It is my prediction that the Federal Maritime Commission will decide this year to eliminate ocean freight tariff filing for NVOCCs. The initial reason for the requirement was to ensure there was no discrimination to the shipping public. There was concern about discrimination because of the antitrust immunity by the vessel operators. The NVOCCs never had the antitrust immunity, and with thousands of FMC-licensed NVOs, there is not a concern by the shipping public to be able to get nondiscriminatory rates from an NVOCC.
I anticipate the FMC will recognize the filing of the ocean rates is not useful to the shipping public and creates a significant expense to the NVOCC. In various studies, it has been shown the public does not utilize the publically accessible tariff. The commission will recognize the push by government to eliminate burdensome regulation, in particular, on small business, thus eliminate this regulation, which will save an administrative burden and expense to NVOs. The FMC has taken positive steps in recent years with the creation of negotiated rate agreements and other revisions of the regulations that have benefited the industry, and the next step will be the elimination of the ocean freight tariff filing.
I also expect that because of port congestion on the West Coast and the expansion of the Panama Canal, we will see more cargo from Asia arrive ports at U.S. East Coast ports. Both vessel operators and importers will take steps to reduce dependency on West Coast ports and divert some of their cargo to East Coast ports. he expansion of the canal and the deepening of multiple ports on the East Coast will allow more competitive pricing for cargo arriving on post Panamax vessels.
John Abisch, President, Econocaribe Consolidators, an ECU Line company