The Senate Commerce Committee passed the Ocean Shipping Reform Act by a voice vote March 22. The bill would shift the burden of proof on unreasonable detention and demurrage to carriers and forbid them from unreasonably declining export shipments. A recent panel at the Capitol revealed that before the COVID-19 pandemic-related supply chain crunch, 20% of containers went back to Asia empty, and now it's 80% (see 2203180050).
The Federal Maritime Commission is expanding its Vessel-Operating Common Carrier Audit Program to analyze how shipping lines are serving U.S. exporters, the agency said March 21. As part of the audit program, the FMC will ask ocean carriers to share information about the export services they offer and potential opportunities to “increase access to service offerings.”
The Ocean Shipping Reform Act is part of the House China package, and a Senate version is going to have a markup next week. House co-sponsor Dusty Johnson, R-S.D., said the bill's advocates need senators "to be able to punch this into the end zone."
The Federal Maritime Commission this week extended the public comment deadline for its pre-rule on new demurrage and detention billing requirements (see 2202070026 and 2202140002) by 30 days. Comments were originally due March 17, but industry will now have until April 16 to submit feedback. More than 30 trade groups had asked FMC earlier this month to extend the deadline (see 2203070006).
More than 30 trade groups asked the Federal Maritime Commission to extend the public comment deadline as it considers new demurrage and detention billing requirements (see 2202070026 and 2202140002). A March 3 letter to the FMC -- signed by the National Customs Brokers & Forwarders Association of America, the Agriculture Transportation Coalition, the Consumer Technology Association and others -- requests a 30-day extension to the March 17 deadline.
The Federal Maritime Commission is planning to issue an advance notice of proposed rulemaking on container return and "earliest return date" practices by carriers, Commissioner Rebecca Dye told the Senate Commerce Committee. She also said there will be an advance notice of proposed rulemaking on detention and demurrage billing practices.
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Federal Maritime Commissioner Carl Bentzel says that audits have already led to investigations at the FMC, but that the agency is underpowered, with about 115 employees and just six investigators. He said there have been billions of dollars worth of detention and demurrage charges, and that the FMC will be issuing a notice of proposed rulemaking to create further guidance about proper detention and demurrage charges.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
The Federal Maritime Commission is officially seeking feedback on the possibility of new demurrage and detention billing requirements, which could require carriers and terminal operators to include “certain minimum information” with their billings and issue those billings within a certain time frame. The pre-rule, previewed by the commission earlier this month (see 2202070026), is part of a larger FMC effort to address fees and other problems in the international ocean freight delivery system that have been exacerbated by the COVID-19 pandemic (see 2011200024 and 2107290021). Comments on the rule, released Feb. 14, are due March 17.