FMC to Demand Information on Detention & Demurrage from Ocean Carriers & Terminal Operators

FMC to Demand Information on Detention & Demurrage from Ocean Carriers & Terminal Operators

February 17 Federal Maritime Commission (FMC) Member Rebecca Dye announced that information demand orders would be issued to ocean carriers and marine terminal operators (MTOs) to determine if legal obligations related to detention and demurrage practices are being met.

The orders were issued under the FMC Fact-Finding 29, “International Ocean Transportation Supply Chain Engagement,” and are targeting ocean carriers operating in an alliance and calling the Port of Los Angeles, the Port of Long Beach, or the Port of New York & New Jersey. Marine terminal operators at those ports will also be subject to information demands.

The demand orders will also require carriers and MTOs to provide information on their policies and practices related to container returns and container availability for exporters.

In November, IWLA joined a coalition of stakeholders, spearheaded by the Harbor Trucking Association, and sent a letter to FMC and Congress calling for action to suspend unreasonable detention and demurrage charges being assessed at the targeted ports. Increasingly congested ports and a shortage of containers and labor during the pandemic have resulted in ocean carriers and terminal operators still levying substantial charges on U.S. supply chain partners.

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