FMC Denies Eight Petitions That Requested NVOCC Tariff Publication Exemptions, Etc. (in Light of NSA Final Rule)
The Federal Maritime Commission (FMC) has issued eight orders denying eight petitions submitted by seven non-vessel operating common carriers (NVOCCs) and one trade association requesting that some or all NVOCCs be granted, variously, the ability to enter into confidentially negotiated service contracts with their customers, an exemption from establishing and publishing rate tariffs for ocean transportation, etc.
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The FMC further states that these eight proceedings have been discontinued.
FMC Denies Petitions, Discontinues Proceedings In Light of NSA Final Rule, Etc.
The FMC states that on December 17, 2004, it issued a final rule, which became effective January 19, 2005, exempting NVOCCs from the tariff publication requirements of the Shipping Act of 1984 (Shipping Act), subject to certain filing requirements.
According to the FMC, under this final rule the seven NVOCC petitioners, as well as all other NVOCCs, have the option of entering into service arrangements (i.e., NVOCC Service Arrangements (NSAs)) with their shipper-customers and are exempt from the otherwise applicable tariff publication and adherence requirements of the Shipping Act, on the condition that their NSAs are filed with the FMC.
In the orders denying the seven NVOCC petitions, the FMC states that in light of its recent NSA final rule, it has determined in its discretion that no further action will be undertaken.
In the order denying the trade association's (NCBFAA's) petition, the FMC states that it has determined in its discretion that no further action on the petition is warranted.
FMC recognizes final rule does not satisfy NCBFAA's request for relief. The FMC states that it recognizes that the recently enacted exemption provided for in the final rule does not fully satisfy NCBFAA's request for relief. However, the FMC emphasizes that in the creation of the final rule, all of NCBFAA's arguments were fully considered, and notes that the final rule grants to NVOCCs substantial contracting flexibility.
The eight petitions were filed on various dates from July 2003 through March 2004 by the United Parcel Service, Inc. (UPS); the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA); Ocean World Lines, Inc. (OWL); BAX Global Inc. (BAX); C.H. Robinson Worldwide, Inc. (CHRW); Danzas Corporation dba Danmar Lines Ltd., Danzas AEI Ocean Services, and DHL Danzas Air and Ocean (Danzas); BDP International, Inc. (BDP); and FedEx Trade Networks Transport & Brokerage, Inc. (FedEx).
(See ITT's Online Archives or 01/21/05 news, 05012110, for BP summary of the NSA final rule taking effect on January 19, 2005, which includes links to other related BP summaries.)
FMC denial orders (served 02/08/05) available at:
P3-03 (UPS): http://www.fmc.gov/Docket%20Log/P3-03%20UPS%20order%202-8-05.htm
P5-03 (NCBFAA): http://www.fmc.gov/Docket%20Log/P5-03%20NCBFAA%20order%202-8-05.htm
P7-03 (OWL): http://www.fmc.gov/Docket%20Log/P7-03%20OWL%20order%202-8-03.htm
P8-03 (BAX): http://www.fmc.gov/Docket%20Log/P8-03%20BAX%20order%202-8-05.htm
P9-03 (CHRW): http://www.fmc.gov/Docket%20Log/P9-03%20CHRW%20order%202-8-05.htm
P1-04 (Danzas): http://www.fmc.gov/Docket%20Log/P1-04%20Danmar%20order%202-8-05.htm
P2-04 (BDP): http://www.fmc.gov/Docket%20Log/P2-04%20BDP%20order%202-8-05.htm
P4-04 (FedEx): http://www.fmc.gov/Docket%20Log/P4-04%20Fedex%20order%202-8-05.htm