The Federal Maritime Commission (FMC) has rejected a petition from ocean carriers and terminal operators who argued that limiting the scope of the party liable for per diem charges on containers would worsen air pollution at ports by creating more congestion.
However, according to the FMC, the proposed rule only seeks to clarify per diem bills and has no added effect on operations at port terminals.
PER DIEM RULE CLARIFIES DOUBTS ON UNCLEAR FEES
The proposed rule requires that specific information must be included on the per diem bills, such as when the containers were available, the allowed free time, and the rates charged. Due to several recurring complaints about excessive and unclear per diem fees, which resulted in ocean carriers collecting $6.9 billion in per diem fees over the last two years the motivation arose in establishing this rule.
As part of that rule, the FMC also sought to “prohibit billing parties from invoicing motor carriers or Customs brokers” for per diem fees, which must be paid before pulling a container.
The FMC advised there would be no environmental impact from the rule.
In December, the World Shipping Council (WSC) and the Pacific Merchant Shipping Association (PMSA) filed a petition arguing that removing truckers and customs brokers from paying per diem fees gives them no incentive to quickly move containers. As a result, the backlog of containers remaining at terminals would result in increased pollution at ports.
Nevertheless, the FMC determined the proposed rule doesn’t change any incentive to remove containers from the port, and only clarifies per diem billing. Motor carriers and other intermediaries are already encouraged to move cargo because of their contracts with shippers.
In a statement released last Friday, WSC and PMSA both advised they will work with the FMC to support efforts to quickly move cargo off ports but stood by their argument in the proposed petition.
For more information about the response to the FMC Chairman’s statement, you can visit the WSC’s website:
https://news.cision.com/world-shipping-council/r/pmsa-and-wsc-respond-to-fmc-chairman-s-statement,c3694137
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