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REGULATORY ALERT - US - CONGRESSIONAL AND EXECUTIVE ACTIVITIES


FMC PRIORITISING ENFORCEMENT EFFORTS ON SHIPPING CHARGES

15 Nov 2024
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 * HKTDC Research

The U.S. Federal Maritime Commission reports that the director of its Bureau of
Enforcement, Investigations and Compliance said recently that FMC enforcement
personnel are subpoenaing information and deposing witnesses as part of major
investigations examining potentially unlawful behaviour by regulated entities.
BEIC has prioritised investigations of possible wrongdoing by common carriers or
marine terminal operators where the alleged misconduct negatively impacts the
industry or causes market distortion. The BEIC director noted that such
investigations are complex undertakings and that the bureau is developing
policies, procedures and additional capabilities necessary to successfully
examine and prosecute these cases.

According to the FMC, BEIC is also prioritising reviewing any allegations of
misconduct involving the recent work stoppage at ports on the U.S. East and Gulf
coasts with the intent of prosecuting instances of unlawful conduct. The FMC has
emphasised that retaliation by ocean carriers and MTOs against shippers, ocean
transportation intermediaries or motor carriers for questioning carrier or MTO
invoicing, surcharges or other practices, or for making a complaint and/or
providing information to the FMC, is a serious violation that carries
significant penalties.

Moreover, the FMC anticipates initiating in 2025 a rulemaking establishing a
permanent procedure for charge complaints, which provide a simplified way to
dispute charges assessed by common carriers (e.g., demurrage and detention fees)
that may not comply with the Ocean Shipping Reform Act of 2022. Filing a charge
complaint initiates an informal process of investigation by BEIC but may result
in a recommendation to issue a show cause order, which could initiate a formal
proceeding. The FMC notes that many charge complaints are settled during the
investigatory phase of the process and that as of 30 September common carriers
had voluntarily waived or refunded US$3.3 million in charges under this process
over the past two years.



RELATED TOPICS

Logistics & Transport ServicesUSANorth AmericaEXPORTIMPORT


In focus: Australia (2022 data)


Population: 26.2 mn
GDP: US$1,701.9 bn
GDP per capita: US$65,526
Australian companies in HK: 159

Detail

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