President Trump Nominates Maffei and Sola for FMC Posts

President Donald Trump announced it plans to nominate former U.S. Congressman and former FMC Commissioner Daniel Maffei to a new term on the Federal Maritime Commission. Maffei previously served two years on the FMC and will now be nominated to serve out the remainder of a five-year term that expires June 30, 2022. The White House also recently announced the President intends to nominate Luis E. Sola of Florida as Commissioner to serve as Commissioner for a term expiring June 30, 2023.

Dan Maffei, a Democrat who represented Central New York in Congress for two terms, was appointed to the Federal Maritime Commission by President Obama in November 2015, and confirmed by the U.S. Senate in June 2016, but was required to leave the Commission on June 30, 2018 after two years of service because his term expired. Maffei has taught at George Washington University's Graduate School of Political Management in Washington since leaving the FMC.

Luis E. Sola of Florida currently serves on the Florida Board of Pilot Commissioners. Sola is the founder of Evermarine a yacht dealer that also operates in Florida, California and Panama. His areas of expertise include maritime security, port development, ship repair and mega yachts. Sola served in the U.S. military stationed in Panama and was adjunct professor at Florida State University-Republic of Panama Campus. He earned his B.S. from the Nova Southeastern University and M.S. in International Finance from the University of Illinois. Sola has also been active in politics as a supporter of Senator Marco Rubio (R-FL) and President Trump.

The Commission has operated with just two Commissioners since Maffei’s departure in June 2018; both Republicans. The Shipping Act authorizes five commissioners, with no more than three of these representing the President’s political party. Some shippers expressed concern about the vacancies and appealed to the White House to reappoint Maffei to the commission. Senator Charles Schumer, D-N.Y., the Senate Democratic leader, recommended Maffei's reappointment to the Trump White House.

The appointments of Dan Maffei and Luis Sola require confirmation by the U.S. Senate and the confirmation process can take several months. Prior to Senate confirmation they cannot begin work at the Commission. Once they join the FMC they must comply with title 46 Section 301(B) of the U.S. Code of Federal Regulations which prohibits sitting Commissioners from engaging in any other business, vocation or employment, and from owning stocks or bonds of any entity the Commission regulates.

CMA CGM to Apply Emergency Bunker Recovery Measures Adjustment December 8, 2018

CMA CGM announced its decision to recover rising oil costs with an Emergency Bunker Recovery Measures Adjustment, effective December 8, 2018. A specific announcement for Taiwan to follow. The new amount of the measure is based on the Brent average price in October, and will be applied to all long-haul cargo worldwide, excluding Taiwan. See table below for amounts per twenty-foot equivalent unit (TEU); amounts for all other container sizes are as per formula.

Maersk to Apply Inland Fuel Surcharge (IFS/EFS), Effective December 1, 2018

Maersk Line A/S announced its plan to apply an Inland Fuel Surcharge (IFS/EFS), effective December 1, 2018, in response to the changing U.S. trucking market.

The IFS/EFS will be applicable to/from all U.S. and Canada inland locations in the amount of USD 20 per container, for every USD 0.10 incremental increase above the baseline fuel retail price of USD 3.20 per gallon.

The fuel retail price will be based on the average published by the U.S. Energy Information Administration (EIA). Maersk did not specify which EIA price index it will follow.

Maersk will review and update the IFS/EFS quarterly, based on the fuel cost per gallon increase in the prior quarter. This quarterly review will be no later than 30 days prior to the effective date. An applicable increase will become effective the first day of each quarter: January 1, April 1, July 1, and October 1. The IFS/EFS will not apply if the fuel retail price average on the EIA website from the prior quarter is lower than USD 3.20 per gallon.

Yang Ming and Hyundai Merchant Marine Publish Low Sulphur Charges for China; Taiwan

Yang Ming Marine Transport Corporation published Low Sulphur Charges in its FMC tariff for China and Taiwan as follows:

NOTE 1: Applicable for cargo moving from Shanghai/Ningbo/Wenzhou/Zhapu Port, including Changjiang Area inland cargo via Shanghai/Ningbo.

NOTE 2: Applicable for cargo moving to Shanghai/Ningbo Port, including Changjiang Area, other inland or port cargo via Shanghai/Ningbo.

NOTE 3: Applicable for cargo moving from North PRC.

NOTE 4: Applicable for cargo moving from PRD/Hong Kong.

Hyundai Merchant Marine Co., Ltd. also published Low Sulphur Charges for China as follows:

NOTE 1: Applicable for cargo moving from Shanghai, Ningbo port including Yangtze River inland cargo via Shanghai, Ningbo.

NOTE 2: Applicable for cargo moving from all China origins.

Transpacific Eastbound Carriers Update Alameda Corridor Charge Effective January 1, 2019

A few carriers updated their respective FMC tariffs to increase the Alameda Corridor Charges (ACC), effective January 2019. See table below.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective January 1, 2019

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective January 1 through March 31, 2019. Details are as follows.

Here is a table of carriers that have posted BAF amounts:

NOTE 1: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03). CMA CGM also filed a Bunker Surcharge (BAF08) in its FMC tariff. Rates which are subject to the above BAF03 are exempt from the BAF08.

NOTE 2: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 3: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Transpacific Eastbound Carriers File GRIs Effective December 15 and January 1, 2019

Some carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective December 15, 2018, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The December 15th GRIs will be the twenty-third GRI of 2018 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.

Some carriers updated their respective tariffs to include new General Rate Increases (GRIs) effective January 1, 2019, including APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express, and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The January 1st GRIs will be the first GRI of 2019 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.

Each carrier maintains its own tariffs and controls its own pricing.

Transpacific Westbound Carriers Update Alameda Corridor Charge Effective January 1, 2019

Some carriers updated their respective FMC tariffs to increase the Alameda Corridor Charges (ACC), effective January 2019. See table below.

Transpacific Westbound Carriers Update Fuel Surcharges Effective January 1, 2019

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the January to March 2019 quarter. Here is a table of carriers that have posted BAF amounts:

NOTE 1: Yang Ming calls the above Bunker surcharge the New Bunker Charge (NBC). Yang Ming also filed an Emergency Bunker Surcharge (EBS) in its FMC tariff. Rates which are subject to the above NBC are exempt from the EBS.

NOTE 2: CMA CGM calls the above Bunker surcharge the fluctuating Bunker Surcharge (BAF03). CMA CGM also filed a Bunker Surcharge (BAF08) in its FMC tariff. Rates which are subject to the above BAF03 are exempt from the BAF08.

NOTE 3: ONE calls the above Bunker surcharge the Bunker Adjustment Factor (BAF). ONE also filed a ONE Bunker Surcharge (OBS) in its FMC tariff. Tariff rates which are published prior to January 1, 2019 shall be subject to BAF for their duration, unless otherwise excepted in the rate itself; all TRIs published after January 1, 2019 shall be subject to OBS.

NOTE 4: Subject to Low Sulphur Fuel Charge (LSF or LSS).

Each carrier maintains its own tariffs and controls its own pricing.