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Wednesday, December 11, 2019

Federal Maritime Commission News

FMC Steps Up Oversight in the Commonwealth

Commission Expresses Concerns about Puerto Rico Terminal Facilities Agreement.An agreement filed at the Federal Maritime Commission allowing a joint venture between two adjacent terminals at the Port of San Juan, Puerto Rico, will go into effect on August 29. However, concerns about the agreement and its impact on the marketplace will lead the FMC to adopt a more vigorous oversight plan than its traditional monitoring program.Under the terms of the Puerto Nuevo Terminals LLC Cooperative Working Agreement (FMC Agreement No.

Attendees represent the competition authorities responsible for regulating international liner shipping in the world’s largest liner trade lanes.

Fourth Global Regulatory Summit Held at FMC

Senior government officials from the European Union (EU), the People’s Republic of China (PRC), and the United States met Wednesday at the Washington, D.C. headquarters of the Federal Maritime Commission (FMC) to participate in the Fourth Global Regulatory Summit.Attendees represent the competition authorities responsible for regulating international liner shipping in the world’s largest liner trade lanes. The delegations were led by Director Henrik Morch from the Directorate General for Competition of the European Commission and Deputy Director-General YI Jiyong of the Water Transport Bureau…

FMC Issues Notice to Passengers on Cuba Itineraries

The Federal Maritime Commission (FMC) is aware that passenger cruise lines that called Cuba have amended itineraries to comply with amendments made to the Cuban Assets Control Regulations announced in the Federal Register on June 5, 2019.Passengers with questions related to a voyage they have booked should contact their travel agent and/or cruise line directly.Cruise passengers should always carefully read their ticket contract, which states the cruise line’s obligations with respect to canceled voyages.

U.S. Secretary of Transportation, The Honorable Elaine L. Chao (Photo: USDOT)

Chao to Receive AOTOS Award

The United Seamen’s Service  announced that U.S. Secretary of Transportation, The Honorable Elaine L. Chao, will receive the 2019 Admiral of the Ocean Sea Award based on her career-long commitment to the maritime industry. The other, previously announced recipients are James Given, President of the Seafarers International Union of Canada; Anil Mathur, President and CEO of Alaska Tanker Corp.; and Joseph Pyne, Chairman of the Board of the Kirby Corporation.The award will be presented at the 50th annual AOTOS gala at the Sheraton New York Times Square Hotel, New York City, on November 1, 2019.

Image: North of England P&I Club

US Shutdown Impacts Shipping: North P&I Club

US Coast Guard and other federal agencies are operating at a reduced capacity following US government shutdown, said North of England Protecting and Indemnity Association (North P&I Club).Since 21 December 2018, the US Government has been in shutdown following the failure of Congress to agree federal funding. With no end in sight, it is the longest shutdown in US history, it said."We have not received any indications as yet that the shutdown is causing significant disruption to shipping," said a statement from North P&I Club.

FMC Offices Closed due Partial Federal Shutdown

The Federal Maritime Commission is closed effective Wednesday, December 26, 2018 as part of the partial federal government shutdown due to a lapse in appropriations. The Commission will resume normal operations when appropriations legislation is enacted and the federal government reopens.With the exceptions of Acting Chairman Michael A. Khouri and Commissioner Rebecca Dye, who are Presidentially-appointed, Senate-confirmed officials, all Commission employees have been placed on furlough and are prohibited by law from performing any duties during the shutdown.

File Image: the port of Los Angeles / CREDIT: Adobestock / © Ginton

FMC: Updates to PierPass Will Go Into Effect

The Federal Maritime Commission voted to take no action to prevent amendments to the West Coast MTO Agreement (WCMTOA) related to "PierPass" from becoming effective.Under the terms of the updated agreement (FMC Agreement No. 201143), WCMTOA will replace the current two-tier PierPass fee structure with a uniform flat fee applicable to certain container moves on all shifts. It will also establish appointment systems for dray truckers serving marine terminal facilities at the Port of Los Angeles and the Port of Long Beach.As part of its vote…

The GTT USA Terminal at Port Canaveral. FL

From Desert to Delaware

Gulftainer strives for top six in terminals.Sharjah is a glimmering city-state carved from the desert, the third largest emirate in the United Arab Emirates and the only one to have land on both the Persian Gulf and the Gulf of Oman. And soon, within weeks, a company based in Sharjah could control one of the most strategically located marine ports in the United States. Gulftainer through its subsidiary GT USA, Wilmington has inked a deal with the State of Delaware, USA, which would grant GT USA…

A typical, well-maintained intermodal chassis. (CREDIT: TRAC)

Ports in SC & GA to Establish Common Chassis Pool

The South Carolina Ports Authority and Georgia Ports Authority will be able to establish a common chassis pool serving customers throughout the Southeast as the result of the Federal Maritime Commission (FMC) voting today to take no action to prevent the Southern States Chassis Pool Agreement (SSCPA, FMC Agreement No. 201262) from becoming effective.The SSCPA was filed at the Commission on June 18, 2018 with an effective date of August 2, 2018.Under the terms of the agreement…

