Signals: FMC and ocean freight industry news and developments View this email in your browser Volume 24, Number 11 November 3, 2020 Oakland, California SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index. Signals™ Headlines - November 3, 2020 • FMC Will Continue to Allow Carriers 30 Days to File New Service Contracts • FMC Requests Comments on the Term “Merchant” in Carrier Bills of Lading • Proposal to Change FMC Regulation of Cruise Lines Issued • Transpacific Eastbound Carriers File GRIs Effective November 15 and December 1, 2020 • Caribbean Shipowners Association Members Announce New Surcharge FMC Will Continue to Allow Carriers 30 Days to File New Service Contracts The U.S. Federal Maritime Commission (FMC) has issued an order that will extended the temporary exemption that allows ocean carriers up to thirty (30) days to file new service contracts with the Commission. In the interest of providing certainty and stability to supply chain stakeholders, the Commission believes it is necessary to extend this exemption until June 1, 2021. The temporary order issued under FMC Docket No. 20-06 was scheduled to expire December 31, 2020. The Commission has also voted to initiate a Notice of Proposed Rulemaking (NPRM) that will, if ultimately approved, make this temporary exemption permanent. The FMC’s decision to grant an extra 30 days to file new service contracts into its SERVCON database is similar to a decision issued in 2017 that allows service contract amendments to be filed in SERVCON within thirty (30) calendar days after the effective date. That decision covered only service contract amendments. Since April 28, 2020 the FMC has accepted both new and amended service contracts filed up to thirty (30) days after they take effect, provided the service contract is agreed in writing by all parties. The Notice of Proposed Rulemaking (NPRM) that would make this exemption permanent has not yet been issued. It will allow ocean container industry stakeholders the opportunity to share their views through a public comment period. The Commission will consider all public comments before voting on final regulatory actions. Back to top FMC Requests Comments on the Term “Merchant” in Carrier Bills of Lading The Federal Maritime Commission has issued a Notice of Inquiry (NOI) under FMC Docket No. 20-16 to solicit public comment on the practice of vessel-operating common carriers (VOCCs or carrier) defining “Merchant” in their bills of lading to apply to persons and entities with whom the VOCCs may not be in contractual privity. Generally, the Commission seeks public comment as to 1) how VOCCs apply the term “Merchant” in their bills of lading; 2) whether the definition, as applied, subjects third parties who are not in contractual privity with the carrier to joint or several liability; and 3) whether carriers have enforced the definition of merchant against third parties that have not consented to be bound by, or otherwise accept, the terms and conditions of the bill of lading. Interested parties are requested to submit comments on or before November 6, 2020 to the Commission’s Secretary, email: [email protected] Back to top Proposal to Change FMC Regulation of Cruise Lines Issued On October 14, 2020 the FMC issued its Advance Notice of Proposed Rulemaking (ANPRM) under FMC Docket No. 20-15 to request information about possible changes to regulations governing the definition of “non-performance” by a cruise line and the process for obtaining a refund when a cruise vessel does not sail as scheduled. In addition to general comments, the Commission is requesting focused comment on several issues identified by Commissioner Louis Sola in Fact Finding Investigation No. 30. The notice published in the Federal Register and requests interested parties submit comments on or before November 13, 2020 to the Commission’s Secretary, email: [email protected] Back to top Transpacific Eastbound Carriers File GRIs Effective November 15 and December 1, 2020 Several leading carriers serving the Trans Pacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective November 15, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The November 15th GRIs will be the twenty-second GRI of 2020 for the East Asia/USA trade lane. TRANSPACIFIC EASTBOUND (Asia to USA) GENERAL RATE INCREASE (GRI) Effective November 15, 2020 Carrier in USD, per 40ft ctr APL 1000 CMA CGM 1000 COSCO (see note 1) 1000 Evergreen 1000 Hapag Lloyd (see note 2) 1200 HMM 1000 ONE 1000 Yang Ming 1000 NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only. NOTE 2: Hapag Lloyd GRIs effective November 15, 2020 is a postponement of the GRIs previously effective October 15, 2020. Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective December 1, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The December 1st GRIs will be the twenty- third GRI of 2020 for the East Asia/USA trade lane. TRANSPACIFIC EASTBOUND (Asia to USA) GENERAL RATE INCREASE (GRI) Effective December 1, 2020 Carrier in USD, per 40ft ctr APL 1000 CMA CGM 1000 COSCO (see note 1) 1000 Evergreen 1000 Hapag Lloyd (see note 2) 1200 HMM 1000 ONE 1000 Yang Ming 1000 NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only. NOTE 2: Hapag Lloyd GRIs effective December 1, 2020 is a postponement of the GRIs previously effective November 1, 2020. These GRIs had previously been postponed from effective October 1, 2020 to effective November 1, 2020 Back to top Caribbean Shipowners Association Members Announce New Surcharge Three carrier members of the Caribbean Shipowners Association (CSA), FMC Agreement No. 010979, recently announced new surcharge, Caribbean Operational Service Viability Charge, effective November 29, 2020. The CSA Carrier members, including Seaboard Marine, Tropical Shipping and Crowley Caribbean, serve the USA-Caribbean trade lane. Seaboard Marine’s new surcharge will apply to shipments from ports in the USA to ports in Antigua, Barbados, Guyana, St. Kitts, St. Maarten, Suriname, and Trinidad at USD 75/150/159 per 20/40/40HC, and USD 3.18 per W/M, or USD 50 per vehicle under 700 CFT. Tropical Shipping announced that due to increasing cost of non-fuel related operational expenses, it will establish a new surcharge between the ports in the continental U.S. and ports in the Dominican Republic, Bahamas, Cayman Islands, Turks & Caicos and Belize at USD 50/100/113 per 20/40/40HC, and USD 0.12 per CWT / USD 0.06 per CFT, or USD 2.50 per W/M, or USD 50 per vehicle under 700 CFT, or USD 0.94 per barrel, or USD 5 per pallet. Amounts between ports in Puerto Rico/the U.S. Virgin Islands and ports in the British Virgin Island, Bahamas, Dominican Republic, Turks & Caicos, Cayman Islands, Windward Island, Leeward Island, South America and Belize will be USD 40/80/90 per 20/40/40HC, and USD 0.10 per CWT / USD 0.05 per CFT, or USD 2 per W/M, or USD 50 per vehicle under 700 CFT, or USD 0.75 per barrel, or USD 4 per pallet. Crowley Caribbean Services LLC will apply a new surcharge for all cargo types between ports in the United States and Puerto Rico and ports in Anguilla, Antigua, Grenada, Guyana, Montserrat, Nevis, Saba, St Barts, St Croix, St Eustatius, St John US VI, St Kitts, St Thomas, Tortola, Trinidad, Virgin Gorda at USD 75/150/169 per 20/40/over 40’, and USD 50 per vehicle, truck, van, or SUV. Back to top SIGNALS™ is also available in Chinese and Spanish. Navigating the regulatory seas can be difficult. Stay afloat with the latest updates on the U.S. Federal Maritime Commission and Shipping Act regulation with SIGNALS™. Sign-up for SIGNALS™ emails. You will receive our monthly newsletter directly in your INBOX. All issues of SIGNALS™ are available on the web at www.dpiusa.com "Navigating the Regulatory Seas" is a service mark of Distribution-Publications, Inc.© The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it. Copyright © 2020 Distribution-Publications, Inc., All rights reserved. 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