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FMC Reaches Major Settlements & Announces a new Review



 

· The Federal Maritime Commission (FMC) has had several recent announcements on resolutions to outstanding cases as well as upcoming reviews. Hapag-Lloyd was recently ordered to pay $882,220.00 in a civil damages for detention fees that were found to be assessed incorrectly on 11 containers. These fees were charged for empty return containers when no appointments to return this equipment were available based on the filed complaint.

· Wan Hai has also been pending legislation and recently agreed to a civil penalty of $850,000 in regards to detention invoiced for 21 containers. These cases filing stated that the fees were assess despite no return location provided or return location unable to accept container or chassis as well as no appointment availability. This agreement is still pending approval from the case judge however it seems extremity likely this penalty will be accepted.

· The FMC has also recently announced that plan to bolster their monitoring of three major container alliances. Requiring that members provide more detailed information on pricing and capacity on trade lanes of which they currently cooperate. This will review will be focused on the alliances of 2M, Ocean and THE alliances to ensure that a better understanding of the carrier behavior and market competitiveness is gained by the FMC.

 

Friday May 6, 2021

 

Will large penalties help ensure carrier fairness for future detention charges?

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