Executive Briefings

Federal Maritime Commission Approves Tariff Exemption for NVOs

The Federal Maritime Commission approved rules Wednesday that would exempt non-vessel-operating common carriers from the legal requirement to use published tariffs as the basis for rate-making.

The new regulation will allow NVOs to negotiate "rate arrangements" with customers. The commission will publish the final draft on Feb. 23, and it will take effect in mid-April, 45 days after it is published in the Federal Register.

The rules, approved on a 3-1 vote, will only apply to some 3,400 NVOs licensed and bonded by the commission. Foreign NVOs, including those with FMC bonds, will still be obligated to maintain tariffs. Chairman Richard A. Lidinsky Jr., said the commission will launch an inquiry on extending the rule to foreign NVOs, which should take about a year.

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The Federal Maritime Commission approved rules Wednesday that would exempt non-vessel-operating common carriers from the legal requirement to use published tariffs as the basis for rate-making.

The new regulation will allow NVOs to negotiate "rate arrangements" with customers. The commission will publish the final draft on Feb. 23, and it will take effect in mid-April, 45 days after it is published in the Federal Register.

The rules, approved on a 3-1 vote, will only apply to some 3,400 NVOs licensed and bonded by the commission. Foreign NVOs, including those with FMC bonds, will still be obligated to maintain tariffs. Chairman Richard A. Lidinsky Jr., said the commission will launch an inquiry on extending the rule to foreign NVOs, which should take about a year.

Read Full Article