[Federal Register Volume 69, Number 18 (Wednesday, January 28, 2004)]
[Notices]
[Pages 4159-4160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1803]


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FEDERAL MARITIME COMMISSION

[Petition No. P4-03]


Petition of China Shipping Container Lines Co., Ltd. for 
Permanent Full Exemption From the First Sentence of Section 9(c) of the 
Shipping Act of 1984

Served: January 22, 2004.

Order

    By petition filed July 31, 2003, China Shipping Container Lines 
Co., Ltd. (``China Shipping'' or ``Petitioner'') requested that the 
Federal Maritime Commission (``FMC'' or ``Commission'') exempt it from 
certain provisions of section 9 of the Shipping Act of 1984, 46 U.S.C. 
app. 1708 (``Controlled Carrier Act''). The requested exemption would 
enable China Shipping to reduce tariff rates immediately, rather than 
subject to the 30-day waiting period prescribed by the Controlled 
Carrier Act.\1\ Notice of the filing of the petition was published in 
the Federal Register on August 8, 2003, and interested parties were 
given until August 25, 2003, to file comments. 68 FR 47310. For the 
reasons set forth below, the Commission has determined to re-open this 
proceeding for a brief comment period before it makes its final 
determination in this matter.
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    \1\ Section 9(c) states, in relevant part: ``Notwithstanding 
section 8(d) of this Act and except for service contracts, the 
rates, charges, classifications, rules, or regulations of controlled 
carriers may not, without special permission of the Commission, 
become effective sooner than the 30th day after the date of filing 
with the Commission.'' 46 U.S.C. app. 1708(c).
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I. The Petition

    China Shipping explains that ocean common carriers, with the 
exception of controlled carriers, are permitted to reduce their rates 
effective immediately upon filing.\2\ Only controlled carriers are 
subject to the 30-day waiting period for reductions in tariff rates, as 
set forth in section 9(c).\3\
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    \2\ Section 8(d) of the Shipping Act of 1984 (``Shipping Act'') 
requires that all common carriers, controlled or otherwise, must 
give 30 days notice for rate increases. 46 U.S.C. app. 1707(d).
    \3\ Section 3(8) of the Shipping Act defines ``controlled 
carrier'' as: an ocean common carrier that is, or whose operating 
assets are, directly or indirectly, owned or controlled by the 
government under whose registry the vessels of the carrier operate; 
ownership or control by a government shall be deemed to exist with 
respect to any carrier if--
    (A) a majority portion of the interest in the carrier is owned 
or controlled in any manner by that government, by any agency 
thereof, or by any public or private person controlled by that 
government; or
    (B) that government has the right to appoint or disapprove the 
appointment of a majority of the directors, the chief operating 
officer, or the chief executive officer of the carrier.
    46 U.S.C. 1702(8).
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    On March 27, 1998, the Commission granted China Ocean Shipping 
(Group) Ltd. (``COSCO'') a limited exemption from the 30-day waiting 
requirement of section 9(c), allowing COSCO to decrease its tariff 
rates to levels which would meet or exceed those of its competitors 
with no waiting period. Petition of China Ocean Shipping (Group) 
Company for a Limited Exemption from Section 9(c) of the Shipping Act 
of 1984, Petition No. P1-98, 28 S.R.R. 144 (1998)(hereinafter ``1998 
Order''). COSCO has since filed another request, seeking the authority 
to reduce tariff rates on less than 30 days notice, regardless of 
whether it is meeting a rate published by a competitor. Petition No. 
P3-99, Petition of China Ocean Shipping Group (Company) for a Partial 
Exemption from the Controlled Carrier Act. 64 FR 17181 (April 9, 1999). 
China Shipping, in the instant Petition, seeks the same relief as 
requested by COSCO in Petition No. P3-99.

II. Comments

    The Commission received comments in response to China Shipping's 
Petition from the American Institute for Shippers' Associations, Inc. 
and American President Lines, Ltd.
    Recently, the Commission received letters from the Maritime 
Administrator, Captain William G. Schubert, and from the Under 
Secretary of State for Business, Economics and Agricultural Affairs, 
Alan P. Larson, reporting on the recently-signed bilateral Maritime 
Agreement with China.\4\ Both the Maritime Administrator and the Under 
Secretary of State urge the Commission to favorably consider the 
petitions of three Chinese controlled carriers currently under review 
by the Commission.\5\ The Maritime Administrator also urges U.S. 
carriers and shippers to support these petitions.
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    \4\ The Commission will include these letters in the record of 
the proceeding.
    \5\ In addition to the instant Petition, they are: Petition No. 
P3-99, Petition of China Ocean Shipping (Group) Company for a 
Partial Exemption from the Controlled Carrier Act; and Petition No. 
P6-03, Petition of Sinotrans Container Lines Co., Ltd. for a Full 
Exemption From the First Sentence of Section 9(c) of the Shipping 
Act of 1984, as Amended.
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III. Discussion

    The comment period in this proceeding originally closed on August

[[Page 4160]]

25, 2003. However, in light of the information provided by the Maritime 
Administration and the Department of State, the Commission has 
determined to open a brief comment period to allow all persons 
interested in the petition a full and fair opportunity to comment.

Conclusion

    As the Commission will consider the recommendations of the Maritime 
Administration and the Department of State, and is concerned that all 
interested parties have an opportunity to comment, the Commission has 
determined that it will invite further comments from the shipping 
public in this proceeding. The Commission will consider the petition in 
light of these further comments at a meeting to be scheduled promptly 
after close of the comment period.
    Therefore, it is ordered that interested parties may file comments 
relevant to this proceeding until February 23, 2004.

    By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 04-1803 Filed 1-27-04; 8:45 am]
BILLING CODE 6730-01-P