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New FMC regulation eliminates carrier excuses for rolling cargo

Posted on July 29, 2024 |

The US Federal Maritime Commission (FMC) has introduced a rule to stop ocean carriers from refusing contracted cargo, eliminating their usual excuses.

Starting September 23, the rule aims to protect shippers during negotiations and ensures carriers honor their bookings.

This move addresses frequent complaints about carrier behavior, especially during the pandemic.

The 2022 Ocean Shipping Act encouraged shippers to claim breaches of contract, with $70 million in damages sought.

Many claims focused on unfair detention, demurrage fees, and cargo allocation.

Carriers argue the new rule targets price regulation, but the FMC insists it only ensures fair rate comparisons.

The FMC states the rule compares negotiation rates with overall market rates, countering carrier objections.

Retailers and shippers have shown strong support for the FMC's new rule, despite carrier resistance.

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