The Federal Maritime Commission released its final rule amending new ocean transportation intermediary (OTI) licensing and financial responsibility requirements (here). Under the new regulations, OTIs will be required to renew their licenses every three years through an on-line portal beginning in late 2016. The final rule, most of which will be effective Dec. 9, also provides for an expedited hearing process for license denials, revocations, or suspensions.

The Federal Maritime Commission on Oct. 21 voted to move forward with a final rule amending new ocean transportation intermediary (OTI) licensing and financial responsibility requirements, it said in a press release (here). Under the new regulations, OTIs will be required to renew their licenses every three years through an on-line portal beginning in late 2016. The final rule also provides for an expedited hearing process for license denials, revocations, or suspensions. The rule is based on a proposal issued by the FMC in 2014 (see 14100916) that drew criticism from the National Customs Brokers & Forwarders Association of America (see 1412120016). Also in its Oct. 21 meeting, the FMC voted to seek comments on possible modifications to its rules on service contracts and non-vessel operating common carrier (NVOCC) service arrangements, it said.

The Federal Maritime Commission will meet on Oct. 21 at 10 a.m. to discuss "Amendments to Regulations Governing Ocean Transportation Intermediary Licensing and Financial Responsibility Requirements, and General Duties," and other issues, the agency said (here). During a closed session, the FMC will also discuss service contracts and non-vessel operating common carrier service arrangements, it said.

Oslo-based Siem Car Carriers paid the Federal Maritime Commission $135,000 over violations related to its failure to file space charter agreements for roll on-roll off transport services, said FMC in recent days (here). The company has cooperated with the FMC’s Bureau of Enforcement, said the agency. "The carrier has agreed to provide ongoing cooperation with other commission investigations or enforcement actions with respect to these activities,” said the FMC. “All agreements in which Siem Car Carriers currently shares space with other RO-RO operators have since been filed with the commission.”

The West Rail Bridge linking Brownsville, Texas to Mexico opened on Aug. 26, the first of its kind on the U.S.-Mexico border to open in over 100 years, according to local news reports (here). The bridge features an x-ray machine on the Mexican side of the border that CBP is able to monitor, said David Higgerson, CBP Laredo director-field operations, according to the report.

The World Shipping Council published guidelines meant to help shippers understand new international container weight verification rules, said the WSC (here). The rules, which obligate container weight verification before export (see 1501220011), come from the International Maritime Organization and the amended International Convention for the Safety of Life at Sea. Effective July 1, 2016, "the regulations place a requirement on the shipper of a packed container, regardless of who packed the container, to provide the container’s gross verified weight to the ocean carrier and port terminal representative sufficiently in advance of vessel loading to be used in the preparation of the ship stowage plan," WSC said. The vessel operator and the terminal operator are responsible for using the verified gross weights in vessel stow planning and must not load a packed container aboard a vessel for export without a verified gross weight," the WSC said in the guidelines.

The Federal Maritime Commission voted to release a second report on port congestion, the agency said (here). The report "highlights six major themes discussed – investment and planning; chassis availability and related issues; vessel and terminal operations; port drayage and truck turn-time; extended gate hours, PierPASS and congestion pricing; and collaboration and communication," the FMC said. The FMC will post it to the agency site in the near future, it said. The FMC released a report focused on port congestion and demurrage fees in April (see 1504140014).

Several industry groups reiterated demands to end penalty charges assessed for demurrage delays in a June 10 letter (here) to Federal Maritime Commission Chairman Mario Cordero. The organizations asked the FMC to restrict demurrage, detention, and per diem charges on Beneficial Cargo Owners and their motor carriers "when factors beyond the control of the shipper, receiver or motor carrier" cause the delays, they said. The groups previously voiced the concerns in response to the FMC's report on the issues (see 1504140014), though the FMC has yet to address these concerns (see 1504140014). The FMC has the authority to prohibit demurrage or detention fees applied by common carriers or terminal operators when the circumstances are outside the cargo owners' and motor carriers' control, the industries said (see 1504280010). The FMC didn't return a request for comment.

The Federal Maritime Commission should take a narrow approach in dealing with the issue of demurrage and free time, said the World Shipping Council in a letter to FMC Chairman Mario Cordero (here). The group pushed back against the "sweeping claims that the practice of adhering to established free time limits and assessing detention and demurrage during times of serious port congestion is 'unfair and unproductive.'" Such complaints were submitted by industry groups in a recent letter to the FMC (see 1504280010). There are multiple issues involved with port congestion and "it cannot be blamed on the size of ships or vessel sharing alliances," said the WSC. "Resolution of the problems will require a concerted set of actions involving all parties. Those solutions will need to be tailored to the specific problems in specific locations." There's "no regulatory action that will address the combination of causes of port congestion or that can equitably resolve or simplify the various complex market forces trying to deal with the unavoidable issue of cost recovery," it said.

A decrease in the amount of free time given to shippers to drop off or pick up cargo and an increase in demurrage charges may indicate that ocean carriers are using these mechanisms to drive up profits despite increasing congestion at ports, said the National Customs Brokers & Forwarders Association of America in a letter to the Federal Maritime Commission dated May 5. The trade association requested that the commission conduct a detailed fact finding investigation on free time and demurrage to follow up on issues identified in an agency report released April 13 (see 1504140014).