FMC says successfully challenged charges surpass $1 million mark

The U.S. Federal Maritime Commission (FMC) said that in the 10 months since the Ocean Shipping Reform Act (OSRA) was passed, more than $1 million in disputed shipper and carrier fees have been waived or reimbursed.

The commission said “the milestone” was passed on May 1st.

The 2022 OSRA legislation simplified the process for contesting airline and port terminal ancillary charges, such as B. Detention and Demurrage (D&D).

The focus on these fees, particularly D&D, became significant during the pandemic as congestion at US ports peaked and containers could not be picked up.

The FMC had said that D&D fees should only be levied on containers that survive in ports if they would support the flow of cargo traffic through supply chains, rather than being an additional revenue stream for sea or rail carriers and port operators.

In the US, these charges have been curbed due to OSRA. In Pakistan and Afghanistan, where regulators are less able to manage the rules surrounding supply chains, shippers have been hit with thousands of dollars in D&D fees after floods prevented cargo from moving.

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