• Tue. Sep 20th, 2022

U.S. Federal Maritime Commission Strengthens Law Enforcement

ByChad J. Johnson

Aug 1, 2022

The new Office consolidates investigation and prosecution processes as the FMC seeks to strengthen enforcement of the Marine Navigation Reform Act 2022 (OSRA 2022). The Office will be headed by a senior executive service attorney with regulatory, prosecution and investigative experience.

“Strict enforcement of the Shipping Act is absolutely essential to the effectiveness of the Federal Maritime Commission. This reorganization has the support of all five commissioners and creates a structure better suited to fulfill the mandate the President and Congress have given this agency to prioritize enforcement,” said CMF Chairman Daniel B. Maffei. .

“Specifically, it enhances FMC’s ability to scrutinize the conduct of shipping carriers and marine terminal operators to ensure legal compliance and fairness for U.S. importers and exporters.”

The recent passage of OSRA 2022 has seen the President, Biden and Congress take a keen interest in the excessive profits being collected by shipping companies and the inability to serve US exporters and consumers.

The Bureau is divided into the Office of Enforcement, the Office of Investigations and the Office of Compliance. The Commission’s Executive Director, Lucille M. Marvin, will also act as interim director until a permanent director is hired.

Following the enactment of OSRA 2022 by President Biden on June 16, new legislation on demurrage and detention came into force by the FMC. You can read the key points of this legislation here: New US demurrage and detention rules – what you need to know

In early June, the FMC agreed with Hapag-Lloyd on a $2 million fine, following a ruling in April in a case involving container return difficulties at the ports of Los Angeles and Long Beach.