Transport, Trade, and Regulation News

There is nothing fundamentally wrong with countries protecting their shipping interests, but there are always ripple effects on the commercial side that benefit some stakeholders and disadvantage others, writes analyst Lars Jensen.

The regional air quality board is pushing back against what it says is “grossly inaccurate rhetoric” from transport interests who say a cap on Southern California cargo volumes may be on the horizon.

The move is part of an ongoing effort by the FMC to bolster the oversight of regulated entities through “informed compliance,” an agency spokesperson said.

Two congress members, backed by terminal operators, are insisting maritime regulators follow the congressional intent that underpins OSRA-22 or risk “severe” disruptions to the US supply chain.

The carrier is looking to have an earlier ruling by the FMC reversed, arguing that the agency turned the incentive principle guiding cargo flow through US marine terminals “on its head.”

With a formal request for information, Federal Maritime Commissioner Carl Bentzel believes the agency is introducing a more “transparent and inclusive process” with stakeholders when it comes to policymaking.

The proposed rulemaking shows how far the pendulum of power has swung in favor of shippers seeking to hold carriers accountable for practices that occurred during the pandemic, but which were rarely experienced prior to that period, writes Peter Tirschwell.

The clash between shippers and container lines highlights a major challenge for the FMC in finalizing rulemaking on when a carrier can refuse to serve shippers, most notably the risk that it could create a rule that’s so commercially restrictive that it’s unconstitutional.

The National Shipper Advisory Committee saw some good in the FMC commissioner’s ideas, but said without a clear path for implementation, businesses will continue to be hurt by detention and demurrage charges.

Stalled since May, the Ocean Shipping Reform Technical Act of 2023 may never be taken up by the House of Representatives as regulators are still struggling to implement last year’s original legislation.

The Hamburg-based carrier is testing a prototype container with a steel floor that is easier to repair and clean than traditional wooden floors, decreasing the chance of cargo contamination, particularly invasive pests.

The disruption laid bare the limits the Trudeau government will exercise to push both sides to a deal that was ratified Friday by longshore union membership at the ports of Vancouver and Prince Rupert.

The rulemaking has underscored sharp divisions in the industry on whether the maritime regulator needs to take a heavier hand with liners following complaints by shippers.

Inclusion in the European Union’s emissions trading system will affect not only the cost of shipping to and from the EU, but will likely put upward pressure on pricing for cargo that doesn’t touch the EU at all, writes analyst Lars Jensen.

The National Association of Waterfront Employees says terminal operators are potentially on the hook for “tens of billions of dollars” to upgrade their cargo handling equipment and allowing them to use tax-deferred funds would increase their purchasing power.

The membership of the International Longshore Warehouse Union Canada has rejected a four-year contract at the ports of Vancouver and Prince Rupert, which employers say would have included a 19.2%. compounded wage increase.

The FMC commissioner wants to implement uniform empty return dates and define “container availability” as when the container is available for pick up, among other proposals.

The rejection of last week’s tentative contract deal by a caucus of ILWU Canada narrows the prospects of a resolution without one imposed by Parliament through back-to-work legislation.

 The carrier is the target of another shipper complaint regarding demurrage and detention fees, this time the indirect result of empty container congestion at the Port of New York and New Jersey.

Although there remain multiple obstacles to further legislation being signed into law, bipartisan support that shipping reform attracted in 2021 and 2022 has led to a situation in which certain additional provisions stand at least a 50-50 chance of being enacted this year, writes Peter Tirschwell.

The pressure is on the Trudeau government to use its political capital to force a deal between employers and longshore workers at the ports of Vancouver and Prince Rupert after the latter began a strike Saturday.

US inventory levels are still high, depressing demand for trucking services and keeping a rebound in check, analysts said at the SMC3 Connections conference.

The funds will come from the Bipartisan Infrastructure Law, with three separate grant opportunities soliciting applications under a single program called the Multimodal Project Discretionary Grant program.

Scrutiny of China’s access to US maritime data is rising, with a US congressman targeting China’s state-sponsored shipping platform in a Defense Department budget amendment.

Legislation now in Congress would put commercial shipping under the oversight of the US Clean Air Act and set increasing targets for cutting carbon dioxide emissions.

While the FMC has jurisdiction over ocean carriers, it cannot regulate railroads simply because of their association with container lines, CSX said in a motion to disentangle itself from a demurrage complaint.

The carrier was found to have willfully engaged in retaliation against a Florida-based retailer who had sought relief for $40,000 in detention fees.

The International Maritime Organization has an opportunity next month to set more aggressive goals to slash carbon emissions, which could send a powerful signal to stakeholders needing direction, writes Journal of Commerce Executive Editor Mark Szakonyi.

Two stevedoring companies are looking to the Federal Maritime Commission to stop what they say is an unlawful access fee at the Port of Baltimore after one of them was invoiced $1.2 million.

The American Trucking Associations said Julie Su’s track record of supporting California’s A.B. 5 law and a lack of support for the trucking industry has failed to reassure them she would be a successful Secretary of Labor.

Container carrier Evergreen argues the FMC ignored “critical facts” when applying the incentive rule in a December case and, in doing so, inadvertently set a precedent that detention cannot be charged on a holiday weekend.

The lack of security around the supply of alternative fuels in a highly fragmented market will undermine ocean carrier efforts to decarbonize the industry, according to the world’s largest container ship owner.

Although the container shipping order book is the highest it has been in many years and demand remains subdued, the ground is shifting under the ocean market in new and unfamiliar ways, writes Peter Tirschwell.

Shippers want Congress to address their inability to challenge rail demurrage fees when they contract for merchant haulage, but finding a solution will be tricky, writes Journal of Commerce Executive Editor Mark Szakonyi.

The carrier will pay the penalty to avoid the Federal Maritime Commission launching a formal investigation into whether it violated US detention and demurrage shipping laws.

The bipartisan legislation does not identify specific countries that manufacture the cranes that would be subject to inspection, but a statement from the co-sponsors specifically mentions China.

Rail storage has been at the forefront of recent regulatory discussion as the FMC solidifies its final rulemaking on detention and demurrage, with shippers wanting ocean carriers to be the billing party for such charges.

The growth in participation in FLOW is a signal that the private sector views the voluntary nature of the project as more amenable than governmental data-sharing mandates or legislation.

Rail storage fees continue to be a point of contention for shippers and the National Shipping Advisory Committee wants the FMC to step up and take ownership.

The change comes in advance of the FMC’s final rule on detention and demurrage billing that is due to be published in mid-June and has already generated pushback from marine terminal operators.