[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Notices]
[Pages 67197-67198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27919]


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FEDERAL MARITIME COMMISSION


Advisory to Ocean Common Carriers, Conferences and Discussion 
Agreements of Such Carriers, Shippers, Shippers' Associations, Ocean 
Transportation Intermediaries and Tariff Publishers in the Foreign 
Commerce of the United States Regarding Actions in Response to 
Congestion at Ports on the West Coast of the United States

October 29, 2002.
    The Federal Maritime Commission (``Commission'') has been 
monitoring ongoing developments relating to the congestion and delays 
that recently have occurred, and may continue for some time, at U.S. 
West Coast ports. We also have received several inquiries from 
interested parties as to the legality of certain carrier actions being 
taken or proposed. Accordingly, the Commission wishes to remind the 
regulated industry and the shipping public of the general requirements 
of the Shipping Act of 1984, 46 U.S.C. app. Sec.  1701 et seq. (``1984 
Act'') and of the Commission's rules that govern rate changes that 
result in an increased cost to the shipper. These provisions should 
provide guidance to shippers and carriers in this situation.
    Section 8(d) of the 1984 Act, and the Commission's rules on tariffs 
at 46 CFR 520.8, generally prohibit any ``change in an existing rate 
that results in an increased cost to the shipper from becoming 
effective earlier than 30 calendar days after publication.'' The 
Commission's rules on tariffs state that the ``rates, charges, and 
rules applicable to any given shipment shall be those in effect on the 
date the cargo is received by the common carrier or its agent including 
originating carriers in the case of rates for through transportation.'' 
46 CFR 520.7(c).
    With respect to service contracts, the public is reminded that the 
specific terms of individual service contracts generally govern the 
rates and service obligations of the parties. Any variance from 
specific terms must be authorized otherwise, either by the terms of the 
contract itself or by reference therein to other applicable authority, 
such as carrier rules tariffs which would normally be subject to the 
30-day notice requirement. Of course, service contract terms always may 
be varied by mutual agreement of the parties reflected in an amendment 
duly filed with the Commission and otherwise consistent with applicable 
regulations and statutes.
    The Commission wishes to caution the industry and the shipping 
public that these general rules remain in effect and that any actions 
inconsistent with these rules would be permissible only if they are 
authorized by other lawful provisions. Specifically, any surcharges 
published in tariffs that are designed to address the consequences of 
continuing congestion at U.S. West Coast ports generally should not be 
instituted without the required 30-day notice, and may be applied only 
in conformance with the applicable ``effective date'' rule, cited 
above. Again, parties to service contracts lawfully may negotiate 
alternative means of addressing the costs associated with this 
congestion through amendment of their service contacts.
    The Commission recognizes that a host of differing circumstances 
and questions will arise as the West Coast dock situation continues to 
unfold. The foregoing does not attempt to address all such matters--it 
is intended to serve as general guidance. Involved parties who have any 
uncertainty as to the legality of the actions they are encountering or 
proposing may wish to obtain legal counsel. The Commission will 
continue to monitor this situation and is available to answer general 
questions on applicable legal requirements. Any questions relating to 
this Advisory or other aspects of common carriers' service in the 
present situation may be directed to Vern W. Hill, Director, Bureau of 
Enforcement, at (202) 523-5783 or by electronic mail at [email protected].

[[Page 67198]]

    This Advisory will be posted on the Commission's website at http://www.fmc.gov, posted in the Office of the Secretary, 800 N. Capitol 
Street, NW., Room 1046, Washington, DC 20573, and published in the 
Federal Register.

    By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 02-27919 Filed 11-1-02; 8:45 am]
BILLING CODE 6730-01-P