FMC Schedules Hearings on Petition for Fair Port Practices |
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The Federal Maritime Commission (FMC) will hold public hearings in January 16 and 17, 2018 in Washington, DC to receive testimony from witnesses regarding the petition filed by the Coalition for Fair Port Practices in December 2016. Petition P4-16 requested the FMC initiate a rulemaking proceeding for the purpose of adopting a new rule that will interpret the Shipping Act and clarify what constitutes “just and reasonable rules and practices” with respect to the assessment of demurrage, detention, and per diem charges by ocean common carriers and marine terminal operators when ports are congested or otherwise inaccessible. Those interested in presenting testimony at the hearings must send a request to the Commission no later than Friday, December 8, 2017. Requesters should include the name of the potential witness, the company or employer they will represent, their contact information, and a summary of intended testimony. The Commission may also reach out to other potential witnesses. All witnesses will testify by invitation only. Acting FMC Chairman Michael A. Khouri stated, "I look forward to the opportunity to explore with the witnesses the issues raised by the Petition. One question is whether the Commission can craft a general rule of universal nationwide applicability on detention, demurrage, and per diem provisions given the wide variety of commercial terms and conditions that are incorporated into VOCC service contracts and in MTO tariffs nationwide to address various events and circumstances. A further consideration to be addressed is the various and disparate operating protocols used at the 250 plus marine terminal operators currently registered at the Commission." The Commission voted at its September 20, 2017 meeting to hold these hearings after receiving staff’s analysis of the 115 public comments received in this matter earlier this year, and after receiving a request from Senator John Thune, R-ND, chairman of the U.S. Senate Commerce Committee on September 5, 2017 urging the FMC to “prioritize this issue and determine whether any further action is needed.” The hearings on Petition P4-16 will be open to the public and will be webcast; a link to livestream the session will be posted on www.fmc.gov closer to the event date. For more detail on comments received by the FMC on this petition, please see our SIGNALS issue of March 3, 2017. |
Changes to NSA and NRA Regulations Proposed by FMC |
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The Federal Maritime Commission (FMC) has issued a Notice of Proposed Rulemaking (NPRM) under FMC Docket No. 17-10 to propose changes to its regulations governing Non-Vessel-Operating Common Carrier (NVOCC) Service Arrangements (NSAs) and NVOCC Negotiated Rate Arrangements (NRAs). Through this NPRM, the Commission seeks feedback on three key proposals: ending the requirement for NSAs to be filed with the Commission; expanding the ability of NVOCCs and shippers to amend NRAs; and, finally, allowing the act of tendering cargo to be considered acceptance of a rate under the terms of an NRA. The NPRM includes a specific request for comments addressing whether the Commission should expand the NRA rules to allow inclusion of non-rate economic terms. The closing date for comments is January 29, 2018. This proposed rulemaking was prompted by a recommendation from FMC’s Regulatory Reform Task Force. Elements of the changes being proposed were originally brought to the Commission via Petition P2-15, filed by the National Customs Brokers & Forwarders Association of America (NCBFAA) in 2015. The NPRM requests non-confidential comments be submitted via email to secretary@fmc.gov with the subject “Docket 17-10, Comments on Proposed NSA/NRA Regulations.” Additional instruction on how to file confidential comments is provided in Docket 17-10. January 29, 2018 is the deadline for comments, and it is not the date for implementation of changes to existing FMC regulations. A separate final rulemaking will be required for an implementation date. |
William P. Doyle Resigns FMC Post |
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Commissioner William P. Doyle of the U.S. Federal Maritime Commission has tendered his resignation, effective January 3, 2018. In a written statement, Commission Doyle said “it has been an honor and a privilege to continue serving in the Trump Administration. I especially thank President Barack Obama for twice nominating and appointing me as a Commissioner.” He highlighted his participation in negotiating terms and conditions into carrier alliance agreements, and labor negotiations, and his work as Co-chair of the U.S.-China Bilateral Maritime Consultations. He did not reveal his plans for 2018. Commissioner Doyle was initially appointed to the FMC by President Obama in 2012. On January 1, 2013, the U.S. Senate confirmed his nomination. He was nominated to a five year term by President Obama on January 29, 2015, and unanimously confirmed by the Senate on March 23, 2015 The Shipping Act authorizes five Commissioners, with one designated as Chairman. However, the departure of Commissioner Doyle will leave the FMC with just three Commissioners: Acting Chairman Michael A. Khouri, Commissioner Rebecca F. Dye and Commissioner Daniel B. Maffei. |
Transpacific Eastbound Carriers Adjust Surcharges, File GRIs Effective December and January |
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Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective January 1 through March 31, 2018, and filed General Rate Increases (GRIs) effective in December 2017 and January 2018. Fuel surcharge details per 40’ container are as follows.
Some TSA carrier members updated their respective tariffs to include new General Rate Increases (GRIs) effective December 15, 2017, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai, Maersk, OOCL, and Yang Ming. K Line is no longer carrier member, but filed similar GRIs in its FMC tariff. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. For some carriers, the December 15th GRIs will be the sixteenth GRI of 2017 for the East Asia/USA trade lane.
Note 1: Maersk announced GRIs of USD 600 per 40ft for dry cargo to Pacific West Coast, and USD 1200 per 40ft for dry cargo to Atlantic East Coast. TSA carrier members updated their respective tariffs to include new General Rate Increases (GRIs) effective January 1, 2018, including APL, COSCO, Evergreen, Hapag Lloyd, and Yang Ming. K Line and NYK are no longer carrier member, 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. The January 1st GRIs will be the first GRI of 2018 for the East Asia/USA trade lane.
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. General rate increases are filed only in carrier tariffs. 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. |
TSA Westbound Carriers Update Surcharges Effective January 1, 2018 and File GRIs |
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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 (U.S. Exports), have adjusted their fuel surcharges for the January to March 2018 quarter, and filed General Rate Increases (GRIs) effective in January 1, 2018. Here is a table of carriers that have posted BAF amounts, both TSA members and non-members:
A few carriers have updated their tariffs to provide General Rate Increases (GRIs) effective January 1, 2018. See details below:
Note 1: COSCO filed GRIs of USD 40/50 per 20ft/40ft, respectively, for dry cargo from Long Beach, Los Angeles, Oakland; USD 80/100 per 20ft/40ft, respectively, from U.S. East Coast and Gulf Coast Ports, Seattle, Tacoma; and GRIs of USD 120/150 per 20ft/40ft, respectively, for all other U.S. origins. Note 2: Evergreen filed GRIs of USD 80/100/100 per 20ft/40ft/40HC dry container, respectively. For reefer commodities, except apple and citrus, GRIs will be USD 300 per 40HC from USWC, and USD 150 per 40HC from USEC. Note 3: NYK filed GRIs of USD 120/150/150/150 per 20ft/40ft/40HC/45ft dry container, respectively. For reefer containers, GRIs will be USD 270/300 per 20ft/40HC from or via US West Coast, and USD 135/150 per 20ft/40HC from or via US East Coast. The TSA Westbound Carrier group web site at www.tsa-westbound.org provides additional information; however, each carrier maintains its own tariffs and controls its own pricing. General rate increases are filed only in carrier tariffs. |