Home / Signals™ / Signals™ Headlines – November 4, 2009

Signals™ Headlines - November 4, 2009

Port of Oakland Bans Dirty Trucks Effective January 1, 2010

The Oakland Board of Port
has approved a ban on pre-1994 drayage trucks.  Beginning January 1, 2010, drayage trucks with
engine year models earlier than 1994 will be banned from the Port of Oakland.  All drayage trucks with engine year models between 1994 and 2003 must be
retrofitted with diesel particulate filters before they will be permitted to enter the Port of Oakland.  The Port’s
truck ban is one of the first steps outlined in its Maritime Comprehensive Truck Management Plan (CTMP) aimed at reducing trucking emissions in
and around the port.  Oakland’s CTMP calls for progressive truck bans to be put in place each year.  The Port plans
to ban all trucks that do not meet 2007 emission standards by January 1, 2014. 

Oakland’s CTMP is a program developed within the Port’s larger Maritime Air Quality Improvement Plan
.  The MAQIP is the Port’s master plan for reducing diesel pollution in and around the Port by 85
percent by 2020.   Port Board President Victor Uno said, “This is another step that clearly demonstrates our
commitment to a healthy community.  The strict truck ban will help us achieve our goal of reducing the health risk
from diesel pollution from seaport sources.”  For more information on the Port of Oakland’s programs visit www.portofoakland.com.

Docket No. 09-07: FMC Investigates World Chance Logistics (Hong Kong)

The Federal Maritime Commission (FMC)
recently announced an order of investigation into alleged Shipping Act violations committed by Hong Kong-based NVOCC
World Chance Logistics (Hong Kong), Ltd.  World Chance is a bonded and tariffed NVOCC registered
with the FMC under No. 018712.  According to FMC Docket No. 09-07 , the Commission has evidence that World Chance and its sole
share-holder, Johnny Yu, may have permitted unrelated shippers of pyrotechnics to have direct access to the rates in
World Chance service contracts.  The FMC is also investigating allegations that World Chance and Yu may have
provided rates and charges to pyrotechnics shippers which were not in accordance with the rates and charges
contained in World Chance’s tariff.   

According to Docket No. 09-07, in 2005, Yu incorporated Fireworks Logistics Association Ltd.
(FLA), a private limited company in Hong Kong.  FMC alleges FLA does not appear to have a separate legal identity
and lists World Chance’s Hong Kong address as its own and uses World Chance’s telephone and fax numbers and its
email account.  Based on information it has reviewed, FMC suspects that World Chance utilized FLA as an unfair
device or means of obtaining lower rates and to receive volume incentive payments not otherwise applicable.

The Shipping Act of 1984 prohibits any
person from knowingly and willfully obtaining or attempting to obtain ocean transportation of property at less than
the otherwise applicable rates or charges by means of false billing, false classification, false weighing, false
report of weight, false measurement, or any other unjust or unfair device or means.  The Shipping Act also prohibits
carriers from allowing any person to obtain transportation of property at less than applicable tariff or contract
rates and charges by means of false billing, false classification, or by any other unjust or unfair device or
means.  Furthermore, the Shipping Act also prohibits providing service in the liner trades not in accordance with
the rates and charges published in a tariff or filed in an NVOCC service arrangement.  A party found guilty of
Shipping Act violations will be subject to a penalty not
exceeding US$ 6000 for each violation.  Penalties for violations committed willfully and knowingly may not exceed
US$ 30,000 for each violation.  An initial decision in this investigation and hearing will be issued by an FMC
Administrative Law Judge by October 22, 2010.  The Commission will issue a final decision no later than February 22,

The United States Australasia Discussion Agreement Announces GRI, Maintains BAF

The United States Australasia Discussion Agreement (USADA), FMC Agreement No. 011117, whose member
lines provide direct service between the U.S. and Australia and New Zealand, announced plans to implement a general
rate increase (GRI).  Effective December 1, 2009, a GRI of US$ 150 per 20ft container and US$ 300 per 40ft container
will take effect for shipments in dry and reefer containers.  USADA’s Bunker Adjustment Factors (BAF) for December
2009 will remain at November 2009 levels of US$ 540 per 20ft container and US$ 1080 per 40ft/40ft hi-cube/45ft

