The Federal Maritime Commission has jurisdiction on cargo moved inland only under a through bill of lading, and contracts between a vessel-operating common carrier and a motor carrier not based on the through bill of lading would "likely be" outside the scope of commission's new detention and demurrage rule released in February (see 2402230049), the commission said. The FMC, in a correction to that rule set to be published in the May 9 Federal Register, stressed that a vessel-operating common carrier must comply with the new detention and demurrage requirements when issuing an invoice if FMC's jurisdiction applies.
The Mediterranean Shipping Company denied allegations by the Federal Maritime Commission that it knowingly violated U.S. shipping laws, calling a proposed $63.2 million FMC penalty "excessive and unlawful.”
The National Customs Brokers & Forwarders Association of America asked the Federal Maritime Commission questions on the demurrage and detention final rule (see 2402230049). The NCBFAA, in comments dated April 22, said the questions were submitted on behalf of its members and other "industry stakeholders" and raised several questions that were not addressed in the final rule.
The National Customs Brokers & Forwarders Association of America's president told the U.S. trade representative that customs brokers and others in the trade community aren't "pro forced-labor, pro-pollution, pro-unsustainable environmental practices," but that too often, "‘race to the top’ objectives do not take into consideration the ability to actually implement the policies, and the costs associated with the goals."
'Head Scratching' Likely After D&D Rule in Effect; Changed Broker Terms Possible, NCBFAA Lawyer Says
FORT LAUDERDALE -- The effective date for the Federal Maritime Commission's new rule on detention and demurrage may not provide a long enough "runway" for industry to prepare, given that it's a "systemic alteration" of how the industry operates, said Ashley Craig of Venable. He said he suspects there will be a lot of "head scratching" after the rule becomes effective on May 28 (see 2402230049).
Two subsidiaries of a U.S.-based cleaning product supplier voluntarily dismissed their charge complaint against major ocean carrier Mediterranean Shipping Co., telling the Federal Maritime Commission April 10 that the companies have agreed to reach a “resolution of this matter outside of” FMC proceedings. Impact Products and Safety Zone, subsidiaries of Supply Source, accused MSC in February of issuing unfair detention and demurrage and committing other violations of U.S. shipping laws, leading to over $200,000 in financial damages (see 2402140014).
The Federal Maritime Commission's enforcement bureau is asking the agency's administrative law judge to fine major ocean carrier Mediterranean Shipping Company $63.2 million for violating U.S. shipping regulations. MSC used “overbroad” merchant clauses in its bills of lading, billed incorrect rates for certain containers and failed to publish certain container tariff rates, causing "obscurity" and "uncertainty" for shippers, the commission's Bureau of Enforcement, Investigations and Compliance said in an April 3 report.
The Federal Maritime Commission on April 5 warned the ocean transport industry against imposing unreasonable detention and demurrage fees as shippers and carriers adjust their supply chains due to the collapse of the Francis Scott Key Bridge in Baltimore last month (see 2403260047).
Ocean carriers COSCO Shipping Lines and Orient Overseas Container Line Limited violated U.S. shipping regulations when they failed to perform their “inland transportation obligations," charged unfair detention and demurrage fees, and refused to release cargo, Samsung Electronics America said in two separate complaints filed with the Federal Maritime Commission on March 28.
A U.S. protective equipment supplier accused Mediterrenaen Shipping Co., FedEx Trade Networks Transport & Brokerage, and Total Terminals International of assessing unfair detention and demurrage, failing to extend free time and failing to send an invoice for other charges, it said in a complaint to the Federal Maritime Commission.