The FMC announced that it will issue a final rule by February 23, 2011, which will allow NVOCCs that follow the rule’s conditions to be relieved of rate publication requirements 45 days after the rule is published in the Federal Register. The final rule is expected to establish an instrument called a negotiated rate arrangement. Licensed NVOCCs which enter into negotiated rate arrangements with their customers will be exempted from the requirement of publishing their rates in tariffs if they meet conditions that include: (1) publication free of charge to the public of a rules tariff; (2) written agreement on rates in advance of covered shipments; and (3) a five-year retention requirement of documentation support such arrangements. Comments filed with the FMC indicate that cost savings to be achieved by impacted NVOCCs will be up to $200,000 per year
Friday, February 19, 2010 by Transportation Lawyer
It looks like Non-Vessel Operating Common Carriers ("NVOCCs") will soon have the burden of rate tariff filing lifted. Here is an excerpt from a news release issued yesterday by the Federal Maritime Commission ("FMC"):
The Federal Maritime Commission voted today to initiate a rulemaking that would relieve Non-Vessel-Operating Common Carriers (NVOCCs) from the costs and burdens of publishing in tariffs the rates they charge for cargo shipments. In a 3 to 1 vote, the Commission decided to grant this exemption from publishing rate tariffs to licensed NVOCCs. NVOCCs are common carriers that act as intermediaries between their shipper customers and steamship lines. According to comments filed with the Commission, this action could save many of these businesses up to $200,000 per year.
Under the rule, NVOCCs will still be required to publish their rules with tariff publishing services.