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Saturday, October 24, 2020

Federal Maritime Commission News

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FMC Grants Temporary Relief Requested by CMA CGM

The U.S. Federal Maritime Commission voted to grant the temporary relief sought by CMA CGM from certain service contract and tariff filing requirements following last month's cyber attack affecting the carrier's servers.Earlier this month, the French shipping company sought relief from Commission regulations as part of its efforts to respond to a malicious cyberattack it experienced in September.The Commission said Wednesday it granted the request for exemption from relevant service contract filing requirements and relevant tariff publishing requirements.

Dennis Lombardi (Photo: IICL)

Lombardi to Succeed Blust as IICL President

Trade association the Institute of International Container Lessors (IICL) announces that Dennis Lombardi will become president of the association, effective January 1, 2021. Lombardi replaces Steven R. Blust, who will be retiring from his role as president, but will stay on with IICL as a senior advisor. “Dennis Lombardi brings to this position the right balance of operations expertise, business acumen and extensive experience as an active advocate for the industry. We are confident he will serve as a strong leader who will guide the organization as the industry continues to evolve…

“The mis-declaration of hazardous materials is an area where we work in cooperation with Customs and Border Protection and the U.S. Coast Guard. The FMC’s Shipping Act concern is the market fraud when a shipper declares to a common carrier in its shipping documents that the tendered cargo is some innocuous variety, when the cargo is properly categorized as hazardous; thereby receiving a lower freight rate.”
– Michael A. Khouri, Chairman, Federal Maritime Commission (FMC)

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FMC: Ocean Shipping Challenges Abound

Since early Spring 2020, American consumers have received a practical education in supply chain operations. One lesson is that it takes more than simply going online and clicking a “Buy Now” button for goods to show-up on our front porches. While the networks and systems that deliver commodities from around the globe might have been stretched as a result of COVID-19 related impacts, the men and women who move the freight have worked selflessly and tirelessly to meet consumer and manufacturing demand.Early on in the response to COVID-19…

(Photo: Port of New York & New Jersey)

FMC Considering CMA CGM Petition Following Cyber Attack

The U.S. Federal Maritime Commission (FMC) said it is considering a petition filed by French container shipping group CMA CGM requesting temporary exemption from certain filing requirements following last month's cyber attack affecting the carrier's servers.In its petition, CMA CGM and affiliated companies seek an exemption from certain tariff publications and service contract filings that were impacted by the recent cyber attack, FMC said, adding it will accept public comments on the request through October 15.CMA CGM…

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Cruising Pause Has Major Impact on Florida's Economy

The cruise industry has certainly been among businesses hardest hit by the economic impacts of COVID-19. But the industry-rocking fallout extends well beyond the cruise lines themselves, extending through cities throughout Florida where canceled sailings are resulting in loss of revenue to public ports, government at all levels, and private companies that do business with cruise lines.These conclusions are contained in the latest Fact Finding 30 report that was released today by Fact Finding Officer Commissioner Louis E. Sola, of the Federal Maritime Commission.

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CMA CGM to Impose Emergency Surcharge at Cape Town Port

CMA CGM, the world's fourth-largest container shipping line, will impose emergency congestion surcharges at Cape Town port in July due to disruptions caused by the coronavirus, it has told customers.From July 1 until further notice, it will impose a surcharge of $550 for 20-foot containers and reefers and a $1,100 surcharge for 40-foot containers and reefers, CMA said in the letter dated June 17 that was seen by Reuters.Western Cape province, which includes Cape Town, is the epicenter of South Africa's coronavirus outbreak…

American Steamship Company’s M/V American Courage upbound on the Cuyahoga River in Cleveland, Ohio with a load of taconite from the iron ranges on Lake Superior for ArcelorMittal Cleveland, one of the most productive integrated steel mills in the world. (Photo Credit: Thomas Rayburn)

Great Lakes Shipping Companies Navigate Market Challenges Ahead

For U.S.-flag shipping on the Great Lakes, 2019 was a good year. Total cargos were 90 million net tons, up 7.5% over 2018 and 4.6% over the five-year average. 49.7 million net tons of iron ore were shipped, up 8.5% over 2018 and 11.7% over the five year. Limestone was up 9.7% over 2018 and 10.2% over the five-year average. In 2010 and 2011, coal and limestone were each about 20 million net tons. Since then, coal has shown a steady decline as coal-fired power generating plants…

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FMC to Investigate Alleged Discriminatory Canadian BWMS Regulations

The U.S. Federal Maritime Commission (FMC) said it will initiate an investigation into whether ballast water regulations proposed by the Government of Canada discriminate against U.S. flag vessel operators in the Great Lakes and St. Lawrence River.The FMC commissioners voted unanimously to accept a petition filed by trade group the Lake Carriers’ Association (LCA) asking the commision to perform the investigation and examine the detriment and harm to the U.S. flag fleet resulting…

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Will FMC's New Demurrage & Detention Rules Aid NVOCCs?

