Change in America’s ocean supply chain is the fuel that drives innovation. Regulatory oversight for this industry is a challenge in terms of keeping pace with the changing business climate while also maintaining a focus on the Federal Maritime Commission’s core mission under the Shipping Act — to ensure a competitive and reliable international ocean transportation supply system that supports the US economy and protects the public from unfair and deceptive practices.
The consolidations and mergers in the container liner industry and the parallel operational integration of the top 10 carriers into three main alliances is well reported. Also, marine terminal operators on the US West and East coasts have joined together in various forms of mutual discussion agreements for a diverse range of purposes. All of these new stakeholder affiliations are designed to increase the efficiency and reliability of the ocean supply chain. The FMC reviews, analyzes, solicits public comment, and determines the competitive impacts of all such agreements.
The FMC has responded to these changes in the ocean supply chain in a number of ways. Newly filed agreements receive heightened review by staff with a vigorous negotiation process to address commission concerns. Then, once each agreement goes into effect, the follow-on reporting requirements are more extensive and frequent so staff can monitor service and rate movements in all relevant trade lanes.
From a deregulatory perspective, in March, the commission provided vessel operators and non-vessel-operating common carriers significant relief from contract filing requirements, and again in November with advancement of a proposed rule to further reduce the regulatory burdens regarding NVOCC service agreements and negotiated rate agreements.
From a non-regulatory perspective, Commissioner Rebecca Dye has continued her excellent leadership of the Supply Chain Innovation Teams as they focus on market solutions rather than government proscriptions. The interim reports highlight that the ocean supply chain, from producer/exporter door to ultimate consignee door is a connected network of systems. Cargo moving in an international trade does not begin or end its journey on a port dock, but relies on an American freight delivery system that must communicate and work harmoniously. A final report was to be released by the end of 2017.