FMC SEEKS COMMENTS FOR NCBFAA/IANVOCC PETITION ON TSA CONTRACT PRACTICES

FMC SEEKS COMMENTS FOR NCBFAA/IANVOCC PETITION ON TSA CONTRACT PRACTICES    The U.S. Federal Maritime Commission requests comments from the shipping industry regarding a petition recently filed by the National Customs Brokers and Forwarders Association of America and the International Association of NVOCCs, which calls for the agency to investigate the contracting practices of ocean carriers in the Transpacific Stabilization Agreement.
   The NCBFAA and IANVOCC allege that the TSA’s members violated the 1984 Shipping Act through “discriminatory service contracting practices” against ocean transportation intermediaries.
   The industry groups said the TSA’s members have refused to negotiate with intermediaries or shippers’ association representing their business until after they’ve dealt with the direct-shipper contracts.
   The industry groups also pay “substantially” higher rates than direct shippers, regardless of their freight volumes. They said this is often done through the assessment of general rate increases and peak season surcharges, which apply to intermediaries’ service contracts and not to direct-shippers’ contracts.
   The industry groups said the TSA’s members refuse to negotiate or enter into service contracts with intermediaries at same time as the direct shippers. They said this causes “unreasonable increases in transportation costs.”
   In addition, the NCBFAA and IANVOCC said the TSA’s members appear to be “abusing” their voluntary guidelines authorized under the Shipping Act “by failing to file their true agreements with the commission.”
   If the FMC’s investigation finds that TSA’s members violated the Shipping Act, the NCBFAA and IANVOCC urge the agency to:
   * Issue sanctions against TSA and its members under section 13 of the Shipping Act.
   * Require TSA member lines to pay reparations pursuant to section 11(g) of the Shipping Act to those intermediaries who have been damaged.
   * Seek appropriate “injective relief to enjoin further operation of TSA ” via sections 6(g) and (h) of the Shipping Act.
   Replies to this petition must be sent to the FMC no later than May 28.