U.S. Federal Maritime Commission Chairman Daniel Maffei requested a substantial budget increase in his testimony before the House Subcommittee on Coast Guard and Maritime Transportation in support of the FMC’s Fiscal Year 2025 budget request on April 30, 2024. 

The Commission is seeking a 10 percent budget increase to support its operations and improve the Commission’s technology operations. This increase will bring the FMC’s budget to $48,452,000. This is $8,452,000 more than what was provided by the Consolidated Appropriations Act 2024. The budget is largely allocated toward salaries and rent but does include nearly $6 million in funds for upgrades to FMC’s information technology operations and modernization projects.

“The Federal Maritime Commission has delivered on the investment made in it two years ago,” said Chairman Maffei. Chairman Maffei went on to emphasize the importance of the FMC’s mission and continued work to ensure stability in maritime commerce: “Now is the time to continue laying the foundation for the inevitable future needs of Americans who rely on ocean-linked supply chains. As events in Baltimore, Panama, and the Red Sea have shown, the world of ocean shipping can change in an instant in disruptive ways. A strong and engaged FMC is a vital component of ensuring some stability for American importers and exporters in a world filled with uncertainty.”

Regarding enforcement actions by FMC’s Bureau of Enforcement, Investigations, and Compliance (BEIC), Chairman Maffei commented, “Our enforcement program continues to investigate many cases against foreign-based ocean carriers and other large companies that are accused of violating the law, and BEIC now is seeking penalties in the millions, and sometimes tens of millions of dollars.” 

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

Unreasonable Cargo Practices and Unlawful D&D – FMC Docket No. 24-18:  Access One Transport, Inc., a California-based motor carrier, filed a formal complaint alleging that CMA CGM S.A. violated the U.S. Shipping Act by failing to establish just and reasonable practices related to receiving, handling, storing and delivering property.

Specifically, Access One alleges that from April 2021 to June 2022 it regularly picked up containers of CMA-handled shipments from various terminals in the Ports of Long Beach and Los Angeles. Due to lack of appointments or other location restrictions such as dual transaction requirements, Access One was often unable to return the containers to the locations that CMA advised would accept returns. As a result of CMA’s failure to provide adequate locations for container returns, Access One was charged detention and other various fees. Access One further alleges that as a result of disputing these fees with CMA, CMA “shut out” Access One from access to CMA shipments.

Access One alleges over $77,000 in fees and other yet-to-be-determined damages from loss of business due to CMA’s failure to provide adequate locations for container return.

Access One requests the Commission investigate these actions, order CMA to cease and desist from these unlawful actions, pay Access One damages, interest and attorneys’ fees, as well as provide any other further relief that the Commission deems appropriate.

Access One filed similar complaints earlier this year against Zim Integrated Shipping Services and COSCO Shipping Lines.

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 May 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 May 15th GRIs will be the tenth 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.

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