FMC Still Mulling Possible Delay of New D&D Billing Rule, Industry Official Says
The Federal Maritime Commission continues to consider a request to delay its new final rule on demurrage and detention billing requirements, said Rich Roche, who chairs the Non-Vessel Operating Common Carrier Subcommittee of the National Customs Brokers & Forwarders Association of America.
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“We’re already a couple months into the rule here, so a 90-day delay would not really do much more than just push out the enforcement end of that,” Roche said July 25 during an NCBFAA webinar.
The rule took effect May 28 (see 2402230049), but the Ocean Carrier Equipment Management Association has said its members need more time to adjust their practices (see 2406070015). Shipping, trucking and freight forwarding associations oppose the request, saying it would cause widespread confusion in the shipping industry, but two of the groups said the FMC should consider giving the industry more time to adapt to the rules before punishing violators with fines (see 2407080016).
During the webinar, Roche, who also is senior vice president of Mohawk Global, said he’s “disappointed” that storage charges issued by railroads or rail terminals are outside the scope of the rule. He said congressional action may be needed to address the matter.
Also during the webinar, Ashley Craig, NCBFAA’s transportation counsel and chair of Venable's International Trade Group, said he doesn’t expect any “pushback” to the recent nomination of Carl Bentzel and Louis Sola to continue serving as FMC commissioners (see 2407110056).
Craig also said the FMC's proposed record-high $64 million penalty against the Mediterranean Shipping Company for knowingly violating U.S. shipping laws is pending. MSC has denied the FMC's allegations (see 2405060044). Craig is "not certain how this is ultimately going to play out. I would not be surprised if MSC decides to try to negotiate some sort of resolution with the FMC, but where it stands now is that it is active and it is pending and we will have to wait and see."
Craig also said he's reviewing how NCBFAA members could be affected by the U.S. Supreme Court's recent upending of the Chevron principle of deferring to federal agencies' interpretations of ambiguous statutes. "We're about ready to provide something to all members," he said. While the court's decision "will have an impact, it will take time, it's not going to happen right away," he added.