Red Sea Shipping Conditions

FMC Announces Hearing on Shipping Conditions in the Red Sea  (From the FMC)

The Federal Maritime Commission will hold an informal public hearing on February 7, 2024, to examine how conditions in the Red Sea and Gulf of Aden regions are impacting commercial shipping and global supply chains.

The hearing will allow stakeholders in the supply chain to communicate with the Commission how operations have been disrupted by attacks on commercial shipping emanating from Yemen, steps taken in response to these events, and the resulting effects.  In addition, the hearing will allow the Commission to gather information and identify any new issues related to these disruptions subject to Commission statutes, such as implementing contingency fees and surcharges.

Interested parties can request to be considered as a participant or share information and comments by a written submission to the Commission at until January 31, 2024. Panels and participants will be announced at a later date and are intended to include representatives of vessel-operating common carriers and shippers. Participants must present in person; there will be no virtual option for presenters.

The hearing is scheduled for Wednesday, February 7, 2024, and will be held in the Surface Transportation Board Hearing Room located at 395 E Street, SW, Washington, D.C. 20423.  It will be livestreamed for those unable to attend in person. Hearing logistics will be provided in a future announcement.

Ed. Note:  While we recently reported that ocean rates should remain depressed, these unprecedented attacks on shipping by Houthi rebels from Yemen are causing carriers to reroute vessels around Cape Horn rather than thru the Suez Canal/Red Sea at considerable extra expense.  Several have already instituted rate increases to cover the additional expense, some of which may be in violation of FMC tariff rules that require 30 days notice, which is the main thrust of this meeting.  If you have a situation or concern that you would like to bring to the attention of the FMC, please contact us, and we will relay your concerns to NCBFAA, who will present them for you at this meeting.