HOLLINGS DROPS OCEAN CARGO SECURITY FEE ARGUMENT FOR NOW

HOLLINGS DROPS OCEAN CARGO SECURITY FEE ARGUMENT FOR NOW    Sen. Ernest F. Hollings, D-S.C., who led the development of new maritime and port security legislation on the Senate side in Congress, has backed off on a proposal for shippers to pay an ocean cargo security fee.
   “While I preferred to include a guaranteed funding source for port security enhancements, I believe it is critical that we approve the essential elements of the legislation before this session ends,” Hollings said in a statement late last week.
   However, “funding issues remain,' he added. “I will continue to work with the administration and my counterparts in the House to meet those needs as soon as possible.”
   Many shipping industry groups applauded the congressional decision, citing difficulties in absorbing additional logistics costs during a down economy.
   The Arlington, Va.-based National Industrial Transportation League, which generally supports the need for increased maritime and port security, said in two letters to key congressional leaders that security fees “would be borne solely by the shippers and receivers of cargo” and “is simply not appropriate or fair.”
   Congress is expected to take up the 2002 Port and Maritime Security Act for a vote when it returns from recess on Nov. 12.