The U.S. Federal Maritime Commission (FMC) announced that ocean carriers must file annual export strategies with the Commission beginning March 1, 2025. This new reporting requirement only applies to vessel operating common carriers (VOCCs). These regulations do not apply to non-vessel-operating common carriers (NVOCCs).

According to the regulations, export strategies must include the following:

• a) pricing strategies;
• b) services offered;
• c) strategies for equipment provision;
• d) descriptions of markets served; 
• e) the effect of blank sailings or other schedule disruptions;
• f) rules and practices for sweeper vessels; and
• g) alternative remedies or assistance available to a shipper refused vessel space accommodations.

The strategies must be prospective in nature, providing clear information to the Commission about how ocean carriers will serve the U.S. export market. Ocean carriers may submit multiple filings in a year if circumstances warrant. A duly authorized officer of the ocean carrier must sign the submission. Evidence of the officer’s authority must be included with the report.

The final rule “Definition of Unreasonable Refusal to Deal or Negotiate with Respect to Vessel Space Accommodations Provided by an Ocean Common Carrier”, published in July, establishes the requirement to file a documented export strategy. That rule was mandated by the Ocean Shipping Reform Act of 2022 (PL 117-146).

While the final rule took effect in September 2024, approval for the Commission to collect export strategy reports was required from the Office of the Management and Budget (OMB). OMB finally approved the collection late last year.

The U.S. Federal Maritime Commission (FMC) prevented the Premier Alliance Agreement from taking effect due to concerns of anticompetitive impacts. The FMC determined that more information is needed to determine the potential competitive impacts of the proposed alliance. The global operational alliance of HMM Co., Ltd. (HMM), Ocean Network Express Ptd. Ltd. (ONE), and the Yang Ming Joint Service Agreement (Yang Ming) would have gone into effect on December 12, 2024, but for the Commission’s action.

The agreement, titled the Premier Alliance Agreement (No. 201435), authorizes the three ocean common carriers to share vessels; charter or exchange vessel space; discuss and agree on the size, number, and operational characteristics of vessels operated under the agreement; and engage in other related activities. ONE, HMM, and Yang Ming are also parties to THE Alliance Agreement (No. 012439) that is currently in effect

The Commission determined that the Premier Alliance Agreement lacks sufficient detail to allow for a complete analysis of potential competitive impacts and whether the agreement fully complies with all statutory requirements. Accordingly, the FMC requested additional information from the parties. Re-consideration of the agreement will not commence until the Commission has received a fully compliant response to its inquiry. The Commission has 45 days from when it determines responses are deemed complete to review the agreement for competitive and legal concerns before it becomes effective.

Activities conducted under agreements filed with the Commission are exempt from federal antitrust laws. The Commission is reviewing the agreement to assess whether it is likely, by reducing competition, to cause an unreasonable reduction in transportation service or an unreasonable increase in transportation cost or to substantially lessen competition in purchasing certain services. See 46 U.S.C. § 41307(b).

The U.S. Federal Maritime Commission (FMC) closed one of its two investigations into how Canadian ballast water regulations impact shipping in the Great Lakes. The remaining investigation will continue to permit the Commission to assess if Canadian government policies create unfavorable conditions affecting U.S. flagged vessels operating in the U.S.-Canada trade.

The Commission published Notice in the Federal Register that it is closing its Investigation into Conditions Affecting United States Carriers in Connection with Canadian Ballast Water Regulations in the United States/Canada Great Lakes Trade (Docket No. FMC-2024-0008).

The issue in the investigation that is closing was whether new Canadian regulations governing the use of ballast water treatment systems affected U.S. flagged vessels. The regulations were expected to apply to six U.S. flagged vessels that trade exclusively within the Great Lakes starting this past September. The Canadian regulations will not apply to the remaining more than four dozen U.S. flagged Great Lakes vessel until 2030.

All six vessels in question have now either been exempted by the government of Canada or have been found to not need to come into compliance with the regulation this year. These actions alleviated the need for the Commission to take action.

The change in conditions affecting the six vessels in question does not address the broader differences in how the United States and Canada will regulate ballast water management systems for their respective Great Lakes fleets.

The Commission’s separate Investigation of Regulations Affecting Shipping in Foreign Trade (Docket No. 20-10), initiated in June 2020, remains open. This investigation permits the Commission to examine the treatment of all U.S. flagged Great Lakes fleet vessels, including ongoing review of the six that were already exempted or granted waivers.

The U.S. Federal Maritime Commission (FMC) initiated an investigation into regulations or practices by the Government of Spain. Spain has recently barred certain vessels, including U.S.-flagged vessels, from calling at Spanish ports.

The FMC is charged with ensuring an efficient, competitive, and economical transportation system for the benefit of the United States. The Commission is empowered to investigate regulations or practices of foreign governments if they appear to result in conditions unfavorable to shipping in the foreign trade of the United States. The Commission can levy significant remedies, including substantial daily fines and barring foreign vessels from calling at U.S. ports, if it finds that such conditions are taking place.

Reports indicates that Spain has refused entry to certain vessels on at least three separate occasions this year. The two most recent instances involved U.S.-flagged vessels.

The Commission’s investigation commenced with information gathering through a 20-day public comment period which ended in late December. During this comment period, the FMC requested information about when vessels have been barred or may be barred from calling in Spain, which vessels have been denied entry, and the explanation or justification provided by the Government of Spain for such denials.

In a press release announcing the investigation, the Commission stated, “[l]aws or policies by foreign governments that bar entry to vessels documented under the laws of the United States, or vessels documented under the laws of other countries engaged in trade with the United States, are inconsistent with the Commission’s objective of ensuring access to, and the well-functioning of, the complex and interdependent system that moves goods in foreign commerce by water.”

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective January 15, 2025, 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 15th GRIs will be the second GRI of 2025 for the East Asia/USA trade lane. 

NOTE 1:  CMA CGM GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 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 3000 per 40ft container for dry cargo, and USD 3000 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 February 1, 2025, 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 February 1st GRIs will be the third GRI of 2025 for the East Asia/USA trade lane. 

NOTE 1:  CMA CGM GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 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 3000 per 40ft container for dry cargo, and USD 3000 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.