New Era of Flexibility for Service Contract Filing Requirements

Shippers and carriers will soon have more flexibility in meeting service contract filing requirements as the result of a rule change approved by the Federal Maritime Commission going into effect this June.

The Final Rule amends existing regulations so ocean carriers will be able to file original service contracts with the Commission up to 30-days after they go into effect. Current FMC regulations require the filing of initial service contracts with the FMC before an ocean carrier is permitted to receive and move cargo under the terms of that contract.

The amended rule will take effect on June 2, 2021.

The Commission was prompted to consider permanently amending its regulations following the positive response of the industry to the temporary service contract filing relief provided over the past year to minimize COVID-19 related impacts to the supply chain. That relief expires on June 1, 2021. As a result of this experience, the Commission determined to update the filing requirements to better reflect contemporary business practices. Additionally, these changes will set conditions that allow ocean carriers to contemplate new ways to make their services available to shippers.

The Final Rule will be published in the Federal Register in the coming weeks. In the interim, the Commission is making available as a courtesy an unofficial copy of the rule.