Federal Maritime Commission Appoints Peter J. King Director of Administration
The Federal Maritime Commission has appointed Peter J. King as Director of Administration, and a
member of its Senior Executive Service. Mr. King, who has been with the FMC since 1987, officially became
director April 15, 2007. As director he will oversee the FMC’s Office of Financial
Management, Office of Human
Resources, Office of
Information Technology, and Office of Management Services.
Mr. King first joined the Commission as a Trial Attorney in the Bureau of Enforcement (BOE). Since then he
has served as Deputy Director in the BOE and also with the Commission’s Bureau of Certification and Licensing.
Before coming to the FMC he was an associate attorney with the law firm of Hoppel Mayer & Coleman in
Washington D.C., specializing in transportation, vessel financing and customs law. Mr. King is a graduate of
the Catholic University of America and the National Law Center, George Washington University. He has also
served as an elected Councilman to the City of College Park, Maryland, a member of the Metropolitan Washington
Council of Governments, and served as a voting member of the National Capital Region Transportation Planning
FMC Docket 07-03: Armstrong World Industries Alleges Shipping Act Violations
The Federal Maritime Commission issued Docket 07-03 after receiving
a complaint from Armstrong World Industries Inc. (AWI) alleging Shipping Act violations by Expeditors
International of Washington, Inc. (EIW). EIW is an FMC licensed Non-Vessel-Operating Common Carrier
based in Seattle, Washington. Docket 07-03 is an official FMC Notice of Complaint and Assignment. It was
issued April 10, 2007 in response to allegations made by AWI that during the 2005 peak season EIW significantly
overcharged AWI for transportation services, in violation of multiple sections of the Shipping Act. AWI is a
designer and manufacturer of floors based in Lancaster, Pennsylvania. AWI has asked the FMC to find EIW in violation
of the Act and pay AWI US$ 216,765 in charges, interest, attorneys’ fees, as well as any other fees the FMC
may find appropriate. This docket was assigned to the Office of Administrative Law
Judges. An Initial Decision in this matter will be issued by April 9, 2008, and a Final Decision is due on
August 7, 2008.
FMC Docket 07-02: Anderson International Transport
The Federal Maritime Commission will investigate Texas-based Anderson International
Transport for alleged Shipping Act
violations. The FMC issued a Docket 07-02, an Order of Investigation and Hearing, on March 22, 2007 based on evidence
indicating Anderson knowingly and willfully provided transportation services as a NVOCC without the required OTI
license, bond and tariff. Anderson is believed to have accepted at least fifteen ocean export shipments
between January 2005 and October 2006 in direct violation of the Shipping Act. The Shipping Act provides for
penalties of up to US$ 30,000 for each violation knowingly and willfully committed, and not more than US$ 6,000 for
other violations. Each shipment is considered as a separate violation. An Initial Decision will be
issued by March 1, 2008 and a Final Decision no later than July 21, 2008.
TACA: Increases Currency Adjustment, Maintains Bunker Adjustment Factors
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 increase the
Currency Adjustment Factor (CAF) and maintain current Bunker Adjustment Factors (BAF) for the period of May 16 thru
June 15, 2007. Current CAF of 8 percent will be increased to 10 percent. Current BAF of US$ 395 per 20ft
container, US$ 790 per 40ft/45ft container and US$ 40/WM for shipments to/from Atlantic/Gulf Coast Ports; and US$
593 per 20ft container, US$ 1186 per 40ft/45ft container and US$ 59/WM for shipments to/from Pacific Coast Ports
will remain effective until at least June 15, 2007. TACA members are Atlantic Container Line, Maersk
Line, Mediterranean Shipping Co., NYK Line and OOCL. Surcharges are published in
TACA’s FMC tariffs, and are shown on its website: www.tacaconf.com
TSA Adds New Member, Increases Bunker Adjustment and Inland Fuel Charges
The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223,
serving the East Asia/USA trade lane announced
the addition of new member, Mediterranean Shipping
Co. (MSC), as well as increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC) for the month
of June. MSC is to become an official member sometime this month, after the required 45-day notice is filed
with the Federal Maritime Commission. MSC, a Geneva, Switzerland based container line, is the
world’s second largest container line, with over 300 vessels, and a combined vessel capacity of 1.06 million
20ft containers. MSC is also a member of the Trans-Atlantic Conference Agreement (TACA).
