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.
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The Federal Maritime Commission plans to request comments on the possibility of new demurrage and detention billing requirements, which would seek to address unfair charges and billing practices faced by shippers. In a pre-rule set to be published "soon," the FMC will request feedback on whether it should require carriers and terminal operators to include “certain minimum information” with their billings and whether they should be issued to shippers within a certain time frame.
Senators introduced a companion version of the House’s Ocean Shipping Reform Act, which would look to hold ocean carriers accountable for declining exports and other unfair shipping practices. The bipartisan bill -- introduced Feb. 3 by Sens. John Thune, R-S.D., and Amy Klobuchar, D-Minn. -- would also require carriers to submit quarterly reports on total import and export tonnage per vessel and grant the Federal Maritime Commission new investigative and enforcement authorities. The House passed its version in December (see 2112080075).
The Federal Maritime Commission is seeking additional comments on a petition filed by the Lake Carriers’ Association, which said the Canadian government is imposing “unfavorable” conditions on U.S.-Canada shipping and trade. The FMC initially requested comments after receiving the association’s petition in 2020 but announced a new comment period this week because of recent “developments which impact the Commission’s consideration” of the petition. Comments are due March 7.
The Federal Maritime Commission is adjusting its civil monetary penalties for inflation, the agency said in a notice released Jan. 13. The new amounts include higher maximum penalties for various violations of the Shipping Act and other shipping rules, including “adverse impact on U.S. carriers by foreign shipping practices.” The changes take effect Jan. 15.
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 the title or by clicking on the hyperlinked reference number.