FEDERAL MARITIME COMMISSION
Sponsored Links
This presentation is the property of its rightful owner.
1 / 40

FEDERAL MARITIME COMMISSION UPDATES Thursday, October 11, 2012 10:30 a m – 11:30 am PowerPoint PPT Presentation


  • 66 Views
  • Uploaded on
  • Presentation posted in: General

FEDERAL MARITIME COMMISSION UPDATES Thursday, October 11, 2012 10:30 a m – 11:30 am. VERN W. HILL Director, Bureau of Certification and Licensing JENNIFER M. GARTLAN Deputy Director, Office of Consumer Affairs & Dispute Resolution Federal Maritime Commission. Roadmap.

Download Presentation

FEDERAL MARITIME COMMISSION UPDATES Thursday, October 11, 2012 10:30 a m – 11:30 am

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


FEDERAL MARITIME COMMISSION

UPDATES

Thursday, October 11, 2012

10:30 am – 11:30 am


VERN W. HILL

Director, Bureau of Certification and

Licensing

JENNIFER M. GARTLAN

Deputy Director, Office of Consumer

Affairs & Dispute Resolution

Federal Maritime Commission


Roadmap

  • Unique Challenges Associated with International Moving

  • Federal Maritime Commission (“FMC”) Jurisdiction

  • Licensing Requirements for International Movers

  • Tariff Publication Requirements and Negotiated Rate Agreements

  • Prohibited Practices and Enforcement

  • Dispute Resolution Options

  • Fact Finding 27 and Future Commission HHG Initiatives


International Moving: Common Challenges

  • Multiple Actors in the Logistics Chain

  • One-time Shippers

  • Packing Issues

  • Delays due to LCL Consolidation

  • Import and Export Regulatory Requirements

  • Port Related Issues (e.g. Demurrage, Surcharges)

  • Documentation Issues

  • Communication Issues

  • Different Regime for Loss and Damage (i.e. COGSA)

  • Marine Insurance Issues


Jurisdiction

  • Statutes and Regulations Applicable to International Movers:

    • Shipping Act of 1984, as Amended

    • 46 CFR 500

  • Jurisdiction: Shipments of HHGs that travel between the US and foreign destinations via ocean (including intermodal transportation)


FMC Jurisdiction

  • FMC doesnot exercise jurisdiction over military or GSA HHG shipments

  • FMC doesnot have criminal jurisdiction

  • FMC doesnot 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)


Licensing for International Movers


OTI License Required When:

  • Any entity in the US that provides FF or NVOCC services

  • Foreign based NVOCCs are not required to obtain a license, but must file an FMC-1 and hold a $150k bond


Licensing 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 branch offices of a licensed OTI


Types of Licenses

  • Freight Forwarders

  • Non-Vessel Operating Common Carriers (NVOCCs)


Comparing FFs vs. NVOCCs

FF

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

  • Not a common carrier

  • Serves as an agent to the shipper

  • Does not issue a bill of lading

  • Must identify the shipper on vessel operator’s bill of lading:

    • John Doe is listed as the shipper

    • “FF as agent for John Doe”


How to Obtain a License

  • Complete and file a Form FMC-18 available at http://www.fmc.gov/forms_and_applications.aspx

  • Obtain and provide FMC with proof of financial responsibility in the following amounts:

    • FF: $50k

    • NVOCC: $75k

    • Additional Branch Offices require additional $10k per office

  • NVOCCs must file a Tariff Registration Form FMC-1


Tariff Publishing and Tariff Alternatives


Tariff Publishing Requirements

  • NVOCCs and vessel operators must publish a tariff that has:

    • Rates, charges, and rules for each shipment

    • Copy of the bill of lading

  • Rates:

    • Rate increases no less than 30 days’ notice

    • Reductions effective on date of publication

    • No retroactive publication


  • Tariff Publishing Alternatives

    • Negotiated Rate Agreements (NRAs)

    • NVOCC Service Arrangements (NSAs)


    NRAs


    What Must NVOCCs Do to Use NRAs

    • Be Licensed with the FMC

    • Post Notice in Tariff and B/Ls

    • End all Tariff Access Charges

    • Agree to an NRA in Writing Before Receiving Cargo

    • Keep NRA Documentation for 5 Years


    Regulatory Enforcement


    Enforcement Overview

    • Shipping Act

      • Licensing Requirements

      • Tariff and Service Contract Requirements

      • Prohibited Practices

    • Regulatory

      • Augmentation of Statutory Requirements

      • NSA and NRA Requirements


    Common HHG Violations

    • Performing OTI Services without a License

    • Providing Transportation for an unlicensed OTI

    • Providing OTI Services not in accordance with a Tariff

    • Failure to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property.


