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Ocean Transportation Intermediaries News

15 Dec 2022

US Probing Shipping Lines’ Anti-retaliation Compliance

© Danita Delimont / Adobe Stock

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…

12 Oct 2020

FMC: Ocean Shipping Challenges Abound

“The mis-declaration of hazardous materials is an area where we work in cooperation with Customs and Border Protection and the U.S. Coast Guard. The FMC’s Shipping Act concern is the market fraud when a shipper declares to a common carrier in its shipping documents that the tendered cargo is some innocuous variety, when the cargo is properly categorized as hazardous; thereby receiving a lower freight rate.”
– Michael A. Khouri, Chairman, Federal Maritime Commission (FMC)

© Pawinee/AdobeStock

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…

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…

29 Apr 2020

FMC Issues New Guidance on Detention and Demurrage

© Mariusz / Adobe Stock

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…

07 Apr 2020

COVID-19 Impacts on Demurrage and Detention

© Sandra / Adobe Stock

What might not be so obvious in this COVID-19 environment, which we have grown to associate with shortages, is that counterintuitively there are issues beginning to appear dealing with the opposite situation. The Journal of Commerce has reported that “[t]he container shipping industry is marshaling a response to signs of a building import backlog as some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential…

01 Apr 2020

FMC Investigating COVID-19's Suply Chain Impacts

© Mihai Andritoiu / Adobe Stock

The Federal Maritime Commission issued an order authorizing Commissioner Rebecca Dye to identify operational solutions to cargo delivery system challenges related to Coronavirus-19.The Order notes that “Recent global events have only highlighted the economic urgency of responsive port and terminal operations to the effectiveness of the United States international freight delivery system. Given the Commission’s mandate to ensure an efficient and economic transportation system for ocean commerce…

15 Jan 2020

The Good, the Bad and the Undeniably Ugly

© SunnyS / Adobe Stock

The end of 2019 promises to be a busy, and potentially discordant, legislative and regulatory period for the United States maritime industry as both Congress and the Executive Branch look to take decisive action, with both positive and negative potential impacts depending on your perspective. With appropriation and authorization bills still pending, and various open regulatory actions, there are significant opportunities for maritime stakeholders to influence policy outcomes.Funding Fights Continue in CongressOn October 31…

18 Jan 2019

U.S. Government Shutdown: Assessing the Impact on Maritime

Family and friends met aboard the Coast Guard Cutter Bertholf's flight deck to reunite with Bertholf crewmembers following the cutter's return home to Alameda, Calif., after a 90-day deployment, Sept. 4, 2018. Bertholf is one of four 418-foot National Security Cutters homeported in Alameda. U.S. Coast Guard photo by Petty  Family and friends met aboard the Coast Guard Cutter Bertholf's flight deck to reunite with Bertholf crewmembers following the cutter's return home to Alameda, Calif., after a

On December 22, 2018, a continuing resolution passed by Congress to fund a portion of the U.S. Government into the 2019 fiscal year expired and was not renewed resulting in a partial federal government shutdown. Among the affected Executive Departments are the Department of Homeland Security (which includes the Coast Guard and Customs and Border Protection), the Department of Transportation (which includes the Maritime Administration), the Department of Interior (which includes the Bureau of Environment and Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM))…

14 Feb 2018

Interview: William P. Doyle - CEO, Dredging Contractors of America

William P. Doyle - CEO & Executive Director, Dredging Contractors of America (DCA)

William P. Doyle is the new CEO & Executive Director of the Dredging Contractors of America (DCA). Twice a U.S. Senate confirmed Presidential appointee to the U.S. Federal Maritime Commission (FMC), Doyle has, over the course of a long and celebrated career, worn many prestigious hats. Prior to his FMC appointment, Mr. Doyle served on cabinet and executive level boards and committees under both the Obama and George W. Bush Administrations. Before that, he served as an officer in the U.S. Merchant Marine as a U.S. Coast Guard licensed marine engineer aboard numerous classes of vessels.

30 Sep 2016

FMC Collects $338,000 In Penalty Payments

Photo: FMC

Federal Maritime Commission Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of $338,000 in civil penalties. The agreements were reached with one vessel-operating common carrier and six ocean transportation intermediaries (both non-vessel-operating common carriers and ocean freight forwarders). The agreed-to penalties resulted from investigations conducted by the Commission’s Area Representatives in Houston, Seattle, South Florida, and New York, and by Washington D.C. headquarters staff.

23 Sep 2016

FMC: Update Regarding Commission Briefings on the Status of Hanjin Shipping

Photo: Federal Maritime Commission

The status of Hanjin Shipping and the disruptions caused by its bankruptcy to the American shipping community, as well as global supply chains, was examined closely by the Federal Maritime Commission during the closed session of the September 20, 2016 public meeting. Commissioners were briefed by staff from the Office of the General Counsel; the Bureau of Trade Analysis; the Bureau of Enforcement; and the Office of Consumer Affairs & Dispute Resolution Services about a variety of developments related to the insolvency of Hanjin Shipping. Topics addressed included: proceedings in the U.S.

18 May 2016

Maritime Leaders Convene in the Caribbean

Representatives from all aspects of the maritime shipping industry met in Cocoa Beach, Fla., May 16-18 for the Caribbean Shipping Associations’ (CSA) Shipping Executives Conference. Attendees include shippers, ship owners, port authorities and terminal operators, and non-vessel owners, such as brokers. A major theme of the conference was the close relationship between Florida ports and the Caribbean markets. “Florida ports have had a long relationship of trade with the Caribbean nations, and are proud to count them as some of our most valuable partners,” said Doug Wheeler, president and CEO of the Florida Ports Council. The CSA conference focused on the emerging market opportunities represented by the opening of Cuba to commerce, as well as the widening of the Panama Canal.

