Brussels, 30 December 2021
At the end of December 2021, the Ocean Network Express (“ONE”, a consortium of three large Japanese carriers) and the smaller Taiwanese independent Wan Hai Lines received Orders of Investigation from the Federal Maritime Commission (FMC). In each case, the complaint is laid out in the respective Order, with written responses required within 25 days.
These investigations would then lead to an actual hearing, within six months, presided over by an Administrative Law Judge (a Federally appointed Judge) handling FMC matters. The Judge has the power to impose monetary penalties on the “respondent” (the carriers, in this case), if a violation of the law (here, codified in the Shipping Act of 1984) has occurred.
The investigation into Wan Hai will look very closely into practices of carriers concerning the return of empty containers, and detention charges when the boxes are not turned back to the carriers. According to the FMC’s complaint, Wan Hai charged cargo interests for detention nearly two dozen times during the Spring of 2021, when the jammed-up terminals at southern California ports were unable to accept returns of containers.
Source: FMC