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Signals™ Headlines - May 1, 2006

Docket 06-05: Verucci Motorcycles Complaint Against Senator International Ocean


Verucci Motorcycles, LLC
has filed a complaint with the Federal Maritime Commission
March 31, 2006 against Senator International Ocean, LLC. Vercucci is seeking reparations
of $3,841,825 from Senator for shipment delays which caused financial losses. Verucci is
a manufacturer and wholesale distributor of motorcycles and scooters with headquarters based
in Miami, Florida. Senator International is a licensed international freight forwarder,
customs broker, and NVOCC, also based in Miami, Florida. According to Vercucci’s complaint,
in September of 2005 it agreed to use Senator’s freight forwarding and customs brokerage
services for importation of scooters and motorcycles from China to the USA and Puerto Rico.
Vercucci claims that Senator failed to fulfill its transportation obligations, leading to
delays and financial losses. Verucci also alleges that Senator violated
Section 10 of
the Shipping Act
by misdeclaring cargo; not fulfilling agreements; failing to carry out
transportation obligations resulting in cargo delays and financial losses for shippers;
unfair or unjust discriminatory practices; and unreasonable refusal to deal or negotiate.
Furthermore, Verucci states Senator violated 46
C.F.R.
by withholding information,not exercising due diligence and
negligently providing fraudulent information in shipping
documents.

Verucci requests that the Commission require Senator to answer the charges, cease and
desist from violations, put in place lawful and reasonable practices, as well as pay
requested reparations or other such amount deemed proper by the Commission. This proceeding
has been assigned to the FMC’s Office of Administrative Law Judges. The initial decision
will be issued by April 2, 2007, with the final decision of the Commission issued no l
ater than July 31, 2007.

WTSA Lines Increase Bunker and Inland Fuel Surcharges Again

The Westbound Transpacific Stabilization Agreement (WTSA), whose member carriers
serve the US export trade from the USA to East Asia, recently announced increases
to Bunker Adjustment Factors (BAF) and Inland Fuel Surcharges (IFC) to take effect
on May 1 and again on June 1, 2006. These are as follows:

Bunker (BAF) May 1 – May 31, 2006 Bunker (BAF) June 1 – June 30, 2006 US$ 472 per 20′ container US$ 508 per 20′ container US$ 590 per 40’/45′ container US$ 635 per 40’/45′ container US$ 30 per WM US$ 32 per WM

Inland Fuel Charges (IFC) will also increase; effective May 1 to May 31, 2006 the IFC will
cost US$ 179 per container for rail, intermodal rail/truck and US$ 52 per container for
local/regional truck. Effective June 1 thru June 30 the IFC will cost US$ 206 per container
for rail, intermodal rail/truck and US$ 60 per container for local/regional truck.

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
information
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 November 30, 2006 at the
following levels:

Peak Season Surcharge 2006 (PSS) Effective: June 15, 2006 thru November 30, 2006 From: Asia Origin ports / To: USA Destinations FCL Cargo: $300/20′, $400/40′, $450/40HC’ LCL Cargo: $ 8/revenue ton (W/M

In order to comply with FMC regulations, new or increased surcharges must be filed
in ocean carrier and NVOCC tariffs 30 days prior to initial effective dates. Any extension
of the PSS beyond its published expiry date must also be filed 30 days in advance. Once
filed in a tariff, the PSS applies to all applicable rates, except those noted:
NOT SUBJECT TO PSS. Rules and surcharges of more than 600 tariffs are accessible
at www.dpiusa.com.

TSA Carriers Increase Bunker and Inland Fuel Charges

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), effective
May 1 and again on June 1, 2006. Details of the BAF are as follows:

Effective May 1 thru May 31, 2006 Effective June 1 thru June 30, 2006 US$ 445 per 20ft container US$ 475 per 20ft container US$ 590 per 40ft container US$ 635 per 40ft container US$ 665 per 40ft hi-cube container US$ 715 per 40ft hi-cube container US$ 745 per 45ft container US$ 805 per 45ft container US$ 13 per WM US$ 14 per WM

For the month of May 2006, the Inland Fuel Charge (IFC) will be US$ 179 per
container for
mini-land bridge and inland point intermodal shipments moving via rail, and US$ 52 per
container for local and regional truck transport to “Group 4” points within California,
Oregon and Washington, and for East Coast local store-door truck moves. TSA also announced
a further increase to IFC effective June 1, 2006 of US$ 206 per container for mini-land
bridge and inland point intermodal shipments moving via rail, and US$ 60 per container
for local and regional truck transport within to “Group 4” points in California, Oregon
and Washington, 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, NYK Line, OOCL and Yang Ming Marine. Visit http://www.tsacarriers.org
for additional information.

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,
NYK Line, OOCL
and Yang Ming Marine. Additional information on surcharges
applied by the TSA carriers
is available at http://www.tsacarriers.org and in the
FMC tariffs of member carriers.

TACA Conference Maintains Current Surcharges

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
it will maintain current surcharges thru June 15, 2006 without change. The Currency
Adjustment
Factor (CAF)
will remain at 6 percent. Bunker Adjustment Factors (BAF)
will remain at the
following levels: to/from Atlantic/Gulf Coast Ports, US$ 423/20ft, US$ 846/40/45ft and
US$ 42/WM; to/from Pacific Coast Ports, US$ 635/20ft, US$ 1270/40/45ft and US$ 64/WM.
TACA surcharges for the period of June 16 to July 15, 2006 will be announced by May
15.
TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co.,
NYK Line
and OOCL. Revisions to surcharges for transportation services
are published in
TACA’s relevant FMC tariffs, and are announced on its website: www.tacaconf.com.


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Vol. 10, No. 5, May 1, 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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