FMC Makes 12 Recommendations in Report on Effects of COVID-19 on the U.S. International Ocean Transportation Supply Chain

FEDERAL MARITIME COMMISSION: FACT FINDING INVESTIGATION 29 FINAL REPORT

Effects of the Covid-19 Pandemic on the U.S. International Ocean Supply Chain: Stakeholder Engagement and Possible Violations of 46 U.S.C. § 41102(C)

On May 31, 2022, the Federal Maritime Commission (FMC) published Fact Finding Investigation 29 Final Report on “The Effects of COVID-19 on the U.S. International Ocean Transportation Supply Chain.” After a two-year investigation, interviewing hundreds of industry stakeholders, the 65-page report found two on-going trends that resulted from the pandemic;

https://www.greenworldwide.com/fmc-makes-12-recommendations-in-report-on-effects-of-covid-19-on-the-u-s-international-ocean-transportation-supply-chain/

High Transportation Prices

“…although certain ocean transportation prices, especially spot prices, are disturbingly high by historical measures, those prices are exacerbated by the pandemic, an unexpected and unprecedented surge in consumer spending, particularly in the United States, and supply chain congestion, and are the product of the market forces of supply and demand.”

Demurrage, Detention, and other Tariffs

“…despite the actions of the new FMC Vessel-Operating Common Carrier Audit Program and recent compliance efforts are not in full compliance with the incentive principle of the Commission’s Interpretive Rule on Demurrage and Detention.”

“…Commission lacks the regulatory tools to deal with the numerous new charges imposed on U.S. shippers and truckers by ocean carriers and marine terminals through tariffs and with other supply chain dislocations within the Commission’s authority.”

12 NEW FMC RECOMMENDATIONS FROM FACT FINDING 29

The FMC advised 12 final recommendations to alleviate dislocations in the U.S. international ocean supply chain:

1. A new Commission “International Ocean Shipping Supply Chain Program” with dedicated personnel;
2. A rulemaking to provide coherence and clarity on empty container return practices;
3. A rulemaking to provide coherence and clarity on earliest return date practices;
4. Continued Commission support for the new FMC “Vessel-Operating Common Carrier Audit Program” including developing a new requirement for ocean common carriers, seaports, and marine terminals to employ an FMC Compliance Officer;
5. An FMC outreach initiative to provide more information to the shipping public about FMC competition enforcement, service contracts, forecasting, and shippers associations, among other topics;
6. An enhanced cooperation with the federal agency most experienced in agricultural export promotion, the Department of Agriculture, concerning container availability and other issues;
7. A Commission Investigation into practices relating to charges assessed by ocean common carriers and seaports and marine terminals through tariffs;
8. A rulemaking to provide coherence and clarity on merchant haulage and carrier haulage;
9. A new “National Seaport, Marine Terminal, and Ocean Carrier Advisory Committee” to work cooperatively with the Commission’s National Shipper Advisory Committee;
10. A revival of the Rapid Response Team program as agreed by all ocean carrier alliance CEOs;
11. A FMC Supply Chain Innovation Teams engagement to discuss blank sailing coordination and information availability; and
12. A reinvigorated focus on the extreme supply chain equipment dislocations in Memphis railheads, other rail facilities and other facilities around the country.

Read the complete FMC Report

FEDERAL MARITIME COMMISSION: FACT FINDING INVESTIGATION 29 FINAL REPORT

Effects of the Covid-19 Pandemic on the U.S. International Ocean Supply Chain: Stakeholder Engagement and Possible Violations of 46 U.S.C. § 41102(C)

https://www.greenworldwide.com/fmc-makes-12-recommendations-in-report-on-effects-of-covid-19-on-the-u-s-international-ocean-transportation-supply-chain/

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