The Federal Maritime Commission (FMC) has concluded its review of a proposed amendment to the Los Angeles and Long Beach Port Infrastructure and Environmental Programs Cooperative Working Agreement, FMC Agreement No. 201219-001. The Commission's unanimous decision grants the parties request for expedited review and permits the amendment to become effective on Friday, February 27, 2015. This cooperative working agreement allows the Port of Long Beach (POLB) and the Port of Los Angeles to discuss and agree on projects and programs that address transportation infrastructure needs and reduce pollution caused by port-related activities. The newly approved amendment clarifies the purpose of the agreement to more accurately reflect the current goals of the Ports and to allow for the discussion of projects and programs with multiple stakeholders in and around the port complex. Addressing port congestion is a key focus of this agreement amendment. The ports plan to establish initiatives to increase terminal productivity, facilitate chassis availability and usage, and improve drayage truck turn times. The Commission's decision was based on a determination that this agreement is not likely at this time, by a reduction in competition, to produce an unreasonable increase in transportation cost, or an unreasonable reduction in transportation service under section 6(g) of the Shipping Act. FMC Chairman Mario Cordero commented favorably on this agreement and noted, "a major responsibility of the Commission is to review and oversee competitive agreements. I am optimistic that the ports’ amended agreement will help address their serious congestion issues."

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Carrier members of the United States/Australasia Discussion Agreement, FMC Agreement No. 011117, whose member carriers serve the USA/Australia and New Zealand trade lanes, filed General Rate Increases (GRIs), effective March 1, 2015. Members Hapag Lloyd, CMA CGM, and Hamburg Sud updated their FMC tariffs to reflect GRIs in the amount of USD 600 per FEU, with all other sizes per usual formula. The agreement members are Hamburg Sud, CMA-CGM, Compagnie Maritime Marfret S.A. (Marfret), Pacific International Lines (PTE) Ltd., Hapag-Lloyd AG, and ANL Singapore Pte Ltd. Maersk Line is no longer a member of this discussion agreement, but filed a similar GRI in its FMC tariff, effective March 1, 2015, for USD 600 per FEU, with other container sizes per its usual formula.

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Several members of the Transpacific Stabilization Agreement Westbound (TSA), FMC Agreement No. 011223, whose member carriers serve the USA/East Asia trade lanes, have adjusted their bunker surcharges (BAF) for the April to June 2015 quarter. CAF on shipments to Taiwan will remain 7%, and to Singapore 22%, thru June 30, 2015. TSA Westbound Bunker Adjustment Factors (BAF) for the Apr-Jun 2015 quarter, which include the low-sulfur fuel component, are USD 672 per 20' dry container, USD 840 per 40'/45' dry container, and USD 1077 per 40'/45' reefer container for shipments from and via U.S. Atlantic/Gulf Coast Ports. BAF for shipments from or via U.S. Pacific Coast Ports will be USD 385 per 20' dry container, USD 481 per 40'/45' dry container, and USD 637 per 40'/45' reefer container. The Inland Fuel Charges (IFC) for the Apr-Jun 2015 quarter will decrease to USD 253 per container for rail and intermodal rail/truck shipments and USD 73 per container for local/regional truck shipments. For more information, visit www.tsa-westbound.org.

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Several carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223 serving the East Asia/USA trade lanes, have adjusted bunker surcharges (BAF) effective April 1, 2015. The inland fuel charges will decrease to USD 253 per forty-foot equivalent unit (FEU). The Currency Adjustment Factor (CAF) on shipments from Japan will decrease from 7% to 0%. BAF effective April 1 are as follows:

BAF amounts shown with the asterisk (*) include the low-sulfur fuel component. For IPI/MLB destinations, the BAF includes both low-sulfur fuel component and the Inland Fuel Surcharge (IFC) component (**). BAF for other container sizes is as per formula. These amounts are effective thru June 30, 2015.

Several of the group's member carriers have filed two General Rate Increases (GRIs). One GRI will take effect on March 9, 2015 for USD 600 per FEU, and a second will be effective April 9, 2015 for USD 600 per FEU, with other container sizes to increase as per a standard formula, though formulas for 20' container size vary by carrier. Carrier members who filed both GRIs include American President Lines (APL), CMA CGM, Hanjin, Hapag Lloyd, Hyundai, K Line, and OOCL. Evergreen, Maersk, and Yang Ming updated their FMC tariffs to reflect GRIs effective March 9, 2015. APL will not apply the GRI to cargo from Japan. OOCL will apply a GRI of USD 300 per FEU, effective March 15, 2015, for origins India, Pakistan, Sri Lanka, and Bangladesh. These are the third and fourth GRIs of the year for this trade lane.

Several TSA member carriers, who had updated their FMC tariffs in early-January 2015 to reflect General Rate Increases (GRIs), implemented these GRIs effective February 9, 2015. This includes APL, CMA CGM, Hanjin, Hapag Lloyd, Hyundai, K Line, and Yang Ming, who each implemented GRIs in the amount of USD 600 per FEU for cargo moving to all USA destinations, with a few exceptions. COSCO filed and implemented a GRI for USD 400 per FEU, effective February 5, 2015. Maersk filed and implemented a GRI for USD 800 per FEU, effective February 14, 2015. APL reduced the GRI amount to USD 400 per FEU for cargo destined to U.S. Pacific Coast Ports, IPI, and MLB; APL did not apply the GRI to cargo from Japan. Evergreen reduced the GRI amount to USD 400 per FEU for cargo delivered to California; to USD 100 per FEU for cargo delivered to Washington or Oregon states; to USD 200 per FEU for cargo delivered to other inland points via the U.S. Pacific Coast Ports, except Group 4 locations; and to USD 500 per FEU for cargo delivered to or via the U.S. Atlantic Coast Ports. APL and Evergreen applied a GRI of USD 300 per FEU for origins in India, Pakistan, Sri Lanka, and Bangladesh, effective February 15, 2015. Hyundai postponed the effective date of the GRI until February 15 for cargo from the India Sub-continent and until March 8 for cargo from Japan. Hanjin did not apply the GRI to origins Japan, Bangladesh, Pakistan, and Sri Lanka. OOCL cancelled its February GRI.

The TSA's fifteen carrier members are: American President Lines, China Shipping Container Lines, CMA CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd AG, Hyundai Merchant Marine, "K" Line, Maersk 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; however, each carrier maintains its own tariffs and controls its own pricing. The TSA Carrier group only issues recommended guidelines to its member carriers. Website addresses for all carriers are listed on www.fmc.gov.

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