Landstar appeals FMC order

Landstar appeals FMC order Trucking and logistics company Landstar has asked a federal court to review a U.S. Federal Maritime Commission decision that restricts the use of agents by ocean transportation intermediaries (OTIs).
   The petition was filed by Landstar Express America and Landstar Global Logistics, two non-vessel-operating common carrier subsidiaries of the Jacksonville, Fla.-based trucking company, on April 14 at the U.S. Court of Appeals for the District of Columbia.
   They seek a review of the FMC’s 3-1 decision on Feb. 15 in a proceeding initiated by Winnsboro, Texas-based forwarder and NVO Team Ocean Services.
   Landstar obtained a letter from the FMC’s general counsel in January 2006 that indicated companies providing ocean transportation services through an agency relationship would not be required to obtain their own OTI license.
   Team Ocean also wanted to use agents, but asked the FMC for a written declaratory order to clarify the issue. It was supported in its request by both Landstar and the National Customs Brokers and Forwarders Association of America.
   The FMC said the general counsel’s letter was incorrect, saying it had been based on agency law and had not taken into account the Shipping Act of 1984 and other factors.
   The majority of commissioners said OTI services must be performed only by licensed OTIs, saying a significant change in agency practice could “undermine the commission’s contribution to homeland security efforts and move against the current trend toward more effective regulation in support of a secure and transparent supply chain.”
   For more on this issue see the May American Shipper, page 30.