FMC Meets December 14 th on Proposed Rule on NVOCC Service Arrangements
The Federal Maritime Commission (FMC) has announced that it will hold a public meeting on December 14, 2004 in Washington, DC in order to consider its proposed rule (Docket 04-12) on service arrangements for non-vessel operating common carriers (NVOCCs).
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During this meeting, FMC staff are expected to present their analysis of the proposed rule to the commissioners, who then could discuss the proposed rule and/or decide to take action on it, etc.
The proposed rule would provide an exemption from the tariff publication requirements of the Shipping Act of 1984 for NVOCC service arrangements (NSAs), subject to certain conditional filing, publication, and jurisdictional requirements. The FMC states that the proposed rule would provide NVOCCs with the ability to enter into NSAs to provide transportation to their shipper customers on a confidential basis, in lieu of moving all cargo under tariff rates. (See ITT's Online Archives or 11/09/04 news, 04110920 for Part VI of BP's summaries of the proposed rule, with links to earlier summaries.)
According to the FMC, the proposed rule is based on a joint proposal submitted to the FMC by the National Industrial Transportation League (NITL), UPS, BAX Global, FEDEX Trade Networks Transport & Brokerage, Inc., Transportation Intermediaries Association (TIA), CH Robinson Worldwide and BDP International Inc.
Supporters of the joint proposal asked the FMC to implement this regulatory reform as soon as possible, while supporters of another approach advocated by the National Customs Brokers and Forwarder's Association (NCBFAA) stated that while the adoption of the joint proposal would provide some short term relief, it fails to address the significant costs and burdens that currently fall upon NVOCCs. These commenters would prefer to make all NVOCCs unconditionally exempt from the provisions of the Shipping Act that require NVOCCs to establish, publish, maintain and enforce tariffs setting forth ocean freight rates, thereby allowing NVOCCs to offer confidential service contracts as carriers with their shipper customers. (See ITT's Online Archives or 08/15/03 news, 03081515 for BP summary of FMC notice on NCBFAA proposal.)
FMC notice announcing December 14, 2004 meeting (FR Pub 12/09/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-27131.pdf