In the News

Journal of Commerce, 10/17/14

Congestion at large U.S. ports is generating increased complaints by truckers and shippers about demurrage penalties for late pickup of containers that can’t be removed from gridlocked marine terminals. The problem is most acute at the two largest U.S. container gateways, Los Angeles-Long Beach and New York-New Jersey, both of which are struggling to deal with bigger ships, rising volumes and chassis supply. Senior Editors Bill Mongelluzzo and Joseph Bonney reporting.

The Federal Maritime Commission Newsroom

Possible Port Congestion Surcharges Industry Advisory

May 29, 2014

The Federal Maritime Commission has received numerous informal inquiries in relation to certain congestion surcharges that have been announced in tariff rules required to be published under the Shipping Act of 1984, as revised by the Ocean Shipping Reform Act (1998) and the Commission’s regulations at 46 CFR Part 520. This Industry Advisory is issued in order to respond to those inquiries.

Unless done pursuant to a waiver or exemption, any tariff rule (including surcharges) of a common carrier that results in an increased cost to a shipper may not be effective earlier than 30 days after publication. 46 U.S.C. § 40501(e); 46 CFR § 520.8.

The Shipping Act and the Commission’s regulations require that the rules applicable to any given shipment shall be those in effect on the date the cargo is received by the common carrier or its agent. 46 CFR § 520.7. Thus, if any cargo-related disruption were to occur at a port after cargo has been tendered by a shipper, a carrier may only lawfully charge the rates in effect on the day the cargo is tendered. These regulations apply both to import and export cargo.

U.S. containerized import volume jumped 15.1 percent year-over-year in March 2014, the largest increase in 13 months, according to advance figures from PIERS, the data division of JOC Group Inc., dated 15 April 2014 by Journal of Commerce

US Customs and Border Protection (CBP) recently announced its intent to begin issuing liquidated damages against importers and carriers for non-compliance with the ISF (Importer Security Filing) requirements effective from July 9, 2013.  Liquidated damages may be issued in the amount of $5,000/violation.  In addition to issuing monetary penalties, CBP will increase cargo exams and the use of manifest holds for “No ISF on File”.

If you are an a importer experiencing late or inaccurate filings, it is very important to increase  your diligence in complying with processing timely, accurate and complete ISF filings.   We are here to help…please contact Lindsay at 781-961-3540 for assistance!