Federal Maritime Commission Initiatives and Partnerships October 10, 2014

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

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

FMC HHG Jurisdiction

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)

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)

FMC Ocean Transportation Intermediary (OTI) Licensing Requirements

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

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.

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

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

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

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

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

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

Licensing FAQS

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: www.fmc.gov 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, 2014. Comments due December 12, 2014

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

Strategic Use of CADRS to Prevent and Resolve Disputes

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

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

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

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

Agency Congestion Initiative

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

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

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

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

Partnerships

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)

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)

Partnering with Industry – Get Involved! IAM Mutual Outreach Consultation Link to Commission Website & HHG Brochure on your website: http://www.fmc.gov/news/brochures.aspx 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

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