FMC launches new unit for enforcement

After the passage of the new maritime reform bill OSRA personally promoted by Biden, the US Federal Maritime Commission (FMC), which is responsible for the implementation of the new bill, has a new move.

On Monday (August 1), the U.S. Federal Maritime Commission (FMC) created a new unit called the Bureau of Enforcement, Investigations and Compliance (BEIC) to target container liner companies and terminal operators.

FMC said in the announcement: The newly established Bureau of Investigation will be led by an attorney with regulatory, prosecution and investigation experience from the senior executive branch; Commission Managing Director Lucille M. Marvin will also serve as acting director until the appointment of a permanent director.

“Strong enforcement of shipping laws is absolutely critical to the effectiveness of the Federal Maritime Commission. This reorganization has the support of all five commissioners and creates a structure better suited to meet the priorities that the President and Congress have given the agency to perform. Specifically, it enhances the FMC's ability to closely review the actions of ocean carriers and marine terminal operators to ensure U.S. importers and exporters comply with the law and fairness," said Chairman Daniel B. Maffei.

The BEIC will be divided into three parts: the Office of Enforcement, the Office of Investigations, and the Office of Compliance. These offices will be led by the Chief of Staff. The BEIC Director will oversee and manage the activities of the three offices and will be supported by a Deputy Director who assists with project management; the BEIC Director will report to the Managing Director.

The reorganization follows an internal review to determine how to improve the effectiveness of the Commission's enforcement and compliance activities. The review determined that the reorganization and consolidation of enforcement and compliance programs will lead to more effective, coordinated and responsive action from the beginning of the investigation to the end.

As part of the restructuring, the committee is transforming the positions of district representatives into investigators, placing them in the Office of Investigations. In addition, the Commission will increase the number of investigators it has on staff. Investigators will now focus on enforcement activities, and public outreach functions previously handled by district representatives will be handled by the Commission's Office of Consumer Affairs and Dispute Resolution Services as part of its broader public assistance efforts.

"The new bill enhances the FMC's ability to closely review the actions of ocean carriers and marine terminal operators to ensure U.S. importers and exporters are lawful and fair," added Daniel B. Maffei.

There is a growing perception that shipping companies benefit from a unique combination of protections and an unusual lack of competition oversight.

The new shipping bill not only adds a "tightening spell" to shipping companies and terminals, but also adds a constraint to freight forwarding companies!

As one of the most important shipping routes in the world, the American line affects the nerves of freight forwarders, but there is no doubt that with the introduction and implementation of the new bill, it will expand the supervision and investigation powers of the US Federal Maritime Commission (FMC). It is also required that freight forwarders engaged in the US line or those who will soon be engaged in the US line should operate more compliantly and legally, obtain the qualification of FMC, and send AMS as required.

For freight forwarders that do not meet the requirements, once they are reported, they will be investigated by the Federal Maritime Commission (FMC), and the fines can be tens of thousands or even hundreds of thousands of dollars, and the amount of fines is not capped!