FMC warns: During the strike at the eastern port of the United States, illegal charging of additional fees will be prosecuted
On September 23, the Federal Maritime Commission (FMC) issued a notice reminding regulated entities that all rules and regulations administered by the FMC remain in effect during a potential strike at the U.S. East and Gulf Ports. The FMC is directing its Enforcement, Investigations and Compliance Bureau to investigate any reports of illegal conduct by regulated entities.
The FMC warned that it would investigate all information about illegal practices by shipping companies. "The FMC will prosecute violators to the fullest extent of the law."
Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) have been deadlocked for months. The ILA is adamant, saying that once the collective bargaining agreement with USMX expires on September 30, they will immediately strike from October 1.
In short, if the Eastern and Gulf ports are shut down next week due to a strike, shipping lines should think twice before imposing demurrage and demurrage charges on containers. The FMC reminded shipping lines and shippers that regulations on charging for delayed cargoes have been tightened and told shippers where to go to complain.
Shipping analyst Lars Jensen sees FMC's announcement as a reminder to shipping companies. "The FMC basically just said you have to follow the law: remember, there are new rules, and those rules apply," he said.
At the same time, the FMC reminded shippers that they have the right to complain to U.S. authorities if they believe shipping companies have violated the rules. "FMC reminds shippers where to go to complain."
Lars Jensen believes that shipping companies are likely to introduce surcharges as soon as possible, even if they face the risk of complaints.
On September 23, Maersk announced a local port interruption surcharge of US $1,500 /TEU, US $3,000 /FEU, and US $3,780 for 45-foot containers for all shipments to and from the US East and US Gulf ports, effective October 21, 2024.
Maersk said the "surcharge is necessary to cover the higher operating costs incurred as a result of the disruption and to ensure the sustainability of the business and ongoing support for customer supply chain needs."
The FMC warned that it would investigate all information about illegal practices by shipping companies. "The FMC will prosecute violators to the fullest extent of the law."
Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) have been deadlocked for months. The ILA is adamant, saying that once the collective bargaining agreement with USMX expires on September 30, they will immediately strike from October 1.
In short, if the Eastern and Gulf ports are shut down next week due to a strike, shipping lines should think twice before imposing demurrage and demurrage charges on containers. The FMC reminded shipping lines and shippers that regulations on charging for delayed cargoes have been tightened and told shippers where to go to complain.
Shipping analyst Lars Jensen sees FMC's announcement as a reminder to shipping companies. "The FMC basically just said you have to follow the law: remember, there are new rules, and those rules apply," he said.
At the same time, the FMC reminded shippers that they have the right to complain to U.S. authorities if they believe shipping companies have violated the rules. "FMC reminds shippers where to go to complain."
Lars Jensen believes that shipping companies are likely to introduce surcharges as soon as possible, even if they face the risk of complaints.
On September 23, Maersk announced a local port interruption surcharge of US $1,500 /TEU, US $3,000 /FEU, and US $3,780 for 45-foot containers for all shipments to and from the US East and US Gulf ports, effective October 21, 2024.
Maersk said the "surcharge is necessary to cover the higher operating costs incurred as a result of the disruption and to ensure the sustainability of the business and ongoing support for customer supply chain needs."
