Federal Maritime Commission Initiatives and Partnerships October 10

Federal Maritime Commission Initiatives and Partnerships October 10, 2014

Jennifer M. Gartlan Office of Consumer Affairs & Dispute Resolution Services

Topics Discussed • Federal Maritime Commission (“FMC”) Household Goods (“HHG”) Jurisdiction • Licensing Requirements for International Movers • Strategic Use of CADRS Services to Help Prevent and Resolve Challenges and Disputes • FMC Port Congestion Initiative • FMC Governmental and Private Partnerships

FMC HHG Jurisdiction

FMC HHG Jurisdiction • • Statutes and Regulations Applicable to International Movers: • Shipping Act of 1984, as amended • 46 CFR Part 500 Jurisdiction: Shipments of HHGs that travel between the US and foreign destinations via ocean (including intermodal transportation)

HHG Jurisdiction • FMC does not exercise jurisdiction over military or GSA HHG shipments • FMC does not have criminal jurisdiction • FMC does not have jurisdiction over: • Air shipments • Maritime shipments between the U. S. and another U. S. state or territory (e. g. Puerto Rico to NY, CA to HI – STB Jurisdiction) • US interstate truck shipments (FMCSA and STB spilt jurisdiction)

FMC Ocean Transportation Intermediary (OTI) Licensing Requirements

OTI Licenses • • 2 Types of OTI Licenses: • Ocean Freight Forwarder (OFF) • Non-Vessel Operating Common Carrier (NVOCC) Can hold both types of licenses simultaneously

FMC OTI License Required • Any entity in the US that provides OFF or NVOCC services • Foreign based NVOCCs are not required to obtain a license, but must file an FMC-1 and FMC 65 and hold a $150 k bond. Must renew registration every 3 years.

OFF vs. NVOCC Services OFF • Ordering cargo to port • Preparing/processing export declarations • NVOCC • Purchasing transportation services from ocean carriers and offering resale to shippers • Payment of port-to-port or multimodal transportation charges • Entering affreightment agreements with underlying shippers Booking, arranging for or confirming cargo space • Preparing/processing delivery orders or dock receipts • Preparing/processing bills of lading • Preparing/processing consular documents/arranging for certification

OFF vs. NVOCC Services (cont’d. ) OFF • Handling freight or other monies advanced by shippers, or remitting or advancing freight or other monies or credit in connection with dispatching shipments • Coordinating the movement of shipments from origin to vessel • Advising exporters re: LOCs, licenses, inspections, etc. NVOCC • Leasing containers • Entering into arrangements with origin or destination agents

Comparing OFFs vs. NVOCCs OFF NVOCC • Not a common carrier • Common carrier status under FMC regulations • Serves as an agent to the shipper • Serves as a shipper to the ocean common carrier • Does not issue a House Bill of Lading • Serves as carrier to its shipper customer(s) • Must identify the shipper on Master Bill of Lading: • Normally listed as the shipper on the vessel operator’s Master Bill of Lading • John Doe is listed as the shipper • “FF as agent for John Doe”

Comparing NVOCCs vs. FFs OFF NVOCC • No tariff publication • Must publish tariff • Can receive broker compensation from VOCC • Must file NSAs/Retain NRAs • Cannot enter into service contracts • Cannot receive broker compensation from • Cannot join shipper association • Can enter into service contracts as shipper • Can join shipper association

License Exceptions • Shippers whose primary business is the sale of merchandise • Vessel Operators that perform FF services for cargo under their own B/L • Ocean Freight Brokers • Entities that exclusively transport HHGs for US military or federal civilian executive agencies • Agents, employees or unincorporated branch offices of a licensed OTI

Obtaining an OTI License • • NVOCC: • File FMC-18 • Obtain Bond 75 k • Publish Tariff/File FMC-1 FF: • File FMC-18 • Obtain Bond 50 k

Licensing FAQS

New Licensing Initiatives • • Online Notification of Application • Begins October 20, 2014 • License Applications no longer published in the Federal Register • License Applicant notification to be provided on FMC Website: www. fmc. gov Notice of Proposed Rule Making • ANPRM issued on July 18, 2013 • Comments led to Revised NPRM; Commission voted to adopt on September 25, 2014 • NPRM Published on Oct. 9, 2014. Comments due December 12, 2014

