[Federal Register Volume 67, Number 96 (Friday, May 17, 2002)]
[Notices]
[Pages 35112-35113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12440]


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FEDERAL MARITIME COMMISSION

[Petition No. P1-02]


Petition of the National Customs Brokers and Forwarders 
Association of America, Inc. and the International Association of 
NVOCCS, Inc. for an Investigation of the Contracting Practices of the 
Transpacific Stabilization Agreement; Notice of Filing and Request for 
Comments

    Notice is hereby given that the National Customs Brokers and 
Forwarders Association of America, Inc. and the International 
Association of NVOCCs, Inc. (collectively, ``Petitioners'') have 
petitioned the Commission for an investigation under section 11(c) of 
the Shipping Act of 1984 (``Shipping Act'') of certain activities by 
the members of the Transpacific Stabilization Agreement (``TSA'').
    In particular, Petitioners request that the Commission determine 
whether TSA's members have violated the Shipping Act through 
discriminatory service contracting practices with regard to traffic 
moving in the eastbound transpacific trades that intentionally 
discriminate against Ocean Transportation Intermediaries (``OTIs'') in 
violation of sections 10(c)(7) and 10(c)(8) of the Shipping Act.
    In support of this contention, Petitioners claim that TSA's members 
have refused to negotiate with OTIs or shippers' associations 
representing OTIs until such time as they completed negotiations and 
signed contracts with proprietary shippers. Petitioners also claim that 
TSA's members have agreed to charge OTIs substantially higher rates 
than are being assessed against proprietary shippers for exactly the 
same services, regardless of volume or other lawful transportation 
factors. Petitioners state that this is being done through a General 
Rate Increase (``GRI'') and Peak Season Surcharge (``PSS'') that are 
mandatory for OTI service contracts, but waived for contracts with 
beneficial cargo owners.
    Petitioners further assert that TSA members' refusal to negotiate 
or enter into service contracts with OTIs at the same time as 
proprietary shippers constitutes an unreasonable refusal to deal in 
violation of section 10(c)(1) of the Shipping Act. Petitioners also 
request that the Commission determine whether these practices are 
causing unreasonable increases in transportation cost for OTIs, their 
customers and the shipping public within the meaning of section 6(g) of 
the Shipping Act.
    Petitioners also contend that TSA and its members appear to be 
abusing the ``voluntary guidelines'' authorized by section 5(c) of the 
Shipping Act by failing to file their true agreements with the 
Commission, and are thus operating under an unfiled agreement in 
violation of section 10(a)(3) of the Shipping Act.
    If the Commission's investigation concludes that Shipping Act 
violations have occurred, Petitioners urge the Commission to: (1) Issue 
sanctions against TSA and its members pursuant to section 13 of the 
Shipping Act for violations found; (2) require TSA member lines to pay 
reparations pursuant to section 11(g) of the Shipping Act to those OTIs 
who have been damaged; and (3) seek appropriate injunctive relief to 
enjoin further operation of TSA pursuant to sections 6(g) and (h) of 
the Shipping Act.
    The Petition was filed under Rule 69 of the Commission's Rules of 
Practice and Procedure, 46 CFR 502.69, and states that it was served 
upon counsel for TSA. Replies to the petition, as provided by Rule 69 
and Rule 74, 46 CFR 502.74, are due May 28, 2002. In order for the 
Commission to make a thorough evaluation of the petition, the 
Commission is also inviting interested persons to submit their comments 
on the petition no later than May 28, 2002. Comments shall consist of 
an original and 15 copies, or, if e-mailed, as an attachment in 
WordPerfect 8, Microsoft Word 97, or earlier versions of these 
applications; be directed to the Secretary, Federal Maritime

[[Page 35113]]

Commission, 800 North Capitol Street, NW, Washington, DC 20573-0001 (e-
mail to: [email protected]); and be served on Petitioners' counsel: 
David P. Street and Edward D. Greenberg, Galland, Kharasch, Greenberg, 
Fellman & Swirsky, P.C., 1054 Thirty-First Street, NW, Washington, DC 
20007-4492; and on counsel for TSA, Stanley Sher, Sher & Blackwell, 
1850 M Street, NW, Suite 900, Washington, DC 20036.
    Copies of the petition are available at the Office of the Secretary 
of the Commission, 800 N. Capitol Street, NW., Room 1046, by telephone 
request at 202-523-5725 or through email request directed to 
[email protected].
    Parties participating in this proceeding may elect to receive 
service of the Commission's issuances in this proceeding through e-mail 
in lieu of service by U.S. mail. A party opting for electronic service 
shall advise the Office of the Secretary in writing and provide an e-
mail address where service can be made.

Bryant L. VanBrakle,
Secretary.
[FR Doc. 02-12440 Filed 5-16-02; 8:45 am]
BILLING CODE 6730-01-P