FMC Extends Comment Deadline for its "Notice of Inquiry" on Possible Changes to Allow NSAs to be Jointly Offered by Unaffiliated NVOCCs
The Federal Maritime Commission (FMC) has issued a notice announcing an extension of the comment deadline for a Notice of Inquiry (NOI) concerning possible changes to its tariff publication exemption provided to non-vessel operating common carriers (NVOCCs) in NVOCC Service Arrangements (NSAs). The changes at issue in this NOI would allow NSAs to be jointly offered by unaffiliated NVOCCs.
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The FMC explains that it is granting a request from the Department of Justice for an extension of time to file comments. As such, comments are now due on October 20, 2005 (rather than October 6, 2005).
(See ITT's Online Archives or 09/02/05 news, 05090220, for BP summary of the FMC's NOI, which contains a more comprehensive list of questions than is re-printed below.)
FMC Seeks Comments on Specific Questions
Specifically, in this NOI, the FMC is seeking comments on the following list of questions (partial list):
In what manner could two or more unaffiliated NVOCCs jointly offer NSAs? Would two or more NVOCCs use a single document to offer their services as carriers to other NVOCCs acting as shippers? Would two or more NVOCCs offer identical services or rates in separately-filed NSAs? Are there other possibilities?
How would rates and defined service levels for such jointly offered NSAs be determined?
Would unaffiliated NVOCCs jointly offering NSAs keep the terms of such NSAs confidential from non-participating NVOCCs? From other shippers (including NVOCCs)?
How would such an exemption meet the statutory requirements of section 16 of the Shipping Act of 1984? Would such an exemption cause a substantial reduction in:
- Competition among NVOCCs;
- Competition between NVOCCS and vessel-operating common carriers (VOCCs);
- Competition among beneficial cargo owners; and
- Other competition?
The FMC states that in order to best facilitate its consideration of the issues raised in the NOI, commenters should provide detailed responses, and should supply examples whenever feasible.
(See ITT's Online Archives or 12/23/04 news, 04122320, for BP summary of the FMC's final rule which exempted NVOCCs from certain tariff publication requirements of the Shipping Act of 1984 and allowed NVOCCs to issue NSAs, subject to certain conditions, etc.
See ITT's Online Archives or 09/29/05 news, 05092910, for BP summary of a September 2005 FMC final rule allowing NVOCCs and shippers associations with NVOC members to act as shippers in NSAs, effective October 28, 2005.)
-written comments are now due on October 20, 2005
FMC contact - Amy Larson (202) 523-5740
FMC comment extension (D/N 05/06, served 10/03/05) available athttp://www.fmc.gov/file.asp?F=E5AC0E9A56BB4DB9BB880206E97CCD33%2Ehtm&N=05%2D06EXTENSIONNOTICE%2Ehtm&C=docket_activity