The Federal Maritime Commission has issued a final rule that, effective Sept. 23, will amend its regulations to implement a statutory change prohibiting ocean common carriers from unreasonably refusing to accommodate shippers’ attempts to secure overseas transportation for their cargo, whether during negotiations or after a deal is reached. The FMC states that requirements established by this rule apply only to vessel-operating common carriers and containerized cargo.
The rule establishes non-binding and non-exhaustive examples and considerations of unreasonable behavior the FMC may use in evaluating allegations that a carrier violated the law. Claims will be reviewed and decided based on their specific facts and circumstances, and carriers will not be found in violation if they can prove there was a reasonable basis for refusing to negotiate or carry cargo.
The rule also requires carriers to file annually with the FMC a confidential documented export policy containing information on pricing strategies, services offered, strategies for equipment provision, and descriptions of markets served. However, this requirement will be delayed pending approval of a related information collection.
ST&R’s team of former FMC and DOJ litigation personnel, freight forwarders, and former administration and congressional staffers can help shippers understand, comply with, and take advantage of this and other shipping rules. 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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