September 2, 2005 Volume 9, Number 9 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 Proposes NSA Amendment: NVOCC to NVOCC Service Arrangements |
The Federal Maritime Commission announced a Proposed Rulemaking to amend the definition of "NSA shipper" in the NVOCC Service Agreement (NSA) rules to include NVOCCs. If this Proposed Rulemaking is finalized individual NVOCCs, and shippers' associations with NVOCC members, will be allowed to act as shippers in NSAs. Currently the NSA rules as published in CFR 46 Part 531 define an NSA shipper as "a cargo owner, the person for whose account the ocean transportation is provided, the person to whom delivery is to be made, or a shippers' association. The term does not include NVOCCs or shippers' associations whose membership includes NVOCCs." Earlier this year in its initial NSA Rulemaking the FMC specifically denied NVOCCs the right to enter into NSAs with other NVOCCs due to concerns that a court might grant NVOCCs acting under filed NSAs immunity from antitrust laws. However, in June 2005 the U.S. Court of Appeal for the Fourth Circuit found that two NVOCCs colluding to fix prices did not have antitrust law immunity. After this ruling the Commission decided to go forward with the now Proposed Rulemaking.
If finalized the new definition will read: "NSA shipper means a cargo owner, the person for whose account the ocean transportation is provided, the person to whom delivery is to be made, a shippers' association, or an ocean transportation intermediary, as defined in section 3(17)(B) of the Act, that accepts responsibility for payment of all applicable charges under the NSA." This Proposed Rulemaking, Docket 05-05, was announced August 3, 2005. Comments were due August 23, 2005. The Commission is expected to announce a Final Rulemaking soon.
The Commission also issued a Notice of Inquiry (NOI), seeking comment from the public on further changes to NSA rules that could allow multiple unaffiliated NVOCCs to jointly offer NSAs. The NOI, Docket No. 05-06, issued August 30, contains 15 questions concerning the impact and practicality of multiple NVOCC NSAs. Comments are due by October 6, 2005. Remarking on the proposals in an FMC press release Chairman Steven R. Blust said, "I am pleased that the Commission has reviewed NSAs and has decided to move toward possibly expanding the opportunities associated with the arrangements."
WTSA Adjusts Bunker Adjustment, Currency Factor, Adds Inland Fuel Charge |
The Westbound Transpacific Stabilization Agreement (WTSA), whose member carriers serve the trade from the USA to East Asia, recently announced the following amendments to Bunker Adjustment Factors (BAF), Currency Adjustment Factors (CAF) and added a new Inland Fuel Charge
Effective October 1 thru Dec. 31, 2005
Bunker(BAF) | Currency (CAF) | Inland Fuel Charge (IFC) | |
US$ 364 per 20' container | Japan 50% | US$ 158 per 20ft container | |
US$ 455 per 40'/45' container | Korea 0% | US$ 46 per container for local/regional truck | |
US$ 24 per WM | Taiwan 5% | ||
Singapore 9% |
The 12 members 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, P&O Nedlloyd, and Yang Ming Marine. Revisions to surcharges for transportation services are published in the FMC tariffs of the WTSA member carriers, and shown on its website: www.wtsacarriers.org.
Federal Maritime Commission Website Updated |
The Federal Maritime Commission launched an updated website August 18, 2005 with new design and current information. The updated website, www.fmc.gov, is easily navigated with information organized by areas of interest and by regulated entity. Also, now available on the FMC website is an Agreements Library with direct access to effective carrier agreements, including recent amendments. The library is searchable by country, carrier, type of agreement and name. The Commission's NVOCC Service Agreement and service contract filing system, SERVCON, has not been updated. SERVCON is accessible through the Commission's website or at https://servcon.fmc.gov.
TACA Implements October GRI, Increases BAF |
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, have implemented a previously announced General Rate Increase (GRI) to all tariff rates effective October 1, 2005. TACA also increased their Bunker Adjustment Factor (BAF). TACA's Currency Adjustment Factor (CAF) will remain at 6 percent through October 16, 2005.
GRI, effective October 1, 2005: Eastbound dry and temperature controlled containers, US$ 160/20', US$ 200/40'/45'. Westbound dry and temperature controlled containers, US$ 240/20', US$ 300/40'/45'.
Bunker (BAF), effective Sept. 16 thru Nov. 15, 2005
Traffic to/from and via:
Atlantic/Gulf Coast Ports | Pacific Coast Ports | |
US$ 354 per 20ft container | US$ 531 per 20ft container | |
US$ 708 per 40'/45' container | US$ 1062 per 40/45ft container | |
US$ 35 per WM | US$ 53 per WM |
TACA also further suspended their Port of Long Beach and Los Angeles Congestion Surcharge until at least Sept. 30, 2005. The surcharge of US$ 200/20' and US$ 400/40'/45' may or may not be reinstated October 1 pending TACA announcement. TACA members are Atlantic Container Line, A.P. Moller-Maersk Sealand, Hapag-Lloyd Container Line, Mediterranean Shipping Co., Nippon Yusen Kaisha (NYK) Line, Orient Overseas Container Line, and P&O Nedlloyd Limited. Revisions to surcharges for transportation services are published in TACA's relevant FMC tariffs and on its website: www.tacaconf.com.
TSA Carriers File Increased Bunker Adjustment Factor and Inland Fuel Charge |
The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223, serving the East Asia/USA trade lane have filed increased Bunker Adjustment Factor (BAF), and Inland Fuel Charge, both effective October 1 thru Dec. 31, 2005.
Bunker (BAF): US$ 345/20', US$ 455/40', US$ 510/40' hi-cube, US$ 580/45' and US$ 10/WM. This represents approximately an 11 percent increase over BAF filed for the months of July through September 2005.
Inland Fuel Charge (IFC): US$ 158 per container for minilandbridge and inland point intermodal shipments, US$ 46 per container for local and regional "Group 4" truck transport within California, Oregon and Washington, and for East Coast local store-door truck moves. This increases the IFC that was initially effective August 15, 2005. TSA member carriers are American President Lines, CMA-CGM, 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, P&O Nedlloyd and Yangming Marine. Additional information on surcharges applied by the TSA Carriers is available at http://www.tsacarriers.org.
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Vol. 9, No. 9, September 2, 2005