With the addition of MSC and CMA-CGM, who rejoined the group earlier this year, the TSA now has 13 members.
Bunker Adjustment Factors (BAF) will be assessed by the TSA Carriers from June 1 thru June 30, 2007 at the
following levels: US$ 475 per 20ft container, US$ 590 per 40ft container, US$ 665 per 40ft hi-cube container, US$
745 per 45ft container and US$ 13/WM. Inland Fuel Charges (IFC) effective June 1 thru 30, 2007 will be
increased to US$ 222 per container for minilandbridge (MLB) and inland point intermodal shipments moving via rail,
and to US$ 64 per container local and regional truck transport to “Group 4” points in California, Oregon
and Washington, and for East Coast local store-door truck moves.
Effective May 1, 2007 the TSA Carriers implemented General Rate Increases (GRI) in their FMC tariffs of US$ 650 per
40ft container for inland point and minilandbridge shipments, US$ 500 per 40ft container for cargo moving via East
and Gulf Coast all-water service, and reverse inland point intermodal (RIPI) moves, and US$ 300 per 40ft container
for shipments to West Coast ports and Group 4 points in California, Oregon and Washington. This GRI applies to
both tariff and service contract rates; however, TSA members may negotiate varying GRI amounts for individual
service contracts, or make exceptions to some tariff rates, or delay the GRI effective date. A Peak Season
Surcharge (PSS) of US$ 400 per 40ft container will be effective June 15, 2007 and it likely to remain in effect thru
Feb 29, 2008. TSA member carriers are American President Lines, CMA-CGM, COSCO Container Lines Ltd.,
Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” Line,
Mediterranean Shipping Co., Mitsui O.S.K. Lines, NYK Line, OOCL and Yang Ming Marine.
Visit www.tsacarriers.org for more
WTSA Increases Rates, Surcharges and Adds Vietnam Terminal Handling Charges
The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member
lines serve the US export trades from the USA to East Asia, increased rates for chilled vegetables and wastepaper as of May 1, 2007. WTSA has
also announced increases to Inland Fuel Surcharges (IFC) and Bunker Adjustment Factors (BAF), as well as a new
Vietnam Destination Terminal Handling Charge which will be effective June 1, 2007.
As of May 1, 2007 WTSA implemented increases for freight rates for chilled “vegetables, all kinds” of
US$ 200 per 40ft container for all origins and destinations. WTSA also implemented the first wave of a two
part increase to wastepaper rates as of May 1, 2007. A wastepaper rate increase of US$ 100 per 40ft container
for inland point and minilandbridge intermodal shipments went into effective May 1. All-water port-to-port
rates will be increased sometime after May 1. The second wave of increases, scheduled for September 1, 2007,
will also be US$ 100 per 40ft container, however, this increases will apply to intermodal rates only. In its
decision to increases wastepaper rates WTSA noted the extremely low rates for wastepaper, a commodity that generally
makes up 20 percent of trade market volume.
BAF effective June 1, 2007 thru June 30, 2007 will increase to US$ 472 per 20ft container, US$ 590 per 40ft/45ft
container, and US$ 30/WM. IFC for June will be increased to US$ 222 per container for rail and intermodal
rail/truck shipments, and US$ 64 per container for local/regional truck shipments. Vietnam Destination
Terminal Handling Charge to go into effect June 1 will be US$ 65 per 20ft container, US$ 98 per 40/40HC ft
container, and US$ 140 per 45ft container. 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 info visit www.wtsacarriers.org.
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Vol. 11 No. 5, May 3, 2007
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