FMC Proposes Way to Deal With Unreasonable Refusal

The Federal Maritime Commission (FMC) has issued a Supplemental Notice of Proposed Rulemaking (SNPRM) outlining its approach to implementing regulations that prohibit common carriers from unreasonably denying available cargo space to shippers.

This SNPRM is a continuation of the rulemaking process mandated by the Ocean Shipping Reform Act of 2022 (PL 117-146). In September 2022, the Commission released a Notice of Proposed Rulemaking (NPRM) titled "Definition of Unreasonable Refusal to Deal or Negotiate with Respect to Vessel Space" (Docket No. FMC-2023-0010).

To address the concerns raised during the public comment period for the NPRM, the Commission announced in January its decision to pursue an SNPRM, allowing for an additional public comment period instead of proceeding with a Final Rule.

The SNPRM introduces significant changes compared to the previous NPRM issued last year. These changes include:

1. Adding specific language to establish the criteria for a claim regarding refusal of cargo space accommodations.

2. Revising the definition of transportation factors to focus on considerations related to vessel operations.

3. Expanding the definition of the term "unreasonable" to provide a general definition and a non-exhaustive list of scenarios that constitute unreasonable conduct.

4. Clarifying that vessel space services are encompassed within the definition of vessel space accommodations.

5. Proposing a mandatory requirement for export policy documentation as an alternative to the previously suggested voluntary export strategy.

6. Removing the voluntary certification provision.

The public will have a 45-day period to submit comments in response to the proposals presented in the SNPRM. Detailed instructions on how to provide comments to the Commission will be included within the SNPRM document.

The Federal Maritime Commission encourages stakeholders and the public to actively engage in this rulemaking process, as their input is vital to shaping fair and effective regulations in the maritime industry.

FMC Names Alex M. Chintella as Administrative Law Judge

Chairman Daniel B. Maffei appointed Alex M. Chintella as an Administrative Law Judge of the Federal Maritime Commission.

Judge Chintella brings a wealth of experience to the Commission, having previously served at the Federal Railroad Administration (FRA) since 2017 in various capacities, including Assistant Chief Counsel, Deputy Assistant Chief Counsel, and Supervisory Attorney Advisor. He also served as an Administrative Hearing Officer during his tenure at the FRA. Before entering government service, he practiced law for nearly ten years at Douglas & Boykin, PLLC in Washington, DC.

The growing caseload in the Office of the Administrative Law Judge, driven by an increased number of parties utilizing the formal complaints process to seek relief in shipping disputes, necessitated the hiring of a third Administrative Law Judge. This addition reflects the Federal Maritime Commission's commitment to strengthening its enforcement and adjudication services, enhancing its ability to receive and resolve disputes related to ocean transportation services.

Chairman Maffei expressed confidence in Judge Chintella's qualifications and welcomed him as a valuable addition to the Office of the Administrative Law Judges.

Judge Chintella holds a J.D. from Brooklyn Law School (2006) and a B.A. from Temple University (2002). He is a member of the New York State and District of Columbia bars. He will be serving alongside Chief Administrative Law Judge Erin M. Wirth and Judge Linda S. Crovella.

Charge Complaint Refunds Hit $1 Million

Over $1 million in disputed charges has been waived or refunded through the Charge Complaint process established by the Ocean Shipping Reform Act of 2022 (OSRA) and administered by the Federal Maritime Commission. This milestone was reached on May 1, just over 10 months after OSRA became law.

The Charge Complaint process offers a streamlined procedure for shippers, consignees, truckers, and third parties to dispute charges levied by common carriers. By filing a complaint with the Commission, parties can seek resolution and potential refunds for unjust charges.

Detailed information about the charge complaint process is available on the Commission's website, including an instructional video and frequently asked questions.

It's important to note that the total amount waived or refunded through the charge complaint process does not include penalties or settlements resulting from the Commission's enforcement activities. The charge complaint process provides a separate avenue for dispute resolution.