Lidinsky proposes Shipping Act reforms

Lidinsky proposes Shipping Act reforms    Federal Maritime Commission Chairman Richard A. Lidinsky has forwarded a wide-ranging set of recommendations for revising the Shipping Act of 1984 to the House Subcommittee on Coast Guard and Maritime Transportation.

Lidinsky

   Included in the recommendations to committee Chairman Rep. Elijah E. Cummings, R-Md., are six proposals:
   ' Bring container and chassis lessors within the ambit of the FMC, so the FMC would have more investigatory power of the industry and also prohibit them from engaging in 'unfair, deceptive or anticompetitive acts or practices.'
   ' Modify language in the Shipping Act so that either party claiming a service contract dispute could request mediation before the FMC, or if both parties agree, binding arbitration.
   ' Prohibit 'unfair or deceptive practices in ocean transportation, including practices involving excessive cargo rolling, canceling bookings, or imposing certain surcharges' and 'unreasonably refusing to accept third-party equipment.'
   ' Amend the Shipping Act's stated purpose to include protecting importers, exporters and consumers. This conforms the law to the FMC's existing mission statement.
   ' Address Internet scams targeting consumers moving household goods by giving the FMC the ability to go after companies that advertise themselves as ocean transportation intermediaries if they are not bonded or licensed by the FMC.
   ' Increase maximum civil penalties against persons violating the Shipping Act from the $5,000 specified in the statute (the penalty is automatically adjusted for inflations and now is actually at about $8,000) to $25,000, and for willful and knowing violations from $25,000 (now at about $40,000 adjusted) to $75,000.

Gatti

   Peter Gatti, executive vice president at the National Industrial Transportation League, the country's largest organization for shippers, said, 'We have not had an opportunity to run it by our members, but based on problems that have been identified, they are a positive attempt at addressing the concerns of importers and exporters' identified in an investigation undertaken by FMC Commissioner Rebecca Dye earlier this year.'

Dye

   In March, Dye initiated an investigation into vessel and container availability for U.S. importers and exporters after complaints about container shortages, inability to get cargo on ships, and cargo being 'rolled.'
   On June 30, Dye and Lidinsky testified to the subcommittee and shared the preliminary results of that investigation.
   Cummings requested that Lidinsky provide a list of reforms that the Congress might make short of a full-blown rewrite of shipping regulation, and the six recommendations are in response to that request.

Koch

   Like Gatti, Chris Koch, president of the World Shipping Council, the major organization representing liner companies in the U.S., said he had just received a copy of Lidinsky's suggestions and 'we intend to review the suggestions.'
   Lowry Crook, counsel to Lidinsky, said the FMC wanted increased visibility into the container and chassis business because of the critical role they play in the shipping industry. He noted Lidinsky worked for the container leasing company Sea Containers for about 20 years.
   'He is not proposing they be licensed or bonded,' he noted. 'They would be subject to potential reports and a prohibition against unfair, deceptive, or anticompetitive acts or practices.'
   The Shipping Act says, 'Unless the parties agree otherwise, the exclusive remedy for a breach of a service contract is an action in an appropriate court.'
   Lidinsky's recommendations propose modifying that so that the FMC may make available alternative dispute resolution services upon the request of one or more of the parties to a service contract.
   The proposal said that upon the request of a party to the contract, the FMC would convene mediation through its Consumer Affairs and Dispute Resolution Services office.
   If both parties agreed, the commission could also conduct binding arbitration.
   Both mediation and arbitration would be confidential. ' Chris Dupin