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.
The Federal Maritime Commission has begun a probe to examine how top shipping lines are complying with new restrictions on retaliation, the commission said this week. The FMC’s Vessel-Operating Common Carrier Audit Team has asked the top 20 shipping lines calling the U.S. to provide information on how they are complying with Section 5 of the Ocean Shipping Reform Act, which prohibits carriers, marine terminals or ocean transportation intermediaries from retaliating against shippers by refusing them cargo space. The shipping lines have until mid-January to provide a response, the FMC said.
The Federal Maritime Commission’s proposed demurrage and detention billing requirements (see 2210070079) may lead to “unintended consequences” by only allowing “contracted parties to be charged with demurrage and detention fees,” the National Association of Chemical Distributors said Dec. 13 in comments to the FMC. NACD is “concerned that this requirement would in some cases force parties that are not responsible for the conduct that caused the incurrence of the demurrage and detention fees to be charged and liable for detention and demurrage fees,” NACD Vice President of Regulatory Affairs Jennifer Gibson said. “This would cause additional delays, add more time for demurrage fees to accrue unnecessarily, and increase the potential for disputes.”
A Chinese freight forwarder asked the Federal Maritime Commission to dismiss an October complaint from a U.S. distributor accusing the forwarder of illegally trying to change the terms of a signed service contract and purposefully delaying 20 container shipments in order to submit higher detention and demurrage invoices (see 2210250021).
MSC Mediterranean Shipping Company (USA) Inc. violated the Shipping Act when it failed to meet “minimum” requirements related to its detention and demurrage invoices for container shipments from Russia to Seattle, construction services company Doka said in a recent complaint to the Federal Maritime Commission. Doka said MSC charged it more than $260,000 in detention and demurrage charges for delays that the shipping line had caused, calling its practices “unfair” and “unreasonable.” The FMC should order MSC to pay Doka reparations and force the shipping company to waive the fees, Doka said.
The U.S. should make use of more inland ports to help alleviate congestion along the coasts, port authorities told the Department of Transportation in recent comments. More inland terminals could help containers move more quickly and efficiently, they said, and could help reduce costs by limiting the number of containers forced to sit in marine terminals.