News
The U.S. Federal Maritime Commission issued last week a Notice of Proposed Rulemaking (NPRM) which would expand flexibility and deregulates NVOCC Service Arrangements (NSAs) and Negotiated Rate Arrangements (NRAs). The deadline for filing comments with the agency is Monday, January 29, 2018.
There are three key changes in the proposed rule:
- ending requirement for NSAs to be filed with the Commission;
- permitting NVOCCs and shippers to amend NRAs; and,
- allowing the act of booking cargo to be considered acceptance of a rate under the terms of an NRA.
The commission also invites comments on amending the NRA rules to allow inclusion of non-economic rate terms.
An NSA is a written contract between shipper and NVOCC that contains minimum quantities, rates and defined service levels, similar to a service contract between a vessel-operating common carrier and a shipper.
An NRA is currently a simple agreement between a shipper and an NVOCC on the rate to be paid for particular shipments.
