The World Shipping Council (WSC) challenged how the Federal Maritime Commission (FMC) interpreted the “unreasonable refusal to deal or negotiate” rule in 46 U.S.C. § 41104(a)(10). The D.C. Circuit upheld the FMC’s interpretation.
On September 23, 2025, the U.S. Court of Appeals for the District of Columbia Circuit set aside the key provision of the Federal Maritime Commission’s Final Rule on Demurrage and Detention Billing Requirements, 46 C.F.R. § 541.4, which allowed invoices for demurrage and detention to be issued only to contracting shippers and consignees. World Shipping Council v. Fed. Mar. Comm’n, 152 F.4th 215 (D.C. Cir. 2025). Why did the Court find this rule arbitrary and capricious? Who may now be charged for demurrage and detention? These questions are explored in this article.