Dan Maffei (R) (FMC): “The information the audit team is gathering from the shipping lines will be invaluable in identifying what carriers are doing well in carrying exports and where we must push carriers to do more” (source: Federal Maritime Commission)
The US Federal Maritime Commission (FMC) completed the first round of meetings with 11 key ocean lines under an audit programme to see how they are serving domestic exporters
The regulator said its Vessel Operating Common Carrier (VOCC) audit programme is identifying lines that have an export strategy and encouraging companies without a strategy to establish one.
FMC chairman Daniel Maffei said, “Helping US export shippers is my top priority as chairman and I will ask my fellow Commissioners and Commission staff to utilise the full extent of our authority to ensure American agricultural producers and manufacturers reach overseas markets.”
In each meeting, the VOCC audit team discussed recent trends in carrier export numbers, placing a particular focus on agricultural exports.
Mr Maffei said, “The information the audit team is gathering from the shipping lines will be invaluable in identifying what carriers are doing well in carrying exports and where we must push carriers to do more. It’s one part of our comprehensive effort to encourage the ocean carrier industry to increase export service overall.”
Initial findings from the interviews will be presented to the Commission at a meeting later in Q2 and the FMC will aim to identify areas where individual carriers can increase access to and improve offerings.
There is mounting pressure on regulators to curb the power of the major shipping lines which benefited during the pandemic. A number of proposals have been doing the rounds with the White House approving an antitrust task force to tackle the container ship industry and as Riviera Maritime Media reported earlier this month, the US Senate has unanimously passed the bipartisan Ocean Shipping Reform Act that gives – among other things – the FMC greater oversight powers.
To improve exporter assistance services, Mr Maffei directed the re-assignment of a Commission employee to serve as an export expert in the Office of Consumer Affairs and Dispute Resolution Services (CADRS). Mr Maffei previously ordered the Bureau of Enforcement (BoE) and CADRS to give priority to any case involving an exporter above all other work.
In March, the BoE launched an examination of five independent ocean carriers calling at US ports to determine if their conduct related to the export trades is compliant with US statutes. That review is ongoing.
And earlier this month the FMC successfully imposed a penalty of US$822,220 against German carrier Hapag-Lloyd as part of the ongoing dispute over demurrage and detention fees.
