FMC launches rapid response team

Equinox

Tasked with easing tension between carriers and shippers The US Federal Maritime Commission (FMC) has established Rapid Response Teams to deal with shipper-carrier disagreements caused by container and vessel shortages.

FMC Commissioner Rebecca Dye told a transport subcommittee of the House of Representatives that the teams would be established in the commission’s Office of Consumer Affairs and Dispute Resolution Services to “quickly address and help resolve disputes”. Dye said: “The problems include cancelled bookings, rolled cargo and container unavailability. “We encourage shippers to call our Consumer Affairs Office and identify their problem as urgent. We will do our best to resolve the problem as soon as possible. “We will encourage each ocean carrier to name a representative to work directly with our recently established Rapid Response Teams to quickly address capacity and other urgent problems that arise between shippers and carriers.

“This carrier representative will be available at all times to respond to the inquiries of the commission on behalf of US shippers.” The FMC set up the Rapid Response Teams as a result of an investigation into capacity and container shortages experienced this year. It said the shortages had resulted in cargo bookings under service contracts being denied, abruptly cancelled or rolled to a later voyage, and a rapid series of incremental price increases.

The FMC said that, as a result of its investigation, it would also increase its oversight of rate recommending carrier groups the Transpacific Stabilisation Agreement (TSA) and Westbound Transpacific Stabilisation Agreement (WTSA) by requiring verbatim transcripts of certain agreement meetings. It will also examine ways it can increase its oversight of global vessel alliances. The FMC said it  would also extend its investigation from 31 July to 30 November, in order to continue it during the peak season. It will search for new solutions to problems indentified in the investigation, organise “best practice” discussion groups to look at cancellations and cargo-rolling and establish model contract terms, an export capacity working group and an intermodal working group on container availability.

Source: Damian Brett, IFW News, 01 July 2010