FMC to Audit Top Container Lines for Market Abuse and Unfair Fees
The Federal Maritime Commission (FMC) has launched a comprehensive audit of nine major container shipping lines to investigate potential market abuse and excessive detention and demurrage charges imposed on shippers.
Scope of the Investigation
The audit targets nine of the largest container carriers operating in U.S. markets to determine whether they are exploiting their market position by overcharging shippers for detention and demurrage costs. This investigation comes as part of increased regulatory scrutiny of the shipping industry's pricing practices.
According to FMC Chairman Daniel Maffei, the Vessel-Operating Common Carrier Audit Program will provide "additional information valuable to the regular monitoring of the marketplace for ocean cargo services."
Major Carriers Under Scrutiny
The audit encompasses the industry's dominant players by market share: Maersk, MSC, CMA CGM, COSCO Group, Hapag-Lloyd, ONE, Evergreen, HMM, and Yang Ming. These carriers collectively control a significant portion of container shipping capacity serving U.S. ports.
Regulatory Response and Enforcement
"The Federal Maritime Commission is committed to ensuring compliance with maritime law and protecting shippers from unfair business practices," Chairman Maffei stated. The audit team will focus on improving communication with carriers regarding supply chain challenges while maintaining strict oversight.
Maffei emphasized that the Commission will take decisive action if improper activities are discovered. The information gathered during the audit process may also lead to updates in FMC regulations and industry guidance documents.
White House Initiative and DOJ Collaboration
This audit follows a White House executive order targeting what the administration considers excessive market concentration among ocean carriers. The FMC has established a partnership with the Department of Justice to enhance economic oversight of foreign carriers operating in U.S. international container trades.
Audit Methodology and Timeline
The investigation will examine carriers' compliance with FMC regulations governing detention and demurrage operations in the United States. Each carrier will undergo audit regardless of whether formal complaints have been filed against them.
The Commission plans to collaborate with shipping companies to review their implementation of current rules and address any regulatory uncertainties. The findings may be used to establish industry best practices and improve operational standards.
Led by FMC Managing Director Lucille Marvin, the audit program will begin with comprehensive information requests to create a database of quarterly reports. This will enable the Commission to analyze detention and demurrage handling practices across the industry. Individual carrier interviews will follow the initial data collection phase.
The audit scope extends beyond detention and demurrage to include carrier billing processes, appeals procedures, penalty assessments, and other potentially restrictive business practices that may impact fair competition in the maritime shipping sector.