FMC Complaints Process — Options for Shippers

The following options may be useful to consider should you encounter a charge or shipping dispute with an ocean carrier. Should you have questions about the options below, please feel free to reach out to Tony Rice (trice@usdec.org) for more information or for help connecting with a staff member of the Federal Maritime Commission to discuss your situation further.

Formal Complaints

The highest level of FMC complaint

This is the highest level of complaint that the FMC oversees, and it resembles litigation in a civil court. Complaints filed under this system must be sworn and verified and must cite specific violations of the Shipping Act. Often, complainants will utilize legal counsel in their filings under the Formal Complaint system, and this process can utilize discovery and a duty to disclose from both complainant and defendant.

$450

Filing fee

3 years

Deadline to file for financial reparations

ALJ & Commission

Heard by an Administrative Law Judge, reviewed by the full Commission

The entity the complaint is filed against (presumably the ocean carrier) is informed of the complaint and has 25 days from service of the complaint to file a response. Counter claims are permitted to be filed.

File a Formal Complaint

Instructions for filing a complaint can be found here and are included in the appendix below.

Small Claims Complaints

For reparations sought under $50,000

Similar to the Formal Complaints process, the Small Claims Complaint process also requires a claim alleging a violation of the Shipping Act, but in instances when the reparation sought by the complainant is less than $50,000. These claims are processed more expeditiously by the FMC, overseen by a Small Claims Officer appointed by the FMC's Chief Administrative Law Judge, without the necessity of formal proceedings.

$176

Filing fee — complaint must be notarized

3 years

Deadline to file from the violation

Final

Small Claims Officer's determination is not subject to appeal

More information on filing a small claims complaint
Simplified small claims filing format (PDF) — also outlined in the appendix below

Charge Complaints

Typically used for detention & demurrage disputes

Under the Charge Complaint process, the FMC investigates information concerning charges assessed by a common carrier and may order refunds and/or penalties for charges that are non-compliant. Typically, claims filed under this process are related to detention and demurrage charges, but claims may be filed regarding any charges a carrier may assess — excluding charges that predate June 2022, charges assessed by port terminals not controlled by carriers, or charges that have not yet been invoiced.

This is a simpler process than a Formal or Small Claims complaint. A complaint may be filed by a shipper, consignee, trucker, or third party who paid such charges or who has been invoiced or assessed for such charges.

No fee

Filed by email, investigated by FMC staff

Carrier

Burden of proof shifts to the carrier to substantiate charges

BEIC

Non-compliant charges are referred to the Bureau of Enforcement, Investigations and Compliance

A complainant is permitted to pursue claims through other processes if the initial Charge Complaint findings are not found to be noncompliant.

See the full submission checklist and step-by-step process in the appendix below, or read the FMC's guidance on the Charge Complaint interim procedure.

Dispute Resolution

CADRS — voluntary, mediation-oriented

The least formal of the FMC's complaint processes is through the Consumer Affairs and Dispute Resolution Service (CADRS). This is a voluntary, mediation-oriented process in which CADRS staff liaise between the shippers/complainant and the carrier (or other parties, including terminals and freight forwarders) to explore whether the parties can reach a compromise and avoid the time and cost of litigation. The nature of these complaints also allows FMC staff to consider matters outside the scope of the Shipping Act.

This process can address charges, as well as cargo location issues, liens, communication failures, equipment (container, chassis) availability, among other shipping matters. It does not offer any investigatory or enforcement authority, and resolutions cannot be compelled on a party. If a resolution can't be reached, the other complaint options above remain available.

No fee

Voluntary — no cost to request

Mediation

No investigatory or enforcement authority

Rapid Response

Urgent matters: rolled cargo, cancelled bookings, equipment unavailability

Requests submitted by email to complaints@fmc.gov, including a completed Dispute Resolution Services Request — Cargo form (PDF)
Rapid Response Team requests (also to complaints@fmc.gov) should identify the problem, shipment status, and supporting documentation — e.g. house and master bills of lading, invoices, booking confirmations

Appendix A

Instructions for Drafting a Shipping Act Complaint

A formal complaint must include the following information. Examples of complaints can be found by browsing the FMC's Docket Logs.

Case caption

Present the Complainant's and Respondent's names in the following format: Complainant v. Respondent.

Section 1 — The complaint

State the exact and complete name, without abbreviation, of each person, partnership, or corporation filing the complaint. State whether complainant is an association, corporation, firm, or partnership, and the names of the individuals composing it. For each complainant, state the nature and principal place of business, street address, and email address.

Section 2 — The respondent

State the exact and complete name, without abbreviation, of each person, partnership, or corporation you claim violated the Shipping Act. State whether the respondent(s) is an association, corporation, firm, or partnership, and the names of the individuals composing it for each respondent, plus the nature and principal place of business, street address, and email address.

Section 3 — Jurisdiction & legal authority

State the legal authority and jurisdiction for the proceeding, specifically designating the statutory provisions alleged to have been violated, with reference to the Shipping Act of 1984 (46 U.S.C. §§ 40101–41309) and specifically 46 U.S.C. Chapter 411.

Section 4 — The matter complained of

State, in this and/or sequential lettered paragraphs ("A," "B," etc.), the matter(s) about which you are complaining — a clear and concise factual statement sufficient to inform each Respondent, with reasonable definiteness, of the acts or practices alleged to be in violation. If rates are involved, name each rate, fare, charge, classification, regulation, or practice being challenged.

