FMC Issues Industry Advisory as Potential Port Labor Strike Nears

Statutes and regulations administered by the Federal Maritime Commission will remain in effect if International Longshoremen’s Association members go on strike next week at container terminals at East and Gulf coast ports, the FMC said in an industry advisory Sept. 23.

“Common carriers and marine terminal operators (MTOs) must continue to comply with all statutory and regulatory requirements, including rules governing tariffs, service contracts, MTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed,” the FMC said. “Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.”

Speaking at a National Customs Brokers & Forwarders Association of America conference, FMC Commissioner Carl Bentzel said the ILA and the U.S. Maritime Alliance are far apart as they try to negotiate a new labor contract. The current one expires Sept. 30 (see 2409120046).

“I feel that we’re at an impasse right now and I would urge you all to take steps to ensure preserving your rights as a shipper or for your customers,” Bentzel said. “I’m hopeful that something could break, but at present I would urge you to plan for disruption in service.”

He recommended removing as much cargo from potentially affected terminals as possible to avoid demurrage and detention fees during a strike. The "legalities" for such fees during a work stoppage "are unclear, to say the least,” he said.