FMC Names Benjamin Trogdon Director of Enforcement

The Federal Maritime Commission (FMC) has appointed Mr. Benjamin K. Trogdon as Director of the Commission’s Bureau of Enforcement (BOE). Mr. Trogdon joined the FMC in July 2000 and most recently served as a Trial Attorney in BOE. He replaced Mr. Brian L. Troiano, who retired last month. The Bureau of Enforcement (BOE) is the prosecutorial arm of the Commission; its attorneys participate as trial counsel in formal Commission proceedings and work closely with the Commission’s Area Representatives in investigations of potential violations of the Shipping Act and Commission regulations. Bureau attorneys also negotiate settlements and informal compromises of civil penalties.

“The Bureau of Enforcement is one of the key line activities of the Federal Maritime Commission. Mr. Troiano was a strong leader of the BOE team. We appreciate and value his dedicated service to the Commission and the shipping public and wish him well in his retirement. I have full confidence that Mr. Trogdon will be a very effective leader and manager of the Bureau as it works to ensure competition and integrity for America’s ocean supply chain,” said FMC’s Managing Director, Ms. Karen Gregory.

During his tenure at the FMC, Mr. Trogdon has also served as an Attorney-Advisor in the Office of the General Counsel. Prior to joining the Commission, Mr. Trogdon served as a maritime attorney in private practice. He earned his Bachelor of Arts degree from the University of North Carolina and a Juris Doctorate degree from the Vermont Law School.

Commissioners to Review FMC Investigation on Detention and Demurrage Practices

The Federal Maritime Commission (FMC) announced its Commissioners met in closed session on September 4, 2018 to review FMC Fact Finding Investigation No. 28. This is a formal investigation headed by Commissioner Rebecca Dye focused on the practices of vessel operating common carriers and marine terminal operators related to detention, demurrage, and per diem charges.

FMC Fact Finding Investigation No. 28 was initiated in March 2018. An interim report of findings and recommendations was due on September 2, 2018, but this report is confidential to the Commission. A final report is due on December 2, 2018. Final reports in other Fact Finding Investigations (FFI) have been made public. For example, in 2011, the FMC made public its report in FFI No. 27, which focused on Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices Related to the Movement of Household Goods. This report provided several recommendations to the Commission staff.

This investigation of detention and demurrage practices was prompted by Petition P4-16, which was submitted by the Coalition for Fair Port Practices in December 2016 and has generated many comments. In January 2018, the Commission held two days of hearings on issues raised in this petition by soliciting testimony from shippers, ocean transportation intermediaries, ocean carriers, truckers, and marine terminal operators.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective October 1, 2018

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective October 1 through December 31, 2018. Details are as follows.

Here is a table of some of the leading carriers that have posted BAF amounts in their FMC tariffs:

Note 1: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Transpacific Eastbound Carriers File GRIs Effective September 15 and October 1, 2018

Some carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective September 15, 2018, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, and Yang Ming. See tables below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula.

The following carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective October 1, 2018. Details are as follows:

Note 1: COSCO GRIs apply on all cargo moving under service contracts only.

Each carrier maintains its own tariffs and controls its own pricing.

Transpacific Westbound Carriers Update Fuel Surcharges Effective October 1, 2018

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the October to December 2018 quarter. Here is a table of carriers that have posted updates to fuel surcharges (bunker adjustment factors) in their FMC tariffs:

Note 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS.

Note 2: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Each carrier maintains its own tariffs and controls its own pricing.