FMC Commissioner Sola to Lead Fact Finding Investigation of Cruise Line Issues

As a temporary measure to relieve COVID-19 impacts to the supply chain FMC Commissioner Louis E. Sola will lead a fact finding investigation and work with key industry stakeholders to identify commercial measures passenger cruise lines can adopt to mitigate COVID-19 related impacts to this sector of the maritime industry. The Federal Maritime Commission designated Commissioner Sola to serve as the Fact Finding Officer for Fact Finding 30, “COVID-19 Impact on Cruise Industry.”

In the course of his investigation Commissioner Sola will engage cruise industry stakeholders to identify commercial solutions to COVID-19 related issues interfering with the operations of the industry; interact with any or all maritime related COVID-19 task forces in order to gather information and data related to the impact of COVID-19 on the cruise industry; establish at least one team of leaders from the cruise industry, as well as other stakeholders, to develop commercial solutions to the challenges created by the COVID-19 pandemic.

Commissioner Sola has full authority under 46 CFR Part 502.281-291 to perform his investigative duties, including the ability to issue subpoenas, and take depositions, and hold hearings. No single federal agency has exclusive or comprehensive authority over cruise lines. The Federal Maritime Commission’s jurisdiction over the cruise industry is provided in 46 U.S.C. Chapter 441, the most relevant provision of which is related to the financial responsibilities of cruise lines for non-performance of transportation. These provisions apply to companies operating vessels with 50 or more berths that embark passengers at locations in the United States.

FMC Orders Investigation into Alleged Discriminatory Canadian Regulations

The Federal Maritime Commission has voted unanimously to accept a petition filed by the Lake Carriers’ Association (LCA) that alleges new ballast water regulations, as proposed by the Government of Canada, will discriminate against the U.S. flag vessel operators. The LCA petition, which is designated FMC Petition P1-20, prompted the Commission to initiate an investigation to gather information and to solicit public comments. The investigation will examine the detriment and harm to the U.S. flag fleet resulting from the proposed regulations.

Based on this investigation, the Commission will consider all options, statutory remedies, and sanctions that are available under Section 19(1)(b) of the Merchant Marine Act, 1920, as amended (Section 19), codified in 46 U.S.C. Chapter 421. Section 19 of the Merchant Marine Act, 1920, provides the FMC with authority to investigate and sanction discriminatory conditions caused by laws, rules, or regulations of foreign governments. If the Commission finds that such regulations result in conditions unfavorable to shipping in a U.S.-foreign trade, then Section 19 provides with several remedies that include: levying fines on vessels calling at U.S. ports, prohibiting vessel calls at U.S. ports, and restricting cargos that may be carried between the U.S. and the foreign country.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective July 1, 2020

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective July 1 through September 30, 2020. Details are as follows.

Here is a table of carriers that have posted BAF amounts:

NOTE 1: APL calls the above Bunker surcharge the Bunker Charge - Transpacific and Latin America Eastbound Trade (BAF03/BSC), tariff Rule No. R010, Sub Rule No. B02.

NOTE 2: CMA CGM calls the above Bunker surcharge the Bunker Adjustment Factor Surcharge (BAF03), tariff Rule No. 010.08.

NOTE 3: ONE calls the above Bunker surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 4: OOCL calls the above Bunker surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge above is effective June 1, 2020 until further notice. The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge (T-52) and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge (T-51, T-63) are already applied or included in the base rate. The Bunker Surcharge (T-52) does not apply for the Transpacific trade lane effective January 1, 2020.

NOTE 5: Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 6: Updated on a monthly basis.

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

Transpacific Eastbound Carriers File GRIs Effective June 15 and July 1, 2020

Several leading carriers serving the Trans Pacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective June 15, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant Marine, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The June 15th GRIs will be the twelfth GRI of 2020 for the East Asia/USA trade lane.

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

Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective July 1, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The July 1st GRIs will be the thirteenth GRI of 2020 for the East Asia/USA trade lane.

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

Transpacific Westbound Carriers Update Fuel Surcharges Effective July 1, 2020

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the July to September 2020 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: APL calls the above Bunker surcharge the Bunker Surcharge (BAF03), tariff Rule No. R010, Sub Rule No. B00A.

NOTE 2: CMA CGM calls the above Bunker surcharge the Bunker Adjustment Factor Surcharge (BAF-03), tariff Rule No. 010.4.

NOTE 3: ONE calls the above Bunker surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 4: OOCL calls the above Bunker surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge above is effective June 1, 2020 until further notice. The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge (T-52) and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge (T-51, T-63) are already applied or included in the base rate. The Bunker Surcharge (T-52) does not apply for the Transpacific trade lane effective January 1, 2020.

NOTE 5: Yang Ming calls the above Bunker surcharge the New Bunker Charge, rule number 10-AH.

NOTE 6: Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 7: Updated on a monthly basis.

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