FMC plans look at slow steaming

FMC plans look at slow steaming    Federal Maritime Commission Chairman Richard Lidinsky said the agency plans this year to look at slow steaming’s effect on the U.S. supply chain and environment.
   In a statement Tuesday and interview with American Shipper, Lidinsky reviewed the commission’s work in the past year and plans for 2011.

Lidinsky

   ‘We also want to, importantly, see if savings being gained by the carriers are being shared with the shippers, if there has been reduced surcharge activity based on the slow-steaming savings,’ he said. ‘It will be a very wide-reaching snapshot of slow steam activity.’
   Last year the FMC allowed container line members of the Transpacific Service Agreement to establish a forum to discuss ways to reduce vessel-related pollution including implementation of ‘slow steaming.’
   Lidinsky recalled he had recently seen an article quoting a European shipper attacking slow steaming. But, ‘I’ve yet to see a U.S. group formally complain about it, so my impression is that people have become accommodated to it, and support it in a general economic and environmental sense, so will have to see what the carriers have to say.’
   The commission will seek wide-ranging public input, but has not decided how to go about that — it could involve a formal notice of inquiry or a hearing, for example.
   The FMC is also soliciting public comments on the effect of the European Union’s 2008 decision to repeal its block exemption for shipping liner conferences.
   At a meeting of the European Maritime Law Organization in Dublin in October there was ‘a great deal of discussion and interest in this study’ because it is the first comprehensive look at ending antitrust immunity for conferences in Europe, Lidinsky said. The FMC is soliciting comments through Jan. 18 from carriers, shippers and other parties in the United States as well as those based outside the country.

Dye

   He said the agency would continue to implement recommendations growing out of its fact-finding investigation led by Commissioner Rebecca Dye into capacity constraints faced by shippers in late 2008 and early 2009.
   The FMC has no plans to release a more comprehensive report, despite criticism from the National Industrial Transportation League, the nation’s largest shipper group, which asked for fuller disclosure of the study’s findings, while preserving confidentiality.
   ‘Other than the NIT League, I’m not aware of any other organization that was as questioning or critical about the general summary of the findings,’ Lidinsky said. ‘In fact, we, Commissioner Dye, received many messages of support. I think everyone is entitled to their own opinion and we are a government agency and used to be questioned and second guessed.’
   He said additional information is likely to be released as the commission implements recommendations growing out of the study. FMC staff is preparing proposals for increased monitoring of global vessel alliances.
   The commission approved Dye’s report and recommendations were last month by a 3-1 vote, with Commissioner Joseph E. Brennan voting against adoption.

Brennan

   According to his counsel, Steve Najarian, Brennan was “ready to accept the report and praised the hard work of Commissioner Dye and her staff. It was his preference, however, for the commission to first release a public version of the report and then to hold a public hearing. At such a hearing, industry participants would have been able to comment on recommended solutions to the problems of insufficient containers and ship space.”
   Brennan questioned “whether shippers and carriers will be receptive to the setting up of working group subcommittees to be facilitated by the FMC staff.”
   Lidinsky said he did not know if someone in Congress is likely to reintroduce legislation similar to the Shipping Act revision introduced by former Congressman James Oberstar, D-Minn.
   ‘The central core issue for me under Shipping Act is service contract resolution and jurisdiction. There is a school of thought that you do not need to amend the Shipping Act, you can do that by mutual agreement in the service contract,’ he said.
   The FMC said it plans to assist U.S. exporters and importers in improving their service contracting practices.
   ‘This project will be a top priority as shippers enter the service contract negotiation season in late spring,’ the agency said.
   It is also working to form and begin meetings of working groups on international ocean transportation.
   At its next meeting the FMC is likely to also consider whether to discontinue monitoring of port restrictions on carriers in the U.S./Japan trade.
   The FMC will also celebrate the 50th anniversary of its creation as an independent agency by President John F. Kennedy in 1961. It plans to hold a series of events, starting with a roundtable of former FMC chairmen on Feb. 2. ‘ Chris Dupin