FMC moves to improve U.S. industry position with China
The U.S. Federal Maritime Commission said it would amend its rules governing the financial responsibility for ocean transportation intermediaries to allow licensed non-vessel-operating common carriers the option to secure riders on their U.S. bonds to bring them in compliance with China’s new maritime law.
The only other option for NVOs operating in China to demonstrate their financial responsibility is to deposit at least $96,000 in a Chinese bank.
The Washington-based National Customs Brokers and Forwarders Association of America petitioned the FMC to consider the bond rider option.
“Based on the optional nature of the rule and its remedial purpose, the commission found good cause to waive the usual 30-day waiting period for effectiveness of a final rule,” the agency said in a statement Wednesday. “The final rule is effective upon publication in the Federal Register.”
The FMC also agreed to accept petitions filed by three Chinese state-owned carriers to liberalize the U.S. Controlled Carrier Act’s 30-day advance requirements for tariff rate reductions for China Ocean Shipping (Group) Co. (COSCO), China Shipping Container Lines, and Sinotrans Container Lines. With the exception of COSCO, which had partial tariff reduction exemption under the act, the Chinese carriers had to wait 30 days to make rate changes in response to competitors.
“Although the commission found the request of two of the carriers that the relief be made ‘permanent’ inconsistent with the Shipping Act, it noted that, as the relief is granted without time limit or expiration, it will provide stability and predictability of the carriers’ operations,” the FMC said.
In addition, the commission asked members of the ocean shipping industry about whether it should continue its proceeding into restrictive shipping practices and requirements in China now that the United States has entered into a new bilateral maritime agreement with China. Comments are due to the agency no later than June 1.
“We hope to hear from the U.S. ocean common carriers and NVOCCs that it is now possible for them to do business in China without undue burdens, in the cooperative spirit of the new U.S.-China bilateral maritime agreement,” FMC chairman Steven R. Blust said.