The International Federation of Freight Forwarders Associations issued a “toolkit” for industry to better understand and apply the Federal Maritime Commission’s May rule on detention and demurrage fees (see 2004290037). The toolkit, released last week, summarizes the rule, details its applicability and scope, and analyzes industry objections. The FMC recently announced an investigation into whether ocean carriers are violating regulations on detention and demurrage charges (see 2011200024), after industry said the rule is being ignored (see 2011170041).

The Federal Maritime Commission will begin investigating whether ocean carriers are violating regulations on detention and demurrage fees, container returns and container availability for U.S. exports, the agency said Nov. 20. The investigation, which will be led by FMC Commissioner Rebecca Dye, will look at ocean carriers operating in alliances at the Port of Long Beach, the Port of Los Angeles and the Port of New York and New Jersey to determine if their unfair fees and container practices are “amplifying the negative effect of bottlenecks” at the ports.

Export Compliance Daily is providing readers with the top stories for Nov. 9-13 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.

More than 40 trade groups urged the Federal Maritime Commission to suspend certain detention and demurrage charges they say are being unfairly imposed by ocean carriers and marine terminals, saying the charges violate guidelines issued by the FMC in May (see 2004290037). The groups said their members have paid more than $150 million in “unreasonable” fees at the ports of Los Angeles and Long Beach and the Port of New York and New Jersey due to “massive congestion created by record setting volumes” and a shortage of labor and available chassis.

The Federal Maritime Commission plans to discuss a rise in non-compliance with its May rule (see 2004290037) on detention and demurrage charges after industry complained that the rule is being ignored, Rebecca Dye, an FMC commissioner, said during a Nov. 10 session at the Coalition of New England Companies for Trade virtual conference. She said she will soon make “recommendations” to other commissioners to address the rule and other issues, including problems surrounding container returns.

CMA CGM, American President Lines, APL, and ANL Singapore are asking the Federal Maritime Commission for permission to retroactively apply service contract rates and terms to shipments received on or after Sept. 27 for a period of 60 days (see 2010090022). Their petition also is asking for the ability to retroactively apply tariff rates communicated to its customers but that have not been published because of “major system impacts due to the recent cyber-attack.” The FMC is asking for public comments on this request through Oct. 15.

The Federal Maritime Commission said its May rule on detention and demurrage charges (see 2004290037) is helping to reduce unfair penalties imposed by carriers, but industry said the fees are continuing and the FMC’s guidance is not being followed. The rule “at first seemed to be a great victory,” said Rich Roche, vice president of international transportation at Mohawk Global Logistics, speaking during a virtual conference hosted by the National Customs Brokers & Forwarders Association of America Sept. 14. But Roche, who is also the chair for the NCBFAA’s Non-Vessel Operating Common Carrier Subcommittee, said some carriers increased their demurrage and detention fees the same week the rule was finalized.

The Federal Maritime Commission will adopt a final rule to give industry guidance on how it assesses the “reasonableness” of detention and demurrage charges, the agency said on April 28. The rule has garnered new attention due to charges caused by COVID-19-related shipping delays (see 2003190041) and is meant to give industry clarity on how FMC will consider whether detention and demurrage policies incentivize the movement of cargo or whether they are unjustified. The rule will become effective upon its publication in the Federal Register.

The Federal Maritime Commission will adopt a final rule to give industry guidance on how it assesses the “reasonableness” of detention and demurrage charges, the agency said. The rule, which was proposed in September and has garnered new attention due to charges caused by COVID-19-related shipping delays, is expected to give industry clarity on how FMC will consider whether detention and demurrage policies incentivize the movement of cargo or whether they are unjustified. The rule will become effective upon its publication in the Federal Register.

The Federal Maritime Commission is using newly formed Supply Chain Innovation Teams to look into potential agency actions to reduce supply chain slowdowns related to the COVID-19 pandemic, the FMC said in an April 6 news release. Commissioner Rebecca Dye, who is overseeing the effort, and the teams will “begin work this week to identify what actions can provide immediate relief to the most pressing challenges the American freight delivery system faces from COVID-19 related disruptions,” it said. The information provided by team members about possible FMC actions “will dictate the scope and priorities of the Teams’ work,” it said. Dye said the teams “are committed to minimizing disruptions to the Nation’s cargo delivery system and will be prepared to offer practical solutions about what must be done to promote the competitive advantage of our supply chain networks,” The teams are an offshoot of the FMC's investigation into detention and demurrage fees that resulted in a proposed interpretive rule (see 2003170058).