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International Cooperation Department
Tel.: (+86-21) 65853850-8034
Fax: (+86-21) 65373125
E-mail: ICDept@sisi-smu.org
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International Shipping |
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| FMC rejects denies using rules to regulate prices |
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Date:2025-03-19 Readers:
2
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THE Federal Maritime Commission (FMC) denies it is trying to regulate rates by issuing a rule that prohibits ocean carriers unreasonably refusing slots on demand, reports New York's FreightWaves.
The final rule, which also addresses instances in which carriers refuse to deal or negotiate contract provisions with their customers regarding container vessel space, was required under the Ocean Shipping Reform Act of 2022, which takes effect September 23.
"This rule establishes the necessary elements for the FMC to apply federal law with respect to refusals of cargo space accommodations when available," states the rule's preamble. "This rule applies to complaints brought before the FMC by a private party, as well as enforcement cases brought by the Commission."
When the rule was going through the rulemaking process last year, carriers complained about a provision allowing the agency, to evaluate whether an ocean carrier's refusal to deal or negotiate with a customer was reasonable, to consider when carriers quoted rates were so far above market that they could not be considered good faith negotiation.
But the World Shipping Council (WSC) that represents liners, said: "There is no scenario under which an agency that does not have authority to regulate rates can permissibly use rate levels as a measure of reasonableness.
"Clear law aside, the commission's proposal cannot work as a practical matter. How high is too high, and on what basis is the commission to decide?" said the WSC,
In responding to complaints alleging rate regulation, the FMC said it is "simply providing a comparison point between rates a carrier offers in negotiation, and rates that the rest of the market is charging for that space," the agency stated.
https://www.shippingazette.com/news?news_id=9250300000487
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