The Federal Maritime Commission recently reminded carriers about the requirements they must meet to maintain their status before the commission as a vessel-operating common carrier (VOCC), warning they may face penalties if they fail to meet those requirements. The FMC said carriers publishing automated tariffs as VOCCs must “operate at least one vessel in common carriage in the foreign commerce of the United States to maintain their status.” Companies offering common carriage but that don’t operate at least one vessel are considered non-vessel-operating common carriers, the commission said, and must follow the licensing, registration and financial responsibility requirements for NVOCCs. “Operating as an NVOCC and failing to meet all relevant requirements may result in a civil monetary penalty.”
HMM Co. Ltd., formerly known as Hyundai Merchant Marine Co. Ltd., has charged unfair demurrage and detention fees for inland transportation since 2020, Samsung Electronics America (SEA) alleged in a complaint filed with the Federal Maritime Commission on May 30.
The Federal Maritime Commission is seeking public comments on a new vessel sharing agreement between major ocean carriers Maersk and Hapag Lloyd. The Gemini Cooperation Agreement would allow the carriers to “globally coordinate their vessel operations,” FMC said, including by sharing vessels on trade routes between the U.S., Asia, the Middle East and Europe. Public comments are due June 18. If the FMC takes no action, the agreement will take effect July 15.
The Federal Maritime Commission has approved a confidential settlement between Access One Transport and Zim Integrated Shipping Services and dismissed Access One’s complaint against Zim. The settlement, approved June 4, comes after Access One accused Zim in April of charging unfair detention and unfair chassis, storage, stop-off and redelivery fees for containers that couldn't be returned due to lack of appointments or terminal closures out of its control (see 2404230050).
The Federal Maritime Commission is hoping to release a rule this fall that would create a registry for national shipping exchanges, FMC Chair Daniel Maffei said during a May 29 event hosted by the Consumer Technology Association. The Ocean Shipping Reform Act of 2022 gave the FMC until June 2025 to craft the rule, and lawmakers have called on the FMC to provide a counterbalance to China's Shanghai Shipping Exchange, which they said is poised to become a monopoly without more competition (see 2402020060).
A Flexport spokesperson this week disputed U.S.-based Giti Tire's allegations that Flexport violated U.S. shipping laws (see 2405200019), saying the logistics company tried "everything" to resolve the dispute, but Giti "refused to pay their obligations."
The Federal Maritime Commission's recently issued final rule on detention and demurrage billing requirements was "silent" on some of the recommendations the National Shipping Advisory Committee has offered in recent months (see 2403070061), said Rich Roche, NSAC member and senior vice president at Mohawk Global.
The Federal Maritime Commission is investigating conditions imposed by the Canadian government that "may adversely affect" the operation of U.S. carriers in the U.S.-Canada Great Lakes trade, the FMC said. The new Canadian regulations, which are set to take effect in September, would require U.S. vessels to install new ballast water management systems, the FMC said in a notice released May 21.
Flexport violated U.S. shipping laws by charging unfair detention and demurrage fees and millions of dollars in other "accessorial charges" at unreasonable rates, U.S.-based Giti Tire said in a complaint filed with the Federal Maritime Commission May 16. It alleged Flexport's invoices lacked required information, were "excessive and unreasonable" and duplicated charges also invoiced to another party, leading to $12.7 million in damages.
The British Columbia Maritime Employers Association filed a complaint with the Canada Industrial Relations Board against the International Longshore and Warehouse Union Ship and Dock Foremen Local 514 on May 10 for the labor union's "conduct" and its "intransigence at the bargaining table," the association said.