The Federal Maritime Commission (FMC) has issued a statement on shipping surcharges related to tensions in the Strait of Hormuz. The Commission said it is closely monitoring the impact on global shipping conditions.
Rules on Surcharge Implementation
The FMC ensures that rates, charges, and rules set by common carriers comply with the Shipping Act. Carriers must follow strict regulations when introducing new surcharges.
Commission rules require at least 30 days between the publication and the effective date of tariff changes that increase shipper costs. Carriers can request a Special Permission to shorten this period, but they must provide valid justification.
The Commission reviews and votes on all such requests. If approved, the decision will include the permitted effective date. A tariff rate or charge must already be in effect when the carrier receives the cargo.
Compliance and Tariff Transparency
The FMC maintains a public list of tariff locations for both Vessel-Operating Common Carriers and Non-Vessel-Operating Common Carriers. Shippers are encouraged to review their carrier’s tariffs.
Ocean carriers must also file service contracts and amendments accurately and on time. They must avoid discriminatory practices, unreasonable prejudice, or refusal to deal.
Disputes and Enforcement
Parties should review service contract terms carefully. If contracts reference a carrier’s published tariff, the applicable rates or charges depend on the tariff’s effective date when cargo is received.
Under the Shipping Act, court action is the main remedy for service contract disputes, although parties may agree to alternative dispute resolution.
The FMC can investigate potential violations following a complaint or on its own initiative. Violations may lead to fines for carriers or damages awarded to shippers.
Shippers who suspect non-compliance can file a complaint with the FMC or contact its Office of Consumer Affairs and Dispute Resolution Services.
