The US Court of Appeals in Washington, DC has ruled that Taiwanese carrier Evergreen Marine improperly charged three days of detention fees to drayage provider TCW over the 2020 Memorial Day weekend, when the Port of Savannah was closed.
TCW had argued that it had no way to return an empty container to the Port of Savannah while the gates were closed for the holiday and that Evergreen should not bill detention for a service that was effectively unavailable. The US Federal Maritime Commission (FMC) first had to decide whether it was a prerequisite for a port to be open in order for detention or demurrage to be levied.
Judge Harry T. Edwards wrote in the ruling that "Evergreen suffered no costs as a result of the delayed equipment return" and held that the carrier's arguments did not stand up against the uncontested facts of the case. The appeals court upheld the FMC's earlier finding in favor of TCW.
The decision sets a key precedent in the long-running debate over when detention and demurrage fees can lawfully be applied at US ports. With OSRA 2022 and the FMC's billing-transparency rules already on the books, the industry is increasingly expected to align equipment-return windows with port calendars and operating hours.
Key Takeaways:
1. The US DC Court of Appeals ruled that Evergreen Marine's detention charges over the 2020 Memorial Day weekend were improper.
2. Drayage provider TCW argued that it could not return an empty container while the Port of Savannah was closed for the holiday.
3. The FMC first had to decide whether a port being open was a prerequisite for charging detention or demurrage.
4. Judge Harry T. Edwards held that Evergreen suffered no costs from the delayed equipment return.
5. The ruling establishes a new precedent for detention and demurrage practice at US ports under OSRA 2022.
