FMC Monitors Strait of Hormuz Surcharges Amid Middle East Conflict
The Federal Maritime Commission is actively monitoring shipping conditions through the Strait of Hormuz and is ensuring that surcharges imposed by ocean common carriers in response to the ongoing Middle East conflict comply with the Shipping Act.
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.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
Laura DiBella Designated as Chairman of FMC
President Donald J. Trump has designated Commissioner Laura DiBella as Chairman of the Federal Maritime Commission, effective January 28, 2026, just weeks after she was sworn in as a Commissioner.
Here are key takeaways:
- New role: Laura DiBella has been designated by President Trump to serve as Chairman of the Federal Maritime Commission, making her the agency’s Chief Executive and Chief Administrative Officer.
- Quick ascent: DiBella was sworn in as Commissioner on January 6, 2026, and was elevated to Chairman just over three weeks later on January 28, 2026.
- Her term: She was nominated September 3, 2025, confirmed by the Senate on December 18, 2025, and serves a term expiring June 30, 2028.
- Her words: Chairman DiBella called the designation “nothing short of a privilege,” expressing gratitude for President Trump’s confidence and commitment to leading the Federal Maritime Commission team.
- Broader mission: She highlighted her focus on carrying out President Trump’s mandate of “Restoring America’s Maritime Dominance.”
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
MSC Assessed Civil Penalties Totaling $22.67 Million
The Federal Maritime Commission has concluded an enforcement proceeding against MSC Mediterranean Shipping Company, assessing $22.67 million in civil penalties for multiple Shipping Act violations spanning several years.
Here are key takeaways:
- Total penalty: The Federal Maritime Commission assessed $22.67 million in civil penalties against MSC Mediterranean Shipping Company across three categories of Shipping Act violations.
- “Merchant clause” violation ($65,000): Between 2018 and 2020, MSC improperly billed customs agents as “notify parties” for demurrage and detention charges via its “merchant clause,” even though those parties were not involved in moving the cargo.
- Tariff transparency violation ($9.46 million): From 2021 to early 2023, MSC failed to include required fee disclosures for non-operating reefers in its published tariff. Penalties escalated to reflect knowing and willful violations starting from March 2022, when MSC told the Commission it would modify its tariff but did not.
- Overcharging violation ($13.145 million): MSC overcharged demurrage and detention fees on approximately 23% of all non-operating reefer bills throughout 2021. The Commission reversed the Administrative Law Judge’s initial ruling, finding the overcharging was not a billing mistake but an unreasonable practice under the Shipping Act.
- Where the money goes: The Federal Maritime Commission does not retain civil penalty revenue — all payments go directly to the General Fund of the U.S. Treasury.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
FMC Temporarily Adds Two Administrative Law Judges to Handle Case Surge
The Federal Maritime Commission has temporarily brought on two administrative law judges from the U.S. Department of Health and Human Services to help manage a record surge in cases tied to pandemic-era supply chain disputes.
Here are key takeaways:
- New judges: Judge Jamie Mendelson and Judge Debra Tesh began at the Federal Maritime Commission on January 26, 2026, detailed through the end of the fiscal year via a memorandum of understanding between the two agencies.
- Judge Mendelson’s background: A Stanford Law graduate, she has served as a Supervisory Administrative Law Judge at the Department of Health and Human Services since 2019, previously worked as an Assistant United States Attorney for the District of Colorado, and is an active Air Force Reserve judge on the Air Force Court of Criminal Appeals.
- Judge Tesh’s background: A Seattle University School of Law graduate, she has served as a Supervisory Administrative Law Judge at the Department of Health and Human Services since 2019 and previously handled public assistance and protective services appeals in Washington state.
- Why it’s needed: The Federal Maritime Commission’s Office of Administrative Law Judges has seen a significant rise in the number and complexity of cases, many stemming from pandemic-era supply chain disruptions.
- Current bench: The two judges join Chief Administrative Law Judge Erin M. Wirth, Judges Linda S. Crovella, Alex M. Chintella, Richard Ambrow, and Mary Hervey.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
FMC Probes Ocean Common Carriers Over Chassis Usage Practice and Restrictions
The Federal Maritime Commission has opened a formal investigation into whether ocean common carriers are unlawfully limiting truckers’ and shippers’ ability to choose their own chassis providers, potentially violating the Shipping Act.
Here are key takeaways:
- What’s being investigated: Whether ocean common carriers are using rules, service contracts, or other means to unjustly restrict motor carriers and shippers from freely negotiating with chassis providers.
