NVOCC-GAC calls for tariff reform, service contract rights
A group of third-party-logistics firms and non-vessel-operating common carriers wants the U.S.’s ocean transportation tariff structure reformed.
“Tariffs in ocean shipping play a minimal commercial role, but yet are a substantial expense, and expose all carriers, including ocean carriers, to substantial regulatory risk,” the NVOCC-Government Affairs Conference said in a statement issued after its July 9 meeting in Washington.
Tariff publishing was maintained for the U.S. ocean-shipping business under the 1998 Ocean Shipping Reform Act. The Federal Maritime Commission enforces the statutes of the law.
“We believe that the Federal Maritime Commission has the ability to exempt certain tariff publication requirements, and that most of the industry segments would be supportive,” said Carlos Rodriguez, general counsel for the NVOCC-GAC.
It was also decided at the group’s meeting to pursue so-called “service contract parity” for NVOCCs. OSRA only allows vessel operators to enter confidential service contracts with shippers.
“It doesn’t make sense that a company undertaking to perform turnkey services is not legally competent to enter ocean contracts on a confidential basis,” the NVOCC-GAC said. “This is even more important now when some of the larger logistics firms are ocean carrier owned.”
“We need to change the regulatory infrastructure to meet the requirements of the times,” the group added.
The NVOCC-GAC members include Airborne Express, Menlo Logistics (Emery), DSL Star Express, UPS Supply Chain Services, DHL-Danzas, NACA Logistics Group, Shipco Transport, CaroTrans International, Eagle Global Logistics, OEC, and APL Logistics. Others attending last week’s meeting, although not NVOCC-GAC members, were Crowley Logistics and FedEx Trade Networks.
The NVOCC-GAC got its start in December 2001 when U.S. Customs initially indicated its interest in NVO inbound manifest data. The group became actively engaged in the formation the agency’s advance manifest regulation. The NVOCC-GAC also promoted retaining confidentiality of NVO manifest data.