FMC Initiates Expedited Inquiry Into Ocean Carrier Surcharges
August 5, 2021
On August 4, 2021, the Federal Maritime Commission (FMC) opened an expedited inquiry into ocean carrier surcharges. Eight ocean carriers (CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line, and Zim) have been asked to provide the FMC’s Bureau of Enforcement (BOE) with details about congestion or related surcharges that they have implemented or announced. The carriers have until next Friday to provide the BOE with evidence showing that any surcharges were instituted properly and in line with FMC’s regulatory requirements.
Based on the responses of the carriers, the FMC will determine if the surcharges were implemented following proper notice; if the purpose of the surcharge was clearly defined; and if it is clear what event or condition triggers and/or terminates the surcharge. If the FMC finds that a tariff was improperly established, it can take enforcement action.
This expedited inquiry is in addition to the FMC’s ongoing Fact-Finding Investigation No. 29 (FF No. 29), which began last year in response to the disruptive effects COVID-19 has had on trade and for the purpose of identifying solutions for some of the issues. FF No. 29 was later expanded to include ocean carrier practices regarding demurrage and detention.
If you have any questions regarding this or any transportation related matters, please contact a member of the GKG Law team.