The Federal Maritime Commission announced it will begin work in mid-April on the last phase of its Fact Finding Investigation No. 28 into the conditions and practices relating to detention, demurrage, and free time in U.S. international ocean commerce. In this final phase innovation teams consisting of industry experts who are part of the ocean freight transportation system and global supply chains will meet in Washington, DC. The innovation teams will focus on the four areas listed in the Fact Finding 28 Final Report (FF28) which were identified as offering the best opportunities to refine commercially viable demurrage and detention (D&D) approaches:

• Transparent and standardized language for D&D practices;
• Clear, simple, and accessible billing and dispute resolution processes for D&D charges;
• Evidence that would be relevant to resolving D&D billing disputes;
• Consistent notice to cargo interests of container availability.

FMC Commissioner Rebecca Dye leads this investigation and remarked “it is an enormous challenge to develop an industry-wide practice for demurrage and detention. Our goal is to make focused, significant changes that will emphasize demurrage and detention incentives and boost freight fluidity. Contributions from industry experts and commitment to continuous supply chain process improvement are necessary to achieve this goal.”

Commissioner Dye also welcomes future comments from those who have experience and expertise in moving ocean freight. Parties interested in contributing to Fact Finding Investigation No. 28 and its discussion of detention and demurrage issues should contact Robert Blair, Counsel to Commissioner Dye, via email at rblair@fmc.gov Commenters should be prepared to address the four key areas that the innovation teams will focus on.

This investigation of detention and demurrage practices was prompted by Petition P4-16, which was submitted by the Coalition for Fair Port Practices in December 2016 and has generated many comments. In January 2018, the Commission held two days of hearings on issues raised in this petition from interested parties. During October and November 2018, Commissioner Dye held field interviews at California, Florida and New York area ports as part of phase two of the investigation. To facilitate the Innovation Teams, the Commission issued an order in December 2018 to continue FF28 with Commissioner Dye as Fact Finding Officer. A final report on this phase of the investigation is due on September 3, 2019.

Most of the leading container carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges, including bunker adjustment factors (BAF) effective April 1 through June 30, 2019. Details are as follows. Here is a table of carriers that have recently posted revised BAF amounts in their FMC tariffs:

NOTE 1: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03).

NOTE 2: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 3: APL calls the above Bunker Surcharge (BAF03), which is applicable to service contracts or tariff rate items with validity greater than three months and are not subject to Bunker Surcharge (BAF08). APL has also filed in its FMC tariff a Market Adjustment Factor (MAF) of USD 4000/5000/5625/6330/4250 per 20ft/40ft/40HC/45ft/RD40ft container, effective April 01, 2019 thru April 30, 2020 for Service Contracts only; the MAF is applicable to Transpacific Eastbound dry and reefer cargo.

NOTE 4: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Several leading carriers serving the Trans Pacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective March 15, 2019, including APL, CMA CGM, COSCO, Evergreen, Hyundai Merchant, Ocean Network Express, and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The March 15th GRIs will be the sixth GRI of 2019 for the East Asia/USA trade lane.

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

Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective April 1, 2019, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The April 1st GRIs will be the seventh GRI of 2019 for the East Asia/USA trade lane.

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

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the April to June 2019 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS. These amounts are effective April 02, 2019.

NOTE 2: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03).

NOTE 3: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 4: Subject to Low Sulphur Fuel Charge (LSF or LSS).