Nine international shipping lines are being audited to see if they are following detention and demurrage requirements.

The Federal Maritime Commission audits nine of the top container carriers operating in U.S. markets to see if they abuse their market position by overcharging shippers for detention and demurrage costs.

According to FMC Chairman Daniel Maffei, the Vessel-Operating Common Carrier Audit Program will also “provide additional information valuable to the regular monitoring of the marketplace for ocean cargo services.”

Maersk, MSC, CMA CGM, COSCO Group, Hapag-Lloyd, ONE, Evergreen, HMM, and Yang Ming are the top nine carriers by market share covered in the audit.

“The Federal Maritime Commission is dedicated to ensuring that the law is followed and that shippers are not subjected to unfair disadvantages,” Maffei said, adding that his audit team will seek to improve communication with carriers on supply chain issues.

“Of course, the Commission will take appropriate action if the audit team uncovers improper activity. Furthermore, if needed, the information acquired during the audit process could result in modifications to FMC laws and industry guidance,” Maffei stated.

Following an executive order issued by the White House aimed at reining in what it considers excessive market power by ocean carriers, the FMC announced an agreement with the Department of Justice to strengthen economic oversight of foreign carriers serving in U.S. international container trades.

The audited carriers will be examined for conformity with FMC regulations governing detention and demurrage operations in the United States. Regardless of whether a formal or informal complaint has been lodged with the Commission, each will be audited, according to FMC. “The Commission will work with businesses to discuss how they are implementing the rule and to explain any questions or ambiguities they may have. Carriers’ information may be used to establish industry best practices.”

According to the agency, the audit program, which will be led by FMC Managing Director Lucille Marvin and initially comprised of current FMC workers, will be led by FMC Managing Director Lucille Marvin. The audit will begin with a request for information that will create a database of quarterly reports that will allow the Commission to analyze how detention and demurrage are handled. Individual interviews with the carriers will follow the responses.

According to the FMC, the audit may cover carrier billing processes, appeals procedures, penalties issued, and any other restrictive practices, in addition to detention and demurrage.

Based on Freight Wave’s article.