September 3 , 2009 Volume 13, 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.

On July 31, 2009, Richard A. Lidinsky, Jr. was sworn in as a Federal Maritime Commissioner for a term expiring June 30, 2012.  Lidinsky was nominated by President Barack Obama on June 18, 2009 and confirmed by the U.S. Senate on July 24, 2009.  Lidinsky, an attorney and international trade consultant, is a maritime industry veteran and former FMC attorney.  He will be returning to the agency after nearly 35 years.

Lidinsky began his career at the Federal Maritime Commission in 1973 as Legislative Counsel in the Office of General Counsel.   After leaving the FMC in 1975, he was appointed by the Maryland Port Administration to be Director of Tariffs and National Port Affairs, as well as counsel.  As a representative for the Port of Baltimore, he helped draft sections of the Panama Canal Treaty Implementing Legislation and the Shipping Act of 1984.   In 1985, Sea Containers Ltd., the global maritime manufacturer and leasing company, recruited him to establish their Washington, DC office.  

Lidinsky stated that he is looking forward to working with fellow FMC Commissioners "particularly during this time of severe economic downturn facing the entire maritime industry."  He says he intends to ensure that shippers and regulated entities such as ocean common carriers, ocean transportation intermediaries, ports, and other participants involved in the entire maritime logistics chain are provided with an efficient and nondiscriminatory ocean transportation system. Lidinsky received his BA from the School of Government and Public Administration of American University in 1968 and his JD from the University of Maryland in 1972.  He served in the U.S. Coast Guard from 1968 to 1975.

The Federal Maritime Commission officially ended its investigation into the Clean Truck Programs at the Ports of Long Beach and Los Angeles.  FMC Commissioners unanimously dismissed FMC Docket No. 08-05 at their August 19, 2009 meeting.  The FMC initiated the investigation into suspected anti-competitive aspects of the Clean Truck Programs last September.  The FMC took issue with the programs’ incentive payments, concession agreements, and the Port of Los Angeles’ employee-driver mandate.  Since the initiation of this investigation, the Ports of Los Angeles and Long Beach have modified their Clean Truck Programs to address many of the Commission’s concerns.  The FMC also noted that a suit filed by the American Trucking Associations resulted in a preliminary injunction enjoining the employee-driver mandate and some requirements of the concession agreements.  In June, the FMC filed a motion to withdraw a court action it brought against the Clean Truck Programs in U.S. District Court.

This dismissal officially ends the FMC’s inquiry into the LA/Long Beach Clean Truck Programs.  Acting Chairman Brennan commented that he "is pleased that circumstances allow this investigation, along with the Commission's Section 6(g) court action, to finally come to an end. The termination of these two proceedings clears the path for the Ports to continue implementation of Clean Truck Programs which will result in cleaner air." Commissioner Lidinsky added that he was "very pleased" that his first major vote helped "bring this investigation to a conclusion and to allow these great ports to fashion with their transport partners green operations that could become models for others to emulate." 

The carrier members of the Transpacific Stabilization Agreement (TSA), FMC Agreement No. 011223, serving the East Asia/USA trade lane announced increases to Bunker Adjustment Factors (BAF) effective October 1, 2009 calculated using the group’s old monthly BAF formula.  The TSA Carriers also announced increases to quarterly Inland Fuel Charges (IFC) and quarterly BAF calculated using their new calculation formula.  Cargo moving under tariff rates and 2008-09 service contracts that remain effective are subject to BAF calculated using the old monthly calculation formula.   

October 2009 Bunker Adjustment Factors (BAF) calculated using TSA’s old monthly formula will increase to US$ 652 per 20ft ctr, US$ 815 per 40ft ctr, US$ 917 per 40ft hi-cube ctr, US$ 1032 per 45ft ctr, and US$ 18 per WM (LCL). 

Increases to quarterly BAF according to TSA’s new formula are as follows for the period of Oct. 1 thru Dec. 31, 2009: shipments via West Coast Service - US$ 246 per 20ft ctr, US$ 308 per 40ft ctr, US$ 347 per 40ft hi-cube ctr, US$ 390 per 45ft ctr;  shipments via East Coast Service - US$ 490 per 20ft ctr, US$ 613 per 40ft ctr, US$ 690 per 40ft hi-cube ctr, US$ 776 per 45ft ctr. 

Inland Fuel Charges (IFC) effective Oct. 1 thru Dec. 31, 2009 will be increased to US$ 185 per ctr for shipments to IPI destinations served via West Coast Ports, US$ 93 per ctr for shipments to RIPI destinations served via East Coast Ports, and US$ 53 per ctr for shipments to Group 4 Points in California, Oregon and Washington and to East Coast local store door points.  CAF for shipments from Japan will increase from 13 to 14 percent effective Oct. 1 thru Dec. 31, 2009.

TSA Carrier members also filed General Rate Increases (GRI) in their FMC tariffs of US$ 400 per 20ft ctr, US$ 500 per 40ft ctr, US$ 565 per 40ft high cube and US$ 635 per 45ft ctr, effective on or about Aug. 10, 2009. In addition, some carriers in this group, including American President Lines (APL), have filed a Peak Season Surcharge (PSS) of US$ 400 per 20ft ctr, US$ 500 per 40ft ctr, US$ 565 per 40ft high cube, and US$ 635 per 45ft ctr, effective Sep. 10, 2009 thru Oct. 31, 2009.  The GRI and PSS apply to cargo moving from Asia to the USA under tariff rates and service contracts, except when otherwise provided in tariffs or contracts.

The TSA’s 14 carrier members 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, NYK Line, OOCL, Yang Ming Marine and Zim Integrated Shipping Services. The group’s web site at www.tsacarriers.org provides additional information.

The Westbound Transpacific Stabilization Agreement (WTSA), FMC Agreement No. 011325, whose member lines serve the US export trades from the USA to East Asia, announced increases to Bunker Adjustment Factors and Inland Fuel Charges and revisions to Currency Adjustment Factors (CAF) effective Oct. 1, 2009.  Most of the WTSA members will be charging the following BAF for dry and reefer cargo for the period Oct. 1, 2009 thru Dec. 31, 2009:

The Inland Fuel Charge (IFC) for Oct. 1 thru Dec. 31, 2009 will be increased to US$ 185 per ctr for rail and intermodal rail/truck shipments, and US$ 53 per ctr for local/regional truck shipments.    Currency Adjustment Factors (CAF) for the same period are:  Japan 0%, Korea 0%, Taiwan 4% and Singapore 15% (up from 13%).  The WTSA updates BAF, IFC, and CAF surcharges on a quarterly basis. 

Several WTSA Carriers also implemented GRIs effective on or about Sep. 1, 2009 of US$ 120 per 20ft ctr and US$ 150 per 40ft ctr for all shipments via U.S. West Coast ports, and US$ 160 per 20ft ctr and US$ 200 per 40ft ctr for intermodal moves and shipments via U.S. East and Gulf Coast ports.  The WTSA’s 10 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.