2011 will mark the Federal Maritime Commission’s 50th anniversary, I hope with a full complement of commissioners and ocean shipping’s continued recovery. I also expect two important issues to face our industry: service contracts that better establish service expectations and practical remedies, and a need to serve growing U.S. exports.
We may want to forget 2009’s ocean shipping contraction and 2010’s service problems, but we should remember an important lesson. It’s in everyone’s interest for service contracts to provide clear service and charge expectations and practical remedies for disputes. Following our fact finding on recent capacity and container shortages, we need continued efforts to bring shippers and carriers together to strengthen service contracts while respecting the flexibility that has made them popular. When disputes arise, our office of Consumer Affairs and Dispute Resolution Services stands ready to provide confidential assistance that avoids the cost and delays of litigation.
I will also watch how the intermodal transportation system serves U.S. exporters. President Obama’s National Export Initiative seeks to double our exports over the next five years, and the Shipping Act instructs the FMC to promote their growth and development. Although trade imbalances won’t disappear overnight, all sectors of our supply chain should consider whether adjustments to infrastructure, services and container positioning are needed to support export growth.
After these two main issues, four others merit mention: First, non-vessel-operating common carriers and customers likely will transition from published tariff rates to individually negotiated rates. Second is the impact of slow-steaming and environmental initiatives. Third is the FMC’s study of the European Union’s repeal of liner shipping’s block antitrust exemption. And fourth will be our work to strengthen protections for individuals who move household goods overseas.