News
The U.S. Federal Maritime Commission (FMC) has approved a final report on “Vessel Capacity and Equipment Availability in the United States Export and Import Trades” prepared by Commissioner Rebecca F. Dye.
The report concluded that although capacity conditions in the U.S. trades have stabilized, certain underlying problems revealed during the commission's investigation should be addressed. It also concluded that the most effective long-term solutions to the commercial problems experienced by U.S. exporters and importers this year will be developed by ocean carriers working closely with their customers within a framework organized by the Commission.
The Ocean Shipping Reform Act of 1998 contained confidential contracting provisions that changed the way ocean carriers and their shipper customers conduct business. Currently, 99 percent of the cargo carried in the U.S. transpacific trade is carried under service contracts. Recent tensions between ocean carriers and their customers resulting from vessel capacity and equipment shortages revealed a lack of mutual understanding between the parties regarding their contractual obligations.
In a bid to address problems raised in the report, the commission has created various working groups which focus attention on the most pressing issues and provide prompt solutions for commercial disputes between shippers and carriers.
