The Federal Maritime Commission is preparing for increased enforcement this year as it expects to receive more complaints and hire more investigators as part of a $43.7 million congressional funding request -- an uptick from the nearly $35 million it asked for last year.
The Federal Maritime Commission will amend its civil penalty regulations and procedures to align them with changes made by the Ocean Shipping Reform Act of 2022. The final rule, released March 17 and effective April 19, makes changes to the language in the FMC's regulations that allows the commission to be able to "order a refund of charges" in a charge complaint proceeding, it said. The FMC also said that if a refund of charges is ordered in addition to a civil penalty, the civil penalty must be reduced so that freight carriers do not pay more than the "actual injury" caused.
Beginning April 1, Maersk will begin invoicing shippers directly for detention charges instead of charging motor carriers by default, it said in a March 6 client advisory. "This change will support our aim to provide timely and accurate detention invoicing to the correct party," the advisory said.
Major shipping line Mediterranean Shipping Co. asked the Federal Maritime Commission to dismiss an order stemming from a refund owed to SOFi Paper Products. MSC said it refunded SOFi in full and the dispute should be resolved.
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.
A new set of recommendations previewed by a member of the Federal Maritime Commission this week could help carriers, ports, railroads and others better harmonize supply chain data and information sharing. Commissioner Carl Bentzel, speaking during a Feb. 15 Commerce Department advisory committee meeting, said he hopes to know this summer whether the FMC plans to move forward with a formal rulemaking.
Major shipping line Mediterranean Shipping Co. must explain to the Federal Maritime Commission by Feb. 28 why it shouldn’t be required to pay a refund to SOFi Paper Products for allegedly violating U.S. shipping regulations, the FMC said Feb. 3. The FMC said MSC never provided “justification” to SOFi stemming from a $1,000 “congestion surcharge” levied against SOFi in July.
The Federal Maritime Commission should dismiss a complaint alleging U.S.-based Omni Logistics violated shipping regulations when it failed to include required information on demurrage invoices for more than 200 containers (see 2212020027), the company told the FMC this week. The complaint by Thompson Pipe Group Pressure, a U.S. supplier of construction equipment and services, “utterly fails to provide any factual detail” about how Omni violated the regulations violations, Omni said. The company also said FMC lacks jurisdiction over the dispute and the complaint alleges violations of the Ocean Shipping Reform Act despite the alleged violations occurring before OSRA was enacted.
Despite urging from industry, the Federal Maritime Commission won’t issue an emergency order requiring carriers and terminal operators to share new cargo information with shippers. The FMC conducted a “careful review of market conditions” and public comments but “found circumstances currently do not warrant invoking temporary emergency authority, and the commission will not be issuing an emergency order at this time,” Tara Nielsen, counsel for the FMC’s office of managing director, said during a Jan. 25 FMC meeting.
The Federal Maritime Commission will amend its proposed rule on unreasonable carrier conduct (see 2209130040), after industry, lawmakers and at least one federal agency said the rule was too broad, missed congressional intent and didn’t go far enough to address carriers that refuse to carry exports in favor of imports. The commission plans to issue a “supplemental notice of proposed rulemaking” to incorporate changes to the rule, FMC Chair Daniel Maffei said during a Jan. 25 commission meeting, adding that he hopes to publish the updates “as quickly as possible.”