b'10American Journal ofTransportation ajot.com(APPLAUDcontinued from page 6) and made a container available for pickupnot required to pay the charge. (FUTUREcontinued from page 8)International and AAEI Board of Gover- at the port but a trucker working for theThe30daytimelineoninvoic- in operation (512 owned) and another 111 nors member, calls this a big win, sayingreceiverdelayspickinguporreturninging is huge, says Iacopella from AAEI.vessels on order, amounting to over 1.3 the ruling helps intermediaries and truck- a container on time or even damages it?During the pandemic and the congestionmillion TEU. ers significantly. In the past, the carriersUnderthenewrules,theoceancarrierin 2020-2022 we were getting detentionGiventheorderbook,MSCshould havetriedtomaketheconnectionthatwould bill the NVOCC, despite the long- bills very latewe received bills one tosoon be operating a fleet of around 900 intermediaries were commercial parties,standing Uniform Intermodal Interchangetwo years later. vessels and with close to 7 million TEU he explains. Many times, ocean carriersAgreement(UIIA)betweentheoceanCoutaadds,Therequirementforin capacity. With that much tonnage MSC would bill parties on the Bill of Lading,carriers and the truckers governing billingclear and specific invoicing and definedcan be an alliance of one with a plethora suchascustomsbrokers,thatwerenotandliabilitiesfortheirequipment. This30-day time periods for issuing, disput- of other opportunities. part of the contractual agreement. will now mean an NVOCC will have toing, and resolving charges should speedLike any ocean carrier MSCs rev-The new ruling removes the unneces- reevaluate its contract with truckers andthe process and make it more efficient.enue goal is to take some of the valleys sary, pervasive ambiguity and confusionend consignees. It should help reduce confusion and dis- out of the roller coaster ride that is inher-that exists when parties who are not privySo even though this part of the rulingputes between carriers and shippers. ent to the ocean carrier industry. Freight to the D&D terms negotiated by the con- has wide support, unanswered questionsrates rise and fall with alarming regularity tracting parties are bound by those terms,remain. g oingf Are nough ? to the dismay of shipowners. One hedge is according to Westman from MICA.While most experts that spoke withchartering in tonnage. For instance, MSC Thiswillgreatlyeliminatedupli- i mPosingT rAnsPArency AJOT about the ruling applaud the FMCshas chartered 295 vessels of 2.9 million cateinvoicesbeingissuedtomultipleThe FMC final ruling also requires aguidance on these matters, several ques- TEU, the largest amount an ocean carrier companiesforthesamecharges,addsrange of information to be included on D&Dtions about D&D still need to be clarified. like CMA CGM at number two has 378 Capt. Allan Couto, VP of Transportationinvoices, including the start and end datesWestman says important issues likeships of 1.8 million TEU and Maersk 349 fortheNYNJFF&BA(NewYorkNewof free time; dates D&D was incurred; dailygovernment holds and earliest return dateat nearly 1.7 million TEU with COSCO JerseyFreightForwarders&BrokersD&D rates; and much more.including changes to that datestillat 305 containerships at 1.3 million TEU. Association) and President of AZTECKForyears,obtainingtimelyandremain. Iacopella and Couto ask whetherThe advantage of charters is it is a way GLOBAL LLC. accurate data on detention and demurrageD&D at inland railyards and interior portsto control costs and affords flexibility in However,Iacopellacounters,Onechargesfromsteamshiplinecarriershaswill be subject to the requirements. trimming sails when business runs afoul. issue I think may not be resolved with thisbeen a challenge, says Castro of JF Moran. Did the ruling go far enough? I amBut there is another tool that contain-ruling is the definition of the contractedThe inclusion of these and other keysure people will say it did not, but I thinkership carriers like to use and that is Vessel party. Are people going to start debatingpieces of information helps to reduce con- the positives of the ruling outweigh theSharingAgreementsorVSAs.VSAs who is a party to the agreement? fusion, improves processing, and mitigatesnegatives, Iacopella clarifies. are agreements between carriers that are Forexample,Couto,questionsthefrustration, Ed Berkhouse, VP Data Man- The ruling takes effect on May 28,narrow in scope and typically are easier legal implications for an ocean carriersagement Services at Descartes asserts.2024,exceptforthesectionregard- to create or dissolve than an ocean carrier terms and conditions, which makes mer- However, he adds, Some may view theing invoice information, which must bealliance. Since they usually are narrow in chants, who are broadly defined and notprovision that eliminates any obligation forapproved by the U.S. Office of Manage- their scope, VSAs also attract less regula-limitedtothecontractparty,jointandthe billed party to pay applicable Detentionment and Budget. The impact of the finaltory attention than an outright alliance. So, severally liable for freight payment andand Demurrage charges when the VOCC orruleonthemaritimesupplychainwillif MSC is inclined to target a specific route performance obligations.MTO fails to include the required informa- remainunclearuntiltherulebecomesbut wants to spread the trade lane risk, a MurrayofNAWEagreestheruletion as excessive, preferring that they shouldeffective and maritime stakeholders beginVSA is an attractive option. And if you are containsseveralambiguities.Numerousbe given an opportunity to correct invoicesoperating in accordance with its require- as big as MSC, there will be no shortage of questions remain for MTOs that collectwithin a specified period. ments, Murray of NAWE observes. partners that would be interested. demurrageonbehalfofoceancarriers,Coutoconcludes,AlthoughtheSo,whiletherestructuringofthe which has the potential to add significant30 D AyD eADline ruling provides guidance on billing prac- alliancesin2025willcreatenewcom-complicationstowell-establishedcom- ShippersalsoappreciatetheFMCtices, the root causes of demurrage andpetition with the independence of MSC, mercialpracticesandcouldnegativelyrequirement that VOCCs and MTOs mustdetention issues, such as port congestion,ultimately it is much the same gameplan. impact cargo fluidity, he points out. send D&D invoices within 30 days. Theand chassis or inefficient cargo handling,For the moment, the future of ocean car-In addition, Couto asks, What hap- ruling specifies that if a carrier or MTOstill remain to be addressed by all partiesrier alliances in 2025 looks much like it pens when an NVOCC has finished its jobmisses the 30 day deadline, the shipper isin the supply chain. did in the past. READY,INNOVATIVE &RESOLUTION FOCUSED40 Reliable access between U.S. Markets and the Pacic RimOptimal supply chain readinessSuperior, Actionable, Operational Data Visibility45Recognized industry leadershipInnovative Port Optimizer supply chain solution 50Leader in Environmental Stewardship53 ft channel and berth depthEFFICIENCY FROM TOP TO BOTTOM.portoosangeles.org @PortofLA'