The US Federal Maritime Commission (FMC) has reminded shipping companies and terminal operators that all maritime laws and regulations will remain in force during potential closures due to work stoppages at ports on the US East Coast or Gulf of Mexico.

The FMC emphasised that carriers and marine terminal operators (MTOs) must continue to comply with rules on tariffs, service contracts, and the application of fees, including surcharges, demurrage and detention charges. Any violations will be fully investigated, with the FMC’s Bureau of Enforcement tasked with taking action against unlawful practices. The commission added it would prosecute any violators to the fullest extent of the law. The FMC also stressed that all fees, including demurrage and detention, must be fair, clearly explained, and linked to 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 scrutinise any demurrage and detention charges assessed during terminal closures,” FMC said in a statement.

The FMC noted that individuals or entities can report unlawful actions to FMC or seek assistance through the commission’s Office of Consumer Affairs and Dispute Resolution Services.

The FMC did not say it directly in its announcement, but if there is a labour disruption rules and ‘best practices’ around container demurrage quickly become an issue. After the west coast labour disruptions in 2015 there was a shipper outcry over demurrage charges for containers that were stuck inside terminals that shut down for periods. Following an investigation and rule making the FMC did not explicitly ban shipping lines and MTOs from charging demurrage fees when terminals are closed due to a strike, bad weather or other events. It did, however, issue guidance on what it would consider when assessing whether a demurrage charge is reasonable if a complaint is made. This made it clear that the FMC does not consider it reasonable to charge demurrage when containers are not actually available, and the ‘free time clock’ should also be stopped in these circumstances.

With one week left until the expiry of the current labour contract, the United States Maritime Alliance (USMX) has called on the International Longshoremen’s Association (ILA) to sit down and negotiate an agreement to avoid strikes at US ports. ILA has announced a potential strike effective midnight Tuesday, 1 October 2024, if employers continue to refuse to accept its bottom line on pay increases.

In anticipation of the strike, various US ports have announced contingency plans. The Port of New York and New Jersey said that preparations were underway for the strike. The port urged customers to collect their import cargo by close of business on Monday, 30 September, as no deliveries would be possible once the strike begins. This is particularly important for refrigerated containers and hazardous materials. After this deadline, there would be no staff available at the terminal to monitor or adjust refrigerated containers left on-site. Export cargo will not be accepted at any of the terminals unless it can be loaded onto a vessel before Monday, 30 September, which will also be the last day for trains carrying both imports and exports.

“We expect heavy congestion toward the end of the week and on Monday, Sept. 30 as parties seek to remove containers from the terminal prior to the potential shutdown, so we recommend picking up your containers as early as possible this week and utilising all available gate hours,” the port said, adding that additional gate hours will be in effect. North Carolina Ports and Port Houston have also extended gate hours ahead of the strike.

Meanwhile, Maersk is joining Hapag-Lloyd and CMA CGM in introducing a local Port Disruption Surcharge for cargo moving to and from US East Coast and Gulf Coast terminals, effective 21 October 2024, with charges of US$ 1,500 for 20’ containers, US$ 3,000 for 40’ containers, and US$ 3,780 for 45’ containers, pending regulatory approval for cargo from China.

The US Federal Maritime Commission (FMC) has reminded shipping companies and terminal operators that all maritime laws and regulations will remain in force during potential closures due to work stoppages at ports on the US East Coast or Gulf of Mexico.

The FMC emphasised that carriers and marine terminal operators (MTOs) must continue to comply with rules on tariffs, service contracts, and the application of fees, including surcharges, demurrage and detention charges. Any violations will be fully investigated, with the FMC’s Bureau of Enforcement tasked with taking action against unlawful practices. The commission added it would prosecute any violators to the fullest extent of the law. The FMC also stressed that all fees, including demurrage and detention, must be fair, clearly explained, and linked to 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 scrutinise any demurrage and detention charges assessed during terminal closures,” FMC said in a statement.

The FMC noted that individuals or entities can report unlawful actions to FMC or seek assistance through the commission’s Office of Consumer Affairs and Dispute Resolution Services.

The FMC did not say it directly in its announcement, but if there is a labour disruption rules and ‘best practices’ around container demurrage quickly become an issue. After the west coast labour disruptions in 2015 there was a shipper outcry over demurrage charges for containers that were stuck inside terminals that shut down for periods. Following an investigation and rule making the FMC did not explicitly ban shipping lines and MTOs from charging demurrage fees when terminals are closed due to a strike, bad weather or other events. It did, however, issue guidance on what it would consider when assessing whether a demurrage charge is reasonable if a complaint is made. This made it clear that the FMC does not consider it reasonable to charge demurrage when containers are not actually available, and the ‘free time clock’ should also be stopped in these circumstances.

With one week left until the expiry of the current labour contract, the United States Maritime Alliance (USMX) has called on the International Longshoremen’s Association (ILA) to sit down and negotiate an agreement to avoid strikes at US ports. ILA has announced a potential strike effective midnight Tuesday, 1 October 2024, if employers continue to refuse to accept its bottom line on pay increases.

In anticipation of the strike, various US ports have announced contingency plans. The Port of New York and New Jersey said that preparations were underway for the strike. The port urged customers to collect their import cargo by close of business on Monday, 30 September, as no deliveries would be possible once the strike begins. This is particularly important for refrigerated containers and hazardous materials. After this deadline, there would be no staff available at the terminal to monitor or adjust refrigerated containers left on-site. Export cargo will not be accepted at any of the terminals unless it can be loaded onto a vessel before Monday, 30 September, which will also be the last day for trains carrying both imports and exports.

“We expect heavy congestion toward the end of the week and on Monday, Sept. 30 as parties seek to remove containers from the terminal prior to the potential shutdown, so we recommend picking up your containers as early as possible this week and utilising all available gate hours,” the port said, adding that additional gate hours will be in effect. North Carolina Ports and Port Houston have also extended gate hours ahead of the strike.

Meanwhile, Maersk is joining Hapag-Lloyd and CMA CGM in introducing a local Port Disruption Surcharge for cargo moving to and from US East Coast and Gulf Coast terminals, effective 21 October 2024, with charges of US$ 1,500 for 20’ containers, US$ 3,000 for 40’ containers, and US$ 3,780 for 45’ containers, pending regulatory approval for cargo from China.