13 August 2021

FMC QUESTIONS SHIPPING LINES ABOUT CONTAINER SURCHARGES

On 4 August, the US Federal Maritime Commission (FMC) launched an expedited inquiry into the timing and legal sufficiency of ocean carrier practices with respect to certain surcharges. Eight companies (CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line and Zim) have until today to provide the Commission’s Bureau of Enforcement (BoE) with details that confirm any surcharges were instituted properly and in accordance with legal and regulatory obligations.

This action comes after the agency has received several complaints from various parties regarding carriers that have introduced surcharges in a way that is unlawful. According to the FMC, ocean carriers are subject to specific requirements related to tariff changes or rate increases, including providing a 30-day notice to shippers and ensuring that published tariffs are clear and definite. In reviewing ocean carrier responses, the FMC will determine if surcharges were implemented following proper notice; if the purpose of the surcharge was clearly defined; if it is clear what event or condition triggers the surcharge; and is it clear what event or condition has been identified that would terminate the surcharge. The Commission can therefore initiate enforcement actions for improperly established tariffs.

In a statement, FMC Chairman Daniel Maffei noted that while “the COVID-related spike in demand for imports has pushed cargo rates to record highs, now we hear increasing reports of ocean carriers assessing new additional fees, such as ‘congestion surcharges,’ with little notice or explanation.” He added: “Far from being a sudden occurrence or isolated to a port or geographical area, congestion of the freight transportation system is everywhere and has been going on for many months. It seems to me that these factors would already have been included into the record high rates charged by the carriers.”

Source: FMC