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Ocean Shipping Disputes

The Federal Maritime Commission (FMC) has jurisdiction over certain ocean freight-related disputes, including disputes involving violations of the Shipping Act found at 46 U.S.C. Chapter 411. The FMC offers several options to pursue dispute resolution. For example, complaints about charges assessed by a common carrier can be submitted via email to the FMC through its “charge complaint” process. In response, the FMC will decide at its discretion whether to take any action, which may result in assessing civil penalties or ordering a refund of charges paid. FMC also offers alternative dispute resolution (ADR) services, which can assist with mediating the parties’ dispute. This allows the parties greater involvement in fashioning the outcome by providing them with a mechanism to resolve the matter and avoiding the issuance of any legally binding decisions by the FMC. There are two options for a party seeking a legally binding decision from the FMC. First, FMC offers a small claims complaint process whereby the parties can submit their supporting documents to the FMC and, provided there is no objection, an FMC settlement officer can decide the matter based on the submitted materials. Second, a party may submit a formal complaint to be heard and decided by an administrative law judge. This latter process can be lengthy and is more akin to traditional litigation.

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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

Ocean Shipping Disputes

The Federal Maritime Commission (FMC) has jurisdiction over certain ocean freight-related disputes, including disputes involving violations of the Shipping Act found at 46 U.S.C. Chapter 411. The FMC offers several options to pursue dispute resolution. For example, complaints about charges assessed by a common carrier can be submitted via email to the FMC through its “charge complaint” process. In response, the FMC will decide at its discretion whether to take any action, which may result in assessing civil penalties or ordering a refund of charges paid. FMC also offers alternative dispute resolution (ADR) services, which can assist with mediating the parties’ dispute. This allows the parties greater involvement in fashioning the outcome by providing them with a mechanism to resolve the matter and avoiding the issuance of any legally binding decisions by the FMC. There are two options for a party seeking a legally binding decision from the FMC. First, FMC offers a small claims complaint process whereby the parties can submit their supporting documents to the FMC and, provided there is no objection, an FMC settlement officer can decide the matter based on the submitted materials. Second, a party may submit a formal complaint to be heard and decided by an administrative law judge. This latter process can be lengthy and is more akin to traditional litigation.

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.