While most carriers that participated in the first round of the Federal Maritime Commission’s recent export audit have commendable export strategies, others have room for improvement, FMC official Lucille Marvin said. “I think that there is some work to do," Marvin told commissioners during a May 18 meeting. “The location of the exports, the location of the equipment -- none of this stuff is always in sync with each other. I think this is going to be an ongoing challenge that we have.”
The Federal Maritime Commission should require all ocean carriers and marine terminals to hire dedicated compliance officers, establish a clearer process for returning containers and launch a new investigation into carrier charges assessed through tariffs, Commissioner Rebecca Dye said. Dye, delivering a new set of recommendations during a May 18 FMC meeting, also said the commission should create a carrier-focused advisory committee and do more to support U.S. agricultural exports.
The Federal Maritime Commission needs cooperation from the trade and logistics community to engage in meaningful enforcement, FMC Chairman Daniel Maffei said. Speaking last week at the annual National Customs Brokers & Forwarders Association of America conference, Maffei said that he has been frustrated that "a lot of people expect the FMC to intervene on the side of small shippers" and don't understand the limits of the commission's authority.
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Hapag-Lloyd was ordered to pay $822,220 by a U.S. administrative law judge after a Federal Maritime Commission investigation determined the carrier imposed unfair detention fees, according to an April 22 decision. Hapag-Lloyd “acted unreasonably” by charging detention fees on a drayage provider that was unable to make appointments to return empty containers, the FMC’s Bureau of Enforcement said, and continued to impose the charges after they were disputed alongside “corroborating evidence.”
The House’s ocean shipping bill contains some “troubling” export provisions and could place unfair burdens on carriers to meet exporter needs, said John Butler, a carrier industry official. But exporters view the provisions differently and think they could ensure carriers are treating both import and export shipments equitably, said Karyn Booth, a transportation lawyer.
Exporters told the Federal Maritime Commission that detention and demurrage invoices need to include the earliest return dates containers will be allowed at the terminal, and that "clock-stopping events," such as a lack of appointments to bring a container to the terminal, should also be on the invoices. However, the World Shipping Council said that while the earliest return date is something shippers need to know, they need to know it before a carrier invoice.
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The Ocean Shipping Reform Act, which aims to end unreasonable detention and demurrage and make ocean carriers accept more exports, passed the Senate by a voice vote on March 31.
The Federal Maritime Commission has so far received mixed feedback on the possibility of new demurrage and detention billing requirements (see 2202070026), with shippers saying the rules are sorely needed and at least one carrier saying the industry shouldn’t face additional regulations.