S3.E11 - FMC's Final Rule on D&D Billing Requirements - Part 2 - Operational Implementation Challenges

By Land and By Sea

Topic of the Week (4/12/24):

Now that we’ve had a few weeks with the detention and demurrage rule, let’s talk key takeaways and things I think everyone should be paying attention to. What do I think will have the biggest growing pains? – the 30 calendar days on the invoice for the billed party to pay – stick around and I’ll explain why.

D&D Final Rule:

https://www.regulations.gov/document/FMC-2022-0066-0286

The Maritime Professorᵀᴹ presents By Land and By Sea - an attorney breaking down the week in supply chain

with Lauren Beagen (Founder of The Maritime Professorᵀᴹ and Squall Strategiesᵀᴹ)

Let's dive in...

1 - Checking in on the Federal Maritime Commission open rulemakings and stakeholder engagement: defining unreasonable refusal to deal or negotiate w/r/t vessel space accommodations provided by an ocean common carrier, defining unfair or unjustly discriminatory methods // MTDI RFIs)

2 - A quick overview of two notable actions at the FMC: Samsung Electronics America cases (still waiting on the replies; all we have are the initial complaints) and the MSC Mediterranean Shipping Company $63M enforcement action (still pending, likely to be appealed; waiting on MSC response due May 3))

Samsung v. COSCO (Samsung Complaint)
https://www2.fmc.gov/readingroom/docs/24-16/24-16%20Verified%20Complaint%20date%20stamped.pdf/

Samsung v. OOCL (Samsung Complaint)
https://www2.fmc.gov/readingroom/docs/24-17/24-17%20Verified%20Complaint%20date%20stamped.pdf/

OPENING BRIEF OF THE BUREAU OF ENFORCEMENT, INVESTIGATIONS, AND COMPLIANCE
https://www2.fmc.gov/readingroom/docs/23-08/23-08%20BEIC%20Opening%20Brief%20(public%20version)%20redacted.pdf/

3 - United Steelworkers (USW) petition to Office of the U.S. Trade Representative is now supported by SIX United States Senators (Tammy Baldwin (D-WI), Elizabeth Warren (D – MA), John Fetterman (D-PA), Bob Casey (D- PA), Sherrod Brown (D-OH), Mazie Hirono (D-HI))

Tomer Raanan's Article:

https://www.lloydslist.com/LL1148801/US-senators-rally-behind-labour-groups-urging-China-shipbuilding-probe

USW Petition to USTR:

https://ustr.gov/sites/default/files/Section%20301%20Petition%20-%20Maritime%20Logisitics%20and%20Shipbuilding%20Sector.pdf

Letter to USTR from six US Senators:

https://www.brown.senate.gov/imo/media/doc/baldwin_casey_grow_support_for_usw_petition_on_chinese_commercial_shipbuilding.pdf

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Chapters

1. Impact of FMC D&D Rule (00:00:27)

2. FMC Cases and Inland Charges (00:10:41)

3. Shipping Act Violations and Penalties (00:17:47)

4. Senators Call for China Investigation (00:25:23)

5. Demurrage and Detention Invoice Issuance (00:37:48)