News / FMC says successfully disputed charges pass $1m landmark

The US Federal Maritime Commission (FMC) said that, in the 10 months since the Ocean Shipping Reform Act (OSRA) was passed, more than $1m of disputed charges to shippers and forwarders have been waived or refunded.

The commission said “the milestone” was passed on 1 May.

OSRA 2022 legislation simplified the process for disputing carrier and port terminal ancillary charges, such as detention and demurrage (D&D).

The focus on these charges, particularly D&D, became significant during the pandemic, when congestion at US ports was at its peak and containers were unable to be collected.

The FMC had said D&D charges should only be applied on containers overstaying at ports when they would help the flow of freight traffic through supply chains, rather than be an extra revenue stream for ocean or rail carriers and port operators.

In the US, these charges have been curbed as a result of OSRA. In Pakistan and Afghanistan, where regulators are less able to manage the rules around supply chains, shippers were levied thousands of dollars in D&D charges after floods prevented the movement of cargo.