FMC clarification leaves older carrier fee complaints open to challenge

The US Federal Maritime Commission has confirmed that a three-year limitation period does not apply to charge complaints concerning carrier fees assessed on or after 16 June 2022, gCaptain reported. The clarification leaves carriers potentially facing challenges over older charges that might otherwise have been considered beyond the deadline for bringing a case.

Charge complaints give parties with an interest in affected cargo a means of disputing carrier fees they consider unfair. According to gCaptain, use of the process increased sharply after the pandemic as shippers pursued repayment of detention and demurrage charges. A litigation source cited by The Loadstar said much of the disputed activity occurred between 2021 and 2023, making the approaching three-year deadlines a concern for prospective claimants.

The absence of that deadline could be particularly helpful to small and medium-sized businesses, the report said. It could also remove pressure on shippers to lodge complaints before they believe their claims expire. The clarification concerns fees assessed from the specified June 2022 date; the report does not describe an equivalent change for charges imposed before then.

The FMC has also broadened the procedural options available for charge complaints while preserving the requirement for carriers to justify their fees. Shippers could previously pursue cases through small-claims or formal proceedings, but doing so outside the dedicated charge complaint mechanism meant losing the Ocean Shipping Reform Act's benefit of placing the burden of proof on the carrier. According to the litigation source, carriers must now demonstrate that a charge is legitimate regardless of the route used to challenge it.

Supply chain law firm Husch Blackwell advised shippers and non-vessel-operating common carriers to review detention and demurrage assessments and retain comprehensive invoices and bills of lading to protect potential claims. The report also highlighted a longstanding obstacle for smaller shippers: the expense of pursuing an FMC case could exceed the amount they expected to recover.