Federal Maritime Commission Proposes New Rules For Ocean Transportation Intermediaries

Michael Cavanaugh is a Partner in our Washington D.C. office, Farid Hekmat an Associate in our Washington D.C. office

On May 31, 2013, the United States Federal Maritime Commission (FMC) issued a wide-ranging proposed rulemaking significantly affecting the licensing, financial responsibility and duties of Ocean Transportation Intermediaries (OTIs).

There are approximately 5,700 OTIs, including domestic and foreign Non-Vessel Operating Common Carriers (NVOCCs) and ocean freight forwarders, operating in United States trades. All will be affected by the proposed changes. Although the proposed new rules are "intended to adapt to changing industry conditions, improve regulatory effectiveness, improve transparency, streamline processes and reduce regulatory burdens," they impose significant new conditions and alter the regulatory environment and risks for OTIs .