The Federal Maritime Commission should quickly adopt its proposed interpretive rule for addressing detention and demurrage charges (see 1909130026), trade associations said in a March 16 letter to the FMC. “With ongoing challenges posed by the coronavirus, there is real concern about these fees being assessed when there are equipment issues beyond the control of the shipper or motor carrier,” the groups said. “Thus, these fees appear to be punitive measures by the ocean carriers, not an incentive to expedite container flow.”

Export shipments out of the Port of Los Angeles fell 5.7% in February compared with last year, and overall traffic through the port fell by nearly a quarter, with declines expected to continue in March, the port said in a press release March 10. The coronavirus has been a major contributor to the decline. “We are more interconnected than ever with our global partners so it’s no surprise that Trans-Pacific maritime trade has been significantly impacted,” Port of Los Angeles Executive Director Gene Seroka said. “As factory production in China remains at low levels, we expect soft volumes in March. Looking ahead to anticipated manufacturing improvements, we will need to return empty containers to Asia and push lingering U.S. export boxes out swiftly,” Seroka said. “We’re actively working with our supply chain partners to be prepared for a cargo surge once production levels ramp up.” Imports were down 22.5% in the month of February. The Lunar New Year holiday in Asia was also a factor in the decline, the release said.

Hapag-Lloyd will require a minimum of four digits on Harmonized System codes to accompany U.S. and Canadian exports as of April 1, the carrier said in a notice. “To ensure high quality, faster Bill of Lading release and due to the increasing customs requirements of different countries throughout the world,” the company will require at least four digits “on your submission of Shipping Instructions for exports from Canada or the United States,” it said. When that information isn't available, “our documentation team will input an HS code that is determined to be suitably close to your commodity description,” it said. “It is your responsibility to review the inputted HS Code and advise if a correction is needed. Any costs, penalties or fines related to incorrect HS Code submission will be on customers account.”

The Agriculture Transportation Coalition is urging U.S. exporters, before loading their containers, to confirm with ocean carriers that the cargo will reach their Chinese customers and will have proper refrigeration in case of delays at Chinese ports due to the coronavirus outbreak. The AgTC also said it is continuing to urge ocean carriers to refrain from imposing detention penalties on containers that are stuck at ports due to the virus containment measures in place (see 2002030034). “Within China, the supply chain has been compromised, starting at the China maritime terminals extending all the way to the ultimate inland destination points,” the AgTC said in a Feb. 11 emailed press release.

The Basel Convention’s global ban on exporting e-waste and other hazardous materials to developing countries became international law Dec. 5, the Basel Action Network said. Ninety-nine countries have ratified the ban, but not the U.S., which “produces the most waste per-capita,” the green group said. Canada, Mexico and Japan are among nations that also have not ratified the ban.

A recent Federal Maritime Commission proposed rule would lead to a much fairer enforcement process for alleged violations of the Shipping Act, the National Customs Brokers & Forwarders Association of America said in comments submitted to the agency. The proposal would create a process for notifying a target of an investigation and allowing it to respond, and ensure that FMC commissioners see the target’s statement before deciding how to proceed. “As the members of the Commission would necessarily be involved at the outset, it seems more likely that potential enforcement cases would focus on issues that have a material adverse effect on trade or competition and minimize the initiation of cases that are based on relatively minor or technical infringements of regulations,” the NCBFAA said. The proposal would also make it “less likely that there would be an anecdotal approach to enforcement where only [the Bureau of Enforcement] and a respondent know what the issues in any prosecution actually involved.” But FMC should go beyond its proposal and create penalty and mitigation guidelines for Shipping Act violations, the trade group said.

Several issues related to detention and demurrage remain to be addressed as the Federal Maritime Commission moves forward with its recent proposed rule on detention and demurrage practices, said Richard Roche of Mohawk Global Logistics, at the National Customs Brokers & Forwarders Association of America’s government affairs conference Sept. 23 in Washington. Key among these are notices of availability for cargo and charges for customs holds, he said.

The Federal Maritime Commission will accept comments on its proposed interpretative rule on detention and demurrage charges until Oct. 31, the agency said in a notice. The agency previously said comments are due Oct. 17 (see 1909130026).

The Federal Maritime Commission will likely publish next week a notice in the Federal Register seeking comment on an interpretive rule that is meant to help address issues with detention and demurrage charges, an FMC spokesman said. The agency announced on Sept. 6 that the FMC adopted recommendations from Commissioner Rebecca Dye, one of which includes publishing "an interpretive rule that clarifies how the Commission will assess the reasonableness of detention and demurrage practices." Interpretive rules differ from other regulations in that they don't require a notice and comment period, though the FMC has chosen to go through one, and aren't considered to have the force of law.

The Federal Maritime Commission will seek comments on a proposal to "prevent ocean carriers and marine terminals from imposing free-time (detention, demurrage, per diem) charges when the container cannot be picked up from, or returned to, the terminal through no fault of the shipper/trucker," the Agriculture Transportation Coalition said in a Sept. 6 email. The FMC didn't comment. The trade group said carriers have made such penalties "a major cost for importers and exporters and their truckers, often threatening to lock out truckers who don't immediately pay, and making shippers' protest/challenges extremely difficult."