[Federal Register Volume 61, Number 225 (Wednesday, November 20, 1996)]
[Proposed Rules]
[Pages 59075-59076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29554]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
49 CFR Part 1319
[STB Ex Parte No. 598]
Exemption of Freight Forwarders in the Noncontiguous Domestic
Trade From Rate Reasonableness and Tariff Filing Requirements
AGENCY: Surface Transportation Board.
ACTION: Notice of Proposed Rulemaking.
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SUMMARY: The Board is considering whether it should exempt freight
forwarders in the noncontiguous domestic trade from rate reasonableness
and tariff filing requirements.
DATES: Comments are due on December 20, 1996.
ADDRESSES: Send comments (an original and 10 copies) referring to STB
Ex Parte No. 598 to: Surface Transportation Board, Office of the
Secretary, Case Control Branch, 1201 Constitution Ave., NW.,
Washington, DC 20423-0001.
FOR FURTHER INFORMATION CONTACT: James W. Greene, (202) 927-5612. [TDD
for the hearing impaired: (202) 927-5721.]
SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No.
104-88, 109 Stat. 803 (1995) (ICCTA), abolished the Interstate Commerce
Commission (ICC) and transferred certain of its responsibilities,
including the responsibility for regulating intermodal surface
transportation in the noncontiguous domestic trade, to the Surface
Transportation Board (Board). Additionally, the ICCTA transferred the
responsibility for regulating port-to-port water carrier transportation
in the noncontiguous domestic trade from the Federal Maritime
Commission (FMC) to the Board.
Under the FMC's regulations, both vessel operating common carriers
(VOCCs) and non vessel operating common carriers (NVOCCs) were required
to file tariffs for their transportation services in the noncontiguous
domestic trade. Under the ICCTA, VOCCs are classified as water carriers
and NVOCCs are classified as freight forwarders.
The ICCTA significantly reduced economic regulation over surface
transportation. Nevertheless, the provisions of 49 U.S.C. 13701 and
13702 continue to impose rate reasonableness and tariff filing
requirements on certain property transportation in the noncontiguous
domestic trade. While these requirements are related primarily to the
services of water carriers, and joint intermodal services with water
carriers, they also appear to encompass freight forwarder services.\1\
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\1\ See, for example, 49 U.S.C. 13702(b)(2)(C).
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Pursuant to the provisions of 49 U.S.C. 13541, the Board is to
exempt a class of persons from an otherwise applicable statutory
provision if it finds that the application of that provision (1) is not
necessary to carry out the transportation policy of section 13101; (2)
is not needed to protect shippers from the abuse of market power or
that the transaction or service is of limited scope; and (3) when an
exemption is in the public interest.\2\ Pursuant to this statutory
requirement, we are considering whether we should relieve freight
forwarders in the noncontiguous domestic trade from rate reasonableness
and tariff filing requirements.
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\2\ We note that the statute, as written, directs us to exempt
when ``(3) (regulation) is in the public interest.'' We presume that
Congress, in drafting the ICCTA, intended to direct us to exempt
when ``an exemption is in the public interest.''
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Freight forwarders assume responsibility for transportation from
the place of receipt to the place of destination, and frequently
provide consolidation, assembly, break-bulk, distribution and other
services of value to their customers. The freight forwarder industry is
highly competitive, and any person meeting basic fitness and financial
responsibility requirements can become a freight forwarder and provide
service to the public. Additionally, noncontiguous domestic trade
transportation services are available from the underlying water
carriers, which must file tariffs and charge rates that are subject to
challenge on reasonableness grounds.
Given the availability of transportation services from the
underlying carriers, as well as the highly competitive environment for
freight forwarder services, we seek comment on whether the rate
reasonableness and tariff filing requirements for freight forwarders in
the noncontiguous domestic trade are necessary to carry out the
transportation policy of 49 U.S.C. 13101 or protect shippers from the
abuse of market power, and whether the elimination of such requirements
may be in the public interest. We note in this connection that freight
forwarders subject to the former ICC's jurisdiction were relieved of
tariff filing requirements in 1986,\3\ even though motor carriers
continued to be subject to such requirements until 1994.\4\ Although
Congress, in the ICCTA, recently reenacted the tariff filing and rate
reasonableness requirements for water carriers themselves, we seek
comment on whether these requirements are necessary as to freight
forwarders in the noncontiguous domestic trade.
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\3\ Freight forwarder tariff filing requirements were eliminated
by the Surface Freight Forwarder Deregulation Act of 1986.
\4\ Motor carrier tariff filing requirements for individually
determined rates for the transportation of property (other than
household goods) were eliminated by the Trucking Industry Regulatory
Reform Act of 1994, with respect to transportation other than in the
noncontiguous domestic trade.
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Request for Comments
We invite comments on all aspects of the proposed exemption. We
encourage
[[Page 59076]]
any commenter that has the necessary technical wherewithal to submit
its comments as computer data on a 3.5-inch floppy diskette formatted
for WordPerfect 5.1, or formatted so that it can be readily converted
into WordPerfect 5.1. Any such diskette submission (one diskette will
be sufficient) should be in addition to the written submission (an
original and 10 copies).
Small Entities
The Board preliminarily concludes that this rule, if adopted, would
not have a significant economic effect on a substantial number of small
entities. The Board, nevertheless, seeks comment on whether there would
be effects on small entities that should be considered, so that the
Board can determine whether to prepare a regulatory flexibility
analysis at the final rule stage.
Environment
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
List of Subjects in 49 CFR Part 1319
Exemptions, Freight forwarders, Tariffs.
Decided: November 6, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons and
Commissioner Owen.
Vernon A. Williams,
Secretary.
For the reasons set forth in the preamble, the Board proposes to
add a new part 1319 to title 49, Chapter X, of the Code of Federal
Regulations to read as follows:
PART 1319--EXEMPTIONS
Sec.
1319.1 Exemption of freight forwarders in the noncontiguous
domestic trade from rate reasonableness and tariff filing
requirements.
Authority: 49 U.S.C. 721(a) and 13541.
Sec. 1319.1 Exemption of freight forwarders in the noncontiguous
domestic trade from rate reasonableness and tariff filing requirements.
Freight forwarders subject to the Board's jurisdiction under 49
U.S.C. 13531 are exempted from the rate reasonableness and tariff
filing requirements of 49 U.S.C. 13701 and 13702.
[FR Doc. 96-29554 Filed 11-19-96; 8:45 am]
BILLING CODE 4915-00-P
