Via JFK Airport Customs Brokers and Freight Forwarders Association
As you may recall, a broad coalition of Trade Associations, including the NCBFAA filed a petition with the FMC asking the agency to initiate a rulemaking concerning the issue of demurrage and detention charges. Essentially, the petition is asking the FMC to issue a rule or policy statement making it clear that the vessel operators and marine terminal operators could not properly assess demurrage and detention charges if congestion, severe weather or other causes beyond the control of the NVO or BCO prevent timely release of cargo or containers. Even though these charges are typically passed on to the BCO, the NCBFAA joined the petition because NVOs are the ones who normally receive the invoices and they may have a hard time passing along those charges. The Petition was filed on December 7, 2016 and the FMC put out a Notice about this in the Federal Register on December 28, 2016 (81 Fed.Reg. 95612) inviting interested parties to file comments. It is likely that the carriers, MTOs and possibly labor interests will file comments opposing the petition. Indeed, we assume that they will urge the agency to do nothing and not even initiate any proceeding at all.
If you agree that the carriers and ports have unfairly been issuing bills for demurrage and detention and agree with the NCBFAA that the relief requested in the Petition is necessary and reasonable, it is important that you consider filing a short letter of support urging the FMC to at least initiate a proceeding. While the trade associations, including the NCBFAA, are signatories to the Petition, it is essential for the FMC to know that individual companies support this, that this effort is not just something that is dreamed up as a project by associations but that the issuance of demurrage/detention bills during periods of extreme congestion is a huge, significant problem.
We have drafted the attached form of a letter for you to consider sending to the FMC in support of initiating a rulemaking proceeding. It is only a form and you are invited to use your own words and experience in writing to the agency. But, it is important that you do show your support if you agree that something should be done to curb the excessive use of demurrage and detention when you are not able to do anything to move or release the containers.
If you do wish to support this, send a letter to the FMC on your letterhead that identifies you and your company and make any changes or additions you might want. The letter needs to be sent no later than February 28, 2017. According to the FMC’s notice, you should send (1) an original and 5 copies of the letter to: Assistant Secretary, Federal Maritime Commission, 800 North Capitol Street, NW; Washington DC 20573-0001 and (2) a PDF of the letter, showing the docket number of P4-16 in the reference line, to Secretary@fmc.gov. In addition, the Notice requires that a copy also be served on counsel for the Coalition, and that is Karyn Booth, Thompson Hine LLP, 1919 M Street, NW, Washington DC 20036. Of course, the NCBFAA would also appreciate receiving a copy.
Thanks for your help with this, but let us know if you have any questions.
Stay tuned for updates. Please click here for a Petition Sample. FMC_Petition_Sample_Letter.pdf
