Rebecca F Dye, Maritime Commissioner, Federal Maritime Commission (FMC) assured Steve Lamar, President and CEO, American Apparel and Footwear Association (AAFA) on issuing information demand orders to ocean carriers and marine terminal operators (MTOs) to determine if legal obligations related to detention and demurrage practices are being met.
Earlier this month Lamar urged FMC to take immediate steps to stem the surge in contract violations and the spike in detention and demurrage charges. Lamar said the association’s members are already battling a huge slump in demand that has led to store closings, furloughs, layoffs and bankruptcies. A convergence of issues has created unprecedented shipping problems and delays for beneficial cargo owners (BCOs), truckers, ports, terminals and carriers. The association’s members have had to pay unexpected and unplanned surcharges, premiums, and/or spot rates to get their cargo on ships. In addition, they faced a spike in detention and demurrage charges for situations completely out of their control.
The FMC orders are being issued under Dye’s authority as the Fact Finding Officer for ‘International Ocean Transportation Supply Chain Engagement.’ Targets of the orders will be ocean carriers operating in an alliance and calling the Port of Los Angeles, the Port of Long Beach, or the Port of New York & New Jersey. Marine terminal operators at those ports will also be subject to information demands. The demand orders will also require carriers and MTOs to provide information on their policies and practices related to container returns and container availability for exporters.
