NRA Services for NVOCCs
A Negotiated Rate Arrangement or NRA is a:
– written and binding agreement
– between an NVOCC and their shipper customer
for ocean freight transportation.
Since 2011, Non-Vessel Operating Common Carriers (NVOCCs) may use NRAs to comply with the U.S. Federal Maritime Commission’s tariff regulations.
NVOCCs that use NRAs are exempt from filing NRA rates in their FMC tariffs, however they must continue to maintain their FMC tariff rules. For more information about DPI’s NRA services, click here.
No, NVOCCs do not have to use NRAs. NVOCCs may document their selling rates in Negotiated Rate Arrangements (NRAs), NVOCC Service Arrangements (NSAs), or tariff rates.
DPI’s expert staff are happy to discuss each compliance method with DPI Members and recommend the more cost-effective and efficient method for your organization. For more information about DPI’s NRA services, click here or contact us.
FMC regulations require specific formatting and timing for NRAs. Most organizations’ rate quotes do not meet these formatting and timing requirements and require some modification.
DPI recommends that organizations use a Negotiated Rate Arrangement (NRA) template and put in place record-keeping protocols to comply with FMC regulations. The NRA may be offered in lieu of a rate quote or accompanied by a rate quote.
DPI offers an online NRA Management System and FMC-compliant NRA templates to Members. Should your organization have their own template we are happy to review it for FMC compliance.
NRAs are generally considered best for short-term or single shipment rates because surcharges are locked-in upon receipt of the first shipment.
Unlike NSAs or tariff rates, surcharges contained in NRAs do not float with your tariff rules. This means that surcharges in effect in your tariff rules at the time the first shipment is received will apply to all shipments moving under the NRA. FMC regulations require an NRA Amendment to reflect updated surcharges, even if the surcharges are filed in your tariff rules.
Many NVOCCs that use NRAs simply include surcharge amounts in the NRA itself and note those that will be invoiced to the shipper customer as pass-through charges. Pass-through charges are allowed under FMC regulations for NRAs, but not for tariff rates. So long as the NRA or NVOCC’s tariff rules includes the names of the charges to be passed-through, NVOCCs may pass on charges invoiced from the Ocean Carrier (e.g., detention & demurrage) or Terminal Operator (e.g., Pier Pass) to their shipper customer with no markup.
For more information about DPI’s NRA services, click here.
Yes, NRAs must be agreed to by shipper customers either by
- emailing, or
- booking a shipment after receipt of the NRA, so long as the NRA contains the FMC’s required booking notice.
Since 1975, DPI has helped thousands of NVOCCs comply with U.S. Federal Maritime Commission (FMC) regulations.
Our expert staff is ready to assist NVOCCs seeking to utilize Negotiated Rate Arrangements (NRAs). We offer members the following NRA-specific services:
– NRA Training,
– FMC Compliance Auditing for NRAs, and
Yes, FMC regulations require that NVOCCs maintain an FMC rules tariff even if they utilize NRAs. Use of NRAs exempts NVOCCs from tariff rate publication only.
To learn more about DPI’s NRA Management System, watch our quick video here.