Details of China Carrier's Petition for Exemption from FMC Tariff Reduction Waiting Period
The Federal Maritime Commission has announced the filing of a petition by Hainan P O Shipping Co., Ltd. for an exemption from 46 USC 40703.
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(46 USC 40703 states that except for service contracts, a rate, charge, classification, rule, or regulation of a controlled carrier may not become effective, without special permission of the FMC, until the 30th day after publication.)
Hainan P O is an ocean common carrier currently providing container service outside the U.S. trades. In Mid-August 2010, it will commence operations in the U.S. transpacific trades, initially serving the trades between China, Vietnam, and the Republic of Korea, and the U.S. Ports of Los Angeles and Long Beach and inland points via Los Angeles and Long Beach. Hainan P O is a controlled carrier as defined by the Shipping Act and subject to Section 9 -- Controlled Carriers, 46 USC 40701 -- 40706.
Carrier Seeks Exemption to Reduce Rates without 30-Day Notice
Hainan P O seeks an exemption so that it can lawfully reduce its tariff rates, charges, classifications, rules or regulations effective upon publication. It also notes that the requested relief, if granted, will permit it to operate in the U.S trades on the same terms available to other ocean common carriers, including many controlled carriers that previously have been granted similar relief.
Comments from Interested Parties due by August 20
In order for the FMC to make a thorough evaluation of the petition, interested persons are requested to submit views or arguments in reply to the petition no later than August 20, 2010.
The petition will be posted on the FMC’s website at http://www.fmc.gov/reading/Petitions.asp . Replies filed in response to this petition also will be posted on the Commission’s website at this location.
(In 2004, the FMC granted 3 similar petitions, one in full and two in part. These 2004 petitions were filed pursuant to 46 USC app. 1708 (Controlled Carrier Act). The FMC granted all three petitioners' requests for exemption from the 30-day waiting period. However, in the case of COSCO and China Shipping, the FMC only granted the petitions in part as it refused to make the exemption permanent. The petition filed by Sinolines, which was granted in full, did not request that the exemption be made permanent. See ITT’s Online Archives or 04/07/04 news, 04040715 for BP summary.)
(Petition No. P1-10, filed 07/26/10, FR Pub 07/29/10)