FMC ISSUES RATES AND SURCHARGES ADVISORY
The Federal Maritime Commission (FMC) released on Tuesday an advisory reminding carriers, OTIs [ocean transportation intermediaries], and shippers of the basic rules for application of rates and surcharges.
Steven R. Blust, chairman of the FMC, had told delegates to the Western Cargo Conference in Las Vegas on Saturday that the advisory would be released “early next week.”
Some freight forwarders and NVOs attending the conference said that certain ocean carriers are selectively suspending surcharges to divert business from forwarders and NVOs directly to the carriers’ own logistics units.
“The Commission has received a number of inquiries regarding the propriety of certain remedial actions,” Blust told the WESCCON delegates.
“It appears that much of the conflict created by this problem will need to be dealt with between carriers and customers on a service contract by contract basis,” he said.
The advisory released on Tuesday said that “the Commission wants to remind the regulated industry and the shipping public of the general requirements of the Shipping Act of 1984…and of the Commission’s rules that govern rate changes that result in an increased cost to the shipper.” Citing “several inquiries from interested parties as to the legality of certain carrier actions being taken or proposed,” the advisory goes on to warn that “variances” regarding individual service contracts “must be authorized…by applicable authority.”
“Of course, service contract terms always may be varied by mutual agreement of the parties reflected in an amendment duly filed with the Commission,” the advisory noted. For the full text, see www.americanshipper.com/fmcadvisory.asp.