U.S. regulator expects to find abuses in shipping amid supply chain woes -Breaking
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WASHINGTON (Reuters] – A head of a U.S. agency that monitors ocean transport said on Tuesday that he thinks certain ocean carriers may have incorrectly charged importers. It is just one reason for supply chain woes.
A wide range of businesses that import goods from abroad have experienced difficulties due to the accumulation of vessels outside of harbors, as well as higher shipping costs. Many claim these fees are unavoidable.
The Chairman of the U.S. Federal Maritime Commission Dan Maffei stated that the present mess was largely caused by a demand surge after the U.S. economic slowdown. However, he said that he expects the FMC (NYSE 🙂 to find some wrongdoing.
In August, Maffei said the commission had launched an inquiry in response to reports https://www.fmc.gov/commission-questions-shipping-lines-about-surcharges of ocean carriers improperly assessing fees.
Maffei said to Reuters that they need to conduct a thorough and good investigation. There are probably some abuses. “And, as you all know, it’s possible that there are abuses going on.
The FMC stated that importers shouldn’t be subject to demurrage and detention fees in 2020. These are charges for importers who delay picking up goods or returning them.
Maffei pointed out that one of the carrier charges was for “value added”. Do they intend to gift wrap this metal container?
The Travel Goods Association, whose companies do $1 billion in U.S. sales annually, pressed the FMC last week https://www.reuters.com/business/companies-us-shipping-regulator-enough-probes-start-enforcing-2021-10-27 for aggressive enforcement and said shipping costs were now eight to 10 times higher than last fall.
Economists and business leaders expect that the demand surge will continue into 2022, despite unprecedented supply chain bottlenecks.
In July, the White House issued a competition executive ordering encouraging the commission to “vigorously enforce” the ban on unjust and unreasonable acts in detention and derurrage.
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