Checklist for Filing Demurrage Invoice Disputes with Ocean Carriers

Navigating demurrage invoices can be challenging, but following a structured approach ensures clarity and maximizes your chances of success. This checklist from our Standard Operating Procedures (SOP) for Filing Demurrage Claims outlines actionable steps to review invoices and prepare compelling disputes. Here’s a step-by-step guide to streamline your process.

Reviewing the Invoice

The FMC Final Rule on Demurrage and Detention Billing Requirements mandates that invoices meet specific standards to ensure compliance. Use this checklist to verify all necessary details.

Mandatory Information to Check:

• Date that Container is Made Available: Confirm this matches your records.
• Port of Discharge: Verify alignment with shipment details.
• Container Number(s): Ensure these match your shipment records.
• Earliest Return Date (ERD) for Exported Shipments: Check for accuracy and alignment with shipping instructions.
• Allowed Free Time in Days: Verify the agreed-upon free time period.
• Free Time Start Date and End Date: Confirm these match your operational records.
• Applicable Demurrage or Detention Rule and Daily Rate: Ensure accuracy as per your contract or tariff.
• Total Amount Due: Confirm this aligns with itemized charges.
• Contact Information: Verify the inclusion of email or phone details for dispute inquiries.
• Statement of FMC Compliance: Ensure a statement confirms charges comply with FMC rules.
• Statement of Carrier Performance: Check that the carrier confirms their performance did not contribute to the charges.

Tips for Reviewing:

• Cross-check dates, such as free time start and end, with terminal availability records.
• Look for discrepancies in container status (e.g., whether it was accessible).
• Note any missing mandatory fields—an incomplete invoice may not be enforceable.

Preparing Dispute Documents

Compiling a complete and organized set of supporting documents is critical for presenting a compelling dispute.

Required Documents:

1. Invoice Copy: Annotate discrepancies or missing information.
2. Bill of Lading (BOL): Provide the full document to validate shipment details.
3. Container Interchange Receipts (EIR): Proof of pickup, drop-off, or delays caused by the carrier or terminal.
4. Communication Records: Include emails, letters, and call logs with relevant parties. Highlight prior resolution attempts.
5. Terminal Reports: Include gate-in, gate-out, or availability records.
6. Proof of Free Time Entitlement: Provide contracts, tariffs, or terms proving free time allowances.
7. Delivery Receipts: Evidence of container pickup or delivery.
8. Vessel Schedules and Notices: Proof of delays or berth availability.
9. Photographic Evidence (if applicable): Include visuals showing congestion or damage.

Organizing Your Dispute Submission

Creating a well-structured dispute document enhances clarity and professionalism.

Document Layout and Organization:

1. Title Page: Include the dispute title (e.g., “Dispute for Invoice #12345”) and your company’s contact details.
2. Table of Contents: List each included document for easy reference.
3. Section 1: Statement of Dispute:
   • Summarize invoice errors or inconsistencies.
   • Include a timeline of relevant events.
4. Section 2: Supporting Documents:
   • Attach documents in the order they are referenced.
   • Number each document and provide a brief description.
5. Section 3: Conclusion and Request:
   • Clearly state your desired resolution (e.g., adjustment, cancellation of charges).
   • Provide a deadline for response (typically 30 days, per FMC guidelines).

Notes for Submission:

• Save all documents as a single PDF with clear labeling.
• Use the contact details provided on the invoice for submission.
• Retain copies of all submissions and responses for your records.

Conclusion

By meticulously reviewing invoices, compiling the necessary documentation, and organizing your submission, you can ensure a comprehensive and compelling case. For an example dispute letter, refer to Dispute Letter Template by clicking the button below.

What’s your biggest challenge in filing demurrage invoice disputes? Share your thoughts in the comments below!

For more resources, explore our full Standard Operating Procedures for Filing Demurrage Claims to standardize your claims process and improve resolution outcomes.