- Potential violation: Such practices may violate Section 41102(c) of the Shipping Act, which prohibits unfair or unjustly discriminatory methods by ocean common carriers.
- Public input sought: The FMC is calling on shippers, truckers, and other transportation providers to submit information on any restrictions or tactics imposed by ocean carriers on chassis selection.
- Comment deadline: Public comments must be submitted by March 27, 2026, via the Federal Register notice.
- Confidentiality requests: Commenters seeking confidentiality should contact FMC Secretary David Eng at Secretary@fmc.gov.
- Who’s leading it: The Commission’s General Counsel is heading the investigation under the FMC’s oversight authority per 46 U.S.C. §§ 41102(c) and 41104(a).
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
Laura DiBella Sworn In as FMC Commissioner
Laura DiBella of Florida has officially joined the Federal Maritime Commission as its newest commissioner, sworn in on January 6, 2026, with a term running through June 30, 2028.
Here are key takeaways:
- Nominated and confirmed: President Trump nominated DiBella on September 3, 2025; she was confirmed by the Senate on December 18, 2025, and appointed January 2, 2026.
- Maritime background: She previously served as Executive Director of the Florida Harbor Pilots Association and Port Director of the Port of Fernandina Ocean Highway and Port Authority.
- Commerce leadership: DiBella made history as Florida’s first female Secretary of Commerce and also served as President and CEO of Enterprise Florida.
- Education: She holds a B.S. in Human Resource Management and Business Administration from the University of Florida.
- What she brings: Her appointment adds economic development expertise, business management skills, and hands-on maritime industry experience to the Commission.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
FMC Testify before U.S. Senate Committee About Panama Canal
Federal Maritime Commission Chairman Louis E. Sola and Commissioner Daniel B. Maffei testified at a hearing today by the U.S. Senate Committee on Commerce, Science, and Transportation that explored the operation, control, and cost to use the Panama Canal.
Here are key takeaways:
Statement from Chairman Louis E. Sola:
- Vital to U.S. Trade: The Panama Canal handles 40% of U.S. container traffic ($270B annually).
- Drought Challenges: 2024 water shortages reduced transits; by 2050, capacity could drop 50% without improvements.
- Foreign Influence & Corruption: Chinese investments and Panama’s corruption issues threaten fair competition and security.
- U.S. Response: Support American businesses in Panama, protect Panama Canal Authority (PCA) independence, and expand FMC oversight to ensure fair practices.
Statement from Commissioner Daniel B. Maffei:
- Operational Risks: The Canal depends on freshwater, and droughts have repeatedly disrupted trade.
- Economic Impact: 2023-24 transit reductions raised shipping costs, worsened by Suez Canal disruptions.
- FMC Monitoring: U.S. regulators met with Panamanian officials; concerns remain over slot allocation pricing during crises.
- Future Actions: FMC will continue oversight and is prepared to intervene if U.S. trade is harmed.
Overall Summary:
- The Panama Canal is crucial to U.S. trade but faces climate, corruption, and foreign influence challenges. The U.S. must take proactive steps to ensure fair competition, maintain PCA independence, and protect America’s economic interests.
Video Recording:
- The full hearing, titled “Fees and Foreign Influence: Examining the Panama Canal and Its Impact on U.S. Trade and National Security,” is accessible on the Committee’s website.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
FMC’s Maximum Penalty Fees Adjusted
Effective January 15, 2025, the Federal Maritime Commission will increase the maximum penalties for statutory violations in compliance with the Federal Civil Penalties Inflation Adjustment Act of 2015. These increases are based on the rate of inflation.
Here are key takeaways:
Increased Penalties for Shipping Act Violations:
- Knowing and willful violations: Maximum penalty increases to $74,943 (up from $73,045).
- Non-knowing and willful violations: Maximum penalty increases to $14,988 (up from $14,608).
- Continuing violations: Each day constitutes a separate violation under the statute.
Foreign Carrier Fees:
- Under the Foreign Shipping Practices Act: Maximum per voyage fee increases to $2,626,135 (up from $2,559,636).
- Under the Merchant Marine Act of 1920: Maximum per voyage fee increases to $2,364,503 (up from $2,304,629).
Additional Penalty Adjustments:
- The Commission is also increasing fees for seven other penalties.
- The complete list of updated penalties is available in the Federal Register.
Disclaimer:
To view the original article, please click here. The information provided on this platform is for general informational purposes only and is not intended to be legal advice.