On April 28, 2020, the Federal Maritime Commission (FMC) released the long-awaited interpretive rules in Docket No. 19-05 relating to how ocean common carriers may lawfully apply demurrage and detention charges to exporters, importers and ocean transportation intermediaries, including Customs brokers in certain circumstances and still be compliant with the “reasonableness” requirement of 46 U.S.C § 41102(c). The analyses and guidance in the interpretive rules have been in high…

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FMC Issues New Guidance on Detention and Demurrage

The U.S. Federal Maritime Commission has issued new guidance about how it will assess the reasonableness of detention and demurrage regulations and practices of ocean carriers and marine terminal operators (MTOs) under 46 U.S.C. 41102(c).The final rule, “Docket No. 19-05, Interpretive Rule on Demurrage and Detention under the Shipping Act”, will become effective upon its publication in the Federal Register.Under the new interpretive rule, the Commission will consider the extent…

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FMC Eases Requirements for Service Contract Filings

The U.S. Federal Maritime Commission voted to temporarily allow parties to file service contracts up to 30 days after they take effect, as a measure to relieve COVID-19 impacts to the supply chain.The Commission published an order today making the relief effective immediately and lasting through December 31, 2020.The benefits of service contract filing relief were identified by the Fact Finding 29 Supply Chain Innovation Teams working under the direction of Commissioner Rebecca Dye.“The criticality of supply chains is something the Federal Maritime Commission understands well…

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COVID-19 Impacts on Demurrage and Detention

What might not be so obvious in this COVID-19 environment, which we have grown to associate with shortages, is that counterintuitively there are issues beginning to appear dealing with the opposite situation. The Journal of Commerce has reported that “[t]he container shipping industry is marshaling a response to signs of a building import backlog as some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential…

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FMC Investigating COVID-19's Suply Chain Impacts

The Federal Maritime Commission issued an order authorizing Commissioner Rebecca Dye to identify operational solutions to cargo delivery system challenges related to Coronavirus-19.The Order notes that “Recent global events have only highlighted the economic urgency of responsive port and terminal operations to the effectiveness of the United States international freight delivery system. Given the Commission’s mandate to ensure an efficient and economic transportation system for ocean commerce…

Mario Cordero (Photo: AAPA)

AAPA Elects Cordero as Board Chairman

The American Association of Port Authorities (AAPA) has elected Mario Cordero, executive director of California’s Port of Long Beach, to serve as the association’s next Chairman of the Board.Cordero will be installed as Chairman on the final day of AAPA’s 2020 Annual Convention, set for September 13-16, in Québec City, QC, Canada. He will assume the AAPA chairmanship from Gary G. Nelson, executive director of Washington State’s Port of Grays Harbor, who began his term on October 15…

FMC Offices Closed due Partial Federal Shutdown

The Federal Maritime Commission is closed effective Wednesday, December 26, 2018 as part of the partial federal government shutdown due to a lapse in appropriations. The Commission will resume normal operations when appropriations legislation is enacted and the federal government reopens.With the exceptions of Acting Chairman Michael A. Khouri and Commissioner Rebecca Dye, who are Presidentially-appointed, Senate-confirmed officials, all Commission employees have been placed on furlough and are prohibited by law from performing any duties during the shutdown.

FMC Issues Notice to Passengers on Cuba Itineraries

The Federal Maritime Commission (FMC) is aware that passenger cruise lines that called Cuba have amended itineraries to comply with amendments made to the Cuban Assets Control Regulations announced in the Federal Register on June 5, 2019.Passengers with questions related to a voyage they have booked should contact their travel agent and/or cruise line directly.Cruise passengers should always carefully read their ticket contract, which states the cruise line’s obligations with respect to canceled voyages.

Image: Ocean Network Express (ONE)

4 Major Lines Jointly Launches EMA Services

Chinese state-owned shipping company COSCO Shipping Lines, Hong Kong container shipping company Orient Overseas Container Line (OOCL), Japanese/Singapore container shipping company Ocean Network Express (ONE) and Taiwanese ocean shipping company Yang Ming Marine Transport Corporation are to launch a new weekly Transatlantic service, East Mediterranean - America Service (EMA).The first commencing voyage is scheduled to operate on April, 2020, subject to Federal Maritime Commission (FMC) filing.The EMA service, jointly operated by the four lines, will consist of six Panamax vessels.

