FMC Says Over Half of Charge Complaints Have Been Settled

Over half of charge complaints submitted to the Federal Maritime Commission have been resolved by the parties agreeing to a settlement, FMC Managing Director Lucille Marvin said during a May 3 FMC meeting. More than half of what comes in gets settled "almost right away," Marvin said. Once "regulated entities see that we're involved, they come back to the table and issue refunds or waivers."

The FMC has received 287 charge complaints since the Ocean Shipping Reform Act was enacted last year, with "more [coming] in each week," Marvin added. Of those complaints, 115 met the threshold for investigation, and of those 115, 60 were voluntarily resolved by the carrier issuing either a refund or waiver, she said.

As more cases conclude in settlements, FMC Commissioner Rebecca Dye said she also wants to ensure cases enter the FMC's formal complaint proceedings process through its Office of the Administrative Law Judges, especially as investigations become more complicated. This would also allow the FMC and its ALJ to establish "actual precedent" for cases moving forward, Dye said.

Marvin's and Dye's comments came about one week after Rich Roche, a member of the FMC's National Shipper Advisory Committee, said more carriers are settling with shippers in response to charge complaints (see 2304270055). The FMC also said it has so far ordered $1 million in refunds through the charge complaint process, a milestone that was reached May 1. "Charge Complaints provide a simplified and expedited process for shippers, consignees, truckers, and third parties to dispute charges which might have been wrongly assessed by a common carrier," the FMC said in its announcement.

Marvin said the FMC has completed investigations of about 33 of the charges that have so far met the threshold for investigation, with 27 lacking evidence to prove that the carriers were in violation of OSRA. Some of the reasons charge complaints did not meet the threshold for investigation include that the concerns predated OSRA, the submissions were incomplete, or that the matter was "not suitable" for a charge complaint, Marvin said.

FMC Attorney Julie Berestov said a new penalty may be released soon. The commission's Bureau of Enforcement, Investigations and Compliance is working on a "compromise agreement for a significant civil penalty with an ocean common carrier," she said, adding that the terms of the agreement would include a commitment on behalf of the carrier to review its detention and demurrage invoices for other potential refunds or waivers. This signals "a significant public benefit component both now and in terms of future compliance," Berestov said. Berestov also added that since her time at the Office of Enforcement beginning in August, two attorneys have been added and a third attorney will be added at the end of May.

The FMC also announced that it's working on a notice of proposed rulemaking to define the phrase "unfair or unjustly discriminatory methods" by carriers, as required by OSRA. More information is expected "later this year," FMC General Counsel Chris Heuy said.