WITH THE LIKELIHOOD of industrial disruption at US East Coast and Gulf of Mexico ports growing stronger the Federal Maritime Commission has warned container lines there will be no relaxation of regulations in the event of terminal closures.
With negotiations between the International Longshoremen’s Association and employer body USMX over new labour agreements apparently stalemated, 1 October looms as the beginning of widespread strike action. The Biden Government has so far declined to intervene.
Container lines have already announced a number of ‘disruption surcharges’ in anticipation of delays, although DCN believescarriers trading between ANZ and USEC have not yet received notification of any contingency plans from headquarters. Two services are involved, Maersk’s OC1 and CMA CGM/Marfret’s PAD/NASP, which between them call Philadelphia, New York, Savannah and occasionally Miami. PCTC operators Wallenius Wilhelmsen and Höegh Autoliners also use USEC terminals.
The FMC on Monday [23 September] advised that 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. Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.
“FMC regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. Pursuant to these requirements, the Commission will scrutinize any demurrage and detention charges assessed during terminal closures,” it said.
“Demurrage and detention invoicing must be lawful. The Commission’s rule on such invoicing, implementing provisions of the Ocean Shipping Reform Act of 2022, became effective on 28 May 2024. Invoices that do not include required information, or that are sent to the wrong entity, are not valid.”
The FMC said it is directing its Bureau of Enforcement, Investigations, and Compliance to investigate any reports of unlawful conduct of regulated entities: “The FMC will prosecute violators to the fullest extent of the law.”