Federal Maritime Commission
Initiatives and Partnerships
October 10, 2014
Jennifer M. Gartlan
Office of Consumer Affairs
& Dispute Resolution Services
Topics Discussed
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Federal Maritime Commission (“FMC”) Household Goods (“HHG”) Jurisdiction
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Licensing Requirements for International Movers
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Strategic Use of CADRS Services to Help Prevent and Resolve Challenges and Disputes
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FMC Port Congestion Initiative
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FMC Governmental and Private Partnerships
FMC HHG Jurisdiction
FMC HHG Jurisdiction
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Statutes and Regulations Applicable to International Movers:
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Shipping Act of 1984, as amended
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46 CFR Part 500
Jurisdiction: Shipments of HHGs that travel between the US and foreign destinations via ocean (including
intermodal transportation)
HHG Jurisdiction
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FMC does not exercise jurisdiction over military or GSA HHG shipments
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FMC does not have criminal jurisdiction
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FMC does not have jurisdiction over:
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Air shipments
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Maritime shipments between the U.S. and another U.S. state or territory (e.g. Puerto Rico to NY, CA to HI –
STB Jurisdiction)
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US interstate truck shipments (FMCSA and STB spilt jurisdiction)
FMC Ocean Transportation Intermediary (OTI) Licensing Requirements
OTI Licenses
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2 Types of OTI Licenses:
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Ocean Freight Forwarder (OFF)
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Non-Vessel Operating Common Carrier (NVOCC)
Can hold both types of licenses simultaneously
FMC OTI License Required
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Any entity in the US that provides OFF or NVOCC services
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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.
OFF vs. NVOCC Services
OFF
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Ordering cargo to port
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Preparing/processing export declarations
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NVOCC
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Purchasing transportation services from ocean carriers
and offering resale to shippers
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Payment of port-to-port or multimodal transportation
charges
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Entering affreightment agreements with underlying
shippers
Booking, arranging for or confirming cargo space
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Preparing/processing delivery orders or dock receipts
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Preparing/processing bills of lading
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Preparing/processing consular documents/arranging for
certification
OFF vs. NVOCC Services (cont’d.)
OFF
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Handling freight or other monies advanced by shippers,
or remitting or advancing freight or other monies or
credit in connection with dispatching shipments
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Coordinating the movement of shipments from origin to
vessel
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Advising exporters re: LOCs, licenses, inspections, etc.
NVOCC
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Leasing containers
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Entering into arrangements with origin or destination
agents
Comparing OFFs vs. NVOCCs
OFF
NVOCC
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Not a common carrier
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Common carrier status under FMC regulations
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Serves as an agent to the shipper
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Serves as a shipper to the ocean common carrier
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Does not issue a House Bill of Lading
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Serves as carrier to its shipper customer(s)
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Must identify the shipper on Master Bill of Lading:
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Normally listed as the shipper on the vessel operator’s
Master Bill of Lading
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John Doe is listed as the shipper
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“FF as agent for John Doe”
Comparing NVOCCs vs. FFs
OFF
NVOCC
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No tariff publication
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Must publish tariff
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Can receive broker compensation from VOCC
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Must file NSAs/Retain NRAs
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Cannot enter into service contracts
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Cannot receive broker compensation from
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Cannot join shipper association
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Can enter into service contracts as shipper
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Can join shipper association
License Exceptions
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Shippers whose primary business is the sale of merchandise
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Vessel Operators that perform FF services for cargo under the their own B/L
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Ocean Freight Brokers
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Entities that exclusively transport HHGs for US military or federal civilian executive agencies
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Agents, employees or unincorporated branch offices of a licensed OTI
Obtaining an OTI License
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NVOCC:
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File FMC-18
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Obtain Bond 75k
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Publish Tariff/File FMC-1
FF:
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File FMC-18
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Obtain Bond 50k
Licensing FAQS
New Licensing Initiatives
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Online Notification of Application
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Begins October 20, 2014
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License Applications no longer published in the Federal Register
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License Applicant notification to be provided on FMC Website: www.fmc.gov
Notice of Proposed Rule Making
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ANPRM issued on July 18, 2013
