Regulatory intelligence for US exporters

FMC Enforcement Division Has 2 Open Investigations, Expecting More, Official Says

The Federal Maritime Commission’s enforcement arm is investigating two cases involving potentially unlawful or unfair maritime shipping practices, including one that hasn’t yet been made public, said John Crews, director of the FMC’s Bureau of Enforcement, Investigations and Compliance.

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One of those probes, announced in June, centers on whether a group of ocean carriers is complying with a recent decision giving motor carriers the right to choose their chassis providers, including in Los Angeles/Long Beach, Chicago, Memphis and Savannah (see 2406180061). Crews, speaking during an Oct. 22 FMC meeting, said the FMC also has opened another investigation that isn’t yet “public record,” and the bureau is “issuing subpoenas and preparing to take sworn testimony” in both cases.

Crews didn’t provide details on the other probe. Any evidence of wrongdoing uncovered by the bureau during the investigations -- known as “non-adjudicatory investigations” or NAIs -- can be used by the FMC to seek an injunction in a federal district court. The bureau can also use that evidence as part of its own enforcement action, which can include civil penalties.

Crews said the bureau plans to submit evidence to the FMC at the end of both investigations. “I expect that we'll be pursuing more NAIs in the future,” he said.