Appeals Court Upholds FMC Authority Over Carrier Refusal-to-Deal and Export Policies

## Regulatory Victory for FMC in Shipping Policy Dispute A federal appeals court has upheld the Federal Maritime Commission's (FMC) interpretation and enforcement of provisions in the Ocean Shipping Reform Act of 2022 (OSRA-22) regarding carrier refusal-to-deal policies and export market practices, according to the Journal of Commerce. The World Shipping Council, a major industry trade group representing large ocean carriers, had contested the FMC's regulatory reach under a section of OSRA-22 that specifically addresses practices affecting U.S. exporters. The Council argued that the provision constituted an overreach by the maritime regulator, challenging the agency's authority to enforce rules governing how carriers interact with shippers and manage service offerings in export markets. ### What This Means for the Industry The court's decision affirms the FMC's expanded mandate under OSRA-22, which modernized ocean shipping regulation in response to industry consolidation and shipper concerns. The law granted the Commission broader oversight of carrier practices, particularly those that could disadvantage American exporters or limit their access to competitive shipping services. The refusal-to-deal provisions at issue are critical to preventing carriers from leveraging their market position to restrict competition or exclude shippers from services. For export-focused industries—including agriculture, industrial goods, and other commodities—such practices can significantly impact costs and supply chain competitiveness. ### Context: OSRA-22 and Maritime Regulation OSRA-22 represented the most significant update to U.S. ocean shipping law in nearly three decades, enacted to address market consolidation and shipper grievances about unfair carrier practices. The law expanded the FMC's investigative powers, strengthened enforcement tools, and created new transparency requirements for ocean carriers. The dispute with the World Shipping Council reflects ongoing tension between carriers and regulators over the scope of FMC authority. Carriers have consistently argued that OSRA-22 infringes on their commercial freedom, while the Commission and shipper advocates contend that strong enforcement is necessary to maintain competitive, fair markets. ### Broader Implications The appeals court's ruling strengthens the FMC's hand in enforcing other contested provisions of OSRA-22 and may encourage the agency to pursue additional enforcement actions against carrier practices deemed unfair to shippers. It also signals judicial acceptance of the Commission's interpretation of statutory authority—a significant precedent in maritime law. For shippers and exporters, the decision protects access to competitive ocean shipping services and prevents carriers from using contractual leverage to restrict market competition. Industry observers expect this ruling may be cited in future FMC enforcement cases and regulatory proceedings.