BlueCargo’s Post

Complaints to FMC Over Shipping Industry Tripled in Two Years The number of complaints to the U.S. Federal Maritime Commission over the shipping industry’s business practices, and mostly detention and demurrage fees, have more than tripled in the past two years, according to a new report in the Financial Times. The newspaper reports that, according to data from the FMC, shippers have filed nearly 400 complaints in the 14 months since the Ocean Shipping Reform Act became law in July 2022. #Maritime #Supplychain #Shipping #Containershipping #Ports #datas #Logistics

Would the following forwarders please stand up? I think we are so used to the shipping lines being in trouble with the FMC, this article shocked me a little! The Federal Maritime Commission (FMC) has effectively reached compromise agreements with three companies, leading to a total of over USD2.3 million in civil penalty payments. First up was shipping company CMA CGM who settled allegations of overbilling a third party by paying a significant USD1,975,000 fine and agreeing to reform its practices, including limiting the merchant definition in its bills of lading to shippers, consignees, and individuals with a beneficial interest in the cargo to ensure compliance. The next cab off the rank is Vanguard Logistics Services (USA), Inc. They resolved allegations of unlawful acceptance of cargo from OTIs (ocean transportation intermediary) lacking necessary sureties by paying USD175,000. Vanguard has now pledged to conduct audits of its internal practices and procedures and will provide quarterly updates. Last but not least is Shipco Transport, Inc. who resolved three allegations of misconduct with a USD155,000 payment. The company was accused of unlawfully accepting cargo from OTIs without required sureties, allowing an unlicensed OTI to obtain transportation for property at discounted rates, and enabling another OTI to secure transportation at rates below the applicable standards by providing access to service contracts of an ocean common carrier. Both Vanguard and Shipco have pledged full cooperation with the Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) in any future investigations or enforcement efforts. Yesterday the revised detention and demurrage (D&D) rules by the FMC officially took effect, bringing in new guidelines regarding billing, timeframes, and procedures for disputing unjust charges. The FMC highlighted that “billing the proper party is an important part of the final rule”. (Looks like an OTI is the US version of an ocean freight forwarder / NVOCC / Forwarder .. We have many different names 😂 😉)

Two years after the Ocean Shipping Reform Act (OSRA), $67M in claims are with the Federal Maritime Commission (FMC) over unfair detention & demurrage (D&D) charges. Notable claimants like Bed, Bath & Beyond and Giti are pursuing significant claims against major carriers. Project 44's new D&D Optimisation system promises real-time cost insights, but experts like Sara Dandan of Lojistechs question its effectiveness without shipper control over movement points. With FMC’s new D&D billing rule starting Tuesday, requiring direct billing to contracting parties, the freight forwarding industry must adapt to these regulatory changes. 📈 How are you preparing for these shifts in D&D practices? Share your thoughts! #FreightForwarding #SupplyChain #Logistics #Shipping #Innovation #Regulation #DandD #Project44 https://lnkd.in/edDk_frw

📢 The OSRA 2022 Final Ruling on Detention and Demurrage Invoicing Goes Into Effect 5/28/24: Are You Ready? 🚢 The Federal Maritime Commission (FMC) is rolling out new rules to increase transparency and fairness in shipping, impacting everyone from ocean carriers to exporters and truckers. Here's the breakdown: ✅ Clearer Invoices: Shipping lines MUST provide detailed invoices, explaining charges and calculations. ✅ Direct Billing: Cargo owners will be billed directly, easing the burden on carriers and improving accuracy. ✅ Faster Dispute Resolution: A clearer process is in place to resolve disagreements quickly. ✅ Data is Key: Real-time, accurate data is essential for compliance and smooth operations. What does this mean for you? ✅ Operators: Streamlined billing, fewer disputes, reduced operational costs. ✅ Logistics Coordinators: Easier tracking of fees, faster dispute resolution. ✅ Stakeholders/Owners: Improved transparency, better budgeting and forecasting. How can Terminal49 help? On Wednesday, May 22nd at 2 pm CST Trade XCelerators Co-Founder and Chief Learning Officer, Dan Gardner, and Terminal49's CEO/ Founder, Akshay Dodeja will guide you through key aspects of the new regulations that can help your organization prepare effectively and eliminate risks associated with compliance. https://hubs.li/Q02xLlxy0

