New Monitoring Requirements Give FMC More Insight

FMC Press Release dated May 5, 2022 -- The three global ocean carrier alliances (2M, OCEAN, and THE) and each of their member companies will now be required to provide enhanced pricing and capacity information, providing the Federal Maritime Commission with uniform data to use in assessing ocean carrier behavior and marketplace competitiveness.

The newly mandated information will provide the Commission’s Bureau of Trade Analysis (BTA) with insight into pricing of individual trade lanes and by container and service type. It will also provide more immediate information regarding capacity management decisions of ocean carriers and alliances.

The changes are the result of a year-long examination by BTA to determine the data needed to properly analyze carrier behavior and marketplace trends. Under the new requirements, carriers participating in an alliance will need to submit pricing information about cargo they move on the major trade lanes, and both carriers and alliances will be mandated to submit comprehensive information related to capacity management.

One of the key responsibilities of the Commission, through BTA, is to continuously monitor compliance with agreement authorities and to determine if agreements have an anticompetitive impact on the marketplace.

The three ocean carrier alliances are already subject to the most frequent and stringent monitoring requirements of any type of agreement on file at the Commission. Information already collected includes detailed operational data, minutes from meetings among agreement principals, and regularly scheduled meetings with agreement parties where Commission staff address issues of concern.

The Commission assesses its reporting requirements on a continuous basis and adjusts the information it requires ocean carriers and alliances to file as circumstances and business practices change. Additional changes to requirements will be issued as warranted.

FMC Sets MTDI Summit for June 1

FMC Press Release dated May 25, 2022 -- Commissioner Carl Bentzel will host the Maritime Transportation Data Initiative Summit at the Federal Maritime Commission headquarters on Wednesday, June 1, 2022, from 10 am to 2 pm.

The summit is the culmination of 18 industry stakeholder meetings held weekly from November 2021 through April 2022.

The summit will begin with a plenary session from 10:00 am to 11:00 am (Eastern) that will be followed by breakout sessions where groups will be asked to comment on and refine the read-ahead draft provided by Commissioner Bentzel and FMC staff.

The goal of the MTDI is to streamline how industry communicates and shares data to make cargo movement more efficient. Key to achieving this objective is harmonizing definitions, standardizing data reporting, and timeliness in sharing data and making recommendations on how our data supply chain can be more efficient.

Participants have been provided draft materials based on the feedback from the weekly meetings. The Plenary Session can be viewed by the public on the FMC YouTube channel.

“I look forward to welcoming the weekly meeting participants to the Commission next month where we will finish the work we started in December. Industry committed to this initiative and industry recognizes there are issues to be addressed and an opportunity to make improvements in data and information sharing. This effort puts us on a path forward and towards collaborative solutions. I have faith we will be successful in uniting around a set of data transmission standards.”

At the end of the breakout sessions, there will be a readout of the daily work and FMC will integrate comments into a report from which the Commissioner will draft recommendations. Commissioner Bentzel will be presenting these recommendations at the July 13th Commission Meeting.

“This has been and will continue to be, a completely open process. Every meeting has been recorded and is available on the FMC YouTube channel,” said Commissioner Bentzel. “We still have a lot of work to do, but I am confident in that we have the key people with the right expertise committed to this project and its success. We are well on our way to a productive summit and outcome.”

All the weekly participants have been invited. Most will be participating in person. There will be a virtual component for those who cannot make the trip to Washington, DC.

AP Tariffs to Present at VAFFA Networking Event on June 9

Pierre Larenas and Mauricio Larenas of Atlantic Pacific Tariffs, Inc. (AP Tariffs) will be making a presentation at a business networking event hosted by the Venezuelan American Freight Forwarders Association (VAFFA) on June 9, 2022. The event will take place at Sabor Doral Restaurant from 6:00 p.m. to 9:00 p.m. in Doral, Florida, and will be attended by representatives of Venezuelan American Shipping, Transportation and Logistics companies. AP Tariffs' presentation will deal with FMC licensing as well as enforcement and penalties that might be imposed when operating unlicensed. Licensed companies could also face penalties if found not following rules and regulations during an FMC audit. AP Tariffs helps its clients by providing FMC Compliance Management service so they can avoid penalties ($13,132 per occurrence). Experts at AP Tariffs are always available for consultations to guide clients comply with the FMC rules. The tariff publisher is also offering free consultations to potential clients, which are available in both English and Spanish. Contact AP Tariffs today to learn more about its services!

Pierre Larenas Pierre@aptariffs.com 305-610-2244 Mauricio Larenas Mauricio@aptariffs.com 954-461-6152