Subscribe to our free, weekly email newsletter!


FMC will remain vigilant on ocean carrier pricing

In addition to its various efforts to use its investigation as a vehicle to help shippers and carriers improve their business practices and commercial relationships, the Commission will continue its enhanced oversight of the Transpacific Stabilization Agreement and Westbound Transpacific Stabilization Agreement.
By Patrick Burnson, Executive Editor
December 09, 2010

While the Federal Maritime Commission failed to implement any significant reform, it did address ongoing concern over cartel pricing in the transpacific yesterday.

In addition to its various efforts to use its investigation as a vehicle to help shippers and carriers improve their business practices and commercial relationships, the Commission will continue its enhanced oversight of the Transpacific Stabilization Agreement (TSA) and Westbound Transpacific Stabilization Agreement (WTSA).

“I want to personally thank the many U.S. exporters, importers, ocean transportation intermediaries, ocean carriers and other transportation officials who committed their time and resources to this investigation,” said Commissioner Rebecca F. Dye. “We look forward to their continued voluntary participation as we build on the collaborative work conducted under the Fact Finding to strengthen the business relationships between ocean carriers and their customers and increase supply chain reliability.”

Commission staff also will develop recommendations to enhance oversight of the three global alliances.

The findings and recommendations were based on more than 170 interviews with a wide variety of companies and organizations involved in international ocean shipping, a series of “best-practices discussion pairs” between shippers and carriers, and internet-based collaborative efforts concerning solutions to container availability.

Many U.S. exporters and importers participating in the current U.S. Federal Maritime Commission investigation into carrier practices on vessel and equipment capacity and related matters have noted that liner carriers in the U.S. Westbound and Eastbound Pacific trades have charged identical and/or very similar rates and terms for carriage and uniformly applied surcharges.

Among those consulted was Agriculture Transportation Coalition, which told LM earlier this year that carriers had “rolled cargo,” and refused to load cargoes without additional compensation.

“In doing so, carriers often ignore contractual service commitments and prohibitions on the unilateral imposition of surcharges,” said AgTC executive director, Peter Friedmann. “Shipper protests have been largely ignored by carriers, and these disputes are mooted by the need to move the cargo.”

About the Author

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

At $2.843, the average price per gallon was down 1.6 cents, following last week’s 1.1 cent drop and a cumulative 7.1 cent cumulative drop over the last five weeks.

LM Group News Editor Jeff Berman caught up with UPS Freight President Jack Holmes at the National Shippers Strategic Transportation Council’s (NASSTRAC) Annual Conference and Exhibition. Berman and Holmes spoke about various aspects of the less-than-truckload sector (LTL), as well as related freight transportation news and trends.

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA