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CMA CGM settles with FMC over billing action
CMA CGM will pay a $ 1.9 million fine to the US Federal Maritime Commission ( FMC ) after the agency ’ s investigators found the ocean carrier improperly billed a third party . Along with the cash penalty , the agency received explicit compliance from the ocean carrier about following new rules on who pays detention and demurrage charges on containers . The FMC said in a statement May 29 that CMA CGM agreed to the penalty to settle an investigation brought by the agency ’ s enforcement bureau . Investigators found the carrier “ overbroadly defined and applied ” the merchant clause in its bill of lading to a third party “ who should not have been billed ,” the agency said . The FMC said that CMA CGM is amending its US tariff to ensure its merchant clause complies with the US Shipping Act ’ s definition of someone with a “ beneficial interest ” in the cargo . Along with the FMC ’ s civil penalty and additional undisclosed restitution paid to the third party , the FMC said the settlement includes CMA CGM making a “ stated commitment to comply with the agency ’ s ‘ Demurrage and Detention Billing Rule ’” that went into effect as of May 28 . The new regulation is the last piece of the Ocean Shipping Reform Act of 2022 ( OSRA-22 ), which aimed to put more regulatory teeth into monitoring detention and demurrage billing practices . Between 2020 and 2022 , ocean carriers collected $ 15.8 billion in detention and demurrage charges from shippers . The rules are aimed largely at protecting port truckers and drayage providers , who could be unexpectedly hit with detention and demurrage charges when picking up a container at a marine terminal . But other parties , including customs brokers , have also been hit with such bills . The FMC now requires that a demurrage and detention invoice only be sent to the shipper who contracted for the ocean transportation or the consignee , but not both . The invoices must be sent within 30 days of the last charge , and billing parties must allow a 30-day period for any disputes to be submitted . Invoices must also contain 13 specific data elements outlined in OSRA-22 .
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Busy ‘ slow season ’ for air cargo
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Air cargo demand and rate levels out of Asia to the US and Europe remain unseasonably high despite belly capacity being injected into markets as carriers prepare for the peak northern hemisphere summer travel period . The unexpected strength in demand mirrors that of the Asia – Europe and trans-Pacific ocean trade lanes ; container shipping is seeing an early peak season while e-commerce continues to fill all available air freight capacity out of Asia . Global air freight demand “ started Q2 with a solid 11.1 % increase ,” Willie Walsh , director general of the International Air Transport Association ( IATA ) said in a statement late-May . “ While many economic uncertainties remain , it appears that the roots of air cargo ’ s strong performance are deepening .” Late spring is typically a slower period for air cargo on the main east – west trade lanes out of Asia . This year , the sustained demand for e-commerce in the US and Europe continues to push up volumes and , in turn , rates , and there is an expectation in the industry that the volume out of Asia over the summer will compensate for much of the incoming capacity and keep rates elevated . Trade between South Asia and the Middle East and Europe is expected to see continued strong air freight demand through the end of the year , having been significantly affected by the diversion of container ships around southern Africa . Monthly IATA data for May is not yet available , but the association ’ s April figures show capacity at Asia – Pacific airlines increasing 8 % compared with the same month last year against an overall demand increase of 14 %. What ’ s more , Cathay Pacific said there is no sign of e-commerce demand slowing , especially on the trans-Pacific , and the airline was bullish about air freight prospects through the summer .
Baltimore rebounds , channel to reopen soon
The Port of Baltimore ’ s Seagirt Marine terminal is largely clear of long-dwelling containers as big ship services start to return following the removal of the Dali and the structural remains of the collapsed Francis Scott Key Bridge from the port ’ s main shipping channel . Volumes are expected to build through summer . Evergreen Marine is the latest ocean carrier to recently start accepting import bookings for Baltimore on its neo-Panamax Asia – US East Coast Service ( AUE ), according to shippers . While Evergreen brought one AUE ship into Baltimore in May and another mid-June , the port will only be a regular weekly call on the AUE starting by mid-July , according to Evergreen ’ s schedule . Evergreen ’ s return follows late-May notices from Maersk , Mediterranean Shipping Co ., Hapag-Lloyd and Zim Integrated Shipping Services that they are also accepting Baltimore bookings on trans-Pacific , trans- Atlantic and north – south services . “ Anything we can get to Baltimore , we will ,” a retail products importer told the Journal of Commerce . Ahead of more volumes coming into Baltimore , Seagirt is largely clear of empty containers or lingering export containers that could impede import handling , according to a source familiar with
6 Journal of Commerce | June 17 , 2024 www . joc . com