Government

International | Washington | Customs | Security | Regulation

FMC continues clawing back per diem charges for shippers

By Michael Angell

Ocean carriers have waived or refunded about $ 3.2 million in disputed per diem charges levied against shippers since the start of the COVID-19 pandemic amid heightened regulatory monitoring , the US Federal Maritime Commission ( FMC ) said in late October .

The figure , though a small fraction of the overall charges collected by carriers , is up from the $ 1.7 million in refunds and waivers the FMC had helped secure by this time last year .

The $ 3.2 million doesn ’ t include any amounts settled privately between shippers and carriers , nor does it include settlements that were already part of a formal enforcement hearing .

The FMC has faced a surge in its caseload since streamlining the process for shippers to file a so-called charge complaint against ocean carriers . The agency said it will initiate a rulemaking in 2025 for a permanent procedure for charge complaints .

The funds clawed back through Sept . 30 are linked to detention and demurrage charged during a period when many shippers found their containers inaccessible or faced a lack of drayage and warehouse capacity . The FMC said that the nine largest ocean carriers collected $ 13.8 billion in detention and demurrage fees from shippers between April 2020 and September 2023 .

More refunds and waivers for shippers could be in the offing . The FMC , during an open meeting on Oct . 23 , said its Bureau of Enforcement , Investigations , and Compliance ( BEIC ) is “ subpoenaing information and deposing witnesses as part of major investigations examining potentially unlawful behavior by regulated entities .” It added that the priority is investigating ocean carriers and marine terminal operators “ where the alleged misconduct negatively impacts the industry or causes market distortion .”

On more recent events , the FMC said the BEIC is “ reviewing any allegations of misconduct involving the recent work stoppage at ports on the US East and Gulf coasts with the intent of prosecuting instances of unlawful conduct .” The FMC did not elaborate on the nature of the possible allegations linked to the brief strike .

The Agriculture Transportation Coalition ( AgTC ) said in a statement Oct . 23 the BEIC ’ s enforcement actions are having a tangible effect on billing practices as both carriers and terminals avoid running afoul of the Ocean Shipping Reform Act of 2022 ( OSRA-22 ).

“ Stepped-up enforcement and the commission ’ s proactive ... approach is ... encouraging carriers and terminals ... to rescind conduct that may violate OSRA .”

“ The combination of stepped-up enforcement and the commission ’ s proactive formal and informal approach is showing signs of encouraging carriers and terminals , on their own , to rescind conduct that may violate OSRA ,” AgTC said . “ Recent examples include carriers rescinding unreasonable plans to impose force majeure , surcharges and / or rate increases during the recent / current longshore contract negotiations .”

email : michael . angell @ spglobal . com

Shippers have reclaimed more than $ 3 million in container storage and usage fees since 2020 . Shutterstock . com

30 Journal of Commerce | November 18 , 2024 www . joc . com