FMC Decides to Exempt NVOCCs from Tariff Publishing Requirement
The U.S. Federal Maritime Commission (FMC) voted Thursday to initiate a rulemaking that would relieve non-vessel-operating common carriers (NVOCCs) from the costs and burdens of publishing in tariffs the rates they charge for cargo shipments. In a 3 to 1 vote, the commission decided to grant this exemption from publishing rate tariffs to licensed NVOCCs.
The commission directed its staff to prepare a notice of proposed rulemaking that would relieve licensed NVOCCs from publishing and adhering to rates in tariffs, while imposing several conditions, including:
- NVOCCs would continue to publish standard rules tariffs containing contractual terms and conditions governing shipments
- NVOCCs would be required to provide those rules to the public free of charge
- Rates charged by NVOCCs must be agreed to and memorialized in writing by the date cargo is received for shipment
- NVOCCs must retain documentation of the agreed rate and terms for each shipment for a period of five years, and must make that documentation available promptly to the Commission on request
The Shipping Act gives the commission the discretion to grant exemptions, such as from tariff requirements, if doing so will not result in substantial reduction in competition or be detrimental to commerce.