The Federal Maritime Commission’s New Framework for Ocean Carrier Accountability: Analysis of the <i>MCS Industries</i> and <i>OJ Commerce</i> Decisions

This article examines two 2024 Federal Maritime Commission (FMC or “Commission”) cases that significantly impact the interpretation of ocean carrier accountability under the Shipping Act of 1984: MCS Industries, Inc. v. COSCO Shipping Lines Co. Ltd. and OJ Commerce, LLC v. Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft A/S & Co. KG. This article argues that the FMC, whose mission is to “[e]nsure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices,” continues to make ongoing efforts to clarify and enforce protecting shippers’ rights. These efforts focus particularly on (i) service contract obligations, which require reciprocal commitments between shippers and carriers to ensure minimum cargo volumes and guaranteed space or rates; and (ii) prohibiting retaliatory conduct by carriers, including “refusing, or threatening to refuse, an otherwise-available cargo space accommodation” or “resort[ing] to any other unfair or unjustly discriminatory action.” By focusing on practical remedies, the FMC continues to develop its approach to enforcement, emphasizing practical remedies over formalistic legal distinctions.