THE US Federal Maritime Commission (FMC), announced an
investigation into carriers' role in congestion at the ports of Los Angeles,
Long Beach, New York, and New Jersey.
Commissioners Carl Bentzel and Daniel Maffei expressed their
concern with reports that carriers were refusing to receive export
bookings, and that high import demand was causing operational challenges.
"We
want to stress the point that in responding to import cargo challenges, ocean
carriers should not lose sight of their common carriage obligations to provide
service to US exporters," said the commissioners.
"As
our ports experience unprecedented cargo surges, it is imperative that we
strive for a balanced trade to keep our supply chain fully effective and
efficient while maintaining vital export opportunities for the US agriculture
and manufacturing bases," said the commissioners.
Some
carriers are refusing export bookings so they can ship empty containers back to
Asia faster to be refilled with higher-paying US imports from Asia.
"The
fundamental driver here is the enormous, record-breaking consumer demand in the
US [and in other developed economies], which has to be satisfied. So, the
equipment crunch is a symptom, not a cause," said World Shipping Council (WSC) CEO John Butler.
The
Shipping Act of 1984 forbid carriers from unreasonably refusing to deal or
negotiate, and that two or more carriers can't agree to boycott a shipper.
"Although
we are very concerned about reports of refusals to provide service to our
export community, we would be remiss in not acknowledging the extraordinary
challenges caused to the supply chain because of Covid-19," said the
commissioners.
Source
: HKSG / Photo : Interlog USA.
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