ACD Press Release

ACD Statement on Federal Court Ruling Against World Shipping Council Challenge to FMC Rule

Ruling supports American shippers, ensures FMC enforcement of unfair ocean carrier practices can continue

Arlington, VA – Today, the District of Columbia (D.C.) Circuit Court ruled against the World Shipping Council’s challenge to the Federal Maritime Commission’s (FMC) 2024 final rule on the definition of unreasonable refusal to deal or negotiate with respect to vessel space accommodations provided by an ocean common carrier.

The Ocean Shipping Reform Act of 2022 directed FMC to define “unreasonable refusal.” In response, the FMC issued a final rule in July 2024 that provides a case-by-case framework with non-binding factors and examples for evaluating reasonableness. Following the court’s decision, Alliance for Chemical Distribution (ACD) President and CEO Eric R. Byer released the following statement applauding the ruling:

“During times of shipping crises, widespread refusals have restricted ACD members’ ability to secure vessel space, putting into jeopardy the ability of the chemical distribution industry to effectively deliver the products essential to Americans’ everyday lives. The enactment of the Ocean Shipping Reform Act was a step in the right direction to address some of these anticompetitive and unfair practices, and the FMC’s several rulemakings put in place meaningful enforcement measures, which are clearly working. ACD applauds the D.C. Circuit Court for rejecting this challenge to the FMC’s rulemaking authority. This decision sides with American shippers and ensures the FMC can continue its enforcement, helping secure the continued competitiveness and success of the U.S. supply chain.”

ACD previously submitted comments to the FMC in support of the rulemaking’s expanded scope, which included a definition of unreasonable refusals of cargo.

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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.