FMC Requests Comments on FedEx's Petition for an Exemption from NVOCC Tariff Publishing Requirements
The Federal Maritime Commission (FMC) has issued a notice announcing that it has received a petition from FedEx Trade Networks Transport & Brokerage, Inc. (FedEx) for an exemption from the tariff publishing and adherence requirements of the Shipping Act of 1984, as amended (Shipping Act) in order to permit it to depart from the provisions of its tariff and enter into confidential service contracts for ocean transportation services with shippers.
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(This petition is in addition to seven other petitions that have been 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 02/04/04 news, 04020415, for BP's most recent summary on these petitions.)
FedEx Requests Exemption from NVOCC Tariff Establishment, Publication, Maintenance, and Enforcement Requirements
In its petition, FedEx requests that the FMC exempt it from all provisions of the Shipping Act that require NVOCCs to establish, publish, maintain, and enforce tariffs for transportation. Specifically, FedEx requests that it be exempted from Sections 8(a), (b), (d), and (e) and, to the extent necessary, Section 10(b)(1), (2), (4), (7), and (8) of the Shipping Act.
FedEx asserts that the granting of such an exemption by the FMC would have beneficial commercial effects, and be responsive to the preference of shippers for individual contracts that reflect their shipping needs. According to FedEx, such an exemption would also enhance competition between vessel operators and FedEx, by preventing vessel operators from soliciting customers from surmised tariff information or setting rates that render FedEx's pricing structure unprofitable.
FedEx Seeks Individual Petition In Case FMC Grants Competing NVOCC Petitions
FedEx states in its petition that it is seeking an individual exemption from the Shipping Act's tariff publication and adherence requirements to ensure that competing NVOCCs such as United Parcel Service Co., Danzas Corporation, BDP International, Inc., and C.H. Robinson Worldwide, Inc. do not gain a competitive advantage if the FMC decides to grant their separate petitions.
FedEx Requests Exemption if FMC Decides Not to Institute Rulemaking
FedEx states that it strongly supports the petition of BAX Global and others for rulemaking proceedings to exempt all qualified third-party logistics companies from Shipping Act barriers that prevent them from offering individual transportation agreements with shippers. According to FedEx, such a rulemaking would be the most efficient and fair way for the FMC to promote competition under the Shipping Act by placing NVOCCs and vessel operating common carriers (VOCCs) on equal footing.
However, if the FMC decides not to institute such a rulemaking, FedEx asks that the FMC exempt it from the Shipping Act's tariff publishing and adherence requirements. FedEx also requests that, if the FMC chooses to initiate a rulemaking proceeding, the FMC should grant it an exemption from the tariff requirements while the rulemaking proceeding is in progress.
Comments on FedEx's Petition are Due by April 2, 2004
According to the FMC, comments on FedEx's petition are due by April 2, 2004. The FMC notes that comments submitted in response to its notice must be limited to the merits of FedEx's petition.
The FMC states that commenters should not use this as an opportunity to submit further comments or replies to Petition Nos. P3-03, P5-03, P7-03, P8-03, P9-03, P1-04, and P2-04 or any replies thereto. According to the FMC, the comment period in these petitions is closed and the FMC's rules prohibit replies to replies.
FedEx Trade Networks Transport & Brokerage, Inc. is a wholly-owned subsidiary of FedEx Trade Networks, Inc. which in turn is a wholly-owned subsidiary of FedEx Corporation.
FMC notice (dated 03/17/04) available at
http://www.fmc.gov/Dockets/P4-04%20Notice%20of%20Filing.htm.
FedEx petition (P4-04, dated 03/12/04) available at