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Signals™ Headlines - June 2, 2006

FMC Order of Investigation and Hearing on Possible Ship Act Violations (Docket 06-06)

The FMC has opened a formal investigation into possible violations of the Shipping Act by
three NVOCCs who are alleged to have handled cargo for unlicensed ocean transportation
intermediaries (OTIs). The NVOCCs named in Docket 06-06 are EuroUSA Shipping, Inc. of
Jessup, Maryland, Tober Group, Inc. of Brooklyn, New York and Container Innovations,
. of Kearny, New Jersey. According to
Docket 06-06
, EuroUSA Shipping and its
predecessor, Euroamerica Group, Inc., knowingly and willfully accepted cargo from
or transported cargo for several OTIs that did not have FMC tariffs and bonds.
Tober Group and Container Innovations are alleged to have done likewise. Tober
Group is also cited in Docket 06-06 for failure to file accurate rates and surcharges
in its tariff, in violation of Section
which states that “no common carrier
may provide service in the liner trade that is not in accordance with the rates and
charges contained in a published tariff.”

Section 10(b)(11) of the Shipping Act prohibits any common carrier from knowingly
and willfully accepting cargo from or transporting cargo for the account of an OTI
that does not have an FMC tariff and bond. The FMC maintains a listing of all
bonded and tariffed NVOCCs at www.fmc.gov.
Carriers can also require their NVOCC clients to provide them with copies of tariff title
pages and bonds in order to verify their FMC status. The Shipping Act also authorizes the FMC
to impose penalties of up to US$ 30,000 for each violation knowingly and
willfully committed. This investigation and hearings are on going; the
initial decision by the FMC’s Administrative Law Judge is expected by May 11, 2007.

WTSA Lines Increase Bunker, CAF and Inland Fuel Surcharges

The Westbound Transpacific Stabilization Agreement (WTSA), whose member lines
serve the US export trade from the USA to East Asia, announced increases to Bunker
Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) for the third month in a
row. Currency Adjustment Factors (CAF) for some destinations will also increase on
July 1. Details of the BAF are as follows:

Bunker (BAF) May 1 – May 31, 2006 Effective July 1 thru 31, 2006 US$ 508 per 20′ container US$ 544 per 20′ container US$ 635 per 40’/45′ container US$ 680 per 40’/45′ container US$ 32 per WM US$ 34 per WM

Inland Fuel Charges (IFC) will increase effective July 1, 2006 from US$ 206 to US$ 227
per container for rail and intermodal rail/truck shipments, and from US$ 60 to US$ 66
per container for local/regional truck shipments. The Currency Adjustment Factors
will increase on July 1, 2006 for shipments to Japan from 42% to 43%, to Taiwan
from 4% to 5%, and to Singapore from 10% to 11%. The CAF does not apply to any other
destinations served by WTSA.

The 11 member carriers of WTSA are American President Lines, China Shipping Container Lines,
COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line,
Hyundai Merchant Marine, “K” Line, NYK Line, OOCL
and Yang Ming Marine. For more
visit www.wtsacarriers.org.

Peak Season Surcharges: Asia/USA Trade Lane Tariffs

Many ocean carriers and NVOCCs serving the Asia/USA trade lane have recently
filed Peak Season Surcharges (PSS) in their FMC tariffs. These will be effective
June 15, 2006 thru Nov 30, 2006. Most carriers have filed the following PSS levels
in their FMC tariffs; however, some have filed higher PSS levels for all water service
to the US East Coast.

Peak Season Surcharge 2006 (PSS) USA/Asia Trade Lane Effective: June 15, 2006 thru November 30, 2006, except as noted From: Asia Origin ports / To: USA Destinations FCL Cargo: $300/20′, $400/40′, $450/40HC’ – except PSS for all water service to US East Coast may be higher LCL Cargo: $ 8/revenue ton (W/M) – except some carriers have filed $8/M and $16/W, or otherwise

In order to comply with FMC regulations, new or increased surcharge rules must
be filed in ocean carrier and NVOCC tariffs 30 days prior to their effective dates.
Any extension of a PSS rule beyond its published expiry date or an increase must
also be filed 30 days in advance.

TSA Carriers Increase Bunker, CAF and Inland Fuel Surcharge

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement
No. 011223, serving the East Asia/USA trade lane have amended their FMC tariffs to
provide for increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges
(IFC), for the third month in a row. Details of the BAF are as follows:

Effective June 1 thru June 30, 2006 Effective July 1 thru July 31, 2006 US$ 475 per 20ft container US$ 510 per 20ft container US$ 635 per 40ft container US$ 680 per 40ft container US$ 715 per 40ft hi-cube container US$ 765 per 40ft hi-cube container US$ 805 per 45ft container US$ 860 per 45ft container US$ 14 per WM US$ 15 per WM

The Currency Adjustment Factor (CAF) for shipments from Japan will increase from
3% to 4% effective July 1. The Inland Fuel Charge (IFC) for the month of June 2006
will be US$ 206 per container for mini-land bridge (MLB) and inland point intermodal
(IPI) shipments moving via rail, and US$ 60 per container for local and regional
truck transport to “Group 4” points in California, Oregon and Washington, and for
East Coast local store-door truck moves. TSA also announced a further increase
to its IFC effective July 1, 2006 of US$ 227 per container for MLB and IPI moving
via rail, and US$ 66 per container to “Group 4” points, and for East Coast local
store-door truck moves. TSA member carriers are American President Lines, COSCO
Container Lines Ltd., Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd
Container Line, Hyundai Merchant Marine, “K” Line, Mitsui O.S.K. Lines,
and Yang Ming Marine. Visit
for additional information.

TACA Conference Increases Bunker Surcharge and Panama Canal Fee

The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the
trade between the USA and North Europe, United Kingdom and Ireland, Scandinavia
and Baltic Ports, announced an increase to its bunker surcharge effective
June 16, 2006, and increase to its Panama Canal Transit Fee effective June 10,
2006. The Currency Adjustment Factor (CAF) will remain at 6 percent.
Bunker Adjustment Factors (BAF) will increase to the following levels:
to/from Atlantic/Gulf Coast Ports, US$ 467/20ft, US$ 933/40/45ft and US$
47/WM; to/from Pacific Coast Ports, US$ 700/20ft, US$ 1400/40/45ft and US$
70/WM. The Panama Canal Transit Fee will increase from US$ 165 to US$ 192
per container. TACA members are Atlantic Container Line, Maersk Line,
]Mediterranean Shipping Co., NYK Line
and OOCL. Revisions to surcharges are
published in TACA’s relevant FMC tariffs, and are shown at its website:

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Vol. 10, No. 6, June 2, 2006

The information contained herein is obtained
from reliable sources.
It is subject to change at any time, however, depending on changes in
laws and regulations. While we continually attempt to monitor this
information, we do not guarantee its accuracy and are not responsible
for any damages suffered by any party in reliance on it.
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