The Federal Maritime Commission (FMC) has denied a request from ocean carriers to shorten the mandatory notice period for rate increases and surcharges.
Under the Shipping Act and FMC regulations, carriers are required to provide a 30-day notice before implementing any increases in rates or charges. While exceptions may be requested, the FMC determined that the criteria were not sufficiently met in this case.
Several major carriers had sought approval to reduce the notice period in response to rising operational costs and market uncertainty linked to geopolitical developments affecting key shipping routes, including the Strait of Hormuz.
The FMC emphasized that any request to shorten the notice period must be supported by clear and detailed justification. This includes demonstrating a direct link between increased operational costs and the proposed rate adjustments, as well as providing transparency on cost structures and mitigation efforts.
This decision reinforces the importance of maintaining a balanced allocation of risk between carriers and shippers, while promoting greater transparency in how surcharges and rate increases are determined. For the trade and logistics sector, it highlights the continued need for proactive planning and cost visibility amid ongoing global uncertainties.
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