General

U.S. regulation of shipping companies is being further tightened.

A few days ago, the US Federal Maritime Commission FMC issued a notice that it will investigate 8 ocean carrier surcharges-including congestion surcharges and other related surcharges related to the continuous surge in freight demand.

Eight ocean carriers were required to provide FMC's law enforcement bureau with detailed information about their congestion surcharges and any related costs. The expedited investigation requires carriers to provide evidence that their surcharges meet FMC regulatory requirements before August 13, 2021.

The eight shipping companies under review include CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line and Zim.

They are all determined to have recently implemented or announced congestion or related surcharges.

This action was taken in response to multiple complaints received by FMC, claiming that the ocean carrier improperly implemented new surcharges in the context of the current surge in fees.

In the United States, ocean carriers are required to comply with specific requirements related to tariff changes or rate increases, including providing 30-day notice to shippers and ensuring that the published tariffs are clear and clear.

FMC Chairman Dan Maffei said: "The surge in import demand related to COVID has pushed the freight rate to a record high." Evaluate new additional costs, such as the'congestion surcharge'."

When reviewing ocean carriers, FMC will determine whether the surcharge is implemented after proper notification; whether the purpose of the surcharge is clear; what event or condition triggers the surcharge; whether it is clear which events or conditions have been determined to terminate the surcharge. FMC can take enforcement actions against incorrectly set fees.

"The congestion is mainly due to ocean carriers and the large volume of traffic passing through the ports to meet record import demand.

The congestion of the freight system is far from sudden or isolated in a port or a certain geographical area, but ubiquitous and has been going on for several months.

In my opinion, these factors have been included in the record high freight rates charged by carriers. As the chairman, I would like to know the reason why the carrier charges additional fees. I strongly support the strict review of the FMC Enforcement Bureau, which aims to prevent any situation where these additional fees may not fully comply with laws or regulations. "FMC Chairman Dan Maffei concluded.

Previously, FMC issued a notice to audit the 9 largest container carriers to ensure that they comply with FMC's regulations on demurrage and port charges in the United States.

Recently, MCS Industries, a US manufacturing company, sued several large shipping companies to the Federal Maritime Commission (FMC), claiming that they were suspected of manipulating spot container freight prices and failed to fulfill their contractual obligations, demanding compensation of 600,000 US dollars, equivalent to nearly 4 million yuan.

MCS CEO Richard Master pointed out that shipping companies are currently charging shippers with additional fees for delays beyond their control. He stated that these charges must be stopped because they will eventually be borne by consumers in the form of consumer price inflation.

This complaint may have made a good start. Only when the consumer's momentum is strong enough, the regulator will look at it.

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