FMC Hikes Penalty for Shipping Violations to $14,149

Inflation has pulled the maximum penalty for not knowing and willful violation of the Shipping Act of 1984, Commission regulation or order (46 U.S.C. 41107(a)) to $14,149 per occurrence, as of January 15, 2023.

If a person knowingly and willfully violates Shipping Act of 1984, or Commission regulation or order, then they could face a maximum civil penalty of up to $70,752 per occurrence.

The FMC is responsible for enforcing the Shipping Act and has the authority to investigate alleged violations and assess penalties for noncompliance. The FMC may take various enforcement actions, including the issuance of warning letters, formal orders, and civil penalties, to ensure compliance with the Shipping Act's requirements.

Violations of the Shipping Act can take many forms, including unfair practices, discriminatory treatment, and failure to adhere to regulatory reporting requirements. The FMC may investigate alleged violations and may bring an action against the alleged violator if it determines that a violation has occurred.

Experts at Atlantic Pacific Tariffs Inc. are always available for consultation regarding compliance issues, providing clients with up to 2 hours per month of free consultation services.

Prospective clients may also avail of a FREE 30-minute Zoom-based consultation (English and Spanish available). Email us today at info@aptariffs.com.

FMC Releases New Video on How to File Complaints

The Federal Maritime Commission (FMC) has released a new video aimed at educating shippers and carriers about the charge complaint process.

The 20-minute video explains the steps involved in filing a complaint, required documentation, deadlines, and the role of the FMC in resolving disputes. The video also includes examples of situations in which the charge complaint process can be used, as well as tips for preparing and submitting a complaint.

The charge complaint process is a tool available to shippers and carriers to resolve disputes related to charges assessed by carriers. The FMC hopes that these resources will help shippers and carriers better understand the charge complaint process and how it can be used to resolve disputes related to shipping charges.

The FMC has been holding public forums to discuss issues related to the charge complaint process and other issues related to the maritime industry. The FMC encourages shippers and carriers to watch the new video and to contact the FMC if they have any questions about the charge complaint process or other issues related to the maritime industry.

FMC Chairman Urges Congress to Increase Budget

On March 24, 2023, the Chairman of the Federal Maritime Commission (FMC), Daniel B. Maffei, testified before the Subcommittee on Commerce, Justice, Science, and Related Agencies of the House Appropriations Committee to review the FMC's Fiscal Year (FY) 2024 budget request. In his testimony, Chairman Maffei highlighted the FMC's role in promoting a fair and efficient ocean transportation system and emphasized the need for additional resources to address the challenges faced by the industry. Chairman Maffei began his testimony by discussing the impact of the COVID-19 pandemic on the maritime industry. He noted that the pandemic has disrupted global supply chains and created significant challenges for shippers and carriers. He also highlighted the FMC's efforts to address these challenges, including its work to facilitate the movement of critical medical supplies and equipment. Chairman Maffei then turned to the FMC's budget request for FY2024. He noted that the request includes $34 million in budget authority, which represents an increase of $3.3 million over the FY2023 enacted level. He emphasized that these additional resources are necessary to enable the FMC to carry out its statutory responsibilities, which include regulating ocean carriers, marine terminal operators, and ocean transportation intermediaries. Chairman Maffei also discussed several initiatives that the FMC plans to undertake in FY2024. These include:

• Continuing the FMC's work on the implementation of the agency's Final Rule on Demurrage and Detention, which went into effect in April 2021.

• Enhancing the FMC's monitoring and enforcement efforts related to container availability and service contract compliance.

• Conducting a review of the FMC's regulations related to ocean transportation intermediaries to ensure that they are consistent with current industry practices.

• Addressing the challenges faced by small businesses in the maritime industry, including through the FMC's Small Business Innovation Research program.

Chairman Maffei emphasized the FMC's commitment to promoting a fair and efficient ocean transportation system. He noted that the FMC's efforts are focused on ensuring that shippers and carriers are able to compete on a level playing field and that consumers are able to access the goods and services they need at reasonable prices. Chairman Maffei's testimony before Congress highlights the challenges faced by the maritime industry and the FMC's efforts to address these challenges. The FMC's FY2024 budget request includes additional resources to enable the agency to carry out its statutory responsibilities and to undertake important initiatives aimed at promoting a fair and efficient ocean transportation system. The FMC's commitment to ensuring that shippers and carriers are able to compete on a level playing field is critical to the health and vitality of the U.S. economy, and the agency's work will continue to be closely monitored by Congress and industry stakeholders alike.