USADA is a voluntary discussion and research forum of six container shipping lines serving the trade to and from
ports and inland points in the U.S. to destinations throughout Australia and New Zealand.  The USADA’s six member
carriers are CMA CGM, Hamburg Sud, Hapag-Lloyd, Marfret, Maersk Line and ANL Singapore
d/b/a U.S. Lines

 TSA Carriers Increase “Old Formula” BAF, Announce 2010
Revenue Recovery Plan

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223,
serving the East Asia/USA trade lane announced increases to Bunker Adjustment Factors (BAF) calculated using the
group’s old monthly BAF formula.  TSA also announced a new Vietnam Documentation Fee will take effect in

Effective December 1, 2009, Bunker Adjustment Factors (BAF) calculated using TSA’s old monthly BAF formula will
be increased to US$ 652 per 20ft container, US$ 815 per 40ft container, US$ 917 per 40ft hi-cube container, US$
1032 per 45ft container, and US$ 18 per WM (LCL).  These old formula BAF amounts are filed in the tariffs of most
of the TSA Carriers and apply on cargo moving under tariff rates or 2008 service contracts that remain in effect.
 TSA’s new Vietnam Documentation Fee of VN$ 400,000 (+VAT) goes into effect November 15, 2009.

TSA Carriers also released voluntary revenue recovery guidelines for upcoming 2010 contract negotiations.
 Recommendations for 2010 contract negotiations focus on a three part plan including a General Rate Increase
(GRI), Peak Season Surcharge (PSS) and full collection of floating bunker surcharges and other accessorial
charges. The GRI is expected to take effect May 1, 2010 at US$ 800 per 40-foot container (FEU) for local West
Coast and Group 4 Western coastal states cargo, and US$ 1,000 per FEU for intermodal and U.S. East and Gulf Coast
all-water cargo, with per formula increases for other equipment sizes.  A Peak Season Surcharge (PSS) of US$ 800
per 40-foot container (FEU) effective from August thru November 2010 is planned to address higher cargo handling,
equipment positioning and contingency planning costs during periods of peak cargo volume.

OOCL Chief Executive Officer Philip Chow explained that “these increases must be viewed in the
context of the equally sudden and significant volume and rate declines seen in early 2009.  In many cases these
recommended increases will only return carriers to where they were in late 2008 in terms of revenue per box.  The
2010-11 program reflects a determination, finally, that the race to the bottom on pricing in the transpacific must
stop.”  TSA reported that independent analysts estimate that the top 17 global container lines lost a
cumulative $6 billion in the first half of 2009 alone, with many forced to seek out fresh capital in financial
markets or government aid to stay afloat.  Other analysts estimate carriers will lose at least $20 billion for the
full year in 2009, due to reduced demand and severely depressed rates.

The TSA’s 14 carrier members are American President Lines, CSCL, CMA-CGM, COSCO Container Lines,
Evergreen Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, “K” 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.

SIGNALS™ is provided as a service to its customers
by Distribution-Publications, Inc. © 2006. All rights reserved.

All Issues of SIGNALS™ are available on the web at

Distribution-Publications, Inc.
180 Grand Avenue, Suite 430
Oakland, CA 94612-3750

Tel: 1-510-273-8933, or 1-800-204-3622, Fax: 1-510-273-8959,

E-mail: signals@dpiusa.com
Web: www.dpiusa.com

“Navigating the Regulatory Seas” is a service mark of Distribution-Publications, Inc.

Vol. 13 No. 11, November 4, 2009

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.

to top

Celebrating 45 Years of Navigating the Regulatory Seas

Need help with U.S. Federal Maritime Commission compliance?

Get in touch