The Federal Maritime Commission (FMC) has scheduled two more public forums to help examine causes and implications of congestion at U.S. ports and to explore possible solutions: one in Charleston, and one in New Orleans. Similar forums were recently held in Los Angeles and Baltimore. On October 30, 2014 FMC Commissioner Michael Khouri will hold an informational forum, “International Supply Chain Efficiency: Challenges Facing South Atlantic Ports” at the Charleston Area Convention Center, 5000 Coliseum Drive, North Charleston, SC 29418. On November 3, 2014 Commissioner Rebecca F. Dye will hold an informational forum, “International Supply Chain Efficiency: Challenges Facing Gulf Coast Ports” at the Port of New Orleans Headquarters Building Auditorium, 1350 Port of New Orleans Place, New Orleans, LA 70130. Participants may register to attend these forums, or to speak in the morning or afternoon sessions by contacting the FMC Secretary via email: secretary@fmc.gov or phone: (202) 523-5725. Industry stakeholders, regulators, and the general public are encouraged to take part. More details about these FMC events are posted on www.fmc.gov under the news link.

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The Federal Maritime Commission (FMC) has confirmed it will move forward with its recently announced plan to stop using the Federal Register to notify the shipping public of Ocean Transportation Intermediary (OTI) license applications and revocations in favor of a new website publication that will be available at www.fmc.gov The FMC has created a new dedicated webpage where it will continue to publish the same OTI licensing information that it has historically published in the Federal Register, i.e. date of application, license number, applicant name and address, type of application, date of revocation, and reason for revocation. FMC’s new webpages will provide access to archives of older OTI licensing activity postings for easy reference and historical research so the public and particularly ocean carriers and OTIs can determine the exact, official date the FMC took an action with respect to the licensing status of an OTI.

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After a full year of considering comments received on its proposed amendments to OTI licensing and bonding requirements, Federal Maritime Commission Chairman Mario Cordero and Commissioner William Doyle have announced the Commission will dramatically scale back this proposal. All the proposed increases and changes related to surety bonding requirements and claims against bonds have been dropped. Proposed requirements for OTI agents have been dropped. Additional fees for renewing licenses and registrations have been dropped; however, the FMC will move forward with its plan to require all OTI licensees to submit license renewal documents every three years. Under the current regulations, OTI licenses have no expiration dates, but do require licensees to report promptly to the FMC when they move to new offices, add branch offices, or change company shareholders, directors or officers, or change company names, or adopt new trade names. The FMC has noted many OTIs fail to comply with this requirement. The new license renewal requirement will utilize the FMC’s website, and it expected to improve compliance. The revised FMC Docket 13-05 will be issued shortly, and it will include another comment period before it is finalized and effective.

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Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, have filed General Rate Increases (GRI) effective October 15, 2014. Some opted to have their GRIs effective either October 4 or 8, 2014. This is the seventh GRI of this year.

The following GRI is one that several TSA carrier members added to their FMC tariffs in early September. The initial effective date for this newest GRI was October 8, 2014, but the effective date was postponed to October 15, 2014 less than a week later. The amounts of this GRI are noted below. Some carriers opted for different amounts and/or different effective dates:

Asia Sub-Continent includes India, Pakistan, Bangladesh, and Sri Lanka. Maersk Line also opted to file a GRI of USD 675 per 40ft reefer container effective October 15, 2014. APL filed additional GRI amounts of USD 865 per 48ft container and USD 960 per 53ft container effective October 15, 2014.

Most carriers implemented the previous six GRIs in 2014, including GRIs that were effective September 1, August 1, May 15, April 15, March 15, January 15 of 2014. The amount for January 15, 2014 was USD 300 per 40ft container (FEU); for March 15, 2014 was USD 300 per FEU; for April 15, 2014 was USD 300 per FEU; for May 15, 2014 was USD 300 per FEU for rates applicable to US West Coast Ports, and USD 400 per FEU on rates applicable to all other USA destinations; for August 1, 2014 was USD 600 per FEU; and for September 1, 2014 was for USD 600 per FEU. Some exceptions were made for cargo from Japan and India Sub-Continent to USA.

In a related development, several TSA member carriers have recently updated their calculation of non-published tariff rates for 20ft containers to reflect either 85% or 90% of the published 40ft container rate, and filed GRIs for 20ft rates accordingly. Previously, these 20ft rates were based on 80% of the 40ft rates.

The TSA’s fifteen carrier members are American President Lines, China Shipping Container Lines, CMA CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag Lloyd AG, Hyundai Merchant Marine, “K” Line, Maersk Line, Mediterranean Shipping, NYK Line, OOCL, Yang Ming Marine, and Zim Integrated Shipping Services. The group’s web site at www.tsacarriers.org provides additional information; however, each carrier maintains its own tariffs and controls its own pricing. The TSA Carrier group only issues recommended guidelines to its member carriers. Website addresses for all carriers are listed on www.fmc.gov.

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