A group of car buyers recently filed a class action complaint (here) with the Federal Trade Commission seeking reparations from major ocean carriers for price fixing in the roll-on roll-off cargo market. The complaint, filed on behalf of “millions” of consumers who purchased cars since 2000 and paid a vehicle carrier service charge, seeks double the amount of injury suffered by car buyers as a result of the alleged price fixing conspiracy. The complaint names Nippon Yusen, NYK Line, Mitsui, World Logistics Service, Hoegh, Nissan Motor Car Carriers, Kawasakia Kisen Kaisha, K Line, Wallenius Wilhelmsen Logistics, Eukore Car Carriers and Compania Sud Americana de Vapores as participants in the scheme. Several carriers, including CSAV and NYK Line, have already paid large fines to settle Justice Department conspiracy charges (see 14030617 and 1501050017).
The Panama Canal Authority will hold its formal inauguration of the expanded Panama Canal on June 26, it said (here). The expansion is “currently 97 percent complete,” with “final testing” set to be conducted in the weeks leading up to the inauguration, it said.
Vessels coming to the U.S. from Cuba will no longer be required to meet various security conditions before entry in the U.S., said the Coast Guard in a notice (here). Based on port assessments last month, the Coast Guard found that Cuba "is now maintaining effective anti-terrorism measures," it said. Since a 2008 Coast Guard finding of "significant risk of introducing instruments of terror into international maritime commerce," vessels that visited Cuban ports during the last five port calls were required to meet a number of additional security conditions before entry to the U.S.
The Transportation Department will close the ongoing public comment period for the draft National Freight Strategic Plan (NFSP) on April 24, DOT said (here). The draft NFSP will include an identification of major trade gateways as well as strategies to improve freight intermodal connectivity, DOT said. DOT issued the request for public comment on Oct. 18, but had not set a comment deadline. DOT intends to issue a final NFSP by the end of July 2016.
The National Association of Manufacturers will create a new working group focused on the international weight verification rules in order to "formally advocate for a clear and logical process to achieve compliance in a reasonable and fair manner," the group said in a news release (here). The NAM members are concerned with the International Maritime Organization rules under the Safety of the Life at Sea Convention (SOLAS) that require shippers to provide verified gross mass as of July 1, the association said. The NAM SOLAS Container Working Group "will partner with other like-minded organizations and seek opportunities to engage policymakers and government leaders here in the U.S. and aboard," it said. Controversy and confusion have grown in recent months over U.S. implementation of the IMO's rules and the Coast Guard's plans for a hands off approach to enforcement (see 1603030014). "There was little transparency and limited input from shippers as this issue worked its way through the IMO over the past few years," the group said. "Manufacturers need more details to begin the process of implementation and achieve compliance. But to reach these practical goals, a partnership is required."
The International Maritime Organization should produce an update on the implementation stages in IMO member states of new container weight requirements, a group of non-vessel operating common carriers said in an open letter (here). The Feb. 28 letter was signed by executives at CaroTrans International, Ecu-Line, Shipco Transport and Vanguard Logistics Services. The group of NVOCCs, which called itself the Global Consolidators Working Group, laid out concerns for the IMO's requirement for verified gross mass (VGM) reporting under amendments to the Safety of the Life at Sea Act (SOLAS), set to take effect July 1. The shippers add to a growing list of concerns over the implementation plans (see 1602190034).
The Agriculture Transportation Coalition (AgTC) has provided guidance to its members for implementing the verified gross mass (VGM) under amendments to the Safety of the Life at Sea Act (SOLAS) set to take effect July 1, according to a message from the group to members on Feb. 25. Coast Guard Assistant Commandant for Prevention Policy Rear Adm. Paul Thomas again indicated to AgTC this week that there is no need to delay VGM implementation or to change the “current cargo weight information flow from shipper to carrier,” because the current process for exporter submission of cargo and weight complies with SOLAS. Thomas added it is unreasonable to ask shippers to provide and certify tare weights for carriers’ containers, stating VGM requirements will be met if shippers provide container gross cargo weights, and the carriers provide tare weights for their equipment to the master documents to be collected by marine terminal operators. SOLAS allows VGM to be provided through one of two methods—Method 1 involves weighing the packed container, and Method 2 involves weighing and adding the mass of the container’s components (see 1602190034).
John DeCrosta will join the Federal Maritime Commission as senior advisor for Legislative and Public Affairs, said FMC Chairman Mario Cordero in a news release (here). DeCrosta will report directly to Cordero and will coordinate "all legislative and public affairs activities throughout the Commission," said the agency.
The Federal Maritime Commission voted on Feb. 18 to approve a request for comment on "a new calculation methodology that would aim to align fees with program costs," the agency said (here). The FMC also voted to seek comment on a proposal involving ocean common carrier and marine terminal operator agreements and another on non-vessel-operating common carrier service arrangements, it said. The agency also finalized regulatory changes that "limit Commissioners’ terms and permit attorney fees to be awarded to the prevailing party in any complaint proceeding brought under the Shipping Act," it said.
The Federal Maritime Commission reached settlements totaling $520,000 in civil penalties with five carriers, freight forwarders and non-vessel operating common carriers (NVOCCs), it announced Feb. 18 (here). Of that total, $170,000 in civil penalties will be assessed against the carrier Volkswagen Konzernlogistiks for operating under agreements that were unfiled or not yet in effect, said the FMC. Penalties against the four forwarders and NVOCCs – Orient Star, Ba-Shi Yuexin Logistics, Thornley & Pitt and Razor Enterprise – stem from obtaining ocean transportation at less than the rates and charges otherwise applicable.