FMC to Investigate Unfair Fees, Container Practices by Carriers

The Federal Maritime Commission will begin investigating whether ocean carriers are violating regulations on detention and demurrage fees, container returns and container availability for U.S. exports, the agency said Nov. 20. The investigation, which will be led by FMC Commissioner Rebecca Dye, will look at ocean carriers operating in alliances at the Port of Long Beach, the Port of Los Angeles and the Port of New York and New Jersey to determine if their unfair fees and container practices are “amplifying the negative effect of bottlenecks” at the ports.

The FMC’s announcement came about a week after Dye said the commission planned to address a rise in non-compliance with its May rule on detention and demurrage (see 2004290037). Industry has said the rule, which was intended to provide guidance on how the FMC assesses the reasonableness of detention and demurrage charges, was being ignored by ocean carriers (see 2009140045). In a letter to the FMC Nov. 16, more than 40 trade groups asked the commission to suspend detention and demurrage fees and said they are seeing chassis and skilled labor shortages, leading to terminal congestion (see 2011170041).

Because of industry concerns, the FMC said it has a “clear and compelling responsibility” to investigate the carrier and terminal practices, which it said are “having an unprecedented negative impact on congestion and amplifying bottlenecks at these ports and other points in the nation’s supply chain.” In a Nov. 19 order, the FMC called the issues a “serious risk” to the U.S.’s “competitive position in the world.”

“The time has come to resolve the most serious impediments to port performance,” said Dye, who will provide “periodic updates” on her investigation to the commission. “The Order emphasizes I, as Fact Finding Officer, have all enforcement options at my disposal to address the crisis that exists in our major port gateways.”