DOT Submits Comments to FMC Supporting NVOCC Tariff Exemptions, Etc
On March 22, 2004, Secretary of Transportation Norman Mineta addressed the National Industrial Transportation League (NITL) meeting in Arlington, VA. Highlights from Mineta's remarks include (partial list):
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DOT Supports Exempting NVOCCs from Tariff Publication and Adherence Requirements
Mineta stated that one way to ensure a more competitive maritime transportation system is to extend confidentiality rights to non-vessel operating common carriers (NVOCCs). According to Mineta, the Department of Transportation (DOT) submitted comments to the Federal Maritime Commission (FMC) in support of petitions filed by various NVOCCs and trade associations requesting exemption from the tariff publication and adherence requirements of Section 8 of the 1984 Shipping Act.
On January 16, 2004, the DOT submitted comments to the FMC urging that it issue an exemption that would free NVOCCs from the tariff publication and adherence requirements of Section 8 and allow them to enter into confidential contracts with shippers in the same manner that vessel operating common carriers presently are allowed to enter into such contracts.
As a commercial matter, DOT stated that international maritime commerce has already evolved in a manner that now clearly underscores the lack of utility of continued tariff publication and adherence requirements and continuing to require NVOCCs to publicly disclose their rates in tariffs serves no regulatory purpose and reduces competition.
DOT also stated that as a statutory matter, the FMC's exemption authority is now broader that it was previously and Congress has expressed its clear desire that the FMC, as the expert agency overseeing international maritime commerce, should exercise the authority so as to remove unnecessary and counter-productive regulatory burdens.
(The FMC had reopened the comment periods for various petitions on numerous occasions, most recently in November 2003 when it extended the comment period until January 16, 2004.
The FMC has posted to its Web site links to the comments filed by companies, trade associations, Senators and Representatives, and U.S. government agencies (i.e., the Justice Department and DOT) which it received in response to each of the NVOCC tariff exemption petitions. Those comments can be accessed at http://www.fmc.gov/Docket%20Log/Docket%20Log%20Index.htm.
See ITT's Online Archives or 10/30/03 news, 03103010, for BP summary on trade association, Justice Department comments on NVOCC tariff filing exemption petitions.)
Use of Short Sea Shipping to Handle Cargo Increases
Mineta also states that the Bush Administration is taking a serious look at how the largely untapped maritime component of the U.S. transportation system can help move commercial goods more effectively and efficiently. One of the major components to help handle the dramatic cargo increase bearing down on the U.S. transportation system mentioned by Mineta is Short Sea Shipping - moving some truck traffic to U.S. coastal and inland waterways.
DOT Secretary Mineta's comments (dated 03/22/04) available at www.dot.gov/affairs/minetasp032204.htm.
DOT comments to FMC (dated 01/16/04) available at http://www.fmc.gov/weblogs/P9-03/Comment%20-%20Department%20of%20Transportation%201-16-04.pdf.