FMC Provides Temporary Relief From Some Vessel Operator Service Contract Filing Requirements

The Federal Maritime Commission (FMC) has issued a Final Rule allowing the Commission more flexibility in issuing exemptions with respect to service contracts filed by vessel operating common carriers (VOCCs). 85 Fed. Reg. 23227 (April 27, 2020). The Shipping Act requires notice and an opportunity for a hearing for exemptions from the requirements of the Act. The FMC's regulations required the same for an exemption from its regulations, even though this was not required by statute. In light of COVID-19 concerns, the Commission has determined that in some instances the need to act quickly may be more prudent than affording notice and an opportunity for a hearing when granting an exemption. Thus, the Commission has revised 46 CFR 530.13 to allow for an exemption to the service contract requirements without notice or a hearing.