19 Feb 2016

US Maritime Commission Collects $520,000 in Penalties

The U.S. Federal Maritime Commission (FMC, the federal agency responsible for regulating the nation’s international ocean transportation, has completed compromise agreements recovering a total of $520,000 in civil penalties, announced FMC Chairman, Mario Cordero. The agreements were reached with four ocean transportation intermediaries (both non-vessel-operating common carriers and freight forwarders) and one vessel-operating common carrier. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Seattle and New York, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.

25 Mar 2015

Senate Confirms Doyle to Another Term

William P. Doyle

The United States Senate confirmed William P. Doyle to another term in office as a Federal Maritime Commissioner on the evening of March 23, 2015. The vote was a unanimous 89 in favor, 0 opposed, and 11 senators not voting. Upon confirmation, Commissioner Doyle said, “I would like to thank President Obama for his confidence in me, and I would also like to thank the U.S. Senate for taking up my nomination today. William Doyle was originally confirmed by the Senate on January 1, 2013 to fill the unexpired term of former Commissioner Joseph Brennan.

13 Nov 2014

FMC Commissioner Doyle Weighs In

FMC Commissioner William P. Doyle

Commissioner William P. Doyle's remarks at the Commission Briefing on Mid-Atlantic and Northeast Port Congestion Forum, November 13 2014 in Baltimore, MD. On October 1, 2014, Commissioner Lidinsky and I hosted the Mid-Atlantic and Northeast Port Congestion Forum at the World Trade Center in Baltimore, Maryland. I want to thank all the FMC staff for their participation in setting up and managing the day’s event. David Tubman and Jewel Jennings-Wright worked tirelessly for weeks helping to locate attendees and participants. Thank you both.

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.

12 Sep 2014

FMC Public Forum on US Port Congestion

Mario Cordero (Photo: FMC)

Federal Maritime Commission (FMC) Chairman Mario Cordero will hold a forum titled, "U.S. Port Congestion: Examining Causes, Impact on Stakeholders, and Exploring Possible Solutions" on Monday, September 15, 2014, from 9:30 a.m. to 4 p.m. in the Port of Los Angeles’ administration building in San Pedro, Calif. According to FMC, the forum’s goal is to promote dialogue on the causes and implications of congestion at U.S. ports. Industry stakeholders, regulators, and the general public are encouraged to take part.

19 Aug 2014

FMC Forum to Address US Port Congestion

U.S. Federal Maritime Commission (FMC) Chairman Mario Cordero will hold a forum titled, "U.S. Port Congestion: Examining Causes, Impact on Stakeholders and Exploring Possible Solutions" Monday, September 15, 2014, 9:30 a.m. to 4 p.m. at the Port of Los Angeles. According to the FMC, the forum’s goal is to promote dialogue on the causes and implications of congestion at U.S. ports. Topics covered will include factors causing port congestion, truck turn times, impact on stakeholders, use of technology to reduce congestion and related fees and PierPass.

12 Feb 2014

Webcast to Address China VAT Reform Announced

FMC Commissioner William P. Doyle

China’s Ministry of Finance and State Administration of Taxation released Circular 106 last December, expanding its value-added tax (VAT) pilot program to additional industries. The circular also made significant updates to the VAT treatment of services related to the international transportation of goods. During the week of January 20, 2014, China provided further clarifications for freight forwarding agent companies in China with regard to Circular 106. In light of the potential impact these changes may have on U.S.

04 Feb 2014

FMC Commissioner Doyle Announces China VAT Issue Webcast

New explanation issued from China on definition of “agents” in Circular 106. Industry briefing scheduled for March 6, 2014 concerning the latest information on China’s Value Added Tax regime and its impact on the maritime industry. Commissioner William P. Doyle of the Federal Maritime Commission (FMC) today announced that he will be participating in a webcast that will take place on March 6, 2014, on matters related to China's Value Added Tax (VAT) regime, with specific emphasis on China's release of Circular 106, as it affects carriers, shippers and ocean transportation intermediaries. Professionals from the global audit and tax firm, KPMG, will host the webcast. Commissioner Doyle stated, "I appreciate KPMG's willingness to provide a briefing on China's VAT program to FMC’s stakeholders.

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.

26 Nov 2008

FMC Compromise Agreements

On Nov. 24 the Federal Maritime Commission summarized compromise agreements reached with various ocean transportation intermediaries with respect to alleged violations of the Shipping Act of 1984. Civil penalties in the amount of $242,500 were recovered. The agreements were reached with licensed and unlicensed ocean transportation intermediaries ("OTIs"), both non-vessel-operating common carriers ("NVOCCs") and ocean freight forwarders. Caribbean Freight Systems Inc. Caribbean Freight Systems Inc. ("Caribbean Freight") is a licensed OTI located in Miami, Florida. It was alleged that Caribbean Freight obtained and allowed others to obtain…

11 Sep 2003

Navigating the FMC Regulations

The Federal Maritime Commission (FMC) issued a Notice stating that it will conduct an seminar in Boston on October 22, 2003 providing an overview of the responsibilities of vessel operators, ocean transportation intermediaries, and maritime shipping service users in U.S. foreign trades. (9/10/03). (Source: HK Law)