All FMC Statutes & Regulations in Full Effect Following Baltimore Bridge Collapse
The U.S. Federal Maritime Commission (FMC) on Friday issued a notice reminding regulated entities that all statutes administered by the agency remain in effect while disruption to regular service at the Port of Baltimore is causing many shippers to adjust supply chain operations.Common carriers and marine terminal operators (MTOs) must continue to comply with all statutory and regulatory requirements governing their operations, the FMC said.Demurrage and detention fees must be reasonable.
Securing Our Ports: Where to Start
As dusk descends upon our nation's ports, casting shadows over the waterfront, another shadow looms in the digital landscape — the threat of cyber warfare. In an era where connectivity reigns supreme, our maritime infrastructure stands at a critical juncture, balancing vulnerability and resilience. The recent White House announcement of a Presidential Executive Order, and a hefty $20 billion in Inflation Reduction Act funding proposal to fortify our ports, underscores the gravity of the situation.It is a fact that at this time China has manufactured 80% of our nation’s ship-to-shore cranes…
MARAD and AAPA Working to Identify US Port Cargo Handling Needs
The U.S. Department of Transportation’s Maritime Administration (MARAD) and the American Association of Port Authorities (AAPA) announced they are surveying port authorities and marine terminal operators to identify national port cargo handling needs over the next five to 10 years.In addition, through interviews with ports and U.S. manufacturers, this effort will assess the interest and capability of American and foreign manufacturers to produce cargo handling equipment and other relevant port equipment in the U.S.
$73.77 Million Grant a Boost for Port NOLA & Inland Waterway Shipping
The Port of New Orleans (Port NOLA) will receive $73.77 million from the federal government to assist in building the Louisiana International Terminal (LIT) project, which will provide a gateway for cargo movement on U.S. inland waterways including the Mississippi River.The U.S. Department of Transportation has alerted Congress that it intends to award this funding through its MEGA Grant Program, which will support the first phase of the overall $1.8 billion project’s construction and is in addition to significant funding commitments from private industry partners and Port NOLA.
Ask What Your Government Can Do For Your Industry (A 2023 Retrospective)
John F. Kennedy’s famous locution, “Ask not what your country can do for you, but you can do for your country” remains the rallying call for civic action and public leadership. The message remains foundational to the success of the United States, particularly as we head into an election year that once again appears to be filled with divisiveness and vitriol. That said, before we flip the calendar, it is important to set JFK’s message aside for a moment and reflect upon what our political leadership in Washington…
Bringing the Capital Construction Fund Program Ashore
On May 5, 2023, the White House announced that the Environmental Protection Agency (EPA) was “taking the next step to invest $3 billion in its Clean Ports Program to fund zero-emission port equipment and technology and to help ports develop climate action plans to reduce air pollutants, improve air quality and public health in neighboring communities, and advance environmental justice.” That “next step” was the issuance of a Request for Information to inform EPA of the availability…
Capital Construction Funds: A New Opportunity For Vessel Financing On The Inland Waterways
Recent changes have opened up the Capital Construction Fund program to owners and operators of vessels on the U.S. inland waterways.Among the programs offered by the U.S. Department of Transportation through the Maritime Administration (MARAD) to promote the growth and modernization of the U.S. maritime industry, the Capital Construction Fund (CCF) program is one that has remained largely unavailable to the owners and operators of vessels on the inland waterways—until now.Created by the Merchant Marine Act of 1936…
US Probing Shipping Lines’ Anti-retaliation Compliance
The United States' Federal Maritime Commission said it is asking the top 20 shipping lines calling the U.S. to provide information on how they are complying with the new prohibitions on retaliation established by the Ocean Shipping Reform Act of 2022 (OSRA).The added protections against retaliation were created by Section 5 of OSRA and became effective immediately upon the law’s enactment in June. The prohibitions apply to common carriers, marine terminal operators (MTO), and…
Louisiana Announces $1.8 Billion Port Expansion Project
A public-private partnership between the state of Louisiana, the Port of New Orleans and two global maritime industry leaders will build a $1.8 billion container facility on the Lower Mississippi River, Gov. John Bel Edwards announced.The new Louisiana International Terminal (LIT) in St. Bernard Parish will be able to serve vessels of all sizes, increasing Louisiana’s import and export capacity and stimulating the creation of more than 17,000 new jobs statewide by 2050, Port NOLA estimates.New Jersey-based Ports America…
US Federal Maritime Commission Creates New Enforcement Structure
The United States' Federal Maritime Commission (FMC) on Friday announced it creating a new bureau to handle its enforcement and compliance activities. The agency, which is responsible for the regulation of oceanborne international transportation of the U.S., said it is consolidating its investigative and prosecution functions into a newly created Bureau of Enforcement, Investigations, and Compliance (BEIC) effective immediately.FMC Chairman Daniel B. Maffei said the reorganization…
Ocean Shipping Reform Act of 2022: Long Term Fixes, But What’s in It for the Short Term?
The Ocean Shipping Reform Act of 2022 (the Act) was signed by President Biden on Thursday, June 16, 2022. The long term fixes, which require Federal Maritime Commission rule-making, establishes additional requirements requiring the FMC to issue rules related to certain fee assessments, prohibited practices, and establishment of a shipping registry, and prohibited conduct for ocean carriers. It further authorizes the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.
