Page 24: of Maritime Reporter Magazine (October 2020)

Insights | Federal Maritime Commission 2020 SHIPPING & PORT ANNUAL

FMC: Ocean Shipping

Challenges Abound

By Michael A. Khouri, Chairman, Federal Maritime Commission ince early Spring 2020, American consumers have the earliest phase of this Fact Finding, Commissioner Dye and received a practical education in supply chain opera- the industry stakeholder teams developed recommendations tions. One lesson is that it takes more than simply that would bene? t the management of cargo ? ows through going online and clicking a “Buy Now” button for marine gateways. The focus of Fact Finding 29 has turned to

S goods to show-up on our front porches. While the networks exploring actions that can lay the best foundations to prepare and systems that deliver commodities from around the globe the ocean supply chain for the regular volumes of trade that might have been stretched as a result of COVID-19 related we are accustomed to seeing at our ports. impacts, the men and women who move the freight have While the FMC is more commonly associated with main- worked sel? essly and tirelessly to meet consumer and manu- taining the commercial integrity of the marketplace for con- facturing demand. tainerized ocean cargo, our agency also has regulatory over-

Early on in the response to COVID-19, I asked my fellow sight related to passenger vessel operators regarding cases of

Commissioners and Federal Maritime Commission (FMC) cruise non-performance and onboard injuries or deaths. Com- staff to identify any regulatory relief our agency could grant missioner Louis Sola was appointed to lead Fact Finding 30 that might make a difference to American shippers and con- to examine COVID-19 related impacts to the cruise industry. sumers, ocean carriers, non-vessel operating common car- Over the past months, Commissioner Sola has documented riers, freight forwarders, and marine terminal operators. In how COVID-19 and the cessation of passenger cruises has

April, the FMC voted to allow parties to ? le service contracts impacted not only cruise vessel operators, but also ocean up to 30 days after they take effect. The Commission institut- ports and related industries that support the cruise industry. ed this relief through December 31 as response to information He has engaged in outreach to senior levels of other federal developed in Fact Finding 29, which is focused on COVID-19 agencies, including the Departments of Transportation and related impacts on the ocean supply chain. Homeland Security, to share the Fact Finding’s assessments

The FMC is currently considering a proposal to make this and interim conclusions – all focused on facilitating conver- temporary 30-day contract ? ling exemption a permanent part sations about next steps to safely restart cruise operations, of our agency regulations. Such regulatory relief, if and when getting cruise industry people back to work, and allowing enacted, would bene? t our import and export shipper com- American cruise vessel patrons to again enjoy the services of munity by increasing freight ? uidity. It would also be another the cruise vessel industry.

meaningful step in response to a prior World Shipping Council The FMC’s attention has not been solely focused on COVID. petition seeking regulatory relief from service contract ? ling In addition to the two Fact Findings, we have maintained at- requirements. The National Industrial Transportation League, tention on ongoing ocean carrier competition monitoring and a major trade association representing American shipper inter- we continually work to re? ne our operations to meet changes ests, ? led their support for the WSC petition. in industry operations.

Since Fact Finding 29’s launch in March, Commissioner The FMC responded to impacts on the ocean supply chain

Dye assembled Supply Chain Innovation Teams in Los Ange- via several initiatives. Overarching all agency missions is our les/Long Beach, New York/New Jersey and New Orleans. In commitment to the close monitoring of ocean carrier coopera- 24 Maritime Reporter & Engineering News • October 2020

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