The U.S. Federal Maritime Commission (FMC) will hold a public hearing related to the Coalition for Fair Port Practices petition at its Washington headquarters on Jan. 16-17.
The U.S. Federal Maritime Commission (FMC) will hold a public hearing related to the Coalition for Fair Port Practices petition (P4-16) at its Washington headquarters on Jan. 16-17, the commission said in a statement Thursday.
During the two-day hearing, the FMC expects to receive testimony from the maritime industry regard issues raised in the petition, including detention, demurrage, and per diem charges.
“I look forward to the opportunity to explore with the witnesses the issues raised by the petition,” said FMC Acting Chairman Michael A. Khouri.
“One question is whether the commission can craft a general rule of universal nationwide applicability on detention, demurrage, and per diem provisions given the wide variety of commercial terms and conditions that are incorporated into VOCC service contracts and in MTO (marine terminal operator) tariffs nationwide to address various events and circumstances,” he added. “A further consideration to be addressed is the various and disparate operating protocols used at the 250 plus marine terminal operators currently registered at the commission.”
On Sept. 20, the commission voted to hold the hearings after receiving staff’s analysis of the 115 public comments received in this matter. “Both the volume of correspondence and variety of issues raised by comment filers demonstrated the complexity of the issue being raised in the petition and the need to not only gain more information, but to have the opportunity to engage stakeholders directly to better understand their perspectives,” the FMC said.
Those individuals interested in presenting testimony at the hearings must send their request to the commission no later than Friday, Dec. 8. All witnesses will testify by invitation.
In December 2016, the Coalition for Fair Port Practices, which comprises more than 20 trade associations, filed a petition with the FMC which described a practice by carriers and terminals of applying unfair demurrage and detention charges against shippers when, through no fault of their own, cannot retrieve their containers prior to the “free time” expiration. This has occurred during times of port congestion, labor slowdowns due to contentious dockworker contract negotiations, infrastructure meltdowns, and inclement weather, the coalition explained.
“We are pleased to see the FMC finally take action on the petition seeking policy guidance on the issue of detention and demurrage,” Jon Gold, vice president of supply chain and customs policy for the National Retail Federation and a coalition member, told American Shipper. “We continue to hear from retailers and other industries who continued to be impacted by this issue. We strongly believe the agency has the authority to work with all of the parties to develop a policy that will work for the benefit of the entire supply chain.”
FMC sets hearing dates for port practices petition
