June 3, 2005 Volume 9, Number 6 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.

FMC Commissioner Blust Honors Maritime Day at Joint Luncheon

Federal Maritime Commissioner Chairman Steven R. Blust honored Maritime Day, May 19, by offering his appreciation and thanks to all those in the maritime industry who help support and defend our nation. Blust made his remarks at a joint luncheon held by The Propeller Club of Washington, D.C. and The Kings Point Club of Washington, D.C. Chairman Blust, a graduate of the US Merchant Marine Academy, spoke at length of the important role played by merchant mariners in World War II. Illustrating his point with a "few sea stories" of brave and daring merchant mariners of World War II, who put their lives in harms way to help ultimately win the war.

Fast-forwarding to today, Blust remarked that merchant mariners have played an important role in the war in Iraq and are still working hard to keep American troops supplied all over the world. He noted that since Sept 2001, 101,000 containers and 6.5 million tons of break bulk cargo have been transported for the Surface Deployment and Distribution Command to the mid east region. The vast majority of which was transported by U.S. merchant mariners aboard U.S.-flag ships.

Transpacific Eastbound Carriers File Peak Season Surcharges (PSS)

In recent weeks carriers serving the transpacific eastbound trades from Asia to the USA have begun preparations for the 2005 peak season. For most carriers these preparations have included filing Peak Season Surcharges (PSS) in their FMC tariffs. Generally speaking, carriers have filed the PSS for 2005 of US$ 300/400/450/510 per 20'/40'/40'high cube/45' container. PSS levels for LCL cargo vary. The PSS will apply in addition to ocean rates and all other surcharges, effective from June 15 thru November 30, 2005.

TSA & WTSA Carriers Increase Bunker Surcharges

Rising bunker fuel costs have prompted increases to bunker surcharges on the Trans-Pacific trades. Both the Transpacific Stabilization Agreement (TSA) and the Westbound Transpacific Stabilization Agreement (WTSA) have announced increases for the third quarter, effective July 1 thru Sept 30, 2005:

The following carriers are members of both TSA and WTSA: American President Lines, COSCO Container Lines, Evergreen Marine Corp., Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, K Line, Mitsui O.S.K. Lines, NYK Line, OOCL, P&O Nedlloyd and Yangming Marine. CMA-CGM is a member of the TSA. China Shipping Container Lines is a member of the WTSA. Additional info on surcharges applied by the TSA Carriers can be viewed at http://www.tsacarriers.org/. WTSA members provide info at http://www.wtsacarriers.org.

FMC Updates Controlled Carrier List

The Federal Maritime Commission has updated its listing of ocean common carriers operating in the US-foreign trades that are owned or controlled by foreign governments. These controlled carriers are subject to special regulatory oversight by the Commission under Section 9 of the Shipping Act. These regulations ensure that controlled carriers do not engage in unreasonable below-market pricing practices which could disrupt trade or harm privately-owned shipping companies.

Since the last publication of this list on June 3, 2003 the FMC has added two newly classified controlled carriers, New American President Lines, Ltd and APL Co., Pte. (APL) and New China Shipping Container Lines (Hong Kong) Company, Ltd. (CSHK) On Sept 27, 2004, APL was classified as a carrier controlled by the government of Singapore due to the purchase by Singapore's state owned investment company, Temasek Holding, of APL's parent company, Neptune Orient Lines. Also, in Sept 2004 APL filed for an exemption to the rule requiring controlled carriers to give 30 days notice for filings of new or reduced rates. FMC granted the exemption in Oct 2004. FMC previously granted this same exemption to controlled carriers COSCO Container Lines Company, Ltd., China Shipping Container Lines Co., Ltd., and Sinotrans Container Lines Co., Ltd. in April 2004. China Shipping (Hong Kong), Ltd., a new entrant in the U.S.-foreign trades, was also classified as a carrier controlled by the Government of the People's Republic of China in Nov 2004. Neither APL nor CSHK raised objections to the FMC classification. The updated list of controlled carriers as of May 5, 2005 is as follows:

United States South Europe Conference Announces GRIs, Extends BAF/CAF

The carrier members of the United States South Europe Conference (USSEC) FMC Agreement No. 202-011587, serving the trades between US Atlantic/Gulf Ports and South European ports of Italy, France, Spain, Portugal, Greece, Cyprus and Crete have recently announced General Rate Increases. The USSEC also extended its current Bunker Adjustment Factor of US$260/20ft, US$520/40' and 22 percent for cargo rated on a per unit, per weight ton, or WM basis. The Currency Adjustment Factor charged by USSEC members of 11 percent will also remain unchanged through July 31. Due to FMC regulations these increases must be filed in FMC tariffs at least 30 days before their effective dates.

USSEC member carriers are A.P.Moller-Maersk Sealand, Hapag Lloyd Container Line GmbH and P&O Nedlloyd Ltd. Additional information on surcharges applied by the USSEC carriers is available at http://www.ussec.com/press.htm.