FMC Grants Three Chinese Carriers Exemption from Controlled Carrier 30-Day Waiting Period for Tariff Reductions
The Federal Maritime Commission (FMC) has issued three orders in response to petitions filed with the FMC by three Chinese carriers requesting to be exempt from certain provisions of Section 9(c) of the Shipping Act of 1984 (46 USC app. 1708) (Controlled Carrier Act), which would enable the petitioners to reduce tariff rates immediately, rather than be subject to the 30-day waiting period prescribed by the Controlled Carrier Act.
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The three petitions were filed by China Ocean Shipping (Group) Company (COSCO) (P3-99), China Shipping Container Lines Co., Ltd. (China Shipping) (P4-03), and Sinotrans Container Lines Co., Ltd. (Sinolines) (P6-03).
FMC Grants One Petition in Full and Two Petitions in Part
The FMC granted all three petitioners' requests for exemption from the 30-day waiting period. However, in the case of COSCO and China Shipping the FMC only granted the petitions in part as it refused to make the exemption permanent. The petition filed by Sinolines, which was granted in full, did not request that the exemption be made permanent.
The FMC explains that it is granting the exemption as the petitioners have argued persuasively that the exemption will actually promote competition and will not be detrimental to commerce.
(On January 28, 2004, the FMC announced that it was reopening until February 23, 2004 the comment periods for these three petitions. The FMC explained that it reopened the comment period in light of the bilateral U.S.-China Agreement on Maritime Transport. At the time, the FMC noted that both the Maritime Administration and the State Department urged it to favorably consider the petitions. See ITT's Online Archives or 01/28/04 news, 04012830, for BP summary of FMC's re-opening of the comment period.)
or, regarding COSCO, the partial exemption granted by the FMC in 1998.
FMC Orders (served 04/01/04) available at
P3-99: http://www.fmc.gov/Dockets/P3-99%20COSCO%20Order%203-31-04.htm
P4-03: http://www.fmc.gov/Dockets/P4-03%20China%20Shipping%20order%2003-31-04.htm
P6-03: http://www.fmc.gov/Dockets/P6-03%20Sinolines%20order%203-31-04.htm