July 03 , 2006 Volume 10, Number 7 Oakland, California

SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index.

Chairman Blust Announces Intention to Leave the Federal Maritime Commission

After almost four years of service, the Federal Maritime Commission’s Chairman, Steven R. Blust, intends to leave the agency.  Blust took over as FMC Chairman on August 12, 2002 from long-time FMC Chairman Harold J. Creel, Jr.  He plans to leave his post once his replacement is nominated by President Bush, and confirmed by the US Senate.

Prior to joining the Commission, Blust was President/CEO of Tampa Bay International Terminals, Inc.  He also previously held executive positions with Lykes Brothers Steamship Co., Inc., and management positions with the Jacksonville Port Authority and Crowley Delta Lines.  His 30 plus years of industry experience prior to joining the FMC included ocean carrier liner trade management, marine terminal management, public port administration, tariff and service contract use and publication, and liner operations.  During his tenure at Tampa Bay Terminals Blust was an active leader of trade associations, including the Tampa Bay Cargo Association and the Tampa Chapter of the Propeller Club.

Blust is a 1971 graduate of the U.S. Merchant Marine Academy at Kings Point, NY, and received a Master of Business Administration degree from Tulane University, in New Orleans, in 1979.  The United States Merchant Marine Academy Alumni Association awarded Mr. Blust their Meritorious Alumni Service Award in 1991, and the Propeller Club of the United States named him Maritime Person of the Year, Port of Tampa, in 2002.
Blust’s extensive industry experience made him a unique FMC chairman.  As chairman he emphasized enhanced communications between the Commission and the shipping industry.  Periodically, he invited members of the industry to hold briefings for FMC staff to keep the Commission abreast of happenings and concerns in the shiping industry.  His efforts have left their mark on the FMC.  Under his watch, industry-proposed regulations were given serious consideration.  Non-vessel-operating-common-carrier service arrangements (NSAs), a regulation originally proposed by shipping industry leaders, went into place January 2005.  A major organizational realignment of the FMC also took place under Blust’s charge in an effort to maximize the agency’s effectiveness.  Blust also worked to help improve US trade relations with China.  He made a trip to China in 2003 to foster cooperation, and continued the work started by former Chairman Hal Creel in reviewing China’s shipping regulation environment.  After receiving positive comments from the industry regarding improvements in China, the FMC closed its long-standing investigation of China’s shipping practices, FMC Docket 98-15, in April 2005. 

Blust’s term officially ends on June 30, 2006.  As his replacement has yet to be named by President Bush and approved by the US Senate, Blust will likely remain in office for a few more months.  After leaving the FMC Chairman Blust says he plans to continue his career in the area of maritime trade.

Commissioner Rebecca Dye commented, “Chairman Blust has implemented a number of much needed reforms in the Commission’s regulations.  These important reforms have increased competition in international ocean transportation while reducing the Commission’s regulatory burden on the important players in this vital industry.”

WTSA Lines Maintain Inland Fuel Surcharges, Reduces Bunker

The Westbound Transpacific Stabilization Agreement (WTSA), whose member lines serve the US export trade from the USA to East Asia, announced reductions to Bunker Adjustment Factors (BAF) for the fist time in three months.  Inland Fuel Surcharges (IFC) will remain unchanged through the month of August.  Details of the BAF are as follows:

	Effective July 1 - July 31, 2006	Effective August 1 - August 31, 2006
	US$ 544 per 20' container	US$ 472 per 20' container
	US$ 680 per 40'/45' container	US$ 590 per 40'/45' container
	US$ 34 per WM	US$ 30 per WM

Current Inland Fuel Charges (IFC) of US$ 227 per container for rail and intermodal rail/truck shipments, and US$ 66 per container for local/regional truck shipments will remain unchanged for the month of August.  The 11 member carriers of WTSA are American President Lines, China Shipping Container Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, "K" Line, NYK Line, OOCL and Yang Ming Marine.  For more information, visit www.wtsacarriers.org.

TSA Carriers Reduce Bunker, Maintain Current Inland Fuel Surcharge

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223, serving the East Asia/USA trade lane, have amended their FMC tariffs to provide for reductions to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC), for the first time in three months.  Details of the BAF are as follows:

	Effective July 1 thru July 31, 2006	Effective August 1 thru August 31, 2006
	US$ 510 per 20ft container	US$ 445 per 20ft container
	US$ 680 per 40ft container	US$ 590 per 40ft container
	US$ 765 per 40ft hi-cube container	US$ 665 per 40ft hi-cube container
	US$ 860 per 45ft container	US$ 745 per 45ft container
	US$ 15 per WM	US$ 13 per WM

Current Inland Fuel Charges (IFC) of US$ 227 per container for mini-land bridge (MLB) and inland point intermodal (IPI) shipments moving via rail, and US$ 66 per container for local and regional truck transport to "Group 4" points in California, Oregon and Washington, and for East Coast local store-door truck moves will remain unchanged for the month of August.  TSA member carriers are American President Lines, COSCO Container Lines Ltd., Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, "K" Line, Mitsui O.S.K. Lines, NYK Line, OOCL and Yang Ming Marine.  Visit http://www.tsacarriers.org for additional information.

TACA Conference Maintains Bunker Surcharge, Increases Currency Adjustment Factor

The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the trade between the USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, announced there will be no changes made to current bunker surcharges.  However, the Currency Adjustment Factor (CAF) will increase to 8 percent for the period of July 16 to at least August 15, 2006.  Bunker Adjustment Factors (BAF) for July 16 thru August 15, 2006 are as follows: to/from Atlantic/Gulf Coast Ports, US$ 467/20ft, US$ 933/40/45ft and US$ 47/WM; to/from Pacific Coast Ports, US$ 700/20ft, US$ 1400/40/45ft and US$ 70/WM.  TACA members are Atlantic Container Line, Maersk Line, Mediterranean Shipping Co., NYK Line and OOCL.  Revisions to surcharges are published in TACA's relevant FMC tariffs, and are shown at its website: www.tacaconf.com.