In keeping with US President Joe Biden's executive order, the Federal Maritime Commission (FMC) has established a programme to look at detention and demurrage fees levied by leading liners.
The commission announced the Ocean Carriers Audit Program on Tuesday, tasked with ensuring the nine top boxship companies by market share are charging reasonable fees related to the return and receipt of containers.
"The Federal Maritime Commission is committed to making certain the law is followed and that shippers do not suffer from unfair disadvantages," commission chairman Daniel Maffei said.
"The work of the audit team will enable the commission to monitor trends in demurrage and detention practices and revenue, as well as to establish an ongoing dialogue between staff and carriers on challenges facing the supply chain.
"Of course, if the audit team uncovers prohibited activities, the commission will take appropriate action.
"Furthermore, if the information gathered by the audit process might lead to changes in FMC regulations and industry guidance if warranted."
The examination of detention and demurrage fees was spurred by a wide-ranging executive order signed by Biden on 9 July designed to bring more competitiveness to the US economy overall.
In shipping, the FMC was tasked with investigating detention and demurrage charges, which US companies are being forced to pay despite jam-packed ports and ships waiting to discharge, preventing the movement of containers.
- AP Moller-Maersk
- Mediterraean Shipping Co
- CMA CGM
- COSCO Group
- Hapag-Lloyd
- ONE
- Evergreen
- HMM
- Yang Ming
The FMC has also signed a memorandum of understanding with the Department of Justice's antitrust division.
The agency said the programme, led by commission managing director Lucille Marvin and staffed by current employees, will begin by establishing quarterly reports to assess how detention and demurrage are administered.
Then each of the nine leading liners will be interviewed and audited.
US law mandates shipping companies establish "just and reasonable regulations and practices" related to receiving, handling, storing and delivering property.
The FMC said it would work with companies to address the carriers' application of the rule and clarify any questions or ambiguities around it in the hope of establishing best practices.
