The U.S. Federal Maritime Commission (FMC) requested public comments on whether supply chain congestion has created conditions warranting the issuance of an emergency order requiring common carriers and marine terminal operators (MTOs) to share information with shippers, truckers, and railroads. Specifically, the Commission asked for comments on the following three questions.

1. Has congestion created an emergency situation of a magnitude such that there exists a substantial, adverse effect on the competitiveness and reliability of the international ocean transportation supply system?
2. Would an emergency order issued by the Commission alleviate the emergency situation?
3. What would be the appropriate scope of an emergency order issued by the Commission?

The Ocean Shipping Reform Act of 2022 (OSRA-2022) authorizes the FMC to issue an emergency order after seeking comments from the trade on these three questions. If the Commission issues an emergency order, ocean common carriers and MTOs would be required to share information relating to cargo throughput and availability with relevant shippers, rail carriers, or motor carriers. An emergency order would remain in effect for not longer than 60 days, though the Commission could renew the order. Issuing both an emergency order and a renewal of an emergency order requires a unanimous vote by the Commission. The Commission’s authority to issue emergency orders terminates 18-months after the June 16, 2022 enactment of OSRA-2022.

Several motor carriers have already submitted comments requesting that the Commission issue an emergency order to address severe congestion at marine terminals. Most commenters requested that MTOs be required to provide real-time and historical data for container return appointment availability, container return capacity, and container return restrictions on a platform that is accessible by motor carriers, shippers, and ocean carriers.

Comments are due September 14, 2022. For detailed comment submission instructions, see the Federal Register notice.

The U.S. Federal Maritime Commission (FMC) issued a proposed plan for gathering import and export information from vessel-operating common carriers (VOCCs) to comply with data requirements established in the Ocean Shipping Reform Act of 2022 (OSRA-2022). Under the FMC’s proposed plan, VOCCs that transport more than 1500 TEUs per month between U.S. and foreign ports will be required to report tonnage data to FMC monthly.

OSRA-2022 requires the FMC to collect data on total import and export tonnage and the total loaded and empty 20-foot equivalent units (TEUs) per vessel from VOCCs calling the United States. The Commission is required to publicly report this data on a quarterly basis.

Interested parties may comment on the proposal until October 7, 2022. For detailed comment submission instructions, please see the Federal Register notice.

The U.S. Federal Maritime Commission (FMC) established a webpage dedicated to its actions and activities related to the implementation of the Ocean Shipping Reform Act of 2022 (OSRA-2022).

“OSRA-2022 is now law and the Federal Maritime Commission intends to act expeditiously to implement both the letter and the spirit of the Act.  Establishing a resource where the public can easily and quickly see all relevant materials related to OSRA implementation is critical to keeping all interested constituencies informed of progress the Commission is making in meeting the mandates established by the Congress and the President,” said Chairman Daniel B. Maffei.

The new webpage, which will be updated as the Commission moves forward with OSRA implementation, provides links to OSRA-related rulemakings, Industry Advisories, and press releases.

The U.S. Federal Maritime Commission (FMC) received two new formal complaints in August 2022 alleging violations of the U.S. Shipping Act and FMC regulations. 

Unlawful Insurance Fees:  Color Brands, LLC, a Michigan-based exporter, filed a formal complaint against AAF Logistics, Inc. (AAF), a California-based logistics company, alleging that AAF violated the U.S. Shipping Act and FMC regulations by failing to establish, observe, and enforce just and reasonable practices related to cargo claims. Specifically, Color Brands alleges that despite paying AAF for cargo insurance, AAF never obtained cargo insurance for Color Brands’ shipments. As a result of AAF’s conduct, Color Brands alleges that it suffered $322,624.17 in damages. 

Color Brands requested that the FMC order AAF to pay reparations and any other relief that the Commission deems proper.

