Controlled Carrier News

Hede (HONGKONG) International Shipping Limited has been classified by the US Federal Maritime Commission as a controlled carrier of the Government of the People’s Republic of China and added to the agency’s Controlled Carrier List.The Controlled Carrier List was further revised by removing COSCO Shipping Lines (Europe) GmbH, which has ceased serving the US trades and has cancelled its tariff. Other COSCO entities remain on the list.Controlled Carriers are ocean common carriers operating in the US-foreign trades that are…

The U.S. Federal Maritime Commission (FMC) voted unanimously to grant the Qatar-controlled United Arab Shipping Co. (UASC) exemption from its controlled carrier list which aims to stop price fixing among state-owned shipping companies. UASC will remain subject to all other applicable provisions of the Shipping Act and regulations. “United Arab Shipping Company (UASC) is an industry leader and a pioneer of sorts in international shipping,” FMC Commissioner William P. Doyle said in a statement.

The U.S. Maritime Administration (MARAD) released the U.S./China Agreement on Maritime Transportation, signed yesterday. It also released the Memorandum of Consultations relating to the agreement. The agreement does not come into effect until the U.S. Federal Maritime Commission (FMC) rules favorably on the pending requests of Chinese carriers for partial relief from the Controlled Carrier restrictions and China takes steps to harmonize its processes in accordance with the agreement.

The U.S. Maritime Administration (MARAD) released the U.S./China Agreement on Maritime Transportation, signed this week. It also released the Memorandum of Consultations relating to the agreement. The agreement does not come into effect until the U.S. Federal Maritime Commission (FMC) rules favorably on the pending requests of Chinese carriers for partial relief from the Controlled Carrier restrictions and China takes steps to harmonize its processes in accordance with the agreement. Source: HK Law

The Federal Maritime Commission (FMC) issued a Notice stating that it will meet in closed session on January 21, 2004 to consider various issues related to China. Matters to be considered include the petition of China Ocean Shipping (Group) Company for a partial exemption from the Controlled Carrier Act; the petitions of China Shipping Container Lines Co., Ltd. and SINOTRANS Container Lines Co., Ltd. for full exemptions from the first sentence of section 9(c) of the Shipping Act of 1984; and review of shipping restrictions, requirements, and practices of the People’s Republic of China. (1/2/04). (Source: HK Law)

FMC considered the petitions of three Chinese controlled carriers for relief from the 30-day waiting requirement for reduction of tariff rates of the Controlled Carrier Act (Petition Nos. P3-99, P4-03 and P6-03). As part of its deliberations, the Commission considered letters from the U.S. Maritime Administrator and the Under Secretary of State for Business, Economics and Agricultural Affairs that discuss commitments made in the recently-concluded bilateral Maritime Agreement between the U.S. and the People’s Republic of China. The Administrator and the Under Secretary urge the Commission to favorably consider the Petitions. The Administrator also indicates that he will encourage U.S. carriers and shippers to support them.

The Federal Maritime Commission is publishing an updated list of controlled carriers. Section 3(8) of the Shipping Act of 1984 (“Shipping Act”), 46 U.S.C. app. (B) that government has the right to appoint or disapprove the appointment of a majority of the directors, the chief operating officer, or the chief executive officer of the carrier. As required by the Shipping Act, controlled carriers are subject to special oversight by the Commission. Section 9(a) of the Shipping Act, 46 U.S.C. app. No controlled carrier subject to this section may maintain rates or charges in its tariffs or service contracts, or charge or assess rates, that are below a level that is just and reasonable…