NCBFAA Applauds FMC Proposal to Allow Retroactive NVOCC Agreement Filing
A recent Federal Maritime Commission proposal to allow a grace period of 30 days after an agreement is reached before non-vessel operating common carriers (NVOCCs) have to file amendments to NVOCC service arrangements (NSAs) would provide “much needed flexibility,” the…
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National Customs Brokers & Forwarders Association of America said in comments to the FMC (here). Currently, NVOCCs have to closely monitor vessel rate and surcharge changes so they can immediately file amendments that incorporate any changes, it said. The FMC proposed the change on Aug. 22 (see 1608220032). However, the NCBFAA “continues to believe that the NSA essential terms publication and filing requirements do not serve a legitimate purpose,” it said. “So, while allowing for the retroactive filing of amendments is certainly a step in the right direction; complete elimination of this requirement for NSAs is warranted," it said. The trade association also called on FMC to allow "NRAs to include non-rate economic terms, including but not limited [to] credit and payment terms, rate methodology, surcharges, minimum quantities, forum selection and arbitration clauses," it said. "Allowing for incorporation of these terms would enable NVOCCs to negotiate and memorialize a complete transaction in a convenient, rational and transparent manner."