December 5, 2005 Volume 9, Number 12 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 Releases Annual Reports for Fiscal Year 2005

The Federal Maritime Commission has released two annual reports on its performance and made these available at its web site: www.fmc.gov The Commission's Program Performance Report for Fiscal Year (FY) 2005 briefly compares and summarizes actual performance compared with projected levels of performance established in the agency's FY 2005 Revised Final Annual Performance Plan. In the other report, its Performance and Accountability Report for FY 2005, the Commission provides extensive detail on its program performance (108 pages). This report begins with a management discussion and analysis, and includes a complete auditors report and financial statements. According a memo prepared by the FMC Inspector General included in this report the key management challenges facing the FMC are: information technology, financial management and contract management.

Upgrades to the FMC's web site and its SERVCON system for electronic filing, storage and retrieval of service contract are the focus of specific remarks in these FMC reports. During fiscal year 2005 the FMC received 50,200 new service contracts and 224,160 contract amendments from ocean carriers. NVOCCs also began using the system to file NVOCC service arrangements (NSAs). The Commission made information security for SERVCON a top priority in 2005 and corrected weaknesses and deficiencies in the system. The FMC terminated the contract to operate SERVCON off-site, transferred management of the system to FMC staff, re-wrote systems security and password features. Disaster recovery testing for SERVCON is expected to be accomplished in early 2006, at which time all corrected actions recommended under the audit will be completed.

TSA Carriers Increase Bunker and Inland Fuel Surcharges

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 increases to Bunker Adjustment Factors (BAF), and Inland Fuel Charges, both effective January 1, 2006. Details of these charges are as follows:

Bunker (BAF): US$ 450/PC20, US$ 590/PC40, US$ 660/PC40 hi-cube, US$ 760/PC45 and US$ 13/WM.

Inland Fuel Charge (IFC): US$ 222 per container for mini-landbridge and inland point intermodal shipments moving via rail, US$ 64 per container for local and regional "Group 4" truck transport within California, Oregon and Washington, and for East Coast local store-door truck moves.

The Currency Adjustment Factor (CAF) for shipments from Japan will be reduced to 3% effective January 1, 2006.

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 and Yangming Marine. Additional information on surcharges applied by the TSA Carriers is available at http://www.tsacarriers.org.

WTSA Adjusts Currency Factors, Increases Bunker and Inland Fuel Surcharges

The Westbound Transpacific Stabilization Agreement (WTSA), whose member carriers serve the trade from the USA to East Asia, have amended their FMC tariffs to apply increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges, and amendments to Currency Adjustment Factors (CAF). These are effective January 1, 2006.

	Bunker(BAF)	Currency (CAF)	Inland Fuel Charge (IFC)
	US$ 472 per 20' container	Japan 47%	US$ 222 per container for rail, intermodal rail/truck
	US$ 590 per 40'/45' container	Korea 0%	US$ 64 per container for local/regional truck
	US$ 30 per WM	Taiwan 5%
		Singapore 10%

The 11 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, and Yang Ming Marine. For more information visit www.wtsacarriers.org.

Alameda Corridor Charge (ACC) at Los Angeles/Long Beach to Increase

The Alameda Corridor Charge will increase effective January 1, 2006. This charge is applied by most carriers serving the ports of Los Angeles and Long Beach to recover charges assessed by the Alameda Corridor Transportation Authority (ACTA) on all cargo moving via rail through these ports. To apply these charges, ocean carriers and NVOCCs must file it in their FMC Tariffs. Details are as follows:

	Alameda Corridor Charge (ACC) - Effective Jan 1, 2006
	$ 17.00 / PC20'
	$ 34.00 / PC40' Standard or High Cube
	$ 38.00 / PC45' and all other size containers/trailers

TACA Announces General Rate Increases for 2006, BAF Increases Expected Shortly

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 made FMC tariff filings required to implement the first phase of their previously announced General Rate Increases (GRI) for 2006. TACA has not yet increased its Bunker Adjustment Factors (BAF), but increases are expected to be announced shortly. TACA's Currency Adjustment Factor (CAF) remains at 6 percent through January 15, 2006.

GRI, effective January 1, 2006: Eastbound and Westbound, dry and temperature controlled containers, US$ 160/20', US$ 200/40'/45'. Additional GRIs are planned for implementation on April 1, July 1 and September 1, 2006.

Bunker (BAF), valid thru January 15, 2006, traffic to/from and via:

	Atlantic/Gulf Coast Ports	Pacific Coast Ports
	US$ 423 per 20ft container	US$ 635 per 20ft container
	US$ 846 per 40/45ft container	US$ 1270 per 40/45ft container
	US$ 42 per WM	US$ 64 per WM

TACA members are Atlantic Container Line, A.P. Moller-Maersk Sealand, 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.