FMC Port Investigation Still Ongoing, Commission Says

The Federal Maritime Commission told lawmakers that it is still investigating port issues caused by the COVID-19 pandemic (see 2102020050 and 2102250039), including unfair detention and demurrage fees and reports that carriers are declining to carry U.S. agricultural exports. The FMC has “yet to make any final determinations” on those issues but will take action against any “practices that violate the law,” the commission said in a March 17 letter to House members released this week.

Lawmakers told the FMC earlier this month that they were concerned over reports that carriers are sending empty containers back overseas rather than filling them with exports (see 2103100027). The FMC said Commissioner Rebecca Dye, who is leading the commission’s investigation, ordered more than 25 carriers and terminal operators earlier this month to provide a “compulsory report” on their detention and demurrage practices and container availability for U.S. exports. Those responses will “inform Commissioner Dye’s next steps to address this critical issue,” the FMC said.

Peter Friedmann, executive director of the Agriculture Transportation Coalition and a vocal critic of the FMC’s initial response to the pandemic (see 2003190041), applauded the lawmakers’ “focus” on agricultural-related export issues. He also said AgTC is “encouraged” that the FMC is united behind Commissioner Dye. “But the export transport crisis continues, with lost sales and other additional costs amounting to millions of dollars a week,” Friedmann said in a March 25 statement. “Solutions are urgently required.”