Ahead of the looming International Longshoremen’s Association strike, which could begin on October 1 if wage negotiations continue to deadlock, the Federal Maritime Commission has warned regulated entities that all FMC statutes and regulations remain in full effect in the event of terminal closures related to possible 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,” the organisation said.
“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. The Commission has said it will scrutinise any demurrage and detention charges assessed during terminal closures.
It says 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. Invoices that do not include required information, or that are sent to the wrong entity, are not valid.”
