THE US Federal Maritime Commission (FMC) has seen a surge in complaints about the shipping industry's business practices, particularly concerning detention and demurrage fees, reports London's Financial Times.
Over the past two years, the number of these complaints to the fmc has more than tripled.
Data from the FMC reveals that shippers have submitted nearly 400 complaints in the 14 months following the enactment of the Ocean Shipping Reform Act in July 2022.
One of the primary motivations for the reform legislation passed by the US Congress was the mounting dissatisfaction among shippers, especially exporters, with the practices of major carriers.
The FMC had already been vocal in expressing concerns about the fees imposed by carriers and terminals, but these concerns were exacerbated as shipping volumes soared and backlogs and congestion increased at US ports in 2021.
The reform act places a heavier burden on carriers to justify their fees, and it grants the FMC new investigative and enforcement authority. It has also simplified the process for shippers to file complaints.
The number of complaints has risen sharply, nearly tripling the rate seen two years prior, as per data shared with the Financial Times.
These complaints primarily revolve around detention and demurrage fees and congestion surcharges imposed by carriers and terminals during the surge in shipping volumes.
Shippers have expressed grievances about issues such as the unavailability of chassis for container movement and the lack of reservation slots to return empty containers.
They have also questioned carriers' practice of including holidays and times when terminals were closed in the free time allocated for containers.
The FMC informed the newspaper that they have conducted 43 investigations into claims related to charges and have resolved 36 cases as of September this year.
While the FMC has made it easier for shippers to file claims, they have also worked to help parties settle smaller claims before initiating lengthy investigations.
The report notes that 101 cases have been resolved through cooperation between shipping companies and shippers, often resulting in full refunds.
However, there are also prominent complaints against many of the largest carriers, and now carriers are reciprocating by filing complaints against intermodal companies and terminals.
The Financial Times reports that the FMC has imposed a total of US$2.89 million in civil penalties over 12 months, mostly against carriers.
This is in stark contrast to almost no penalties imposed two years earlier. The total for this year includes $2.65 million paid by Ocean Network Express (ONE) and Wan Hai to settle charges related to detention and demurrage fees.
The rise in the number of cases signifies a broader effort to reform and regulate the business practices of carriers.
SeaNews Turkey
Over the past two years, the number of these complaints to the fmc has more than tripled.
Data from the FMC reveals that shippers have submitted nearly 400 complaints in the 14 months following the enactment of the Ocean Shipping Reform Act in July 2022.
One of the primary motivations for the reform legislation passed by the US Congress was the mounting dissatisfaction among shippers, especially exporters, with the practices of major carriers.
The FMC had already been vocal in expressing concerns about the fees imposed by carriers and terminals, but these concerns were exacerbated as shipping volumes soared and backlogs and congestion increased at US ports in 2021.
The reform act places a heavier burden on carriers to justify their fees, and it grants the FMC new investigative and enforcement authority. It has also simplified the process for shippers to file complaints.
The number of complaints has risen sharply, nearly tripling the rate seen two years prior, as per data shared with the Financial Times.
These complaints primarily revolve around detention and demurrage fees and congestion surcharges imposed by carriers and terminals during the surge in shipping volumes.
Shippers have expressed grievances about issues such as the unavailability of chassis for container movement and the lack of reservation slots to return empty containers.
They have also questioned carriers' practice of including holidays and times when terminals were closed in the free time allocated for containers.
The FMC informed the newspaper that they have conducted 43 investigations into claims related to charges and have resolved 36 cases as of September this year.
While the FMC has made it easier for shippers to file claims, they have also worked to help parties settle smaller claims before initiating lengthy investigations.
The report notes that 101 cases have been resolved through cooperation between shipping companies and shippers, often resulting in full refunds.
However, there are also prominent complaints against many of the largest carriers, and now carriers are reciprocating by filing complaints against intermodal companies and terminals.
The Financial Times reports that the FMC has imposed a total of US$2.89 million in civil penalties over 12 months, mostly against carriers.
This is in stark contrast to almost no penalties imposed two years earlier. The total for this year includes $2.65 million paid by Ocean Network Express (ONE) and Wan Hai to settle charges related to detention and demurrage fees.
The rise in the number of cases signifies a broader effort to reform and regulate the business practices of carriers.
SeaNews Turkey