NPRM: Proposed Changes to Licensing Regulations • Institute Online License and Registration Renewal Every 3 Years • Requires common carriers to verify OTI licenses and registrations, tariff publication and financial responsibility provided such verifications can be made at a single location on the FMC’s website • New expedited hearing process to address denial, revocation, and suspension of OTI licenses • Proposal to eliminate requirement for additional $10, 000 bond amount for each branch office

Strategic Use of CADRS to Prevent and Resolve Disputes

CADRS Services • Education and Outreach • ADR Services: • Rapid Response and Ombuds • Facilitation • Mediation • Binding Arbitration

Uses for HHG Movers • Prevent Disputes • Resolve Disputes with: • Steamship Lines • Agents • Other HHG Movers • Truckers • Marine Terminal Operators • Shipper Customers

Examples of Disputes • Service Contract Interpretation Disputes • General Lien Disputes • Co-loading Challenges • Freight and/or Surcharge Disputes • Volume Disputes • Moving Contract Disputes • Space and Equipment Challenges • Demurrage Disputes

CADRS Benefits • Faster, Easier, Less Formal, Than Litigation • Less Costly • Confidential; Avoids Publicity • Creative, Practical Solutions • Better for On-going Relationships • Minimize Risk • Parties Retain Control of Outcome • Little to Lose

Agency Congestion Initiative

Port Congestion Initiative • Objective: Identify national trends and solutions for congestion experienced at US ports • Action: Commissioners holding Public Forums this fall at 4 ports: • Los Angeles, CA • Baltimore, MD • Charleston, SC • New Orleans, LA

Public Port Meetings • September 15, 2014: Port of Los Angeles – Chairman Cordero • Port Congestion • Truck Turn Time • Stakeholder Impact • Use of Technology to Reduce Congestion and Related Fees • Pierpass

Public Port Meetings • October 1, 2014: Port of Baltimore – Commissioners Doyle and Lidinsky • Truck Gate/Wait Times • Trucker Appointment System • “Free Time” Impacts on Gate Operations and Congestion • Ocean Carrier Arrival “Bunching” impacts port/gate congestion • Infrastructure • Measures Taken

Upcoming Public Port Meetings • • October 30, 2014: Port of Charleston – Commissioner Khouri • Port Congestion • Infrastructure • Increase Chassis Use and Efficiency • Promote Global Trade • Increase Supply Chain Efficiency November 3, 2014: Port of New Orleans – Commissioner Dye • Port Congestion • Promote Global Trade • Increase Supply Chain Efficiency

Partnerships

FMC-FMCSA MOU • Electronic Information Sharing • Case Referrals, Joint Training/Investigations • Collaborative Education and Outreach • Refer consumers to FMC’s Office of Consumer Affairs & Dispute Resolution Services (CADRS)

Informal Evolving HHG Governmental Collaboration • Surface Transportation Board (STB) • State and Local Government Collaboration: • States Attorney General Offices • Local Governmental Consumer Protection Offices (e. g. Miami Dade Consumer Protection)

Partnering with Industry – Get Involved! • IAM • Mutual Outreach • Consultation • Link to Commission Website & HHG Brochure on your website: http: //www. fmc. gov/news/brochures. aspx • Participate in Port Forums: October 30 (Charleston) & November 3 (New Orleans) • Chairman’s Earth Day Award – send nominations between October 8, 2014 – March 14, 2015 • Participate in OTI NPRM Comment Period – Comments due December 12, 2014 • Use CADRS to Prevent/Resolve Disputes and/or Training Opportunities

Questions?

Thank You! Jennifer M. Gartlan Deputy Director Office of Consumer Affairs & Dispute Resolution Services Federal Maritime Commission (202) 688 -0244 (direct) (202) 523 -5807 (CADRS main) (202) 275 -0059 (202 -275 -0059) jgartlan@fmc. gov complaints@fmc. gov