The Federal Maritime Commission will meet on Sept. 20 at 10 a.m. to discuss the Supply Chain Innovation Teams and the review process for the Carrier and Marine Terminal Operator Agreement, the agency said. The FMC will also talk about a petition filed by the Coalition for Fair Port Practices (see 1612090018).
The National Customs Brokers & Forwarders Association of America (NCBFAA) suggested to the Federal Maritime Commission "a significant number of changes" to how non-vessel operating common carriers and ocean forwarders are regulated, the association said (here). The FMC on June 1 issued a notice of inquiry (here) seeking comments on its regulatory reform initiative (see 1705300046). NCBFAA recommended the FMC totally remove NVOCC rate tariffs from regulation since they “now exist only to preserve unnecessary jobs for tariff publishers or to provide a basis for unwary NVOCCs to become subject to FMC penalties for noncompliance.” The association also suggested that co-loading regulations be modified if not eliminated, that an FMC rule preventing forwarding fee discounts and waivers be eliminated, and that a requirement for the underlying shipper to be listed in the shipper box on the bill of lading be removed.
The Federal Maritime Commission will "soon" publish a notice of inquiry to request input on FMC regulations "that should be repealed, replaced, or modified," the agency said in a press release (here). The notice (here) mentions several issues that should be considered, including carrier automated tariffs and marine terminal operator schedules.
The Federal Maritime Commission on May 2 rejected a proposed alliance among three Japanese steamship lines, finding it had no jurisdiction because the agreement was actually a merger, the FMC said (here). The Tripartite Agreement was filed on March 24 by Kawasaki Kisen Kaisha (K-Line), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK), seeking authority to share information with each other in advance of a merger next year. “After careful consideration, the Commission determined that parties to the Tripartite Agreement were ultimately establishing a merged, new business entity and that action is among the type of agreements excluded from FMC review,” the FMC said.
The Long Beach Board of Harbor Commissioners "is expected" to approve Mario Cordero, a current member and recent chairman of the Federal Maritime Commission, as executive director on April 14, the Port of Long Beach said in a news release (here). Cordero will succeed Duane Kenagy, the interim executive director since late 2016, and is expected to join the port in May, it said. “The broad perspective I gained at the national level, along with my many years of service as a Long Beach Harbor Commissioner and my love for the community of Long Beach, will allow me to hit the ground running," Cordero said. The decision follows a "comprehensive international search,” Harbor Commission President Lori Ann Guzman said. “Mario not only has a deep understanding of the maritime industry from his leadership of the Federal Maritime Commission, but his service as a member of the Long Beach Harbor Commission gives him extensive knowledge of the needs of our carriers, terminal operators, cargo owners, and other trade partners. Mario approaches challenges from a bipartisan, collaborative perspective and as we seek to keep our port thriving, his combination of national and local experience is well-suited to carry us into the future.”
Relieving ocean transportation intermediaries and vessel-operating common carriers from tariff publication requirements is “ripe” for Federal Maritime Commission consideration, FMC Acting Chairman Michael Khouri said in April 4 written testimony (here) to the House Transportation Maritime Transportation Subcommittee. Current law and FMC regulations require companies to publish rates that don’t have anything to do with actual market prices charged to shippers, as most ocean cargo movement occurs under terms of service contracts, according to Khouri. “Continuing to mandate thousands of tariffs be published that do not reflect real conditions in the market, and have minimal, if any, use by industry participants when negotiating service contracts, is a requirement and expense that regulated entities could be relieved of under the exemption authority provided to the Commission by Congress,” Khouri said.
The Federal Maritime Commission is issuing a final rule to amend its regulations covering non-vessel-operating common carrier (NVOCC) negotiated service arrangements, the FMC said (here). The rule will become effective May 5, and will allow NVOCCs to amend their service arrangements and immediately bring the changes into effect, as long as they’re written within 30 days before filing the changes with the FMC. Currently, the commission allows implementation of amendments only after they are formally filed with the FMC. The agency approved the final rule in March (see 1703070035).
Some major shipping lines, including the Moller-Maersk, Evergreen, Hapag-Lloyd and Orient Overseas Container lines, were called to testify under a Justice Department antitrust investigation, Reuters reported on March 22 (here). The focus of the investigation remains unclear, according to the report. The DOJ Antitrust Division recently voiced some concerns with the shipping industry in comments to the Federal Maritime Commission (see 1611280024). Investigators for the DOJ gave out the subpoenas at a meeting of shipping executives in San Francisco last week, according to the Journal of Commerce (here), which first reported on the subpoenas. Spokesmen for Hapag-Lloyd and Maersk each confirmed that his company received a subpoena and said they would cooperate with the authorities. The DOJ didn't comment, nor did any the other companies mentioned.
International trade continues to have major benefits for Americans despite becoming an increasingly divisive issue, Federal Maritime Commission Commissioner Mario Cordero said during a March 20 speech for the International Shipping and Offshore Forum (here). "Many in the international trade community have grave concerns with not only the domestic debate questioning the benefits of international trade, but also the global debate," he said. "Let me make clear, international trade is a two-way street. Exports are as important as imports. True, there may be an imbalance on the export-import equation -- and I am a supporter of maximizing export opportunities -- yet, at the end of the day, the success of our U.S. exporters is dependent on a global consumer.”
Acting Chairman of the Federal Maritime Commission Michael Khouri named FMC Managing Director Karen Gregory the commission’s regulatory reform officer, the FMC said in a news release (here). Gregory will head FMC’s Regulatory Reform Task Force, which “will work to identify burdensome, unnecessary, and outdated directives and recommend how they should be remedied.” An executive order issued by President Donald Trump on Feb. 24 requires each agency to set up a regulatory reform task force.