This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
As the new decade begins, the IMO’s low-sulfur fuel requirement will be a significant change for all stakeholders in the ocean container supply chain. Container lines have communicated their intention to pass the new costs on to shippers. The Federal Maritime Commission will monitor new fuel surcharges to assure compliance with the Shipping Act.
Misdeclaration of hazardous cargos has become a serious issue affecting life and safety at sea. Ship fires caused by these cargoes are occurring with increasing frequency. The FMC has the ability and resources to determine the shippers and/or non-vessel-operating common carriers responsible for placing such misdeclared containers aboard vessels. The commission has held discussions with the Coast Guard on this matter. Further guidance regarding FMC enforcement policies on this issue will be published in 2020.
More broadly, the commission will be increasing its work to assure the public’s confidence in doing business with NVOCCs and ocean freight forwarders. I would like to make progress in arriving at a common definition of “co-loading,” so that other government agencies, shippers, NVOCCs, freight forwarders, and the commission are using that term in the same context in enforcement matters. Following the successful implementation of new license renewal procedures for ocean transportation intermediaries, our agency will be more stringent in examining whether forwarders and NVOCCs are meeting their reporting requirements and will consider enforcement action when appropriate.
A proposed interpretive rule providing guidance about how the FMC might assess the reasonableness of detention and demurrage practices under the Shipping Act will be before the commission in the coming months.
Finally, the commission will welcome its newest member, Carl Bentzel, who was confirmed by the US Senate in November. Each of us looks forward to working with Carl as we assure competition and integrity for America’s ocean supply chain.