How the FMC Final Rule on Refusal to Deal Empowers U.S. Exporters

The Federal Maritime Commission (FMC) has introduced a Final Rule on Refusal to Deal or Negotiate With Respect to Vessel Space Accommodations, offering critical support to U.S. exporters of agriculture, food, and commodities. This rule ensures fairness, accountability, and transparency in how ocean common carriers allocate vessel space. Here’s what you need to know about the rule, its implications, and how to leverage it to secure your export shipments.

Key Insights from the FMC Final Rule

Scope

• Prohibits unreasonable refusal to negotiate or provide vessel space accommodations.
• Applies to all stages of the shipping process, from negotiation to execution.

Transparency Requirements

• Carriers must file annual export policies with the FMC, detailing service practices.
• Invoices must include mandatory information such as free time, container availability, and compliance with FMC rules.

Accountability Measures

• Carriers must justify vessel space refusals based on valid operational factors.
• Exporters can file complaints, with the FMC ensuring resolution within 30 days.

Common Challenges Solved by the FMC Rule

1. Unfair Practices:
   • Prioritizing high-revenue import cargo over exports.
   • Rolling confirmed bookings without valid reasons.
2. Transparency Gaps:
   • Lack of clear communication on vessel schedules or blank sailings.
3. Operational Hurdles:
   • Inland ramp delays for containerized shipments.
   • Reefer container shortages affecting perishable exports.

Real-World Scenarios and Solutions

Scenario 1: Rolling of Export Cargo Due to Blank Sailings

• Problem: A California-based exporter of fresh produce faced repeated booking cancellations, resulting in stranded perishable goods.
• Solution: Document cancellations, request the carrier’s export policy, and escalate unreasonable practices to the FMC Complaint Portal.

Scenario 2: Inland Ramp Delays for Grain Shipments

• Problem: Delayed container pre-positioning at inland ramps caused missed vessel cutoffs and financial losses for a Kansas grain exporter.
• Solution: Proactively monitor container availability and escalate delays to the FMC for resolution.

Scenario 3: Reefer Container Shortages for Frozen Meat Exports

• Problem: Reefer container shortages at Gulf Coast ports led to spoilage risks and higher costs.
• Solution: Collaborate with carriers offering documented reefer management plans and leverage the FMC’s mechanisms for enforcement.

Actionable Steps for Exporters

Using FMC Tools

1. FMC Complaint Portal:
   • Submit disputes, ensuring all required documentation (e.g., annotated invoices, terminal logs) is included.
   • Monitor complaint progress and request updates on resolution timelines.
2. Export Policy Review:
   • Annually request carriers’ export policies to understand their practices and verify compliance.
3. Dispute Filing Templates:
   • Use structured templates like the Dispute Preparation Checklist and Complaint Submission Template for FMC to strengthen your submissions.

Creating a Compliance Strategy

1. Audit Carrier Practices:
   • Track booking rejections, cancellations, and adherence to FMC requirements.
2. Centralize Documentation:
   • Digitize and organize key documents such as terminal logs and Bills of Lading to streamline dispute submissions.
3. Leverage FMC Resources:
   • Attend FMC-hosted workshops and webinars to stay informed.

Avoiding Common Pitfalls

1. Missed Filing Deadlines:
   • File disputes within the FMC’s mandated 30-day window.
2. Incomplete Documentation:
   • Ensure your submission includes all required evidence, including annotated invoices and communication logs.
3. Lack of Follow-Up:
   • Regularly check the status of your case and maintain communication with FMC representatives.

Resources and Templates for Exporters

• FMC Complaint Portal: Use this platform to file disputes and track resolutions.
• Templates: Access the Dispute Preparation Checklist and Complaint Submission Template for FMC for practical tools to streamline compliance.
• Support Channels: Reach out to FMC representatives or maritime legal advisors for tailored guidance.

Conclusion

The FMC Final Rule represents a critical step forward in ensuring fair access to vessel space for U.S. exporters of agriculture, food, and commodities. By understanding and utilizing the rule, exporters can minimize risks, secure reliable shipping, and maintain global competitiveness.

Take Action Today:

• Review your carrier practices.
• Leverage FMC tools to address unreasonable refusals.
• Ensure compliance through proactive strategies.

Visit FMC.gov for more information or to file a complaint. Let’s secure a fair and transparent future for U.S. exporters.