US importers want rate deals kept under wraps

US commodity importers on the Pacific route have asked the Federal Maritime Commission to help ensure that rate agreements with carriers are kept confidential by Chinese authorities.

Regulations introduced by the Shanghai Shipping Exchange, set up in June 2009, order carriers to tell the exchange about their tariff rates and some negotiated rates for container cargo imported from China.

The request to the FMC follows on from similar worries voiced by the National Industrial Transportation League, which represents major consumer chain stores such as Wal-Mart. The shippers are worried that the authorities will leak the details to Chinese carriers and give them a huge, unfair advantage in setting rates.

Extremely detailed regulations govern ocean transport with the US, with China Shipping being fined US$400,000 this month for transgressions against the Shipping Act, some going back four years. According to the FMC, the line "provided transportation for intermediaries without tariffs, licences or bonds, mis-described cargo, and charged shippers below-tariff rates".

Three domestic logistics and ocean transport companies were also fined. ATI USA, a non-vessel-operating common carrier in New Jersey is paying $115,000 for undercharging, obtaining ocean transportation at less than applicable rates and mis-declaring the size of motor vehicles being shipped; MT Global Freight Solutions, a non-vessel operator, paid $35,000 for improper access to ocean service contracts and charging below tariff rates; and Cosa Freight of California paid $35,000 for the same infringements.

Another Chinese shipping company has been fined $100,000 for an even more minor offence-throwing oil-contaminated sawdust overboard and not keeping a record. According to the owners, China Navigation, the fine was because of the ship's "failure to keep accurate garbage-disposal records after a relatively small amount of slightly oiled sawdust was dumped overboard. The sawdust was used to clean up a spill of bilge water on the ship's deck as it was crossing the Pacific.''

Source: Cargo News Asia