Source: Freightwaves; Journal of Commerce
Date: 25th March 2026 

Regulator upholds 30-day rule, calling for greater transparency on surcharge justification.

The Federal Maritime Commission (FMC) has rejected a request from major ocean carriers to shorten the mandatory notice period for freight rate increases. Under the Shipping Act and FMC regulations, carriers are required to provide 30 days’ notice before implementing any changes to rates or surcharges. While exceptions can be granted under specific circumstances, the regulator determined that the conditions presented did not justify a deviation from the standard rule.

Ocean carriers had sought to reduce the notice period, citing rising operational costs and market disruptions linked to the ongoing geopolitical situation in the Middle East, including impacts around the Strait of Hormuz. Several global shipping lines argued that the volatility required greater flexibility to adjust pricing more rapidly in response to changing cost structures.

However, the FMC concluded that the carriers had not sufficiently demonstrated “good cause” to support the request. While acknowledging that both carriers and shippers are facing increased uncertainty and cost pressures, the regulator emphasised that any exception must be supported by clear and detailed evidence.

The commission highlighted the need for greater transparency in surcharge implementation, stating that carriers should provide data directly linking increased costs to the proposed rate adjustments. This includes clarity on cost levels, duration of impact, and mitigation efforts. Without such justification, the request was considered insufficient.

The decision reinforces the FMC’s role in maintaining a balanced regulatory framework, ensuring that risk is appropriately shared between carriers and shippers. By upholding the 30-day notice requirement, the regulator aims to preserve predictability and confidence in the market during a period of heightened volatility.

The ruling is expected to provide greater stability and planning visibility across supply chains. Shippers benefit from advance notice, enabling better cost management and operational planning. Importers gain improved visibility on upcoming freight rate changes, supporting pricing and procurement decisions. Exporters can maintain more stable contractual arrangements without sudden cost fluctuations.

At the same time, carriers may face reduced flexibility in responding quickly to cost increases, which could result in more structured, and potentially large, adjustments over time. Overall, the decision supports transparency and reinforces confidence in the global shipping market during ongoing disruption.