Photo coutesy of Port of Long Beach

LA, Long Beach Ports Strengthen Collaboration

The ports of Los Angeles and Long Beach Sign MOU to enhance competitveness. The newly approved memorandum of understanding (MOU) is an opportunity to explore five areas of additional cooperation that will enhance competitiveness: cargo transfer predictability, digital connectivity, cybersecurity, establishing metrics and workforce development.“Our two ports are the fastest way to move goods between Asia and U.S. markets and manufacturers,” said Port of Long Beach Executive Director Mario Cordero.

Attendees represent the competition authorities responsible for regulating international liner shipping in the world’s largest liner trade lanes.

Fourth Global Regulatory Summit Held at FMC

Senior government officials from the European Union (EU), the People’s Republic of China (PRC), and the United States met Wednesday at the Washington, D.C. headquarters of the Federal Maritime Commission (FMC) to participate in the Fourth Global Regulatory Summit.Attendees represent the competition authorities responsible for regulating international liner shipping in the world’s largest liner trade lanes. The delegations were led by Director Henrik Morch from the Directorate General for Competition of the European Commission and Deputy Director-General YI Jiyong of the Water Transport Bureau…

Image: North of England P&I Club

US Shutdown Impacts Shipping: North P&I Club

US Coast Guard and other federal agencies are operating at a reduced capacity following US government shutdown, said North of England Protecting and Indemnity Association (North P&I Club).Since 21 December 2018, the US Government has been in shutdown following the failure of Congress to agree federal funding. With no end in sight, it is the longest shutdown in US history, it said."We have not received any indications as yet that the shutdown is causing significant disruption to shipping," said a statement from North P&I Club.

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New OTI Rules Now in Effect

Non-vessel-operating common carriers (NVOCC) will now need their required bond, insurance or other form of surety and their Form FMC-1 (published tariff location) on file before the US Federal Maritime Commission (FMC) will issue their NVOCC license.This new requirement is one of several changes to Commission regulations governing ocean transport intermediaries (OTI) contained in a Final Rule, “Licensing, Registration, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries” (Docket No.

U.S. Secretary of Transportation, The Honorable Elaine L. Chao (Photo: USDOT)

Chao to Receive AOTOS Award

The United Seamen’s Service  announced that U.S. Secretary of Transportation, The Honorable Elaine L. Chao, will receive the 2019 Admiral of the Ocean Sea Award based on her career-long commitment to the maritime industry. The other, previously announced recipients are James Given, President of the Seafarers International Union of Canada; Anil Mathur, President and CEO of Alaska Tanker Corp.; and Joseph Pyne, Chairman of the Board of the Kirby Corporation.The award will be presented at the 50th annual AOTOS gala at the Sheraton New York Times Square Hotel, New York City, on November 1, 2019.

Image: Hyundai Merchant Marine

THE Alliance Welcomes HMM

The members of THE Alliance, Hapag-Lloyd, Ocean Network Express, and Yang Ming have welcomed Hyundai Merchant Marine (HMM) as a new core member of THE Alliance.With the US Federal Maritime Commission (FMC) acceptance of HMM membership, THE Alliance offers an attractive upgraded product package and it will be launched around April 1st, 2020.Based on the existing comprehensive network of THE Alliance, the newly en-hanced product package will offer increasing frequency particularly from South East Asia…

FMC Steps Up Oversight in the Commonwealth

Commission Expresses Concerns about Puerto Rico Terminal Facilities Agreement.An agreement filed at the Federal Maritime Commission allowing a joint venture between two adjacent terminals at the Port of San Juan, Puerto Rico, will go into effect on August 29. However, concerns about the agreement and its impact on the marketplace will lead the FMC to adopt a more vigorous oversight plan than its traditional monitoring program.Under the terms of the Puerto Nuevo Terminals LLC Cooperative Working Agreement (FMC Agreement No.

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FMC Commissioner Sees Some Normalcy Returning to Shipping

A U.S. Federal Maritime Commissioner said he sees some normalcy returning to trans-Pacific shipping amid widespread upheaval brought on by the coronavirus outbreak.Many Chinese manufacturing and logistics services have been severely hampered by the COVID-19 pandemic, in some cases forcing ocean carriers to cancel services to and from China and the U.S.The Federal Maritime Commission (FMC) said it has been monitoring levels of blanked sailings and conferring with ocean carrier representatives about levels of service and the potential resumption of normal trade…

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COVID-19 and Supply Chain Implications for Ocean Shipping

Only 10 days ago, reports indicated that China cargoes were returning to pre-coronavirus levels, and there appeared to be light at the end of the tunnel. Today, however, a barrage of new headlines has underscored the impact on the rapidly changing global supply chain, including in the United States. In addition to the aggressive spread of the novel coronavirus (COVID-19), new economic developments indicate a decreased trend in global manufacturing. Changes in local economies negatively impacting employees reflect corresponding changes in consumer buying patterns.