    Consequences for Regulatory Violations

    • Civil Penalties:

      • Up to $8,000 per violation if not knowing and willful

      • Up to $40,000 per violation if knowing and willful

  • Suspension of Tariff

  • Injunction to prevent violation of the Shipping Act (particularly helpful to shut down unlicensed entities)


  • Dispute Resolution at the FMC


    Formal Adjudication of Disputes

    • Parties can file suit at FMC for Shipping Act violations

    • Remedies:

      • Reparations

      • Injunction (Court-based)


    Alternative: CADRS

    • Independent

    • Neutral and Confidential

    • Practical, Real Time Solutions

    • Cost Savings

    • Enhanced Business Relationships

    • Experienced Neutrals with Industry Knowledge


    Services Provided by CADRS

    • Education and Outreach

    • Small Claims

    • ADR Services:

      • Rapid Response and Ombuds

      • Facilitation

      • Mediation

      • Binding Arbitration


    Binding Arbitration vs. Mediation

    Binding Arbitration

    Mediation

    Voluntary participation

    Confidential

    Rules Based and Adjudicative

    Limited to legal issues

    Arbitration decision issued by arbitrator(s)

    Award is final

    • Voluntary participation

    • Confidential

    • Rules Based and Adjudicative

    • Limited to legal issues

    • Arbitration decision issued by arbitrator(s)

    • Award is final


    Advantages of Using CADRS

    • 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


    Types of Cases FY 2012


    Examples of Issues Encountered

    • Delays

    • Missing Shipments

    • Release and Receipt of Cargo

    • Cargo damage

    • Volume Disputes

    • Rates and Surcharges (e.g. detention and demurrage)

    • Cancellation Fees

    • Documentation Issues

    • Communication Issues


    Obtaining Assistance

    Office of Consumer Affairs & Dispute Resolution Services

    (202) 523-5807

    compliants@fmc.gov


    Fact Finding 27

    Potentially Unlawful, Unfair, or Deceptive Ocean Transportation Practices Related to the Movement of Household Goods or Personal Property in U.S.-Foreign Oceanborne Trades


    Background

    • 2005-2009: 2,500 HHG consumer complaints received

    • June 23,2010: The Commission issued an Order of Investigation to:

      • Develop a record on the nature and scope of the problem presented by potentially unfair, unlawful, or deceptive practices in the shipping of household goods or personal property in U.S.-foreign oceanborne trade; and

      • Provide recommendations for further Commission action, including any policies, rulemaking proceedings, etc.

    • April 15, 2011: Final Report Issued (Public)

    • May 12, 2011: Commission adopted FF 27 Final Report Recommendations

    • September 30, 2011: Commission staff issued progress report to Commission re: implementation of recommendations


    Recommendations

    • Educating the Consumer

    • Enhancing Consumer Experience

    • Consumer Protection


    Highlights: Consumer Education

    • Development of consumer education materials

    • Development of consumer resource website

    • Plan to use social media to further outreach initiatives

    • Outreach to Lead Source Providers to ask for assistance in educating consumers

    • Encourage FMC licensed/registered movers to link websites to Commission website


    Highlights: Enhancing Consumer Experience

    • Collaboration with industry stakeholders, partners, and other government agencies to develop best practices and model forms to reduce problems

    • Development of FMC appropriate guidance documents to provide best practices and model forms

    • Conduct outreach to HHG trade associations and arrange for ongoing information sharing and development of best practices


    Highlights: Consumer Protection

    • Collaboration with other government agencies to enhance protection for shippers

    • Provide mediation/arbitration for HHG disputes

    • Development requirements for a voluntary best practices HHG Program

    • Enhanced enforcement procedures


    Get Involved!

    • Website Linkage

    • Outreach Initiatives

    • Best Practices and Model Forms

    • Collaboration and Information Sharing

    • Use CADRS for your dispute resolution needs


    Questions?


    Thank You

    Vern Hill, Director, Bureau of Certification and Licensing

    (202) 523-5787, vhill@fmc.gov

    Jennifer M. Gartlan, Deputy Director, Office of Consumer Affairs & Dispute Resolution Services

    (202) 688-0244, jgartlan@fmc.gov


    FEDERAL MARITIME COMMISSION

    UPDATES

    Thursday, October 11, 2012

    10:30 am – 11:30 am


  • Login