The U.S. Federal Maritime Commission (FMC) received two new formal complaints in August 2024 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable Cargo Practices – FMC Docket No. 24-26:  Triple L Global, LLC (TLG) filed a formal complaint against SLI, Inc. d/b/a Sealink International alleging various violations of the U.S. Shipping Act. TLG is a California-based exporter primarily shipping to Thailand and Malaysia. Sealink is an FMC-licensed non-vessel-operating common carrier (NVOCC) and ocean freight forwarder (OFF).

From April 2023 to May 2024, TLG claims it shipped over 250 containers using Sealink’s freight forwarding services. According to the Complaint, Sealink demanded a $35,000 deposit from TLG to access Sealink’s freight forwarding services. Additionally, in May 2024 Sealink allegedly sent a letter to TLG stating that CMA CGM found one of TLG’s containers was misdeclared. As a result, Sealink demanded TLG pay a $500,000 deposit while Sealink resolved the matter with CMA CGM. When TLG refused to pay the deposit, Sealink allegedly held TLG’s cargo. Later TLG claims that Sealink demanded TLG’s clients pay deposits for cargo release and even ultimately sold some of TLG’s cargo without notice.

TLG requests the Commission order Sealink to cease and desist from the unlawful conduct, revoke Sealink’s FMC license, order Sealink to pay TLG reparations, along with interest and attorneys’ fees, costs, as well as provide any other further relief that the Commission deems appropriate.

Unlawful Detention Charges – FMC Docket No. 24-27:  International Lumber Imports, Inc. (ILI) filed a formal complaint against CEVA Freight, LLC and ZIM alleging unlawful detention charges. ILI is a Florida-based exotic hardwood importer.

According to the Complaint, in September 2021 ILI shipped three containers from Brazil to the Port of Charleston, South Carolina. Upon arrival the containers were subject to customs exam by the U.S. Fish and Wildlife Services (FWS). In April 2022, FWS advised ILI that the cargo was refused entry and the cargo was seized. Thereafter ZIM sent ILI an invoice for $56,070.45 in exam fees. Consequently, after attempting to negotiate, ILI paid these fees. Despite this payment in September 2022, CEVA sent ILI invoices for $180,860 in pass-through detention fees from ZIM. These fees covered the entire customs exam period and an additional 98 days after the containers were officially seized and devanned in April 2022. Eventually FWS released the cargo from government hold on June 26, 2024.

ILI requests the Commission find the detention charges unlawful. Additionally, ILI requests the Commission order ZIM and CEVA to pay ILI reparations and damages, interest and attorneys’ fees, as well as provide any other further relief that the Commission deems appropriate.

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.

Members of the West Coast Marine Terminal Operators Agreement (WCMTOA) announced that the PierPass fee will increase on September 1, 2024 by 6 percent. The fees will increase from USD 35.57 per TEU (twenty-foot equivalent unit) and USD 71.14 per FEU (forty-foot equivalent unit), to USD 37.71 per TEU and USD 75.42 for all other container sizes, respectively.

This fee is called the PierPass Traffic Mitigation Fee (TMF) and applies for both day and night cargo, across all hours of operation. The TMF applies to non-exempt containers. Exempt containers include empty containers, import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority, and transshipment cargo. Empty chassis and bobtail trucks are also exempt from the TMF. PierPass does not set a fee for less-than-container load (LCL) shipments. NVOCCs who impose a PierPass fee for LCL shipments and/or a PierPass handling fee must file these fees in their FMC tariff rules, or clearly note these in their tariff rates or NVOCC Negotiated Rate Arrangements (NRAs).

The Federal Maritime Commission (FMC) first authorized The West Coast Marine Terminal Operators Agreement (WCMTOA) under FMC Agreement No. 201143 in June 2003. In 2005 the WCMTOA was amended to allow its members to create PierPass, Inc. and to implement the “OffPeak” program. The OffPeak program’s goal is to reduce severe cargo-related congestion on streets and highways around the Los Angeles and Long Beach ports. The OffPeak program established regular weekday night and Saturday work shifts to handle trucks delivering and picking up containers at marine terminals and implemented the PierPass TMF. In November 2018 the FMC approved the change of the TMF to the current flat fee for container moves on all shifts, known as PierPass 2.0.

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the October to December 2024 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: CMA CGM calls the above Bunker 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 charge the Bunker Surcharge (BUC) Rule No. 10-02A. HMM also filed in its FMC tariff Rule 10-02F, Environmental Compliance Charge (ECC), effective October 1, 2024. The ECC amounts are USD 50/100/100/100 per 20/40/40HC/45ft, respectively, for dry cargo moving via West Coast; and USD 32/64/64/64 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.

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.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective September 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 September 15th GRIs will be the eighteenth 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 October 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 October 1st GRIs will be the nineteenth 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.

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective October 1 through December 31, 2024. Details are as follows.

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 charge the Bunker Charge, tariff Rule 2-63. HMM also filed in its FMC tariff Rule 2-95, Environmental Compliance Charge (ECC), effective October 1, 2024. The ECC amounts are USD 180/200/225/254 per 20/40/40HC/45ft, respectively, for destination USWC/USWC Local/IPI/MLB; and USD 360/400/450/507 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), Tariff Rule No. 010-NB. Service contract cargoes subject to Carrier’s published BAF and/or EBS shall not be subject to NBF.

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.

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.