AISA vows to fight for shippers’ association NSA rights

AISA vows to fight for shippers’ association NSA rights    The American Institute for Shippers’ Association (AISA) says it will continue its efforts in court to prove the U.S. Federal Maritime Commission overstepped its authority when it issued a rulemaking to allow non-vessel-operating common carriers to enter service arrangements with shippers.
   “We’re very confident in our position,” said AISA Counsel Ron Cobert at the group’s annual meeting in Annapolis, Md., Monday.
   The dispute stems from the FMC’s decision to exclude shippers’ associations with NVO members from service arrangements, or NSAs, with other NVOs. The agency reaffirmed its decision in a Feb. 8 denial order stating that no “undue hardship” will be done to shippers’ association.
   Shortly after, AISA and the International Shippers’ Association (ISA) filed individual petitions with the U.S. Court of Appeals for the District of Columbia to review the FMC’s decision to restrict shippers’ associations from entering NVO service arrangements.
   The petitions, in particular, challenge the FMC’s section 16 authority under the Shipping Act. Section 16 allows the FMC to exempt any activity from the requirements of the Shipping Act if it finds the exemption will not result in a substantial reduction in competition or be detrimental to commerce.
   AISA said it did not oppose the initial effort by NVOs UPS, FedEx Trade Networks Transport & Brokerage, C.H. Robinson Worldwide, BDP International and BAX Global, and the trade groups National Industrial Transportation League and Transportation Intermediaries Association to encourage the FMC to allow NVOs to enter NSAs.
   “We have no problems with NVOs from entering service contracts like ocean carriers do,” Cobert said. “It makes sense.”
   But Cobert said the NSA rule should be reversed if shippers’ associations remain excluded from the commercial benefits. “We’re going to keep our eye on the ball,” he said.
   Legal and industry representatives from this group had recently met with the FMC commissioners to try to resolve the concerns of the agency and shippers’ associations before the court battle is waged.
   “We’ll accept anything as long as there are no restrictions on shippers’ associations with NVO members,” Cobert said. But he’s not optimistic the issue can be resolved outside the courtroom. “We’re in litigation at this point,” he said.
   A court hearing is expected soon with a final decision due out by early next year, Cobert said.
   Joseph Saggese, executive director of the North Atlantic Alliance Association, a shippers’ association with about 40 NVO members, believes AISA and ISA have set the stage for the possible rollback of NSAs if the court should rule in their favor.
   NSAs are “a great first step for NVOs,” Saggese said. “We don’t want to throw the baby out with the bath water.”