INTERNATIONAL TRADE LAW
The FMC and Ocean Shipping: What Importers Should Know
The Federal Maritime Commission (FMC) is the federal agency that regulates U.S. ocean shipping — the carriers, intermediaries, and practices behind goods that arrive by sea. It’s a different agency from CBP: CBP clears your goods through customs, while the FMC oversees the ocean-transportation marketplace that gets them here. For importers, the FMC matters most in three areas: who’s licensed to handle your cargo, how service contracts work, and the demurrage and detention charges that can pile up at ports. This guide covers what the FMC does and why it’s relevant to importers.
What the FMC Regulates
The FMC administers the Shipping Act and oversees the ocean supply chain, including:
- Ocean common carriers (the vessel operators) and their conduct and agreements.
- Ocean transportation intermediaries (OTIs) — NVOCCs (non-vessel-operating common carriers) and ocean freight forwarders — which must be FMC-licensed and bonded.
- Service contracts and tariffs between shippers and carriers.
- Unfair or unreasonable practices by carriers and intermediaries.
For an importer, the practical takeaway is to confirm the intermediaries you use (your NVOCC or forwarder) are properly FMC-licensed and bonded — it’s a basic due-diligence check.
Demurrage and Detention — and OSRA 2022
The FMC issue that affects importers’ wallets most is demurrage and detention — the charges carriers and terminals bill when cargo or equipment sits too long (demurrage for cargo left at the terminal; detention for containers kept out too long). After pandemic-era disputes over billions in these fees, Congress passed the Ocean Shipping Reform Act of 2022 (OSRA 2022), which strengthened the FMC’s authority and directed it to address unreasonable D&D practices. The FMC followed with a demurrage and detention billing rule that sets requirements for what a valid invoice must contain and who can be billed, and importers can dispute charges and file complaints with the FMC. If you’re hit with large D&D bills, those rules are your leverage.
How the FMC Differs from CBP
It’s worth keeping the two agencies straight:
| FMC | CBP | |
|---|---|---|
| Regulates | Ocean carriers, intermediaries, shipping practices | Import entry, duties, admissibility |
| Concerns importers for | Carrier/NVOCC licensing, service contracts, demurrage/detention | Classification, valuation, duties, clearance |
| Key law | Shipping Act / OSRA 2022 | Tariff Act and customs laws |
You deal with the FMC’s world when arranging ocean transport and disputing shipping charges; you deal with CBP when clearing the goods.
Frequently Asked Questions
What does the Federal Maritime Commission regulate?
The FMC regulates U.S. ocean shipping under the Shipping Act — ocean common carriers, ocean transportation intermediaries (NVOCCs and freight forwarders, which must be licensed and bonded), service contracts and tariffs, and unfair or unreasonable practices, including demurrage and detention billing.
What is the difference between the FMC and CBP?
The FMC oversees the ocean-transportation marketplace (carriers, intermediaries, shipping practices, and demurrage/detention). CBP handles customs — entry, classification, valuation, duties, and admissibility of the goods. Importers deal with both: one for transport, one for clearance.
What is demurrage and detention?
Demurrage is charged when cargo sits at the terminal beyond free time; detention is charged when a shipper keeps a carrier’s container too long. OSRA 2022 and the FMC’s billing rule set requirements for these charges and let shippers dispute improper bills.
How does OSRA 2022 help importers?
The Ocean Shipping Reform Act of 2022 strengthened FMC oversight of carriers and directed it to curb unreasonable demurrage and detention practices. The resulting billing rule defines what a proper D&D invoice must include and gives importers grounds to dispute charges and file complaints.
Ocean-shipping rules are a recurring cost center for importers, and the FMC framework is your tool to push back. Reidel Law Firm advises importers on shipping, demurrage/detention, and customs compliance on flat-fee terms. Get an import compliance memo.
