The supply chain challenges America faces demonstrate that a dynamic and active Federal Maritime Commission (FMC) is vital to ensuring competitiveness and reliability in the ocean freight system.
Since the FMC issued its interpretive rule on detention and demurrage (D&D) in 2020, we have launched an investigation into pandemic--related D&D charges, container return policies, and export barriers; opened cases where unfair practices may have occurred; initiated an audit of the major carriers for compliance with the rule; and issued “best practices.” The commission is also considering supplementing the 2020 rule through additional rulemakings.
In summer 2021, the agency launched an enforcement investigation into congestion surcharges and fees implemented or announced by eight ocean carriers. I will continue to push for action on any charge that is unjustified or a crafty way of hiding an increase in the freight rate.
We also increased monitoring requirements for the ocean carrier alliances last year. And while ensuring the FMC’s status as a bipartisan, independent regulatory agency, we signed a Memorandum of Understanding with the Justice Department. We are committed to challenging any anticompetitive action that violates the law.
Looking forward to 2022, we now have a congressionally authorized National Shipper Advisory Committee to provide direct input about ways to support US shippers. We are examining ways to incentivize better data and information flow in the hope of increasing capacity through digital infrastructure in addition to physical infrastructure. And we are enhancing the FMC’s Consumer Affairs and Dispute Resolution Services Office and Bureau of Enforcement, including creating a new export advocate position.
I am under no illusion that the need for action in 2022 will be any less than it was in 2021. The FMC is ready to go.