In light of the “significant supply chain challenges currently facing the freight delivery system,” including port worker strikes, natural disasters, and international conflicts, the Federal Maritime Commission recently warned common carriers and marine terminal operators not to retaliate against a shipper, ocean transportation intermediary, or motor carrier for questioning carrier or MTO invoicing, surcharges, or other practices or for making a complaint and/or providing information to the FMC. Such retaliation “is a serious violation of the law that carries significant penalties,” the FMC said, and the agency “will actively pursue any allegation of retaliatory conduct and will hold offending parties fully accountable.”
The FMC called particular attention to its rule on demurrage and detention billing, which requires common carriers and MTOs, when invoicing for demurrage or detention, to provide invoices that “contain sufficient information to enable the billed party to readily identify a contact to whom they may direct questions or concerns related to the invoice and understand the process to request fee mitigation, refund, or waiver.” The FMC said that invoices that do not contain this information need not be paid and that it will vigorously investigate any allegations of retaliation connected to the right of parties invoiced for demurrage and detention charges to raise questions or concerns with common carriers or MTOs.
ST&R’s team of former FMC and DOJ litigation personnel, freight forwarders, and former administration and congressional staffers can help shippers facing higher costs from carriers. For more information, please contact Andy Margolis at (305) 894-1021 or via email.
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