FMC Making Progress on OSRA Implementation, Officials Say

The Federal Maritime Commission is making headway on implementing the Ocean Shipping Reform Act of 2022 and is preparing two new rules that will further revise or clarify how its regulations apply to carrier and shipping practices.

One new notice of proposed rulemaking will focus on “unreasonable” refusals to deal or negotiate on vessel space accommodations, the agency said July 28. The rulemaking, which is mandated by OSRA, will ask for public comments on the issue. The rule is expected to be published in the “immediate future,” the FMC said, with a final rule published by December.

The commission also expects to move forward with a February rule that requested feedback on the possibility of new demurrage and detention billing requirements (see 2203250028), Steve Anderson, FMC general counsel, said during a commission meeting July 27. Anderson said the FMC received more than 80 comments on the rule, with some saying new regulations could help reduce the amount of incorrect or disputed information on detention and demurrage bills. Anderson said the FMC is working on a notice of proposed rulemaking for potential regulatory changes that will be "ready for the commission's consideration in early fall."

“These are important initiatives that will make a difference to people who depend on the movement of ocean cargo,” FMC Chair Daniel Maffei said in a statement. “Our job is to implement it, and we are well along the way in doing so.”

As part of its work to implement OSRA, the FMC announced a new mechanism for parties to dispute carrier charges that may not be complying with OSRA (see 2207140045 and 2207150031). The commission has already received seven charge complaints through the mechanism, FMC official Lucille Marvin said, all of which deal with detention and demurrage issues. "We do appreciate the public is already taking advantage of this," Marvin said during the meeting.

But Marvin said the FMC still needs to formalize the mechanism through an official rulemaking. Until then, the FMC is reviewing submissions "through an interim process," Marvin said.

She also said the FMC has made progress implementing provisions of OSRA that require the commission to hire more officials. The FMC has so far hired two more attorneys for its Bureau of Enforcement, another official in its Bureau of Certification and Licensing, and another employee for its Bureau of Trade Analysis, among other hires.

"The commission has 18 months to comply with this provision, but the hiring is already underway or has actually been completed in some cases," Marvin said. "We're getting this done in FY22."