FMC examines ocean carrier billing practices

U.S. Federal Maritime Commission exams allegations of abuse in ocean carrier billing practices. (Photo: Jim Allen/FreightWaves)

The U.S. Federal Maritime Commission (FMC) said it is seeking information from the container-shipping public on alleged attempts by ocean carriers to hold companies financially responsible for transportation services that they did not contract for and may not legally be required to pay.

The FMC said it received comments for its earlier Docket No. 19-05, Interpretative Rule on Detention and Demurrage under the Shipping Act, from industry groups such as the Agriculture Transportation Coalition and National Customs Brokers and Forwarders Association of America that raised concerns about these billing practices and initiated the notice of inquiry.

Specifically, allegations point to ocean carriers defining “merchant” in their bills of lading to include persons or entities with no beneficial interest in the cargo and that have not consented to be bound by the terms in the bill of lading.

Entities being tied to merchant obligations in ocean carrier bills of lading may include non-vessel-operating common carriers, freight forwarders and truckers.

Separately, the FMC’s Bureau of Enforcement will seek specific billing information from certain ocean carriers serving U.S. international container trades.

FMC Chairman Michael Khouri requested those in the ocean shipping industry share their experiences with bills of lading that contain the alleged merchant clauses.

“Without public comment and involvement, it is difficult for the commission to address alleged commercial abuse in this area,” he said in a statement.

Related News

3PLs frustrated by ocean service contracted rate upheaval

FMC keeps spotlight on ocean forwarder, consolidator concerns

How the FMC monitors ‘blank sailings’ and their competitive impacts

Click for more FreightWaves/American Shipper articles by Chris Gillis.

Upcoming FreightWaves Events
Compliance

Brokerage Compliance Symposium

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Awards

F3 Awards Dinner

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Compliance Brokerage Compliance Symposium Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Awards F3 Awards Dinner Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now

Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.