FMC Creates New Small Claims Complaint Pathway

Do you have a complaint seeking damages against an individual or a company for economic injury not exceeding $50,000, caused by violations of the Shipping Act of 1984? That would constitute a Small Claims complaint and the Federal Maritime Commission recently provided guidance on the different avenues shippers have at the FMC to pursue demurrage and detention complaints. The FMC is in the process of making a new rule governing demurrage and detention billing practices that would benefit the trade and should apply to marine terminal operators and non-vessel operating common carriers in addition to vessel-operating common carriers. Shippers have been complaining that invoices for such charges lack sufficient clarity to enable the recipient to understand and verify the charges. FMC Commissioner Rebecca F. Dye, in a statement issued on February 15, 2022, also outlined the differences between filing a complaint and reporting potential violations of the law that might be investigated by the Commission’s Bureau of Enforcement. Commissioner Dye statement: "This past summer, in my capacity as Fact Finding Officer for Fact Finding 29: International Ocean Transportation Supply Chain Engagement, I recommended, among other things, issuing policy statements regarding private party complaints and holding a webinar on Commission processes. The Commission adopted the recommendations and issued three policy statements on December 28, 2021, and I continue to support clarifying Commission procedures through a variety of means, including a webinar. "To the end, I want to highlight that the Commission’s website contains information about how to file complaints seeking financial compensation for damages with the Commission. Filing a complaint is, in some ways, like filing a lawsuit. General information about filing a complaint can be found on the Filing a Shipping Act Complaint page which explains the difference between a Small Claims Complaint and a Formal Complaint. "Small Claims Complaint: For claims of $50,000 or less, a small claim alleging Shipping Act violations may be filed. The complaint will be handled by a settlement officer for resolution using informal procedures (46 CFR Part 502 Subpart S). "Formal Complaint: Any person may file a formal complaint to allege violations of specific sections of the Shipping Act. The complaint must be sworn and verified, and if seeking financial compensation for damages, be filed within three years of the claimed violation. Formal complaints are generally heard by an Administrative Law Judge and are reviewed by the Commission. "Filing a complaint is distinct from reporting potential Shipping Act violations, see for example, Fact Finding 29: Advice to the Trade, and filing a complaint is distinct from using the Commission’s alternative dispute resolution services. Both, however, are also ways that the shipping public can help the Commission ensure compliance with the Shipping Act and Commission regulations." Filing a Small Claims Complaint The Commission provides a standard format for filing a small claims complaint. All small claims complaint filings should follow this standard format. You may not simply sign and submit the exhibit. The information shown in brackets is to guide you regarding what information you must provide.

Small Claims are determined by a settlement officer using informal procedures and are governed by Commission rules found at 46 CFR 502.301-502.305. Please review these rules before filing an informal complaint.

Please note that a Respondent may object to the informal procedure within 25 days of being served. Should Respondent refuse the informal procedure, the claim will be assigned to an Administrative Law Judge for formal adjudication under Subpart T of the Commission’s rules.

A small claims complaint must:

• State a section of the Shipping Act found in 46 USC Chapter 411 you allege was violated

• Be properly signed and sworn or verified by using a notary public or making one of the statements below and signing the name afterward

  • If you are located in the United States: “I declare (or certify, verify or state) under penalty of perjury that the foregoing is true and correct.”

  • If you are located outside the United States: “I declare (or certify, verify or state) under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.”

• Be signed and dated

• Include an original and two copies of the claim and supporting documentation

• Be filed within three years from the time the cause of action accrued (i.e., the date the Shipping Act violation occurred)

• Be mailed, with the appropriate filing fee to:

William Cody Secretary Federal Maritime Commission 800 N. Capitol St. N.W. Washington, DC 20573 How AP Tariffs Can Help You If you want file a Small Claims Complaint but not sure what to do and how to proceed, AP Tariffs offers FREE GUIDANCE of the best pathways for handling these complaints. Free consultations are available in both English and Spanish. Contact AP Tariffs today!

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FMC Holds Series of Meetings on Maritime Transportation Data Initiative

On January 27, 2022, Commissioner Carl W. Bentzel updated his colleagues about the Maritime Transportation Data Initiative (MTDI) he is leading. This initiative has three key goals: cataloging the status quo in maritime data, storage, and access across the transportation chain; identifying key gaps in data definitions/classification; and developing recommendations for common data standards and access policies/protocols. The MTDI is examining the data generated by a container from its arrival at a US port to its destination. Commissioner Bentzel is hosting meetings to gather information from representatives of all sectors of the supply chain involved in moving a container. To date, he has heard from beneficial cargo owners, drayage truckers, chassis providers, and providers of warehousing, distribution, and third-party logistics services. Information about past and future meetings have been organized on a dedicated landing page on the Commission’s website where links to video recordings of meetings can also be found. The MTDI will culminate in a Data Summit tentatively scheduled for June of this year. The meeting with chassis providers was held January 25, 2022, with Ron Widdows – FlexiVan, President/CEO; Daniel Walsh – TRAC Intermodal, President/CEO; and Mike O’Malley – DCLI, SVP – Government & Public Relations, Human Resources, as the scheduled participants. The meeting with members of the railroad industry was held February 1, 2022, with Jim Bishop, Director International Sales—Union Pacific Railroad; Scott Hernandez, Assistant Vice President Intermodal Business Unit Operations, System—BNSF Railway; D’Andrae Larry, Group Vice President International Marketing & Sales—Norfolk Southern Corporation; Jay Strongosky, Director International Intermodal Sales—CSX Transportation, as scheduled participants. The meeting with Federal Agencies was held February 8, 2022, with Matthew Chambers, Senior Transportation Specialist, Bureau of Transportation Statistics, U.S. Department of Transportation; James Swanson, Director, Cargo Security and Controls, U.S. Customs and Border Protection; April Taylor, Economist, Transportation Services Division, U.S. Department of Agriculture; and Olivia Volkoff, Policy Advisor, Office of the Secretary, U.S. Department of Commerce, as scheduled participants. The meeting with Ocean Transportation Intermediaries was held February 15, 2022, with Alan Baer, President OL USA LLC; Butch Connor, Vice President, John S. Connor, Inc.; Michelle Fajardo, President, Cargo International Consolidators, Inc.; and Terry Maready, Chief Information Officer, Mallory Alexander, as scheduled participants.

FMC Seeks More Comments in Its Investigation on Canadian Regulations

FMC Press Release Posted February 3, 2022 -- The Federal Maritime Commission is seeking updated comments in support of its ongoing investigation of whether Canadian ballast water regulations in the Great Lakes are unfavorable to shipping in the U.S.-Canada trade.

This investigation was launched in June 2020 in response to a petition filed by the Lake Carriers’ Association, a trade association made up of vessel owners and operators in the Great Lakes. The petition alleges that the Canadian regulations serve no environmental purpose, are prohibitively expensive to comply with, and are designed to drive U.S. flag vessels from the market.

Transport Canada issued proposed regulations in 2019 that required installation of ballast water management systems on Laker vessels. A final rule was issued by the Canadians in June 2021 that becomes effective in 2024 but exempts compliance until 2030 for vessels built prior to January 1, 2009. The Commission is asking interested parties to provide comments on the application and impacts of the final Canadian regulation.

The Commission’s investigating authority allows it to take regulatory actions if the Commission finds that a foreign government’s regulations create unfavorable conditions to shipping in foreign trade which authorizes investigation of shipping regulations of foreign nations. The Great Lakes Carriers’ Association maintains the Canadian regulations serve no environmental purpose, are prohibitively expensive to comply with, and are designed to drive U.S. flag vessels from the market.