FMC Monitors Strait of Hormuz Surcharges Amid Middle East Conflict

Here are key takeaways:

• Active oversight: The Federal Maritime Commission is closely watching how the Middle East conflict is affecting shipping through the Strait of Hormuz and surrounding waters, ensuring carrier rates and charges remain lawful.
• 30-day rule: Regulations require common carriers to provide at least 30 days between publishing and implementing any tariff change that increases costs to shippers.
• Special Permission requests: Carriers seeking to reduce the 30-day waiting period must submit a Special Permission request showing good cause. The Commission reviews and votes on all such requests, and any approval will specify the permitted effective date.
• Shipper guidance: Shippers are encouraged to review their carrier’s published tariff and be familiar with their service contract terms, as rates and charges must be in effect at the time cargo is received.
• Contract disputes vs. Shipping Act violations: Breaching a service contract and violating the Shipping Act are distinct issues. Contract disputes must be resolved in court or through agreed alternative dispute resolution, while potential Shipping Act violations can be investigated by the Commission.
• How to file a concern: Shippers who believe a carrier is not complying with tariff regulations should file a complaint with the Federal Maritime Commission or contact the office of Consumer Affairs and Dispute Resolution Services.