FMC to move forward with two of the proposed demurrage-and-detention related initiatives

News - Shipping and Freight Resource

The FMC set up Fact Finding 29 in March 2020 in response to many complaints raised with the FMC to investigate challenges to the freight delivery system in the USA and possible violations of the Shipping Act.

Commissioner Rebecca F. Dye was tasked by the FMC to carry out the investigation with the full authority under 46 C.F.R. §§ 502.281 to 502.291, to perform such duties as may be necessary in accordance with U.S. law and Commission regulations.

In her Executive Summary to the Subcommittee on Coast Guard & Maritime Transportation in June, Commissioner Dye reported that four key key measures to improve efficient cargo movement in US Ports have been identified.

Today, the Federal Maritime Commission voted to move forward with two demurrage-and-detention related initiatives proposed by Commissioner Rebecca F. Dye as part of Fact Finding 29. Unlike Commissioner Dye’s other Interim Recommendations, these initiatives required formal Commission approval.

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Federal Maritime Commission to assess carriers’ compliance on demurrage and detention

News - Shipping and Freight Resource

The Federal Maritime Commission has established a new audit program and dedicated audit team to assess carrier compliance with the Agency’s rule on detention and demurrage as well as to provide additional information beneficial to the regular monitoring of the marketplace for ocean cargo services.

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The impact of congestion and capacity on businesses and what to expect?

Webinar

Port Congestion, equipment and space capacity crunch are impacting businesses with supply chains and consumers heavily impacted..

In a webinar, Rachel Premack, Senior Investigations Reporter at Business Insider, Michael J Gordon, Senior FMC Advisor (retd), and Adam Compain, SVP of Global Growth at project44 discuss how rising freight prices have set off a domino effect, manifesting across supply chains through port congestion, drayage holdups, dropping inventories, inflation and lengthening lead times..

They reference insights from a market survey of over 200 supply chain professionals and talk through a possible timeline to a freight market cool down, when it can potentially happen and the circumstances that will lead us there..

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Preliminary findings of Fact Finding 29 identifies key measures to improve efficient cargo movement in US Ports

FMC Fact Finding 29 - Shipping and Freight Resource

The FMC set up Fact Finding 29 in March 2020 in response to many complaints raised with the FMC to investigate challenges to the freight delivery system in the USA and possible violations of the Shipping Act..

Commissioner Rebecca F. Dye was tasked by the FMC to carry out the investigation with the full authority under 46 C.F.R. §§ 502.281 to 502.291, to perform such duties as may be necessary in accordance with U.S. law and Commission regulations..

In her Executive Summary to the Subcommittee on Coast Guard & Maritime Transportation in June, Commissioner Dye reported that four key key measures to improve efficient cargo movement in US Ports have been identified..

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Update on FMC’s Fact Finding 29 on Global Container Alliance practices

global container alliance - shipping and freight resource

Fact Finding 29 is an order by the Federal Maritime Commission to investigate challenges to the freight delivery system in the USA and possible violations of the Shipping Act. Commissioner … Read more here..

Demurrage, Detention & Managing Port Operations : A Conversation with FMC’s Commissioner Carl Bentzel

Executive Insights - Shipping and Freight Resource

The Federal Maritime Commission (FMC) has been thrust into the limelight recently due to various challenges faced by the trade and complaints laid by customers in terms of demurrage and detention … Read more here..

Ocean Carriers to receive Information Demand Orders from FMC – FF29

FMC - Fact Finding 29 - shipping and freight resource

On 17th of Feb 2021, based on Fact Finding 29, the FMC has announced that Commissioner Rebecca F. Dye will issue information demand orders to ocean carriers and marine terminal operators (MTOs) to determine if legal obligations related to detention and demurrage practices are being met.

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FMC questions definition of “merchant” in carrier bill of lading

My Opinion

This definition of the term “Merchant” has caught the attention of the Federal Maritime Commission (FMC) who is soliciting public comment as to

  1. How VOCCs apply the term “Merchant” in their bills of lading;
  2. Whether the definition, as applied, subjects third parties who are not in contractual privity with the carrier to joint or several liability; and
  3. Whether carriers have enforced the definition of merchant against third parties that have not consented to be bound by, or otherwise accept, the terms and conditions of the bill of lading.

I have shared my personal opinion on this.. Have a read and share yours..

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FMC’s Demurrage and Detention Charges investigation completed

shipping and freight news - shipping and freight resource

As you maybe aware, the Federal Maritime Commission initiated investigation, Fact Finding 28, in March 2018 to look into the question whether demurrage and detention charges in the shipping industry were justified..

Industry stakeholders raised a petition to address the question whether demurrage and detention fees charged to shippers for storing containers and using equipment beyond the carrier’s or terminal’s allowed “free time” were just and reasonable..

This question arose on the back of demurrage and detention charges levied by the port, terminal and shipping lines to the shippers especially in the key USA gateways of Los-Angeles/Long Beach on the West Coast and New York-New Jersey on the East Coast..

Here are the results of the investigation and its findings..

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