The National Association of Waterfront Employers (NAWE) today applauded a significant legal victory from the United States Court of Appeals for the District of Columbia Circuit, which vacated the Federal Maritime Commission’s (FMC) order on the application of demurrage and detention fees. This decision reinforces the importance of thorough, fact-sensitive analysis in regulatory decisions impacting the maritime industry.
This ruling affirms the arguments around supply chain fluidity presented by Evergreen and supported by NAWE’s amicus brief in June of 2023. The court’s decision underscores the need for the FMC to adopt a more nuanced and fact-based approach when evaluating the reasonableness of detention and demurrage charges under the Shipping Act. The ruling also highlighted the joint amicus brief from NAWE and the World Shipping Council, demonstrating the Court’s recognition of the industry’s expertise and insights. You can find the jointly filed Amicus Brief here.
“The court’s decision, which mandates the FMC to conduct more comprehensive analyses in its regulatory actions, is a significant development for the members of NAWE. Consistent with the Shipping Act and the FMC’s Incentive Principle, this ruling underscores the crucial role of terminal demurrage charges during weekends and holidays in maintaining supply chain fluidity. This type of court decision also highlights the pressing need for the FMC to establish an advisory committee for ports and marine terminal operators. This advisory committee will ensure that the FMC is well-versed in efficient port/terminal operational practices throughout their regulatory process,” said Jeff Vogel, General Counsel to NAWE.
NAWE will be following the FMC’s further review of the remanded case. This decision marks a pivotal moment for the waterfront industry, ensuring that regulatory practices align with the realities and complexities of maritime operations.
You can access the Court’s full opinion here.
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About NAWE
The National Association of Waterfront Employers is a Washington based trade association whose member companies are privately owned stevedores, marine terminal operators, and other waterfront related employers. Member companies do business at major U.S Ports on the Atlantic and Pacific coasts, the Gulf of Mexico, the Great Lakes, Canada, and the Commonwealth of Puerto Rico. These firms are committed to keeping America’s international trade and commerce flowing to better serve our economy. Learn more at https://nawe.us/.