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Thursday, 05/08/2021, 17:41 (GMT +7)
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US FMC investigates eight container shipping lines for congestion surcharges
The US Federal Maritime Commission (FMC) has launched an “Expedited Inquiry” into the operations of eight container shipping lines in relation to “congestion or related surcharges”.
US FMC investigates container shipping lines over congestion surcharges (Image: GHY International)
While pressure is growing on US shippers over record-high container freight rates, surcharges and delayed shipments. The eight carriers, all identified as having announced or implemented congestion surcharges or congestion-related charges are: CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line ; and ZIM.
FMC explains that: “In reviewing ocean carrier responses, the Commission will determine if surcharges were implemented following proper notice [30 days is required]; if the purpose of the surcharge was clearly defined; if it is clear what event or condition triggers the surcharge; and is it clear what event or condition has been identified that would terminate the surcharge.”
The deadline for a response to the FMC's Bureau of Enforcement (BoE) is August 13.
FMC Committee Chairman Daniel B. Maffei said: “The Covid-related spike in demand for imports has pushed cargo rates to record highs,” said Chairman Maffei. “Now, we hear increasing reports of ocean carriers assessing new additional fees, such as ‘congestion surcharges,’ with little notice or explanation."
He added: “The congestion is due mostly to the tremendous volume of traffic coming from ocean carriers and through ports to satisfy the record demand for imports. Far from being a sudden occurrence or isolated to a port or geographical area, congestion of the freight transportation system is everywhere and has been going on for many months. It seems to me that these factors would already have been included into the record high rates charged by the carriers."
In his concluding remarks, he said: “As Chairman, I want to know the carriers’ justifications for additional fees and I strongly support close scrutiny by the FMC’s Bureau of Enforcement aimed at stopping any instance where these add-on fees may not fully comply with the law or regulation."
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Source: Phaata.com (According to SeatradeMaritime)
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