11.02.28FMC to End NVOCC Tariff Filing

The U.S. Federal Maritime Commission (FMC) announced Friday a final rule which will exempt licensed non ? vessel - operating common carriers that enter into negotiated rate arrangements from the tariff rate publication requirements of the Shipping Act of 1984 and certain provisions and requirements of the commission's regulations.

The exemption will be applied to licensed and bonded NVOCCs under the following three conditions:

1) Licensed NVOCCs would be required to continue publishing standard rules tariffs containing contractual terms and conditions governing shipments.
 2) The rates charged by NVOCCs must be mutually agreed with shippers and memorialized in writing by the date cargo is received for shipment.
 3) NVOCCs must retain documentation confirming the agreed rate and terms for each shipment for a period of five years, and must make such documentation promptly upon request available to the FMC.

Registered but not licensed foreign NVOCCs are required to continue tariff filing as before.

The final rule will take effect in mid-April.