NITL Lends Support for Move to Give FMC Oversight of Rail Storage Fees

The National Industrial Transportation League (NITL) is putting its weight behind the push to have rail storage fees fall under the oversight of the Federal Maritime Commission (FMC), insisting the charges be assessed as part of so-called “through” transportation under ocean bills of lading.

NITL joins the National Shippers Advisory Committee (NSAC), which last week called on the FMC to update its detention and demurrage rules, to assume regulatory oversight of rail storage fees. Currently, neither the FMC nor the Surface Transportation Board (STB) have authority over the charges, causing frustration among shippers.

“This proposal would ensure that rail storage charges assessed on intermodal shipments moving in international commerce are subject to FMC oversight and the [Ocean Shipping Reform Act of 2022] requirements,” NITL said in a statement Wednesday.

Rail storage has been at the forefront of recent regulatory discussion as the FMC solidifies its final rulemaking on detention and demurrage. Shippers want ocean carriers to be the billing party for such charges, meaning the fees would fall under FMC jurisdiction.

NITL’s support follows the May 11 NSAC meeting at which the group, which advises the FMC, recommended that the final detention and demurrage rule set to be published by the agency in mid-June include all per diem charges billed by ocean carriers, or on behalf of the carriers, for all terminal space, not just marine terminals.

Adding momentum to the recommendation, more than 70 shipping interests wrote a letter to the House Transportation and Infrastructure Committee May 2 asking that rail storage fees assessed against ocean containers moving on through bills of lading be overseen by the FMC.

By: Teri Errico Griffis / JOC