Michael A. Khouri of Kentucky was designated Acting Chairman of the Federal Maritime Commission (FMC) on January 23, 2017 by President Trump. He was first nominated by President Obama and confirmed by the U.S. Senate in December 2009, was re-nominated and confirmed for a full five year term in November 2011, and was re-nominated and confirmed for another five year term that began in June 2016. Chairman Khouri replaces Mario Cordero, who remains an FMC Commissioner serving a term set to expire in June 2019.

Chairman Khouri is a forty-five year veteran in the maritime industry from positions held in marine vessel operations, legal and executive positions. He also served on the boards of directors at the Waterways Council, Inc. and the American Waterways Operators Association. Chairman Khouri is a graduate of Tulane University, and earned his JD from the Brandeis School of Law-University of Louisville. He is also a graduate of the Harvard Business School’s Advanced Management Program.

In 2010 and 2011, then Commissioner Khouri served as Fact Finding Officer for the FMC’s formal investigation of Household Goods and Personal Property Shipping Practices. This investigation was prompted by the substantial numbers of complaints the FMC received from individuals that experienced various problems with their international household goods shipments. At that time, Commissioner Khouri noted, “the shipment of household goods is becoming a serious and substantial consumer protection problem within the Commission's area of responsibility.” This investigation produced a detailed report and included key recommendations for the Commission, which were unanimously approved by the full Commission in May 2011. These included new and improved efforts by the FMC to educate and protect consumers of international household goods moving services, and an increased emphasis on the alternate dispute resolution services offered by the FMC's Office of Consumer Affairs and Dispute Resolution Services (CADRS).

In 2014 then Commissioner Khouri joined his fellow Commissioners in hosting a series of public forums on international supply chain efficiency and congestion problems at U.S. sea ports. These FMC sponsored forums provided a unique opportunity for industry stakeholders to gather in various locations around the country to share their views on the causes, consequences and challenges surrounding congestion at ports and other parts of the intermodal system, be listened to, and to respond to the concerns of other affected parties. In July 2015 the FMC’s Bureau of Trade Analysis released a detailed report on U.S. Container Port Congestion and Related International Supply Chain Issues, which included an overview of discussions at these public forums.

Port congestion issues have frequently been a topic of Chairman Khouri’s public statements during his tenure on the Commission. In March 2015, he called on his fellow Commissioners to request all of the four major alliances of container carriers in effect at that time to provide new information on the steps each was taking to reduce congestion at U.S. ports. He is well aware of the complex business relationships between vessel operators, terminal operators, shore side labor, truck labor, harbor drayage companies, chassis equipment providers, NVOCCs, freight forwarders, U.S. Customs and Border Protection, and beneficial cargo owners, and the Federal Maritime Commission.

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A carrier member of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, filed and implemented a GRI in its FMC tariff this month, and other TSA member carriers continue to attempt to use GRIs as key part of their pricing. Hapag Lloyd implemented a GRI of USD 500 per FEU effective February 1. CMA CGM reduced its GRIs from USD 1000 per FEU to USD 600 FEU and postponed the effective date from February 1 until March 1. APL withdrew its February GRIs. K Line and NYK are no longer carrier members, but filed similar GRIs of USD 600 per FEU and USD 1000 per FEU, respectively. GRI amounts for all other container sizes are as per formula.

Effective March 1, GRIs will be USD 600 per FEU for CMA CGM, COSCO, Evergreen, Maersk, and Yang Ming. The March 1 GRI for CMA CGM is a postponement of a GRI that had initially been filed for effective February 1. Also, APL filed GRIs of USD 1000 per FEU, and Hapag Lloyd filed USD 700 per FEU. K Line and NYK are no longer carrier members, but filed similar GRIs of USD 800 per FEU and USD 1000 per FEU, respectively. These will be the third and fourth GRIs of 2017 for the East Asia/USA trade lane.

The TSA's 10 member carriers are American President Lines, CMA CGM, COSCO Container Lines, Evergreen Marine, Hapag-Lloyd AG, Hyundai Merchant Marine, Maersk Line, Mediterranean Shipping, OOCL, and Yang Ming Marine. The group's web site at www.tsacarriers.org provides additional information; however, each carrier maintains its own tariffs and controls its own pricing.

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Several members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, filed GRIs of USD 120/150/150/190 per 20'/40'/40'HC/45'HC, respectively, for US inland origins via IPI/MLB/RIPI, and USD 80/100/100/140 per 20'/40'/40'HC/45'HC, respectively, for all other US origins, effective February 1, 2017. GRI amounts for all other container sizes are as per formula.

Effective March 1, 2017, some of the TSA Westbound member carriers filed additional GRIs of USD 120/150/150/190 per 20'/40'/40'HC/45'HC, respectively, on rates applicable from US inland origins via IPI/MLB/RIPI, and USD 80/100/100/140 per 20'/40'/40'HC/45'HC, respectively, for all other US origins. Evergreen made an exception for port or IPI cargo via Houston, TX and Mobile, AL, and GRIs for Houston and Mobile will be USD 240/300/300/300 per 20'/40'/40'HC/45'HC, respectively.

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Some carrier members of the United States/Australasia Discussion Agreement, FMC Agreement No. 011117, whose member carriers serve the USA/Australia and New Zealand trade lanes, implemented General Rate Increases effective January 16, 2017. Member carrier CMA CGM implemented GRIs in the amounts of USD 200 per 20' and USD 400 per 40' container for cargo from US East/Gulf Coast Ports or Inland Points via East/Gulf Coast Ports. Members ANL and Hamburg Sud applied GRIs in the amounts of USD 200 per 20' and USD 400 per 40' container for cargo from US West/East/Gulf Coast Ports and Inland Points. The current agreement members are ANL Singapore Pte Ltd, CMA-CGM, Hamburg Sud, MSC Mediterranean Shipping Company S.A., and Pacific International Lines (PTE) Ltd.

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