More than 30 trade groups asked the Federal Maritime Commission to extend the public comment deadline as it considers new demurrage and detention billing requirements (see 2202070026 and 2202140002). A March 3 letter to the FMC -- signed by the National Customs Brokers & Forwarders Association of America, the Agriculture Transportation Coalition, the Consumer Technology Association and others -- requests a 30-day extension to the March 17 deadline.
The Federal Maritime Commission is planning to issue an advance notice of proposed rulemaking on container return and "earliest return date" practices by carriers, Commissioner Rebecca Dye told the Senate Commerce Committee. She also said there will be an advance notice of proposed rulemaking on detention and demurrage billing practices.
The Justice Department and the Federal Maritime Commission agreed to more closely cooperate on Shipping Act enforcement, the two agencies announced. DOJ will provide FMC with attorneys and economists from its Antitrust Division to help with enforcement, while FMC will provide the Antitrust Division “support and maritime industry expertise.” The announcement builds on the two agencies’ July memorandum of understanding to foster better cooperation on enforcement and oversight of competition issues in the ocean shipping industry (see 2107120055). “Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping,” Attorney General Merrick Garland said in a statement.
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Federal Maritime Commissioner Carl Bentzel says that audits have already led to investigations at the FMC, but that the agency is underpowered, with about 115 employees and just six investigators. He said there have been billions of dollars worth of detention and demurrage charges, and that the FMC will be issuing a notice of proposed rulemaking to create further guidance about proper detention and demurrage charges.
The Federal Maritime Commission reminded traders this week about the various resources available to shippers seeking to file complaints. The guidance, released by Commissioner Rebecca Dye, explains the differences between a small claims complaint and a formal complaint and links to the FMC’s Filing a Shipping Act Complaint landing page. Dye said she supports “clarifying Commission procedures through a variety of means,” including holding a webinar.
Max Vekich, a former president of the International Longshore and Warehouse Union, was sworn in Feb. 15 as a commissioner on the Federal Maritime Commission. Vekich, who was confirmed by the Senate five days earlier, worked as a longshoreman for more than 40 years and served four terms in the Washington state House of Representatives 1983-1991. “He understands port and supply chain issues from the perspective of a worker on the frontlines of making cargo move,” FMC Chair Daniel Maffei said. “I am confident he will have many important contributions to make to the work of the Federal Maritime Commission and I am happy to welcome him as a colleague.”
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The Federal Maritime Commission is officially seeking feedback on the possibility of new demurrage and detention billing requirements, which could require carriers and terminal operators to include “certain minimum information” with their billings and issue those billings within a certain time frame. The pre-rule, previewed by the commission earlier this month (see 2202070026), is part of a larger FMC effort to address fees and other problems in the international ocean freight delivery system that have been exacerbated by the COVID-19 pandemic (see 2011200024 and 2107290021). Comments on the rule, released Feb. 14, are due March 17.
The National Customs Brokers & Forwarders Association of America is telling Congress that some of the language about Non-Vessel Operating Common Carriers (or NVOCCs) and "Ocean Transport Intermediaries" in the Ocean Shipping Act does not make sense, because these intermediaries do not control cargo placement aboard a vessel, and most of the time, they do not set detention and demurrage charges.