FMC prohibits container carriers from cancelling shipments for business reasons

Chamber of Shipping > Blog > News > US > FMC prohibits container carriers from cancelling shipments for business reasons

The US Federal Maritime Commission (FMC) has moved forward with a prohibition against unreasonable refusals of cargo space accommodations when available and unreasonable refusals to deal or negotiate with respect to vessel space accommodations by ocean common carriers under the Ocean Shipping Reform Act (OSRA) of 2022. This regulation aims to improve space availability for US exporters, who have faced challenges in securing shipping space due to pandemic-related disruptions. Major container lines have opposed the rule arguing that it undermines their ability to manage operational risks and financial sustainability, emphasizing that business decisions are crucial for ensuring efficient and safe operations. Carriers must now file an annual export policy detailing pricing, services, and equipment. “Blank sailings” and schedule changes with insufficient notice may be deemed unreasonable refusals to handle exports. While the export policy rule awaits final approval, other rules will take effect 60 days after publication. The FMC’s decision reflects concerns over the US trade deficit and imbalances in import-export traffic.

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