April 3, 2006 Volume 10, Number 4 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.

PierPASS Traffic Mitigation Fee (TMF) To Increase at Los Angeles and Long Beach

Effective April 24, 2006 the Traffic Mitigation Fee (TMF) at the Ports of Long Angeles and Long Beach will increase from US$ 40 to US$ 50 for 20' containers, and from US$ 80 to US$ 100 for 40', 0'HC and 45' containers. The TMF is collected by PierPASS on full container shipments moving through the ports at peak-hours, Monday through Friday from 3 a.m. to 6 p.m. PierPASS was created by terminal operators in July 2005 to reduce traffic congestion and improve air quality in and around the Ports of Los Angeles and Long Beach by creating night and weekend "OffPeak" shifts for container delivery and pick-up. NVOCCs that collect the TMF for full containers and/or LCL must include the charge in their FMC tariffs.

According to PierPASS, the increase to the TMF is required to offset increased operating costs, which are in part due to the success of the program. PierPASS reported in January that between 30 and 35 percent of container cargo at the ports is now moving during OffPeak hours. When OffPeak began in July 2005 a goal of only 15 to 20 percent was set for the first year of operation. For more information regarding the OffPeak program, PierPASS and the increased TMF visit http://www.PierPASS.org/.

FMC Budget 2007: Chairman Blust Appears Before U.S. House of Representatives

On March 1, 2006 FMC Chairman Steven R. Blust made his annual appearance before the U.S. House Subcommittee on Coast Guard and Maritime Transportation to review the proposed FMC budget for fiscal year 2007. Commissioner Blust appeared along with Bruce A. Dombrowski, the Director of the Office of Administration and Rebecca Fenneman, an attorney in the Office of the General Counsel. President Bush's fiscal year 2007 budget proposal appropriates $21,474,000 for the FMC. This will provide the Commission with an increase of 5.8 percent, or $1,180,000 over the appropriation for the current fiscal year 2006, which ends Sep. 30, 2006. The proposed 2007 budget includes funds to maintain current staff and fund all current programs. It also includes funds to hire two new employees: a Commissioner's Counsel and an attorney for the Office of Consumer Affairs and Dispute Resolution Services.

Chairman Blust emphasized the Commission's current activities. Blust outlined the progress of NVOCC Service Arrangements (NSAs). He noted the Commission is reviewing the option of allowing joint NSAs offered by multiple NVOCCs, and is currently evaluating comments on potential new regulations. The Chairman also highlighted the successful conclusion of the Commission's investigation into shipping restriction, requirements and practices of The People's Republic of China. The investigation, opened August 12, 1998, was concluded April 21, 2005 one year after a U.S.-China bilateral maritime agreement went into effect. The maritime agreement addressed many of the concerns raised by the Commission and was deemed successfully implemented with the conclusion of the FMC's investigation. The Chairman pointed out that U.S. vessel operator, Matson, has recently opened two new offices in China and that their first vessel in the Ningbo-Shanghai-Long Beach express service called in Ningbo on February 21, 2006.

Chairman Blust also outlined the actions the Commission recently took against unlicensed household goods forwarders, and reviewed the agency's public outreach programs, including its informational seminars and FMC staff briefings with various industry representatives. The Chairman emphasized the FMC's important role in combating unlawful participation in the U.S. ocean transportation system, as well as ensuring that marine terminal operators follow just and reasonable practices. Blust noted that the FMC is a member of the Committee on the Marine Transportation System, the inter-agency group created by the Bush Administration to ensure that the U.S. marine transportation system achieves the expansion required to support increased levels of traffic in the 21st century. Lastly, Blust stressed the FMC's continued information-sharing with the U.S. Customs Service and the FMC's role in national security.

WTSA Carriers Increase Bunker and Inland Fuel Charge: Effective May 1, 2006

The Westbound Transpacific Stabilization Agreement (WTSA), whose member carriers serve the trade lanes between the USA and East Asia, has announced increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC). Effective May 1 to May 31, 2006 these surcharges will be as follows. Amounts shown here are in US dollars ($):

	Bunker (BAF), May 1 - May 31, 2006	Inland Fuel Charge (IFC), May 1 - May 31, 2006
	$ 472 per 20' container	$ 179 per container for rail, intermodal rail/truck
	$ 590 per 40'/45' container	$ 52 per container for local/regional truck
	$ 30 per WM

Members of the 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 or the review the tariffs of the member carriers.

TSA Carriers File General Rate Increases and Increase Surcharges

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223, serving the East Asia/USA trade lane have announced increases to the Bunker Adjustment Factors (BAF) and Inland Fuel Charge (IFC), and General Rate Increases (GRI) effective May 1, 2006. Details are as follows in US dollars ($):

	Bunker (BAF), May 1 - May 31, 2006	Inland Fuel Charge (IFC), May 1 - May 31, 2006
	$ 445 per 20' containe	$ 179 per container for rail/intermodal
	$ 590 per 40' container	$ 52 per container for Group 4/EC Local Truck
	$ 665 per 40' high cube container
	$ 745 per 45' container
	$ 13 per WM

	General Rate Increase (GRI): effective May 1, 2006
	To US Pacific Coast Ports: $115/20', $150/ 40', $170/40'HC, $190/45'
	To US Inland Destinations via US Pacific Ports (MLB & IPI): $265/20', $350/ 40', $395/40'HC, $445/45'
	To US Atlantic & Gulf Ports via All Water Service: $300/20', $400/ 40', $450/40'HC, $510/45'
	To US Inland Destinations via US Atlantic & Gulf Ports (RIPI ): $300/20', $400/ 40', $450/40'HC, $510/45'
	GRI amounts for LTL cargo vary.

The Panama Canal Charge assessed by TSA carriers on shipments passing thru the Panama Canal will also increase on May 1 from $165 to $192 per container

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. Additional information on surcharges applied by the TSA carriers is available at http://www.tsacarriers.org and in the FMC tariffs of member carriers.