FMC Extends Comment Deadline on Proposed Demurrage & Detention Rule

The Federal Maritime Commission has extended the deadline to file comments on the Advance Notice of Proposed Rulemaking (ANPRM) on Demurrage and Detention Billing Requirements (Docket No. 22-04) until April 16, 2022.

Information the Commission seeks and instructions on how to submit comments are specified in a February 15, 2022, Federal Register notice.

The Commission initiated the ANPRM to gauge if a new rule governing demurrage and detention billing practices would benefit the trade and should apply to marine terminal operators and non-vessel-operating common carriers in addition to vessel-operating common carriers.

The ANPRM was issued in response to information developed by Commissioner Rebecca F. Dye as part of her work leading Fact Finding 29. In July 2021, she identified issuing an ANPRM on these topics as one of the Interim Recommendations provided to the Commission on how the agency can address complaints and issues related to demurrage and detention.

FMC Amends Rule for Cruise Passengers to Get More Refund Rights

The Federal Maritime Commission is amending its regulations governing non-performance by Passenger Vessel Operators (PVO/cruise lines) and establishing new requirements for when cruise passengers should be provided refunds for cancelled or delayed voyages.

The changes define non-performance as cancelling a voyage or delaying a voyage by three or more calendar days if a passenger elects not to embark on delayed or substituted voyage offered by a PVO. The Commission also changed its regulations to allow passengers of delayed or cancelled voyages to make direct claims against financial responsibility instruments, such as bonds, maintained by PVOs, after the passenger’s unsuccessful attempt to receive a refund directly from the PVOs. Finally, the rule allows all fees, including ancillary fees, paid by a passenger to a PVO be eligible for a refund.

The changes become effective 30 days after their publication in the Federal Register and will apply to cruises booked on and after that date.

Proof of Claims for refunds from Crystal Cruises can be filed at https://crystalcruiseclaims.com/.

The deadline for filing a claim is June 11, 2022. Proof of Claim forms can be found at: https://crystalcruiseclaims.com/wp-content/uploads/2022/03/POC-Crystal-Cruises-Consumer-FinalR1.pdf

FMC Gets Legal Support From Justice Dept. to Go After Violators

The Justice Department and the Federal Maritime Commission will be aggressively going after those who violate the Shipping Act and related laws.

The Justice Department and the FMC reaffirmed on February 28, 2022, their continuing commitment to jointly enforcing competition laws and strengthening their cooperation to promote competition in the ocean freight transportation system.

FMC Chairman Daniel B. Maffei said the two agencies will strengthen the partnership formalized by the Memorandum of Understanding (MOU) in July 2021.

The Justice Department will provide the FMC with the support of attorneys and economists from the Antitrust Division for enforcement of violations of the Shipping Act and related laws. The FMC will provide the Antitrust Division with support and maritime industry expertise for Sherman Act and Clayton Act enforcement actions.

“The Justice Department will continue to aggressively enforce our antitrust laws – no matter the industry, no matter the company, and no matter the individual,” said Attorney General Garland in a press release. “Competition in the maritime industry is integral to lowering prices, improving quality of service, and strengthening supply chain resilience. Expanding joint enforcement partnerships like the partnership between the FMC and DOJ is one of our most powerful tools for promoting competition. Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping.”

“The Attorney General and I share both the priority of a competitive marketplace and a commitment to pursue enforcement actions when necessary,” said Chairman Maffei. “Our agencies have a history of cooperating to the benefit of the American consumer and this new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition.”