The Federal Maritime Commission expects to issue its long-awaited final rule on unreasonable carrier conduct “in the next couple of months,” FMC chair Daniel Maffei said this week. He also said the commission has seen a sharp rise in enforcement cases so far this year, and he and Commissioner Rebecca Dye said they are more closely probing Red Sea-related surcharges being assessed by ocean carriers.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Federal Maritime Commission issued its long-awaited final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.
The Federal Maritime Commission issued its final rule for new demurrage and detention billing requirements, describing the information carriers and marine terminal operators must include in their invoices, clarifying which parties can be billed and under what time frames, outlining the processes for disputing charges, and more.
Maersk violated the Shipping Act by failing to keep its "automated tariff system" open for public inspection, shipper OL USA said in a complaint filed with the Federal Maritime Commission on Feb. 14. The shipper accused Maersk of being "deceptive" and its tariff platform of lacking "functionality," adding that it was "unable to verify Maersk’s representations regarding the substance of its tariffs."
Ocean carrier Evergreen Shipping Line "systematically" failed to meet its service requirements, pressured its customers to pay "extracontractual prices and surcharges" and charged unfair detention and demurrage, Bed Bath & Beyond said in a Feb. 21 complaint with the Federal Maritime Commission. The former big box retailer specifically accused the carrier of failing to meet minimum quantity commitments as part of a contract and said it took space reserved for Bed Bath & Beyond and instead allocated it to "higher-priced cargo from other shippers."
Two Supply Source subsidiaries filed another five complaints at the Federal Maritime Commission Feb. 14 against multiple carriers, accusing them of violating the Shipping Act and charging unfair detention and demurrage from 2021 to 2022, leading to over $2.1 million in financial damages. The companies include COSCO Shipping Lines, Lihua Logistics Company Limited, CMA CGM, Overseas Container Line Limited, and Yang Ming Marine Transport Corp.
Mediterranean Shipping Co. (MSC) violated the Shipping Act by assessing detention and demurrage for periods that were outside the shipper’s control, shippers told the Federal Maritime Commission. The complaint, filed Feb. 14 by Impact Products and Safety Zone, both subsidiaries of Supply Source, alleged that MSC refused to divert shipments to less crowded ports and failed to extend the number of free days afforded when ports were congested from 2021 to 2022, leading to over $200,000 in financial damages.
Visual Comfort & Co. (VCC) filed an amended complaint against COSCO Shipping Lines Co., the Federal Maritime Commission said in a Feb. 14 Federal Register notice. In the complaint, which was filed with the FMC Feb. 6, VCC said that from January 2021 to December 2022, COSCO didn't divert shipments to less crowded ports or extend the number of free days when "circumstances outside VCC's control" affected the shipment, leading to more than $1 million in damages.
For proponents of the Strengthen Wood Product Supply Chains Act, requiring the federal government to tell importers a specific reason the goods were detained and provide information that "may accelerate the disposition of the detention" would increase transparency and save importers money on demurrage fees. For the bipartisan bill's opponents, the bill's planks, including allowing importers to move the wood to a bonded warehouse after the first 15 days of detention, would undermine law enforcement.