OSRA 2022 Impact on Container Free Days and LFD Rules

What Is OSRA 2022 and Why It Matters for Demurrage

The Ocean Shipping Reform Act of 2022 (OSRA 2022) is the most significant overhaul of US ocean shipping regulation in over two decades. Signed into law on June 16, 2022, by President Biden, it amended the Shipping Act of 1984 with a specific mandate: stop ocean carriers from weaponizing demurrage and detention charges against American importers and exporters. The OSRA LFD impact reaches every container moving through a US port.

The legislation emerged from documented frustrations during the COVID-era supply chain crisis of 2020-2021, when carriers at the Port of LA, Port of Long Beach, and Port of NY/NJ collected billions in demurrage from shippers who literally could not access their containers due to terminal congestion, chassis shortages, and port closure backlogs. Congressional hearings exposed practices that had long existed but were never more visible: carriers billing for demurrage during periods when pickup was impossible, issuing invoices weeks or months late with no itemization, and stonewalling dispute attempts.

OSRA 2022 addressed these practices through four primary mechanisms: a statutory incentive standard for demurrage, mandatory billing transparency requirements, a formal FMC dispute resolution process, and expanded enforcement authority with higher civil penalties. The Federal Maritime Commission (FMC) was tasked with implementing the statutory mandates through rulemaking — a process that produced the final rule codified at 46 CFR Part 545, effective May 28, 2024.

Timeline: From Enactment to Enforcement

Understanding the regulatory timeline is essential for knowing which rules apply to invoices you receive today versus charges from 2022-2023. The compliance landscape shifted in stages.

For practitioners: invoices received before May 28, 2024 are not subject to the 46 CFR Part 545 billing requirements, though the underlying incentive principle from OSRA's statutory text applied from June 2022 onward. Invoices issued after May 28, 2024 must comply with all Part 545 requirements or face FMC enforcement action.

Before vs. After OSRA 2022: What Changed for Shippers

The practical differences between pre-OSRA and post-OSRA demurrage practices are significant. Here is a direct comparison across the areas that matter most to freight forwarders and importers.

How OSRA Changed When Free Time Starts and Stops

The most operationally significant OSRA LFD impact is on the calculation of when free time actually begins. Before OSRA, carriers had broad latitude to define their own starting events. Post-OSRA, the FMC has moved toward standardizing these triggers — and scrutinizing carriers who apply them in ways that minimize shipper free time.

Under the incentive principle reinforced by OSRA, free time clocks are expected to start when the cargo is actually available for pickup — not when the vessel arrives or when the carrier receives the discharge manifest. For a container under CBP examination at the Port of Savannah, for example, the demurrage clock should not be running while Customs holds the container. The same logic applies to FDA holds on food shipments and USDA inspections on agricultural goods.

The FMC's Interpretive Rule on Demurrage and Detention (issued as part of FMC Order 2020-04 and subsequently reinforced through OSRA) identifies the following as factors relevant to whether demurrage serves a legitimate incentive purpose:

• Whether the cargo was actually available for the shipper or consignee to retrieve
• Whether any government hold, carrier error, or terminal closure prevented pickup
• Whether the carrier communicated the free time expiration date in advance
• Whether the demurrage rate structure escalates in a way that incentivizes action rather than simply maximizing revenue

In practice, this means that a freight forwarder managing imports through the Port of LA or Port of Long Beach — where CBP exams and chassis shortages are endemic — now has explicit legal grounds to challenge demurrage that accrued during documented inaccessibility periods. The key is documentation: you need port records, CBP exam notifications, and terminal status screenshots to support a dispute.

For a comprehensive guide to understanding your LFD across different situations, see our LFD tracking guide for US freight forwarders.

Demurrage Billing Requirements Under 46 CFR Part 545

46 CFR Part 545 is the operational heart of OSRA's demurrage reforms. Every freight forwarder and importer receiving a demurrage invoice after May 28, 2024 should know these requirements — because non-compliant invoices can be disputed on procedural grounds alone, regardless of whether the underlying charges are valid.

