26.9 C
Hamburg
Monday, July 26, 2021
Home News US FMC establishes ocean carriers audit programme

US FMC establishes ocean carriers audit programme

The Federal Maritime Commission (FMC) of the United States has established a new audit programme and dedicated audit team to assess carrier compliance with the Agency’s rule on detention and demurrage as well as to provide additional information beneficial to the regular monitoring of the marketplace for ocean cargo services.

The “Vessel-Operating Common Carrier Audit Program” was established on 19 July at the direction of FMC Chairman, Daniel B. Maffei, and launched immediately.

The Audit Program will analyse the top nine carriers by market share for compliance with the Commission rule interpreting 46 USC 41102(c) as it applies to detention and demurrage practices in the United States.

The Commission will work with companies to address their application of the rule and clarify any questions or ambiguities, according to a statement, while information supplied by carriers may be used to establish industry best practices.

Other focus areas of the audit process may include practices of companies related to billing, appeals procedures, penalties assessed by the lines, and any other restrictive practices.

"The Federal Maritime Commission is committed to making certain the law is followed and that shippers do not suffer from unfair disadvantages. The work of the audit team will enable the Commission to monitor trends in demurrage and detention practices and revenue, as well as to establish ongoing dialog between staff and carriers on challenges facing the supply chain," said Maffei.

"Of course, if the audit team uncovers prohibited activities, the Commission will take appropriate action. Furthermore, the information gathered by the audit process might lead to changes in FMC regulations and industry guidance if warranted," he added.

The Audit Program will begin with an information request establishing a database of quarterly reports allowing the Commission to assess how detention and demurrage is administered. Responses will be followed by individual interviews with the carriers. Each of the nine largest carriers by market share will be audited irrespective of whether a formal or informal complaint has been filed at the Commission.

Lucille Marvin, the Commission’s Managing Director, will lead both the audit program and the audit team, which will initially be comprised of existing Commission employees.

Latest Posts

Acceleration in port capacity investment insufficient to support cargo demand growth

Surging container shipping cargo demand in the wake of the pandemic has resulted in a significant improvement in the global terminal capacity outlook, but...

DCT Gdańsk to boost container capacity by 1.5 million TEU

The tender committee of the Port of Gdańsk Authority has announced that the lease for a new port area has been awarded to DCT...

Hapag-Lloyd increases prices to Australia

Hapag Lloyd has announced new rates for Australian destinations that will take effect in the next months. Firstly, the German carrier will implement a peak...

IPCSA joins Private Sector Consultative Group of WCO

The International Port Community Systems Association (IPCSA), which specialises in global trade facilitation, is the new member of World Customs Organization’s influential Private Sector...

Chittagong port yards face severe box congestions in lockdown

The ongoing lockdown in Bangladesh has started taking a toll on the shipping sector, especially on port yards, creating severe congestion as importers are...