The U.S. Federal Maritime Commission (FMC) published a final rule on February 20, 2020, that gives the agency increased authority over licensed ocean transportation intermediaries (OTIs), including ocean freight forwarders and non-vessel-operating common carriers (NVOs). The FMC’s five commissioners voted unanimously on January 15, 2020, to proceed with finalizing the rule, which implements requirements for the agency under the 2018 Frank LoBiondo Coast Guard Authorization Act.
The final rule clarifies that persons who present themselves to shippers as OTIs must be licensed with the FMC and meet certain financial responsibility requirements. The rule makes clear that OTI licensing and financial responsibility requirements do not apply to a person performing OTI services on behalf of an OTI for whom it is a disclosed agent. The LoBiondo Act authorized the FMC to expand the prohibition on common carriers knowingly and willfully accepting or transporting cargo for OTIs that do not have a tariff or do not meet financial responsibility requirements.
Under the rule, comments submitted to the FMC regarding filed ocean common carrier and marine terminal operator agreements will also now be confidential. In addition, it includes the LoBiondo Act’s authority for a provision on “nonpublic collaborative discussions” between FMC commissioners.
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