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New FMC Regulation: Limiting Arbitrary Container Rolling and Protecting Shippers' Rights

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Posted by Realhong (Shanghai Head Office) International Logistics Co., Ltd On Aug 19 2024

There are often some unfair behaviors towards cargo owners in the international logistics industry, such as "rolling containers".

On July 22, the U.S. Federal Maritime Commission (FMC) announced a "new regulation" aimed at prohibiting shipping companies from disregarding contracts, unjustly rejecting bookings, arbitrarily rolling containers, and refusing to negotiate contract terms for space with customers.

The new regulation clearly defines what constitutes an "unreasonable refusal to deal or negotiate," including but not limited to ignoring signed contracts, unjustly rejecting shippers' booking requests, or rolling containers without adequate communication.

Logistics New Regulation:Limiting Arbitrary Container Rolling and Protecting Shippers' Rights

Logistics New Regulation:Limiting Arbitrary Container Rolling and Protecting Shippers' Rights

So, does this mean my containers won't be rolled in the future? Not necessarily.

The FMC also clarified that not all refusals by carriers constitute violations. If the shipping company can demonstrate a reasonable reason for refusing to negotiate or transport goods, their actions will not be considered illegal.

Therefore, as long as the carrier has a reasonable justification, the containers could still be rolled.

Although the risk of container rollover still exists, this "new regulation" has largely restricted the behavior of shipping companies in international logistics that arbitrarily roll over containers without reason. At least it has curbed such behavior and better protected the rights and interests of cargo owners.

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