The U.S. Court of Appeals for the District of Columbia Circuit on July 5 rejected an order by the Federal Maritime Commission that said ocean carrier Evergreen Shipping Agency (America) Corp.'s detention charges collected from trucking company TCW were "unjust and unreasonable." FMC failed to meaningfully respond to Evergreen's arguments, the court said, and the responses the commission did offer were "implausible" (Evergreen Shipping Agency (America) Corp. v. Federal Maritime Commission, D.C. Cir. # 23-1052).
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Shipping, trucking and freight forwarding associations urged the Federal Maritime Commission to reject a request from a group of major ocean carriers seeking to push back the effective date of the FMC’s new demurrage and detention billing requirements (see 2402230049), saying in public comments to the commission that the delay would cause widespread confusion within the shipping industry. But two of those groups said the FMC should at least consider giving the industry more time to adapt to the rules before punishing violators with fines.
The Federal Maritime Commission on July 1 added Hyundai Merchant Marine to its Controlled Carrier List, a list of carriers that are subject to increased FMC regulations because they are directly or indirectly owned by foreign governments. The FMC said Hyundai Merchant Marine, a container transportation company, is controlled by the South Korean government but will be exempt from certain controlled carrier regulations because of a treaty the U.S. and Korea signed in 1957.
The Federal Maritime Commission is looking to revoke a Miami freight forwarder’s ocean transportation intermediary license after its owners illegally exported nearly 600 stolen outboard motors from the U.S., including by providing false shipping documents to CBP. The company, Netcycle Trading, told the FMC it should be allowed to keep the license, but the FMC is asking its administrative law judge to rule against the forwarder after its president submitted “misleading” comments to the commission that downplayed her role in the scheme.
The House Appropriations Committee unveiled an FY 2025 Transportation, Housing and Urban Development Appropriations Act bill June 26 that would provide $43 million for the Federal Maritime Commission, about $5.5 million below the Biden administration’s request but up $3 million from the FY 2024 appropriated level.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The Federal Maritime Commission recently reminded carriers about the requirements they must meet to maintain their status before the commission as a vessel-operating common carrier (VOCC), warning they may face penalties if they fail to meet those requirements. The FMC said carriers publishing automated tariffs as VOCCs must “operate at least one vessel in common carriage in the foreign commerce of the United States to maintain their status.” Companies offering common carriage but that don’t operate at least one vessel are considered non-vessel-operating common carriers, the commission said, and must follow the licensing, registration and financial responsibility requirements for NVOCCs. “Operating as an NVOCC and failing to meet all relevant requirements may result in a civil monetary penalty.”
The Federal Maritime Commission launched an investigation on whether ocean carriers are complying with a recent decision giving motor carriers the right to choose their chassis providers in four U.S. markets. The probe could lead to penalties against carriers, the commission said.
HMM Co. Ltd., formerly known as Hyundai Merchant Marine Co. Ltd., has charged unfair demurrage and detention fees for inland transportation since 2020, Samsung Electronics America (SEA) alleged in a complaint filed with the Federal Maritime Commission on May 30.