The Federal Maritime Commission voted to release a second report on port congestion, the agency said (here). The report "highlights six major themes discussed – investment and planning; chassis availability and related issues; vessel and terminal operations; port drayage and truck turn-time; extended gate hours, PierPASS and congestion pricing; and collaboration and communication," the FMC said. The FMC will post it to the agency site in the near future, it said. The FMC released a report focused on port congestion and demurrage fees in April (see 1504140014).

Several industry groups reiterated demands to end penalty charges assessed for demurrage delays in a June 10 letter (here) to Federal Maritime Commission Chairman Mario Cordero. The organizations asked the FMC to restrict demurrage, detention, and per diem charges on Beneficial Cargo Owners and their motor carriers "when factors beyond the control of the shipper, receiver or motor carrier" cause the delays, they said. The groups previously voiced the concerns in response to the FMC's report on the issues (see 1504140014), though the FMC has yet to address these concerns (see 1504140014). The FMC has the authority to prohibit demurrage or detention fees applied by common carriers or terminal operators when the circumstances are outside the cargo owners' and motor carriers' control, the industries said (see 1504280010). The FMC didn't return a request for comment.

The Federal Maritime Commission should take a narrow approach in dealing with the issue of demurrage and free time, said the World Shipping Council in a letter to FMC Chairman Mario Cordero (here). The group pushed back against the "sweeping claims that the practice of adhering to established free time limits and assessing detention and demurrage during times of serious port congestion is 'unfair and unproductive.'" Such complaints were submitted by industry groups in a recent letter to the FMC (see 1504280010). There are multiple issues involved with port congestion and "it cannot be blamed on the size of ships or vessel sharing alliances," said the WSC. "Resolution of the problems will require a concerted set of actions involving all parties. Those solutions will need to be tailored to the specific problems in specific locations." There's "no regulatory action that will address the combination of causes of port congestion or that can equitably resolve or simplify the various complex market forces trying to deal with the unavoidable issue of cost recovery," it said.

A decrease in the amount of free time given to shippers to drop off or pick up cargo and an increase in demurrage charges may indicate that ocean carriers are using these mechanisms to drive up profits despite increasing congestion at ports, said the National Customs Brokers & Forwarders Association of America in a letter to the Federal Maritime Commission dated May 5. The trade association requested that the commission conduct a detailed fact finding investigation on free time and demurrage to follow up on issues identified in an agency report released April 13 (see 1504140014).

The Federal Maritime Commission is asking for comments on possible changes to its regulations governing Non-Vessel Operating Common Carrier (NVOCC) Negotiated Rate Arrangements (NRAs), in a notice published in the April 28 Federal Register (here). Requested in a petition filed April 16 by the National Customs Brokers & Forwarders Association of America (here), the changes would expand the NRA exemption for NVOCCs from publishing shipping rates in tariffs to also cover “non-rate economic terms.” Comments are due by June 8.

The International Brotherhood of Teamsters trade union filed on March 10 a court challenge of Federal Motor Carrier Safety Administration’s decision to allow Mexican carriers to conduct long-haul, cross-border trucking services in the United States. A report issued by the agency found that Mexican trucking companies had the same levels of compliance with safety standards as their U.S. and Canadian counterparts (see 1501130018). In a March 10 press release (here), the Teamsters criticized the decision in light of concerns from the Department of Transportation’s Inspector General that FMCSA’s report relied on insufficient data. The trade union is asking the U.S. Court of Appeals for the 9th Circuit to stay and invalidate the FMCSA decision.

The Pipeline and Hazardous Materials Administration on Jan. 23 issued a proposed rule that would amend the Hazardous Materials Regulations (here), in part to “facilitate international commerce,” it said. Changes would include (i) removal of the packing group (PG) II designation for certain organic peroxides, self-reactive substances and explosives; (ii) the incorporation of requirements for trailers of manifolded acetylene cylinders; (iii) new requirements to allow for shipments of damaged wet electric batteries; and (iv) revised requirements for the packaging of nitric acid, testing of pressure relief devices on cargo tanks, and shipments of black or smokeless powder for small arms. Comments are due March 24.

The Federal Motor Carrier Safety Administration will allow Mexican carriers to conduct long-haul, cross-border trucking services in the U.S., ending the threat of retaliatory tariffs authorized by NAFTA arbitrators. The agency’s decision follows a three-year pilot program that allowed Mexican trucking companies to operate north of the border, it said in a Jan. 9 press release (here). Following the end of the pilot in October, FMCSA determined that trucking companies from Mexico had the same levels of compliance with safety standards as their U.S. and Canadian counterparts, it said.

The Pipeline and Hazardous Materials Safety Administration is amending its Hazardous Materials Regulations to align them with recent changes to international standards, in a final rule (here) that requires compliance by Jan. 1, 2016. The final rule includes changes to proper shipping names, hazard classes, packing groups, special provisions, packaging authorizations, air transport quantity limitations, and vessel stowage requirements, said PHMSA. The revisions harmonize the Hazardous Materials Regulations with recent changes made to the International Maritime Dangerous Goods Code, the International Civil Aviation Organization’s Technical Instructions for the Safe Transport of Dangerous Goods by Air, and the United Nations Recommendations on the Transport of Dangerous Goods (UN Model Regulations).

The U.S. and Mexico reached a new air service agreement that will expand access for air cargo carriers, said the Department of Transportation on Nov. 21 (here). The new agreement includes “unlimited market access for U.S. and Mexican air carriers, improved intermodal rights, pricing flexibility, and other important commercial rights,” said DOT. Air cargo carriers will have “expanded opportunities to provide service to new destinations that were not available under the current agreement, and to offer services from the United States to Mexico and beyond Mexico to other countries,” it said. The agreement will take effect Jan. 1, 2016, following internal implementation steps in each country.