The Federal Maritime Commission’s final rule concerning “Definition of Unreasonable Refusal to Deal or Negotiate with Respect to Vessel Space Accommodations” is an important step in providing clarity and a brighter line on common carriage shipping obligations.
I am certain that the FMC will be vigilant in assessing all relevant factors in determining whether a violation has occurred.
The pandemic illustrated how important shipping is to our nation and our economy. Just as apparent is the guiding principle that global trade must flow both ways. This means that our U.S. exports must have shipping accommodations and access to global markets. The basis for protections of common carriage have been codified since the Shipping Act of 1916. The Ocean Shipping Reform Act of 2022 passed with overwhelming bipartisan Congressional support, emphasized that shippers must have access to transportation services and made clear the responsibility the Commission must act vigorously to protect the shipping public to especially include exporters.
The global shipping services our country relies on are predominantly foreign owned and operated, and while I believe they have operated in good faith and responsibly, their actions in denial of service could have severe repercussions on U.S. business interests. Our manufacturers and farmers must have assurances that their products and goods will have safe, secure, and reliable ocean transport services to international markets.
This final rule ensures that these principles will be upheld, and when appropriate, enforced.
Carl W. Bentzel is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.