© Jelle van der Wolf / Adobe Stock

New Rule Creates Flexibilities for NVOCC Agreements

A Final Rule published today by the U.S. Federal Maritime Commission (FMC) offering deregulatory flexibilities for non-vessel-operating common carrier (NVOCC) negotiated rate arrangements (NRAs) and NVOCC service arrangements (NSAs) will go into force on August 22, 2018.The key changes to NRAs allow them to be amended at any time; allow the inclusion of non-rate economic terms; and, allow an NVOCC to provide for shipper’s acceptance of the NRA by booking a shipment. NSAs will…

Port of Long Beach Executive Director Mario Cordero

Long Beach, Oakland Port Bosses Seek Help

Mario Cordero, Chris Lytle want policy and funding for clean air, infrastructure. Two of this nation’s highest-ranking port executives want continued government support for maritime industry clean air efforts and infrastructure development. They made that pitch this week in Oakland to an audience of 100 at the Pacific Transportation Association. Port of Long Beach Executive Director Mario Cordero and Oakland counterpart Chris Lytle called for government aid and policy direction.

South Carolina Ports Authority president and CEO Jim Newsome

SC Ports CEO Sounds Off on Southern States Chassis Pool

“The South Atlantic Chassis Pool was formed in 2006 as a way to more efficiently handle the provision of chassis for the movement of containers in the Southeast. Today, this pool provides about 40 percent of the chassis offered in CCM managed pools. While this pool has historically been an effective solution to chassis provision, the current fleet is both aging and has not kept up in size with the growth of containerized trade in the Southeast. Additionally, chassis provision…

JIM MACLELLAN  Photo  Los Angeles Area Chamber of Commerce

MacLellan wins Stanley T. Olafson Award

The Los Angeles Area Chamber of Commerce announced today that Jim MacLellan, director of trade development for the Port of Los Angeles, will be awarded the prestigious Stanley T. Olafson award at the 92nd annual World Trade Week Kickoff Breakfast on Friday, May 4. Appointed as the director of trade development for the Port of Los Angeles in 2007, Jim MacLellan is responsible for trade programs to encourage increased trade through the Port of Los Angeles and the Southern California Gateway.

(Credit: GLDD)

US Dredging: An Advocate for Ports, Waterways & Coastal Protection

U.S. dredging companies are unlocking the potential of U.S. Ports. These companies build their equipment in U.S. shipyards, are owned by U.S. companies and staff their ships and projects with hardworking Americans. U.S.-based Dredgers build to suit the needs of the United States. We all know that it takes a significant amount of time to complete an environmental analysis before a dredging project can commence. This usually means that an environmental impact statement (EIS) under the National Environmental Policy Act of 1969 (NEPA) must be undertaken.

Lee Named Partner at Holland & Knight

Eric Lee has been elevated to partnership in Holland & Knight’s Washington, D.C., office. Lee brings extensive experience in domestic and international shipping, supply chain services and logistics, as well as in a broad range of corporate, commercial and regulatory matters to bolster the firm's international trade, maritime, transportation and energy groups. As a member of the international team, Lee helps companies in the supply chain, logistics and other transportation services industries, including maritime, air, road and rail.

© Adobe Stock

FMC Approves Filings by the New York Shipping Exchange

In December 2017, the U.S. Federal Maritime Commission voted to allow the New York Shipping Exchange (NYSHEX) to move forward with two agreements it filed pursuant to the Shipping Act. The first filing is based on an agreement by ocean common carriers to participate on the NYSHEX Exchange Board. This authorizes the parties to develop, manage, market and operate a digital freight contracting process, called the New York Shipping Exchange, through participation on the Board of NYSHEX. Parties to the agreement are CMA CGM SA; Hapag Lloyd AG; Mitsui O.S.K.

Mario Cordero

West Coast Intermodal Update: Mario Cordero

POLB Executive Director Mario Cordero weighs in from his new West Coast chair, on the most pressing issues of the day. Arguably the industry authority from both the regulatory and commercial sides of the equation, his opinion carries weight and, sometimes, surprises. It has been a busy year at the port of Long Beach, Calif. Lou Anne Bynum, Harbor Commission President at the Port of Long Beach, declared in early October, “Simply put, we are having the best trade months in port history.” Indeed, the port moved more containers last month than in any September in its history.

Willima P. Doyle, U.S. Federal Maritime Commissioner

FMC's Doyle to Exit Commission in January, 2018

Today, the Office of Commissioner William P. Doyle of the U.S. “Last week, I notified The President of the United States Donald J. Trump of my intention to leave the Federal Maritime Commission effective January 3, 2017. It has been an honor and a privilege to continue serving in the Trump Administration. I thank President Barack Obama for nominating and appointing me twice as a Commissioner. “I am proud to have worked alongside my fellow Commissioners and with such a dedicated and hardworking Commission staff.

