Ocean Shipping Reform Act of 1998
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The Ocean Shipping Reform Act of 1998 was passed by congress, changing regulations for companies in the marine shipping and transportation industry.
The Ocean Shipping Reform Act of 1998 is a piece of legislation passed by congress that imposed new and updated regulations regarding the maritime shipping industry and those employed in it. The changes proposed by the Ocean Shipping Reform Act (OSRA) affected licensing, bonding and tariffs and were officially implemented by the U.S. Federal Maritime Commission (FMC) beginning on March 1, 1999.
The new regulations apply to all Ocean Transportation Intermediaries, which include Ocean Freight Forwarders (OFF) and Non Vessel Operating Common Carriers (NVOCC). By definition, an OFF arranges, books and dispatches shipments for transport via the water; they also prepare and process documentation for those shipments. An NVOCC is a common carrier that provides ocean transportation for freight and cargo. Though an NVOCC does not actually own or operate the ships or vessels involved in the transportation, it simply takes responsibility for the shipment itself.
Licensing
Under the Ocean Shipping Reform Act, any company that plans to operate in the foreign trade industry as an OFF or NVOCC, either transporting or arranging transport via U.S. waters, must first be licensed by the Federal Maritime Commission. In order to receive a license, the company must file a license application for each branch it will operate.
Additionally, the sole proprietor, partner or corporate officer must have at least three years of experience and character reputation in the industry. Once a license has been granted, it must be displayed on all shipping documents, company letterhead and other paperwork. An individual can only serve as the licensee for one organization.
NVOCCs that are not U.S.-based are not required to obtain a license, though they may choose to do so through the FMC.
Bonding
Under the Ocean Shipping Reform Act, all Ocean Transportation Intermediaries must furnish a bond before they may commence work. This bond asserts financial responsibility in the event a claim is filed.
The bond requirements break down as follows:
• Ocean Freight Forwarders -- $50,000;
• Non Vessel Operating Common Carriers -- $75,000;
• Foreign or unlicensed Ocean Transportation Intermediaries -- $150,000, unless is a bonded and licensed U.S. office; and
• Unincorporated branch offices -- $10,000.
Additionally, the bond must be filed under the same company name as the license.
Tariff Information
All NVOCCs that are bonded, licensed and participate in foreign commerce by sea must report and file their tariff information, rates, classifications, practices and charges publicly. Under the OSRA, these companies must now publish tariff information through the FMC’s automatic system, allowing unlimited public access, searching capabilities, and up to two years of online tariff history.
The companies are also permitted to use web hosting and maintenance provided by the Dart Maritime Service in order to publish this information. DMS will bill the company quarterly for any incurred fees, which are subject to change without notice.
Getting Legal Help
Maritime law and procedure can often be confusing, especially for those who are new to the industry. Anyone who has questions about maritime shipping law or needs additional guidance is encouraged to consult with a Louisiana maritime lawyer as soon as possible. Maritime workers and seamen in Louisiana should call a Louisiana maritime lawyer about the Ocean Shipping Reform Act.
ABOUT THE AUTHOR: Timothy Young
Maritime and admiralty lawyer Timothy J. Young graduated cum laude from Tulane Law School in 1993. Licensed to practice in both Louisiana and Texas, he is an active member of the American Association for Justice and the Louisiana Association for Justice, including the admiralty sections of both associations. Mr. Young has given talks to lawyers in other states regarding the practice of maritime law.
At The Young Firm, our maritime and admiralty attorneys are dedicated to providing superior legal counsel to clients injured as a result of another party's reckless, careless, or negligent conduct. We meticulously prepare each case and are committed to protecting the rights of the catastrophically injured. For more than 50 years, our attorneys have been focusing on the practice of maritime/admiralty law.
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More information about The Young Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The new regulations apply to all Ocean Transportation Intermediaries, which include Ocean Freight Forwarders (OFF) and Non Vessel Operating Common Carriers (NVOCC). By definition, an OFF arranges, books and dispatches shipments for transport via the water; they also prepare and process documentation for those shipments. An NVOCC is a common carrier that provides ocean transportation for freight and cargo. Though an NVOCC does not actually own or operate the ships or vessels involved in the transportation, it simply takes responsibility for the shipment itself.
Licensing
Under the Ocean Shipping Reform Act, any company that plans to operate in the foreign trade industry as an OFF or NVOCC, either transporting or arranging transport via U.S. waters, must first be licensed by the Federal Maritime Commission. In order to receive a license, the company must file a license application for each branch it will operate.
Additionally, the sole proprietor, partner or corporate officer must have at least three years of experience and character reputation in the industry. Once a license has been granted, it must be displayed on all shipping documents, company letterhead and other paperwork. An individual can only serve as the licensee for one organization.
NVOCCs that are not U.S.-based are not required to obtain a license, though they may choose to do so through the FMC.
Bonding
Under the Ocean Shipping Reform Act, all Ocean Transportation Intermediaries must furnish a bond before they may commence work. This bond asserts financial responsibility in the event a claim is filed.
The bond requirements break down as follows:
• Ocean Freight Forwarders -- $50,000;
• Non Vessel Operating Common Carriers -- $75,000;
• Foreign or unlicensed Ocean Transportation Intermediaries -- $150,000, unless is a bonded and licensed U.S. office; and
• Unincorporated branch offices -- $10,000.
Additionally, the bond must be filed under the same company name as the license.
Tariff Information
All NVOCCs that are bonded, licensed and participate in foreign commerce by sea must report and file their tariff information, rates, classifications, practices and charges publicly. Under the OSRA, these companies must now publish tariff information through the FMC’s automatic system, allowing unlimited public access, searching capabilities, and up to two years of online tariff history.
The companies are also permitted to use web hosting and maintenance provided by the Dart Maritime Service in order to publish this information. DMS will bill the company quarterly for any incurred fees, which are subject to change without notice.
Getting Legal Help
Maritime law and procedure can often be confusing, especially for those who are new to the industry. Anyone who has questions about maritime shipping law or needs additional guidance is encouraged to consult with a Louisiana maritime lawyer as soon as possible. Maritime workers and seamen in Louisiana should call a Louisiana maritime lawyer about the Ocean Shipping Reform Act.
ABOUT THE AUTHOR: Timothy Young
Maritime and admiralty lawyer Timothy J. Young graduated cum laude from Tulane Law School in 1993. Licensed to practice in both Louisiana and Texas, he is an active member of the American Association for Justice and the Louisiana Association for Justice, including the admiralty sections of both associations. Mr. Young has given talks to lawyers in other states regarding the practice of maritime law.
At The Young Firm, our maritime and admiralty attorneys are dedicated to providing superior legal counsel to clients injured as a result of another party's reckless, careless, or negligent conduct. We meticulously prepare each case and are committed to protecting the rights of the catastrophically injured. For more than 50 years, our attorneys have been focusing on the practice of maritime/admiralty law.
Copyright The Young Firm - Google+
More information about The Young Firm
View all articles published by The Young Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
