The U.S. Federal Maritime Commission (FMC) received one new formal complaint in November 2023 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable Cargo Practices & Various Shipping Act Violations – FMC Docket No. 23-12:  Bed Bath & Beyond Inc. (BBB) filed a formal complaint against MSC Mediterranean Shipping Company SA, alleging that MSC violated the U.S. Shipping Act by exploiting price inflation in container shipping during the COVID-19 pandemic and unjustly and unreasonably exploiting customers.

Specifically, BBB alleges that between 2020 and 2022 MSC consistently failed to meet its existing service contract commitments and thereby forced BBB to buy space on the spot market at enormous expense and to pay additional extracontractual surcharges. BBB also alleges MSC charged detention and demurrage fees when BBB was unable to pick up or return containers due to circumstances outside of BBB’s control, such as congestion at ports and shortages of equipment. Lastly, BBB alleges that MSC retaliated by further failing to meet its service contract commitments after BBB raised issues with MSC’s performance.

As a result of MSC’s actions, BBB alleges that it suffered at least $45 million in damages due to additional charges. Calculations illustrating BBB’s alleged profit losses are also included in the complaint. These indicate that BBB may attempt to claim lost profits potentially totaling over $100 million.

BBB requests the Commission order MSC to pay BBB reparations for damages and lost profits for the unlawful conduct, including interest, attorneys’ fees, and costs, order MSC to cease and desist from the unlawful conduct, and provide any other further relief that the FMC deems appropriate. BBB also requests the FMC double any reparations awarded due to MSC’s alleged retaliatory conduct.

OOCL and Yang Ming are also facing similar complaints filed by BBB earlier this year. Reparations sought from OOCL and Yang Ming are at least $31.7 million and $7.6 million respectively. BBB also requested awarded reparations be doubled in the Yang Ming complaint due to retaliatory conduct. BBB filed for Chapter 11 bankruptcy on April 23, 2023.

For more details visit FMC’s online reading room. The FMC’s reading room provides access to FMC dockets, related documents, notices, and orders.

In January 2024, the European Union’s Emissions Trading System (EU ETS) will be extended to cover carbon dioxide (CO2) emissions from all large ships of 5000 gross tonnage and above entering EU ports, regardless of the flag they fly. The regulations require carriers to monitor and report their carbon dioxide emissions, using a “cap and trade” system. The EU ETS will not cover methane and nitrous oxide emissions from maritime transport until 2026.

Ocean carriers must purchase and surrender (i.e., use) emission allowances for each tonne of carbon or carbon equivalent emissions as defined in the EU ETS system. Surrender allowances will be based on a portion of emissions during an initial phase-in period as follows:  2025: for 40% of their emissions reported in 2024; 2026: for 70% of their emissions reported in 2025; and 2027 onwards: for 100% of their reported emissions.

Several carriers serving the Transatlantic container trades plan to implement a new surcharge in response to the European Union (EU) Emissions Trading System (ETS) regulations that will cover emissions from maritime transportation. See below tables of EU ETS surcharge amounts posted by carriers in their FMC tariffs for shipments from the USA to Europe and from Europe to the USA.

See below table of EU ETS amounts posted by carriers in their FMC tariffs for shipments from the USA to Europe:

NOTE 1:  APL calls the above surcharge the European Union Emissions Trading System Surcharge (EU ETS Surcharge).

NOTE 2:  CMA CGM calls the above surcharge the European Union Emissions Trading System Surcharge (EU ETS Surcharge).

NOTE 3:  COSCO calls the above surcharge the Carbon Emission Trading System Surcharge (ETS). The surcharge is EUR 27/54 per dry 20ft/40ft, EUR 41/82 per reefer 20ft/40ft, for cargo destined to Austria, Belarus, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Ireland, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Russia, Slovakia, Sweden, Switzerland, and the United Kingdom. The surcharge is EUR 33/66 per dry 20ft/40ft, EUR 50/100 per reefer 20ft/40ft, for cargo destined to Albania, Algeria, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Egypt, Georgia, Greece, Israel, Italy, Libya, Macedonia, Malta, Moldova, Montenegro, Morocco, Portugal, Romania, Serbia, Slovenia, Spain, Tunisia, Turkey, and Ukraine.

NOTE 4:  Evergreen calls the above surcharge the EU Innovation Surcharge (EUIS). The EUIS will be USD 20/40/50 per 20ft/40ft/45ft, and USD 64 per 40’HC reefer container.

NOTE 5:  Hapag Lloyd calls the above surcharge the Emission Allowance Surcharge (EU ETS). The amounts vary based on whether cargo is from North or South Europe to US West Coast or US East Coast.

NOTE 6:  Yang Ming calls the above surcharge the EU Emissions Trading System (ETS).

NOTE 7:  ZIM calls the above surcharge the New Emission Fee (NEF).

See below table of EU ETS amounts posted by carriers in their FMC tariffs for shipments from Europe to the USA:

NOTE 1:  CMA CGM calls the above surcharge the European Union Emissions Trading System Surcharge (EU ETS Surcharge).

