T25u—FMC Regulatory Compliance for U.S. Ocean Forwarders and NVOs Serving U.S. Ports

Non-subscriber price: $220.00, Subscriber price: $170.00
Estimated total study time: 13 hours 43 minutes

This course addresses the various regulatory requirements imposed by the U.S. Federal Maritime Commission on ocean freight forwarders, NVOCCs and agents of foreign NVOs arranging or providing transportation via U.S. ports. It is designed for managers, supervisors, sales, and full charge operations staff responsible for providing and marketing these services.

Important: This course has been updated to include detailed coverage of NVOCC Negotiated Rate Arrangements ("NRA") which became available for use on April 18, 2011.

FMC Regulatory Mission and Primary Methods

The U.S. Federal Maritime Commission exists to protect shippers and consignees, particularly small ones, from unfair practices by ocean common carriers, and to protect U.S. flag common carriers and U.S.-based NVOs from discriminatory practices by foreign carriers or nations. In this lesson we will address how the FMC performs these regulatory mandates given to it by the U.S. Congress.

(Estimated study time: 40 minutes)

Introduction
The Federal Maritime Commission Mission
Preservation of Common Carriage
- General
- FMC Regulation of Common Carriage vs. Contract Carriage
FMC Carrier Oversight Methods/Requirements
- Publication of Ocean Carrier Tariffs
- Additional NVOCC Requirements
- Filing of Carrier-to-Carrier and Carrier-to-Terminal Agreements

FMC Requirements for Ocean Carrier Tariff Publication; Exceptions to Tariff Applicability

This lesson addresses the mechanisms by which scheduled ocean carriers establish their shipping rates, other charges and conditions of service, including tariff publication and alternatives to tariff publication.

(Estimated study time: 59 minutes)

Introduction
FMC Tariff Publication
- Notice and Authority to Publish Tariffs
- Tariff Regulations; Format & Procedure
- Tariff Applicability to FMC Regulated Ocean Shipments
- Alternatives and Exemptions to FMC Tariff Requirements
- Shipper Requests/Complaints/Rate Negotiations
- Freight Rate Requests & Change Process

Tariff Enforcement & Dispute Resolution; Shipper-VOCC Service Contracts

This lesson addresses ocean carrier tariff enforcement by the FMC, and then shipper-VOCC Service Contracts in lieu of tariff rules and rates for ocean transportation.

(Estimated study time: 1 hour 8 minutes)

Introduction
FMC Enforcement of Tariffs, Agreements and Shipping Law
- FMC Enforcement—General
- Anti-Rebate Enforcement
- FMC Complaint, Claim and Dispute Resolution Procedures
  - Formal Complaints
  - Informal Procedures/Formal Small Claims Procedures
  - Alternative Dispute Resolution (Mediation)
U.S. Ocean Carrier Service Contracts
- General
- Benefiting From Service Contracts
- Parties to Service Contracts
- Service Contract Filing with FMC
- Publication of Essential Terms

Regulation of Ocean Transportation Intermediaries (OTIs)

This lesson covers the FMC regulations with respect to:

definition of an "ocean freight forwarder"
services performed by forwarders
when an FMC OTI license is required
OTI licensing requirements, and,
FMC procedures for shipper complaints against forwarders.

(Estimated study time: 1 hour 11 minutes)

Introduction
"Ocean Freight Forwarder" Defined
"Freight Forwarding Services" Defined (46 CFR 515.2(i))
- Basic Regulatory Scope/Criteria
- Regulatory Vagueness as to What Services Constitute Freight Forwarding
FMC Regulation of Ocean Freight Forwarders
FMC OTI License, "When Required" (46 CFR 515.3)
"License, When Not Required" (46 CFR 515.4)
Summary
General—The "Qualifying Individual"
OTI License Application
Ocean Forwarder Surety Bond
FMC Complaints & Investigations

Shipper-Forwarder Relationship

In this lesson we address the relationship between shipper and forwarder as being that of agent to principal, a forwarder's responsibilities a agent, and operational concerns when working with foreign forwarders in obtaining routed shipments.

(Estimated study time: 1 hour 3 minutes)

Introduction
Forwarder Represents Shipper as an Agent
Responsibility as Agent
- General
- Conflicts of Interest
- Confidentiality of Information
- FMC Regulatory Prohibitions
Confidentiality of Information Received from Principals
Shipments Quoted/Handled on Behalf of Foreign Agents
- Quotations Requested by Agents—General
- Potential FMC Compliance Concerns
- Competitive and Operational Concerns
- Solution
  - Forwarding Fees
  - Ocean Freight Charges

Forwarder-Carrier Relationship; Selecting NVOs and Forwarder Acting as NVO

This lesson focuses on the relationship between an ocean forwarder and the ocean carrier, particularly an NVO. We pay special attention to the frequent case in which a forwarder concurrently acts as an NVO for its's shipper's cargo.

