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FMC Meets to Consider Detention & Demurrage Report, Changes to OTI Rules

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Contact: John K. DeCrosta, (202) 523-5911

The Federal Maritime Commission met today in both open and closed sessions to receive the final report of the detention and demurrage investigation, to amend regulations governing Ocean Transportation Intermediaries, to consider monitoring requirements for the marine terminal agreement governing PierPass, and to receive an update on alliance agreements.

During the open session of the meeting, Commissioner Rebecca Dye presented the findings of Fact Finding 28, an investigation into the “Conditions and Practices Relating to Detention, Demurrage, and Free Time in International Oceanborne Commerce.” In the near future, the Commission will convene Innovation Teams of experts to consider the commercial viability of four key challenges Commissioner Dye has identified as having the most potential to making a meaningful difference in when and how shippers are assessed detention and demurrage fees.

Also during open session, Cliff Johnson, Special Assistant in the Bureau of Certification and Licensing, presented recommended changes to regulations governing the licensing and financial responsibility requirements of Ocean Transportation Intermediaries. He presented the Commission with 12 administrative or procedural amendments to current rules including changes that will allow the Commission to more efficiently manage and process license renewals.

In session closed to the public, the Commission received an update on alliance agreements and also considered monitoring requirements for the West Coast MTO Agreement, which administers the PierPass program at the Port of Los Angeles and the Port of Long Beach.

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