The Federal Maritime Commission this week released its final rule on unreasonable carrier conduct, the last step in the FMC’s nearly two-year campaign of crafting regulations to address ocean carriers that unfairly refuse vessel or cargo space to shippers.
An administrative law judge on July 18 upheld a March determination by the Federal Maritime Commission that the ocean transportation intermediary (OTI) license of Miami freight forwarder Netcycle Trading should be revoked and that the company should stop its OTI activities.
The Federal Maritime Commission announced this week that it’s adding China-based Anji Shipping Co. to its Controlled Carrier List, a list of carriers subject to increased FMC regulations because they are directly or indirectly owned by foreign governments. The FMC said Anji will be subject to certain controlled carrier regulations, including rate review standards to ensure that it doesn't unfairly use its government-supported position against competitors.
The Federal Maritime Commission is working on a notice of proposed rulemaking that could put in place a permanent process under which shippers and other companies in the cargo logistics industry can file charge complaints with the FMC. The FMC said it hopes to issue the rule in June 2025.
The Federal Maritime Commission will prevent a new vessel-sharing agreement between major ocean carriers Maersk and Hapag-Lloyd from going into effect this week because it needs more information about the potential competitive impact of the arrangement, the agency announced July 12.
President Joe Biden plans to nominate Carl Bentzel and Louis Sola to continue serving on the Federal Maritime Commission, the White House announced July 11. Both have been FMC members since 2019. Commissioners serve five-year terms.
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.