SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index.

FMC Allows Port of NYNJ/OCEMA Agreement to Take Effect

A tie vote by the Federal Maritime Commission (FMC) allowed a new agreement between the Port of New York and New Jersey and the Ocean Carrier Equipment Management Agreement (OCEMA) to take effect on June 25, 2017. This agreement is designated FMC Agreement No. 012484 and it authorizes the Port of New York and New Jersey and OCEMA, which is a group of eighteen ocean carriers, to collect and exchange information, discuss, and reach agreement upon matters relating to the cargo facility charge (CFC) levied by the Port as per its marine terminals tariff.

Two Commissioners were concerned about the significant market share that OCEMA members and its individual carriers control at the Ports of New York and New Jersey and voted to seek additional information that would assist the agency in fully assessing the competitive effects and consequences of the agreement. Two Commissioners voted to allow the agreement go into effect without requiring additional information at this time, and one of the five Commissioners did not vote. A majority vote is required for the Commission to take action on an agreement; therefore, the agreement became effective without delay and further review.

The Ocean Carrier Equipment Management Agreement is an FMC approved discussion agreement (FMC Agreement No. 011284) of eighteen ocean common carriers. OCEMA provides a forum for its members to discuss, evaluate, and reach agreement with respect to matters pertaining to the interchange, transportation, use, and operation of carrier equipment, including containers, chassis, and rail cars. OCEMA's activities are authorized under the U.S. Shipping Act, as amended. The OCEMA Basic Agreement is filed with the Federal Maritime Commission; it was initially approved by the Commission in July 1990 and has been amended many times to add and remove member carriers. Current members are Alianca Navegacao e Logistica Ltda.; APL Co. Pte Ltd.; American President Lines, Ltd.; Maersk Line A/S; CMA CGM, S.A.; COSCO Shipping Co., Ltd; Evergreen Line Joint Service Agreement; Hamburg-Süd; Hapag-Lloyd AG; Hapag-Lloyd USA LLC; Ltd.; Hyundai Merchant Marine Co. Ltd.; Kawasaki Kisen Kaisha, Ltd.; Mediterranean Shipping Company, S.A.; Mitsui O.S.K. Lines Ltd.; Nippon Yusen Kaisha Line; Orient Overseas Container Line Limited; United Arab Shipping Limited; Yang Ming Marine Transport Corp.; and Zim Integrated Shipping Services, Ltd.

The Cargo Facility Charge (CFC) of the Port of New York and New Jersey as set out in its Marine Terminals Tariff Schedule FMC Schedule No. PA 10, Section H, sub-rule 34-120, is currently USD 5.512 per 20’ container, and USD 11.024 per 40’ container. The CFC for vehicles is USD 1.238 per unit, and the CFC for breakbulk cargoes is USD 0.156 per metric ton. These CFC amounts have not changed since January 2011.

Under the current Port of New York and New Jersey tariff rules, each terminal operator is required to provide to the Port with vessel activity reports setting forth data necessary for collection of the CFC. The new NYNJ/OCEMA Agreement authorizes the parties to explore other means of billing and collecting the CFC, the responsibility for payment, and alternatives and possible modifications to the current CFC. The agreement may also consider increasing the current CFC amounts. Any new operational program agreed to be jointly undertaken pursuant to the new NYNJ/OCEMA Agreement shall not be implemented without further amendment to this agreement, which would be filed with FMC and subject to FMC review.

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West Coast MTO Agreement Announce Increase to PierPass TMF

The West Coast Marine Terminal Operators Agreement (WCMTOA) announced an increase in the PierPass Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach. Effective August 1, 2017, the TMF will increase from USD 70.49 per twenty-foot equivalent unit (TEU) to USD 72.09 per TEU or USD 144.18 per FEU. The announced change reflects increases in labor costs contained in the contract agreed to between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). PierPASS is a not-for-profit company created by marine terminal operators at Los Angeles and Long Beach in 2005 to address multi-terminal issues such as congestion, security, and air quality. Visit the PierPass website at http://pierpass.org for more information.

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Transpacific Eastbound Carriers File PSS Effective July 15, and GRI Effective August 1, 2017

Carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes (U.S. Imports) updated their respective tariffs to include Peak Season Surcharges effective July 15, 2017 and new General Rate Increases (GRIs) effective August 1, 2017.

Here is a table of several carriers that have posted PSS amounts, both TSA members and non-members:

TSA EASTBOUND (Asia to USA)
PEAK SEASON SURCHARGE (PSS), Effective July 1, 2017
Carrier
in USD, per 40ft ctr
APL
withdrawn
Evergreen
postponed until July 15
Hyundai
postponed
NYK
postponed until July 15

TSA EASTBOUND (Asia to USA)
PEAK SEASON SURCHARGE (PSS), Effective July 15, 2017
Carrier
in USD, per 40ft ctr
APL
700
Evergreen
600
CMA CGM
600
COSCO
400
NYK
400
OOCL
400
Yang Ming
400

Several TSA carrier members have filed General Rate Increases (GRIs) in their respective FMC tariffs, effective August 1, 2017, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai, OOCL, and Yang Ming. K Line and NYK are no longer carrier members, but filed similar GRIs in their respective FMC tariffs. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. For some carriers, this August GRI will be the ninth GRI of 2017 for the East Asia/USA trade lane.

TSA EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI), Effective August 1, 2017
Carrier
in USD, per 40ft ctr
APL
1000
CMA CGM
1000
COSCO
800
Evergreen
800
Hapag Lloyd
700
Hyundai
1000
OOCL
800
K Line
1000
NYK
1000
Yang Ming
800

The TSA Carrier group web site at www.tsacarriers.org provides additional information; however, each carrier maintains its own tariffs and controls its own pricing.

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.

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