The National Customs Brokers & Forwarders Association of America is telling Congress that some of the language about Non-Vessel Operating Common Carriers (or NVOCCs) and "Ocean Transport Intermediaries" in the Ocean Shipping Act does not make sense, because these intermediaries do not control cargo placement aboard a vessel, and most of the time, they do not set detention and demurrage charges.
The Federal Maritime Commission plans to request comments on the possibility of new demurrage and detention billing requirements, which would seek to address unfair charges and billing practices faced by shippers. In a pre-rule set to be published "soon," the FMC will request feedback on whether it should require carriers and terminal operators to include “certain minimum information” with their billings and whether they should be issued to shippers within a certain time frame.
Senators introduced a companion version of the House’s Ocean Shipping Reform Act, which would look to hold ocean carriers accountable for declining exports and other unfair shipping practices. The bipartisan bill -- introduced Feb. 3 by Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn. -- would also require carriers to submit quarterly reports on total import and export tonnage per vessel and grant the Federal Maritime Commission new investigative and enforcement authorities. The House passed its version in December (see 2112080075).
The House of Representatives passed the Ocean Shipping Reform Act 364-60, though the text of the bill changed from its introduction in August. The bill prohibits ocean carriers from unreasonably reducing "shipper accessibility to equipment necessary for the loading or unloading of cargo," and tells them they must furnish containers needed and allocate "vessel space accommodations, in consideration of reasonably foreseeable import and export demands." They cannot "unreasonably decline export cargo bookings if such cargo can be loaded safely and timely, as determined by the Commandant of the Coast Guard, and carried on a vessel scheduled for the immediate destination of such cargo."
John Butler, CEO of the World Shipping Council, said ocean carriers are getting mixed messages from the White House, which is encouraging carriers and ports to rev up their leverage on buyers and freight forwarders so that they pick up their cargo promptly, and from Congress. The House of Representatives is expected to vote on an Ocean Shipping Reform Act that would give the Federal Maritime Commission more authority to punish players for unreasonable demurrage charges -- the same fees used as leverage.
A Senate bill would authorize several recommendations recently made by the Federal Maritime Commission to address issues in the international freight delivery system, including unfair detention and demurrage fees. The bill, introduced last week, would also seek to standardize shipping terminology among port users and require the government to produce more statistics on equipment dwell times.
The White House, in a blog post that noted some wins for easing port congestion, said Congress should provide the Federal Maritime Commission with "an updated toolbox to protect exporters, importers, and consumers from unfair practices." It said that the Ocean Shipping Reform Act, a bipartisan bill introduced in the House in August (see 2108100011), "includes good first steps towards the type of longer-term reform to shipping laws that would strengthen America’s global competitiveness."
The Federal Maritime Commission will convene six supply chain innovation teams to find improvements in the container return and delivery process at marine terminals, the FMC said Nov. 17. The announcement, made by Commissioner Rebecca Dye this week, is aimed at “improving conditions” at the ports of Los Angeles and Long Beach in California and at the Port of New York and New Jersey. The teams will be composed of ocean carrier executives and marine terminal operators.
The Federal Maritime Commission is accepting applications to fill a vacant spot on its recently formed National Shipper Advisory Committee, the FMC said in a notice released Nov. 2. The commission “excused” one committee member in September after the person changed jobs, which “altered the balance of the Committee,” the FMC said. The committee must be composed equally of importers and exporters. FMC is accepting applications, due Nov. 17, from an “entity who imports cargo to the United States using ocean common carriers.” The committee membership was announced Sept. 9, and it held its first meeting last month, when members said a new surcharge imposed by two California ports could severely exacerbate unfair detention and demurrage fees (see 2110280031).
Shippers were caught off guard by a new surcharge announced this week by the Los Angeles and Long Beach ports that could exacerbate unfair detention and demurrage fees, members of the Federal Maritime Commission’s Shipper Advisory Committee said. The ports announced a surcharge to ocean carriers for containers that dwell at terminals, a fee that will likely be passed on to shippers, members said during the committee’s inaugural meeting Oct. 27 (see 2109100008 and 2110140001).