FMC tells TSA, WTSA to continue filing reports

FMC tells TSA, WTSA to continue filing reports    The U.S. Federal Maritime Commission has ordered the Transpacific Stabilization Agreement and the Westbound Transpacific Stabilization Agreement to continue to file verbatim transcripts of selected meetings through April 30, 2012.
   The FMC first ordered the two discussion agreements on Sept. 3 last year to send transcripts of meetings to it for a year, saying it wanted to keep closer tabs on the TSA, which it said controlled 94 percent of    eastbound transpacific capacity, and the WTSA, which it said controlled 60 percent to 65 percent of westbound capacity.
   The commission, in explaining its action last September, said container carriers were slow to restore capacity in late 2009 and early 2010, resulting in “serious supply chain disruptions for American importers and exporters.” Some shippers “experienced cargo bookings under annual service contracts in the U.S./Asia trades that were abruptly cancelled, denied or rolled to a later voyage.”
   The FMC said its decision to extend the request for transcripts through April 30 “will provide important information as carriers enter the traditional September-October peak season, potentially reduce transpacific capacity in the traditional slack season, and then begin annual service contract negotiations for the next year.”
   FMC said it is reducing the type of meetings it is asking transcripts for, but said the extension “through the remainder of the current annual service contract period will provide the commission with information relating to potential equipment availability issues, capacity changes, and any conduct that is likely, by a reduction in competition, to produce an unreasonable reduction in transportation service or an unreasonable increase in transportation cost.”

Dye

   The FMC conducted a fact-finding investigation into the problems shippers experienced in 2009-2010, which was led by Commissioner Rebecca F. Dye.
   But Dye voted against the decision by the other four FMC commissioners to extend the order.
   “The ocean carrier capacity shortages and related concerns which led to Fact Finding 26 and formed the justification for the Sept. 3 commission order do not exist at this time,” she said. “If future market conditions in international ocean transportation raise commission concerns involving the TSA and the WTSA agreements, I would support reinstituting the requirement for verbatim transcripts of certain TSA and WTSA meetings.
   “However, I do not believe the commission has justified extending last year's verbatim transcript requirement under our limited authority for alternative periodic reporting requirements.” She added that if the commission supports extension of the verbatim transcript requirement for unrelated reasons, the commission should begin a notice and comment proceeding on the matter.” ' Chris Dupin