2. Federal Maritime Commission Initiatives and Partnerships
October 10, 2014

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

4. 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

5. FMC HHG Jurisdiction

6. 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)

7. HHG Jurisdiction
FMC does not exercise jurisdiction over military or GSA HHG shipments
FMC does not have criminal jurisdiction
FMC does not 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)

8. FMC Ocean Transportation Intermediary (OTI) Licensing Requirements

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

10. 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.

11. OFF vs. NVOCC Services OFF NVOCC 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

12. OFF vs. NVOCC Services (cont’d.)
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

13. Comparing OFFs vs. NVOCCs
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”
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

14. Comparing NVOCCs vs. FFs
OFF
NVOCC
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

15. 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

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

17. Licensing FAQS

18. 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:
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, Comments due December 12, 2014

19. 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

20. Strategic Use of CADRS to Prevent and Resolve Disputes

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

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

23. 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

24. 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

25. Agency Congestion Initiative

26. 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

27. 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

28. 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

29. 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

30. Partnerships

31. 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)

32. 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)

33. Partnering with Industry – Get Involved!
IAM
Mutual Outreach
Consultation
Link to Commission Website & HHG Brochure on your website:
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

34. Questions?

35. Thank You! Jennifer M. Gartlan Deputy Director
Office of Consumer Affairs
& Dispute Resolution Services
Federal Maritime Commission
(202) (direct)
(202) (CADRS main)
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