Regulators eye shipping surcharges: FMC plans to investigate unreasonable charges by shipping companies
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As tensions in the Persian Gulf continue and global shipping costs fluctuate dramatically, the U.S. Federal Maritime Commission (FMC) recently stated that it is paying close attention to the issue of route surcharges related to the Strait of Hormuz and does not rule out launching formal investigation procedures. This move is seen as a strong response from regulators to the liner companies’ charging practices.
Previously, the Trump administration sent tough signals to Iran and even threatened to block the Strait of Hormuz, triggering high market concerns about shipping safety. Many leading liner companies immediately announced increases in various surcharges on Middle East routes. In a statement issued over the weekend, the FMC noted that it was "closely monitoring" the impact of the conflict in the Persian Gulf on the shipping market, particularly the way carrier surcharges are collected. If relevant behavior is found to violate the Shipping Law, an "active investigation" will be launched, and the violating company may face fines or compensation requirements. The FMC also calls on shippers to provide timely feedback to the agency if they have questions about surcharge compliance.
This stance received widespread support from shippers and freight forwarders. Recently, the industry has been questioning the so-called "war risk surcharge". Some freight forwarders bluntly said that the current market conditions are like the "Wild West", with carrier charges lacking constraints and surcharges not bringing additional protection, and more like "testing the regulatory bottom line." Since the beginning of March, many shipping companies such as CMA CGM, Hapag-Lloyd, Maersk, Mediterranean Shipping Company, and ONE have added various surcharges to the Middle East and Gulf routes. Cost standards vary greatly: each TEU ranges from about US,200 to US,000, 40-foot containers generally cost more than US,000, and reefer containers cost even as high as US,000. Many freight forwarders pointed out that when the surcharge exceeds the basic freight, its nature is no longer cost compensation, but more like pricing behavior under market games. Industry insiders called on regulators to intervene as soon as possible.
It is worth noting that the FMC’s statement is also regarded as an important signal for strengthening its regulatory status. Previously, Mediterranean Shipping Company was fined US million due to demurrage and detention charges during the epidemic. Since current FMC Chairman Laura DiBella took office, her attitude and intensity in implementing the Shipping Law have attracted much attention from the outside world.
At the same time, geopolitical risks continue to ferment. The U.S. Central Command has confirmed that it will implement new control measures in relevant sea areas, focusing on ships entering and leaving Iranian ports. Although the statement stated that sailings to non-Iranian ports would not be affected, the specific implementation method was unclear. Industry analysts believe that once the blockade measures are implemented, it will not only further push up shipping costs, but may also trigger wider supply chain fluctuations. Lars Janssen, CEO of Vespucci Maritime, pointed out that if the United States intercepts ships from all countries, the conflict may escalate from the regional level to the global geopolitical level, which will have a profound impact on the shipping market.
Under the superposition of multiple uncertainties, the issue of shipping surcharges is evolving from market behavior to a regulatory focus. As the FMC may launch an investigation, liner companies may face tighter constraints on fee setting in the future.
