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FMC to Audit Ocean Carriers for Compliance With Detention, Demurrage Rule

The Federal Maritime Commission will audit ocean carriers’ compliance with the FMC’s rule on detention and demurrage (see 2009140045 and 2011170041) in a bid to stop carriers from imposing unreasonable fees. The newly established Vessel-Operating Common Carrier Audit Program, which includes a dedicated audit team, will conduct the audits, the FMC said July 20. The program will “analyze” the top nine carriers by market share for compliance with the FMC’s rule and “clarify any questions or ambiguities.”

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The program will also help the FMC “monitor trends” in ocean carrier fees and establish a dialogue with the carriers, FMC Chairman Daniel Maffei said in a statement. Maffei said the audit may lead to changes in FMC regulations or industry guidance. “The Federal Maritime Commission is committed to making certain the law is followed and that shippers do not suffer from unfair disadvantages,” he said. “Of course, if the audit team uncovers prohibited activities, the Commission will take appropriate action.”

The audit program will request information from the carriers and will follow up with them in individual interviews. Each of the nine largest carriers will be audited “irrespective of whether a formal or informal complaint has been filed at the Commission,” the commission said. Led by FMC Managing Director Lucille Marvin, the audit team will “initially” include existing FMC employees. The FMC has been investigating unfair fees and container practices by carriers for months (see 2011200024, 2102170060 and 2105050057).