 NOTE 2:  COSCO calls the above surcharge the Carbon Emission Trading System Surcharge (ETS). The surcharge is EUR 42/84 per dry 20ft/40ft, EUR 63/126 per reefer 20ft/40ft, for cargo destined to Austria, Belarus, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Ireland, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Russia, Slovakia, Slovenia, Sweden, Switzerland, and the United Kingdom. The surcharge is EUR 46/92 per dry 20ft/40ft, EUR 69/138 per reefer 20ft/40ft, for cargo destined to Albania, Algeria, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Egypt, Georgia, Greece, Israel, Italy, Libya, Macedonia, Malta, Moldova, Montenegro, Morocco, Portugal, Romania, Serbia, Slovenia, Spain, Tunisia, Turkey, and Ukraine.

NOTE 3:  Evergreen calls the above surcharge the EU Innovation Surcharge (EUIS). The EUIS will be USD 33/66/83 per 20ft/40ft/45ft, and USD 100 per 40’HC reefer container.

NOTE 4:  Hapag Lloyd calls the above surcharge the Emission Allowance Surcharge (EU ETS). The amounts vary based on whether cargo is from North or South Europe to US West Coast or US East Coast.

NOTE 5:  Yang Ming calls the above surcharge the EU Emissions Trading System (ETS).

NOTE 6:  ZIM calls the above surcharge the New Emission Fee (NEF).

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the January to March 2024 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: CMA CGM calls the above Bunker surcharge the Bunker Adjustment Factor Surcharge (BAF-03), tariff Rule No. 010.4. Low Sulphur Surcharge IMO2020 (LSS20) is not applicable at this time.

NOTE 2:  COSCO calls the above surcharge the Bunker Surcharge (BUC), Tariff Rule No. 010-001.

NOTE 3:  HMM calls the above charge the Bunker Surcharge (BUC) Rule No. 10-2A. It has been in effect in HMM’s FMC tariff since October 1, 2023. HMM also filed in its FMC tariff Rule No. 10-02F, Environmental Compliance Charge (ECC), effective October 1, 2023. The ECC amounts since October 1, 2023 are USD 50/100/100/100 per 20/40/40HC/45ft, respectively, for dry cargo moving via West Coast; and USD 33/65/65/65 per 20/40/40HC/45ft, respectively, for dry cargo moving via East Coast, Gulf.

NOTE 4:  ONE calls the above surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within Tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 5:  OOCL calls the surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate. These Bunker amounts are effective December 1, 2023 thru December 31, 2023.

NOTE 6:  Yang Ming calls the above Bunker surcharge the New Bunker Charge, Tariff Rule No. 10-AH.

NOTE 7:  ZIM calls the above Bunker Charge the New Bunker Factor – Far East (NBF), Tariff Rule No. 010-NB.

NOTE 8:  Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 9:  Updated on a monthly basis.

Each carrier maintains its own tariffs and controls its own pricing.

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective January 1 through March 31, 2024. Here is a table of BAF amounts posted by carriers:

NOTE 1:  CMA CGM calls the above surcharge the Bunker Adjustment Factor Surcharge (BAF03), Tariff Rule No. 010.08. Low Sulphur Surcharge IMO2020 (LSS20) is not applicable at this time.

NOTE 2:  COSCO calls the above surcharge the Bunker Charge (BUC), Tariff Rule No. 010-003.

NOTE 3:  HMM calls the above surcharge the Bunker Charge, Tariff Rule No. 2-63. HMM also filed in its FMC tariff Rule 2-95, Environmental Compliance Charge (ECC), effective January 1, 2024. The ECC amounts are USD 280/312/351/394 per 20/40/40HC/45ft, respectively, for destination USWC/USWC Local/IPI/MLB; and USD 468/520/585/659 per 20/40/40HC/45ft, respectively, for destination USEC (all water)/USGC/RIPI.

NOTE 4:  ONE calls the above surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within Tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 5:  OOCL calls the above surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate. These Bunker amounts are effective December 1, 2023 thru December 31, 2023.

NOTE 6:  ZIM calls the above surcharge the New Bunker Factor – Far East (NBF), Tariff Rule No. 010-NB. Service contract cargoes subject to Carrier’s published BAF and/or EBS shall not be subject to NBF.

NOTE 7:  Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 8:  Updated on a monthly basis.

Each carrier maintains its own tariffs and controls its own pricing.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective December 15, 2023, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and ZIM. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The December 15th GRIs will be the twenty-fourth GRI of 2023 for the East Asia/USA trade lane.

NOTE 1:  CMA CGM GRIs will be USD 1000 per 40ft container for dry cargo, and USD 1125 per 40ft container for reefer cargo. GRI amounts for all other container sizes are as per formula.

NOTE 2:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 3:  Evergreen GRIs will be USD 1000 per 40ft container for dry cargo, and USD 1000 per reefer container. GRI amounts for all other container sizes are as per formula.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective January 1, 2024, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and Zim. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The January 1st GRIs will be the first GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  CMA CGM GRIs will be USD 1000 per 40ft container for dry cargo, and USD 1125 per 40ft container for reefer cargo. GRI amounts for all other container sizes are as per formula.

NOTE 2:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 3:  Evergreen GRIs will be USD 1000 per 40ft container for dry cargo, and USD 1000 per reefer container. GRI amounts for all other container sizes are as per formula.

Each carrier maintains its own tariffs and controls its own pricing.

The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.