Home / Signals™ / Signals™ Headlines – November 2, 2023

Signals™ Headlines - November 2, 2023

FMC Receives One New Formal Complaint


The U.S. Federal Maritime Commission (FMC) received one new formal complaint in October 2023 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable Cargo Practices – FMC Docket No. 23-11:  BAL Container Line Co., Limited filed a formal complaint against SSA Marine Terminal and SSA Terminals (Pier A), LLC, alleging that SSA violated the U.S. Shipping Act by failing to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property.

Specifically, BAL alleges that between 2021 and 2022 SSA consistently charged congestion surcharges of $100 per day for all containers unloaded from BAL vessels that remained at SSA terminals beyond the allowed free time. BAL alleges that SSA provided no explanation for this congestion fee and even assessed the fee when containers were placed by SSA in “inaccessible” areas at its terminal. BAL does admit that the congestion surcharge was listed in its SSA contract but alleges that the surcharge was not clearly defined as required by the U.S. Shipping Act.

BAL alleges that it sustained damages of at least $8,849,400 as result of SSA’s actions. BAL requests the Commission to order SSA to strike all congestion invoices, to cease and desist from violation of the Shipping Act, put in place lawful and reasonable practices, and provide any other further relief that the FMC deems appropriate.

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

FMC Requests Additional Information for NYSHEX Agreement


The U.S. Federal Maritime Commission (FMC) requested additional information from the parties to the Agreement by Ocean Common Carriers to Participate on the Exchange Board (Agreement No.: 201234–006). This Agreement authorizes CMA CGM SA, Hapag-Lloyd AG, COSCO Shipping Co., Ltd., Maersk Line A/S, and HMM Company Limited to serve on the board of New York Shipping Exchange Inc. (NYSHEX).

NYSHEX is a digital contracting technology that enables ocean common carriers to offer shippers and non-vessel-operating common carriers (NVOCCs) acting as shippers the ability to search for ocean transportation rates and services online, and to enter into service contracts covering such rates and services online.

The parties had sought to amend the Agreement to authorize their participation in the governance of NYSHEX including NYSHEX member council meetings, NYSHEX technology council meetings, and other discussions relevant to the management of NYSHEX. The parties also sought to amend the Agreement to remove ONE and add Mediterranean Shipping Company SA as a member.

The Commission’s request for additional information may prevent the Agreement update from becoming effective as originally scheduled on December 1, 2023.

For more details visit FMC’s Agreement Library. The FMC’s Agreement Library provides public access to all effective vessel-operating common carrier and marine terminal operator agreements on file with the Commission.

Transpacific Eastbound Carriers File GRIs Effective November 15, 2023, and December 1, 2023

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective November 15, 2023, 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 November 15th GRIs will be the twenty-second GRI of 2023 for the East Asia/USA trade lane.

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective November 15, 2023
Carrier
in USD, per 40ft ctr
CMA CGM (note 1)1000
COSCO (note 2)1000
Evergreen (note 3)1000
Hapag Lloyd1000
HMM1000
ONE1000
Yang Ming1000
ZIM1000

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 December 1, 2023, 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 December 1st GRIs will be the twenty-third GRI of 2023 for the East Asia/USA trade lane.

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective December 1, 2023
Carrier
in USD, per 40ft ctr
CMA CGM (note 1)1000
COSCO (note 2)1000
Evergreen (note 3)1000
Hapag Lloyd1000
HMM1000
ONE1000
Yang Ming1000
Zim1000

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.

Back
to top

Celebrating 45 Years of Navigating the Regulatory Seas

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

Get in touch