The Federal Maritime Commission (FMC) announced it has decided to issue a formal Request for Additional Information (RFAI) in response to an amendment filed in April by the parties to the West Coast Marine Terminal Operators Agreement (WCMTOA). The amendment would change the PierPass fee structure and implement appointment systems for truckers serving facilities at the Ports of Los Angeles and Long Beach.

PierPass Inc. announced earlier this year that the members of the West Coast Marine Terminal Operators Agreement (WCMTOA) had agreed to adopt a new appointment system for container pickup and delivery, and a flat fee for its OffPeak program, effective August 1, 2018, however, in FMC’s database of agreements the proposed amendment is currently shown as December 31, 2018. Under FMC regulations, this agreement and any amendment to it must be filed with the FMC a minimum of 60 days prior to its effective date, and it is subject to regulatory review. By requesting additional details from WCMTOA the FMC will likely require far more than 60 days for its regulatory review and it could possibly require changes to the proposal.

Under the proposed amendment to the PierPass fee structure a new flat fee of USD 31.52 per TEU (twenty-foot equivalent unit), and USD 63.04 for all other container sizes will apply. The new fee will apply for both day and night cargo, across all hours of operation. The current PierPass Traffic Mitigation Fee (TMF) is USD 72.09 per TEU; USD 144.18 for all other container sizes, and it applies only during daytime hours. The PierPass website at http://pierpass.org provides detailed information.

Under the Shipping Act, the FMC has the responsibility to ensure the changes to the PierPass fee structure and business practices proposed in this amendment will not have an anticompetitive impact on the industry by causing an unreasonable reduction in transportation service or an unreasonable increase in transportation cost. In commenting on the FMC’s decision to require more details, FMC Commissioner Daniel B. Maffei noted “while there may be potential benefits to a common appointment system, standard operational rules, and other jointly negotiated processes, it is as yet unclear why there must be anticompetitive price fixing across all terminal operators at the LA/LB port complex in order to accomplish these goals.”

West Coast Marine Terminal Operators Agreement (WCMTOA) is FMC Agreement No. 201143. It was first authorized by FMC in June 2003 and it current includes 12 separately incorporated marine terminal operators at the ports of Los Angeles and Long Beach. Subject to FMC oversight, WCMTOA members are authorized to meet, discuss and agree on matters related to rates, charges, rules, regulations, practices, terms and other conditions of service relating to the relationship between the members and motor carriers and rail carriers serving these ports. Current WCMTOA members are: APM TERMINALS PACIFIC LTD., EAGLE MARINE SERVICES, LTD., EVERPORT TERMINAL SERVICES, INC., INTERNATIONAL TRANSPORTATION SERVICE, INC., LBCT LLC dba LONG BEACH CONTAINER TERMINAL LLC, PACIFIC MARITIME SERVICES, L.L.C.+, SSAT (PIER A), LLC+, SSA TERMINALS, LLC + (+Affiliates of SSA Marine), TOTAL TERMINALS INTERNATIONAL, LLC, TRAPAC INC., WEST BASIN CONTAINER TERMINAL LLC (Member of PortsAmerica Group), and YUSEN TERMINALS LLC.

Back to top

Rising fuel costs have prompted several ocean carriers serving the East Asia/USA trade lanes (U.S. Imports) and USA/East Asia trade lanes (U.S. Exports) to update their FMC tariffs to apply a new Emergency Bunker Surcharge (EBS). The EBS is also called the Bunker Recovery Charge (BRC), or Emergency Fuel Cost Recovery (ERC). The EBS ranges from USD 55 to 438 per container. Some ocean carriers will apply the EBS in addition to Bunker Surcharges (BAF); some will not apply EBS if the tariff rates or service contract rates are already subject to full standard bunker surcharge or BAF amounts.

Back to top

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges as provided in their FMC tariff rules effective July 1 through September 30, 2018. Details are as follows.

Note 1: Hapag Lloyd has changed its Bunker and Low Sulphur Fuel Charge (LSF) cycle from monthly back to quarterly for the East Asia/USA trade lanes (U.S. Imports). The above Bunker will apply for July 1, 2018 thru September 30, 2018.

Back to top

Some carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective June 15, 2018, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express (ONE) and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The June 15th GRIs will be the eleventh GRI of 2018 for the East Asia/USA trade lane.

Instead of filing an increase in its tariff, Maersk announced a contract increase for effective June 15, 2018 for the Far East Asia/USA trade lane. The contract increase will affect those with service contract (SC) rates that expire June 14, 2018, who want new SC rates valid June 15, 2018 and beyond. The contract increase will be USD 480/600/600/750 per 20ft/40ft/40HC/45HC dry container, respectively. Once SC rates expire on June 14, 2018, tariff rates will apply until a SC written agreement is finalized to reflect the contract increase. Filing of original SCs with FMC is required on or before the effective date; the deadline for filing SC amendments with FMC is within 30 days of scheduled effective date.

Note 1: COSCO GRIs apply on all cargo moving under service contracts only.

Carriers whose tariffs provide a General Rate Increases (GRIs) effective July 1, 2018, include APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, OOCL, and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The July 1st GRIs will be the twelfth GRI of 2018 for the East Asia/USA trade lane.

Instead of filing an increase in its tariff, Maersk announced a contract increase for effective July 1, 2018 for the Far East Asia/USA trade lane. The contract increase will affect those with service contract (SC) rates that expire June 30, 2018, who want new SC rates valid July 1, 2018 and beyond. The contract increase will be USD 800/1000/1000/1250 per 20ft/40ft/40HC/45HC dry container, respectively.

Note 1: COSCO GRIs apply on all cargo moving under service contracts only.

Each carrier maintains its own tariffs and controls its own pricing.

Back to top

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the July to September 2018 quarter. Here is a table of carriers that have filed BAF amounts in FMC tariffs:

NOTE 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS.

Each carrier maintains its own tariffs and controls its own pricing.

Back to top