The Federal Maritime Commission (FMC) upheld a ruling stating that the practice of major oceangoing carriers designating exclusive chassis providers for port-to-port moves violates federal law, as brought to light by the Intermodal Motor Carriers Conference (IMCC) against the Ocean Carrier Equipment Management Association (OCEMA). The IMCC argued that this practice infringed upon motor carriers’ rights and led to overcharging consumers. The FMC’s decision, supported by a 4-1 vote, emphasized the importance of allowing motor carriers the freedom to choose among chassis providers to promote economic efficiency. The ruling addresses practices in specific port areas and moves the issue back to the administrative law judge for further consideration. OCEMA argued that without these restrictions, there would be a risk of underutilization of chassis, but the FMC emphasized that financial impact is not relevant to the decision. IMCC hailed the FMC decision as confirmation of ocean carriers’ violation of federal law and a victory after years of fighting against this conduct.
Inspired by: https://www.freightwaves.com/news/fmc-upholds-ruling-upending-current-chassis-pool-system?oly_enc_id=2915B6577389I0W