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Federal Maritime Comission Reform

Pandemic driven port congestions left exporters, including American farmers, struggling to get their products to global markets. Some Ocean carriers denied American cargo while Shipping rates rose ten times against base year, making it almost impossible to export. In retaliation to that US government has passed a reform which will directly affect ocean carriers. Some of the key points are listed below:


· Stop international ocean carriers from unreasonably declining American cargo, as determined by the FMC.

· FMC can self-initiate investigations of ocean carrier business practices and apply enforcement measures.

· Overcharging certain fees, called “demurrage and detention” charges, requires a proof from international ocean carriers.

· Improved transparency of exports by requiring international ocean carriers to report to FMC regarding empty container sailings.

· More rigorous complaint and investigation process for American businesses seeking assistance from the FMC.

· Temporary emergency authority has been granted to FMC to collect data during times of emergency congestion.


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