News
U.S. shippers have responded positively to the new opportunity, established via the Ocean Shipping Reform Act of 2022, to challenge carrier charges by filing charge complaints at the Federal Maritime Commission (FMC). Since the law's enactment in June, the commission has received more than 175 filings. The process being shared today clarifies the interim steps the commission will take under this new authority.
Under the announced process, a charge complaint that is perfected with sufficient information and details is promptly investigated by FMC staff in the Office of Investigations. The common carrier will be contacted by commission staff as part of the investigation and asked to respond to the complaint, and justify the charge or fee being investigated. Both parties are notified at the conclusion of the investigation.
If the investigation supports a finding that the common carrier's charge is not in compliance, the Office of Enforcement will recommend that FMC issue an order to show cause to the common carrier to formally adjudicate the charge complaint. The common carrier receiving the order must show why it should not be ordered to refund the fees or charges paid or waive the fees in question. The FMC will issue a decision on the order to show cause, and for charges not in compliance with the law, will order a refund or waiver. The commission may then also initiate a separate civil penalty proceeding with its administrative law judge for consideration of penalties.
