Thread by @mercoglianos

First interview with new Federal Maritime Commission chairman

Nothing against Chairman Maffei, but I don't understand why we put pilots in charge of the FAA, but not a mariner in charge of the @FMC_gov

freightwaves.com/?p=329584 via @FreightWaves

MAFFEI: “We are in the midst of an unprecedented import boom, which is one of the ripple effects of COVID...The congestion that is occurring is unfortunately unavoidable with this kind of stress on the system."

So what are the solutions?

“We have seen hundreds and thousands of export containers that have been rejected for the last several months. This is not ideal. … We want to promote exports."

Yet, carriers are prioritizing empty containers over American exports.

“No one is, quote, ‘doing nothing wrong,’ but because of market forces, it is creating a situation that is a huge disadvantage to American exporters — particularly U.S. ag exporters."

There is more at play than just market forces to penalize American exporters.

"But what is happening in this current crisis is the Shipping Act of 1984 and the 1998 amendment were 20 years ago. No one imagined the size of the ships, the kinds of port products and infrastructure we have today — even trade relationships."

So, where is the new legislation?

“If there is a violation in the statute...we would need to show proof they are being unreasonable. That’s difficult to do under current law. I am not a legal expert, but that is a tough standard to reach."

If the head of FMC is not a legal expert, I bet he has some lawyers.

"I have not spoken with Secretary Buttigieg or the administration yet to indicate a direction for me to share with you."

Okay...not encouraging.

"The commission’s interpretive rule on detention and demurrage couldn’t be more clear about how we will determine whether practices are reasonable."

I thought it was difficult to do under current law?

The @FMC_gov mission:

Our mission is to ensure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices.