Vessel-sharing agreements deserve added scrutiny

The National Customs Brokers & Forwarders Association Of America, Inc. (NCBFAA) has filed comments in response to an Advanced Notice of Proposed Rulemaking (ANPRM) from the Federal Maritime Commission (FMC) regarding Discussion Agreements and vessel sharing agreements (VSAs).

In its ANPRM, the FMC wants the carriers to provide monthly before and after data concerning their utilization of approved Agreements, what if any operational changes have been made and the effect of those changes.

Although the NCBFAA generally endorsed the Commission’s proposal, the Association asked the agency to require additional data in the hope that the Commission would be able to take a closer look at VSAs’ involvement of mega-ships and the potential effect on port congestion.

In fact, argue brokers, the FMC should require the carriers to demonstrate that VSA approval will not lead to severe congestion that ends up putting the burden of significant demurrage and detention costs on shippers and OTIs.

Because recent economic discussions hint at diminishing cost savings from use of these mega-ships, the NCBFAA is asking the FMC to consider whether using these mega-ships will increase port congestion and how any costs that are generated due to that congestion are to be allocated.

Accordingly, the NCBFAA suggested a non-exhaustive laundry list of preconditions the Commission require for obtaining approval of VSAs. These would address vessel coordination, chassis availability, efficiency of chassis pools, chassis contractual restrictions, drayage availability, effect on dwell times, container turnaround times, and procedures to avoid imposition of unfounded/unfair demurrage or detention costs on shippers.

In conclusion, the NCBFAA asked the Commission to require carriers seeking approval of any agreement to provide the FMC with their contingency plans for handling the cargo when they can’t access the port of destination.

In that way, instead of trying to find the information within the carriers, OTIs and other parties would be able to access that information from the Commission, conclude brokers.