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NVOs demand confidential contracts

Source: Journal of Commerce On-Line

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

Global Network Locator