The Federal Maritime Commission reached settlements totaling $338,000 in civil penalties with a non-vessel operating common carrier (NVOCC) and six ocean transportation intermediaries, it said Sept. 29 (here). "The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations," it said. Of that total, $100,000 in civil penalties will be assessed against China International Freight Co. over allegations that it "obtained ocean transportation at less than rates and charges that would be otherwise applicable by improperly utilizing rates and charges limited to specific named accounts in its service contracts." Posey International, King Ocean Services, CL USA, Carlo Shipping International, Sino Connections Logistics and Baron Worldwide were also penalized, it said.

A coalition of importers, exporters, distributors, transportation and logistics providers, and other companies urged Commerce Secretary Penny Pritzker to continue engaging the South Korean government to smoothly resolve supply chain disruptions caused by Hanjin Shipping’s recent bankruptcy filing (here). Shippers are wondering when Hanjin ships will be allowed to access ports, whether creditors will seize goods after docking, where cargo is currently, where it will be unloaded, and how goods will be transported, the group said in a letter. “The trade community is also facing steadily increasing freight charges as they look for new transportation options as well as concerns about fees assessed on cargo,” the coalition said. Small and medium-sized firms could be disproportionately impacted as the situation persists, yet resolution of the matter would bring needed certainty to U.S. businesses, the letter says. CBP recently added two new scenarios to the agency's previously released guidance on vessel diversions due to the Hanjin bankruptcy (see 1609140016).

A recent Federal Maritime Commission proposal to allow a grace period of 30 days after an agreement is reached before non-vessel operating common carriers (NVOCCs) have to file amendments to NVOCC service arrangements (NSAs) would provide “much needed flexibility,” the National Customs Brokers & Forwarders Association of America said in comments to the FMC (here). Currently, NVOCCs have to closely monitor vessel rate and surcharge changes so they can immediately file amendments that incorporate any changes, it said. The FMC proposed the change on Aug. 22 (see 1608220032). However, the NCBFAA “continues to believe that the NSA essential terms publication and filing requirements do not serve a legitimate purpose,” it said. “So, while allowing for the retroactive filing of amendments is certainly a step in the right direction; complete elimination of this requirement for NSAs is warranted," it said. The trade association also called on FMC to allow "NRAs to include non-rate economic terms, including but not limited [to] credit and payment terms, rate methodology, surcharges, minimum quantities, forum selection and arbitration clauses," it said. "Allowing for incorporation of these terms would enable NVOCCs to negotiate and memorialize a complete transaction in a convenient, rational and transparent manner."

China recently eased Zika virus prevention requirements for shipments from the U.S., according to an update from the Foreign Agricultural Service (here). The Chinese General Administration of Quality Supervision, Inspection and Quarantine will no longer require that a certificate accompany vessels and containers from the U.S. that says the container or vessel has been treated for insects, except for vessels and containers loaded or unloaded in the state of Florida, where previously announced measures, including certificate requirements (see 1608250044), remain in effect, FAS said. Nonetheless, if adult mosquitoes, eggs, larvae or infected cases are found in any vessel during inspection at a Chinese port, Chinese authorities will direct a third party to perform disinsection at a cost of about $30 per 20-foot container and $60 per 40-foot container, FAS said.

The Pipeline and Hazardous Materials Safety Administration is proposing changes to its hazardous materials (hazmat) regulations intended to harmonize the regulations with international agreements, it said (here). The proposal would implement recent changes to the International Maritime Dangerous Goods Code, the International Civil Aviation Organization’s Technical Instructions for the Safe Transport of Dangerous Goods by Air, and the United Nations Recommendations on the Transport of Dangerous Goods -- Model Regulations, PHMSA said. Also included are changes to align U.S. and Canadian regulations agreed to by the U.S.-Canada Regulatory Cooperation Council. The changes affect proper shipping names, hazard classes, packing groups, special provisions, packaging authorizations, air transport quantity limitations and vessel stowage requirements, PHMSA said. Comments are due Nov. 7.

LG Electronics is "currently looking at other shipping partner options" in the wake of last week’s Hanjin Shipping bankruptcy filing (see 1608310038), Ken Hong, LG’s senior director-global communications, emailed us Sept. 2. "I have no information at the moment as to any negative effects Hanjin's situation may have had on our supply chain," Hong said. LG was second only to Samsung recently among top users of Hanjin’s shipping and consignment services, according to trade data company Datamyne (see 1609020011).

The Federal Maritime Commission asked for further additional public comments on the agency's revisions to a proposed rulemaking on service contracts and non-vessel operating common carrier service arrangements, it said (here). The FMC now proposes to "allow the filing of sequential service contract amendments in the SERVCON system within 30 days of the effective date of the agreement reached between the shipper and carrier," it said. The agency also requested comments on "whether the current 48-hour period in which to file a [Corrected Transmission] after filing the original contract or amendment should be extended to thirty (30) days to afford carriers with a more realistic time frame to correct purely technical data transmission errors." Comments are due Sept. 23.

The Federal Maritime Commission requested public comments on proposed changes to the agency's regulations for handling third-party comments on agreements by or among ocean common carriers and/or terminal operators, the FMC said in a notice (here). Following a review of comments submitted to the FMC after a proposal issued earlier this year (see 1602290029), the agency now seeks further comments on adding regulatory language to detail the agency's handling of the third-party comments, it said. Currently, "when the Commission receives a comment on a filed agreement, it is distributed internally to the Commissioners and relevant staff. If the commenter requests confidential treatment, the Secretary will make a prompt determination as to the Commission's ability to protect any comment or portion of a comment from disclosure and inform the submitter," the agency said. "If a member of the public, press, or agreement counsel request a copy of a comment, the Office of the Secretary will provide any comment or part of a comment unless the Secretary has determined that the comment or part of the comment should be afforded confidential treatment." The FMC also seeks comments on any "modifications that should be considered."

Vessel Operating Common Carriers and Marine Terminal Operators can now file agreements and amendments through the Federal Maritime Commission's new eAgreements system, the agency said Aug. 2 (here). "The Commission’s new eAgreements system offers a more efficient, less costly, process for the filing and publication of agreements," FMC Chairman Mario Cordero said. Among the system's benefits are instant receipts confirming filings and faster publication of filed agreements, FMC said.

Daniel Maffei officially joined the Federal Maritime Commission on July 18, the agency said in a news release (here). Maffei, a former congressman from New York, was approved as an FMC commissioner by the Senate June 29 and appointed by President Barack Obama on July 18 (see 1607050019). The term for Maffei, who is replacing Commissioner Richard Lidinsky, will end June 30, 2017.