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FMC denies petition to delay D & D rules as creating ‘ greater confusion ’

By Michael Angell

“ This has the potential for massive disruption and confusion .”

The US Federal Maritime Commission ( FMC ) has thwarted a move by ocean carriers to delay new rules on who they can bill for holding onto containers , saying a delay would cause “ greater confusion ” among shippers and truckers about who pays per diem fees .

In a decision published Sept . 25 , the FMC denied a petition by the Ocean Carrier Equipment Management

Association ( OCEMA ) to delay implementation of the agency ’ s detention and demurrage billing rulemaking that went into effect May 28 .

The rulemaking ’ s biggest effect was to limit ocean carriers in sending storage and late-fee bills for containers to the party who originally contracted for the ocean transportation , typically the cargo owner or , if agreed to , the cargo receiver . Truckers and other parties to a container transaction hailed the move as relieving them of the risk of receiving unexpected detention and demurrage bills .

However , OCEMA requested the FMC delay the May 28 effective date due to “ confusion ” over a correction the agency made to the rulemaking ’ s preamble soon before its effective date . OCEMA said the correction — which said

Rail industry split on how to best combat cargo theft

New equipment makes containers more difficult to breach than traditional locks , but it signals high-value cargo . Mario Tama / Getty Images

By Ari Ashe

Cargo theft is surging along US railways , leaving shippers worried about the safety of high-value goods in transit , and while heavy-duty lock makers claim their products deter theft , industry experts are divided on whether these new security devices make containers safer .

In the first half of 2024 , cargo thefts on trucks and rail jumped 49 % to 787 incidents , likely an undercount due to unreported crimes handled without local or federal authorities , according to cargo security firm Overhaul . Punishment remains relatively light , with thieves often released on bail within hours , according to the railroads .

“ We must come out and explain how this is a $ 50 billion problem to the US economy and back it up in a court of law , rather than dealing with each case on a per-incident or per-container basis ,” Will Johnson , a chief special agent with BNSF Railway Police , said during the Journal of Commerce Inland Distribution Conference 2024 ( Inland24 ).

Following the high-profile incidents in Los Angeles in 2022 , cargo theft has evolved into a more organized and coordinated threat . In January , Los Angeles police arrested

30 Journal of Commerce | October 21 , 2024 www . joc . com