federal rule that categorically blocked ocean carriers from billing motor carriers — 46 CFR §541.4 — was vacated by the D.C. Circuit in World Shipping Council v. FMC, 152 F.4th 215, and the FMC formally removed it from the CFR on December 29, 2025. No replacement rule has been finalized as of mid-2026, so there is no bright-line federal prohibition preventing such a bill from arriving at your door.

Do I have to pay a detention invoice from an ocean carrier if I'm a drayage company?

Not automatically. Under 46 CFR §541.5, if the invoice is missing any of the required minimum information set out in §541.6 — including the legal basis for why you are the liable party — your obligation to pay is eliminated as a matter of regulation. Separately, if the invoice was issued more than 30 calendar days after the last charge was incurred, you owe nothing under §541.7 regardless of content.

What information must a detention invoice contain to be enforceable under federal law?

Under 46 CFR §541.6, a demurrage or detention invoice must include five categories of information — identifying details (including why you are liable), timing data, rate and tariff information, dispute contact and process instructions, and a certification that the billing party's own performance did not cause or contribute to the underlying invoiced charges — comprising up to 20 required fields. A single missing or inaccurate field eliminates the payment obligation under §541.5.

What is the deadline for disputing a detention invoice I believe is wrong?

You have at least 30 calendar days from the invoice date to submit a written request for mitigation, refund, or waiver under 46 CFR §541.8. Once you file a timely request, the billing party must attempt to resolve it within 30 calendar days unless both sides agree to extend. If the issue remains unresolved, you can file a Charge Complaint directly with the FMC.

Is the FMC going to write a new rule to replace §541.4?

The FMC has confirmed it retains authority to address motor-carrier billing in a future rulemaking, and legal analysts at Benesch Law and Jones Walker both expect the Commission to act under its OSRA 2022 mandate. The D.C. Circuit also left open the possibility that the FMC could justify a categorical motor-carrier exclusion with a better-reasoned explanation — but as of mid-2026 no proposed rule has been published.

How does using a cross-dock warehouse near Port Newark reduce my detention exposure as a drayage carrier?

The core detention risk arises when an ocean container sits at a shipper's facility waiting for the beneficial cargo owner to unload — a delay the carrier cannot control but may now be billed for. Devanning the container at a 24/7 asset-backed cross-dock like RapidShips, minutes from Port Newark, Elizabeth, and GCT, transfers the unloading operation to a facility built for fast throughput, shortening the window during which the carrier holds the ocean carrier's equipment and reducing the days on which detention accrues.

Bottom Line

The federal protection that kept detention invoices off your desk is gone. The invoice content rules and the 30-day deadlines that can make those invoices unenforceable are still there. Know them. Use them. And if you are tired of letting the BCO's dock schedule determine your D&D exposure, there is a practical answer that does not require a new federal rule to take effect.

Call RapidShips at 800-376-2808. We run 24/7 at 25A Cotters Lane, East Brunswick, NJ, and we can have your container devanned and your empty back at the terminal before the ocean carrier's free-time clock runs out.

Freight sitting? Call the dock, not a broker.

A dock supervisor answers 24/7 at 25A Cotters Lane, East Brunswick NJ — minutes from Port Newark, Elizabeth and GCT. Describe the load and get a bay, a crew and an arrival window before you finish the drive over.

Call 800-376-2808