Transport, Trade and Regulation News

Encouraging cargo owners to pay more for green ocean services remains a challenge, but carriers are reporting growing momentum from shippers aiming to cut Scope 3 emissions.

The European Commission’s announcement that the Consortia Block Exemption Regulation was “no longer fit for purpose” and will not be renewed when it expires next April blindsided most in the container shipping industry who were expecting a revision of the rule rather than its scrapping.

Following a review process launched in August last year, the European Commission reached an emphatic conclusion that the Consortia Block Exemption Regulation (CBER) “no longer promotes competition in the shipping sector.”

To comply with the European emissions trading system, ocean carriers will essentially need to become experts in carbon credit trading, on top of monitoring, verifying and reporting CO2 emissions.

The Federal Maritime Commission said its enforcement agency does not have a case against the ocean carrier over a congestion surcharge complaint from a shipper.

If shippers found the post-IMO 2020 bunker fuel formulas confusing and misaligned across ocean carriers, just wait until they see the surcharges linked to Europe’s new emissions trading system, says analyst Lars Jensen.

While three companies jointly control some operations at marine terminals at Savannah and Charleston, they are not considered marine terminal operators, an FMC judge has ruled.  

Use of the little-known arm of the FMC comes as shippers are increasingly turning to US maritime regulators to perform a consumer protection function in the aftermath of pandemic-linked disruptions and broad shipping reform that became law 15 months ago.

While the South Carolina Ports Authority cited the “urgency and importance” of the Leatherman terminal issue to the state and regional economies, getting on the Court’s docket is a daunting task.

The concept of widespread use of a hedging tool continues to face an uphill battle within the container sector years after it was introduced, especially among carriers whose buy-in is considered essential to confer legitimacy on the fledging market.

Shippers more than tripled their formal complaints in fiscal year 2022, emboldened by the maritime regulator’s sharpened focus on how ocean carriers interact with their customers.

Small onboard nuclear reactors could ultimately be the lowest-cost method of decarbonization as shipping competes with other thirsty industries for sustainable net-zero fuels, according to energy and investment analysts.

Washington is urging NVOs and forwarders to “know their customer,” a steep challenge for co-loaders who bundle multiple shipments for multiple customers into a single container, writes Journal of Commerce Executive Editor Mark Szakonyi.

The bids would require carriers to quote a negotiated “green premium” that cargo owners would pay to transport the containers on ships powered by zero-carbon fuels.

The new allegation against Yang Ming comes less than a week after the carrier settled a dispute with another US importer, also over allegations it failed to honor vessel capacity commitments.

Freight brokers, load boards, technology providers and law enforcement are attempting to contain the growing threat of truckload cargo theft and the fraudulent schemes that underpin it.

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.