The Alliance for Chemical Distribution (ACD) urged federal regulators to review recent ocean carrier surcharges affecting chemical distributors and other shippers.

In letters sent to the Federal Maritime Commission (FMC) and the Surface Transportation Board (STB), ACD said members have already received surcharges from ocean carriers citing fuel costs and risks associated with the military conflict in the Middle East, including on routes outside the region.

“ACD is particularly concerned about the rise in surcharges, given the history of ocean carriers leveraging crises to increase profits rather than recovering costs,” said Eric R. Byer, president and CEO of ACD.

According to ACD, members experienced similar surcharges during the COVID-19 pandemic, the Red Sea shipping disruptions and the East Coast port strike. The organization said shippers often lack transparency regarding how carriers determine surcharge levels or apply them to specific routes.

“Moreover, force majeure is often invoked without appropriate justification to bypass 30-day notice requirements,” Byer said. “This forces shippers to pay the fee or forgo shipping their cargo, even when surcharges are excessive or apply to unaffected routes.”

ACD also raised concerns that additional surcharges from freight rail carriers could affect intermodal shipments.

“These issues significantly impact intermodal shipments, as freight rail carriers often impose additional surcharges, forcing intermodal shippers to pay a second wave of fees,” Byer said.

The organization also warned that shipping disruptions could affect the movement of hazardous materials used in industrial manufacturing.

“During previous times of crisis and capacity shortages, it has been common for ocean carriers to refuse to ship hazardous materials to prioritize more favorable cargo,” Byer said.

ACD said it is encouraging regulators to continue using their authority to review shipping practices affecting U.S. supply chains.