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Ocean Common Carrier News

18 Dec 2023

Ask What Your Government Can Do For Your Industry (A 2023 Retrospective)

© rrodrickbeiler / Adobe Stock

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…

09 Jun 2022

Biden Urges Congress to 'Crack Down' on Shipping

(Official White House Photo by Adam Schultz)

U.S. President Joe Biden on Thursday urged Congress to “crack down” on ocean carriers that have raised shipping prices significantly and helped drive up the cost of goods in the country.“One of the reasons prices have gone up is because a handful of companies who control the market have raised shipping prices by as much as 1,000%,” Biden said in Twitter post. “It’s outrageous—and I’m calling on Congress to crack down on them.”“We’ve got to change this. I asked the Congress to pass a piece of legislation to remedy this. Democrats and Republicans voted for it.

01 Apr 2022

US Senate Approves Bill to Ease Export Shipping Backlogs

© jdoms / Adobe Stock

The U.S. Senate on Thursday unanimously passed a bill to improve oversight of ocean shipping, a step supporters say will help ease export backlogs.The Ocean Shipping Reform Act, led by Senators John Thune and Amy Klobuchar, would strengthen the investigatory authority of the Federal Maritime Commission (FMC), the U.S. agency that oversees ocean shipping, and boost transparency of industry practices.Senate Majority Leader Chuck Schumer said the legislation "will reduce costs for the American people…

04 Jun 2021

The Disappearance of the Service Contract in Ocean Shipping and Resurgence of Ocean Tramp Practices

© Spiroview / Adobe Stock

The below e-mail recently received by the author paints the picture we are seeing a thousand fold in the current ocean shipping marketplace in the inbound/outbound Asia trade lanes which underscores the serious disconnect currently between ocean common carriers and shippers in these U.S trade lanes:“Carlos:We are seeing examples where there was a rate agreed upon and the cargo was tendered to the carrier. In many cases the freight gets rolled and sits at the original terminal for an additional 1-2-3 weeks.

06 May 2020

Will FMC's New Demurrage & Detention Rules Aid NVOCCs?

© Mihai Andritoiu / Adobe Stock

On April 28, 2020, the Federal Maritime Commission (FMC) released the long-awaited interpretive rules in Docket No. 19-05 relating to how ocean common carriers may lawfully apply demurrage and detention charges to exporters, importers and ocean transportation intermediaries, including Customs brokers in certain circumstances and still be compliant with the “reasonableness” requirement of 46 U.S.C § 41102(c). The analyses and guidance in the interpretive rules have been in high…

14 Oct 2014

FMC Recovers $503,000 in Penalties

Chairman Mario Cordero announced that the Federal Maritime Commission has completed compromise agreements recovering a total of $503,000 in civil penalties. The agreements were reached with five non-vessel-operating common carriers (NVOCCs), two unlicensed transport businesses and one vessel-operating common carrier. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Miami and Los Angeles, and Washington D.C. headquarters staff.

08 Nov 2013

Port of LA to Launch Container Ship Incentive Scheme

Photo courtesy of Port of Los Angeles

The Los Angeles Board of Harbor Commissioners has approved a new incentive program to reward shipping lines that bring new container business to the Port of Los Angeles in 2014. The Ocean Common Carrier Incentive Program adds to the advantages of moving cargo through America’s No. 1 container port at a time when the fundamentals of shipping are changing and international carriers are rethinking traditional business practices. Under the incentive program, an ocean carrier will…

11 Mar 2010

Ocean Carriers, Others Pay Penalties

The Federal Maritime Commission announced four compromise agreements in which an ocean carrier and intermediaries agreed to pay a total of $625,000 in civil penalties for alleged violations of the Shipping Act of 1984. The agreements were reached with a vessel-operating common carrier (VOCC) and three ocean transportation intermediaries (OTIs). The agreed penalties resulted from investigations conducted by the Commission's Area Representatives in Los Angeles, Seattle, South Florida, and Washington, D.C. Staff attorneys with the Bureau of Enforcement negotiated the compromise agreements. The parties settled and paid penalties, but did not admit to violations of the Act or the Commission's regulations. Federal Maritime Commission Chairman Richard A. Lidinsky, Jr.

10 Jul 2002

Ocean Common Carrier Status of Shanghai Hai Hua Shipping Company

The Federal Maritime Commission (FMC) issued a notice stating that it has served an Order of Investigation and Hearing, a Request for Additional Information, and an Order to Show Cause on Shanghai Hai Hua Shipping Company and Sinotrans Container Lines Co. Ltd. The two companies filed a cross space charter and sailing agreement, but there are indications that the former company does not currently operate vessels in the trade for which it has published a tariff. The effective date of the agreement has been delayed while the matter is investigated. Source: HK Law

28 Mar 2005

Creel Addresses Transportation Management Conference

The following are remards by the Honorable Harold J. Creel, Jr., Federal Maritime Commisioner, as prepared for presentation at the International Transportation Management Conference in Houston. It is an honor and a pleasure to be addressing this distinguished conference. As Barry indicated in his opening remarks, this panel will be addressing the following hot topics in ocean transportation: globalization; deregulation; terrorism; new security requirements; antitrust immunity; and NVOCC confidential contracts. I would like to focus my remarks, from a government regulator's perspective, on the latter two topics. I will, of course, attempt to answer any questions you may have on anything that comes up.

11 Sep 2002

FMC Interim Order re HASCO

The Federal Maritime Commission (FMC) issued an interim order in its proceeding relating to Shanghai Hai Hua Shipping Co., Inc. (HASCO). The primary issue is whether HASCO is an ocean common carrier in the U.S.-foreign trade. In this interim order, the FMC denied HASCO's request for expedited approval of its Agreement; denied HASCO's motion to strike the Bureau of Enforcement's response; and denied the Bureau's petition for injunctive relief. Source: HK Law

14 Jan 2003

FMC Issues Order on Status of Hai Hua Shipping

The U.S. Federal Maritime Commission (FMC) issued an Order with regard to various petitions and requests filed by Hai Hua Shipping Co., Ltd. (HASCO). The company was served with an Order to Show Cause as part of an investigation into whether it is an ocean common carrier under the Shipping Act of 1984. The company's petition to file a reply to the Bureau of Enforcement response was granted. The company's petition for a limited hearing of an FMC employee was denied. The company's request for oral argument was granted. Source: HK Law

11 Feb 2003

FMC Meeting Canceled

The Federal Maritime Commission (FMC) issued a Notice

05 Jun 2003

FMC Publishes List of Controlled Carriers

The Federal Maritime Commission is publishing an updated list of controlled carriers. Section 3(8) of the Shipping Act of 1984 (“Shipping Act”), 46 U.S.C. app. (B) that government has the right to appoint or disapprove the appointment of a majority of the directors, the chief operating officer, or the chief executive officer of the carrier. As required by the Shipping Act, controlled carriers are subject to special oversight by the Commission. Section 9(a) of the Shipping Act, 46 U.S.C. app. No controlled carrier subject to this section may maintain rates or charges in its tariffs or service contracts, or charge or assess rates, that are below a level that is just and reasonable…