[Federal Register Volume 75, Number 55 (Tuesday, March 23, 2010)]
[Notices]
[Pages 13761-13762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-6339]
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FEDERAL MARITIME COMMISSION
Fact Finding Investigation No. 26; Vessel Capacity and Equipment
Availability in the United States Export and Import Liner Trades; Order
of Investigation
March 17, 2010.
Pursuant to the Shipping Act of 1984, 46 U.S.C. 40101 et seq.
(``Shipping Act''), the Federal Maritime Commission (``FMC'' or
``Commission'') is charged with regulating the common carriage of goods
by water in the foreign commerce of the United States (``liner
service''). In doing so, the Commission must be mindful of the
statutory purpose of its regulation. Those purposes include a non-
discriminatory regulatory process, an efficient and economic
transportation system, and promotion of the growth and development of
U.S. exports. 46 U.S.C. 40101.
Like many sectors of the global economy, in 2009 shippers and ocean
carriers experienced one of the worst years in the more than fifty-year
history of international containerized shipping.
[[Page 13762]]
During this economic downturn, U.S. liner exports fell by 14 percent
and imports fell by 16 percent. Freight rates dropped precipitously,
and carriers laid up more than 500 vessels worldwide, or roughly 10
percent of the global fleet capacity.
Reflecting the worldwide uptick in economic activity during the
fourth quarter of 2009 and early 2010, cargo volumes shipped to the
United States from Asia have increased, as has the demand for export
shipments from the United States. As a result, shipping rates have
increased. Many ships remain idle, however, and the Commission has
received a growing number of reports that importers and exporters have
had difficulty obtaining vessel space, particularly in the U.S.-Asia
trades. The Commission has also received reports of U.S. exporters
experiencing problems with the distribution and availability of
shipping containers for their goods on those same Asian trades.
On January 27, 2010, the President launched a National Export
Initiative with the goal of doubling U.S. exports over the next five
years. On March 11, 2010, the President issued Executive Order No.
13534 and has directed the use of ``every available federal resource''
in support of that effort.
Recent reports of container vessel capacity and equipment
constraints have raised concerns over both the cause of the constraints
and whether those constraints could hinder the nascent economic
recovery. Therefore, consistent with its statutory duty, pursuant to 46
CFR 502.281 et seq., the Commission hereby orders a non-adjudicatory
investigation into current conditions and practices in the U.S. liner
trades, and into potential impediments to the flow of ocean-borne
import and export trades. The Commission will use the information
obtained in this investigation and recommendations of the Fact-Finding
Officer (FFO) to determine its policies with respect to vessel and
equipment capacity-related issues.
Specifically, the Fact-Finding Officer (FFO) named herein is to
develop a record on the following:
1. Recent conditions in the U.S. export liner trades;
2. Recent conditions in the U.S. import liner trades;
3. Current and forecasted common practices by vessel-operating
common carriers (VOCCs) regarding the management and allocation of
VOCC-, shipper-, and leasing company-owned equipment for the U.S.
import and export trades, specifically the management, supply,
allocation and availability of containers for all U.S. export
commodities and categories.
4. Current practices and plans of VOCCs regarding the deployment of
vessel capacity in the U.S. trades;
5. Current and planned common practices relating to service
contracting in the U.S. liner trades, specifically:
a. The practices of VOCCs with respect to the booking of cargo
before and after a minimum quantity commitment of a service contract
has been met but before the term of that contract has expired;
b. The practices of VOCCs with respect to the cancellation of cargo
bookings;
c. The practices of carriers and shippers with respect to the
overbooking of cargo; and
d. The impact of those practices on the availability of liner
service to meet the demands of U.S. exporters and importers; and
6. Any related conditions or practices that affect the U.S. liner
trades.
The FFO is to report to the Commission within the time specified
herein, with recommendations for any further Commission action,
including any policies, rulemaking proceedings, or other actions
warranted by the factual record developed in this proceeding.
Interested persons are invited and encouraged to contact the FFO
named herein, at (202) 523-5715 (telephone), (202) 275-0521
(facsimile), or by e-mail at [email protected], should they wish to
provide testimony or evidence, or to contribute in any other manner to
the development of a complete factual record in this proceeding.
Therefore, it is ordered, That, pursuant to 46 U.S.C. 41302, 40302,
40502 to 40503, 41101 to 41109, 41301 to 41309, and 40104, and 46 CFR
502.281 to 502.291, a non-adjudicatory investigation is hereby
instituted into the current conditions in the U.S. ocean-borne common
carrier trades, to gather facts related to the issues set forth above
and to provide a basis for any subsequent action by the Commission;
It is further ordered, That, pursuant to 46 CFR 502.284 and 502.25,
Commissioner Rebecca F. Dye is designated as the FFO. The FFO shall
have, pursuant to 46 CFR 502.281 to 502.291, full authority to hold
public or non-public sessions, to resort to all compulsory process
authorized by law (including the issuance of subpoenas ad testifacandum
and duces tecum), to administer oaths, to require reports, and to
perform such other duties as may be necessary in accordance with the
laws of the United States and the regulations of the Commission. The
FFO shall be assisted by staff members as may be assigned by the
Commission's Managing Director, and the FFO is authorized to delegate
any authority enumerated herein to any assigned staff member as the FFO
determines to be necessary.
It is further ordered, That the Investigative Officer shall issue
an interim report of findings and recommendations no later than June
15, 2010, a final report of findings and recommendations no later than
July 31, 2010, and provide further interim reports if it appears that
more immediate Commission action is necessary, such reports to remain
confidential unless and until the Commission provides otherwise;
It is further ordered, That this proceeding shall be discontinued
upon acceptance of the final report of findings and recommendations by
the Commission, unless otherwise ordered by the Commission; and
It is futher ordered, That notice of this Order be published in the
Federal Register.
By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. 2010-6339 Filed 3-22-10; 8:45 am]
BILLING CODE P