The Federal Maritime Commission has launched an investigation into whether ocean common carriers are unjustly and unreasonably restricting motor carriers and shippers in their choice of chassis providers.
The FMC states that it has received information that shipping lines are relying on service contract terms or other means to mandate that truckers and shippers use designated chassis providers. This information appears to indicate that these practices are being applied to cargo transported under merchant haulage arrangements under which the trucker or shipper is responsible for arranging and paying for overland transportation between a port and inland facilities.
According to the FMC, restrictions imposed through carrier association rules, service contracts, or other means that directly or indirectly deprive truckers and shippers of the ability to negotiate and deal with chassis providers, particularly for merchant haulage, violate section 41102(c) of the Shipping Act if they are unjust or unreasonable. Depending on how they are imposed or implemented, such restrictions may also violate Shipping Act provisions and FMC regulations governing carriers’ service contracts with shippers.
As an initial step in its investigation the FMC is inviting input by March 27 from shippers, truckers, other transportation service providers, and the public that identifies (1) any restrictions, practices, or tactics imposed by ocean common carriers on chassis provider selections or negotiations for chassis usage, (2) how such measures are being implemented or imposed, and (3) how such measures are affecting or restricting truckers’ or shippers’ ability to independently select, negotiate, and deal with chassis providers. Specific topics on which comment is sought can be found in the FMC notice.
ST&R’s team of former FMC and DOJ litigation personnel, freight forwarders, and former administration and congressional staffers can help companies facing higher costs and tighter restrictions from carriers. For more information, please contact Andy Margolis at (305) 894-1021 or via email.
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