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Federal Maritime CommissionInitiatives and Partnerships
October 10, 2014
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Jennifer M. Gartlan
Office of Consumer Affairs & Dispute Resolution
Services
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Topics Discussed
• Federal Maritime Commission (“FMC”) Household Goods (“HHG”) Jurisdiction
• Licensing Requirements for International Movers
• Strategic Use of CADRS Services to Help Prevent and Resolve Challenges and Disputes
• FMC Port Congestion Initiative
• FMC Governmental and Private Partnerships
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FMC HHG Jurisdiction
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FMC HHG Jurisdiction
• Statutes and Regulations Applicable to International Movers:
• Shipping Act of 1984, as amended
• 46 CFR Part 500
• Jurisdiction: Shipments of HHGs that travel between the US and foreign destinations via ocean (including intermodal transportation)
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HHG Jurisdiction
• FMC does not exercise jurisdiction over military or GSA HHG shipments
• FMC does not have criminal jurisdiction
• FMC does not have jurisdiction over:
• Air shipments
• Maritime shipments between the U.S. and another U.S. state or territory (e.g. Puerto Rico to NY, CA to HI – STB Jurisdiction)
• US interstate truck shipments (FMCSA and STB spilt jurisdiction)
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FMC Ocean Transportation Intermediary (OTI) Licensing Requirements
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OTI Licenses
• 2 Types of OTI Licenses:
• Ocean Freight Forwarder (OFF)
• Non-Vessel Operating Common Carrier (NVOCC)
• Can hold both types of licenses simultaneously
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FMC OTI License Required
• Any entity in the US that provides OFF or NVOCC services
• Foreign based NVOCCs are not required to obtain a license, but must file an FMC-1 and FMC 65 and hold a $150k bond. Must renew registration every 3 years.
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OFF vs. NVOCC Services
OFF NVOCC
• Ordering cargo to port
• Preparing/processing export declarations
• Booking, arranging for or confirming cargo space
• Preparing/processing delivery orders or dock receipts
• Preparing/processing bills of lading
• Preparing/processing consular documents/arranging for certification
• Purchasing transportation services from ocean carriers and offering resale to shippers
• Payment of port-to-port or multimodal transportation charges
• Entering affreightment agreements with underlying shippers
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OFF vs. NVOCC Services (cont’d.)
OFF NVOCC
• Handling freight or other monies advanced by shippers, or remitting or advancing freight or other monies or credit in connection with dispatching shipments
• Coordinating the movement of shipments from origin to vessel
• Advising exporters re: LOCs, licenses, inspections, etc.
• Leasing containers
• Entering into arrangements with origin or destination agents
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Comparing OFFs vs. NVOCCs
OFF
• Not a common carrier
• Serves as an agent to the shipper
• Does not issue a House Bill of Lading
• Must identify the shipper on Master Bill of Lading:
• John Doe is listed as the shipper
• “FF as agent for John Doe”
NVOCC
• Common carrier status under FMC regulations
• Serves as a shipper to the ocean common carrier
• Serves as carrier to its shipper customer(s)
• Normally listed as the shipper on the vessel operator’s Master Bill of Lading
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Comparing NVOCCs vs. FFs
OFF NVOCC
• No tariff publication
• Can receive broker compensation from VOCC
• Cannot enter into service contracts
• Cannot join shipper association
• Must publish tariff
• Must file NSAs/Retain NRAs
• Cannot receive broker compensation from
• Can enter into service contracts as shipper
• Can join shipper association
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License Exceptions
• Shippers whose primary business is the sale of merchandise
• Vessel Operators that perform FF services for cargo under the their own B/L
• Ocean Freight Brokers
• Entities that exclusively transport HHGs for US military or federal civilian executive agencies
• Agents, employees or unincorporated branch offices of a licensed OTI
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Obtaining an OTI License
• NVOCC:
• File FMC-18
• Obtain Bond 75k
• Publish Tariff/File FMC-1
• FF:
• File FMC-18
• Obtain Bond 50k
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Licensing FAQS
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New Licensing Initiatives
• Online Notification of Application
• Begins October 20, 2014
• License Applications no longer published in the Federal Register
