AgTC: Meeting with FMC, Congressional Hearing

AgTC: Meeting with FMC, Congressional Hearing

Yesterday Agriculture Transportation Coalition (AgTC) members met with the Federal Maritime Commission, including President Obama's newly confirmed Chairman Lidinsky and Commissioners Brennan and Dye, together with most of the senior staff and directors of the commission. It was highly productive, according to the AgTC, which reports that “after many decades of a very tight relationship with the ocean carriers and conferences, [the Federal Maritime Commission] recognizes the landscape has changed, that the carriers are no longer U.S. companies, that exporters are U.S. companies and employers, and that the Commission must pursue avenues to support U.S. exporters' interests.”

At today's Congressional Hearing, Members of Congress repeatedly asked about carrier "collusion," the carrier "cartels," and whether they were collectively manipulating capacity. They expressed surprise that the rates exporters pay are typically much higher than the amount negotiated at the time the contract is signed.

The Federal Maritime Commission announced an urgent Capacity Fact Finding Investigation with a self-imposed deadline of June 15 as to the causes and possible solutions to the capacity crisis (the week after the AgTC Annual Conference). This will be headed by Commissioner Rebecca Dye, who is extremely knowledgeable in ocean shipping policy and impact on importers and exporters. The Chairman of the Congressional Committee said that he is going to do a follow up hearing on July 2 because he wants to push for solutions.

For details on this FMC Capacity Fact Finding Investigation, go to the "Ocean Capacity Crisis" tab on www.AgTrans.org.

The Agriculture Transportation Coalition (AgTC) issued two bulletins to members today on these developments: Movement on Ocean Shipping Capacity in DC and More New and Positive Developments from DC.

AgTC: Meeting with FMC, Congressional Hearing

Yesterday Agriculture Transportation Coalition (AgTC) members met with the Federal Maritime Commission, including President Obama's newly confirmed Chairman Lidinsky and Commissioners Brennan and Dye, together with most of the senior staff and directors of the commission. It was highly productive, according to the AgTC, which reports that “after many decades of a very tight relationship with the ocean carriers and conferences, [the Federal Maritime Commission] recognizes the landscape has changed, that the carriers are no longer U.S. companies, that exporters are U.S. companies and employers, and that the Commission must pursue avenues to support U.S. exporters' interests.”

At today's Congressional Hearing, Members of Congress repeatedly asked about carrier "collusion," the carrier "cartels," and whether they were collectively manipulating capacity. They expressed surprise that the rates exporters pay are typically much higher than the amount negotiated at the time the contract is signed.

The Federal Maritime Commission announced an urgent Capacity Fact Finding Investigation with a self-imposed deadline of June 15 as to the causes and possible solutions to the capacity crisis (the week after the AgTC Annual Conference). This will be headed by Commissioner Rebecca Dye, who is extremely knowledgeable in ocean shipping policy and impact on importers and exporters. The Chairman of the Congressional Committee said that he is going to do a follow up hearing on July 2 because he wants to push for solutions.

For details on this FMC Capacity Fact Finding Investigation, go to the "Ocean Capacity Crisis" tab on www.AgTrans.org.

The Agriculture Transportation Coalition (AgTC) issued two bulletins to members today on these developments: Movement on Ocean Shipping Capacity in DC and More New and Positive Developments from DC.