Service Contract Violations:  U Shippers Group Inc., a U.S.-based shippers’ association, filed a formal complaint against Maersk A/S dba Maersk, a Denmark-based vessel operating common carrier, alleging that Maersk violated the U.S. Shipping Act and FMC regulations. U Shippers alleges that Maersk failed to provide services pursuant to U Shippers’ service contract, engaged in discriminatory practices against U Shippers, and failed to establish, observe, and enforce just and reasonable practices related to the receiving, handling , storing, and delivering of U Shippers’ cargo. Specifically, U Shippers alleges that Maersk failed to provide space under its service contract forcing U Shippers to move cargo at inflated spot rates and preventing U Shippers from obtaining VIP payments under the service contract. U Shippers further alleges that Maersk refused to negotiate a new service contract with U Shippers due to its status as a shippers’ association. 

U Shippers requested that the FMC investigate Maersk, find Maersk in violation of the Shipping Act, order Maersk to cease and desist all Shipping Act violations, and issue U Shippers reparations and attorneys’ fees as the Commission deems proper. 

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective October 1 through December 31, 2022. Details are as follows. Here is a table of BAF amounts posted by carriers:

NOTE 1:  CMA CGM calls the above surcharge the Bunker Adjustment Factor Surcharge (BAF03), Tariff Rule No. 010.08. Low Sulphur Surcharge IMO2020 (LSS20) is not applicable at this time.

NOTE 2:  COSCO calls the above surcharge the Bunker Charge (BUC), Tariff Rule No. 010-003.

NOTE 3:  HMM calls the above surcharge the Bunker Charge, Tariff Rule No. 2-63. HMM also filed in its FMC Tariff Rule No. 2-95, Environmental Compliance Charge (ECC), effective October 1, 2022. The ECC amounts are USD381/423/476/535 per 20/40/40HC/45ft, respectively, for destination USWC/USWC Local/IPI/MLB; and USD721/801/901/1014 per 20/40/40HC/45ft, respectively, for destination USEC (all water)/USGC/RIPI.

NOTE 4:  ONE calls the above surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within Tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 5:  OOCL calls the above surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate.

NOTE 6:  ZIM calls the above surcharge the New Bunker Factor – Far East (NBF), Rule No. 010-NB. Service contract cargoes subject to Carrier’s published BAF and/or EBS shall not be subject to NBF.  The NBF is effective August 1, 2022 until further notice.

NOTE 7:  Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 8:  Updated on a monthly basis.

Each carrier maintains its own tariffs and controls its own pricing.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective  September 15, 2022, including 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 September 15^th GRIs will be the eighteenth GRI of 2022 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only. The GRIs previously effective 01Sep2022 were postponed to effective 15Sep2022.

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.

NOTE 4:  Yang Ming 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.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective October 1, 2022, including 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 October 1^st GRIs will be the nineteenth GRI of 2022 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only. The GRIs previously effective 15Sep2022 were postponed to effective 01Oct2022.

 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.

NOTE 4:  Yang Ming 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.

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the October to December 2022 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1:  CMA CGM calls the above surcharge the Bunker Adjustment Factor Surcharge (BAF-03), Tariff Rule No. 010.4.  Low Sulphur Surcharge IMO2020 (LSS20) is not applicable at this time.

NOTE 2:  COSCO calls the above surcharge the Bunker Surcharge (BUC), Tariff Rule No. 010-001.

NOTE 3:  HMM calls the above surcharge the Bunker Surcharge (BUC) Rule No. 10-02A. It has been in effect in the FMC tariff since July 1, 2022. HMM also filed in its FMC Tariff Rule No. 10-02F, Environmental Compliance Charge (ECC), effective since July 1, 2022. The ECC since July 1, 2022 amounts are USD 63/125/125/125 per 20/40/40HC/45ft, respectively, for dry cargo moving via West Coast; and USD 50/101/101/101 per 20/40/40HC/45ft, respectively, for dry cargo moving via East Coast, Gulf.

NOTE 4:  ONE calls the above surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within Tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 5:  OOCL calls the surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate.

NOTE 6:  Yang Ming calls the above surcharge the New Bunker Charge, Tariff Rule No. 10-AH.

NOTE 7:  ZIM calls the above surcharge the New Bunker Factor – Far East (NBF), Tariff Rule No. 010-NB. The NBF is effective August 1, 2022 until further notice.

NOTE 8:  Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 9:  Updated on a monthly basis.

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.