Mandatory Invoice Elements (46 CFR §545.5)

A compliant demurrage or detention invoice must include all of the following:

• Container number — each container must be itemized separately; a blanket charge across a shipment is non-compliant
• The bill of lading or booking number associated with the container
• Free time period — the specific start date and end date of the free time window
• Daily demurrage or detention rate — the per-day charge for each tier if tiered pricing applies
• Number of days charged at each rate tier
• Total charges for each container
• The tariff, service contract, or other authority under which the charge is assessed — including the specific tariff item number if applicable
• Contact information for the carrier office handling disputes

If you receive an invoice missing any of these elements, you have grounds to contest payment until the carrier provides a compliant invoice. The 30-day billing window (discussed below) restarts from the date the compliant invoice is issued.

The 30-Day Billing Window (46 CFR §545.4)

Carriers must issue demurrage invoices within 30 calendar days of the date the charge was incurred. For container-level demurrage, this means within 30 days of the LFD expiration — the first day charges begin accruing. Invoices issued after this window are non-collectible under 46 CFR §545.4(b), and the FMC has explicitly stated that carriers may not pursue collection on out-of-window invoices.

This is one of the most powerful protections OSRA created. Before the rule, it was common for carriers to hold demurrage invoices for 60-90 days or longer, then issue a large lump sum that was nearly impossible to dispute because the documentation no longer existed. The 30-day rule eliminates this practice. Any invoice you receive today dated more than 30 days after the first day of demurrage accrual is legally deficient.

Dispute Procedures and Deadlines

46 CFR Part 545 requires carriers to establish and publish a dispute resolution process. Shippers must typically file disputes within 30 days of receiving the invoice (check each carrier's published process, as some carriers use different windows). Carriers must acknowledge receipt of disputes within 10 business days and resolve them within 30 days of the dispute filing date.

If a carrier fails to respond to a properly filed dispute within the required timeframe, the FMC treats this as a potential violation of the billing rules. You can escalate to the FMC Office of Consumer Affairs and Dispute Resolution Services (CADRS) for informal mediation, or file a formal complaint under 46 USC §41301.

Government Hold Protections: CBP, FDA, and USDA Holds

One of the clearest OSRA LFD impact provisions is the protection against demurrage during government-mandated holds. If CBP places a container on hold for intensive examination, FDA flags a shipment for food safety inspection, or USDA requires an agricultural hold, the demurrage clock should stop — or not start at all — during that period.

The FMC has stated that charging demurrage during government examination holds is presumptively inconsistent with the incentive principle, because the shipper has no ability to retrieve the container regardless of economic pressure. This applies at all major US ports: Port of LA, Port of Long Beach, Port of Savannah, Port of NY/NJ, and others.

Practically, securing this protection requires documentation. You need:

• CBP hold notification: The CBP Exam order with the start and end dates of the hold. CBP issues these through ACE (Automated Commercial Environment); your customs broker should have this on file.
• Terminal records: Terminal status showing the container was flagged and not releasable during the hold period. APM Terminals, Fenix Marine, WBCT, LBCT, and other major terminal operators maintain these records.
• FDA or USDA notifications: For food and agricultural shipments, the agency's hold order and release notification.

When disputing demurrage that accrued during a government hold, include this documentation with your dispute submission. Carriers who continue to pursue collection after receiving documented evidence of a government hold are in violation of 46 USC §41102(d) and subject to FMC enforcement.

FMC Enforcement Actions: Real Cases and Penalties

The FMC has not treated OSRA enforcement as theoretical. Since the May 2024 effective date of 46 CFR Part 545, the Commission has pursued enforcement actions and investigations against carriers with non-compliant billing practices. While the FMC typically does not publicize individual enforcement resolutions until final, several notable actions have shaped how carriers approach compliance.

