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FMC investigating nearly 50 claims against carriers, NVOs

The FMC has started investigations into approximately half of the 95 charge complaints filed by shippers, forwarders, and drayage companies against ocean carriers, MTOs, and NVOs since June.

The FMC’s new Bureau of Enforcement is actively investigating half of those submissions. The remaining half stemmed from disputes that pre-date the June 16th enactment of OSRA-22, were incomplete, or were not in compliance with the complaint process.

Lucille Marvin, managing director at the FMC, said, “Reviews of charge complaints can take up to 30 days, depending on the thoroughness of the submission and the matter to be investigated.”

Complaints have become much easier and cost-effective for customers to submit following an update to the FMC’s charge complaint process. The new process negates the need for lawyers or application fees.

Filing range from questionable detention and demurrage charges, incomplete invoices, and unfair discriminatory charges to unreasonable refusal to deal or negotiate.

FMC Chairman Daniel Maffei said complaints pre-dating OSRA-22 must be declined due to the letter of the law.

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Trans-Pac blanking static despite falling imports

In October, trans-Pacific carriers intend to blank about the same amount of capacity as they did last October. However, this won’t stem rapidly falling spot rates as retailers forecast that YoY imports from Asia to the U.S. will drop each month for the remainder of the year.

Carriers plan to blank capacity totaling 698,505 TEU in October, or 23.8% of total capacity to the East and West coasts. In October 2021, carriers blanked 669,460 TEU, or 23.6% of total capacity.

The total capacity planned for deployment in the trans-Pac in October is 2.93 million TEU, compared to the 2.83 million TEU deployed in October 2021. From June to September, carriers blanked 43.8% more capacity than they did in the same period last year.

Asian imports are likely to turn negative in the coming months. The NRF is forecasting YoY declines in imports each month through the end of the year, resulting in an overall decrease of 3.1% for the second half of 2022.

In addition to blanking individual sailings, carriers are beginning to cancel entire vessel strings. For example, earlier this month, Matson Navigation Co. canceled its China-California (CCX) service, which offered expedited transit times and landside handling of containers as demand for premium services waned.

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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.