FMC moves forward with regulatory reform in global ocean cargo arena

The NPRM will be published in the Federal Register in the coming weeks and will include instructions on how interested parties can file comments.

By ·

Score a victory for freight intermediaries seeking to reduce regulatory obstacles in the ocean cargo arena.

The Federal Maritime Commission (FMC) took an important step in its regulatory reform efforts this week when it voted to advance a Notice of Proposed Rulemaking (NPRM) that simplifies and streamlines its Non-Vessel-Operating Common Carrier (NVOCC) Service Arrangements (NSA) and Negotiated Rate Arrangements (NRA) rules and procedures.

Through the NPRM, the Commission seeks feedback on three key proposals: ending the requirement for NSAs to be filed with the Commission; expanding the ability of NVOCCs and shippers to amend NRAs; and, finally, allowing the act of tendering cargo to be considered acceptance of a rate under the terms of an NRA.

The NPRM will include a specific request for public comments addressing whether the Commission should expand the NRA rules to allow inclusion of non-rate economic terms.

The NPRM will be published in the Federal Register in the coming weeks and will include instructions on how interested parties can file comments.

"I am pleased that the Commission has taken this step to move forward on a petition to reduce unnecessary regulatory burdens that increase complexity and costs in America’s ocean supply chain, said Acting Chairman Michael A. Khouri.

Logistics managers will no doubt echo that sentiment.

Adds Khouri: "Ultimate adoption of these rules will makes NSAs and NRAs more useful for consumers in the marketplace. Additionally, I hope to receive more comments on whether the rule could go further, as requested by NCBFAA in their petition, to expand the NRA to utilize non-rate commercial terms."


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

FMC · Global Logistics · Ocean Shipping · All Topics
Latest Whitepaper
The Essential Guide to High Value, Low TCO WMS on the Fast Track
A warehouse could become your weakest link if you can’t execute with speed and accuracy. Your bottom line will be negatively impacted, so will your customer’s experience, and they are only one click away from buying from your competitors!
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Logistics Showcase: Rising to the same-day delivery challenge
Today’s delivery puzzles are very different than traditional DC to store or warehouse to DC puzzles. It’s not just the shorter time frame for delivery; the basic requirements are significantly different and more complex as well. In this session you'll learn how to address same day delivery challenges while also driving down costs and increasing customer satisfaction.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...