South Korea-based SM Line Corp. failed to properly perform its transportation obligations to inland destinations, leading to unfair detention and demurrage charges, Samsung Electronics America said in an April 19 complaint filed with the Federal Maritime Commission. Samsung accused the global shipping company of "unjust and unreasonable" practices in handling property, providing invoices without "adequate information" and imposing unreasonable charges in violation of U.S. shipping regulations. Samsung asked the FMC to require SM Line to pay Samsung reparations for the "unlawful conduct" and order it to stop the conduct. Samsung also requested an oral hearing.
The Federal Maritime Commission this week posted an instructional video on how to file a charge complaint. Charge complaints were established by the Ocean Shipping Reform Act of 2022 (see 2207140045). The video includes information about "the types of charges that can be contested, the materials needed to file a complaint, how investigations are conducted, and potential outcomes," according to an FMC press release.
The Federal Maritime Commission is giving more discretion to its Bureau of Enforcement, Investigations and Compliance (BEIC) by allowing it to issue notices of violations and to compromise civil penalty claims without first obtaining FMC approval. The changes, outlined in a final rule effective May 17, will "provide enhanced efficiency and flexibility during the enforcement process while maintaining Commission oversight," FMC said.
The Federal Maritime Commission released a list of Ocean Transportation Intermediary license applications recently filed with the FMC. The applications, from 11 companies, include "license reissuance" applications, name change requests and more.
MVM Logistics and MSC Mediterranean Shipping Co. (USA) Inc. submitted a Stipulation of Dismissal of a complaint, agreeing to continue settlement negotiations without the Federal Maritime Commission, the agency announced March 31. MVM in an October complaint accused MSC of charging $800,000 in unfair fees and failing to "establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property" (see 2210260029). MSC denied those allegations, saying the allegations were "so vague and ambiguous as to make it impractical" (see 2211220017). The FMC said it will discontinue the proceedings without prejudice.
Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D., unveiled new legislation this week that they said will build on last year’s Ocean Shipping Reform Act (see 2303240068) by further expanding the Federal Maritime Commission's authority and “crack down” on China’s “attempts to influence America’s supply chain.” The Ocean Shipping Reform Implementation Act, introduced March 29, would block U.S. ports from using Chinese state-sponsored logistics software, allow the FMC to investigate foreign shipping exchanges to “preempt improper business practices," authorize the commission to “streamline data standards” to aid maritime freight logistics and more.
The two lawmakers who spearheaded last year's House ocean shipping reform bill plan to introduce new legislation this week that could further expand the Federal Maritime Commission’s authority. Rep. Dusty Johnson, R-S.D., said he and Rep. John Garamendi, D-Calif., plan to introduce the “Ocean Shipping Reform Act 2.0,” which could “undo some of the damage the Senate did” to revise OSRA before it passed both chambers in June.
The Federal Maritime Commission is "actively seeking information" to confirm whether ocean carriers and marine terminal operators are complying with a recent ruling about per diem detention charges, the FMC said March 23.
The Federal Maritime Commission is updating its current user fees. The changes are meant to reflect changes in salaries for employees of fee-generating services. Some fees will increase due to the increase in salaries for employees of those agencies, while for one service the rule lowers fees as "less-senior employees" are assigned to the "fee-generating activity," according to the memo. Comments on the new rule are due April 20. The rule will take effect June 5 if no comments are received.
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.