It's 'About Time' For Rail Scrutiny, FMC Commissioner Says
NEW ORLEANS -- Federal Maritime Commissioner Max Vekich signaled he’s open to a further expansion of FMC authority, including potentially allowing the FMC to scrutinize certain rail storage fees.
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Speaking April 26 during the National Customs Brokers & Forwarders Association of America's annual conference, Vekich said one “private” case before the commission involves alleged unfair detention and demurrage fees assessed by a railroad. “This is a pending case, I can't comment on it now,” Vekich said. “But it's probably about time the railroads got some scrutiny.”
Vekich’s comments came one day after NCBFAA Transportation Committee Vice Chair Rich Roche said the NCBFAA is working with other trade groups on a letter that would ask Congress to allow the commission to exercise jurisdiction over certain rail storage fees (see 2304260046). During the April 26 panel, Roche, an audience member, urged the commission to address rail fees and described what he said are gaps in the charge complaint process, pointing to the fact that complaints can’t be filed against marine terminal operators.
“I wonder if this was an oversight,” he said. “I challenge the commission to continue to keep that” and the rail issue “in mind as you go forward with your rulemakings.”
Vekich, speaking about the rail fees and Roche’s other suggestions, said “I think you need to address that to the White House to tell them to give the FMC more power.” He added, “It seems like we're willing to take it on.”
Vekich also touched on the FMC’s charge complaint process introduced under the Ocean Shipping Reform Act, saying that the agency has received almost 300 complaints. An audience member told the commissioner that two of his clients had recently disputed unfair demurrage and detention fees, and “just the threat of a charge complaint got those resolved.”
"Isn't it amazing [that] the threat is always so much more effective than the actual use?" Vekich said. “Isn't it about time that the table got shifted?”
Industry officials have said charge complaints before the FMC are increasingly trending toward significant settlements or awards (see 2304270055).