On September 30th, Governor Gavin Newsom signed AB2406 into law, protecting importers from the imposition of unfair fees and trade practices. The bill limits the damages of detention and demurrage fees imposed by international ocean carriers.
Existing law prohibits an intermodal marine equipment provider or intermodal marine terminal operator from imposing per diem, detention, or demurrage charges on an intermodal motor carrier relative to transactions involving cargo shipped by intermodal transport under certain circumstances, including when an intermodal marine terminal decides to divert equipment without 48 hours notice. This law also prohibits an intermodal marine container provider from imposing those charges, extended dwell charges, or commencing or continuing free time, as defined, on a motor carrier, as defined, beneficial cargo owner, or other intermediary relative to transactions involving cargo shipped by intermodal transport under certain circumstances.
This bill specifies that where these provisions are addressed by future federal law or regulation, and the federal law or regulation permits states to exceed the requirements set forth in the federal law or regulation, the more stringent provision shall govern.
The full legislative text can be found here.