FMC rate, service arrangement changes set

The amendments are designed to expand choices for shippers, reduce regulatory requirements and increase efficiencies.

   The U.S. Federal Maritime Commission said its regulatory amendments providing new flexibilities for ocean transportation intermediaries and their customers using non-vessel-operating common carrier (NVOCC) negotiated rate arrangements (NRAs) and NVOCC service arrangements (NSAs) will enter force Aug. 22.
   The final rule is expected to be published in the Federal Register on Monday. 
   The biggest changes in the rulemaking allow NRAs to be amended anytime and inclusion of non-rate economic terms. It also permits an NVO to provide for the shipper’s acceptance of the NRA by booking a shipment. The FMC said NSAs will “become easier and more attractive to use by removing filing and essential terms requirements.”
   “These regulation amendments for NSAs and NRAs will benefit American consumers and the carrier industry — both vessel operators and NVOCCs — by expanding choices for shippers, reducing regulatory requirements and increasing efficiencies in contracting for ocean shipping services,” said Acting FMC Chairman Michael A. Khouri in a statement.
   Khouri particularly credited the National Customs Brokers and Forwarders Association of America for its petition to amend the agency’s NRA and NSA rules. 
   “I remain committed to proactively considering stakeholder requests to address outdated, unnecessary or unduly burdensome regulations,” he said.
   FMC Commissioner Rebecca Dye said in a statement, “This is one of the first pieces of major deregulation accomplished by the commission, and I am anxious to build upon this momentum.” 
   NSAs and NRAs are instruments created by the commission, at the request of shipper and carrier stakeholders, respectively in 2004 and 2010. They provide shippers and OTIs with a more efficient way to comply with Shipping Act reporting requirements while relieving them from the tariff filing process.
   The commission voted on June 6 in favor of moving forward with a proposed draft Final Rule in Docket 17-10, Amendments to Regulations Governing NVOCC Negotiated Rate Agreements and NVOCC Service Arrangements.