July 1, 1998 | 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.
Ocean Shipping Reform Act Remains "On Hold" in House of Representatives
House Maritime Sub-Committee Chairman Wayne Gilchrest (R-MD) has publicly stated he intends to place the ship reform bill before the House for a vote without debate or amendment, but the House adjourned for a two week recess on June 25 without placing S.414 on its calendar. This "fast track" legislative procedure requires approval of all House Committees with jurisdiction over the bill, and the approval of 60% of House members. House Veterans Affairs Committee Chairman Bob Stump (R-AZ) has raised objections to provisions in S.414 that provide benefits to merchant mariners. Rep. Stump's objections have effectively kept the bill "on hold."
The Clinton administration continues to give the bill less than strong support. Department of Transportation (DOT) Secretary Rodney Slater has endorsed S.414, but as recently as June 18 he continued to request amendments. In a letter to House Transportation Committee Chairman Bud Shuster (R-PA), Secretary Slater requested "refinements in the treatment of competition." Specifically, "essential contract terms established by a conference of carriers should be disclosed." S.414 would prevent public disclosure of key service contract terms, including contract rates and charges.
Docket 98-09: Kin Bridge Express Inc. and Kin Bridge Express (U.S.A.), Inc.
Sinotrans Pays FMC $60,000: due to failure to submit service contract records timely
In the Commission's Order approving the settlement and discontinuing the proceeding the Commission agreed the settlement will further its enforcement policy, as it secures compliance with FMC regulations governing carriers' service contract obligations, and serves notice to Sinotrans and to the industry at large that the FMC will stringently enforce its reporting requirements.
Solex Express, Inc. Pays FMC $70,000: settlement agreement on Docket 97-19
To settle these allegations Solex agreed to pay the FMC $70,000, and also to institute and maintain measures designed to eliminate the practices which were the basis of the alleged violations.
The endnotes of the order to discontinue Docket 97-19 shows the FMC made extensive use of databases in this case. The FMC used trade statistics provided by the Journal of Commerce PIERS database, additionally, a computer analysis of inbound shipments to Solex was conducted by the U.S. Customs Service to identify shipments transported by Solex during the period in question. It was noted U.S. Customs personnel can now isolate shipments which enter U.S. commerce with a description other than that which had appeared on the ocean common carrier's manifest. This information permits FMC's Bureau of Enforcement to be more selective in its investigations.
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SIGNALS the newsletter of Distribution-Publications, Inc.
Vol. 2, No. 3, July 1, 1998