U.S. FMC WATCHES OUT FOR INNOVATIVE SERVICE CONTRACTS

U.S. FMC WATCHES OUT FOR INNOVATIVE SERVICE CONTRACTS

   The Federal Maritime Commission said that it is trying to identify any innovative and creative approaches that are developing in the terms and provisions of new service contracts, following the enactment of the Ocean Shipping Reform Act on May 1.
    The reform has spread the use of individual service contracts and the FMC has been inundated with service contract filings since May 1, said Harold Creel, chairman of the FMC.
    In May and June alone, 15,000 service contracts were filed. The FMC expects to receive approximately 29,000 service contract filings between May 1 and Sept. 30, as well as some 35,000 contract amendments.
    The key terms of service contracts are filed confidentially with the FMC. Creel said that the FMC intends to perform an overall assessment of the impact of the Ocean Shipping Reform Act.
    The FMC reported that it is currently dealing with approximately 300 new applications for ocean transportation intermediary licenses, and almost 4,000 "grandfathered companies" which are being re-licensed.

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