The Federal Maritime Commission plans to start the final phase of its investigation into detention and demurrage charges, the agency said in a news release. Commissioner Rebecca Dye will continue to oversee the investigations and meetings with industry experts that are planned to be held by mid-April, the FMC said. "It is an enormous challenge to develop an industry-wide practice for demurrage and detention," Dye said. "Our goal is to make focused, significant changes that will emphasize demurrage and detention incentives and boost freight fluidity. Contributions from industry experts and commitment to continuous supply chain process improvement are necessary to achieve this goal." A final report is due Sept. 3. The agency issued a report on the second phase of the investigation in December 2018 (see 1812100037).
Louis Sola and Daniel Maffei were sworn in as Federal Maritime Commission commissioners on Jan. 23 after Senate confirmation on Jan. 2, the agency said in a news release. Maffei previously served on the FMC, while Sola comes from the Florida Board of Pilots Commissioners, the FMC said. The additions of Sola and Maffei bring the number of FMC commissioners up to four.
The Federal Maritime Commission will allow for the changes to the PierPass "OffPeak" program to go forward, the agency said in a news release. The FMC announcement means the changes will take effect Nov. 19, as planned (see 1810150032). PierPass, a not-for-profit company owned by the ports' marine terminal operators, said in a news release that the changes will update the congestion-pricing model with "a reduced Traffic Mitigation Fee (TMF) across all hours of terminal operation to help offset the cost of operating extended gates."
Companies moving containers through the ports of Los Angeles and Long Beach will no longer have to pay congestion surcharges and instead will pay a flat fee of either $31.52 per 20-foot equivalent unit or $63.04 for other size containers starting Nov. 19, PierPass said. Companies will need to register with PierPass if they have not already, because all trucks bringing containers out of the ports will need to make an appointment. Nine of the 12 terminals at the two adjacent ports already use appointment systems, so most trucking firms serving the ports are already using these systems, the press release announcing the change said. The marine terminals will offer common appointment windows and common last appointment times for each shift.
The Federal Maritime Commission will discuss the fact finding on conditions related to port detention, demurrage and free time practices during a Sept. 19 meeting, the FMC said in a notice. The FMC recently released its first report from that fact finding (see 1809060033). It will also discuss the regulatory reform task force and a redesign of the agency's website, it said.
The Federal Maritime Commission issued its first report on the detention and demurrage practices for vessel operating common carriers and marine terminal operators, the agency said in a news release. The full interim report includes a number of observations about the processes involved, but notes further discussion with industry leaders is planned. Regarding one question as to whether VOCCs or MTOs charge demurrage during government inspections, little data was available, the FMC said. "As for mitigating demurrage and detention due to customs holds, some VOCCs indicated that they do not charge demurrage for the time during which a container was taken off-terminal for an inspection," the agency said.
The Federal Maritime Commission will discuss a "fact finding" on conditions related to port detention, demurrage and free time practices during a Sept. 4 meeting, the FMC said in a notice. The meeting will be closed to the public. The FMC began an investigation into those issues in April (see 1804030030).
Terminal operators at the Ports of Los Angeles and Long Beach have agreed to a set of operational procedures that terminals will follow as part of the revised PierPass “OffPeak” program that, pending approval, will begin in August (see 1804160037), they said in a press release. The new business rules include an appointment window of two hours for appointments, as well as last appointment times of 3:30 p.m. on the first shift and 1:30 a.m. on the second. “PierPass also clarified that the new system, which some have referred to as ‘PierPass 2.0,’ won’t require appointments for individual import containers being picked up from peel-off piles,” the press release said. “Trucking companies and cargo owners will continue to arrange for a single time window to pick up entire blocks of containers going to the same company or destination from a single container terminal.”
The PierPass “OffPeak” program at the Ports of Los Angeles and Long Beach is set to switch from its current congestion pricing model to a flat-fee appointment-based system for both daytime and nighttime moves, PierPass said in an April 16 press release. “Port users have expressed a desire for changes to increase flexibility and reduce the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts,” the press release said. “Under the current program, OffPeak charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use OffPeak shifts on nights and Saturdays. The revised OffPeak program will replace this two-tier fee structure with a single flat TMF during both shifts, and use appointments to spread traffic across the two shifts,” it said. “Subject to regulatory approval, the revised OffPeak program is expected to begin in August,” PierPass said. PierPass also posted a questions and answers document on the upcoming changes.
The Federal Maritime Commission began its investigation into various port fees (see 1803060028) with an information demand to ocean carriers, the FMC said in an April 2 news release. "Commissioner Rebecca Dye has launched the first phase of her investigation into port demurrage, detention, and free time practices by ordering ocean common carriers to provide information and documents explaining those practices," the agency said. "A similar effort with respect to container terminals at major U.S. ports is also underway." Dye is seeking specific details on fees while the shippers are unable to retrieve cargo, the FMC said. "The ultimate resolution of this investigation will have the potential to affect every ocean common carrier calling the United States," Dye said. "It is vital that the information we gather is representative of business and operational practices, as well as market conditions, nationally."