NVOs demand confidential contracts
Source: Journal of Commerce On-Line
August 3, 2004
WASHINGTON -- A coalition of third-party logistics providers and national trade associations renewed their push to have the Federal Maritime Commission change regulations to allow non-vessel operating common carriers to enter confidential contracts with their customers.
In a petition to the FMC Monday the group urged the agency to act "without further delay" to provide exemptions to the Ocean Shipping Reform Act, last amended in 1998. The act allows confidential service contracts to be signed between ocean carriers and their customers, but not between NVOCCs and their customers.
"The parties to this motion have had substantial discussions
and are now united in their belief that the commission should
adopt, without further delay, a conditional exemption from tariff
publications for NVOCCs," the group said in its filing.
The letter was signed by the National Industrial Transportation
League, the Transportation Intermediaries Association, United
Parcel Service, FedEx Trade Networks Transport and Brokerage,
C.H. Robinson Worldwide and BDP International.
"This change is totally justified based on the extensive
record that has already been developed over the past year,"
Peter J. Gatti, executive vice president for the NIT League
said Tuesday morning. "In this regard, our submission raises
no new issues and therefore no investigation or further examination
is needed. And that based on these reasons, the commission needs
to act as expeditiously as possible."
Members of the group noted that UPS first filed with the FMC
seeking an exemption last July 25. Since then, other petitions
have been filed with the FMC, which has sought additional comment
several times.
"The last word we heard from the agency was in January,"
Gatti said. "The need for the change cannot be further
delayed, the time for the agency to act is now."
Monday's submission was borne out of frustration that the FMC
has yet to act on the issue, said representatives of the organizations
that signed the petition.
The petition includes an exemption proposal that would provide
a common approach to provide NVOCCs with greater pricing flexibility.
A spokesman for the FMC was not immediately available Tuesday
morning for comment.
By Andrew Beadle



