FMC updates agreement filing review process

The U.S. Federal Maritime Commission’s staff has updated the way it reviews agreements filed by container carriers and marine terminals.

   The U.S. Federal Maritime Commission’s staff has updated the way it reviews agreements filed by container carriers and marine terminals.
   “To accommodate these filings, commission staff has been working on procedures that will make the best use of that 45 days with a focus on collaboration and transparency, both within the agency and for the shipping public,” Jason Guthrie, director of the FMC’s Office of Agreements in the Bureau of Trade Analysis told the commissioners during a meeting Wednesday morning.
   Evaluating today’s increasingly complex agreements is a time-consuming, analytical process for the commissioners and their staff. Each new agreement, as well as amendment to an existing agreement, must be carefully reviewed by the commission to ensure that it’s compliant with all the filing requirements of the Shipping Act and Code of Federal Regulations. 
   “All agreements including the majority of filings that are not considered substantially anti-competitive and are, by rule, effective on filing, are evaluated to ensure that no additional legal or economic analysis is required,” Guthrie said.
   Currently, however, the commission reviews each agreement or amendment filing by moving it through the relevant office and bureau staff in a “sequential” review process. With these agreements becoming increasingly complex, there’s a risk for delay and rushing at the end to meet the 45-day deadline to finish the review.
   Under the proposed new agreement review process, the FMC will immediately publish the agreement filing in the Federal Register to ensure the industry is aware of the agreement and has adequate time to file comments with the commission.
   Internally, the commission will hold a meeting of representatives from all the bureaus and offices, including the commissioners’ staff, to introduce the filed agreement and immediately start the review process across the agency. 
   The FMC will also reach out to the agreement’s filing counsel, if necessary, during the 45-day review cycle to address any concerns with specific terms or conditions in the agreement. “This is done as early as possible, so that an analysis of this information can be provided to the commission for its consideration of the agreement,” Guthrie said.
   The goal for the new review methodology is allow the FMC staff to make its recommendations with regards to the filed agreements and amendments to the commissioners for their consideration two weeks before the end of the 45-day review period.  
   “Overall, this agreement review process has been structured to garner greater input, from more perspectives, earlier in the 45-day review process, in a way that can best inform any staff recommendations for commission action,” Guthrie said.
   The commissioners said they are pleased with the new methodology for reviewing agreements and amendments.
   “I think that it is very helpful when we only had 45 days, and it helps us meet our deadline, with a robust analysis that has to go on,” FMC Commissioner Rebecca Dye said.
   “We have specific issues with agreements and things of that nature, and I think that the outreach you have in the first 45 days, sitting down with the commission to get an understanding of where we come from, has been very helpful,” FMC Commissioner William Doyle told Guthrie.
   The commission maintains the option to hold a special Sunshine Act meeting to further discuss any agreement, either in open or closed session.
   “I will say that I do think it is important that we keep it within 45 days. It is important to the industry. And that does become more difficult if the staff diminishes,” said FMC Commissioner Daniel Maffei, adding that he supports the chairman’s budget request to Congress as necessary to allow the agency to continue to perform its work and meet its deadlines.
   Acting FMC Chairman Michael Khouri said in no way does the updated process for reviewing agreements and amendments diminish the agency’s enforcement of the Shipping Act. “When viewed with the right numerator and denominator, I will stand by our record against any other antitrust enforcement agency in this country,” he said.