Peter Friedmann Gives DC Update at CBFANC State of the Port 2021

  In response, the FMC is asking the public to submit examples of abuses by carrier and terminals, which ultimately could lead to a major action by the FMC.  There are forms that can be filled out and sent to the FMC detailing the demurrage/detention abuse.  Unfortunately, the submitter’s identity will be part of the form, so it is suggested that the forms be sent to Peter Friedmann who will compile them and submit the details without identifying the complainant. This will help protect shippers/forwarders from retribution from the carriers.  Identifications will be sent only if the FMC guarantees that they will be held confidentially.
Ports are landlords beholden to the terminals who are tenants.  Ports fear that if they exert too much pressure on carriers or terminals they will move to other terminals or ports.  Also, there are no US flag carriers, none are based in the US, and access to foreign ownership is difficult.
Oakland is the most important US export port, but exporters are being hit by denied bookings and unreliable schedules.  The ILWU is also concerned about potential loss of business.  US exports are also denied service due to lack of equipment.  Further, rates are exceptionally high.  Exporters have powerful friends in DC, and we should be concerned that Congress may chose to get involved, which could make matters worse.  Steamship companies are exempt from US anti-trust laws which allows them to coordinate pricing and services with competitors, which allows them to coordinate pricing and services with their competitors.  This could be endangered if Congress intervenes.  Senators from the farm belt states and from port states are very powerful, and their actions could be extremely disruptive.  A solution is needed, but not one that will reduce available services across the board.
GSP will be renewed, but possibly not until next year. We can expect complications from added concerns about foreign labor practices, environmental and other issues that will complicate GSP renewal.
As for the impeachment of former Pres. Trump, both the Democrat or Republican leadership want a quick trial, and to get it behind them.  The trial is in the way of important initiatives of the new Biden Administration (i.e. immigration, climate change, et al).
CBFANC Newsletter - copy of February 2021 - Info Expeditor

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