Tag: Demurrage

Insights into OSRA

When the Ocean Shipping Reform Act (OSRA) was signed into law on June 16, 2022, it not only became a beacon that provided guidance for companies who felt they were being unfairly charged demurrage and detention (D&D) fees by carriers, it opened the door for cargo owners to have a more vocal advocate to fight those unfair charges imposed by carriers. 

 

According to the White House Briefing Room, OSRA authorizes the Federal Maritime Commission (FMC) for fiscal years 2022-2025, creates a list of necessary and banned behavior for ocean carriers, requires the FMC to create rules related to certain fee assessments, creates a shipping register, and gives permission for the FMC to issue emergency order necessary common carriers to exchange information directly with shippers, rail, and truck carriers. 

 

OSRA has declared carriers won’t be able to be as cavalier or as easily dismissive of claims made by small and medium sized companies whose survival depends on getting a spot on these shipments for a reasonable price.

 

The FMC will help force carriers to be more honest in their accounting and will perhaps be an incentive to change their behavior towards shippers. Creating equality across the board whether they are a large company or small could mean an economic boost for smaller companies, and make it so that they have a chance to grow. The FMC announced that these complaints, however, must be made after the ruling on June 16, 2022, and not before it was made into law. 

 

Future Forwarding has always advocated for our clients and when we act as a freight forwarder or NVOCC, we keep the most accurate accounting of a container’s location, time out of the port or ramp, and whether or not there were issues which prevented the equipment’s return. Future Forwarding will stand with you to fight against these excessive fees. Should you have any questions regarding this or how we can help you in the future, please don’t hesitate to contact your Future Forwarding representative today. 

The FMC Wants to Hear from You

Submit comments to the FMC about demurrage, detention, and service issues

The National Customs Brokers and Forwarders Association of America has reached out to member companies like ours imploring us to have shippers, both importers and exporters, submit written comments to the Federal Maritime Commission on the shipping practices of carriers during the pandemic.

If you are an importer or exporter who holds a direct contract with a line, you’ve had first-hand experience begging, imploring, likely shouting and finally relenting in the face of the take-it-or-leave-it approach to negotiations that carriers have adopted over the past year or so. For everyone else, Future Forwarding and companies like ours have been the ones doing all this on behalf of all of our shippers, putting us in some very uncomfortable positions trying to advocate for all while jeopardizing none.

We can – and will – submit our own written comments to the agency about our experiences which have been on both transatlantic and transpacific routes – inequity, it seems, isn’t playing favorites.

The FMC, for its part, is increasing its engagement and involvement, as are other government agencies like the Surface Transportation Board with jurisdiction over the charges, actions, and practices of railroads.

On August 4th

The agency announced an expedited inquiry into the timing and legal sufficiency of these charges. This inquiry is being led by the agency’s Bureau of Enforcement and demonstrates their interest in taking action, if and when warranted.

FMC Commissioner Rebecca Dye submitted an interim report with a number of suggestions, including Congressional actions, to strengthen and hold carriers accountable for their behavior towards shippers.

Please submit comments to the Federal Maritime Commission.

Here’s how to do it.

  1. If you have a specific complaint you want to file for a monetary loss or dispute, start here, on the agency’s page for “Filing a Shipping Act Complaint”.
  2. If you wish to submit a letter to the FMC for a specific shipment or shipments include details such as carrier name, master bill of lading number(s), container number(s), the violation or offense that took place and what attempts you have made, if any, to mitigate or resolve the matter with the carrier.
  3. If you wish to submit a general letter to the FMC as a shipper who has been affected, that’s acceptable as well. Be sure to include details about your experiences, the economic and commercial impact, the impact on jobs or the health of the company, and if you have been able to find any alternate solutions to problems surrounding rates, service failures, surcharges, or other supply chain breakdowns.

The letters can be emailed to the Secretary of the FMC at secretary@fmc.gov.

The agency’s interest as well as that of other associations such as the National Retail Federation, the US Chamber of Commerce, and others means that the more voices raising the issue impress upon the agency the urgency to help the shipping public. We are happy to review and share feedback on your letters to the agency. 

While we cannot envision things improving overnight, a persistent drumbeat of pressure on steamship lines and railroads to deliver service and not profiteer in the time of a crisis that is partially real and partially manufactured is a good first step towards improvement.

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