News

FMC Approves Contracting Authority for NVOCCs

Published: 12/16/2004

The U.S. Federal Maritime Commission approved yesterday, in a 4-1 decision, a final rule authorizing non-vessel operating common carriers (NVOCCs) to enter into confidential service arrangements with their customers. 

The Commission´s decision largely affirms the joint submission that was made to the agency by TIA, NITL, and individual 3PLs last summer to permit NOVCCs to enter into confidential service arrangements with their customers.

In issuing a final rule, the Commission agreed that it would be possible for wholly owned subsidiaries of an NVOCC to participate as the carrier partner to a non-vessel operating common carrier service arrangement (NSA).  However, as was stated in the proposed rule in October, groups of one or more unaffiliated NVOCCs would not be permitted to enter into an NSA due to antitrust concerns.  The issue is pending before the Commission.

"This is a major victory for transportation intermediaries and their shipper customers," said TIA president and CEO Bob Voltmann. "The FMC acted today to remove one of the last artificial vestiges of regulation from the marketplace.  Just as the Interstate Commerce Commission acted to remove artificial barriers from domestic transportation, the FMC has acted to free NVOCCs to meet their customer´s needs in a highly competitive marketplace.  The future positive results from this change can only be imagined today.  We applaud the Commission," Voltmann added.

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