The Auto Care Association testified before the Federal Maritime Commission (FMC) on Jan. 16 to shed light on how incidents of poor port operations and severe congestion at container terminals in U.S. ports have affected its membership. Steve Hughes, president and CEO of HCS International and chairman of the Auto Care Association’s International Trade Committee, provided testimony on behalf of the membership in response to a petition filed by the Coalition for Fair Port Practices in December of 2016. The petition urged the FMC to ensure that demurrage and detention practices are fair and responsible when moving cargo through U.S. ports.
“Our members have been assessed unfair detention and demurrage penalties due to port congestion, many times due to circumstances that are out of their control,” said Bill Hanvey, president and CEO, Auto Care Association. “We strongly support a policy statement that would ensure that our members are able to conduct business according to the FMC’s mission to foster a fair, efficient and reliable international ocean transportation system.”
The Auto Care Association joined the Coalition for Fair Port Practices along with 25 other associations representing importers, exporters, manufacturers, transportation intermediaries and other business groups. The petition asked the FMC to develop a policy statement to clarify conduct that may constitute unreasonable practices with regard to the assessment of detention and demurrage by ocean carriers and marine terminals. The policy statement would provide guidance in situations where the cargo owner or transportation provider is not able to pick up or drop off a container due to issues beyond their control.
