The Federal Maritime Commission is widening an investigation of ocean carriers to include how they are serving U.S. export shippers.
In July 2021 the FMC launched an audit program and dedicated audit team to assess carrier compliance with the FMC’s May 2020 rule on unjust or unreasonable detention and demurrage fees and practices.
According to an FMC press release, this program is being expanded to examine the export-related conduct of five independent container ship lines that do not traditionally operate in U.S. trade lanes but entered the marketplace in response to historically high rates shippers are paying to import cargo into the U.S. The carriers will be asked to provide specific information about vessel calls they have made to the U.S. since June 2021, including the number of loaded and empty containers carried on their ships’ return journeys to Asia, and the FMC will give particular attention to how the carriers “plan to serve the U.S. export market and how those business models comply with requirements under statute.”
FMC Chairman Dan Maffei said the responses will be assessed to determine if further actions are warranted. “The Commission is committed to an ocean transportation system that serves exporters as well as importers,” he said, “and I will not rule out any action within the bounds of the law that helps us achieve that goal.”
The FMC said these measures add to the efforts it has already taken to aid exporters, which have included assigning an advocate to the Office of Consumer Affairs and Dispute Resolution Services to assist export shippers and directing the Bureau of Enforcement and CADRS to prioritize any cases involving exporters.
Sandler, Travis & Rosenberg is continuing a campaign to advocate with federal regulators and lawmakers on solutions to the supply chain crisis. ST&R also offers services to help companies challenge violative shipping practices at the FMC. For more information on either of these topics, please contact Ned Steiner at (202) 730-4970 or via email.
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