Service Contract Filing

The Federal Maritime Commission is proposing to permit ocean common carriers to file original service contracts up to 30 days after the contract goes into effect. Comments on this proposed rule are due no later than March 5.

The Shipping Act of 1984 permits carriers and shippers to enter into individual, confidential service contracts for the international transportation of cargo and requires that these contracts be filed with the FMC. Under current regulations original contracts must be filed on or before their effective date, while amendments must be filed within 30 days after they go into effect. However, in response to the COVID-19 pandemic and its impact on contract negotiation and filing, in April 2020 the FMC granted a temporary exemption permitting original contracts to also be filed up to 30 days after their effective date.

The FMC has now tentatively determined to make this exemption permanent. The FMC explains that doing so can help avoid the commercial harm associated with situations in which cargo is received after the parties have agreed to a contract but before the contract is filed. The FMC also believes this change would not materially impact its ability to provide oversight and protect the shipping public, noting that it has not received any shipper complaints regarding delayed filing of amendments or contracts.

Ocean Transportation Intermediary License Applications

The FMC has given notice that the following have filed applications (1) for ocean transportation intermediary licenses as non-vessel- operating common carriers and/or ocean freight forwarders or (2) to amend an existing OTI license or the qualifying individual for a licensee.

- Cavalry Logistics International Inc., Dearborn, MI (QI change)

- Conavenca Freight Forwarder LLC, Doral, FL (QI change)

- Concepts In Freight Northeast LLC, Union, NJ (new NVO and OFF license)

- Confianca Logistics LLC, Miami, FL (new NVO and OFF license)

- National Van Lines Inc., Broadview, IL (QI change)

- OTX Logistics Inc. (CA Corp) dba Book Express Network, Cerritos, CA (new NVO and OFF license)

- Shipping LLC, Portsmouth, VA (new OFF license)

- RSA Global Logistics LLC, Langhorne, PA (adding trade name “Pacific Lloyd”)

- Speed Worldwide Logistics, Torrance, CA (new NVO and OFF license)

- U.S. Food Group LLC, Deltona, FL (new NVO and OFF license)

- Upper Logistics Inc., Miami, FL (additional QI)

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