U.S. Senate Confirms Three to Serve on Federal Maritime Commission
The United States Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners. Those confirmed are Rebecca F. Dye, Michael A. Khouri, and Daniel B. Maffei.
Dan Maffei, a Democrat, is a native of upstate New York and served two non-consecutive terms in the U.S. House of Representatives. His professional experience prior to being a Member of Congress includes working as a journalist and a Congressional aide. He replaces Richard Lidinsky, who has served on the Commission since 2009. Dan Maffei will serve a term that expires in 2017. He was nominated by President Barack Obama for this post in November 2015, but the U.S. Senate did not vote on confirmation of his appointment until June 29, 2016.
“As a former Congressman, Dan Maffei brings a unique perspective to Federal Maritime Commission. I am looking forward to officially welcoming him aboard and working with him to serve the interests of the American shipping public,” noted FMC Chairman Mario Cordero. “His predecessor, Richard A. Lidinsky, has had a long career in ports and shipping. I hope that he found his experience as a Commissioner and Chairman of the Commission to be rewarding and gratifying. We wish him all the best in his future endeavors.”
Rebecca Dye and Michael Khouri, both of whom currently serve as Commissioners, were re-nominated by the President earlier this year to serve in terms that will last until 2020 and 2021 respectively, and these re-nominations were also confirmed by the U.S. Senate on June 29, 2016.
Commissioner Dye has worked on maritime policy issues throughout her career, beginning with her service in the United States Coast Guard. She subsequently held senior positions in the Maritime Administration, and on the former House Committee on Merchant Marine and Fisheries, as well as the House Committee on Transportation & Infrastructure. She is currently leading the FMC’s Supply Chain Innovation Initiative.
Commissioner Khouri has broad experience in the maritime industry including service on marine vessels from deck crew to Pilot and Captain; and, shore side assignments in law, administration, marine operations, and general management. In 2010 and 2011, Commissioner Khouri headed up the FMC’s Fact Finding Investigation No. 27 into complaints or inquiries from individual shippers of household goods and personal property in U.S.-foreign ocean borne trades.
“I applaud the action taken by the Senate yesterday. Each of these individuals is not only committed to public service, they also take the core mission of the Commission seriously,” said FMC Chairman Mario Cordero. “The shipping industry is going through a period of significant change that dictates our close attention. As a body, we are going to have as much work to do as ever before, and I am grateful we have a full complement of Commissioners.” The full house headed by Chairman Cordero is now composed of Commissioners Dye, Khouri, and Maffei, along with Commissioner William P. Doyle.
Transpacific Eastbound Carriers Implement July GRIs, File GRIs for August 1, Postpone PSS
Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, implemented General Rate Increases (GRIs), effective July 1, 2016, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hanjin, Hapag Lloyd, Hyundai Merchant Marine, K Line, Maersk, and Yang Ming.
American President Lines (APL), CMA CGM, COSCO, Hanjin, Hapag Lloyd, Hyundai Merchant Marine, K Line, Maersk, and Yang Ming implemented GRI amounts of USD 600 per forty-foot equivalent unit (FEU). GRI amounts for other container sizes are as per formula; see exceptions below.
APL implemented the GRIs for dry cargo, and did not apply the GRIs to cargo from Japan. For reefer cargo, APL postponed the GRIs to effective July 15. For cargo from the West Asia, APL implemented GRIs of USD 200 per FEU for dry cargo, and withdrew for reefer cargo. Hanjin cancelled the GRIs for cargo from Japan and Sub Continent origins (India, Pakistan, Bangladesh, and Colombo).
Hapag Lloyd will apply a second GRI for July, effective July 17, 2016 for USD 600 per FEU.
Evergreen reduced the GRIs from USD 600 to USD 500 per FEU for USWC/G4 cargo, to USD 350 per FEU for cargo delivered to other inland via USWC (except G4 States), and to USD 400 per FEU for all other cargo. Evergreen cancelled the GRIs for cargo from India, Sri Lanka, Pakistan, and Bangladesh.
OOCL cancelled the GRIs for July.
Several TSA carrier members have filed new GRIs, effective August 1, 2016, for USD 1000 per FEU; with GRI amounts for all other container sizes as per formula. However, Hapag Lloyd and OOCL filed USD 600 per FEU. These will be the eighth GRI of the year for the East Asia/USA trade lane.
Several TSA carrier members postponed the effective date of the Peak Season Surcharges (PSS) from effective June 15 or July 1 to effective July 15, 2016, including APL, CMA CGM, COSCO, Evergreen, Hanjin, Hyundai Merchant, OOCL, and Yang Ming. The PSS amount will be USD 400 per FEU, except for Evergreen, which will be USD 600 per FEU. PSS amounts for other container sizes are as per formula.
The TSA’s fifteen member carriers 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, and this website does not provide details of GRIs – those are filed in individual carrier tariffs and service contracts. The TSA Carrier group only issues recommended guidelines to its member carriers. Website addresses for all carriers are listed on www.fmc.gov. All details of GRI, PSS and other tariff surcharges reviewed here in SIGNALS is based on carrier tariffs.