The U.S. Federal Maritime Commission (FMC) received one new formal complaint in June 2024 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable Cargo Practices and Unlawful D&D – FMC Docket No. 24-23:  Samsung Electronics America, Inc. filed a formal complaint against Hyundai Merchant Marine Co., Ltd. alleging various violations of the U.S. Shipping Act.

Specifically, Samsung alleges that starting in 2020 HMM regularly failed to perform its obligations for inland transportation for store door moves. These failures resulted in excessive demurrage and detention charges. HMM allegedly forced Samsung to pay these charges even though HMM was responsible for the inland delivery. Samsung’s claims HMM held their containers hostage and threatened to withhold further services. Additionally, Samsung alleges that HMM issued inaccurate and incomplete detention and demurrage invoices.

As a result of HMM’s actions, Samsung alleges they were forced to pay excessive and unlawful charges and to perform HMM’s inland transportation responsibilities. Samsung does not provide a monetary value of the alleged unlawful charges. Instead, Samsung alleges they were invoiced in excess of 18,000 individual demurrage charges and over 78,000 individual detention-type charges.

Samsung requests the Commission to order HMM to pay reparations for their unlawful conduct, pay any other amounts the FMC deems appropriate, cease and desists from the unlawful conduct, and to provide any other relief the Commission deems proper.

This is the fifth formal complaint Samsung has filed in the last two years. Samsung is currently pursuing FMC complaints against COSCO Shipping Lines Co., Orient Overseas Container Line Limited and OOCL (Europe) Limited, SM Line Corporation, and ZIM Integrated Shipping Service Ltd.

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.

The U.S. Federal Maritime Commission (FMC) launched an updated version of its website at www.fmc.gov. The new layout improves ease of navigation and information accessibility.

One highlight of the new website is the “Complaints and Assistance” section. On this page the public can find up-to-date information about where and how to communicate with the Commission, submit a complaint, or seek FMC assistance. See below table for details.

All the existing functions of the previous website have migrated to the new platform. To report any technical issues, write to Inquiries@FMC.gov.

The U.S. Federal Maritime Commission (FMC) issued an Industry Advisory to alert common carriers publishing FMC tariffs as vessel-operating common carriers (VOCCs) that they must operate at least one vessel to maintain their status as VOCCs.

Organizations offering common carriage that do not operate at least one vessel in the foreign commerce of the United States are considered non-vessel-operating common carriers (NVOCCs). Licensing, registration, and financial responsibility requirements for NVOCCs are set forth in 46 C.F.R. Part 515. NVOCC requirements are different from the requirements VOCCs must meet. Operating as an NVOCC and failing to meet all relevant FMC requirements may result in a civil monetary penalty.

For questions regarding VOCC status, write to the FMC’s Bureau of Trade Analysis at tradeanalysis@fmc.gov.

The U.S. Federal Maritime Commission (FMC) launched an investigation to determine if chassis providers are complying with the Commission’s recent Order establishing chassis choice. Earlier this year the FMC found that exclusivity agreements limiting shippers and truckers’ rights to choose chassis providers for merchant haulage were unlawful. The FMC ordered Ocean Carrier Equipment Management Association (OCEMA) and its members to cease and desist from requiring these agreements.

Recently however, the FMC received reports that chassis providers were not complying with the Commission’s Order. In response, the Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) has opened an investigation. BEIC will examine whether OCEMA and its members have altered their policies and practices to comply with the Commission’s Order.

The Commission may use any evidence of wrongdoing that BEIC uncovers to seek an injunction in federal district court. BEIC may also use any evidence of wrongdoing to initiate its own enforcement action. Additionally, BEIC may seek civil penalties for non-compliance.

The Commission encourages individuals with information that may be relevant to the investigation to come forward. Information may be reported to BEIC at BEIC@fmc.gov or via phone at 202-523-5783.

The FMC issued this Order on chassis agreements as part of FMC Docket No. 20-14:  Intermodal Motor Carriers Conference, American Trucking Associations, Inc. v. Ocean Carrier Equipment Management Association Inc, et. al. For more details on this ongoing docket, visit the FMC’s online reading room.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective July 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 July 15th GRIs will be the fourteenth GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 per reefer container. GRI amounts for all other container sizes are as per formula. For cargo from origin Japan via PS1 service, GRI amounts will be USD 2700/3000/3000/3798 per 20ft/40ft/40HC/45HC for dry cargo, respectively, and USD 3000 per reefer container.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective August 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 August 1st GRIs will be the fifteenth GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 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.