In 2020, the American Trucking Association (ATA) and Intermodal Carriers Conference (IMCC) claimed the driving contributors to a $1.8 billion shipping delay cost accumulation were merchant haulage contracts. These contracts, between ocean carriers and shippers, create limitations of chassis options for trucking companies. The overall verdict was in favor of the trucking companies, claiming constraints on choice of chassis for merchant hauling were irrational. The only exception were contracts that designate a default chassis provider when a motor carrier has no preference.
FMC RULING REGARDING MERCHANT HAULING CONTRACTS
After years of continuous debate among the ATA and IMCC against the Ocean Carrier Equipment Management Association (OCEMA), the Federal Maritime Commission (FMC) chief administrative judge determined the contracts are a violation of the U.S. Shipping Act.
The final decision will not put an end to the ongoing dispute between ocean carriers and shippers but is expected to reduce supply chain delays by allowing U.S. motor carriers to utilize specific chassis providers and prevent the practice of foreign owned shipping lines.
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