FMCs Commissioner Rebecca Dye Urges Consumers to Make Educated Choices

The Federal Maritime Commission (FMC) is an independent agency responsible for the regulation of ocean transportation in the foreign trade of the USA. FMC is the regulatory authority overseeing the international movers. Commissioner Rebecca Dye discusses the Federal Maritime Commission’s mission and how consumers can protect their move during the National Moving Month in front of MyMovingReviews.com. She supports all efforts made in fighting rogues.

Commissioner Rebecca Dye states that in accordance with one of the FMCs strategic goals “Protect the Public from Unlawful, Unfair, and Deceptive Practices and Resolve Shipping Disputes” the Agency has carried out a few policies to secure the ocean transportation and to alert consumer awareness. The FMC’s website has been redesigned and updated to better serve and inform consumers on the most common moving related issues. Furthermore, the Commission has reviewed its licensing regulations to enhance safety standards. Preventing fraud and raising the security bar has always been ones of the top priorities. Actually, during the year of 2012, the Commission completed 12 cases and collected $838,000 in penalties for violations.

Commissioner Rebecca Dye accentuates that in order to secure ocean transportation, consumers should contact a FMC licensed ocean transportation intermediary. The FMC posts a list of such entities on its website where one can search by a company’s name or by a location. As of March 30, 2013 there were 4,617 licensed OTIs in the United States (1,015 OFF, 1,746 NVOCC, & 1,856 OFF/NVOCC). Additionally there were 1,232 OTIs not in the United States and not licensed and 73 OTIs not in the United States and licensed.

U.S.-based companies or sole proprietors operating as OFFs or NVOCCs are required to obtain a license from the FMC. Non-U.S.-based NVOCCs are not required, but may obtain a FMC-issued license.

Commissioner Rebecca Dye gives a thorough explanation regarding the Agency’s licensing program and the respective consequences in case of failure to comply with the regulations.

An OTI license is required of any individual or entity that is located in or incorporated in the United States and performs OTI services in the waterborne, foreign commerce of the United States. To obtain either an OFF or NVOCC license, one must submit a completed Form FMC-18 to the Commission demonstrating that the applicant has the required experience and character to offer OTI services. The applicant must include the appropriate fee and documentation supporting the application and provide evidence of financial responsibility for licensing. Commission staff will review the application, contact references and conduct an investigation of the applicant. If staff determines the applicant has the required experience and character, an OTI license will be issued.

An Ocean Freight Forwarder (OFF) is an individual or company located in the U.S. which:

• arranges cargo movement to an international destination
• dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers
• prepares and processes the documentation and performs related activities pertaining to those shipments

Prior to Offering Services in the U.S. Trades, OFFs:

• are required to obtain a license from the FMC (46 CFR § 515.3)
• are required to submit proof of financial responsibility for payment of claims (46 CFR Part 515 Subpart C) arising from transportation-related activities

A Non-Vessel-Operating Common Carrier (NVOCC) is:

• a common carrier that holds itself out to the public to provide ocean transportation, issues its own house bill of lading or equivalent document, and does not operate the vessels by which ocean transportation is provided
• a shipper in its relationship with the vessel-operating common carrier involved in the movement of cargo

Prior to Offering Services in the U.S. Trades, NVOCCs:

• are required to obtain a license from the FMC (46 CFR § 515.3) (if a U.S.-based company)
• are required to submit proof of financial responsibility for payment of claims (46 CFR Part 515 Subpart C) (arising from its transportation-related activities
• are required to publish a tariff (46 CFR § 520.3)

An NVOCC is a common carrier that does not operate the vessels by which ocean transportation is provided, and is a shipper in relation to the involved ocean common carrier. NVOCC OTI services refer to the provision of transportation by water of cargo between the United States and a foreign country (whether import or export) for compensation without operating the vessels by which the transportation is provided. NVOCC OTI services may include purchasing transportation services from vessel-operating common carriers for resale; payment of port-to-port or multi-modal transportation charges; entering into affreightment agreements with underlying shippers; issuing bills of lading or equivalent documents; arranging and paying for inland transportation on through transportation movements; paying lawful compensation to ocean freight forwarders; leasing containers; and entering into arrangements with origin or destination agents.

Commissioner Rebecca Dye specifies the license revocation cases: “The Commission may revoke an OTI license for a number of reasons, including:

• 

  Failure to maintain valid proof of financial responsibility on file with the Commission;

• Violation of any provision of the Act, or any other statute or Commission order or regulation related to carrying on the business of an ocean transportation intermediary;
• Failure to respond to any lawful order or inquiry by the Commission;
• Making a materially false or misleading statement to the Commission in connection with an application for a license or an amendment to an existing license;
• Where the Commission determines that the licensee is not qualified to render intermediary services; or
• Failure to honor the licensee’s financial obligations to the Commission.”

She has pointed out that the most common reason for a license revocation is failure to maintain valid proof of financial responsibility on file with the Commission. All revocations, including the reason, are published in the Federal Register.

In her briefing, Ms Rebecca Dye encourages consumers to protect their goods by thoroughly researching the company that they intend to use. Any international moving company that transports household goods between the US and foreign countries via ocean transportation must be FMC licensed and bonded. In addition, consumers should research the company to confirm that the company is not the subject of consumer complaints with the Better Business Bureau or noted on other blogs.

She is firm that early contact with CADRS can help avoid and resolve problems that arise. Consumers can consult CADRS before hiring a moving company to obtain information about the international shipping process and to confirm that a particular company is FMC licensed and bonded.

Consumers that encounter a problem during an international move should contact CADRS as soon as possible. CADRS staff provides free ombuds and mediation services to assist consumers and moving companies in resolving international shipping challenges that arise. Early intervention can help consumers avoid problems such as delivery delays and storage fees while the consumer and the international moving company work with CADRS to resolve the dispute.