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.
South Korea-based SM Line Corp. failed to properly perform its transportation obligations to inland destinations, leading to unfair detention and demurrage charges, Samsung Electronics America said in an April 19 complaint filed with the Federal Maritime Commission. Samsung accused the global shipping company of "unjust and unreasonable" practices in handling property, providing invoices without "adequate information" and imposing unreasonable charges in violation of U.S. shipping regulations. Samsung asked the FMC to require SM Line to pay Samsung reparations for the "unlawful conduct" and order it to stop the conduct. Samsung also requested an oral hearing.
The Federal Maritime Commission is updating its current user fees. The changes are meant to reflect changes in salaries for employees of fee-generating services. Some fees will increase due to the increase in salaries for employees of those agencies, while for one service the rule lowers fees as "less-senior employees" are assigned to the "fee-generating activity," according to the memo. Comments on the new rule are due April 20. The rule will take effect June 5 if no comments are received.
Beginning April 1, Maersk will begin invoicing shippers directly for detention charges instead of charging motor carriers by default, it said in a March 6 client advisory. "This change will support our aim to provide timely and accurate detention invoicing to the correct party," the advisory said.
Major shipping line Mediterranean Shipping Co. asked the Federal Maritime Commission to dismiss an order stemming from a refund owed to SOFi Paper Products. MSC said it refunded SOFi in full and the dispute should be resolved.
The Federal Maritime Commission should approve a proposed settlement with Taiwanese shipping line Wan Hai Lines, the shipping line and the FMC's Bureau of Enforcement, Investigations and Compliance (BEIC) told the commission this week. If the settlement is approved, Wan Hai Lines would be required to pay the FMC $950,000 and issue refunds to parties impacted by its alleged violations of U.S. shipping regulations.
Ocean freight and rail freight likely will be returning to a pre-COVID pandemic normal by the end of 2023, a logistics executive said at a Feb. 23 conference.
The Federal Motor Carrier Safety Administration is issuing a proposed rule to implement in its regulations the financial security requirements for forwarders and property brokers established in 2013 by the Moving Ahead for Progress in the 21st Century Act. The proposal would specify the “assets readily available” required to satisfy the already established $75,000 financial security requirement, and would set rules for when the available financial security must be replenished to avoid suspension of operating authority. The proposed rule also would define “financial failure or insolvency” and bar loan and finance companies from serving as BMC-85 trustees. Comments are due March 6.
Hong Kong-based Sterling Container Line denied allegations by U.S. logistics company SeaFair that it refused to pay for certain shipping services, saying SeaFair at times submitted inaccurate invoices and couldn’t prove they were correct. In a Dec. 26 response to the Federal Maritime Commission, Sterling said the FMC should dismiss SeaFair’s complaint for a range of reasons, including that the commission lacks the authority to award damages for a breach of contract claim.
Shippers mostly supported the Federal Maritime Commission’s proposal for demurrage and detention billing requirements (see 2210070079 and 2203250028), saying in comments this month the new invoice requirements will bring more transparency to the industry. But at least two carriers continued to lobby for revisions to the proposed requirements, saying they could lead to burdensome new rules and wouldn’t result in more efficient container pickups and returns.