The Federal Maritime Commission reports that the director of its Bureau of Enforcement, Investigations, and Compliance said recently that FMC enforcement personnel are subpoenaing information and deposing witnesses as part of major investigations examining potentially unlawful behavior by regulated entities. BEIC has prioritized investigations of possible wrongdoing by common carriers or marine terminal operators where the alleged misconduct negatively impacts the industry or causes market distortion. The BEIC director noted that such investigations are complex undertakings and that the bureau is developing policies, procedures, and additional capabilities necessary to successfully examine and prosecute these cases.
According to the FMC, BEIC is also prioritizing reviewing any allegations of misconduct involving the recent work stoppage at ports on the U.S. East and Gulf coasts with the intent of prosecuting instances of unlawful conduct. The FMC has emphasized that retaliation by ocean carriers and MTOs against shippers, ocean transportation intermediaries, or motor carriers for questioning carrier or MTO invoicing, surcharges, or other practices, or for making a complaint and/or providing information to the FMC, is a serious violation that carries significant penalties.
Further, the FMC anticipates initiating in 2025 a rulemaking establishing a permanent procedure for charge complaints, which provide a simplified way to dispute charges assessed by common carriers (e.g., demurrage and detention fees) that may not comply with the Ocean Shipping Reform Act of 2022. Filing a charge complaint initiates an informal process of investigation by BEIC but may result in a recommendation to issue a show cause order, which could initiate a formal proceeding. The FMC notes that many charge complaints are settled during the investigatory phase of the process and that as of Sept. 30 common carriers had voluntarily waived or refunded $3.3 million in charges under this process over the past two years.
ST&R’s team of former FMC and DOJ litigation personnel, freight forwarders, and former administration and congressional staffers can help shippers facing higher costs from carriers. For more information, please contact Andy Margolis at (305) 894-1021 or via email.
Copyright © 2024 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.