Transport, Trade, and Regulation News

The Port of Houston is changing its tariff to align with ocean carriers who are no longer charging detention and demurrage fees when terminal gates are closed, but it’s also increasing its own fees to incentivize cargo movement.

Currently, there is no US regulatory agency with direct authority to oversee application of rail storage fees under ocean carriers’ through bills of lading and to determine whether those charges are assessed properly.

The now-bankrupt retailer alleges the ocean carrier failed to provide the full vessel space it contracted for, then charged much-higher premiums to ensure its cargo wasn’t rolled.

Funds will go to projects that focus on reducing emissions from port-related truck idling, particularly in communities adjacent to ports.

The FMC is poised to implement potentially far-reaching changes in how detention and demurrage fees are assessed, a move that could cloud how to incentivize the movement of cargo through US marine terminals.

The scale of PSA International’s ambitions to expand its reach beyond its 60 container port terminals by leveraging the acquisition of a non-asset-based global logistics provider parallels Maersk’s own integrator ambitions.

The legislation would give the Federal Maritime Commission the direct ability to block carrier and terminal agreements it views as anticompetitive, without the need for a court order.

BIMCO’s head of Americas called for changes to the Carbon Intensity Indicator that would make the new regulation from the International Maritime Organization “fit for purpose.”

An advanced sense of “pragmatism” is needed for shippers and nations to cope with changes wrought by war and climate change, attendees at the Journal of Commerce’s Breakbulk & Project Cargo Conference were told.

The Intermodal Association of North America is adding its voice to the chorus of opposition against a federal push to reclassify independent workers.

The inclusion of shipping in Europe’s ETS carbon pricing mechanism is almost a done deal, with legislators having one more bureaucratic hurdle left to clear.

Growing tension among shippers, ocean carriers, and logistics service providers over free time fees has ratcheted up with Hapag-Lloyd accusing subcontractor CSX of profiting from rail demurrage.

The main advocacy group for US ports said the step change in port funding over the coming years will mitigate future congestion and allow for better cargo flow.

The long-term impact of container shipping’s moment in the sun — and in the crosshairs of regulators — will come down to which of two starkly divergent versions of reality carries sway in Washington in the coming months.

The assessment of storage fees inside a terminal creates competitive pressures among marine terminal operators, their container line customers, and the importers that contract with container lines.

Looming federal rulemaking over detention and demurrage billing policy continues to compel container lines to refrain from assessing free time fees on weekends and holidays, with Hapag-Lloyd the latest to make such a change.

Ocean carriers are already rushing to fall in line with pending FMC rulemaking, with a string of liners announcing in recent weeks they will cease charging detention and demurrage on containers that cannot be picked up or dropped off when a terminal is closed for business.

While it may be easy to understand the desire to fix container shipping’s perceived problems with government intervention, no amount of reform would have prevented the shortage of capacity or record freight rates during the pandemic disruption, writes analyst Lars Jensen.

NSAC says it supports reasonable detention and demurrage practices, but wants to correct “abuse” of the system by regulating that rail operators directly invoice ocean carriers for storage, not importers.

The pressure on regulators to put a price on carbon emissions is growing as carriers ramp up investments in zero-carbon ships, which make their brands appealing to environmentally conscious shippers but expose them to lower-cost competition.

Data from eBLs issued via GSBN’s infrastructure will also be used to electronically release SABIC cargo at Hutchison and PSA terminals in Asia.

The fast-moving developments around changes to detention and demurrage billing are happening amid an ongoing rulemaking process by the FMC around the assessment of such charges to consignees and their drayage representatives.

The legislation aims for faster development of uniform data-sharing standards, while the co-sponsors say they were also motivated to protect US shipping interests from what they view as China’s malign influence over the supply chain.

The testimony comes as two House members prepare legislation designed to update OSRA-22 and another congressman restarts an effort to remove the antitrust immunity of ocean carriers.

HMM’s decision to immediately cease charging demurrage fees at closed terminals comes as the US Federal Maritime Commission is finalizing rulemaking around free time billing practices.

The legislation also aims to provide a boost for US exporters by prioritizing getting their products into foreign markets and better defending them against container rate increases and detention and demurrage fees.

German unions demanding inflation-busting wage increases walked off the job Monday, bringing the country’s transport system to a halt.

US Federal Maritime Commission Chairman Daniel Maffei went before Congress Thursday to field questions about the agency’s budget, slow-going rulemaking, and whether new amendments are needed for shipping reform.

Ahead of a June deadline to issue new rulemaking on detention and demurrage billing, the Federal Maritime Commission is seeking clarity from carriers and terminals about billing shippers when container pickups and drop-offs are not possible.

Maersk in April will stop collecting detention and demurrage fees on days terminals are closed and shippers can’t pick up or drop off containers, a move yet to be followed by competing ocean carriers.

Breakbulk shippers and logistics providers have several proposals for changes to ISPM 15 mitigation and enforcement measures pending approval from the USDA’s Animal and Plant Health Inspection Service.

Breakbulk industry executives warn new rules aimed at reducing vessel emissions could incentivize vessel operators to implement measures that increase emissions in other areas of the supply chain.

The independent equipment providers say upending the current business model would create additional chassis shortages and invoicing problems that would inconvenience cargo owners.

The bill would heighten transparency into regulatory penalties levied against ocean carriers and marine terminal operators and draw a sharp line on the involvement of China-based entities in US shipping.

An advisory group created by the FMC two years ago is pushing the agency to act on several key issues, but some members have expressed frustration over the response from regulators.

In approving the $31 billion merger, the Surface Transportation Board rejected arguments from the FMC and competing railroads that the deal would harm US ports and shippers.

Wan Hai is now looking at a larger civil penalty than it faced nearly a year ago following an investigation into detention charges the carrier assessed in the spring of 2021.

The Federal Maritime Commission is preparing to ask for another big increase in its budget as it looks to increase market surveillance and enforce OSRA-22.

Stripped of antitrust protection that is under scrutiny on both sides of the Atlantic, as well as the legal certainty of being able to operate within alliances and perhaps even vessel-sharing agreements, ocean carriers could be all but forced to operate independently, writes Peter Tirschwell.

The Ocean Carrier Equipment Management Association says the FMC’s chief administrative judge erred in issuing a summary judgement against the group because key facts are still in dispute.