The incoming 46th president of the United States of America will come to office at a pivotal moment in world history. With a global economy ravaged by the impacts of the COVID-19 pandemic, an unstable supply chain, and the pandemic continuing to sweep the globe, it will be ever more crucial that his messages of unity and hope are also reflected in the US’s trade policies. This includes unifying all actors across the transportation and logistics sectors to ensure well-functioning and fluid supply chains that can continue to move goods, including essential goods, in a reliable manner to where they are most needed. By doing so, the US will have the opportunity to set a leading example on the world’s stage for economies all around the globe.
The US Federal Maritime Commission (FMC) has in recent years taken important steps toward ensuring a more level playing field for all actors in the supply chain. Its comprehensive six-year investigation into demurrage and detention practices, resulting in its final rule, Docket No. 19-05, Interpretive Rule on Demurrage and Detention under the Shipping Act, was a welcome development for bringing clarity on the reasonableness of such charges to ensure they are proportionate to their intended purposes of incentivizing orderly movement through ports and terminals. In addition, FIATA has welcomed the FMC’s inquiry into carriers’ definition and application of “merchant” clauses in their bills of lading, which will be important to determining the correctness and fairness of liability allocation.
As a leading global economy, the US’s trade policies have a critical global influence. The FMC’s work and findings are valuable and relevant not only for the US, but for the whole world. For example, FIATA has already called for governments worldwide to follow the FMC’s example in increasing scrutiny of demurrage and detention practices. It is hoped that the next US administration will make this a key priority when President-elect Biden takes office in January 2021. This will be critical to ensuring the much-needed economic recovery in these difficult times.