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Federal Maritime Commission Initiatives and Partnerships October 10, 2014

Learn about Federal Maritime Commission's HHG jurisdiction, OTI licensing requirements for international movers, and strategic CADRS services to prevent disputes.

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Federal Maritime Commission Initiatives and Partnerships October 10, 2014

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  1. Federal Maritime Commission • Initiatives and Partnerships • October 10, 2014

  2. Jennifer M. Gartlan • Office of Consumer Affairs • & Dispute Resolution Services

  3. 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

  4. FMC HHG Jurisdiction

  5. 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)

  6. HHG 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 – STB Jurisdiction) • US interstate truck shipments (FMCSA and STB spilt jurisdiction)

  7. FMC Ocean Transportation Intermediary (OTI) Licensing Requirements

  8. OTI Licenses • 2 Types of OTI Licenses: • Ocean Freight Forwarder (OFF) • Non-Vessel Operating Common Carrier (NVOCC) • Can hold both types of licenses simultaneously

  9. 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.

  10. NVOCC OFF vs. NVOCC Services OFF • 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

  11. NVOCC OFF vs. NVOCC Services (cont’d.) OFF • 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

  12. Comparing OFFs vs. NVOCCs OFF 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 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”

  13. NVOCC Comparing NVOCCs vs. FFs OFF • 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

  14. 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

  15. Obtaining an OTI License • NVOCC: • File FMC-18 • Obtain Bond 75k • Publish Tariff/File FMC-1 • FF: • File FMC-18 • Obtain Bond 50k

  16. Licensing FAQS

  17. 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

  18. 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

  19. Strategic Use of CADRS to Prevent and Resolve Disputes

  20. CADRS Services • Education and Outreach • ADR Services: • Rapid Response and Ombuds • Facilitation • Mediation • Binding Arbitration

  21. Uses for HHG Movers • Prevent Disputes • Resolve Disputes with: • Steamship Lines • Agents • Other HHG Movers • Truckers • Marine Terminal Operators • Shipper Customers

  22. 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

  23. 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

  24. Agency Congestion Initiative

  25. 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

  26. 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

  27. 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

  28. 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

  29. Partnerships

  30. 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)

  31. 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)

  32. 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

  33. Questions?

  34. Thank You! Jennifer M. Gartlan Deputy Director Office of Consumer Affairs & Dispute Resolution Services Federal Maritime Commission (202) 688-0244 (direct) (202) 523-5807 (CADRS main) (202) 275-0059 (202-275-0059) jgartlan@fmc.gov complaints@fmc.gov

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