IWLA joined a coalition of stakeholders, spearheaded by the Harbor Trucking Association, and sent a letter to the Federal Maritime Commission (FMC) and Congress on November 16. The letter called for action to suspend unreasonable detention and demurrage charges being assessed in the Ports of Los Angeles and Long Beach, as well as the Port of New York & New Jersey, by ocean carriers and marine terminals.

FMC issued an interpretative rule earlier this year on unreasonable demurrage and detention charges under the Shipping Act. However, increasingly congested ports and a shortage of containers and labor during the pandemic have resulted in ocean carriers and terminal operators still levying substantial charges on U.S. supply chain partners.

FMC appears to have quickly responded to the well-support coalition effort, as the Commission approved a Supplemental Order on November 20 to expand the authority of Fact Finding 29, “International Ocean Transportation Supply Chain Engagement.” The order authorizes the investigation of ocean carriers operating in alliances and calling the ports identified in the coalition letter. FMC’s Fact Finding 29 was initially initiated to identify operational solutions to cargo delivery system challenges related to COVID-19.

FMC Commissioner Carl Bentzel issued a statement following publication of the supplemental order in which he said: “Clearly, the volume surges currently overtaking the ports of Los Angeles and Long Beach, and now New York/New Jersey shine a light on the operational vulnerabilities and reveal our supply chain weaknesses. In no specific order, I believe we must address the following problems:

Availability of intermodal chassis at the ports of Los Angeles and Long Beach and the availability of containers. I would note with concern that most intermodal chassis and marine containers are manufactured in China. I find it hard to believe with the full restoration of Chinese manufacturing that has come roaring back, creating volume surges, that the marine equipment segment has lagged so far behind.

Application of the new FMC interpretative rule on detention and demurrage, policies on the return empty loads that restrict empty container delivery, and charge detention during this time. Of particular concern, is the allegation that truckers could be blacklisted for complaint.

Availability of skilled longshore labor to perform loading and unloading with larger than ever vessel sizes and vessel calls with all-time high cargo volume.

Information that beneficial cargo owners (BCO’s) have restocked their warehouses and are failing to pick up cargo at marine terminals, or alternatively storing cargo at their facilities, and failing to unload containers and release chassis back into trade.

All these issues could be contributing to supply chain challenges we currently face. I am hopeful the targeted Fact Finding Investigation will shed light on the problems and generate discussion on how to address issues.”

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