Lower Mississippi Exclusive Tug Franchise Ruling

The Federal Maritime Commission (FMC) issued an Order stating that the ALJ is recommending that the Commission approve settlement of allegations against Cargill, Incorporated that it violated the Shipping Act of 1984 by engaging in an exclusive tug franchise at its four grain facilities on the Lower Mississippi River. Under the agreement, no exclusive tug arrangements would be in place for docking and undocking assistance. In its place, there would be a two-tier system, with the upper tier applying to vessels of 13,501 GRT and larger and the lower tier applying to smaller vessels. For tug assistance services other than docking and undocking, rates would be capped at the rates charged by the tug company selected by Cargill as set forth in the company’s public tariff. Subject to Commission review, the ALJ has dismissed Cargill from this proceeding. Docket No. 01-06 (HK Law).