COSCO ASKS FMC FOR RATE-SETTING FLEXIBILITY
The China Ocean Shipping Company has asked the U.S. Federal Maritime
Commission for permission to reduce rates upon publication under the Ocean
Shipping Reform Act of 1998.
Effective May 1, COSCO, as a controlled carrier, would have to wait 30
days to reduce rates in the U.S./China trade, because the shipping act
expands the scope of the Controlled Carrier Act to include the bilateral
trade.
COSCO said exempting the line from the requirement would further the
act’s goal to increase competition.
The carrier would be allowed to meet pricing demands of its customers,
like other carriers who will be operating under the shipping act, COSCO
said.