Newsletters

The US Federal Maritime Commission (FMC) issued on 12 June a Supplemental Notice of Proposed Rulemaking (SNPRM) detailing how the FMC would implement the prohibition on ocean carriers unreasonably refusing available cargo space to shippers.

The proposed rulemaking updates the first NPRM which was issued in September 2022, and addresses comments raised during the public consultation. It addresses concerns from FIATA noting that since carriers control capacity, they might strategically alter capacity to unreasonable refuse to deal or negotiate. In this context, the FMC notes that “cancelled sailings or schedule changes are typically driven by decreased demand, port congestion or changes in service by a vessel-sharing partner. (…) Evidence that an ocean common carrier changes schedules for other purposes would result in those changes not being considered a legitimate transportation factor.”

• The SNPRM therefore addresses these issues and contains key changes from the initial NPRM, including:
• Adding language to establish the elements for a refusal of cargo space accommodations claim.
• Revising the definition of transportation factors to focus on vessel operation considerations.
• Revising the definition of the term “unreasonable” to include a general definition and a non-exhaustive list of unreasonable conduct scenarios.
• Clarifying that vessel space services are included in the definition of vessel space accommodations.
• Proposing a mandatory export policy documentation requirement as an alternative to the previously proposed voluntary export strategy.
• Removing the voluntary certification provision.

The proposed rulemaking is now under a new security procedure, when public and stakeholders provide comments in response to the proposals put forth in the SNPRM. The consultation period ends on 31^st July.

Source: FMC