The Federal Maritime Commission will continue to focus on identifying and addressing outdated, unnecessary, or unduly burdensome regulations that affect the ocean supply chain. In 2018, the FMC provided deregulatory flexibilities for Non-Vessel-Operating Common Carrier Negotiated Rate Agreements and NVOCC Service Arrangements. By year-end 2018, we should complete the interpretive rule that clarifies unjust/unreasonable practices under the Shipping Act.
In 2019, the commission will review a petition seeking relief from service contract filings and publication. Further, the FMC will review current regulations on ocean common carrier and marine terminal operator agreement rules; ocean transportation intermediary (OTI) licensing, financial responsibility requirements and general duties; and hearing procedures for denial, revocation, or suspension of OTI licenses.
The Fact Finding 28 final report on demurrage/detention practices was scheduled for December 2018. Through early 2019, the commission will consider Commissioner Dye’s report recommendations and implement agreed findings. The goal of the Fact Finding is increased efficiency and reliability in the ocean supply chain.
Alliance monitoring remains a priority as we add senior economists to the FMC team. As the ocean liner industry continues to consolidate, FMC economists and trade analysts will remain diligent in their alliance monitoring programs. Marine terminal operators have begun to utilize operational cooperation agreements. This trend is likely to continue.
FMC enforcement priorities will focus on supply chain integrity in two respects. The Bureau of Enforcement will step up investigations in misdeclaration of cargo, which causes safety and hazard issues onboard vessels. Investigators will increase scrutiny on businesses that advertise or “hold out” as an OTI but do not have an FMC license or financial responsibility bond.
As these commentaries are submitted, President Trump has nominated two members to serve on the commission. Subject to US Senate confirmation, we look forward to welcoming Dan Maffei and Louis Sola on board.