FMC receives translation of Chinese maritime rules

FMC receives translation of Chinese maritime rules    The U.S. Federal Maritime Commission has received an official translation, at least in part, on how U.S. shippers may be impacted by the Chinese government's new rules placed on carriers moving export cargo from China.
   In February, the National Industrial Transportation League asked the commission for assistance in obtaining additional information and clarification about the rules. Implemented last August, the rules require carriers to file tariff rates and negotiated rates with the Shanghai Shipping Exchange (SSE).
   “While the league has obtained an unofficial translation of the Chinese rules governing the SSE as well as information from one of the liner carriers subject to the exchange, several questions and concerns have been raised by this information, and it is within these areas that the league has asked the commission for assistance,” wrote Peter Gatti, NIT League executive vice president, in a letter to FMC Chairman Richard Lidinsky and his fellow commissioners.
   Among the points the NIT League is seeking additional information:
   ' Whether the SSE or China’s Ministry of Transportation is responsible for administration and enforcement of the rules or disputes arising under the new rules.
   ' How compliance with the rules, which includes a requirement for “normal and reasonable prices,” will be determined.
   ' Confirmation that negotiated, as opposed to tariff rates, will not be protected.
   ' Whether and how confidential service contracts and customer names will be protected from disclosure to other carriers and shippers.

Gatti

   ' How the rules will be enforced and “whether the mere existence of the new rules and/or any actions taken by the Chinese government to enforce the rules are having an impact on the rates applied to China’s export shipping market.”
   The translation from the U.S. embassy in Beijing, titled 'Public Notice Regarding Freight Rate Filing Implementation Measures for International Container Liner Service,' was received by the FMC on Thursday.

Lidinsky

   In a response to the NIT League, Lidinsky said the notice directs the Shanghai Shipping Exchange, as authorized by China's Ministry of Transport, to be the 'agency where freight rates shall be filed' and that its staff 'keep confidential any freight rate information on file that relates to trade secrets.'
   Lidinsky affirmed to the NIT League that the commission will 'continue to request that the embassy obtain the full official English translation of the 'Operational Guideline on International Container Liner Freight Filing' and that the concerns raised in your letter are discussed with the MOT (Ministry of Transport) and SSE.' ' Chris Gillis