Shippers should be aware that federal laws and regulations protect them against certain cargo-related fees that may be associated with a workers’ strike of East and Gulf Coast ports that could begin Oct. 1.
According to news reports, the current contract between workers and dozens of ports that handle about half of U.S. imports and exports is slated to expire at midnight on Sept. 30. Federal authorities are working to mediate an agreement but if no solution is reached the workers could walk off the job, which could result in substantial backlogs of cargo and follow-on effects like delayed shipments and increased costs.
However, the Federal Maritime Commission warned shipping lines and marine terminal operators Sept. 23 that all laws and regulations it administers will remain in effect during any terminal closures related to the potential strike. This includes rules governing tariffs, service contracts, MTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed. In particular, the FMC states, demurrage, detention, and other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.
The FMC states that it will scrutinize charges assessed during terminal closures, investigate reports of any other unlawful conduct of regulated entities, and prosecute violators “to the fullest extent of the law.”
Shippers who believe they may have been subject to unlawful policies or fees have a number of options to report violations to the FMC, including filing a complaint proceeding for adjudication before the FMC’s Office of Administrative Law Judges, submitting a charge complaint requesting a refund or waiver of an erroneous or unlawful charge, requesting informal assistance from the FMC’s Office of Consumer Affairs and Dispute Resolution Services, and reporting alleged violations to the FMC’s Bureau of Enforcement, Investigations, and Compliance.
ST&R’s team of former FMC and DOJ litigation personnel, freight forwarders, and administration and congressional staffers can help shippers understand their rights during a potential strike and take appropriate action to protect them. For more information, please contact Jason Kenner (at (212) 549-0137 or via email), Andy Margolis (at (305) 894-1021 or via email), or Ned Steiner (at (202) 730-4970 or via email.)
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