As I embark upon my 40th year in this illustrious industry, I reflect on the number of changes that it has experienced in these four decades: the move from bulk to containerized cargo, the shift to intermodal from port-to-port cargo movements, the comings and goings of numerous steamship lines, the expansion of new trade lanes in Latin & South America, Southeast Asia & the Asian Sub-Continent and most recently the introduction of the mega-ships in global shipping. All of these transitions not to mention all of the technology that surpasses the imagination and makes the volumes, tonnages and global markets possible for supply chains to expand and accommodate since the late '70s.
Those are certainly big changes. But, you know the saying: "The more things change, the more they stay the same." So, what has not changed? Relationships have not changed. At the core of this busines are the relationships we develop with our work colleagues and vendors. All things being the same, we choose to work with the people that understand our needs and best accommodate them when the going gets tough or when we're in a jam. And, it's a two-way street -- a win-win situation -- profitability for both sides; otherwise, there are no vendors with which to work.
What else has not changed? If I say our regulations, I might hear a gasp or two. But I invite you to consider the FMC’s recent settlement agreements and the collection of fines and penalties in the amount of nearly One Million U.S. Dollars. Eight of the nine companies named were NVOCCs and their agents accounting for more than $800,000.00 of the amount collected . . . a whopping amount of money for so few companies. For what were these NVOs fined? Something very basic . . . read below.
While you still may not agree or even comprehend why NVOs are required to file tariff rates, hopefully, you understand a bit more about the concept of tariffs. You may also have picked-up on the fact that an NVO (or any carrier, for that matter) cannot legally charge freight and other surcharges without them first having been filed in a freight tariff, NSA or NRA (exclusive to NVOs). But what is the timing for these filings? Many folks believe that the filing of tariff rates is connected solely with the date of the vessel sailing. That may have been true when the only shipping option was port-to-port. The Shipping Act of 1984 transformed international shipping, and with it, access to a variety of intermodal transport options. These new-found shipping methods impacted not only the transportation systems themselves but expanded the opportunity for NVOs to offer combined transport services. Port-to-port was no longer the only way to go. So, if it's no longer only Port-to-Port, how does intermodal transport impact the date by which rates must be filed in order to comply with FMC regulations. Let's take a look and see!
To me, the answer is simple: An Non-Vessel-Operating Common Carrier (NVOCC/NVO) is a common carrier. A common carrier is like a public utility which files its electricity or natural gas rates with the local or state utility board. Similarly, an NVO is required to make its rates available to the general public in the form of a tariff, filed electronically, so that all “like” shippers of the same commodity moving between the same port or point pair are charged the same rate. Discrimination based on the commodity or the shipper or the transportation alone is not allowed.