(Estimated study time: 1 hour 16 minutes)

Introduction
General—Selecting an Ocean Carrier
Relationship with Non-Related NVOCCs (Arms Length)
- NVOCC Forwarder Compensation
- NVOCC Rate Negotiation
Prudence in Selecting and Dealing with Independent NVOCCs
- Diligence Checklist
- Obtain Written Information from NVOs Concerning Co-loading
- Destination Charges
- Avoid Negligence Claims over NVO Routings
Forwarder Concurrently Acting as NVOCC
- General
- Competing Interests
- Addressing Competing Interests
- Focus on Benefits to Shipper of Joint Forwarder-NVO Service
- Rate/Service Guidelines
- Confirm Services To be Performed and Rates Prior to Routing Cargo
- A Principal's Access to Underlying Costs

Key Points Every Ocean Forwarder Employee Should Know about FMC Regulations

This lesson serves as a summary of issues already learned, plus a number of additional compliance issues, with links to more information for those learners who which to expand their understanding.

(Estimated study time: 52 minutes)

Introduction
Key Points Every Ocean Forwarder Employee Should Know about FMC Regulations

NVO Regulation & Tariff Filing

This lesson addresses the requirement for all NVOs providing service via U.S. ports to become an OTI with the FMC and publish a tariff. Also, tariff strategy.

(Estimated study time: 1 hour 18 minutes)

Introduction
NVOCC as Ocean Transportation Intermediary (OTI)
- Licensing
- Surety Bond
General—FMC Regulation and Jurisdiction over NVOs
NVOCCs Are Regulated as Common Carriers
- Public Tariff an Essential Characteristic of Common Carriage
- NVOs Operate De Facto as Contract Carriers
NVOCC Tariff Publication and Maintenance
- NVO Tariff Publication Requirements
- Treatment of Destination Charges
- Tariff Rate Strategy

NVOCC Service Arrangements ("NSAs")

This lesson addresses confidential "NSAs" between an NVOCC and a shipper.

(Estimated study time: 1 hour 13 minutes)

Introduction
NVOCC Service Arrangements (NSAs)
- Deciding upon Use of an NSA vs. Tariff Rates & Rules
- General Requirements for an NSA
- Required NSA Information
- Additional NSA Requirements
- Publication of Essential Terms
- NSA Document Format & Uploading
- NSAs Used in Conjunction with VOCC Service Contracts

NVO Negotiated Rate Arrangements (NRAs)

This lesson addressed this important new (April, 2011) ability of NVO's to enter into negotiated rate arrangements with shippers in a much simpler way than an NVOCC service arrangement ("NSA"), thereby avoiding the requirement to publish freight rates in their tariffs, and maintaining rates conficential.

(Estimated study time: 1 hour 11 minutes)

Introduction
NVOCC Negotiated Rate Arrangement (NNRA or NRA)
- What is an NRA?
- Shipper Benefits of Using NRAs
- NVO Benefits of Using NRAs
- Pre-Requirements for NVO Use of NRAs
- NRA Negotiation
- NRA Operational Requirements & Limitations
- NRAs Used in Co-Loading
- NRA Record Keeping Requirements
  - General Requirements
  - Inspection by FMC
- Precedence of NRA vs. Tariff Rate; Dispute Resolution

NVOCC Bills of Lading

This lesson addresses NVO B/L issuance and carrier liability.

(Estimated study time: 49 minutes)

Introduction
NVOCC Bills of Lading
- B/L Document Format
- General Terms and Conditions
- NVO Carrier Liability Terms; Uncertainty for Through Land Transportation
- Preparation and Issuance of NVO/MTO Bills of Lading
- U.S. FMC Requirements Affecting NVO Bills of Lading
  - NVO Bills of Lading Subject to NVO's Tariff, NSA, or Rules Tariff+NRA
  - Qualifying Language (Annotation) on NVO B/L
    - When Co-Loading
    - When B/L Subject to an NSA
    - When B/L Subject to an NRA

NVOCC Co-Loading

This lesson addresses the benefits and risks of NVO co-loading, including U.S. regulatory concerns.

(Estimated study time: 1 hour 18 minutes)

Introduction
U.S. NVO Co-Loading Basics
- As Indirect Carriers, NVOs Sub-Contract All or Most Transportation
- Co-Loading Benefits
- FMC Rules on NVOCC Co-Loading
Carrier-to-Carrier Co-Loading
Co-loading Risks to Shipper/Consignee
- Physical Handling Risks
- Non-Tariffed, Unknown and Excessive Destination Costs
- Co-Loaded Shipment Tracking & Communicating with Breakbulk Agent
Co-loading Risks to Freight Forwarder
- Delivery Dependability
- Increased Risk of LCL Cargo Loss, Damage and Delay
- Excessive Destination Charges
- FMC Regulatory Concerns over Destination Charges

NVO Regulatory Compliance Summary & Checklist

In this final lesson, key FMC compliance and operational issues are reviewed in checklist format.

(Estimated study time: 44 minutes)

Introduction
U.S. NVO Operations and Compliance Summary—Key "Do's" and "Don'ts"
- General
- U.S. NVO Regulatory Compliance Checklist