Refusing to load, abandoning containers? New regulations are issued! Strict crackdown on unreasonable behavior of shipping companies

According to the new rules, different legal provisions will apply to shipping companies' refusal at different stages. If the refusal occurs in the "negotiation" stage of the transaction, 46 U.S.C. § 41104(a)(10) will apply; if the refusal occurs in the "execution" stage after the negotiation stage, 46 U.S.C. § 41104(a)(3) will apply. Specific cases will be reviewed and adjudicated on a case-by-case basis based on the actual situation and facts.

It is worth noting that not all shipping companies' refusal will constitute a violation of the law. If a shipping company can prove that there is a reasonable basis for refusing to negotiate or carry goods, its behavior will not be considered illegal. However, shipping companies are required to submit a confidential export policy document to the FMC every year, including information such as pricing strategy, services provided, equipment supply strategy, and description of the markets served, so that the FMC can evaluate whether its behavior is reasonable.

This new rule is undoubtedly good news for cargo owners. During the epidemic, many cargo owners signed contracts, but shipping companies refused to allocate space according to the contract and put the space on the spot market in order to make a profit, causing huge losses to cargo owners. Now, the new FMC regulations will effectively curb such unreasonable behavior and protect the rights and interests of cargo owners.

However, for shipping companies, the implementation of the new regulations will increase their operating costs and compliance difficulties. In particular, requiring shipping companies to submit confidential export policy documents every year may expose their business secrets and market competition strategies. Hapag-Lloyd, the world's fifth largest container liner company, expressed concerns about this, believing that this may put companies at a clear competitive disadvantage. But the FMC rejected this view, insisting that the required export information will help it determine whether the behavior of ocean carriers is reasonable.

In general, the new regulations issued by the FMC are of great significance to maintaining fair competition in the shipping market and the rights and interests of cargo owners. It will effectively curb the unreasonable refusal of shipping companies and promote the healthy development of the shipping market. At the same time, shipping companies also need to strengthen their compliance awareness and ensure that their behavior complies with the requirements of the new regulations to avoid unnecessary legal risks and commercial losses.