The U.S. Federal Maritime Commission (FMC) issued a reminder to common carriers and marine terminal operators (MTOs) that retaliation against shippers and motor carriers will not be tolerated.

The Ocean Shipping Reform Act of 2022 expanded the Commission’s statutory authorities to combat retaliation, adding protections for shipper’s agents, non-vessel-operating common carriers, ocean freight forwarders, and motor carriers. These enhanced provisions are found at 46 U.S.C. § 41102(d).

The FMC emphasized that retaliation against a shipper, non-vessel-operating common carrier, ocean freight forwarder, or motor carrier for questioning common carrier or MTO invoicing, surcharges, or other practices, or making a complaint and/or providing information to the agency, is a serious violation of the law that carries significant penalties. The FMC advised it will actively pursue any allegation of retaliatory conduct and will hold offending parties fully accountable.

The Commission also called attention to its recent rule on demurrage and detention billing. The new rule, which went into effect on May 28, 2024, requires common carriers and MTOs to provide detailed detention and demurrage invoices. These invoices must “contain sufficient information to enable the billed party to readily identify a contact to whom they may direct questions or concerns related to the invoice and understand the process to request fee mitigation, refund, or waiver.”  Parties that receive invoices that do not contain this information, do not need to pay the invoices. The FMC stated that it will vigorously investigate any allegations of retaliation connected to the right of parties to question detention and demurrage invoices.

Anyone with information concerning retaliation by a common carrier or MTO should contact the Commission’s Bureau of Enforcement, Investigations and Compliance at BEIC@fmc.gov or (202) 523-5783.

The U.S. Federal Maritime Commission (FMC) added two temporary administrative law judges (ALJs). Judge Richard Ambrow and Judge Mary A. Hervey joined the Commission in October. The Commission is dealing with an increase in shipper complaints since the COVID-19 pandemic. So far this year, shippers filed 27 formal complaints with the FMC’s Office of Administrative Law Judges (OALJ). This represents an increase in filings from 2023, with only 14 complaints filed that year, but a decrease from 2022 when 35 complaints were filed. The Commission’s ALJs are still dealing with many COVID-era complaints filed in 2022 and 2023.

Judge Ambrow served as an administrative law judge in the U.S. Department of Health and Human Services’ Office of Medicare Hearings and Appeals since 2019 and has been detailed to the U.S. Small Business Administration’s Office of Hearings and Appeals since 2022. Other previous positions held in government include serving as Counsel to the Solicitor of Labor, U.S. Department of Labor; a Trial Attorney in the Tax Division of the U.S. Department of Justice; and as a Judicial Law Clerk for the U.S. District Court, Eastern District of Michigan. He also practiced law for over seven years at Troutman Sanders LLP. Judge Ambrow received his J.D. from the University of Notre Dame Law School in 2001, and his B.A. from Wayne State University in 1998.

Judge Hervey served as a Supervisory Administrative Law Judge since 2019. She previously served for more than two decades as a Trial Attorney for the U.S. Department of Justice’s Tax Division. Prior to government service, she worked as a Registered Nurse at Children’s Hospital in Buffalo, New York. Judge Hervey received her J.D. from American University Washington College of Law in 1985 and her B.S. in nursing from Niagara in 1981.

Both Judge Ambrow and Judge Hervey were serving as administrative law judges at the U.S. Department of Health and Human Services before coming to the FMC. Both judges will serve a temporary one-year period.

The U.S. Federal Maritime Commission (FMC) met on October 22nd to discuss active investigations, the charge complaint process, and upcoming technology upgrades.

The Director of the Bureau of Enforcement, Investigations, and Compliance (BEIC), Mr. John Crews, reported on FMC investigations. BEIC is currently subpoenaing information and deposing witnesses as part of two major investigations. BEIC is prioritizing investigations of possible wrongdoing where the alleged misconduct negatively impacts the industry or causes market distortion. Mr. Crews noted that such investigations are complex and require additional capabilities to successfully prosecute.

Additionally, BEIC is prioritizing reviews of allegations of misconduct involving the recent work stoppage at ports on the U.S. East and Gulf Coasts. Consequently, the BEIC Director reminded common carriers and marine terminal operators that retaliation against parties who file complaints at the Commission is a serious offense under the Shipping Act. FMC Chairman Daniel Maffei and all of the Commissioner reiterated that the Commission will not tolerate retaliatory conduct.

Next, the Commission received an update on the Charge Complaint process. This process was established by the Ocean Shipping Reform Act of 2022 to provide the public with a simplified way to challenge erroneously issued charges. As of September 30, 2024, the Commission has received over 600 charge complaints. Moreover, common carriers have voluntarily waived or refunded over $3 million in charges. The Commission will initiate a rulemaking in 2025 to establish a permanent charge complaint procedure.

Lastly, the Commission discussed updates to the Commission’s information technology infrastructure. The Commission’s Chief Information Officer, Mr. Mohammad “Ali” Usman, reported that updates to the Commission’s cybersecurity are underway. Additionally, his team is working on improvements to allow the Commission to make more use of the data it collects.

The Commission will next meet on December 4, 2024. At that meeting, the Commission will hear oral arguments examining jurisdictional issues concerning marine terminal operators as part of a formal complaint filed under Docket No. 22-12.

A recording of the Commission’s meeting is available on the Commission’s YouTube channel.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective November 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 November 15th GRIs will be the twenty-second 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 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 December 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 December 1st GRIs will be the twenty-third 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 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.

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.