Khouri: Shipping needs cost-efficient regulation

Khouri: Shipping needs cost-efficient regulation

Khouri

   Michael A. Khouri, President Obama’s nominee for Federal Maritime Commissioner, said he saw three major challenges for the agency going forward.
   Speaking during a confirmation hearing before the Senate Committee on Commerce, Science, & Transportation Tuesday afternoon, Khouri said the challenges are:
   ' Global recession. “The commission must carefully monitor rate activity and reduce non-value-added cost burdens when and where possible. Shippers need lowest cost transportation solutions, ocean transportation intermediaries need regulatory oversight that is as efficient as possible and carriers need some opportunity to earn a minimum return,” he said.
   ' Controlled carriers. “Some trade lanes have seen increased levels of controlled carrier capacity. The commission will want to be diligent in monitoring trade, service and rate activity in these trade lanes with a focus on identifying any emerging abusive activity.”
   ' Future growth. “This recession will abate and global growth will return. As trade volumes increase our ports will see congestion and will strain to efficiently handle the volume. The FMC can begin to model that growth and assist with efficient regulatory processes that can facilitate the seamless movement of container trade.”
   Some of that trade may come up the Mississippi River to inland ports, said Khouri, an attorney in Louisville with the law firm Pedley & Gordinier. He noted he has combined his law degree with practical experience working his way up from deck hand to towboat captain to eventually become general counsel of American Commercial Lines and later, president and chief operating officer of MERS/Economy Boat in Memphis.
   Khouri attracted few questions in a hearing that included four other nominees, but in response to questions from Sen. Jay Rockefeller about cargo security, he noted the FMC carefully tracks ocean traffic intermediaries and provides information on those companies to Customs and the Department of Homeland Security “to address the national security interests that we are all concerned with.”