News
The U.S. Federal Maritime Commission (FMC) issued a Notice of Inquiry (NOI) last week that will examine allegations that Vessel Operating Common Carriers (VOCCs) may be attempting to hold companies financially responsible for transportation services that they did not contract for and may not legally be required to pay.
Comments filed in Docket No. 19-05, Interpretative Rule on Detention and Demurrage Under the Shipping Act, raised concerns about the billing practices of ocean carriers. Allegations were made that VOCCs have expansively defined ''merchant'' in their respective bills of lading to include persons or entities with no beneficial interest in the cargo and who had not consented to be bound by the terms of the underlying bill of lading.
The NOI solicits comments from interested members of the public willing to share their insights. Concurrent with the public comment period, the FMC's Bureau of Enforcement will seek specific information from certain container shipping lines serving the U.S. foreign trades.
The NOI seeks information related to how VOCCs apply the term ''Merchant'' in their bills of lading.
The NOI also asks whether ocean carriers have sought to enforce the definition of ''Merchant'' against third parties that have not consented to be bound by, or otherwise accepted, the terms of the bill of lading.
