FMC Commissioner Says Final Rule on NVOCC Tariff Filing Exemption Overdue, Etc.

The following are highlights of his remarks, which he said reflect his personal views and are not offered as the official position of the FMC:

Comments on Proposed Rule Indicate No One is Consulting Filed NVO Tariffs

In May 2010 FMC issued a proposed rule to amend 46 CFR Part 520 and create a new Part 532 to make available to licensed non-vessel-operating common carriers (NVOCCs) a new, voluntary exemption from the requirement to publish rate tariffs, if they agree to Negotiated Rate Arrangements (NRAs) with their shippers.

An open public hearing was held in May and comments on the proposed rule were due by June 4, 2010.

Khouri stated that the sequence of written comments and the public testimony made it clear that no one is consulting filed NVO tariffs as a part of negotiations for future rates or for any other purpose. The only parties that argued to maintain filed tariffs were the tariff publishing houses. Of particular importance was the fact that not one single shipper filed a comment, not for the February Commission meeting, the May public hearing, or the June open comment period. In addition, no interested parties expressed any concerns or reservations concerning elimination of tariff filing for all NVOs -- that is, for foreign based, FMC bonded and registered NVOs and U.S. based, FMC bonded and licensed NVOs.

Final Rule on NVOCC Tariff Filing Exemption is Past Due

He added that it is past time to act and provide this regulatory relief by issuing the final rule. Individual NVOs spend as much as $200,000 each, per year, to maintain their tariff filing program -- and there are over 4,400 NVOs within the FMC’s jurisdiction who file rate tariffs.

Study of EU’s Elimination of Shipping Conferences Should be out in Fall

FMC is continuing its study of the European Union’s repeal of their repeal of their “liner conference block exemption.” That study is scheduled to be ready in the fall of this year.

(The EU repealed its antitrust program in 2008. FMC began a study to analyze the effects of that action by looking at various data sources for a period of two years prior and then two years after with 2008 as a center “sorting out” year. The four areas of inquiry are: (1) pricing -- both overall rates and component parts; (2) exporter competitiveness -- that is, EU versus U.S.; (3) rate volatility; and (4) effectiveness of surviving consortia and vessel sharing agreements in the EU trades.)

Recommendations from Investigation on Int’l Household Goods Movers

Khouri also discussed the continuing problems with international household goods movers. The issues surrounding container movement of personal and household goods are parallel if not identical to issues found in the domestic moving industry.

FMC ordered a fact finding investigation, No. 27, into this issue and designated him as the fact finding officer. Preliminary recommendations were approved during the FMC’s December meeting and further recommendations should be ready by mid-February.

The various areas of abuse by both unlicensed and licensed Ocean Transportation Intermediaries create a serious consumer protection problem that will require multiple tools and time to correct.

(See ITT's Online Archives or 01/05/11 news, 11010518, for BP summary of an FMC statement which included a "look ahead" at 2011.

See ITT’s Online Archives or 05/07/10 news, 10050749, for BP summary of details of FMC’s proposed rule for NRA exemption from NVOCC rate tariffs publication.

See ITT’s Online Archives or 11/02/10 news, 10110204, for BP summary of FMC seeking comments on concerning the effects on the U.S. trades of the EU repeal of their “liner conference block exemption.”

(See ITT's Online Archives or 12/13/10 news, 10121315, for BP summary of FMC's interim report on problems with international household goods movers.)