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Industry Advisory: All FMC Statutes and Regulations Remain in Full Effect in the Event of Terminal Closures Related to Possible Work Stoppage

Regulated entities are reminded that all statutes and regulations administered by the Federal Maritime Commission remain in effect during any terminal closures related to potential work stoppage at ports in the East Coast and Gulf of Mexico regions.

The Commission is directing its Bureau of Enforcement, Investigations, and Compliance to investigate any reports of unlawful conduct of regulated entities. The FMC will prosecute violators to the fullest extent of the law.  

Common carriers and marine terminal operators (MTOs) must continue to comply with all statutory and regulatory requirements, including rules governing tariffs, service contracts, MTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed. Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.

FMC regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. Pursuant to these requirements, the Commission will scrutinize any demurrage and detention charges assessed during terminal closures.

Demurrage and detention invoicing must be lawful. The Commission’s rule on such invoicing, implementing provisions of the Ocean Shipping Reform Act of 2022, became effective on May 28, 2024.  Invoices that do not include required information, or that are sent to the wrong entity, are not valid.

To report unlawful actions or to file a complaint, individuals or entities can:

  • File a complaint proceeding  for adjudication before the FMC’s Office of Administrative Law Judges.
  • Submit a Charge Complaint requesting refund of waiver of an erroneous or unlawful charge assessed by a common carrier for rapid review by the Commission.
  • Request informal assistance to resolve a dispute. The Commission’s Office of Consumer Affairs and Dispute Resolution Services (CADRS) will facilitate communications and seek to quickly resolve disputes between a shipper and a common carrier or MTO. Unlike an order issued in a legal proceeding, resolutions reached through CADRS are voluntary.
  • Report allegations of violations with the Commission’s Bureau of Enforcement, Investigations, and Compliance. Based on the information received, a formal investigation may be launched.
  • Provide concerns and information for the benefit of the Commission’s knowledge at complaints@fmc.gov.

Additional information about options for raising and addressing disputes can be found in this instructional video.

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