FMC Warns of ‘Significant Penalties’ Against Carriers, MTOs for Shipper Retaliation
The Federal Maritime Commission urged carriers and terminal operators not to retaliate against shippers for questioning an invoice or filing a complaint with the FMC, warning the cargo shipping industry this week that it will pursue serious penalties against those that violate the anti-retaliation provisions of the Ocean Shipping Reform Act.
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The FMC said it wanted to emphasize -- “in light of the significant supply chain challenges currently facing the freight delivery system” -- that retaliation against a shipper, ocean transportation intermediary or motor carrier “is a serious violation of the law that carries significant penalties.” The commission said shippers should be able to question invoices, surcharges, or other practices by a carrier or marine terminal operator (MTO) if they believe those measures are unfair.
“The FMC will actively pursue any allegation of retaliatory conduct and will hold offending parties fully accountable,” it said.
The commission pointed to a rule, which took effect in May, that set new demurrage and detention billing requirements, including information carriers and MTOs must include in their invoices (see 2402230049). “Invoices that do not contain this information need not be paid,” it said, “and the FMC will vigorously investigate any allegations of retaliation connected to the right of parties invoiced for demurrage and detention charges to raise questions or concerns with common carriers or MTOs.”
The FMC asked anyone with information about retaliation by a carrier or MTO to contact the Bureau of Enforcement, Investigations and Compliance.