[Federal Register Volume 62, Number 223 (Wednesday, November 19, 1997)]
[Rules and Regulations]
[Pages 61647-61648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30370]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 383

[Docket No R-156]
RIN 2133-AB16


Determination of Fair and Reasonable Guideline Rates for the 
Carriage of Less-Than-Shipload Lots of Bulk and Packaged Preference 
Cargoes on U.S.-Flag Commercial Liner Vessels; Removal of Part

AGENCY: Maritime Administration, DOT.

ACTION: Final Rule.

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SUMMARY: In connection with the President's Regulatory Reinvention 
Initiative, the Maritime Administration (MARAD), after having initiated 
a rulemaking with a notice of proposed rule-making (NPRM), has reviewed 
the subject regulations at 46 CFR part 383 and has determined to 
withdraw that rulemaking and remove the entire part. Part 383 has 
become unnecessary in view of the decline in the volume of U.S.-flag 
vessel liner service.

DATES: This rule is effective November 21, 1997.

FOR FURTHER INFORMATION CONTACT: Michael P. Ferris, Director, Office of 
Costs and Rates, Telephone: (202) 366-2324.

SUPPLEMENTARY INFORMATION: In administering the cargo preference 
program pursuant to the Cargo Preference Act of 1954, incorporated in 
section 901(b), Merchant Marine Act, 1936, as amended (46 App. U.S.C. 
1241(b)), MARAD provides guideline rates for the carriage of 
agricultural preference cargoes to the U.S. Department of Agriculture 
(USDA) and the Agency for International Development (AID) (``sponsoring 
agencies'') for bagged and packaged agricultural commodities carried on 
bulk vessels. The methodology for calculating guideline rates is stated 
in regulations at 46 CFR part 382. Those sponsoring agencies requested 
that MARAD extend the scope of its regulations at 46 CFR part 383 to 
provide them with guideline rates for bagged and packaged agricultural 
commodities carried on liner vessels in less-than-shipload lots. 
Accordingly, MARAD published a NPRM (60 FR 20069; April 24, 1995) 
proposing to amend its regulations in part 383 to provide guideline 
rates for bagged or packaged agricultural commodities in parcels of 
5,000 tons and greater on vessels in liner services.

[[Page 61648]]

    After careful review of the methodology that was proposed in the 
NPRM and the comments received in response to that methodology, MARAD 
has concluded that the current rule, as well as the amendments that it 
proposed to that rule, cannot adequately apply to liner vessels the 
methodology used in determining guideline rates for bulk vessels due to 
the fundamental difference between bulk and liner vessels. MARAD's 
basic assumption that large liner cargo parcels take on significant 
aspects of bulk shipment was not supported by the comments. Several 
commenters pointed out that even when large parcels are carried to the 
same country or area, the cargo discharging is typically done at 
numerous ports in the region, subjecting the liner operators to much 
greater risk of delays than bulk operators, which typically unload in 
one or two ports. In addition, voyages in the liner preference trades 
typically involve multiple shippers and receivers, each with their own 
shipment terms. MARAD believes that expansion of the scope of part 383, 
which addresses less-than-shipload lots of bulk preference cargo on 
liner vessels, is not appropriate at this time and that it would be 
more fitting to remove the entire part. This conclusion is supported by 
the fact that the rule has not been utilized since 1995, and that, with 
the sharp decline in the number of U.S.-flag general cargo vessels 
operating in liner services, it is very unlikely that any future 
preference cargoes will fall within the purview of the regulations 
contained therein. In the absence of a regulation, MARAD can make an ad 
hoc determination, if such a shipment is made in the future, under its 
general authority to administer the cargo preference laws of the United 
States.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review); Department of 
Transportation (DOT) Regulatory Policies Procedures; Pub. L. 104-121.

    This rulemaking has been reviewed under Executive Order 12866 and 
Department of Transportation Regulatory Policies and Procedures (44 FR 
11034; February 26, 1979). It is not considered to be an economically 
significant regulatory action under section 3(f) of E.O. 12866, since 
it has been determined that it is not likely to result in a rule that 
may have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, or tribal governments or communities. It is not considered to be 
a significant rule under the Department's Regulatory Policies and 
Procedures.
    MARAD has determined that this rulemaking presents no substantive 
issue which it could reasonably expect would produce meaningful public 
comment since it is merely removing a rule that is obsolete, the 
retention of which could serve no useful purpose. Accordingly, pursuant 
to 5 U.S.C. 553 (c) and (d), the Administrative Procedure Act, MARAD 
finds that good cause exists to publish this as a final rule, without 
opportunity for public comment, and to make it effective in less than 
thirty days after the date of publication.
    This rule has not been reviewed by the Office Management and Budget 
under Executive Order 12866.

Federalism

    The Maritime Administration has analyzed this rulemaking in 
accordance with the principles and criteria contained in Executive 
Order 12612, and has determined that it does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

Regulatory Flexibility Act

    The Maritime Administration certifies that this rulemaking will not 
have a significant economic impact on a substantial number of small 
entities since MARAD has historically calculated guidline rates for 
only three operators in the liner trade.

Environmental Assessement

    The Maritime Administration has considered the environmental impact 
of this rulemaking and has concluded that an environmental impact 
statement is not required under the National Environmental Policy Act 
of 1969.

Paperwork Reduction Act

    This rulemaking contains no reporting requirement that is subject 
to OMB approval under 5 CFR part 1320, pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
    This rule does not impose any unfunded mandates or requirements 
that will have an impact on the quality of the human environment.

List of Subjects in 46 CFR part 383

    Agricultural commodities, Cargo vessels, Government procurement, 
Grant programs--foreign relations, Loan programs--foreign relations, 
Water transportation.

    Accordingly, 46 CFR part 383 is hereby removed and reserved.

    By Order of the Acting Maritime Administrator.

    Dated: November 14, 1997.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 97-30370 Filed 11-18-97; 8:45 am]
BILLING CODE 4910-81-P