FMC Commissioner Proposes Reforms to Certain Carrier, MTO Practices

Rebecca Dye of the Federal Maritime Commission proposed new sets of best practices for ocean carriers and marine terminal operators at the Ports of Los Angeles and Long Beach and the Port of New York and New Jersey, covering activities surrounding container returns, earliest return dates and container pickups.

The proposed reforms are “designed to increase systemic clarity and predictability, and to mitigate recurring supply chain bottlenecks,” the proposals said. Dye said the U.S. “must prepare now to handle the next surge in cargo demand by eliminating bottlenecks and ad hoc processes that undermine the efficiency of the U.S. international ocean freight delivery system.”

Dye is seeking public feedback on the proposals by Sept. 15, adding that she isn’t necessarily looking for regulatory changes. She said she’s “convinced that focused engagement among industry leaders, rather than regulatory solutions, is a better way to develop commercial practices that address critical supply chain bottlenecks and improve the performance of the U.S. international ocean supply chain."

One proposal said containers should be returned to the terminal of the original pickup and that truckers need to have an option to return empty containers to another location to "facilitate double moves.” The proposal also said that in the rare case when a trucker cannot return a container to the terminal of original pickup, "notice to truckers of the new container receiving terminal must occur no later than 12 PM the previous day.” Any requirement for an appointment at a new terminal must be waived, the proposal said.

The second proposal focuses on best practices for ocean carriers changing their earliest return date (ERD). The proposal said that the ERD date would be the date in effect "at the time the empty container has been picked up from the terminal.” The FMC Supply Chain Innovation Team's "engagement surrounding this proposal will also involve related detention and demurrage charges," the proposal said.

The third proposal said reasonable practices would require ocean carriers and marine terminals to coordinate to provide shippers "with an electronic notice that a container is available for pickup.” Free time does not start until a container is "accessible and available" for pickup and stops when a container is not accessible or available for pickup, the proposal said.

Questions or reactions about the proposals can be submitted to Dye by way of contacting John Moran at jmoran@fmc.gov until Sept. 15.