Federal Maritime Commission examines carrier billing practices

The Federal Maritime Commission (FMC) is to examine allegations that vessel operating common carriers (VOCCs) may be attempting to hold companies financially responsible for transportation services that they did not contract for and may not legally be required to pay.

In September last year, the US regulator invited stakeholders to provide comments on demurrage and detention under the Shipping Act, and concerns were raised about the billing practices of ocean carriers.

Allegations were made that VOCCs have expansively defined “merchant” in their respective bills of lading to include persons or entities with no beneficial interest in the cargo and who had not consented to be bound by the terms of the underlying bill of lading.