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Appeals court upholds FMC rules on carrier refusal-to-deal, export policies

# Appeals Court Upholds FMC Rules on Carrier Refusal-to-Deal, Export Policies

A US federal appeals court has rejected the World Shipping Council’s legal challenge to Federal Maritime Commission regulations governing carrier conduct on export shipments under the Ocean Shipping Reform Act of 2022 (OSRA-22). The ruling affirms the FMC’s authority to enforce provisions that restrict vessel operators’ ability to refuse service to certain shippers and set policies affecting US export competitiveness.

The World Shipping Council argued that the contested section of OSRA-22 represented regulatory overreach, contending that the FMC exceeded its statutory mandate in implementing rules that constrain carriers’ operational discretion. The appeals court decision validates the FMC’s interpretation of its regulatory scope under the legislation, which Congress designed to strengthen the agency’s oversight of international ocean common carriers and protect American exporters from discriminatory shipping practices.

The ruling has significant implications for the containerized export sector and shipper-carrier relationships in transatlantic and transpacific trades. By upholding these rules, the court reinforces the FMC’s enforcement mechanisms against carrier practices that could disadvantage US exporters seeking international markets. Industry observers will now focus on how aggressively the FMC pursues compliance monitoring and whether additional regulatory guidance emerges to clarify carrier obligations under OSRA-22’s export provisions.