ACD Press Release

ACD Urges FMC to Hold Ocean Carriers Accountable for Unwarranted, Excessive Surcharges Levied on U.S. Shippers  

Arlington, VA –Today, the Alliance for Chemical Distribution (ACD) sent a letter to the Federal Maritime Commission (Commission) to highlight the hefty surcharges ocean carriers have proposed to levy on shippers leading up to and during the recently resolved International Longshoremen’s Association (ILA) strike at East and Gulf Coast ports.

In the letter, ACD President and CEO Eric R. Byer underscored the impact of these excessive surcharges and called on the Commission to investigate the reasonableness of the proposed charges and to confirm whether they are being rescinded now that the strike has ended.

“ACD members have received several surcharges related to the labor disruptions that are set to go into effect in the coming weeks, even after the strike has ended. This is unreasonable, and the FMC must step in and ensure ocean carriers are held accountable when levying these unwarranted charges that will increase carrier revenue and profits at the expense of shippers.”

Byer also urged the Commission to use the authority provided under the Ocean Shipping Reform Act of 2022 (OSRA) to ensure similar surcharges do not occur in the future, especially since the labor agreement is only extended until January 15, 2025.

“ACD strongly believes that the FMC should exercise this authority in this situation to ensure ocean carrier practices during a labor strike, and assessment of additional charges in particular, are reasonable,” said Byer. “By taking steps now to investigate these carrier practices, the Commission can clarify this issue before another labor dispute occurs. Specifically, the Commission must carefully investigate whether surcharges related to the East and Gulf Coast port strike have been rescinded, and if not, whether existing surcharges are unreasonable and therefore invalid.”

Byer concluded, “We encourage the Commission to continue wisely using its authority granted by OSRA to ensure the ocean carriers do not engage in unreasonable practices contrary to FMC precedent that are harmful to American shippers.”

Last week, ACD sent a letter to the Commission regarding these surcharges costing as much as $3,000 per container, citing labor disruptions or related impacts as the cause.

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The Alliance for Chemical Distribution (ACD) partners with our more than 400 chemical distribution industry members to provide the education, connection, standards, and advocacy they need to responsibly move the essential products our world depends on. As leaders in the $27B+ chemical distribution industry, ACD member companies commit to the highest standards in quality, safety, sustainability, and performance through ACD Responsible Distribution^TM. For more information, visit www.acd-chem.com.