FMC takes action to ensure carriers cannot unreasonably turn down business
Emboldened with greater powers since the introduction of the Ocean Shipping Reform Act last year the Federal Maritime Commission (FMC) in Washington DC has unveiled proposed changes in rule making for carriers attempting to turn away cargoes.
During the covid pandemic, carriers were strongly criticised by shippers for their decision to turn away certain business in favour of higher paying shipments, something the FMC has sought to address over the past year.
The proposed changes announced yesterday add language to the rules to establish the elements for a refusal of cargo space accommodations claim. They also revise the definition of transportation factors to focus on vessel operation considerations as well as revise the definition of the term ‘unreasonable’ to include a general definition and a non-exhaustive list of unreasonable conduct scenarios.
So this seems to contradict US Law where business owners have the right to refuse service to customers for legitimate reasons.
As long as businesses can offer legitimate reasons for refusing service, and they’re applied equally to everyone, then they can refuse to offer a service.
You can’t do this if you are discriminating against someone on the basis of race, colour, religion, sex et etc.
But I feel that refusing service because customers have been unreasonable in suing you for millions of dollars is a pretty fair reason.
I’m not a fan of the FMC or US politicians who don’t seem to understand international trade.
Comments anyone?