FMC’s Doyle supports increased scrutiny of Pacific Port agreement

Ocean carrier and terminal operator members of the PPOIA agreement could be asked to provide additional information as the Federal Maritime Commission continues to diagnose the root causes of West Coast port congestion.    William Doyle, one of the five Federal Maritime Commissioners, told agriculture shippers Thursday that he will be advocating the agency take a Section 15 action to gather information from ocean carriers calling West Coast ports.
   Speaking at the annual meeting of the Agriculture Transportation Coalition (AgTC) in San Francisco, Doyle told shippers that over the past year the FMC has been “working to help alleviate port congestion. And addressing port congestion is my top priority.”
   “2015 is shaping up to become the year of agreements,” said Doyle, with ports and terminal operators filing agreements to work together. The Port of Los Angeles and Port of Long Beach filed such an operational agreement; the Port of Seattle and Port of Tacoma have formed the “Northwest Seaport Alliance.” Container carriers and terminal operators up and down the West Coast formed the Pacific Ports Operational Improvements Agreement (PPOIA).
   “I enthusiastically supported PPOIA. It allows for discussion between the parties, both carriers and marine terminal operators, in order to reduce port congestion on the West Coast,” said Doyle. “Who can argue with that?”
   “However, just yesterday I supported the Commission taking action. In closed session, the Commission directed staff to prepare for consideration and approval, an order to require the ocean carrier members of the PPOIA agreement to submit certain data and information relevant to the Commission’s oversight responsibilities and further assessment of the competitive impact of the agreement.
   “We don’t take our hands off the wheel just because an agreement has gone into effect,” said Doyle.
   Doyle explained that as the FMC has attempted to diagnose the root causes of port congestion that plagued West Coast ports in 2014 and 2015, ocean carriers and terminals have pointed fingers at each other.
   Last year, the FMC held a series of forums on port congestion and issued a report in April on detention and demurrage. A more comprehensive report on congestion is due to be released “any day now,” said Doyle.
   The April report said in addition to requiring carriers to report under Section 15, the FMC could take a variety of other actions.
   FMC Chairman Mario Cordero told American Shipper earlier this week that he is “inclined to look at that Section 15 order process, but I don’t want to make any preliminary calls.”
   Cordero expects the FMC’s general counsel to provide a memorandum in the next month on viable action the agency FMC may take.
   Doyle noted that the FMC has received two letters from the AGTC concerning demurrage and detention charges and several visits by Peter Friedmann, the group’s executive director.
   “I call on industry stakeholders to weigh in and inform the commission as to the kind of action desired, if any. Should members of the Agricultural Transportation Coalition or other industry stakeholders wish to file a written petition with the commission regarding these matters, the petition must: set forth the petitioner’s grounds of interest in the subject matter; clearly and concisely describe the nature of the relief desired; include any relevant facts, views, arguments, statutes, and data; and be verified (sworn). What the Commission needs is actionable evidence – anecdotes are informative but not enough – so that we can ensure fair, efficient and reliable international ocean transportation,” Doyle told meeting attendees.