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FMC Requests Comments on Two New Petitions for an Exemption from NVOCC Tariff Publishing Requirements

The Federal Maritime Commission (FMC) has issued two notices announcing that it has received two new, similar petitions as described below. According the FMC, interested persons are requested to submit comments on these petitions on or before February 13, 2004.

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(These two petitions are in addition to five petitions that were filed with the FMC requesting that some or all non-vessel operating common carriers (NVOCCs) be granted, variously, the ability to enter into confidentially negotiated service contracts with their customers, an exemption from establishing and publishing rate tariffs for ocean transportation, etc. (See ITT's Online Archives or 11/17/03 news, 03111710, for BP summary of the FMC's reopening of the comment periods until January 16, 2004 for these five petitions, etc.))

The following are "highlights" of each of the two petitions:

BDP International, Inc. Petition (P2-04)

Exemption requested to permit BDP to offer confidential, individually tailored packages of logistics services, including ocean transportation. According to its petition, BDP International, Inc. (BDP) is requesting that the FMC exempt it from the otherwise applicable tariff publishing requirements of Section 8(a) and 8(b) of the Shipping Act of 1984, as amended (Shipping Act) and the corresponding tariff publishing rules in 46 CFR Part 520, to the extent necessary to permit BDP to selectively and in its discretion, offer its customers in contract format a confidential, individually tailored package of logistics services, that includes ocean transportation.

If the exemption is granted, and to the extent that BDP exercises its discretion to enter confidential service contracts, BDP's petition states that it would comply with whatever reasonable conditions the FMC might set for oversight of these confidential transactions (e.g., requiring that the parties maintain copies of these confidential arrangements for a specified period subject to review by the FMC, etc.).

According to the petition, BDP is an NVOCC that offers transport and logistics services.

Danzas Corporation Petition (P1-04)

Exemption requested to permit Danzas to offer confidential, individually tailored packages of logistics services, including ocean transportation. According to its petition, the Danzas Corporation (Danzas) requests that the FMC exempt it from the otherwise applicable tariff publishing requirements of Section 8(a) and 8(b) of the Shipping Act and the corresponding tariff publishing rules in 46 CFR Part 520, to the extent necessary to permit Danzas to selectively and in its discretion, offer its customers in contract format a confidential, individually tailored package of logistics services, that includes ocean transportation.

If the exemption is granted, and to the extent that Danzas exercises its discretion to enter confidential service contracts, Danzas' petition states that it would comply with whatever reasonable conditions the FMC might set for oversight of these confidential transactions (e.g., requiring that the parties maintain copies of these confidential arrangements for a specified period subject to review by the FMC, etc.).

According to the petition, Danzas is both an NVOCC and an integrated ocean logistics services provider.

dba Danmar Lines Ltd., Danzas AEI Ocean Services, and DHL Danzas Air and Ocean

- written comments on petitions are due on or before February 13, 2004

FMC notices (FR Pub 02/03/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-2076.pdf (BDP) and http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-2075.pdf (Danzas)

Petitions available by email fromBP by emailing staff@brokerpower.com