FMC to Hold Hearing Next Month on Red Sea Shipping Impacts
The Federal Maritime Commission will host a public hearing Feb. 7 to look at how conditions in the Red Sea and the Gulf of Aden are "impacting commercial shipping and global supply chains," the commission said Jan. 12. The FMC said the hearing will allow the shipping industry to share with the commission "how operations have been disrupted by attacks on commercial shipping emanating" from Houthi rebels in Yemen (see 2312200045).
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The Commission also said the hearing will allow it to "identify any new issues related to these disruptions subject to Commission statutes," such as implementing contingency fees and surcharges. The FMC in recent weeks has approved emergency Red Sea surcharges both for inbound and outbound vessels, and some industry officials have questioned whether carriers are taking advantage of the FMC approvals to impose unfairly high fees (see 2401050066 and 2401110024).
The deadline to apply to participate at the virtual and in-person meeting is Jan. 31. The FMC said panels and participants will be announced "at a later date" and are "intended" to include both ocean carriers and shippers.
The FMC also on Jan. 12 issued new guidance for surcharges imposed by carriers, saying its closely monitoring "rates, charges, and rules that common carriers have implemented as a result of the threats to commercial shipping in the Red Sea and Gulf of Aden regions." Although FMC regulations require carriers to give at least 30 days notice before a new tariff is imposed, the commission said carriers may ask for special permission to reduce this 30-day waiting period.
The commission also encouraged shippers to "access and review" their carrier’s tariff, adding that carriers are "responsible for ensuring that service contracts and their amendments are filed in a timely and accurate manner" and comply with the Shipping Act. "Parties should be familiar with the terms of their service contract," the FMC said. "If a service contract incorporates all or a portion of a carrier’s published tariff, then the associated rates, charges, or rules must be applied based on their effective date at the time of cargo receipt."
The FMC said it may investigate potential violations on its own or after receiving a complaint from a shipper, also warning that it may assess penalties. Shippers should reach out to the Bureau of Trade Analysis or request Consumer Affairs and Dispute Resolution Services "if they are concerned that a carrier is rating shipments in a manner that does not comport" with FMC regulations, the commission said.