RANCHO MIRAGE, Calif. – The Federal Maritime Commission must eliminate the "perverse incentive" for ocean carriers and marine terminal operators to allow congestion as a way to make more money, FMC Chair Dan Maffei said, speaking Oct. 27 at the Pacific Coast Council's Western Cargo Conference, or Wesccon.
The Federal Maritime Commission last week dismissed a charge complaint against Mediterranean Shipping Company lodged by SOFi Paper Products after MSC refunded SOFi for a congestion surcharge that allegedly violated U.S. shipping regulations. The FMC also determined no violations "of the Shipping Act were proven in this proceeding."
Federal Maritime Commission staff have "nearly" completed the drafting process for the commission's upcoming final rule on detention and demurrage, and are "reviewing several late filed subsequent comments that have come in within the past month," FMC General Counsel Chris Hughey said at a Sept. 21 FMC meeting.
Taiwan-based carrier Yang Ming Marine Transport Corp. violated the Shipping Act by not providing agreed upon space, charging "extracontractual prices and surcharges” and charging unfair detention and demurrage fees, Bed Bath & Beyond said in a recent complaint to the Federal Maritime Commission. Bed Bath & Beyond is seeking reparations for the "injuries" caused by Yang Ming, telling the FMC that it may have been subject to more than $700,000 in unfair charges.
Federal Maritime Commissioner Carl Bentzel expects the government to eventually scrutinize certain rail storage fees imposed by ocean carriers on through bills of lading, he said during an industry conference this week. He also said the FMC is “very close” to finalizing its rule on detention and demurrage billing requirements and wants to better address issues involving service contract disputes between carriers and shippers.
Rep. John Garamendi, D-Calif., is drafting legislation that could lead to new oversight over certain rail storage charges assessed by ocean common carriers against shippers on through bills of lading. The bill, which hasn't been completed, could require the Federal Maritime Commission and the Surface Transportation Board to “get together” and decide who should regulate those charges, a Garamendi staffer told us.
Connecticut-based electronics manufacturer Hubbell Inc. accused freight forwarder DSV of violating U.S. shipping regulations by failing to provide the required service under a negotiated contract, Hubbell said in an Aug. 28 complaint to the Federal Maritime Commission. The manufacturer also accused DSV, headquartered in Denmark, of assessing $900,000 in overbilled or “improper” charges.
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The Federal Maritime Commission this week named Cindy Hennigan deputy managing director, a role in which she will help oversee the FMC’s “administrative functions” and advise the commission’s managing director. Hennigan previously was director of the FMC Bureau of Certification and Licensing.
The Federal Maritime Commission is investigating the Mediterranean Shipping Company for violating U.S. shipping regulations, including by using “overbroad” merchant clauses in its bills of lading, mishandling fees and failing to publish tariff rates. The agency may fine MSC if it determines the carrier violated the Shipping Act.