14 October 2004

Date set for FMC discussion of NVO petitions

The following message is from the 13 October 2004 edition of “American Shipper”.

The U.S. Federal Maritime Commission Tuesday [12 October] decided to hold a public meeting in Washington, scheduled for Oct. 27, to discuss various petitions and comments made by non-vessel-operating common carriers requesting tariff exemptions to allow them to have confidential service contracts with shippers. The agency may make its long-awaited decision on this issue at the meeting.

Bryant Vanbrakle, secretary of the FMC, said the agency has received more than 20 comments since the "joint supplemental comments requesting expedited adoption of a conditional exemption from tariff publication" was submitted Aug. 2 by the National Industrial Transportation League, NVOs and intermediaries.

The August "joint supplemental comments" on the service contract exemption urged the FMC to act without delay because the agency already has studied the issue for more than a year. After the comments were filed, the FMC gave the industry until Sept. 30 to give its opinion on the issue. On Sept. 30, ocean carriers represented by the Washington-based World Shipping Council wrote to the FMC they do not object to the proposed request for such contractual rights submitted by the shippers and NVOs.

The NVO industry has expressed frustration about the time taken by the FMC to rule on its petition.

However, Vanbrakle said the FMC will hold the Oct. 27 meeting on the NVO requests "less than 30 days" after the period for comments was closed….

The Aug. 2 action was made by the NIT League, the Transportation Intermediaries Association, UPS, FedEx Trade Networks, BAX Global, BDP International and C.H. Robinson Worldwide. The coalition urged the FMC to allow NVOs to enter into confidential contracts with their customers,
putting them on an equal footing with ocean carriers.

During the part of the Oct. 27 FMC not open to the public, the agency will discuss a petition made by APL requesting an exemption from tariff restrictions applicable to government-controlled carriers.