FMC Receives Agreement Amendments That Would Reduce Service Levels, Sailings
The Federal Maritime Commission has recently received two amendments to agreements that would either reduce the minimum service levels or reduce the number of sailings under an agreement.
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The following are highlights of the amendments filed with FMC:
Amendment to Reduce Minimum Service Levels under Australia & NZ/U.S. Discussion Agreement
An amendment to the Australia and New Zealand/United States Discussion Agreement was also filed with the FMC. This amendment would reduce the minimum service levels to be provided under the agreement.
Amendment to Reduce Sailings under U.S. Pacific Coast-Oceania Agreement
An amendment to the U.S.-Pacific Coast-Oceania Agreement was filed with the FMC. This amendment would permanently terminate the PSW-2 string from the agreement, revise allocations on the two remaining strings, and add language reflecting the payment of liquidated damages.
NCBFAA says amendment is anti-competitive. According to the National Customs Brokers & Forwarders Association of America, which filed a challenge to the proposed change to the agreement, the carriers essentially want to reduce the number of sailings by the agreement in this trade and establish and enforce a mechanism to preclude any member from providing service in this trade even outside the scope of the agreement.
The NCBFAA is urging the FMC to look carefully at both the proposed amendment and the existing agreement and require that the members provide information concerning the likely affects of the amendment, whether the amendment results in any improvement in vessel service, why it does not result in an unreasonable reduction in service or an unreasonable increase in rates, and why the non-compete provisions of the agreement would be the only reasonable method by which the Vessel Sharing Agreement (VSA) can operate.
(It is not known if NCBFAA will submit comments on the amendment to the Australia & NZ/U.S. Discussion Agreement.)
FMC notice on U.S. Pacific Coast-Oceania Agreement (Agreement No. 011275-027, FR Pub 06/11/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-13633.pdf
NCBFAA comments on U.S. Pacific Coast-Oceania Agreement (dated 06/22/09) available at http://www.ncbfaa.org/files/CommentsOceaniaAgrmnt.pdf
NCBFAA press release on comments filed available at http://www.ncbfaa.org/News/PrDetail.cfm?ItemNumber=9170
FMC notice on Australia/New Zealand/U.S. (Agreement No. 011275-028, FR Pub 07/01/09) http://edocket.access.gpo.gov/2009/pdf/E9-15593.pdf