The Federal Maritime Commission (FMC) issued a Final Rule in FMC Docket No. 21-03 amending its regulations governing Carrier Automated Tariffs. The amendments, which go into effect February 1, 2024, update various tariff regulations for clarity and to reflect current industry practices.

The most significant change is a new paragraph that authorizes non-vessel-operating common carriers (NVOCCs) to pass-through surcharges, assessorial charges, and general rate increases received from ocean common carriers without specifying the amounts of such charges in the NVOCC’s tariff, provided the names of such charges are clearly listed in the NVOCC’s tariff. NVOCCs may not mark up the charges above cost.

Additionally, the revised regulations now recognize full-container load (FCL) shipments as eligible for NVOCC co-loading. This updates the regulations to reflect industry practices. Previously FMC’s regulations limited co-loading to less-than-container load (LCL) shipments. Shipper-to-carrier co-loading between NVOCCs is now permitted for FCL and LCL shipments.

The proposed final rule also includes various miscellaneous updates and clarifications to the regulations. For example, the revised regulations clearly state that failure of an NVOCC to maintain an FMC tariff will result in FMC license revocation or FMC registration suspension.

The FMC also removed the option for ocean common carriers to charge a fee to access their FMC tariffs. Public access to FMC tariffs is already required under FMC’s tariff regulations.

The FMC initially proposed these regulation revisions in April 2021. The regulations have gone through two rounds of comments and revisions since then. The revised regulations will go into effect February 1, 2024. For more information, view the complete Final Rule at www.federalregister.gov.

Federal Maritime Commission (FMC) Chairman Daniel Maffei announced the hiring of David Eng to serve as Secretary of the Commission.

Eng is a career government attorney who possesses more than 10 years of legal and management experience. He most recently worked as a Branch Chief at the Departmental Appeals Board of the U.S. Department of Health and Human Services.

The Office of the Secretary is the gateway for all matters and documents submitted to and emanating from the FMC. It also manages the Commission’s agenda, votes, and meetings.

Eng earned a Juris Doctorate from the Washington University School of Law, St. Louis, Missouri, and he is admitted to the New York Bar. He earned his Bachelor of Arts degree from Amherst College.

The U.S. Federal Maritime Commission (FMC) received two new formal complaints in December 2023 alleging violations of the U.S. Shipping Act and FMC regulations. The FMC also received several Special Permission Applications (SPAs) from ocean carriers seeking to implement emergency Red Sea surcharges.

Unreasonable Cargo Practices & Various Shipping Act Violations – FMC Docket No. 23-13:  USL Auto Exporting Inc., a North Carolina-based auto exporter, filed a formal complaint against Easy Shipping Corporation, an Illinois-based non-vessel-operating common carrier (NVOCC). USL alleges that Easy Shipping violated the U.S. Shipping Act by failing to establish, observe, and enforce just and reasonable regulations and practices relating to the receiving, handling, storing, and delivering of property.

Specifically, USL alleges that it engaged Easy Shipping to ship used vehicles from Savannah, Georgia to Al Khums, Libya in April 2023. Easy Shipping allegedly failed to properly declare the shipment and thus it was returned to the US. Subsequently, Easy Shipping failed to declare the cargo as a return shipment. Consequently, the cargo was assessed additional charges including, customs and demurrage. USL alleges that it suffered at least $52,710 in damages due to Easy Shipping’s failures.

USL requests the Commission order Easy Shipping to cease and desists from the unlawful conduct and to pay USL damages, including lost revenue.

Failure to Pay Freight Forwarding Commission – FMC Docket No. 23-14:  D.F. Young, Incorporated, a Pennsylvania-based freight forwarder, filed a formal complaint against Wallenius Wilhelmsen Logistics. Wallenius is a vessel-operating common carrier (VOCC) registered with the FMC as Wallenius Wilhelmsen Ocean AS (FMC No. 019924). D.F. Young alleges that Wallenius failed to pay freight forwarding commissions in accordance with Wallenius’ published FMC tariff.

Specifically, D.F. Young alleges it provides freight forwarding services in connection with automobiles shipped via Wallenius. Despite D.F. Young’s request for freight forwarding commissions, Wallenius refuses to pay any commissions. D.F. Young alleges that past-due commissions total over $110,000.

D.F. Young requests the Commission order Wallenius to pay D.F. Young the commissions with interest along with attorney’s fees and provide any other further relief that the FMC deems appropriate.

Special Permission Applications – Emergency Red Sea Surcharges:  American President Line, (APL), Ocean Network Express (ONE), Maersk, Mediterranean Shipping Company (MSC), Hapag Lloyd, and CMA CGM each filed a Special Permission Application with the FMC in December 2023. The carriers requested permission to implement emergency surcharges in response to recent ship attacks in the Red Sea.

Under FMC’s regulations surcharges that result in increased rates to shippers must be filed in a carrier’s FMC tariff on 30-day notice. The FMC, however, does have the ability to grant permission to allow surcharges to take effect sooner upon receipt of a Special Permission Application showing good cause. Each carrier reported increased costs due to security concerns and emergency vessel re-routing to avoid the Red Sea area. Accordingly, the FMC found good cause was established and allowed the surcharges to go into effect as of the date of filing in the carriers’ FMC tariffs.

Each carrier has implemented different surcharges applicable to varying geographic scopes. The surcharges range from USD 400 to USD 3000 per FEU.

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

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective January 15, 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 15th GRIs will be the second 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.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective February 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 February 1st GRIs will be the third 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.