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FMC reorganizes enforcement duties after OSRA-22

The FMC said it is consolidating its investigative and prosecutorial duties into a newly created Bureau of Enforcement, Investigations, and Compliance (BEIC).The reorganization follows an internal FMC investigation to identify ways to increase the effectiveness of the commission’s enforcement and compliance activities as OSRA 2022 rolls out.

The FMC stated, “The review determined a restructuring and merging of enforcement and compliance programs would result in a more efficient, coordinated, and responsive operation from initiation to conclusion of an investigation.” The BEIC will be comprised of three sections: the Office of Enforcements, the Office of Investigations, and the Office of Compliance, with each having its own director.

Under OSRA-22, the FMC is required to increase its staff by no fewer than seven positions to assist in investigation oversight. As part of the reorganization, the FMC will convert the roles of area representatives to investigators who will solely focus on enforcement activity.

The FMC has already filled a few new positions. Although the agency has 18 months to fill the roles, hiring will be done in fiscal year 2022. Maffei said in June the agency was already understaffed and his goal was to increase the team of 115 to 150 as soon as possible.

The new FMC enforcement bureau will be led by an attorney with regulatory, prosecutorial, and investigative experience. FMC Managing Director Lucille M. Marvin will serve as acting BEIC director until a permanent hire is made.

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East Coast vessel reliability dipped in June

Vessel on-time performance to the U.S. East Coast declined for the second straight month in June amid rising imports and worsening terminal congestion at major gateways. East Coast schedule reliability fell to 18.7% in June from 20% in May. It is the lowest on-time performance for the East Coast ports since January.

U.S. retailers have shifted some of their imports to the East Coast as a hedge against possible disruption at West Coast ports due to ongoing longshore contract negotiations. While that has slowed import growth at West Coast Ports, it has caused challenges along the East Coast.

Earlier this week, Savannah said it had 40 vessels anchored outside the port and an additional 265,000 containers en route, prompting it to increase truck gate hours by one hour each weekday beginning August 1st to help handle the volumes.

Schedule reliability to West Coast ports improved for the fifth consecutive month in June to 24.8% from 22% in May. U.S. imports from Asia in June increased 12.7% YoY. The East Coast share of Asian imports increased to 34.1% from 33.3% in May, while the West Coast share fell to 59.3% from 60.3%.

Globally, vessel on-time performance in June rose 3.6 percentage points to 40%. U.S. retailers forecast continued import growth in the second half of the year, although not nearly at the torrid pace of last year when U.S. imports jumped 17.4% from 2020.

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About O’Neill Logistics

O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.

O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.

Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.