The Justice Department (DOJ) and Federal Maritime Commission (FMC) reaffirmed efforts outlined in a 2021 Memorandum of Understanding (MOU) to promote competition in the ocean freight transportation system.
The White House announced the move, saying the agencies will begin a new joint initiative. Under the initiative, DOJ will provide attorneys and economists from the Antitrust Division to FMC to help enforce Shipping Act and related law violations.
“The Justice Department will continue to aggressively enforce our antitrust laws – no matter the industry, no matter the company, and no matter the individual,” Attorney General Merrick Garland said. “Competition in the maritime industry is integral to lowering prices, improving quality of service and strengthening supply chain resilience.”
The FMC will continue ramping up shipping industry oversight, the White House stated. Since last summer, the FMC has established a new audit program backed by an audit team to address complaints about carriers charging unfair fees, demanded justification from the carriers about their fees, launched 42 cases investigating port congestion charges and took steps to address barriers to filing complaints at the FMC and to prevent retaliation against complainants. FMC also launched a new data initiative to identify data constraints that are adding to supply chain congestion.
This month, the FMC sought comments on reforms to how carriers charge shippers fees.
“This new support will help ensure that the working relationship will help both government entities in our shared goal of fair competition,” FMC Chairman Daniel Maffei said.
The White House stated it is working with the Los Angeles and Long Beach ports to charge carriers for empty containers clogging their docks. Since the announcement, a separate announcement from the proposed carrier fee on container volume, the White House stated empty container volume at the Los Angeles port fell 25%.
