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ACA Starts Petition Regarding Port Fees

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KEYWORDS ACA
Demurrage

Feb. 23, 2017—The Auto Care Association (ACA) submitted comments urging the Federal Maritime Commission (FMC) to begin a formal rulemaking concerning a petition from the Coalition for Fair Port Practices.

ACA and a coalition representing retailers, manufacturers, truckers, transportation intermediaries and other business groups filed the petition in December 2016, asking the FMC to set new policy preventing terminal operators and ocean carriers from charging fees when incidents such as storms and strikes keep cargo from being picked up from ports on time.

“Auto Care Association members were greatly affected by recent repeated incidents of disruption in operations and severe congestion at U.S. ports,” said Bill Hanvey, president and CEO, Auto Care Association. “Many firms with tightly integrated global supply chains were interrupted as a result of port delays. We are requesting in the petition that demurrage and detention practices be just and reasonable.”

"These additional costs associated with port delays ultimately lead to higher costs downstream to the consumer," ACA claimed in a press release.

Members interested in supporting this petition can submit comments to the FMC per instructions on the Federal Register Notice. For more information, please contact Angela Chiang.

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