Petition seek ruling on OTI agent practices
A petition filed with the Federal Maritime Commission is seeking an order clarifying the role of agents representing ocean transportation intermediary companies.
The petition was filed by Team Ocean Services, a Texas-based forwarder, broker and logistics services company with offices throughout the United States. It asks for a declarative order clarifying exactly what an agent can do to provide assistance with non-vessel-operating common carrier and ocean freight forwarders provided by an OTI the agent represents, even though the agents do not have OTI licenses.
Team Ocean said that for commercial reasons it wants to change its model of operation from using branch offices to working with independent agents. It has received indications from the office of the FMC's general counsel that bona fide agents acting under clear contractual agreements should be able to provide a full range of OTI services. But before moving ahead with any restructuring, Team Ocean wants a ruling from the commissioners.
A final FMC ruling could have implications on how OTIs can operate service networks.
Team Ocean was involved in a case that led to a negotiated 2003 agreement in which Team Ocean agreed to pay $100,000 in penalties because of the company's previous use of unlicensed representatives.