Active investigations of significant regulated entities, successes in helping shippers resolve billing disputes, and how information technology upgrades will improve the ability to serve the public were all topics of discussion during the open session of yesterday’s meeting of the Federal Maritime Commission.
The Director of the Bureau of Enforcement, Investigations, and Compliance (BEIC) reported that Commission enforcement personnel are subpoenaing information and deposing witnesses as part of major investigations examining potentially unlawful behavior by regulated entities. BEIC has prioritized investigations of possible wrongdoing by common carriers or marine terminal operators where the alleged misconduct negatively impacts the industry or causes market distortion. The BEIC Director noted that such investigations are complex undertakings and that BEIC is developing policies, procedures, and additional capabilities necessary to successfully examine and prosecute these cases.
BEIC is also prioritizing reviewing any allegations of misconduct involving the recent work stoppage at ports on the U.S. East and Gulf Coasts with the intent of prosecuting instances of unlawful conduct. The BEIC Director reminded common carriers and marine terminal operators that retaliation against parties who file complaints at the Commission is a separate distinct offense under statute that carries serious consequences. Chairman Daniel B. Maffei and each of the Commissioners reiterated that the Commission will not tolerate retaliatory conduct.
The Charge Complaint process established by the Ocean Shipping Reform Act of 2022 (OSRA 2022) provides the public with a simplified way to challenge what they believe is an erroneously issued invoice. Filing a Charge Complaint initiates an informal process at the Commission, meaning it takes place outside of a formal adjudicatory proceeding. Charge Complaints are investigated by BEIC and could result in a recommendation that the Commission issue an Order to Show Cause, which could initiate a formal proceeding. Many Charge Complaints are settled to mutually agreeable terms during the investigatory phase of the process.
As of September 30, 2024, common carriers have voluntarily waived or refunded $3,282,928.77 in charges raised by the Commission over a two-year period. This sum does not represent invoices waived or refunded when brought directly to the attention of a common carrier instead of by filing a Charge Complaint at the FMC. It also does not reflect any settlements agreed to or ordered as part of an adjudicatory proceeding at the Commission.
The Commission will initiate a rulemaking in 2025 establishing a permanent procedure for Charge Complaints.
The Commission’s Chief Information Officer discussed the significant upgrade of information technology infrastructure that is underway. The public and Commission employees will benefit from enhanced and more secure systems. It will also establish the foundations necessary for the Commission to make more use of the data it collects.
The Commission also discussed these same issues in closed session to allow for the presentation of business confidential and company specific information. No topics other than enforcement, Charge Complaints, and Information Technology were discussed in the closed session.
The Commission will next meet on December 4, 2024 to hear oral arguments examining jurisdictional issues raised in International Longshoremen’s Association v. Gateway Terminals, LLC; Charleston Stevedoring Company, LLC; Ports America Florida Inc.; Ceres Marine Terminals, Inc.; and SSA Atlantic, LLC (Docket No. 22-12). A recording of today’s meeting is available on the Commission’s YouTube channel.