• License Applicant notification to be provided on FMC Website: www.fmc.gov
• Notice of Proposed Rule Making
• ANPRM issued on July 18, 2013
• Comments led to Revised NPRM; Commission voted to adopt on September 25, 2014
• NPRM Published on Oct. 9, 2014. Comments due December 12, 2014
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NPRM: Proposed Changes to Licensing Regulations
• Institute Online License and Registration Renewal Every 3 Years
• Requires common carriers to verify OTI licenses and registrations, tariff publication and financial responsibility provided such verifications can be made at a single location on the FMC’s website
• New expedited hearing process to address denial, revocation, and suspension of OTI licenses
• Proposal to eliminate requirement for additional $10,000 bond amount for each branch office
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Strategic Use of CADRS to Prevent and Resolve Disputes
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CADRS Services
• Education and Outreach
• ADR Services:
• Rapid Response and Ombuds
• Facilitation
• Mediation
• Binding Arbitration
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Uses for HHG Movers
• Prevent Disputes
• Resolve Disputes with:
• Steamship Lines
• Agents
• Other HHG Movers
• Truckers
• Marine Terminal Operators
• Shipper Customers
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Examples of Disputes
• Service Contract Interpretation Disputes
• General Lien Disputes
• Co-loading Challenges
• Freight and/or Surcharge Disputes
• Volume Disputes
• Moving Contract Disputes
• Space and Equipment Challenges
• Demurrage Disputes
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CADRS Benefits
• Faster, Easier, Less Formal, Than Litigation
• Less Costly
• Confidential; Avoids Publicity
• Creative, Practical Solutions
• Better for On-going Relationships
• Minimize Risk
• Parties Retain Control of Outcome
• Little to Lose
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Agency Congestion Initiative
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Port Congestion Initiative
• Objective: Identify national trends and solutions for congestion experienced at US ports
• Action: Commissioners holding Public Forums this fall at 4 ports:
• Los Angeles, CA
• Baltimore, MD
• Charleston, SC
• New Orleans, LA
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Public Port Meetings
• September 15, 2014: Port of Los Angeles – Chairman Cordero
• Port Congestion
• Truck Turn Time
• Stakeholder Impact
• Use of Technology to Reduce Congestion and Related Fees
• Pierpass
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Public Port Meetings
• October 1, 2014: Port of Baltimore – Commissioners Doyle and Lidinsky• Truck Gate/Wait Times• Trucker Appointment System• “Free Time” Impacts on Gate Operations and Congestion• Ocean Carrier Arrival “Bunching” impacts port/gate
congestion• Infrastructure• Measures Taken
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Upcoming Public Port Meetings
• October 30, 2014: Port of Charleston – Commissioner Khouri
• Port Congestion
• Infrastructure
• Increase Chassis Use and Efficiency
• Promote Global Trade
• Increase Supply Chain Efficiency
• November 3, 2014: Port of New Orleans – Commissioner Dye
• Port Congestion
• Promote Global Trade
• Increase Supply Chain Efficiency
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Partnerships
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FMC-FMCSA MOU
• Electronic Information Sharing
• Case Referrals, Joint Training/Investigations
• Collaborative Education and Outreach
• Refer consumers to FMC’s Office of Consumer Affairs & Dispute Resolution Services (CADRS)
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Informal Evolving HHG Governmental Collaboration
• Surface Transportation Board (STB)
• State and Local Government Collaboration:
• States Attorney General Offices
• Local Governmental Consumer Protection Offices (e.g. Miami Dade Consumer Protection)
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Partnering with Industry – Get Involved!
• IAM
• Mutual Outreach
• Consultation
• Link to Commission Website & HHG Brochure on your website: http://www.fmc.gov/news/brochures.aspx
• Participate in Port Forums: October 30 (Charleston) & November 3 (New Orleans)
• Chairman’s Earth Day Award – send nominations between October 8, 2014 – March 14, 2015
• Participate in OTI NPRM Comment Period – Comments due December 12, 2014
• Use CADRS to Prevent/Resolve Disputes and/or Training Opportunities
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Questions?
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Thank You!
Jennifer M. GartlanDeputy DirectorOffice of Consumer Affairs & Dispute Resolution ServicesFederal Maritime Commission(202) 688-0244 (direct)(202) 523-5807 (CADRS main)(202) 275-0059 (202-275-0059)[email protected]@fmc.gov