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FMC Services Available During Supply Chain Challenges

The Federal Maritime Commission offers consumer assistance, enforcement, and litigation services that individuals and companies could find helpful in seeking relief from current supply chain challenges.

The Office of Consumer Affairs and Dispute Resolution Services (CADRS) can act as a facilitator to resolve business disputes or help identify solutions to some situations where the flow of cargo is interrupted.  CADRS specializes in achieving amicable solutions to immediate problems whenever possible and can serve as a resource for parties uncertain how to resolve issues with ocean shipments.

Individuals who believe they have been improperly invoiced for any charges, including detention and demurrage, can file a Charge Complaint with the Commission and have their claim rapidly reviewed.  This provides a quicker, less formal way to challenge a bill.

Parties seeking monetary damages and compensation for a dispute with a common carrier or marine terminal operator (MTO) can file a formal claim that will be heard by an Administrative Law Judge or a Small Claims Officer.  Disputes must be related to statutes the Commission administers such as those involving detention and demurrage and the Shipping Act.

The Bureau of Enforcement, Investigations, and Compliance will review any allegations that conduct of a common carrier or MTO violates Commission statutes and regulations.   

The Commission issued an advisory to all regulated entities on September 23, 2024, reminding them that they are bound to comply with all Commission administered statutes and regulations.  

Common carriers and MTOs must comply with all statutory and regulatory requirements, including rules governing tariffsservice contractsMTO schedules, the application of and invoicing for demurrage and detention, and all other fees and surcharges assessed.

Demurrage, detention, and all other fees and surcharges must be reasonable, clearly defined, and serve a specific measurable purpose.  As a reminder, notice of common carrier and MTO fees and surcharges must be given at least 30 days prior to taking effect.

FMC regulations require that demurrage and detention fees serve as legitimate financial incentives to encourage cargo movement. Pursuant to these requirements, the Commission will scrutinize any demurrage and detention charges assessed during terminal closures.

Demurrage and detention invoicing must be lawful. The Commission’s rule on such invoicing, implementing provisions of the Ocean Shipping Reform Act of 2022, became effective on May 28, 2024.  Invoices that do not include required information, or that are sent to the wrong entity, are not valid.

Parties who believe a common carrier or MTO has violated a statutory or regulatory requirement, particularly as it relates to the application of demurrage and detention charges, are encouraged to report that conduct to the Commission. 

The Federal Maritime Commission will prosecute any violations of the law to the fullest extent permitted.  To report unlawful actions or to file a complaint, individuals or entities can:

  • File a formal complaint proceeding  for adjudication before the FMC’s Office of Administrative Law Judges.
  • Report allegations of violations with the Commission’s Bureau of Enforcement, Investigations, and Compliance. Based on the information received, a formal investigation may be launched.
  • Provide concerns and information for the benefit of the Commission’s knowledge at complaints@fmc.gov.

The Commission has and will continue to directly communicate with regulated entities on their responsibilities under the FMC’s laws and regulations. In addition, the FMC is actively engaged in outreach to affected stakeholder groups to provide a forum to discuss supply chain challenges.

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