Federal Maritime Commission staff have "nearly" completed the drafting process for the commission's upcoming final rule on detention and demurrage, and are "reviewing several late filed subsequent comments that have come in within the past month," FMC General Counsel Chris Hughey said at a Sept. 21 FMC meeting.
Taiwan-based carrier Yang Ming Marine Transport Corp. violated the Shipping Act by not providing agreed upon space, charging "extracontractual prices and surcharges” and charging unfair detention and demurrage fees, Bed Bath & Beyond said in a recent complaint to the Federal Maritime Commission. Bed Bath & Beyond is seeking reparations for the "injuries" caused by Yang Ming, telling the FMC that it may have been subject to more than $700,000 in unfair charges.
Federal Maritime Commissioner Carl Bentzel expects the government to eventually scrutinize certain rail storage fees imposed by ocean carriers on through bills of lading, he said during an industry conference this week. He also said the FMC is “very close” to finalizing its rule on detention and demurrage billing requirements and wants to better address issues involving service contract disputes between carriers and shippers.
Rep. John Garamendi, D-Calif., is drafting legislation that could lead to new oversight over certain rail storage charges assessed by ocean common carriers against shippers on through bills of lading. The bill, which hasn't been completed, could require the Federal Maritime Commission and the Surface Transportation Board to “get together” and decide who should regulate those charges, a Garamendi staffer told us.
Connecticut-based electronics manufacturer Hubbell Inc. accused freight forwarder DSV of violating U.S. shipping regulations by failing to provide the required service under a negotiated contract, Hubbell said in an Aug. 28 complaint to the Federal Maritime Commission. The manufacturer also accused DSV, headquartered in Denmark, of assessing $900,000 in overbilled or “improper” charges.
The Federal Maritime Commission is investigating the Mediterranean Shipping Company for violating U.S. shipping regulations, including by using “overbroad” merchant clauses in its bills of lading, mishandling fees and failing to publish tariff rates. The agency may fine MSC if it determines the carrier violated the Shipping Act.
Rebecca Dye of the Federal Maritime Commission proposed new sets of best practices for ocean carriers and marine terminal operators at the Ports of Los Angeles and Long Beach and the Port of New York and New Jersey, covering activities surrounding container returns, earliest return dates and container pickups.
The Federal Maritime Commission published its spring 2023 regulatory agenda and continued to mention several rules to implement the Ocean Shipping Reform Act of 2022, including a proposed rule to define unfair or unjustly discriminatory methods that violate U.S. shipping regulations. The FMC said it plans to issue that rule in December.
Hapag-Lloyd violated U.S. shipping regulations by failing to establish adequate facilities to return empty containers to the Port of New York and New Jersey and unfairly charging detention and demurrage for containers caught in the "logistical paralysis" of its own making, Rahal International said in a June 30 complaint to the Federal Maritime Commission. Rahal, an Illinois-based importer and distributor of fruit and vegetable juices, said backlogs and delays created by the shipping line damaged some of its juice shipments, leading to hundreds of thousands of dollars in damages.
German container shipper Hamburg Sud must pay nearly $10 million to OJ Commerce, an American e-commerce business, after Hamburg retaliated against OJC for threatening to file a complaint with the Federal Maritime Commission, the FMC’s administrative law judge ruled June 7. The massive fine came after the FMC said Hamburg Sud, owned by major shipping line Maersk, violated the Shipping Act’s anti-retaliation provision and refused to fulfill contract terms.