NITL Executive of the Year: Remaking the rules with Nick DiMichael
As the League’s outgoing legal counsel, the 2009 John T. McCullough Award winner has done a great deal of listening. However, his achievements in the regulatory arena speak volumes.
By Patrick Burnson, Executive Editor -- Logistics Management, 11/1/2009
As shippers and carriers work together to rebuild the global economy, the National Industrial Transportation League (NITL) has chosen one of the men behind the legal framework of this monumental effort as its 2009 John T. McCullough Award—an honor also known as the NITL Executive of the Year.
Nicholas J. DiMichael, the NITL’s outgoing legal counsel, will be presented the 2009 McCullough at the NITL’s 102nd Annual Meeting in Anaheim, Calif., as part of opening ceremonies on Monday, Nov. 16. The annual award, which is sponsored by the NITL and Logistics Management (LM) magazine, recognizes an individual for achievement and leadership in the logistics and transportation industry. The award is named after John T. McCullough, a former chief editor of Distribution magazine, one of the predecessors of Logistics Management.
Well known for his compassion and sensitivity to environmental issues, DiMichael advises for a wide variety of other national associations in their transportation matters, including the recycling and scrap industries. In his role as general legal counsel to the NITL, DiMichael has been instrumental in championing the league’s revolutionary Ocean Shipping Reform Act (OSRA) in the 1990s as well as forging a 21st century international effort to negotiate a new ocean cargo liability treaty—The Rotterdam Rules.
Work on the Rotterdam Rules began more than 10 years ago, when it became evident that earlier liability regimes—such as the Hague Rules, approved in 1924 and ratified in the United States in 1936 as the Carriage of Goods by Sea Act (COGSA)—were no longer adequate to take into account today’s shipping practices, including containerization, door-to-door transport contracts, and the use of electronic documents.
“Nick played a key role in ushering in this era of relevant rules developed for a new United Nations convention,” says NITL President Bruce Carlton. “His experience and deep understanding of the issues within the issues has been an invaluable asset for the League.”
In addition to his work with Rotterdam Rules, DiMichael has participated in many major proceedings before the Surface Transportation Board and its predecessor, the Interstate Commerce Commission, as well as proceedings before the Department of Transportation, the Federal Maritime Commission, and related agencies concerned with governing logistics and transportation.
“Given his vast experience and understanding of complex regulatory issues, it comes as little surprise that Nick should win this recognition,” adds Carlton.
DiMichael played a major role in recent proceedings related to the hours-of-service rules before the Federal Motor Carrier Safety Administration and in dealings regarding small shipper rate cases before the Surface Transportation Board. Furthermore, he’s been closely involved with a ruling concerning non-vessel operating common carriers before the Federal Maritime Commission and was a force in the recent hazardous materials transportation jurisdiction before the Research and Special Projects Administration of the Department of Transportation.
His colleagues at the League call him modest but supremely capable. “He’s a good guy, but not one to give up too much at the bargaining table,” says Carlton. “When it comes to actually protecting the most vital interests of his constituents, Nick has been a relentless force.”
DiMichael, a partner in the transportation practice group of the Washington, D.C.-based law firm of Thompson Hine LLP, spoke with LM shortly after learning of the award.
Logistics Management: First, how does it feel to be in such august company?
Nicholas J. DiMichael: It’s a great honor, of course, as fellow winners represent years of dedication to the League and its constituents. Being an attorney, it’s especially gratifying to know that our legal efforts, which may seem arcane to the general public, are recognized this way.
LM: And chief among those efforts was the role you played in OSRA. Does that seem like ages ago?
DiMichael: Not really, given that it took years to finally get done. For shippers who are new to the business, or have forgotten what the world looked like then, I guess it may not seem like such a big deal. But breaking up the liner conferences and creating a freer pricing market really changed the industry for the better. We at the League are very proud of that achievement.
LM: As you should be. The Rotterdam Rules appear to be almost as transformational. Is that safe to say?
DiMichael: I should say so. For over 10 years, the League has strongly supported maritime cargo liability reforms reflective of modern shipping practices through work with the Organization for Economic Cooperation and Development. We’ve also worked with the Comité Maritime International on this issue.
Our 2001 Memorandum of Agreement with the World Shipping Council was a big move in representing most maritime liner carriers in the U.S. international trades. Finally, our work as a private industry adviser to the United Nations Committee on International Trade Law’s Working Group III was a landmark move.
LM: Much of this work is so complex. How do you communicate with leadership and members to explain this?
DiMichael: I speak with all the committee chairs as well as those on the executive committee. But I certainly don’t do all the talking. I’m not a consultant, I’m a legal adviser. So my job is to listen. Then I can help use our legal arm in rule makings, court proceedings, and legislative actions.
LM: With the League’s constituent base broadened to include NVOs, 3PLs, and asset-base carriers, how does its mission change, and how does your role change?
DiMichael: We feel that our mission hasn’t really changed, but the way we communicate that mission has. That means a lot more internal communication, too. When we were comprised of just shippers, there was a single stream of information. Now we rely on our committee chairs for a lot more. Our membership surveys are also very useful tools. They give us feedback on the hot issues.
LM: How big an issue is the Railroad Antitrust Enforcement Act of 2009 now being debated in the U.S. Senate?
DiMichael: Very big. If passed, it would empower the Federal Trade Commission to regulate and engage in rail antitrust enforcement regarding collective rate agreements. For our shippers, this remains a controversial subject. But there are other general issues that the League is equally concerned about.
For example, the industry will be facing a very different environment in the next two decades that no one has ever realized or has ever experienced before. Transportation capacity has tended to lag behind demand in the past, and that historical pattern is going to be more pronounced in the future.
LM: How so? Aren’t ocean carriers scrapping vessels? Aren’t air carriers furloughing planes?
DiMichael: That’s just a tactical trend. In the big picture, there’s going to be a huge demand for capacity again, and we are concerned that it won’t be there. More importantly, though, we are concerned that the transportation infrastructure will continue to lag behind when demand increases. Our highways and rail systems need to be rebuilt. Our seaports and airports have to meet world-class standards.
LM: And that will require more government and private industry spending. Will the economy recover in time to permit that?
DiMichael: Yes, we think so. Many shippers are telling us that we’ve hit bottom now, and that there will be a slow but steady rebound. Meanwhile, everyone is watching their costs…as they should be.
LM: Finally, what do you see as on-going trends in transportation?
DiMichael: As tired as this may sound, we expect more and more collaboration among shippers and transport providers. And not just on a domestic level. I’m speaking of a global phenomenon and across all modes. Consolidation will reach a plateau, and the surviving players will make service their No. 1 priority. By the same token, shippers will be making more compromise on some of their demands.
LM: You actually sound very hopeful for the transportation industry overall.
DiMichael: That’s part of what the League is all about. We wouldn’t be working so hard for so long if we did not believe in what we are doing. This is especially true of the committee chairs. These people just keep giving, and without their desire for making a change I’d have a hard time doing my job.
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