FMC Chairman Cordero Voices Commitment to Increase Exports and Reduce Regulatory Burdens

On April 16, Commissioner Mario Cordero, who replaced Commissioner Richard A. Lidinsky as Chairman of the U.S. Federal Maritime Commission (FMC) earlier in April, testified to Congress regarding the Fiscal Year 2014 FMC budget. In his presentation, Chairman Cordero outlined two primary ways the Commission could promote our nation's economic recovery:

(1) working to ensure the competitiveness of our Nation’s ports and  maritime transportation system to make sure that it efficiently  supports growing exports; and

 (2) providing maritime businesses regulatory relief so they and their  customers can hire more American workers.

Because more than 80% of international trade relies on ports, Chairman Cordero stated that the efficiency of our transportation system--including the OTI (Ocean Transportation Intermediary), ocean common carriers, and marine terminal operators--is key to relieving congestion at ports, decreasing delays, and lowering transportation costs.

Chairman Cordero also reiterated a commitment to continue assisting U.S. exporters in 2013. Agricultural exporters can look forward to a container shipping rate index for a few targeted export commodities such as grains, cotton, hay, and frozen meat. It is anticipated that with such an index exporters could plan and hedge their transportation costs.

Other new developments include a searchable database of NVOCC (Non Vessel Owned Common Carriers) on the FMC website. Small businesses that want to start exporting, as well as individuals shipping personal goods, can use the search tool to find nearby licensed and bonded freight forwarders.

Chairman Cordero and the FMC have committed to continued efforts to reduce regulatory burdens, thereby initiating cost savings and flexibility for the shipping industry and its customers. Progress was made in 2012. Chairman Cordero cited the following:

• changes to procedural rules to improve just, speedy, and inexpensive resolutions in administrative proceedings.
• revisions in tariff exemptions which eliminate record keeping requirements for negotiated rate arrangements offered by U.S.-based NVOCCs.
• initiation of dialogue on a proposed rule that would expand these tariff exemptions to foreign-based unlicensed NVOCCs.
• reviews of regulations concerning the licensing and oversight of OTI (Ocean Transportation Intermediaries), the process for review of filed agreements, and rules regarding service contract filings.

Chairman Cordero stated that the Commission will continue to solicit input from the shipping public and the regulated industry about how to streamline and improve its rules.

Asses Risk to Determine The Insurance Needs

Cargo Insurance

Geo-political hotspots and natural disasters have combined to sharpen the focus on risk management for both carriers and shippers. Efforts to ameliorate the effects of such potential causes of loss will undoubtedly grow more intense in 2013. Cargo insurance will be as vital a tool as ever in risk management.

Successful attempts to mitigate loss anywhere in the supply chain will add to the bottom line in important ways. Potential commercial losses can be quantified as a first step toward developing strategies to limit such losses.

Potential Scenarios

Supply chain strategists try to ponder every possible scenario that may arise. Success in this area may literally determine victory or loss. Likewise, the advantages of mapping out alternative supply chain scenarios can be substantial. Complex analysis can be required to try to anticipate the unpredictable.

Only a few years ago, most would have scoffed at the nightmarish losses generated by a Japanese tsunami or by pirates off the Somali coast. Then, these heretofore unimaginable threats turned all too real.

It may be very demanding to assess risks presented by threats as diverse as terrorism and computer systems failure. The potential impact of accidents and quality control issues must be fully understood as well. The potential for changing export restrictions is another area to concentrate on. The analytical expertise required crosses many disciplines.

Probability Assessment

This invariably leads to another key effort -- probability analysis. Extreme risks can be identified, but there are never enough resources to address every possibility all the time. That is where statistical probability needs to be considered to mitigate risk.

A successful enterprise will tackle these challenges by successfully managing risk across widely divergent areas. It is possible to quickly respond to supply chain disruptions when the unexpected occurs. Those whom adapt are also effective at stabilizing their bottom line.

For further insight into how successful risk management can help your enterprise, please contact us.

 

Scrap Metal Scams, a Hazard for International Freight Forwarders

 

As prices for all metals continue to climb, there has been an increase in occurances of illicit scrap metal trading. International Freight Forwarding companies are often unwitting accomplices to these schemes. Recently, the British International Trade Association (BIFA) issued a warning to its members and to the international trading community about this issue. The UK Parliament had recently introduced a Scrap Metal Dealers Bill. This bill would make it illegal to pay for scrap metals with cash. The concept was that many scrap metal dealers use cash for their illicit transactions.

 

This concern was addressed by Peter Quantrill, BIFA Director General in an interview with Handy Shipping Guide. His advice was to urge freight forwarders to alert the proper authorities to any suspicions that they have about scrap metal shipments. The UK parliment felt that they had addressed the problem of scrap metal theft by making it illegal to pay for scrap metals with cash. The inadvertent result of such legislation is that the problem has been transferred to freight forwarders as criminals seek to export their stolen scrap metals.

 

BIFA is asking that its members report any suspicious looking shipping containers. Organized criminals use shipping containers to transport stolen scrap metals to various locations. Freight forwarders who handle these containers are in a position to recognize and report such suspicious activities.

 

Some indicators to look for are containers found in unusual locations such as brown fields, industrial units, farms and residential addresses. These unorthodox locations might indicate illegal shipments.

 

Although this warning was issued in the UK, shipping is a global activity and criminal enterprises often cross international boundaries. Freight forwarders across the globe can help to monitor and report instances of criminal activity. Knowing what to look for can help freight forwarders avoid becoming accomplices to criminals seeking to ship stolen scrap metals.

Protect Your Assets

As you know, a Freight Broker serves a vital role in the intricate machine that is freight movement. By connecting shippers and carriers who may not otherwise be able to find each other, you keep the industry humming.

Being a freght broker means investing large amounts of time learning the shipping industry inside and out. Then comes license costs, insurance, and surety bonds. This type of investment is too valuable to leave to any insurance. You must make wise choices. Not only are you expected to protect yourself, but you must look out for your shippers and customers as well.

Broker Shield Freight Insurance offers you a level of coverage that will protect you against unforseen cases that your Carrier's insurance company may not cover.

Broker Shield Insurance coverage provides you with all the protction you'll need. From contingent cargo, all-risk cargo, to third party auto liability and the standard Property & Casualty lines insurance we protect every facet of your business.

Our "value added" services set us apart from other insurance companies by including claims management and recovery services. We focus on making truckers responsible for any damage or theft, leaving your company to concentrate on moving freight. We conduct a contractual review of trading terms & conditions for both Shipper clients & Carrier agreements. We provide an evaluation of claims data and feedback, helping support your logistics chain. We have a training program that helps you understand the full scope of your exposures. We will also give you marketing materials that will help you to stand out amongst your competitors.

Don't risk your company's future with inadequate insurance, Contact us so we can help keep you moving.