The Federal Motor Carrier Safety Administration (FMCSA) on May 20 will host a public roundtable on property broker and freight forwarder financial responsibility, focusing on existing trust fund industry practices, federal requirements in the arena, and the “underlying instruments” issued for use by property brokers and freight forwarders submitting FMCSA Form BMC-85 to satisfy the agency’s financial rules, FMCSA said (here). The agency is seeking information from motor carriers and shippers that have encountered difficulties receiving compensation for claims against freight forwarders and freight brokers due to insufficient funds, it said. “This meeting does not pertain to increasing motor carrier, broker, or freight forwarder minimum financial responsibility limits,” FMCSA said. Comments may be submitted by May 11 at www.regulations.gov via Docket ID FMCSA-2016-0102.
The Federal Maritime Commission approved plans to issue a proposed rule on modernizing the agency's "Rules of Practice and Procedure," said the FMC in a news release (here). The proposal is meant to "reorganize several subparts of its rules to better reflect the chronology of a typical adjudication, and to extensively revise the subpart on how hearings are conducted to clarify rules on the presentation of evidence in Commission proceedings," the agency said. The FMC will also issue a final rule "that would permit optional electronic filing of ocean common carrier and marine terminal operator agreements," it said. FMC "staff presented a newly developed web application that will facilitate the electronic agreement filing option under the rule, as well as support a significant upgrade to the Commission’s existing 'FMC Online Agreement Library,'" the FMC said. "The web-based agreement filing system and the upgraded Online Agreement Library will be publicly available when the direct final rule goes in to effect."
The Federal Maritime Commission still hasn't received any official complaints over detention and demurrage fees related to port congestion, said FMC Chairman Mario Cordero during an April 15 speech at the Coalition of New England Companies for Trade (here). A full year since the FMC released a report on detention and demurrage fees charged while a port is congested (see 1504140014), "we still have not received a filing from any shipper or association," said Cordero. Concerns raised to the FMC around the time of the report weren't enough to initiate official action, said Cordero. "To take that step, the FMC needed to receive a complaint or a petition and we made that known as plainly as possible to all concerned parties," he said. Soon after the FMC released its report, industry groups said the agency had enough information to move forward (see 1504280010).
The Pipeline and Hazardous Materials Safety Administration on April 6 issued a reminder (here) that new International Civil Aviation Organization restrictions on the transport of lithium batteries by air recently took effect. As of April 1, lithium ion cells and batteries are prohibited as cargo aboard passenger aircraft (except for batteries contained in personal electronic devices). Also beginning April 1, lithium ion cells may only be shipped at a state of charge of no more than 30 percent of rated capacity on cargo aircraft, and lithium ion and lithium metal batteries may only be offered for transportation under current provisions for small cells and batteries at one package per consignment or overpack, said PHMSA.
The Federal Maritime Commission should go beyond its proposal in relaxing filing requirements for non-vessel operating common carrier service arrangements, said the National Customs Brokers & Forwarders Association of America in March 30 comments to the agency (here). The FMC asked for public comments on proposed changes (see 1602290029) to allow "a service contract amendment to be filed individually and sequentially within 30 days of its effectiveness" or "any number of service contract amendments to be consolidated into a single document, but filed within 30 days of the effective date of the earliest of all amendments contained in the document." The NCBFAA said it does not consider the proposals far reaching enough to provide relief for the NVOCC industry. Instead, the FMC should remove the filing and essential terms publication requirements altogether, it said.
A group of car buyers recently filed a class action complaint (here) with the Federal Trade Commission seeking reparations from major ocean carriers for price fixing in the roll-on roll-off cargo market. The complaint, filed on behalf of “millions” of consumers who purchased cars since 2000 and paid a vehicle carrier service charge, seeks double the amount of injury suffered by car buyers as a result of the alleged price fixing conspiracy. The complaint names Nippon Yusen, NYK Line, Mitsui, World Logistics Service, Hoegh, Nissan Motor Car Carriers, Kawasakia Kisen Kaisha, K Line, Wallenius Wilhelmsen Logistics, Eukore Car Carriers and Compania Sud Americana de Vapores as participants in the scheme. Several carriers, including CSAV and NYK Line, have already paid large fines to settle Justice Department conspiracy charges (see 14030617 and 1501050017).
The Panama Canal Authority will hold its formal inauguration of the expanded Panama Canal on June 26, it said (here). The expansion is “currently 97 percent complete,” with “final testing” set to be conducted in the weeks leading up to the inauguration, it said.
Vessels coming to the U.S. from Cuba will no longer be required to meet various security conditions before entry in the U.S., said the Coast Guard in a notice (here). Based on port assessments last month, the Coast Guard found that Cuba "is now maintaining effective anti-terrorism measures," it said. Since a 2008 Coast Guard finding of "significant risk of introducing instruments of terror into international maritime commerce," vessels that visited Cuban ports during the last five port calls were required to meet a number of additional security conditions before entry to the U.S.
The Transportation Department will close the ongoing public comment period for the draft National Freight Strategic Plan (NFSP) on April 24, DOT said (here). The draft NFSP will include an identification of major trade gateways as well as strategies to improve freight intermodal connectivity, DOT said. DOT issued the request for public comment on Oct. 18, but had not set a comment deadline. DOT intends to issue a final NFSP by the end of July 2016.
The National Association of Manufacturers will create a new working group focused on the international weight verification rules in order to "formally advocate for a clear and logical process to achieve compliance in a reasonable and fair manner," the group said in a news release (here). The NAM members are concerned with the International Maritime Organization rules under the Safety of the Life at Sea Convention (SOLAS) that require shippers to provide verified gross mass as of July 1, the association said. The NAM SOLAS Container Working Group "will partner with other like-minded organizations and seek opportunities to engage policymakers and government leaders here in the U.S. and aboard," it said. Controversy and confusion have grown in recent months over U.S. implementation of the IMO's rules and the Coast Guard's plans for a hands off approach to enforcement (see 1603030014). "There was little transparency and limited input from shippers as this issue worked its way through the IMO over the past few years," the group said. "Manufacturers need more details to begin the process of implementation and achieve compliance. But to reach these practical goals, a partnership is required."