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FMC Wants More Details Before Approving Port-Carrier Agreement

Thursday, January 12, 2017
Sandler, Travis & Rosenberg Trade Report

The Federal Maritime Commission announced Jan. 9 that it has rejected the proposed Port of New York/New Jersey Equipment Optimization Discussion Agreement. A Journal of Commerce article states that this agreement was largely designed to allow the Port Authority of New York & New Jersey and the Ocean Carriers Equipment Management Association Agreement to discuss the creation of a portwide chassis pool as part of an effort to reduce congestion and delays at the port.

The FMC rejected the agreement “for failure to meet the clear and definite disclosure standard required by law.” The FMC explained that many of the questions it had about a previous effort to establish this agreement were left unaddressed and unresolved in the more recent filing it has now rejected. FMC Chairman Mario Cordero said that the Commission is not opposed to this particular agreement and that he is willing to meet with the two sides to “explore how to create a narrowly tailored agreement that delivers specific efficiencies.”

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