FMC Denies Requests for Expedited Reviews of LA/LB Port Check Agreement, TSA Cost-Saving Amendment
The Federal Maritime Commission has issued a notice announcing that on January 14, 2009, the Commissioners voted to deny requests for expedited reviews of:
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the Port Fee Services Agreement, FMC Agreement No. 2011991, and
an amendment to the TransPacific Stabilization Agreement (TSA), FMC Agreement No. 011223-043.
Port Fee Services Agreement Would Authorize Port Check, MTOs to Provide Certain Services to LA/LB
FMC Agreement No. 201199 would authorize Port Check LLC and the marine terminal operators (MTOs) to provide certain services to the Ports of Los Angeles and Long Beach relating to the collection of the clean truck fee (CTF) and the infrastructure cargo fee (ICF), control of access to port property, and related activities.
The Port of Long Beach previously stated that PortCheck - similar to the existing PierPass system - would collect the LA/LB ports' tariff requirements under the Clean Truck Program (CTP), etc.
According to this FMC notice, the period of review for this agreement ends on February 13, 2009.
TSA Amendment Would Allow Members to Discuss Cost Savings, Capacity
The amendment filed to the TSA, FMC Agreement No. 011223-043, would provide authority for TSA members to discuss cost savings and more efficient use of vessel and equipment assets and networks. The FMC notice states that the review period for this amendment ends on February 1, 2009.
NCBFAA Opposes TSA Amendment, States it Would Reduce Service/Raise Rates
The National Customs Brokers & Forwarders Association of America, Inc. submitted comments opposing this TSA amendment. According to NCBFAA, the amendment seeks immunity from antitrust laws to collectively discuss capacity and rationalization issues, and could result in an unreasonable reduction in transportation service or an unreasonable increase in transportation costs. To support its position, the NCBFAA provided the FMC with a Justice Department study that concluded the effect of capacity control coordination, even for a limited time, could have significant adverse effect on consumer prices.
1On December 3, 2008, the FMC had voted against expediting its review of Agreement No. 201199. However, the FMC subsequently requested views or arguments in reply by December 15, 2008 on a petition (No. P2-08) requesting that the Commissioners review its staff's decision that the agreement was ineligible for an expedited review.
(See ITT's Online Archives or 01/13/09 news, 09011320, for BP summary of FMC's third meeting on Agreement No. 201199, and its first meeting on the TSA amendment. See ITT's Online Archives or 12/16/08 news, 08121615, for BP summary of second meeting on Agreement No. 201199. See ITT's Online Archives or 12/02/08 news, 08120210, for BP summary of FMC announcement of first meeting on Agreement No. 201199.)
See ITT's Online Archives or 12/31/08 news, 08123199 1, for BP summary of FMC notice on filing of TSA amendment and request for comments. See ITT's Online Archives or 12/10/08 news, 08121015, for BP summary of the FMC's denial of a request to expedite the review period, and the FMC's request for comments on Petition No. P2-08.
See ITT's Online Archives or 11/17/08 news, 08111710, for BP summary of LA/LB again delaying collection of CTFs. See ITT's Online Archives or 11/18/08 news, 08111820, for BP summary of FMC holding a closed meeting on November 20, 2008 on its complaint for injunction against the LA/LB CTP agreement.)
FMC's press release on vote (dated 01/15/09) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=267
Commissioner Brennan's dissent on Agreement No. 201199 vote (dated 01/16/09) available at http://www.fmc.gov/speeches/newsrelease.asp?SPEECH_ID=268
FMC Agreement No. 011223-043 (amendment) available at http://www2.fmc.gov/agreement_lib/011223-043-P.pdf
NCBFAA press release available at http://www.ncbfaa.org/News/PrDetail.cfm?ItemNumber=7994
NCBFAA comments (dated 01/08/09, with attached October 2008 Justice Dept report) available at http://www.ncbfaa.org/files/NCBFAACommentonTSAAmendment.pdf