Trade Groups Voice Support for Added FMC Role in Port Disruptions
The Federal Maritime Commission (FMC) should take a closer look into the "congestion surcharges" planned by ocean carriers if there's a labor contract disruption at the West Coast ports, said a number of industry groups in a letter to the FMC. While the letter voiced appreciation for the agency's recent advisory on the issue (see 14060214), they said the FMC should be able to provide more information to those affected by the surcharges. The groups also voiced their support for a recent National Customs Brokers & Forwarders Association of America letter to the agency that also asked the FMC to step in on port disruption issues (see 14060613).
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The FMC has "an obligation to seek more information from carriers so that shippers, importers, exporters and others have a clear understanding how the 'congestion charges' will be determined and put into place," said the group, which includes the American Apparel and Footwear Association, U.S. Fashion Industry Association and Express Association of America. "There is still a lot of uncertainty within the industry as to how and when such surcharges are triggered and put into effect. Potentially affected shippers do not know the specific trigger mechanism that carriers will use to determine the assessment of a surcharge or the rights beneficial cargo owners have to negotiate the level of surcharges. Carrier announcements to date have been ambiguous."