In FMC enforcement proceedings under OSRA authority, the Commission has focused on three recurring violations: invoices issued without required itemization, charges assessed during documented inaccessibility periods, and carriers stonewalling dispute responses. The FMC's Bureau of Enforcement has increased staffing specifically for OSRA-related cases.

The penalty structure under OSRA is materially higher than under the pre-2022 Shipping Act framework. Civil penalties now reach $125,000 per violation for standard violations and $250,000 per violation for knowing and willful violations. For a carrier issuing thousands of non-compliant invoices, the aggregate exposure is substantial — which is why the major lines (Maersk, MSC, CMA CGM, Hapag-Lloyd, ONE, ZIM, Evergreen, COSCO) have all invested in billing system upgrades.

The FMC also operates an informal complaint process through CADRS. As of 2024-2025, CADRS has seen a significant increase in demurrage and detention complaints, with the majority involving invoices issued without required itemization and charges during government holds. The CADRS process typically resolves within 60-90 days and does not require an attorney — a meaningful option for smaller importers and freight forwarders.

For a detailed breakdown of FMC regulatory authority and how it affects free day rules, see FMC Demurrage Rules: What Changed and What It Means for Free Days.

How Carriers Have Adapted Their Policies Post-OSRA

The major ocean carriers have responded to OSRA 2022 and 46 CFR Part 545 with varying degrees of genuine compliance versus surface-level adjustment. Understanding where each carrier stands matters for how you manage LFD and dispute demurrage.

Maersk updated its demurrage and detention tariff in early 2024, aligning the invoice format with 46 CFR §545.5 requirements. Maersk also introduced an online dispute portal (accessible through the Maersk.com customer portal) specifically for demurrage challenges. The portal allows document uploads and provides case tracking with a reference number. Maersk's published D&D tariff, updated January 2026, explicitly references the government hold suspension policy.

MSC revised its billing system to include containerized line-item invoicing. MSC's local offices at major US ports handle dispute intake, though the process is less centralized than Maersk's. MSC's February 2026 tariff circular includes specific language on inaccessibility suspensions and references 46 CFR Part 545 compliance.

CMA CGM implemented an itemized billing update effective April 2024 ahead of the May 28 deadline. CMA CGM has also adjusted its free time start date methodology at congested ports — specifically at the Port of Long Beach and Port of NY/NJ — to align with container availability dates rather than vessel discharge dates. This shift, while carrier-initiated rather than FMC-mandated, reduces premature LFD expirations for shippers.

Hapag-Lloyd rolled out updated invoicing with full 46 CFR §545.5 compliance in May 2024. Hapag-Lloyd's dispute resolution process is email-based through local agency offices. The carrier has also updated its published tariff filing with the FMC to include explicit government hold suspension language consistent with OSRA requirements.

ONE, ZIM, Evergreen, and COSCO have similarly updated their tariffs and billing formats, though smaller importers working with these carriers have reported inconsistent implementation at the local level — particularly for invoices generated through third-party billing systems. If you receive an invoice from any carrier that lacks the required elements under 46 CFR §545.5, dispute it in writing immediately.

Practical Compliance Checklist for Freight Forwarders

The following checklist translates OSRA 2022 and 46 CFR Part 545 into day-to-day operational practices. Implement these systematically, not just when a dispute arises.

Invoice Review (Every Invoice)

• Confirm the invoice was issued within 30 days of the first day of demurrage — check the invoice date against the LFD date in your records
• Verify the invoice lists each container separately with its own container number and charge breakdown
• Confirm the invoice shows the free time start date, free time end date (LFD), daily rate(s), and number of days charged at each rate
• Confirm the tariff or contract authority cited on the invoice matches the terms applicable to that shipment
• Cross-reference the free time start date against the actual discharge date in your vessel tracking records — discrepancies are grounds for dispute

Documentation Practices (Ongoing)

