FMC grants shipping companies 30 days to register their service contracts
This year, the Federal Maritime Commission (FMC) launches what is called a “new era of flexibility” in submitting service contracts to customers of container lines and their US importers and exporters.
The amended rules, which come into effect on June 2, allow shipping companies to submit their original service contracts to their agents within 30 days of their entry into force. Current regulations require shipping companies to receive and submit cargo to FMC before being allowed to move under the terms of their contract.
When there is a rule change Proposed in OctoberAt that time-FMC Chairman Michael Kori has recently created many by authorities to reduce the administrative burden of the containership industry while maintaining FMC’s mission to maintain competition in US international trade. I considered it to be one of.
Covid-19 needed a mind-change to meet the logistic challenges of the pandemic
It was also the “positive reaction” of the containership sector that prompted the change in rules. Temporary service contract filing relief Provided by distributors over the past year to minimize the impact of COVID-19 on the supply chain. The relief will expire on June 1st.
“As a result of this experience, the Commission has decided to update the submission requirements to better reflect modern business practices,” the FMC announced on Monday. “In addition, these changes set conditions that allow shipping companies to consider new ways to make services available to shippers.”
FMC received eight comments from the shipping group National Industrial Transportation League (NITL) and the World Shipping Council, which represents shipping companies. Both generally favoured rule changes. However, NITL emphasized that FMC needs to closely monitor how contracts will be submitted in the future for signs of new flexibility abuse by shipping companies.
FMC has strengthened oversight on Carrier Contracting Practices
Raw material supplier BassTech International is the only commenter to oppose this change, “removing regulations that reduce transparency and the Commission’s meaningful oversight of shipping company behaviour is by sea,”
In response, the FMC stated that, to the extent that delays in submission increase the risk of abuse by carriers in the contract process, “The Commission has strengthened oversight by the Commission on Carrier Contracting Practices, in line with NITL requirements. We believe that we will use committees and private enforcement. Tools for dealing with prohibited acts will help prevent such acts and mitigate the harm if they occur. “
The agency also includes provisions in the rules that make it clear that failure to submit a service contract or amendments in a timely manner will not affect the applicability of contracts or amendments for cargo received after the effective date. These shipments were received more than 30 days before the carrier submitted the contract or amendment. “