FMC Issues Final Rule On Carrier And Marine Terminal Practices For Receiving, Handling Cargo

J. Michael Cavanaugh and Eric Lee are partners, Daniel L Burkard is an associate in Holland & Knight's Washington, D.C. office

Co authored by Hwajeong Kim

HIGHLIGHTS:

• The Federal Maritime Commission (FMC) has adopted an interpretive rule that tightens certain prohibitions under the 1984 Shipping Act. Specifically, the change tightens the Section 10(d)(a) prohibition against regulated entities acting unjustly or unreasonably in connection with the receiving, handling, storing or delivering of property.
• Under the new rule, Section 10(d)(a) requires a showing that a regulated entity committed an unreasonable or unjust act on a normal, customary and continuous basis.
• The FMC recognizes the possibility that the rule may preclude certain claims that were previously brought under Section 10(d)(a) of the Shipping Act. However, it believes that other laws, such as the Carriage of Goods by Sea Act (COGSA), as well as other provisions or regulations of the