Home / Signals™ / Signals™ Headlines – June 6, 2025

Signals™ Headlines - June 6, 2025

FMC Investigates Vessel Flagging Practices


The U.S. Federal Maritime Commission (FMC) announced it is conducting a nonadjudicatory investigation to examine vessel flagging laws. Specifically, the FMC will investigate the vessel flagging laws, regulations, or practices of certain foreign governments. The FMC will examine whether these practices create unfavorable shipping conditions in the foreign trade of the United States.

The Commission is concerned that conditions created by the wide and uneven range of foreign vessel flagging laws, regulations, and practices endangers the ocean shipping supply chain. The Commission fears that some countries have engaged in a “race to the bottom” by offering to register and flag vessels with little or no oversight or regulation.

The FMC’s investigation commenced with a 90-day public comment period. The Commission is seeking examples of unfavorable flagging laws, regulations, and practices that endanger the ocean shipping supply chain. The Commission is particularly interested in comments from those with expertise or experience in vessel operations, international trade, international law, and national security. Commenters may also identify actions that high-quality registries can take to lower costs and compliance burdens.

The U.S. Shipping Act authorizes the FMC to conduct comprehensive investigations into practices that create unfavorable shipping conditions. The Commission may also take vigorous enforcement measures when appropriate. The deadline to submit comments is August 20, 2025. For more details, view the official notice posted in the Federal Register.

FMC Receives One New Formal Complaint


The U.S. Federal Maritime Commission (FMC) received one new formal complaint in May 2025 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable D&D Charges – FMC Docket No. 25-07:  PKDC, a Colorado-based furniture distributor, filed a formal complaint against COSCO Shipping Lines Co., Ltd. alleging various violations of the U.S. Shipping Act.

Specifically, in 2022 PKDC regularly shipped containers from Asia to the US via COSCO. PKDC’s service contract provided for 10 free days of chassis rental. PKDC was often unable to pick up and return containers due to extreme congestion at ports and rail terminals. COSCO’s pick up and drop off locations often had no appointment availability and chassis restrictions. Additionally, a shortage of chassis further exacerbated PKDC’s ability to facilitate container movements. Despite these conditions, COSCO continue to charge PKDC for detention and demurrage. PKDC alleges COSCO invoiced PKDC nearly $1 million in detention and demurrage charges for the period of May to October 2022 alone.

PKDC requests the Commission investigate this matter and order the Respondents to cease and desist from these Shipping Act violations, to pay reparations and expenses, and to provide any other relief the Commission deems proper.

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.

Transpacific Eastbound Carriers File GRIs Effective June 15, 2025 and July 1, 2025

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

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective June 15, 2025
Carrier
in USD, per 40ft ctr
CMA CGM2000
COSCO (note 1)3000
Evergreen (note 2)3000
Hapag Lloyd3000
HMM3000
ONE1000
Yang Ming2000
ZIM2000

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

NOTE 2:  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 July 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 July 1st GRIs will be the thirteenth GRI of 2025 for the East Asia/USA trade lane. 

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective July 1, 2025
Carrier
in USD, per 40ft ctr
CMA CGM2000
COSCO (note 1)3000
Evergreen (note 2)3000
Hapag Lloyd3000
HMM3000
ONE1000
Yang Ming2000
Zim2000

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

NOTE 2:  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.

Transpacific Westbound Carriers Update Fuel Surcharges Effective July 1, 2025

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the July to September 2025 quarter. Here is a table of carriers that have posted BAF amounts:

TRANSPACIFIC WESTBOUND (USA to Asia)
BUNKER ADJUSTMENT FACTOR (BAF), July – September 2025, in USD, per 40ft ctr, except as noted below
Carrier
Dry Cargo
Reefer Cargo
From US Atlantic/Gulf Coast Ports
From US Pacific Coast Ports
From US Atlantic/Gulf Coast Ports
From US Pacific Coast Ports
CMA CGM (see notes 1, 8)703612086
COSCO (see note 2)283181425272
Evergreen (see note 8)245117654330
HMM (see note 3)25238721421314
ONE (see notes 4, 8)156114346206
OOCL (see notes 5, 9)11892177138
Yang Ming (see notes 6, 8)220132772418
ZIM (see note 7)866512997

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. 10-02A. HMM also filed in its FMC tariff Rule 10-02F, Environmental Compliance Charge (ECC), effective July 1, 2025. The ECC amounts are USD 37/74/74/74 per 20/40/40HC/45ft, respectively, for dry cargo moving via West Coast; and USD 15/30/30/30 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.

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

NOTE 7:  ZIM calls the above surcharge the New Bunker Factor – Far East (NBF), Tariff Rule No. 010-NB. The above bunker amounts have been effective since May 1, 2025.

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.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective July 1, 2025

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective July 1 through September 30, 2025. Details are as follows.

TRANSPACIFIC EASTBOUND (Asia to USA)
BUNKER ADJUSTMENT FACTOR (BAF), July – September 2025, in USD, per 40ft ctr, except as noted below
Carrier
To US Atlantic/Gulf Coast Ports
To US Pacific Coast Ports
To IPI/MLB via US Pacific Coast
Dry
Reefer
Dry
Reefer
Dry
Reefer
CMA CGM (see notes 1, 7)9651158519622519622
COSCO (see note 2)8621454484818484818
Evergreen (see note 7)10331492424675424675
HMM (see notes 3, 8)1029913602
ONE (see notes 4, 7)324514224316542634
OOCL (see notes 5, 8)107118074667867741307
Yang Ming (see note 7)536772290418290418
ZIM (see notes 6, 7, 8)8611291646969646969

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 charge the Bunker Charge, tariff Rule 2-63. HMM also filed in its FMC tariff Rule 2-95, Environmental Compliance Charge (ECC), effective July 1, 2025. The ECC amounts are USD 100/111/125/141 per 20/40/40HC/45ft, respectively, for destination USWC/USWC Local/IPI/MLB; and USD 180/200/225/253 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.

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. The above bunker amounts have been effective since May 1, 2025.

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.

 

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.

Back
to top

Celebrating 45 Years of Navigating the Regulatory Seas

Need help with U.S. Federal Maritime Commission compliance?

Get in touch