News
The U.S. Federal Maritime Commission (FMC) has offered regulatory flexibilities for non-vessel-operating common carrier (NVOCC) Negotiated Rate Arrangements (NRAs) and NVOCC Service Arrangements (NSAs) now that a final rule it published last week will go into force on August 22, 2018.
The key changes to NRAs allow them to be amended at any time; allow the inclusion of non-rate economic terms; and, allow an NVOCC to provide for shipper's acceptance of the NRA by booking a shipment. NSAs will become easier and more attractive to use by removing filing and essential terms requirements.
NSAs and NRAs are instruments created by the FMC, at the request of shipper and carrier stakeholders, respectively in 2004 and 2010. They provide shippers and OTIs with a more efficient way to comply with Shipping Act reporting requirements while relieving them from the tariff filing process.
The FMC voted on June 6, 2018 in favor of moving forward with a proposed draft Final Rule in Docket 17-10, ''Amendments to Regulations Governing NVOCC Negotiated Rate Agreements and NVOCC Service Arrangements.''