FMC Reveals Plans to Aid Shippers and Improve Supply Chains
The U.S. Federal Maritime Commission (FMC) said it is establishing three new initiatives that will provide enhanced assistance to shippers, continue to improve legal and regulatory compliance of regulated entities, and focus on remedies to supply chain problems.At the direction of Chairman Daniel Maffei, the Commission will establish a new and permanent International Ocean Shipping Supply Chain Program, re-establish the Export Rapid Response Team, and take the steps necessary for carriers…
Maritime Antitrust Immunity in Crosshairs
While those in the Beltway continue to struggle to offer solutions to U.S. supply chain capacity issues, it seems apparent that policymakers have at least found their scapegoat for these issues in the form of the maritime industry. A specific talking point during the State of Union Address, a White House-endorsed agreement between the Federal Maritime Commission (FMC) and Department of Justice (DOJ), multiple pieces of legislation, and a vigorous hearing before the Senate Committee on Commerce…
FMC Addresses Detention and Demurrage, and Data Initiatives
The Federal Maritime Commission met in both open and closed session today to be briefed on efforts to address detention and demurrage, improve supply chain data transparency, and an ongoing investigation of Canadian government regulations that affect U.S. flag Great Lakes shipping. The Commission was also advised of the work its Area Representatives are doing at locations key to shipping around the Nation.Lucille Marvin, the Commission’s Managing Director is leading both the Vessel-Operating Common Carrier (VOCC) Audit Program and VOCC Audit Team…
FMC Examining How Data Can Improve Ocean Cargo Velocity
The U.S. Federal Maritime Commission (FMC) said it has set out to identify data constraints that impede the flow of ocean cargo and add to supply chain inefficiencies as severe bottlenecks continue to hamper global supply chains.Launched at the direction of FMC Chairman Daniel B. Maffei and spearheaded by Commissioner Carl W. Bentzel, the initiative seeks to to pinpoint how data can contribute to the long-term reliability of the domestic cargo delivery system. It will also aim to propose recommendations for common data standards used by the international shipping supply chain…
Feds Struggle to Address Supply Chain Capacity Issues
The Biden Administration’s struggles to alleviate supply chain capacity issues appear to be continuing with no end in sight. Part of the issue arises from the Administration’s limited focus on ports and another part arises from Congressional stalemates. Could the much-needed beltway leadership on these issues come in the form of the newly-tapped Maritime Administrator?Biden focuses on ports to address larger issuesThroughout October the President and his Supply Chain Disruptions…
Canada's CPPIB to Buy Ports America from Oaktree
Canada Pension Plan Investment Board (CPPIB) said on Wednesday it had agreed to buy Ports America, one of the largest marine terminal operators in the United States, from investment firm Oaktree Capital Management LP.While no valuation was given in the announcement statement, the deal values Ports America at over $4 billion, according to two sources familiar with the matter.The transaction comes amid heightened interest in logistics, with supply-chain disruption in focus as the…
Army Corps Awards Contract for Corpus Christi Channel Improvement
The U.S. Army Corps of Engineers (USACE) on Friday awarded a $139 million construction contract to Great Lakes Dredge & Dock Company, LLC. (GLDD), to complete the third phase of the landmark Port of Corpus Christi Ship Channel Improvement Project (CIP). The four-phase infrastructure project will increase the Corpus Christi Ship Channel depth from -47 feet Mean Lower Low Water (MLLW) to -54 feet MLLW and widen it to 530 feet, with an additional 400 feet of barge shelves.Phase 3 will extend west of the La Quinta Junction through the Chemical Turning Basin in the Port’s Inner Harbor.
FMC: Ocean Shipping Challenges Abound
Since early Spring 2020, American consumers have received a practical education in supply chain operations. One lesson is that it takes more than simply going online and clicking a “Buy Now” button for goods to show-up on our front porches. While the networks and systems that deliver commodities from around the globe might have been stretched as a result of COVID-19 related impacts, the men and women who move the freight have worked selflessly and tirelessly to meet consumer and manufacturing demand.Early on in the response to COVID-19…
Callan Marine Wins Corpus Christi Dredging Work
The U.S. Army Corps of Engineers (USACE) awarded a $97.9 million dredging contract on Wednesday to Callan Marine, Ltd., to complete the second phase of the four phase Corpus Christi Ship Channel Improvement Project. The project increases the channel depth from -47 feet Mean Lower Low Water (MLLW) to -54 feet MLLW, and widens the channel to 530 feet with an additional 400 feet of barge shelves.The newest and largest dredger in the Callen Marine fleet, the General MacArthur, is…
FMC Issues New Guidance on Detention and Demurrage
The U.S. Federal Maritime Commission has issued new guidance about how it will assess the reasonableness of detention and demurrage regulations and practices of ocean carriers and marine terminal operators (MTOs) under 46 U.S.C. 41102(c).The final rule, “Docket No. 19-05, Interpretive Rule on Demurrage and Detention under the Shipping Act”, will become effective upon its publication in the Federal Register.Under the new interpretive rule, the Commission will consider the extent…
Callan Marine’s New Dredge General MacArthur Enters Service
Callan Marine's new Jones Act cutterhead suction dredge (CSD) General MacArthur and its accompanying idler barge have entered service in Texas, heading to work on several projects before transiting to Corpus Christi for the second phase of the deepening and widening project.The newest and largest dredger in Callen Marine's fleet, the General MacArthur represents the next generation of dredging technology and crew comfort, said Maxie McGuire, President of Callan Marine.“The General MacArthur is a complete game-changer for the dredging industry,” McGuire said.
Supply Chain Shocks: Ocean Shipping Challenges Abound
Supply chain issues tied to liner shipping have been front page news throughout 2021; just about everyone agrees that there’s a problem. The underlying cause is right out of Economics 101: a surge in demand for moving containerized cargo, in the face of “inelastic” throughput capacity (which includes vessels and their landside interfaces to surface transportation, trucks and rail) that could not handle the swell, attributable to re-stocking of containerized cargo as economic activity recovered from the pandemic induced jolts.