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Comments led to Revised NPRM; Commission voted to adopt on September 25, 2014
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NPRM Published on Oct. 9, 2014. Comments due December 12, 2014
NPRM: Proposed Changes to Licensing Regulations
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Institute Online License and Registration Renewal Every 3 Years
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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
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New expedited hearing process to address denial, revocation, and suspension of OTI licenses
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Proposal to eliminate requirement for additional $10,000 bond amount for each branch office
Strategic Use of CADRS to Prevent and Resolve Disputes
CADRS Services
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Education and Outreach
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ADR Services:
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Rapid Response and Ombuds
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Facilitation
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Mediation
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Binding Arbitration
Uses for HHG Movers
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Prevent Disputes
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Resolve Disputes with:
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Steamship Lines
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Agents
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Other HHG Movers
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Truckers
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Marine Terminal Operators
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Shipper Customers
Examples of Disputes
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Service Contract Interpretation Disputes
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General Lien Disputes
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Co-loading Challenges
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Freight and/or Surcharge Disputes
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Volume Disputes
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Moving Contract Disputes
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Space and Equipment Challenges
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Demurrage Disputes
CADRS Benefits
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Faster, Easier, Less Formal, Than Litigation
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Less Costly
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Confidential; Avoids Publicity
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Creative, Practical Solutions
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Better for On-going Relationships
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Minimize Risk
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Parties Retain Control of Outcome
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Little to Lose
Agency Congestion Initiative
Port Congestion Initiative
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Objective: Identify national trends and solutions for congestion experienced at US ports
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Action: Commissioners holding Public Forums this fall at 4 ports:
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Los Angeles, CA
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Baltimore, MD
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Charleston, SC
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New Orleans, LA
Public Port Meetings
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September 15, 2014: Port of Los Angeles – Chairman Cordero
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Port Congestion
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Truck Turn Time
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Stakeholder Impact
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Use of Technology to Reduce Congestion and Related Fees
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Pierpass
Public Port Meetings
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October 1, 2014: Port of Baltimore – Commissioners Doyle and Lidinsky
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Truck Gate/Wait Times
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Trucker Appointment System
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“Free Time” Impacts on Gate Operations and Congestion
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Ocean Carrier Arrival “Bunching” impacts port/gate congestion
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Infrastructure
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Measures Taken
Upcoming Public Port Meetings
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October 30, 2014: Port of Charleston – Commissioner Khouri
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Port Congestion
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Infrastructure
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Increase Chassis Use and Efficiency
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Promote Global Trade
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Increase Supply Chain Efficiency
November 3, 2014: Port of New Orleans – Commissioner Dye
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Port Congestion
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Promote Global Trade
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Increase Supply Chain Efficiency
Partnerships
FMC-FMCSA MOU
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Electronic Information Sharing
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Case Referrals, Joint Training/Investigations
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Collaborative Education and Outreach
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Refer consumers to FMC’s Office of Consumer Affairs & Dispute Resolution Services (CADRS)
Informal Evolving HHG Governmental Collaboration
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Surface Transportation Board (STB)
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State and Local Government Collaboration:
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States Attorney General Offices
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Local Governmental Consumer Protection Offices (e.g. Miami Dade Consumer Protection)
Partnering with Industry – Get Involved!
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IAM
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Mutual Outreach
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Consultation
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Link to Commission Website & HHG Brochure on your website: http://www.fmc.gov/news/brochures.aspx
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Participate in Port Forums: October 30 (Charleston) & November 3 (New Orleans)
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Chairman’s Earth Day Award – send nominations between October 8, 2014 – March 14, 2015
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Participate in OTI NPRM Comment Period – Comments due December 12, 2014
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Use CADRS to Prevent/Resolve Disputes and/or Training Opportunities
Questions?
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