You may recall, back in 2020, the Intermodal Carrier Conference (IMCC) of the American Trucking Associations (ATA) brought a complaint to the Federal Maritime Commission (FMC) against the ocean carriers asserting the ocean carriers were in violation of the Shipping Act for mandating the brand of chassis motor carriers could use on merchant haulage moves.

The IMCC claimed $1.8B in damages due to the ocean carriers leveraging of their combined carrier and merchant haulage volumes in order to obtain better pricing from the chassis providers. Meanwhile, the motor carriers were forced to use the ocean carrier’s selected chassis provider at a much higher rate.

The FMC’s Chief Administrative Law Judge, Erin Wirth, gave the IMCC a resounding win and agreed the ocean carriers were in violation of the Shipping Act. In the ruling Judge Wirth states, “Where an exclusive arrangement has been contractually created by the ocean carrier, and where this prevents a motor carrier from using a chassis at at lower rate from an alternative chassis provider of its choice, the motor carrier is financially harmed and the market for chassis is restrained.”

The ocean carriers will appeal the ruling so stay tuned.

Latest News

HIGH COURT, HIGH PROFILE DECISIONS

The Supreme Court of the United States (SCOTUS) recently ruled on two high profile trucking cases. The first was Montgomery v. Caribe Transport II, LLC involving a 2017 truck accident in which a truck operated by Caribe Transport struck Mr. Montgomery's tractor...

PAY DAY FOR PORTS

Our ports are gaining long sought-after and much needed influence and attention at the national level. The US Department of Transportation's Maritime Administration (MARAD) recently awarded $774 million in port infrastructure grants. There is an additional $488.6...

NUCLEAR OPTION

Speaking of the Maritime Administration (MARAD), they initiated a Request for Information (RFI) soliciting input from industry stakeholders, ship builders and operators and technology companies to determine how small modular nuclear reactors (SMRs) can be integrated...

BARK TURNS TO BITE

Last month, the US Senate confirmed Robert Harvey as the newest Federal Maritime Commission (FMC) commissioner. Mr. Harvey fills the fifth and final seat on the FMC. The FMC is gaining prominence and proving they do not mind following up a bark with a bite. They...

CAPITOL TAKES ON CRIME

At long last, the federal government is taking cargo crimes seriously. The Combating Organized Retail Crime Act (CORCA) passed the US House last month. CORCA focuses on investigating and prosecuting organized cargo theft rings. The Building Unrivaled Infrastructure...

Share This