• Maintain a log of all containers under CBP, FDA, or USDA hold with the hold start and end dates — this is your primary evidence for inaccessibility disputes
• Screenshot terminal status pages daily for any container within 48 hours of LFD, preserving evidence of terminal availability status
• Document any terminal appointment system outages, gate closures, or equipment shortages that affected pickup capability — port congestion reports from POLA, POLB, GPA (Savannah), and PANYNJ are publicly available and can corroborate your records
• Keep carrier LFD confirmation records — if you received a confirmed LFD from the carrier portal or via EDI, that confirmation is evidence if the carrier later disputes the free time period

Dispute Process (When Charges Are Contested)

• File disputes in writing (email or carrier portal) within 30 days of receiving the invoice — do not wait
• Reference 46 CFR Part 545 and OSRA 2022 explicitly in your dispute; this signals you understand the regulatory framework
• Attach all supporting documentation: CBP hold records, terminal status screenshots, carrier confirmation of LFD, and any correspondence about inaccessibility
• If the carrier fails to respond within 30 days of your dispute filing, escalate to FMC CADRS — the FMC treats non-response as a potential Part 545 violation
• For charges exceeding $5,000 per shipment, consult a maritime attorney before settling — the legal leverage OSRA created often yields negotiated reductions that exceed legal fees

Contract Negotiation (Proactive)

• Negotiate explicit government hold suspension language into your service contracts — carriers may not be required to include it in contract terms, but most will accept it when asked
• Push for 7-10 free days at high-congestion ports (Port of LA, Port of Long Beach, Port of NY/NJ) rather than the standard 4-5 — high-volume BCOs regularly achieve this
• Request that your service contracts specify that free time begins on the "container available" date, not the "vessel discharge" date — this single clause can save significant demurrage at congested terminals
• Include a dispute resolution escalation process in contract terms that references 46 CFR Part 545 and gives you FMC complaint rights

What's Next: Ongoing FMC Rulemaking

OSRA 2022 mandated the FMC to conduct ongoing review of demurrage and detention practices. The Commission has indicated that additional rulemaking is underway, with several areas under active consideration heading into 2025-2026.

Free time calculation standardization is the most significant pending area. The FMC is examining whether to establish minimum standards for how carriers must count free time — specifically around weekend and holiday exclusions, vessel delay adjustments, and what constitutes the official "available date" for free time commencement. Currently, carriers apply inconsistent rules: Maersk and MSC count calendar days, while some ports and carriers exclude Sundays or holidays. A standardized rule would eliminate the confusion that currently benefits carriers at shippers' expense.

Detention reform is a parallel track. While OSRA 2022 and 46 CFR Part 545 address demurrage (terminal storage) most directly, the FMC is applying similar scrutiny to detention (the per diem charge for carrier equipment held beyond free time). The same incentive principle applies: carriers should not charge detention when the container cannot be returned due to terminal congestion, chassis unavailability, or carrier-controlled gate restrictions.

Tariff filing modernization is also on the FMC's agenda. OSRA directed the FMC to examine whether current tariff filing requirements — which use a legacy system from the pre-internet era — adequately expose demurrage rates and free time terms to the market. More transparent tariff publication would allow shippers to compare carrier D&D practices before booking.

The FMC publishes all active rulemakings, dockets, and enforcement actions at fmc.gov/regulations-statutes/regulations/rulemaking/. Freight forwarders, customs brokers, and import operations managers should monitor the FMC docket directly — or subscribe to FMC press releases — for updates that affect their demurrage exposure.

For importers and freight forwarders managing volume through multiple US ports, the practical answer to the evolving OSRA landscape is systematic LFD tracking. The more precisely you know when free time expires on every container — across Maersk, MSC, CMA CGM, Hapag-Lloyd, ONE, ZIM, Evergreen, and COSCO — the better positioned you are to pick up on time, document inaccessibility when it occurs, and dispute invoices that don't comply with 46 CFR Part 545.

OSRA 2022 gave shippers legal tools they did not previously have. Using those tools effectively requires the operational infrastructure to track LFD accurately, document exceptions in real time, and dispute charges with evidence in hand — not weeks later when the records are gone.