(© Marco 2811 / Adobe Stock)

Hong Kong Follows US FMC Lead on Liner Sharing Data

Maintaining Separate Identities and Sharing of Competitive Information in U.S. Since the advent of the proposed, but never implemented, P3 Alliance in 2013, the sharing of commercially sensitive information between parties to a vessel sharing agreement (VSA or Alliance) has been a hot topic. The proposed P3 Network Vessel Sharing Alliance (P3 Alliance) would have consisted of Maersk, CMA CGM and Mediterranean Shipping Company (MSC); the world’s three largest ocean carrier companies by volume of containers carried.

(File photo: A.P. Moller - Maersk)

Maersk Temporarily Exempt from Service Contract Filings

I voted in favor of Maersk Line A/S’ petition for Temporary Exemption Service Contract Filings as a result of the so-called Petya virus which severely disrupted Maersk’s information systems, including the system that stores service contract data. Due to this cyber attack, Maersk Line had been unable to determine which shippers to contact in order to extend or renegotiate certain service contract rates. Further, even if Maersk was able to identify which contracts needed attention, the company was not be able to electronically file the documents because of the damage caused by the virus.

(Photo: Hapag-Lloyd)

FMC Commissioner Doyle Weighs in on THE Alliance Proposed Amendment

Federal Maritime Commissioner William P. Doyle issued a statement addressing THE Alliance’s filing of an amendment to add further detail to protections in the event of an insolvency. I am pleased that The Alliance is seeking Federal Maritime Commission authority to form, contribute funds to, develop rules for, and administer a contingency fund designed to protect against the effects of one of the parties experiencing financial distress or an insolvency event. Parties to THE Alliance Agreement (Agreement No.: 012439) filed an amendment with the Federal Maritime Commission on August 7…

FMC Commissioner William P. Doyle

Cyber Attacks Threaten Shipping & Dominate Maritime News

The maritime industry must redouble its efforts to secure IT systems and data. In June, Maersk Line A/S’s information systems were severely disrupted by the so-called Petya virus. FMC provided Maersk with relief to help them get through the difficult situation. In Mid-July, a researcher penetrated a ship’s internet system through its very small aperture system (VSAT). The ship was operating in the South America trade. An internet security researcher identified as “x0rz” discovered that many shipboard VSAT systems can be penetrated through the public internet…

File Image: A rendering of Crowley's ultra modern Commitment Class ConRo vessels, built especially to accomodate the unique needs of the Puerto Rico freight model. (CREDIT: Crowley)

FMC's Doyle Weighs in on U.S. Merchant Marine, 2017 Hurricane Relief Efforts

Today's address by FMC commissioner William P.Doyle brought transparency to the massive U.S.-based efforts expended during this hurricane season at the 17th Annual Port Industry Day conference in Jersey City, NJ. Good Morning New York and New Jersey. It’s a great day here in Jersey City. I know that Secretary of Transportation Elaine Chao really wanted to attend the 17th Annual Port Industry Day conference today. Even with a long-standing commitment, she tried to make her schedule work. Secretary Chao is a good friend. Before I begin, I want to address this year’s hurricane season.

(File photo: Wallenius Wilhelmsen Logistics AS)

Fiat Chrysler Sues Shippers over Alleged Price Fixing

The automaker wants the Federal Maritime Commission to order payments from Wallenius Wilhelmsen Logistics AS and its sister company EUKOR Car Carriers Inc, Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines Ltd, Compania Sud Americana de Vapores, Hoegh Autoliners AS and affiliated companies. Fiat Chrysler filed its complaint on Oct. 17. All but one of the shippers sued by Fiat Chrysler pleaded guilty and admitted to price fixing as part of a Justice Department investigation. The remaining firm, Hoegh, agreed last month to plead guilty and pay a $21 million criminal fine.

(Photo: NWSA)

Northwest Seaport Alliance: Innovative, Ideally Located and Together as One

Located in the Pacific Northwest in Washington State, The Northwest Seaport Alliance joining the deep draft ports of Seattle and Tacoma offers shorter U.S.-to-Asia transits, as well as a deep connection to Alaska. And, a lot more. In an era where the fiercely competitive business of global trade is changing in ways that could not have been imagined just one decade ago, ports, terminals and their collective stakeholders are rethinking how to also remain relevant. Shifting liner alliances…

The CMA-CGM Ben Franklin, an 18,000 TEU containership, was, in 2015, the largest vessel to call on a U.S. port.) (Photo: Marad)

Managing the New Panamax Containerships

The explosive growth of international boxships is challenging not only the physical infrastructure of North American ports, but also the very nature of the existing supply chains that they impact. The recent dialogue on container shipping has been all about so-called “mega-ships;” those vessels that with larger capacity than those that are already in service at any point in time. In the container trades, as in tanker and drybulk arenas, ocean-going vessels are one link, albeit an important component, within broader supply chains.