Integrators, shippers groups support FMC’s amended NVO rule

Integrators, shippers groups support FMCÆs amended NVO rule    Seven prominent U.S. transportation associations and logistics service providers have filed joint comments with the Federal Maritime Commission approving the commission's proposed rule that would amend a prior FMC rule authorizing non-vessel-operating common carriers to offer and enter into non-tariff-based confidential ocean transportation agreements.
   Signing the joint comments were the Agricultural Ocean Transportation Coalition; BAX Global Inc.; FedEx Trade Networks Transport & Brokerage Inc.; the National Industrial Transportation League; the North Atlantic Alliance Association Inc.; the Transportation Intermediaries Association, and UPS.
   The FMC's amended rule would permit NVOs, when acting as shippers, to enter confidential ocean transportation agreements with other NVOs acting as carriers. The amended rule would also permit shippers' associations that include NVOs as members to enter into such agreements with other NVOs acting as carriers.
   'The joint commenters thank the commission for its expeditious handling of this matter, saying that the proposed amended rule 'will foster greater competition in the industry by permitting NVOs to compete against vessel-operating common carriers in securing the business of both individual NVOs, acting as shippers, and shippers' associations with NVO members,' the seven groups said in their joint remarks.
   'It is widely recognized that confidential service contracts are the preferred means for conducting ocean transportation in the liner trades, but currently only vessel-operating common carriers may offer confidential contract rates to all classes of shippers — including beneficial cargo owners, shippers' associations and NVOs,' the joint commenters explained.
   Without the amended rule, 'vessel-operating common carriers will continue to enjoy a distinct commercial advantage in attracting the business of shippers' associations with NVO members and other NVO-shippers who prefer to tend cargo under confidential arrangements,' the commenters told the FMC.
   They told the commission that any concerns that NVO service arrangements 'between NVOs (as shipper and carrier) present the opportunity for collusion by such parties are adequately addressed by application of the antitrust laws' to such service arrangements.
   'Removing restrictions on NVOs acting as a shipper party would also promote commerce by expanding the opportunity for customized ocean transportation services for NVOs (as shippers),' the commenters said.
   They urged the FMC 'to move swiftly toward final implementation' of its proposed amended rule.