July 27, 2022, The situation at the New York (NY) and New Jersey (NJ) Ports is at a crisis level. Carriers and terminals are not accepting the return of thousands of empty containers which are mostly sitting on draymen’s chassis cutting their capacity to minimal levels. This is adding enormous inefficiency and costs to the supply chain, and BCO’s are facing unreasonable chassis, storage, and detention fees.
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“With so many disruptions in the supply chain, whether it be rail, ocean or highway, The League is very pleased to continue to work alongside the TCA to update these best practices guide,” said NITL Executive Director Nancy O’Liddy. “League members have long embraced these recommended practices, which enhance working relationships between shippers, brokers and carriers as they work to meet their mutual goals.”
When NITL members engage a non-asset-based entity to arrange truck transportation for their products, such as a broker or dispatching service, they have an interest in ensuring that the entity is a legitimate and financially sound business that will engage safe and efficient trucking companies to carry their freight.
NITL commends Congress for its prompt action in passing the Ocean Shipping Reform Act (OSRA) which will modernize our federal shipping law to address disruption to US companies’ supply chains that depend on competitive and efficient international ocean transportation services. NITL greatly appreciates the leadership of Congressmen John Garamendi and Dusty Johnson and Senators Klobuchar and Thune in spearheading the development of OSRA’s reforms. Under OSRA, the FMC will have better tools at its disposal to address global ocean carriers’ operating practices which have contributed to high inflation and supply chain disruptions experienced by NITL members and their customers. Specifically, OSRA seeks to address the challenges faced by importers and exporters in securing timely and adequate vessel space to deliver their goods to overseas markets, to obtain raw materials needed for manufacturing, and to stock retail store shelves, as well as rising costs for port and other delays that are beyond their control.
NITL was thrilled to have worked with the Congress and its industry partners in the development and passage of OSRA and looks forward to working with the FMC and all stakeholders on implementing OSRA’s reforms.
The Ocean Shipping Reform Act will:
- Prohibit ocean carriers from unreasonably refusing cargo space accommodations for U.S. exports and from discriminating against U.S. exporters.
- Promote transparency by requiring ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that makes port in the United States.
- Authorize the FMC to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures, as appropriate; and
- Establish new authority for the FMC to register shipping exchanges to improve the negotiation of service contracts.
On June 6th, NITL filed Reply Comments in EP Docket NO. EP 762, REVISIONS TO REGULATIONS FOR EXPEDITED RELIEF FOR SERVICE EMERGENCIES, establishing a Notice of Proposed Rulemaking (NPRM) to change its existing Emergency Service Order (ESO) procedures.
Joining NITL in this filing was ISRI where these Reply Comments 1) endorsed the more detailed Opening and Reply Comments submitted by the Coalition Associations (ACC, TFI, and CRA) and 2) responded to AAR’s request for the Board to clarify that exempt shippers are not eligible to access the ESO rules without first litigating revocation with a full market analysis.
In the Reply, NITL/ISRI expressly asked the Board to partially revoke existing exemptions to allow exempt shippers direct access to the STB’s ESO rules, based on the Board’s recent precedent in which it partially revoked the exemption for certain agricultural commodities to apply demurrage regulation.
On April 25, 2022, the FMC announced a newly published multimedia presentation provides instruction on options the public has to bring complaints at the Federal Maritime Commission, ranging from reporting information that may trigger an investigation to initiating formal civil litigation that can provide wronged parties damages and restitution.
Viewers will learn how to determine which process is most beneficial to achieving a complainant’s desired outcome. The video has three segments that explain how to report a potential violation of the law to Commission investigative staff for possible enforcement action; how to work with the Commission’s Office of Consumer Affairs and Dispute Resolution Services (CADRS) to achieve speedy commercial solutions; and finally, how to file small claims or formal civil complaints heard by the Commission’s Administrative Law Judge.
Each segment provides instruction on how to initiate a process, information the Commission will require to move forward, and an explanation of how each process will progress, including potential outcomes.
Creating an instructional video explaining the different complaints processes and their respective merits was one of the Interim Recommendations made by Commissioner Rebecca F. Dye in July 2021 resulting from her work leading Fact Finding 29. During her investigation, she found that some members of the trade community were confused about how to approach the Federal Maritime Commission to report suspected wrongdoing or to seek formal relief.
Commissioner Dye said, “One of my recommendations to the Commission arising from Fact Finding 29 was to provide more information to the public about our programs and avenues of redress for stakeholder problems available here at the Commission. I am pleased that this webinar advances that goal and I look forward to the development of additional tools by the Commission to assist the public.”
This webinar complements an advisory Commissioner Dye issued in February outlining ways in which parties can pursue demurrage and detention complaints.
The video can be watched in its entirety, but for viewers looking to jump to a particular section, information on reporting a violation begins at 3:50, instructions on how to work with CADRS begins at 8:30, and an explanation of the civil litigation process begins at 13:21.
Additional information can be found via: https://www.fmc.gov/fmc-launches-instructional-video-on-how-to-file-complaints/
NITL is excited to see 91 trade Associations sign onto our coalition letter to leadership of the Senate Commerce, Science and Transportation and House Transportation & Infrastructure Committees and the key subcommittees urging a House/Senate conference to resolve the differences between the Ocean Shipping Reform Act as passed by each chamber.
NITL further comments that demurrage and detention charges have skyrocketed during on-going port congestion and related supply chain disruptions and are a major concern for NITL members. Ensuring that demurrage and detention billing practices are fair and reasonable, including that demurrage/detention invoices contain sufficient information to assist the invoice recipient or payor with validating the charges is critical.
NITL Brad Hildebrand, testified before the U.S. House Subcommittee on Railroads, Pipelines and Hazardous Materials on March 8, 2022. You can read his full written testimony and attached examples.
NITL send strong follow-up comments to the U.S. House Subcommittee on Railroads, Pipelines and Hazardous Materials from the March 8, 2022, hearing.
2023 MEMBERSHIP DIRECTORY
