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US shippers ask Congress to tell FMC to regulate rail demurrage

Author:   Posttime:2023-05-12

SHIPPERS and forwarders called on the Congressional Transportation committee to direct Federal Maritime Commission (FMC) to supervise railway container storage fees, reported New York's Journal of Commerce.

In a letter, the 70-member group called on the committee to push legislation that would make rail storage charges assessed as part of through bills of lading invoiced to importers by ocean carriers, rather than railways.


"While we do not suggest that railroads themselves would or should be regulated by the FMC, the storage charges under bills of lading should be invoiced through the ocean carriers," the letter said.


"Rail storage charges assessed against containers moving in international commerce, an as-yet unaddressed abuse of demurrage charges, should clearly and formally fall within FMC authority through an act of Congress," they said.


Currently, there is no regulatory agency with direct authority to oversee application of rail storage fees under ocean carriers' through bills of lading and to determine whether those charges are assessed properly.


In March, the National Shipping Advisory Committee also urged the FMC to step in and regulate "abuse" of the storage fee system, asking that rail operators invoice ocean carriers directly for storage.

source:SchedNet

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