Federal Maritime Commission (FMC)

The Federal Maritime Commission (FMC) is an independent U.S. government agency that regulates the international ocean transportation system serving the United States. It does not operate ships, manage ports, or handle cargo. Its role is oversight: ensuring that ocean carriers, marine terminal operators, and ocean transportation intermediaries (freight forwarders and customs brokers) operate fairly and in compliance with the Shipping Act.

What the FMC Regulates

The FMC’s jurisdiction covers ocean common carriers (shipping lines), marine terminal operators, ocean freight forwarders, and Non-Vessel Operating Common Carriers (NVOCCs). Any company that arranges international ocean freight to or from the United States falls under FMC authority. Domestic trucking, rail, and air freight are regulated by different agencies (FMCSA, STB, and FAA/DOT respectively).

The agency enforces the Shipping Act of 1984, as amended by the Ocean Shipping Reform Act of 1998 and the Ocean Shipping Reform Act of 2022 (OSRA 2022). These laws prohibit unfair or unjust practices by ocean carriers, require carriers to publish tariff rates, and establish rules for service contracts between shippers and carriers.

Licensing Requirements

The FMC licenses two categories of ocean transportation intermediaries. Ocean Transportation Intermediaries (OTIs) include freight forwarders and NVOCCs. An Ocean Freight Forwarder arranges ocean transportation on behalf of shippers but does not issue its own bills of lading. An NVOCC acts as a carrier to shippers (issuing its own house bills of lading) but does not own or operate vessels.

To obtain an FMC license, an OTI must demonstrate financial responsibility by obtaining a surety bond. NVOCCs must maintain a $75,000 bond. Ocean freight forwarders must maintain a $50,000 bond. These bonds protect shippers: if a licensed OTI fails to perform its obligations or goes bankrupt while holding a shipper’s cargo or payment, the bond provides a source of recovery.

Importers and exporters should verify that their freight forwarder or NVOCC holds a valid FMC license before engaging their services. The FMC maintains a searchable database of licensed OTIs on its website. Using an unlicensed operator puts the shipper at risk with no bond protection and no regulatory recourse if something goes wrong.

OSRA 2022 and Recent Changes

The Ocean Shipping Reform Act of 2022 was passed in response to the supply chain disruptions of 2020 and 2021, when ocean carriers imposed massive surcharges, refused bookings, and charged demurrage and detention fees on containers that shippers could not retrieve due to port congestion. OSRA 2022 expanded the FMC’s enforcement authority in several areas.

The law prohibits carriers from unreasonably refusing cargo space when available, requires carriers to provide a minimum service standard, and directs the FMC to establish rules on when demurrage and detention charges are appropriate. It also shifted the burden of proof in certain disputes: carriers must now prove that their demurrage and detention charges are reasonable, rather than requiring the shipper to prove they are unreasonable.

The FMC issued a final rule on billing practices for demurrage and detention in 2023, requiring that invoices clearly identify the charges, the container and bill of lading numbers, the free time period, the applicable rate, and the party responsible for payment. Invoices that do not meet these requirements can be challenged.

Filing Complaints with the FMC

Shippers who believe an ocean carrier or terminal operator has violated the Shipping Act can file a formal or informal complaint with the FMC. Formal complaints initiate an adjudicative proceeding before an administrative law judge. Informal complaints go through the FMC’s Office of Consumer Affairs and Dispute Resolution Services, which attempts to mediate a resolution.

The FMC can impose civil penalties of up to $68,171 per violation per day (adjusted annually for inflation). For patterns of illegal activity, penalties accumulate quickly. The agency has increased enforcement activity since OSRA 2022, initiating more investigations into carrier practices than in the previous decade.

For FBA sellers and small importers, the FMC’s relevance is primarily in choosing licensed freight forwarders and NVOCCs and in understanding their rights when carriers impose disputed charges. Knowing that the FMC exists and accepts complaints gives smaller shippers a recourse that many are not aware of.