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Signals™ Headlines - October 4, 2021

Transpacific Eastbound Carriers File GRIs Effective October 15 and November 1, 2021

Several leading carriers serving the Trans Pacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective October 15, 2021, including COSCO, Evergreen, HMM Company Limited, Ocean Network Express (ONE), and ZIM. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The October 15th GRIs will be the twentieth GRI of 2021 for the East Asia/USA trade lane.

 

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective October 15, 2021, except as noted
Carrier
in USD, per 40ft ctr
COSCO (see note 1)
1000
Evergreen (see note 2)
1000 / 2000
HMM (see note 3)
1000 / 2000
ONE
1000
ZIM
1000

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

NOTE 2: Evergreen GRIs will be USD 1000 per 40ft dry container for dry cargo, and USD 2000 per reefer container. GRI amounts for all other container sizes are as per formula.

NOTE 3: HMM GRIs will be USD 1000 per 40ft container for cargo to destinations USWC, USEC, US Gulf coast, and USD 2000 per 40ft container for cargo to destinations IPI, MLB, RIPI. GRI amounts for all other container sizes are as per formula.

The GRI effective October 15, 2021 will be quickly followed by another GRI. Carriers who have updated their tariffs to include a General Rate Increases (GRIs) effective November 1, 2021, include COSCO, Evergreen, HMM Company Limited, Ocean Network Express (ONE), and ZIM. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The November 1st GRIs will be the twenty-first GRI of 2021 for the East Asia/USA trade lane.

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective November 1, 2021
Carrier
in USD, per 40ft ctr
COSCO (see note 1)
1000
Evergreen (see note 2)
1000 / 2000
HMM (see note 3)
1000 / 2000
ONE
1000
ZIM
1000

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

NOTE 2: Evergreen GRIs will be USD 1000 per 40ft dry container for dry cargo, and USD 2000 per reefer container. GRI amounts for all other container sizes are as per formula.

NOTE 3: HMM GRIs will be USD 1000 per 40ft container for cargo to destinations USWC, USEC, US Gulf coast, and USD 2000 per 40ft container for cargo to destinations IPI, MLB, RIPI. GRI amounts for all other container sizes are as per formula.

FMC to Issue Guidance on Complaint Proceedings for Detention and Demurrage

The U.S. Federal Maritime Commission (FMC) has voted to move forward with two demurrage-and-detention related initiatives proposed by Commissioner Rebecca F. Dye as part of Fact Finding 29 (FF29) and moved forward with other recommendations from FF29, including hiring additional staff for its Office of Consumer Affairs and Dispute Resolution Services (CADRS).

The first initiative is to issue a policy statement on issues that affect the ability of shippers, truckers, and others to obtain reparations for conduct that violates the Shipping Act, including conduct related to demurrage and detention. The policy statement will provide guidance on the scope of the prohibition against carrier retaliation, when attorney fees may be imposed on a non-prevailing party, and who may file a complaint with the Commission alleging unreasonable conduct.

Additionally, the Commission plans to issue an Advance Notice of Proposed Rulemaking (ANPRM) that will solicit public comments on two questions: first, whether the Commission should require ocean common carriers and marine terminal operators (MTOs) to include certain minimum information on or with demurrage and detention billings; and second, whether the Commission should require carriers and marine terminal operators to adhere to certain practices regarding the timing of demurrage and detention billings.

FMC Issues Rulemaking Proposal to Update Marine Terminal Tariff Regulations

The U.S. Federal Maritime Commission (FMC) has issued its FMC Docket No. 21-06 to propose several updates to its regulations governing marine terminal operator (MTO) tariffs. By this rulemaking, the FMC plans to modernize outdated requirements and clarify existing requirements associated with the filing of marine terminal operator (MTO) tariffs.

FMC regulations refer to marine terminal operator tariffs as “MTO schedules” and are outlined in 46 CFR Part 525. Pursuant to these regulations, a marine terminal operator, at its discretion, may make available to the public, subject to section 10(d) of the Shipping Act (46 U.S.C. 41102(c), 41103, 41106), a public tariff that provides a schedule of its rates, regulations, and practices. Part 525 also discusses the rules with respect to making terminal schedules available to the public. The FMC now proposes several changes to these regulations that are neither substantial nor policy related. Some provisions reference old names of Commission bureaus or outdated technology used to gain access to MTO schedules. Other provisions have been clarified as deemed necessary or revised to be consistent with other parts of the Commission’s regulations. The proposed rule clarifies that an MTO may register its tariff with the Commission and make it available to the public, and by doing so, its tariff is enforceable as an implied contract without proof of actual knowledge of its provisions. Interested parties are invited to submit comments, identified by Docket No. 21-06 in the subject line, by emailing secretary@fmc.gov Comments should be submitted by November 22, 2021.

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