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LOGISTICS LEADERS JOIN TO URGE QUICK FEDERAL ACTION

WASHINGTON, D.C. – The nation’s leading logistics providers and users have jointly asked the Federal Maritime Commission (FMC) to modernize -- without further delay -- outdated regulations that stifle competition and harm companies shipping goods around the world. This issue affects Non-vessel operating common carriers (NVOCCs), their customers, and respective trade associations.

Noting the FMC already has studied the issue for more than a year, the group declared: “It is unnecessary for the FMC to engage in any time-consuming further inquiry, fact-finding or study of the issues.” The parties are asking for the FMC to use its authority to implement a tariff exemption as quickly as possible.

The joint submission was filed late today by BAX Global Inc.; BDP International, Inc.; C.H. Robinson Worldwide, Inc.; FedEx Trade Networks Transport & Brokerage, Inc.; The National Industrial Transportation League; Transportation Intermediaries Association, and UPS.

The basic issue before the Commission is whether NVOCCs should be permitted to enter into confidential contracts with their customers. This permission would put NVOCCs on an equal footing with the ocean carrier companies that are today allowed to enter into confidential contracts.

Shortly after the passage of the Ocean Shipping Reform Act of 1998 (OSRA), when confidential service contracts were first permitted between ocean carriers and their customers, there was a dramatic shift in business toward the use of confidential service contracts. OSRA, as currently implemented, does not extend to NVOCCs the same right of preparing confidential service contracts for their customers, placing the NVOCCs at a major competitive disadvantage.

In recent years, NVOCCs have made huge investments in technology and their operations, and customers have come to rely more heavily on third-party logistics providers (3PLs) and NVOCCs to arrange transportation, reduce expenses and manage complex supply chains.

The current regulations, in essence, continue to protect vessel operators – largely foreign owned – from business competition, the parties argued.

For a complete copy of the joint submission, click here: www.nitl.org/NVOCCJointComments-Motion.pdf

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