In the aftermath of the Francis Scott Key Bridge collapse on March 26, which significantly disrupted operations at the Port of Baltimore, federal regulators at the Federal Maritime Commission (FMC) are gearing up for a potential influx of container fee disputes. The incident led to the immediate rerouting of cargo, with the world’s largest ocean carrier, MSC, notifying customers of changes in cargo destinations. MSC stated that containers originally bound for Baltimore would now be diverted to alternate ports along the U.S. East Coast, effectively ending the carriage contract at these new locations instead of continuing inland via truck or rail as initially planned.
This abrupt change in cargo routing is expected to trigger a variety of logistical challenges, including issues related to the pickup and return of containers due to differences in available chassis and infrastructure at the alternate ports. FMC Commissioner Carl Bentzel expressed concerns over the possible complications arising from these dislocations, including detention and demurrage disputes. With the FMC’s new rule on demurrage and detention set to take effect on May 26, there is hope that the updated guidelines could mitigate disputes by clarifying billing processes, dispute resolution, and billing timeframes.
Furthermore, Bentzel highlighted the potential role of the Maritime Transportation Data Initiative (MTDI) in addressing such supply chain disruptions more effectively. Launched in November 2021, the MTDI aims to enhance the transparency and real-time tracking of container shipments, offering a stark contrast to the voluntary Freight Logistics Optimization Works (FLOW) initiative by the U.S. Department of Transportation. The MTDI seeks to mandate the provision of scheduling information by ocean carriers, which would be publicly available for all major container ports, offering a more structured approach to managing shipping schedules and disruptions.
The recent events, including the Baltimore bridge collapse and adjustments in shipping routes due to factors like the Panama Canal traffic and Red Sea incidents, underscore the urgent need for greater clarity and efficiency in maritime logistics. Bentzel is working towards transforming industry recommendations into the Maritime Transportation Data System (MDTS), which would impose visibility requirements for in-transit containers, aiding shippers in better planning and response to unexpected changes. Despite some hesitation from carriers about regulatory mandates, the push for this initiative reflects a broader effort to fortify the resilience and transparency of the U.S. shipping and logistics infrastructure.
Source:
Leave a Comment