Commissioner asks for documentation as the FMC considers restricting ocean carriers’ ability to assess detention, demurrage and per diem fees.
Rebecca Dye, commissioner on the Federal Maritime Commission, on Wednesday called for full participation from customs brokers and freight forwarders on FMC’s ongoing Fact Finding 28 investigation into port demurrage, detention and free-time practices that started March 5.
“We need a full and robust competition by you, by shippers and by truckers in our fact-finding investigation,” Dye said during the National Customs Brokers & Forwarders Association of America (NCBFAA) 2018 Annual Conference in Rancho Mirage, Calif. “I need quantity as well as quality. I’d like to see documents, but regardless, keep it coming.”
Dye hasn’t made any decision regarding any recommendations pursuant to the investigation, and the FMC won’t do that until the review wraps up near the end of the year, she said.
The FMC’s investigation follows a petition filed in December 2016 by a coalition of shippers, associations and trucking organizations. The petition asked the FMC to adopt a policy to restrict ocean carriers’ ability to assess what the coalition deemed unreasonable detention, demurrage and per diem penalties, particularly when the cause of the infractions was beyond the control of cargo owners or their representatives.
The problem first came to a head during a period of intense congestion at U.S. West Coast ports in late 2014 and early 2015 and again during the aftermath of Hanjin Shipping’s bankruptcy in August 2016.
The FMC has said it expects to release an interim report of its findings and recommendations for Fact Finding 28 by Sept. 2. A final report will be issued to the commission for consideration, discussion and vote no later than Dec. 2.
Dye seeks forwarder, broker input in penalty probe