History never repeats (I tell myself before I go to sleep 😴) Cosco is facing a $2bn compensation claim after a complaint of unfair application of detention and demurrage (D&D) charges lodged with the US Federal Maritime Commission (FMC). The complainant, a lighting supplier, claims that COSCO refused to extend the number of free days after empty container parks had reached crisis levels. “Marine terminals did not have sufficient storage to take back all of the empties, because carriers like Cosco were not loading back boxes in sufficient quantities. As such, financial and operational burdens were unfairly and inappropriately forced upon shippers.” Does this sound a little bit familiar? Yesterday it was announced that many ECPs (empty container parks) in Fremantle had hit capacity. This appears to be a direct result of the on-going protected industrial action at DP World as the ECPs are unable to complete empty bulk runs from their parks into this terminal (in sufficient time). Transport operators have warned of delays in being able to book slots to return empty containers to these parks. This will mean the possibility of additional charges to importers as some containers will reach their free time limit given by the shipping lines. Who do you think should be responsible for detention charges if the container is empty, but you have no way possible to return it? 🌶 https://lnkd.in/gWk9UWtK

Failure to incorporate Standard Trading Conditions (STC) exposes you to potentially uncapped liability. Every Freight Forwarding company should incorporate a set of STCs for their operation that fits the freight services they provide and comply with local jurisdiction. You should not rely on just International Conventions or Bill of Lading terms to protect yourself! In this course, we will explain what STC is and how important it is to have it properly incorporated into your business. 📍 Join the webinar: https://ow.ly/39l050RGMs3 #LognetGlobal #LogisticsWebinar

You are sick of paying hefty detention and demurrage charges without knowing if they're accurate! Want the secrets to cutting costs, streamlining operations, and maintaining accurate invoicing for international shipping? Get game-changing advice to prevent these charges, or validate and dispute them, helping reduce costs and saving valuable time. Windward's Maritime AI™ solution can empower you to cross-reference charges with the actual time your containers were in possession, providing you with the tools to validate fees accurately. ⬇️ #shipping #supplychainlogistics #supplychain

Failure to incorporate Standard Trading Conditions (STC) exposes you to potentially uncapped liability. Every Freight Forwarding company should incorporate a set of STCs for their operation that fits the freight services they provide and comply with local jurisdiction. You should not rely on just International Conventions or Bill of Lading terms to protect yourself! In this course, we will explain what STC is and how important it is to have it properly incorporated into your business. 📍 Join the webinar: https://ow.ly/AfME50RGLvf #WCAworld #LogisticsWebinar

MSC's case has raised concerns that other carriers may also be engaging in similar practices. The investigation by the U.S. Federal Maritime Commission (FMC) into MSC's actions has shed light on issues such as misapplication of reefer rates, billing non-contracted parties, and the interpretation of the "notify party list" as "merchants." A demurrage and detention software can help address these issues raised. Such software is designed to streamline and automate the tracking and billing of demurrage and detention charges, making the process more transparent and accountable.  👊 Accurate Tracking 👊 Transparency  👊 Compliance  👊 Efficiency 👊 Invoicing Want to learn more? Don't hesitate to reach out to me or James Blackman. #CocoonDEM #CocoonFMS #demurrage #detention

Failure to incorporate Standard Trading Conditions (STC) exposes you to potentially uncapped liability. Every Freight Forwarding company should incorporate a set of STCs for their operation that fits the freight services they provide and comply with local jurisdiction. You should not rely on just International Conventions or Bill of Lading terms to protect yourself! In this course, we will explain what STC is and how important it is to have it properly incorporated into your business. 📍 Join the webinar: https://ow.ly/SHpi50RGHUl #WCAworld #LogisticsWebinar