FMC Issues Final Rules For NVOCC Service And Rate Agreements

Michael Cavanaugh and Eric Lee are Partners and Daniel Burkard is an Associate in the Washington D.C. office

HIGHLIGHTS:

• The Federal Maritime Commission (FMC) issued Final Rules pertaining to Non-Vessel Operating Common Carrier (NVOCC) Service Agreements (NSAs) and Negotiated Rate Agreements (NRAs) that will become effective Aug. 22, 2018.
• The Final Rule on NVOCC Service Agreements eliminates the requirements that NVOCCs file NSAs with the FMC and publish essential terms of each NSA in tariff format; but it adds requirements that NVOCCs provide free access to its tariffs to the public and include in their tariffs a notice that they will conduct business utilizing NSAs.
• The Final Rule on NRAs enables NVOCCs to amend NRAs at any time, permits NVOCCS to include non-rate economic terms in an NRA, and allows pass through of vessel operators' General Rate Increases (GRIs) and pass-through rates and charges, if and when incurred. The FMC also will allow NRAs to