Section 5 — Causation

State the causal connection between the alleged illegal acts of respondent(s) and the claimed injury to complainant(s), with reference to all necessary statutory sections relied upon, including violations of the Shipping Act, 46 U.S.C. Chapter 411.

Section 6 — Damages

State the injury to the complainant — usually, but not always, expressed as a dollar amount of alleged damages. Reparations for damages may only be sought if the complaint is filed within 3 years of the violation.

Section 7 — Request for relief

State the request that the Commission require respondent(s) to answer the charges and award the relief requested, or use the standard language below: "Complainant requests that respondent be required to answer the charges made in this complaint; that, after a hearing, the Commission order respondent(s): to cease and desist from violation of the Shipping Act; to put in place lawful and reasonable practices; to pay complainant reparations for the unlawful conduct in the sum of $____, with interest and attorney's fees and any other sum the Commission determines to be proper; and that the Commission make any further orders as it determines to be proper."

Section 8 — Request for oral hearing

Indicate whether the complainant(s) is or is not seeking an oral hearing and, if so, the complainant's preferred hearing location.

Names, signatures & contact info

The complainant must provide their name, address, telephone number, and email address, and sign the complaint. An attorney or representative of the complainant must provide the same and sign the complaint. Consult the Commission's rules for practice and appearance, 46 C.F.R. 502, Subpart B.

Verification

The complaint must be signed before a notary public, commissioner, or other person authorized to take affidavits, in accordance with 46 C.F.R. 502.6.

Notice of Appearance

The complainant must inform the Commission of the name, address, and contact information for the person(s) who will represent them in the proceeding — this applies to attorneys and self-represented parties alike. Submit as a separate filing, in accordance with 46 C.F.R. 502.23.

Appendix B

Small Claim Form for Informal Adjudication

An outline of the Small Claims complaint format. Use this alongside the FMC's official fillable PDF form — attach a memorandum or brief in support of the claim, along with the bill of lading and copies of correspondence or other supporting documents.

Federal Maritime Commission, Washington, DC

Informal Docket No. ______

(Claimant)

vs.

(Respondent)

The claimant is [state whether claimant is an association, corporation, firm or partnership, and if a firm or partnership, the names of the individuals composing it. State the nature and principal place of business.]

II.

The respondent named above is [state whether respondent is an association, corporation, firm or partnership, and if a firm or partnership, the names of the individuals composing it. State the nature and principal place of business.]

III.

That [state, in this and subsequent lettered paragraphs, the matters that gave rise to the claim. Name specifically each rate, charge, classification, regulation, or practice challenged. Refer to tariffs, tariff items or rules, or agreement numbers if known.]

IV.

If claim is for overcharges: state commodity, weight and cube, origin, destination, bill of lading description/number/date, rate and/or charges assessed, date of delivery, date of payment, by whom paid, and the rate or charge claimed to be correct plus amount claimed as overcharges.

State the section of the statute claimed to have been violated. (Not required if the claim is for overcharges.)

VI.

State how claimant was injured and the amount of damages requested.

VII.

The undersigned authorizes the Settlement Officer to determine the above-stated claim pursuant to the informal procedure outlined in Subpart S (46 CFR 502.301–502.305) of the Commission's informal procedure for adjudication of small claims subject to discretionary Commission review.

Attach memorandum or brief in support of claim, plus bill of lading, correspondence, or other supporting documents.

Date:
Claimant's signature:
Claimant's address:
Signature of agent or attorney:
Agent's or attorney's address:

Verification — the claim must be sworn before a notary: the claimant (or, for a firm, association, or corporation, an authorized affiant) attests that the foregoing has been read and the facts stated are true to the best of their knowledge and belief.

Appendix C

Charge Complaint Instructions

Charge Complaints can be submitted by email to chargecomplaints@fmc.gov. A submission should include:

Identification of the common carrier.
A description or statement of how the charge or fee violated 46 U.S.C. §§ 41104(a) or 41102.
Supporting documentation — invoices, bills of lading, proof of payment for the charges or fees demanded. Screen captures of denied booking appointments for return of equipment, gate closures, or relevant emails can also be provided.

What does the Charge Complaint procedure look like?

Gather the required information

Collect carrier identification, a description of how the charge violated 46 U.S.C. §§ 41104(a) or 41102, and supporting documentation (invoices, bills of lading, proof of payment, screen captures, or relevant emails).

Submit by email

Send the Charge Complaint and supporting information to chargecomplaints@fmc.gov.

FMC acknowledges & investigates

Commission staff acknowledge the submission and, once they have sufficient information, promptly investigate. You may be contacted for clarification or missing information.

Carrier is asked to respond

The common carrier is contacted by Commission staff and asked to respond to and justify the charge or fee being investigated.

Both parties are notified

Upon completion of the investigation, Commission staff notify both parties. If the charge is found non-compliant, the parties are informed the matter will be referred to the Office of Enforcement.

Referral for violations

Where the investigation supports a violation, the Office of Enforcement recommends the Commission issue an Order to Show Cause under 46 C.F.R. § 502.91 to formally adjudicate the complaint. Investigations that don't support a violation are closed and the parties notified.

Order to Show Cause

Upon approval, the Commission issues an Order to Show Cause naming the specific common carrier and the actions alleged to violate 46 U.S.C. §§ 41104(a) and/or 41102, directing the carrier to show cause why it should not refund the fees or charges paid, or waive them.

Refund & possible penalty

If the Commission orders a refund, a separate penalty proceeding may be initiated and referred to the Commission's Administrative Law Judge for consideration of penalties under 46 U.S.C. §§ 41107 and 41109.