U.S. FMC TO MEET NOV. 9 ON CHINA SANCTIONS; ACTION AGAINST OPT-OUT LINES

   The U.S. Federal Maritime Commission will meet Nov. 9 in a closed
session to review sanctions against China, proposed by the FMC’s office of general counsel, for alleged trade restrictions imposed on U.S. and other non-Chinese carriers.
   The FMC told its general counsel, Tom Panebianco. to prepare sanctions against Chinese maritime-related companies to retaliate against the unfair practices. Sanctions could include barring Chinese ships from calling U.S. ports, suspension of tariffs, or fining Chinese ships up to $1 million each time they call an U.S. port.
   China is accused of forcing non-Chinese carriers to wade through months of red tape to gain access to new ports, limits in establishing offices in inland locations and ports served by transshipment, and not being allowed to open branch offices without meeting special requirements.
   The commission will also review a recommendation made by FMC enforcement attorney last summer against nine ocean carriers belonging to the now defunct Asia North American Eastbound Rate Agreement.
   The ANERA carriers allegedly violated the U.S. Shipping Act of 1984 when they opted out of service contracts during last year’s peak transpacific shipping season. The lines could face millions of dollars in fines if the FMC decides against the carriers.
   The enforcement attorney’s recommendations followed an investigation, headed by Commissioner Del Won, in which the commission determined that the carriers discriminated against shippers — especially small shippers and non-vessel-operating common carriers — by either refusing to provide shippers space or charging rates above what were negotiated in the service contracts.
   Won will not take part in the ANERA review. He recused himself from voting in the opt-out case after the transpacific lines complained that he had prejudged the issues in comments made in the maritime trade press.