Sponsored By

US FMC loses Evergreen D&D case but reaffirms cargo refusal rules

A small but significant win for liner shipping companies came in the US Court of Appeals which overturned the Federal Maritime Commission (FMC)’s decision that Evergreen should have waived detention & demurrage (D&D) charges.

Nick Savvides, Europe correspondent

July 24, 2024

1 Min Read
evergreencontainers
Photo: Marcus Hand

The claim was for $510 by trucking company TCW for a period in which the port was closed, however, the court said the FMC ruling was “illogical” adding that the commission had a “myopic focus” on the incentive principle.

It remains to be seen where this court ruling will alter the FMC’s D&D charging regulations.

Meanwhile, the FMC has decided to retain parts of its refusal to carry cargo regulations, which will be enforced from 23 September, that were contested by carrier representatives.

Alphaliner reports the FMC will: “Retain a provision that allows it to consider the quoted rate when assessing if a carrier made a good-faith effort to negotiate. Carriers argued that this exceeds the FMC’s brief as a non-rate-regulating body.”

In addition, the FMC will retain a requirement that “lines file an annual export policy that includes service and market descriptions, pricing strategies and container equipment,” according to the lines this could put them at a competitive disadvantage.

The policy was enacted as part of the Ocean Shipping Reform Act 2022, following complaints from shippers that carriers were not meeting their contractual obligations, by refusing space for contract cargo, with shippers arguing that the lines were forcing them onto the far more expensive spot market.

Related:Samsung Electronics America fires D&D claims at carriers

“The new rule establishes the conditions under which the FMC will investigate ‘unreasonable’ refusal of cargo space to US exporters, or ‘unreasonable’ refusal to deal or negotiate vessel space accommodations,” reported Alphaliner.

Read more about:

Evergreen

About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like