How to Annotate Invoices for Filing Ocean Carrier Disputes

Filing a dispute for demurrage or detention charges starts with a thorough review of your invoice. Annotating discrepancies is a critical step in building a clear and compelling case. This guidance is directly from our Standard Operating Procedures (SOP) for Filing Demurrage Claims which provides a structured approach to reviewing and annotating invoices to ensure accuracy and compliance.

Step 1: Review the Header Information

The header section of the invoice contains key details that establish its validity and help track the dispute.

Carrier Details:

• Confirm the carrier’s name, address, and contact information.
• Verify that the claims department’s email or phone number is provided.
• Annotation: Mark incorrect or incomplete contact details for follow-up.

Invoice Number and Date:

• Locate the invoice number (e.g., "Invoice #12345") for dispute referencing.
• Ensure the invoice date aligns with the date of the charge.
• Annotation: Highlight discrepancies in dates or missing invoice numbers.

Customer Information:

• Verify your company’s name, address, and contact information.
• Ensure the invoice is addressed to the correct party.
• Annotation: Flag incorrect billing information for correction.

Step 2: Verify Container-Specific Details

The container details must match your shipment records to ensure accurate billing.

Container Number(s):

• Check that all container numbers match your shipping records.
• Confirm the number of containers billed aligns with your BOL or contract.
• Annotation: Highlight missing or incorrect container numbers.

Port of Discharge:

• Verify that the port of discharge matches the shipping route.
• Annotation: Flag inconsistencies with shipment details.

Date Container Was Made Available:

• Ensure the availability date is accurate and supported by terminal records.
• Annotation: Highlight discrepancies or unsupported availability dates.

Step 3: Examine Free Time and Charge Details

Free time and charge details are often a source of billing errors. Scrutinize this section carefully.

Free Time Allocation:

• Identify the start and end dates of free time.
• Confirm the number of free days matches the service contract terms.
• Annotation: Highlight miscalculated free time periods.

Start and End Dates for Charges:

• Verify that charges only apply after free time has expired.
• Ensure dates align with your operational records.
• Annotation: Flag charges applied during free time.

Daily Rate and Rule:

• Confirm the daily rate matches the carrier’s published tariff or negotiated contract.
• Verify the applicable rule for demurrage or detention charges.
• Annotation: Mark discrepancies in rates or unexplained charges.

Total Charges:

• Add up itemized charges and confirm they match the total amount due.
• Annotation: Highlight incorrect calculations or unexplained fees.

Step 4: Analyze Supporting Details

Supporting details validate the charges and justify any adjustments or waivers.

Reference Documents:

• Ensure the invoice references the correct BOL, service contract, or tariff.
• Annotation: Flag missing or mismatched reference numbers.

Notes or Comments Section:

• Look for explanations regarding charges or delays.
• Ensure comments justify the applied fees.
• Annotation: Highlight vague or missing justifications for charges.

Step 5: Review for Regulatory Compliance

Ensure the invoice complies with the Federal Maritime Commission (FMC) rules.

Compliance Statements:

• Verify the invoice includes:
  1. A statement confirming compliance with FMC rules.
  2. A statement confirming the carrier’s performance did not cause the charges.
• Annotation: Highlight missing compliance statements.

Dispute Instructions:

• Check if clear instructions are provided for filing disputes, including contact email and submission deadlines.
• Annotation: Flag missing or unclear dispute instructions.

Step 6: Prepare Annotations for Dispute Submission

Annotations should be clear, concise, and actionable to ensure effective dispute resolution.

• Color Coding: Use colors to distinguish different types of discrepancies (e.g., red for missing information, yellow for discrepancies).
• Numbered Notes: Create a summary list of annotations with references (e.g., “#1: Incorrect container number”).
• Clarity: Ensure annotations are easy to reference in your dispute letter.

Conclusion

By systematically reviewing and annotating your invoice, you can create a clear and detailed dispute submission. This increases the likelihood of a favorable resolution while demonstrating professionalism and thoroughness.

What’s your experience with annotating invoices for disputes? Share your tips in the comments below!