August 4, 2008
Volume 12, Number 8
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.

 American Trucking Association Challenges LA/LB Clean Trucks Programs

The American Trucking Associations (ATA), with the support of its Intermodal Motor Carriers Conference (IMCC), filed suit in the U.S. District Court in California challenging the Port of Long Beach’s and the Port of Los Angeles’ Clean Truck Programs.  The ports’ Clean Truck Programs aim to reduce air pollution in and around the ports by progressively banning older trucks from the ports and creating a viable trucking sector.  The Clean Truck Programs, as well as a clean-truck fee of $35 per TEU, are scheduled to begin on October 1, 2008 at both ports.

ATA’s lawsuit, filed July 28, 2008, takes issue with the “Concession Plans” included in the programs that will require truckers serving the ports to apply for port-issued licenses and fulfill numerous operational requirements.  The Port of Los Angeles’ plan will also ban owner-operator truckers from the port and require all truckers to be employees of trucking firms.  “We firmly believe that these concession programs unlawfully re-regulate the port trucking industry to the detriment of motor carriers, shippers, and the businesses and consumers that depend on the products that are handled at those ports,” said ATA President and CEO Bill Graves.  Intermodal Motor Carriers Conference (IMCC) Executive Director Curtis Whalen said “We are challenging only the intrusive and unnecessary regulatory structure being created under the Concession Plans."

The American Trucking Associations, the national trade association for the trucking industry, is a federation of affiliated state trucking associations, conferences and organizations that includes more than 37,000 motor carrier members.  Just last month the Federal Maritime Commission approved a discussion agreement that authorizes the Ports of Los Angeles and Long Beach and several Marine Terminal Operators (MTOs) to coordinate their Clean Truck Programs.  This lawsuit could delay the October 1, 2008 program implementation date, but the Port of Long Beach released a statement saying it will move forward with its Clean Truck Program despite the lawsuit.  The Port of Los Angeles has not yet released a statement regarding the ATA challenge.

 FMC Scrutinizes U.S. Pacific Coast-Oceania Agreement

The Federal Maritime Commission approved an amendment to the U.S. Pacific Coast–Oceania Agreement to add CMA CGM S.A. and ANL Singapore PTE, Ltd., as a single party to the agreement.  The agreement, FMC Agreement No. 011741-012, already includes Maersk Line, Hamburg Sud, and Hapag-Lloyd AG.  This vessel sharing agreement, in effect since January 29, 2001, covers the trade between the U.S. Pacific Coast and Australia, New Zealand, and the Pacific Islands.  The amendment, approved July 25, 2008, also provides for revised vessel operations, and makes changes to the vessel sharing agreement between the participating carriers.  While the Commission decided not to delay the effectiveness of the amendment, the Commissioners ordered FMC staff to investigate the U.S. - Oceania trades.  As a result of this amendment, the FMC believes parties to the agreement will gain substantial market power. It ordered the FMC staff to review rates, practices and competitive conditions in the trade.

To further this investigation, the Commissioners authorized the use of Section 15 Orders to vessel-operating common carriers serving the U.S. – Oceania trade lanes.  These orders can require carriers to provide extensive details on their business activities.  In previous investigations of other trades, Section 15 Orders issued by the FMC ordered carriers to provide copies of all documents and correspondence, including personal notes, telephone notes and e-mail messages, as well as reports, studies, forecasts, analyses, and fact sheets relevant to the trade.  Additionally, carriers were ordered by the FMC to identify each employee who had any responsibility or was otherwise assigned to discuss, negotiate, or sign service contracts with NVOCCs and proprietary shippers, and to identify all accounts assigned to each individual by name of NVOCC or proprietary shipper.

 FMC to Consider Terminal Agreements and Personnel Matters at August 9 Meeting

The Federal Maritime Commission (FMC) is scheduled to discuss a number of important issues at open and closed sessions of a Commission meeting to be held August 9, 2008.  In the open session of the meeting, the Commission will review FMC Agreement No. 201188 – Houston Terminal LLC Cooperative Working Agreement and FMC Agreement No. 201189 – New Orleans Terminal LLC Cooperative Working Agreement, both of which are set to go into effect August 9, 2008.  Ceres Gulf, Inc., Mediterranean Shipping Company, S.A. (MSC) and Container Marine Terminals LLC, an affiliate of MSC, are parties to both agreements.  These agreements will allow the parties to operate, discuss and agree upon matters relating to operation of Houston Terminal LLC at the Port of Houston and operation of New Orleans Terminal LLC at the Port of New Orleans.  

In the closed session of the meeting, Commissioners will discuss the Los Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement, which these ports plan to use to implement their Clean Truck Programs, as well as internal administrative practices and personnel matters.  The Commission has recently issued vacancy notices for a number of positions, including a Director for its Equal Employment Opportunity Office, an Industry Analyst for its OTI Office, an Attorney for its Office of Administrative Law Judges, and an Area Representative for its field office in New Orleans.

 WTSA Carrier Group Increases Bunker Adjustment Factors

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member lines serve the US export trades from the USA to East Asia, will increase their Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC) for the month of September.  BAF will increase on September 1 to US$ 1192 per 20ft container, US$ 1490 per 40ft/45ft container and US$ 70 per WM.  IFC for September will be the same as August:  US$ 464 per container for rail and intermodal rail/truck shipments, and US$ 134 per container for local/regional truck shipments.

The 10 WTSA member carriers are American President 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 info visit www.wtsacarriers.org.

 TSA Carriers Increase BAF, Impose Vietnam Congestion Charge

The carrier members of the Transpacific Stabilization Agreement (TSA), serving the East Asia/USA trade lane announced increases to Bunker Adjustment Factors (BAF) and Inland Fuel Charges (IFC) for September 2008.  TSA will also implement two new surcharges in September: a Vietnam Congestion Charge for shipments from Ho Chi Minh City effective September 1, and a Garment on Hanger Container Charge effective September 15.

The Bunker Adjustment Factor (BAF) for the month of September 2008 will be US$ 1192 per 20ft container, US$ 1490 per 40ft container, US$ 1676 per 40ft hi-cube container, US$ 1886 per 45ft container and US$ 33 per WM.  The IFC for September will be the same as August:  US$ 464 per container for MLB and IPI shipments moving via rail, and to US$ 134 per container for truck transport to Group 4 points in California, Oregon and Washington, and for East Coast local store-door truck moves.   The Vietnam Congestion Charge for Ho Chi Minh City effective September 1, 2008 will be US$ 50 per 20ft container and US$ 150 per 40ft container.  The Garment on Hanger Container Charge of US$ 1000 per 40' container (1-tier) and US$ 1500 per 40' container (2-tier) goes into effect September 15, 2008.

The 15 members of the TSA are American President Lines, CSCL, CMA-CGM, COSCO Container Lines, Evergreen Marine, Hanjin Shipping, Hapag-Lloyd Container Line, Hyundai Merchant Marine, "K" Line, Mediterranean Shipping, Mitsui O.S.K. Lines, NYK Line, OOCL, Yang Ming Marine, and Zim Integrated Shipping Services.  Visit www.tsacarriers.org.


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Vol. 12 No. 8, August 4, 2008

The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.