FMC Announces Hearings for Liner Trade Investigation of Inadequate Vessel Space and Containers

The Federal Maritime Commission has announced that it will hold confidential hearings on May 11-13, 2010 pursuant to its investigation into current conditions and practices in the U.S. liner trades, including container vessel capacity and equipment availability, as well as potential impediments to the flow of ocean-borne import and export trades.

(FMC ordered the subject investigation pursuant to recent reports of container vessel capacity and equipment constraints, which have raised concerns over both the cause of the constraints and whether those constraints could hinder the nascent economic recovery.

FMC’s investigation was also ordered pursuant President Obama’s National Export Initiative goal of doubling U.S. exports over the next five years and Executive Order directing the use of "every available federal resource" in support of that effort.)

Commissioner Dye to Investigate Recent Liner Trade Conditions, Etc.

Under FMC’s order of investigation, the assigned Fact-Finding Officer (in this case, Commissioner Dye) is to develop a record on the following:

• Recent conditions in the U.S. export liner trades;
• Recent conditions in the U.S. import liner trades;
• Current and forecasted common practices by vessel-operating common carriers (VOCCs) regarding the management and allocation of VOCC-, shipper-, and leasing company-owned equipment for the U.S. import and export trades, specifically the management, supply, allocation and availability of containers for all U.S. export commodities and categories.
• Current practices and plans of VOCCs regarding the deployment of vessel capacity in the U.S. trades;
• Current and planned common practices relating to service contracting in the U.S. liner trades, specifically:
• The practices of VOCCs with respect to the booking of cargo before and after a minimum quantity commitment of a service contract has been met but before the term of that contract has expired (VOCC cancellation of cargo bookings; overbooking of cargo by carriers and shippers; and the impact of these practices on the availabilty of the liner service to meet the demands of U.S. exporters and importers); and
• Any related conditions or practices that affect the U.S. liner trades.

(Commissioner Dye’s interim report of findings and recommendations is due by June 15, 2010, and the final report is due by July 31, 2010.)

(See ITT’s Online Archives or 03/18/10 news, (Ref: 10031805), for BP summary of FMC’s order of investigation.

See ITT’s Online Archives or 04/19/10 news, (Ref: 10041915), for BP summary of Commissioner Dye’s comments on vessel capacity at a recent NCBFAA conference.

See ITT’s Online Archives or 03/24/10 news, (Ref: 10032430), for BP summary of a House subcommittee hearing the capacity of ocean-going vessels to meet U.S. import and export requirements.)

FMC contact -- Fact Finding Officer (202) 523-5715

FMC notice (dated 04/27/10) available at http://www.fmc.gov/userfiles/pages/file/FF%2026-003%20-%20New%20York.pdf