The Federal Maritime Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) has identified allegations of misconduct during the recent work stoppage at ports on the US East and Gulf Coasts as a top priority in its crackdown on carriers and marine terminal operators.
The BEIC has announced that it is reviewing any allegations of misconduct with the intent of prosecuting instances of unlawful conduct.
Its director has said that enforcement personnel are subpoenaing information and deposing witnesses as part of major investigations examining potentially unlawful behaviour by regulated entities.
“The BEIC has prioritised investigations of possible wrongdoing by common carriers or marine terminal operators where the alleged misconduct negatively impacts the industry or causes market distortion.”
He pointed out that such investigations were complex undertakings and that the BEIC was developing policies, procedures, and additional capabilities necessary to successfully examine and prosecute these cases.
Common carriers and marine terminal operators have also been warned that retaliation against parties who file complaints at the Commission is a separate, distinct offense under statute that carries serious consequences. FMC chairman, Daniel B Maffei, and each of the Commissioners reiterated that the Commission would not tolerate retaliatory conduct.
The Charge Complaint process, established by the Ocean Shipping Reform Act of 2022 (OSRA 2022), provides the public with a simplified way to challenge what they believe is an erroneously issued invoice.
Filing a Charge Complaint initiates an informal process at the Commission, meaning it takes place outside of a formal adjudicatory proceeding. Charge Complaints are investigated by the BEIC and could result in a recommendation that the Commission issue an Order to Show Cause, which could initiate a formal proceeding. Many Charge Complaints are settled to mutually agreeable terms during the investigatory phase of the process.
According to the FMC, as of September 30, common carriers have voluntarily waived or refunded $3 282 928.77 in charges raised by the Commission over a two-year period. This sum does not represent invoices waived or refunded when brought directly to the attention of a common carrier instead of by filing a Charge Complaint at the FMC. It also does not reflect any settlements agreed to or ordered as part of an adjudicatory proceeding at the Commission.
