FMC Chairman Proposes Amendments to Shipping Act
U.S. Federal Maritime Commission Chairman Richard A. Lidinsky has proposed to a House subcommittee changes in the Shipping Act of 1984 which would allow the agency to resolve disputes between shipping lines and shippers.
Included in the proposed changes to House Subcommittee on Coast Guard and Maritime Transportation are as follows:
- Amend the Shipping Act's stated purposes to include protecting American importers, exporters and consumers.
- Amend the general prohibitions list to prohibit ocean transportation equipment provides from engaging in unfair deceptive, or anticompetitive acts or practices.
- Modify the exclusive remedy limitations for service contract breaches to provide confidential initial dispute resolution, confidential mediation at the request of a party, or confidential and binding arbitration at the request of both parties.
- Prohibit (a) unfair or deceptive practices in ocean transportation, including practices involving excessive cargo rolling, canceling bookings, or imposing certain surcharges and (b) unreasonably refusing to accept third-party equipment.
- Address Internet scams targeting consumers moving household goods by giving the FMC the ability to go after companies that advertise themselves as ocean transportation intermediaries if they are not bonded or licensed by the FMC.
- Increase maximum civil penalties against persons violating the Shipping Act.