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Signals™ Headlines - May 6, 2003

President Bush Nominates Paul Anderson as FMC Commissioner: Replaces Delmond Won

President George W. Bush has nominated A.
Paul Anderson
of Florida to be a Commissioner of the Federal Maritime Commission, for the remainder of a
five-year term expiring June 30, 2007. When this nomination is approved by the US Senate Mr. Anderson will replace
Delmond Won, who has served as a Commissioner since August 1994. This is the third appointment to the FMC made by
President Bush; the FMC Chairman, Steven Blust of Tampa, FL was confirmed by the US Senate on August 1, 2002, and
Commissioner Rebecca Dye of North Carolina was confirmed in November 2002.

Paul Anderson currently serves as Vice President for Government Relations at JM
Family Enterprises, Inc.
, of Deerfield Beach, Florida. JM Family Enterprises is US$7.8 billion privately held
corporation. Its principal businesses focuses are vehicle distribution and processing, finance and warranty
services, and insurance activities. Its subsidiary, Southeast Toyota Distributors (SET) is the world’s largest
independent distributor of Toyota vehicles.

Mr. Anderson also serves as Trustee of Broward (Florida)
Community College
, a
post he was appointed to by Florida Governor Jeb Bush in 1999. This appointment expires on May 31, 2003. Previously,
Mr. Anderson
served as Director of Corporate Affairs and Assistant to the President of Hvide Marine, in Fort Lauderdale, Florida.
Hvide Marine
changed its name to Seabulk International, Inc. in 2001; it
marine support and transportation services, serving primarily the energy and chemical industries.

Peak Season Surcharges Effective 01Jun2003: 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 are effective June 1, 2003 through September 30, 2003, however, the expiration date could
be extended. Many Carriers extended their Peak Season Surcharges in 2002 thru November or December. The PSS amounts
vary, but the most commonly filed amounts are as follows. The 2003 PSS combined with the recently filed General Rate
Increases (GRI) represents an increase in total ocean freight of US$ 1000 per 40’ container.


Effective: 01Jun2003 thru 31Oct2003

From: North East Asia & South East Asia

To: US Ports and Points

US$225 per 20′ Container

US$300 per 40′ Container

US$340 per 40’HQ Container

US$380 per 45′ Container

LCL Rates: US$6 per CBM or US$12 per weight ton

In order to comply with FMC regulations new surcharges must be filed in Carrier 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

Free Seminar on FMC Regulations: May 14th at Port of Long Beach Offices

The Federal Maritime Commission has announced it will conduct a two-hour seminar at the Port of Long Beach
offices at
10:00am on Wednesday, May 14, 2003. This is another in the series of informational seminars conducted by FMC’s
Representatives. The seminars provide information about the FMC’s functions and services, and instruction
the regulatory obligations of providers and users of ocean liner shipping services it regulates. There is no
for these seminars, but registration for the Long Beach Seminar is required by May 7, 2003. A seminar at New York
be conducted later this year; details will be posted at www.fmc.gov as
For the Long Beach seminar, contact Oliver Clark on tel: 310-514-4905 or email: oliverc@fmc.gov

Public Hearing on Proposed New Passenger Vessel Regulations Scheduled: Docket 02-15

The FMC Secretary has announced a public hearing will be held on June 11, 2003 to review proposed new regulations
passenger vessel operators serving US ports. These regulations were proposed in FMC Docket 02-15 in October 2002. In
Docket 02-15 the FMC proposes to amend its rules regarding the establishment of passenger vessel financial
responsibility under Sections 2 (Casualty) and 3 (Performance) of Public Law 89-777. The amendments would:
the current ceiling on required performance coverage; adjust the amount of coverage required by providing for
consideration of the obligations of credit card issuers; provide for the use of Alternative Dispute Resolution
including the Commission’s ADR program, in resolving passenger performance claims; revise the application form;
make a number of technical adjustments to the Performance and Casualty rules.

Early in 2002 the Commission admitted its bonding and insurance requirements for passenger vessel operators
the USA were not meeting the needs of the cruising public. Since September 2000 seven cruise operators declared
Chapter 11 bankruptcy or ceased operating. Recently, Regal Cruises, Inc. ceased operations quite suddenly. Many
passengers contact the FMC to complain of problems in obtaining refunds of deposits and prepayments from cruise
These inquiries are handled by the Office of Consumer Complaints: tel: 202-523-5807, e-mail: complaints@fmc.gov

In August 2002 the FMC amended its rules on passenger vessel financial responsibility for nonperformance of
transportation, by eliminating the availability of self-insurance, limiting guarantees to those Protection and
Indemnity Associations approved by the Commission, and discontinuing the existing sliding scale formula for
determining the amount of coverage required. These rule changes were proposed in Docket 02-07. Information received by the
Commission during this rule making proceeding prompted the changes proposed in Docket 02-15.

The hearing on June 11, 2003 will be held in the Commission’s Main Hearing Room, Room 100, 800 North Capitol
N.W., Washington, D.C., at a time to be announced. Parties wishing to participate in this hearing must notify the
Office of the Secretary by close-of-business May 28, 2003, of the name, street address, e-mail address, telephone
number, and the name of company or employer, if any. Parties wishing to participate should also provide a short,
statement describing their position on the proposed rule. Submissions should be addressed to the Office of the
Secretary: by e-mail to secretary@fmc.gov or by facsimile to 202-523-0014.
Commission will announce the time of the hearing and the order of presentation and time allotment during the week
June 2, 2003.

FMC To Meet in Closed Session May 6, 2003: On-Going TSA Investigation Will be Reviewed

The Federal Maritime Commissioners will meet in a session closed to the public on May 6, 2003 to review Fact Finding Investigation No. 25
Practices of
Transpacific Stabilization Agreement (TSA) Members Covering the 2002-2003 Service Contract Season. This
is led by FMC Commissioner Joseph E. Brennan. The Commission has collected detailed information from each of the
member carriers in response to Section 15 Orders. These required the TSA members to submit detailed information on
negotiation of service contracts for the 2002 – 2003 season, and the implementation of general rate increases
and peak season surcharges (PSS). Commissioner Brennan also held hearings in late 2002 to take testimony under
and receive documents in evidence. This investigation was prompted by Petition P1-02 filed in May 2002 by the
Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) and the International Association of NVOCCs,
(IANVOCC). The NCBFAA and the IANVOCC claimed that TSA members violated the Shipping Acts by engaging in a
practice of discrimination against NVOCCs.

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