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The must-attend conference for the trans-Pacific and global container shipping and logistics community
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On July 23, 2024 the Federal Maritime Commission published its final rule on “Unreasonable Refusal To Deal or Negotiate With Respect to Vessel Space Accommodations,” which aims to hold ocean carriers accountable for refusing to carry US cargo — both imports and exports — whether during negotiations or once service contracts are in effect. Although the published rule and public statements by FMC commissioners emphasize the agency’s application to exports, the rule covers all containerized trade and thus also could apply to importers’ complaints about being denied contracted allocations in tight markets such as during the spring of 2024. The concept of refusal to deal or negotiate, which dates back to the 1984 Shipping Act, was expanded in the 2022 Ocean Shipping Reform Act to more clearly describe the ways an ocean carrier can “refuse to deal” with the shipping public. This TPM Academy session will discuss importers’ and exporters’ rights under the new FMC rule and what opportunities they have to use it to protect their interests. It will be a work in progress because the rule will still need to be tested through the FMC administrative law process and possibly the federal courts.