Carriers May Be Violating Order Giving Motor Carriers Choice of Chassis Provider, FMC Says

The Federal Maritime Commission launched an investigation on whether ocean carriers are complying with a recent decision giving motor carriers the right to choose their chassis providers in four U.S. markets. The probe could lead to penalties against carriers, the commission said.

The FMC said June 18 it has received undisclosed “reports” that chassis providers in Los Angeles/Long Beach, Chicago, Memphis and Savannah are not following its Feb. 13 cease-and-desist order. The commission said its Bureau of Enforcement, Investigations, and Compliance (BEIC) will examine whether the Ocean Carrier Equipment Management Association (OCEMA) and its members have changed their policies and practices as required by the decision.

"The commission does not currently have reliable assurance that respondents are complying with the cease-and-desist order, and is therefore exercising its authority to conduct a non-adjudicatory investigation," the FMC said.

Opening the investigation will give BEIC subpoena power to conduct discovery. “Evidence of wrongdoing uncovered by BEIC may be used by the commission to seek an injunction in federal district court,” the FMC said. “BEIC can also use any evidence of wrongdoing to initiate its own enforcement action and seek civil penalties for non-compliance with a commission order.”

The order stems from a complaint the American Trucking Associations’ Intermodal Motor Carriers Conference (IMCC) filed against OCEMA in 2020. ATA said in a statement that it is “pleased” the BEIC will be conducting the investigation. The IMCC didn't immediately respond to a request for comment on the FMC’s announcement.

Commissioner Max Vekich said that while he supports launching the investigation, he believes the review should look at the potential benefits of exclusive chassis arrangements and not just the anti-competitive impacts.

“There are indications that exclusive chassis arrangements give rise to improved safety and roadability of chassis due to enhanced safety inspections and maintenance and repair programs,” Vekich said. “Given that the maritime industry’s efficient operation is one of the primary charges of this commission, I believe we should fully consider enhanced safety and roadability considerations as a potential justification for exclusive chassis arrangements.”