Key Points Nvoccs

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KEY POINTS FOR NVOCCs

FMC TARIFF REGULATION:



1. ALL RATES MUST BE FILED

All rates / surcharges applied on NVOCC HB/Ls, (or

equivalent shipping documents) to/from the USA must be

documented using either a:

1) Tariff rate filed in your FMC tariff

2) NVOCC Service Arrangement (NSA)

3) NVOCC Negotiated Rate Arrangement (NRA)

Key Points for NVOCCs




FMC TARIFF

RATE

NRA

NSA

OR

OR

1. ALL RATES MUST BE FILED



2. FILING REQUIRED BY CARGO RECEIPT DATE:Rates must be filed and effective in FMC tariffs (or filed in an NSA or NRA) no

later than the date cargo is received at the origin shown on the NVOCCs house

bill of lading (HBL).

3. TARIFF RATES MUST BE FILED FOR A MINIMUM OF 30 DAYS:Rates can be filed with or without expiration dates, but must be ‘on file’ for a

minimum of 30 days. . This 30 day requirement does not apply to rates in

NRAs or NSAs.

4. RATES FOR NEW CARGO MOVEMENTS MAY BE EFFECTIVE UPON FILING:

By 'new' we mean a rate that is not already in effect in the tariff for a specificcommodity description, origin, destination, container size, rate basis, or other

variable allowed by FMC. A wide range of variables is allowed by FMC, most

NVOCCs use these to enjoy flexibility in their pricing.








7. RATE REDUCTIONS MAY BE EFFECTIVE IMMEDIATELY


Once the decrease is effective it must be applied to all applicable shipments.



8. REMOVING RATES FROM A TARIFF

REQUIRES 30 DAYS NOTICE


If a rate is initially filed without an expiration date, and, then at a later date theCarrier wants to remove it from the tariff, the FMC requires 30 days notice before

the rate may be removed.

Expiration dates are optional, but we highly recommend all freight rates be filed

with expiration dates for two reasons:

First, once a rate expires, it can be re-filed at a higher level without waiting for

30 days. This gives you more flexibility to react to changes in market rates.

Second, once a rate expires, it is automatically removed from the tariff. This

helps keep the tariff accurate, compact, and easier to read and use.

01Apr2013 02May2013



9. OTHER OPTIONS FOR RATE FILING


There are many strategies and techniques allowed in the

FMC tariff filing regulations that enable NVOCCs to publishmore than ONE RATE for similar cargoes.





a. Origin/Destination and Routing: Different rates are allowed by FMC for different origins

and destinations. Different rates are allowed by FMC for different routings, for example:

From: SHANGHAI, CHINA to:

a) NEW YORK via all water (Panama Canal)

or

b) NEW YORK via US West Coast (MLB),or

c) NEW YORK via all water (Suez Canal).

b. Place of Delivery: Different rates are allowed by FMC when one rate applies to the

Container Yard (CY) at destination, and a different rate applies to Consignee's Door. (Same istrue for Origin). Also, when Door Service is provided the place or origin or destination can be

very specific - even including the Zip Code. Therefore, two different rates for the same cargo

movement to different zip codes in the same destination city are allowed by FMC.





c. Transit Time: Different rates are allowed by FMC when shipment transit time varies. This

may be described as Economy, Regular or Premium Service; see the Alternate Rate/Service

Rule in our sample NVOCC tariffs for details - it allow for 3 different rates for same cargomovement.

d. Ocean Carrier Used: Different rates are allowed by FMC when different underlying ocean

carriers are used, and rates are noted as such. This is also called a 'carrier specific' rate. Many

NVOCCs use this option. Carrier specific rates can also include different surcharge amounts.

e. Time Volume Rates (TVR): Different rates are allowed by FMC when these are filed as TVR

and the NVOCC & its customers follow the TVR regulations and record keeping requirements.

There is no limit to the number of TVR filings allowed, even for the similar cargo movements.

Contact your DPI Account Representative for more details.

f. Shipment Volume: Different rates are allowed by FMC when these require different

shipment volumes. This can be useful for LCL rates. For example, three rates could be filed for

minimum 1 CBM, minimum 5 CBM, and minimum 10 CBM. In each case these minimums

must apply on per shipment/per BL basis.




DPI’s online New File Request process has built in options to take advantage of your ratefiling options as an NVOCC.

Built in quality controls help ensure that you are in full compliance with FMC

regulations, and your DPI Account Representative will continue to review all of your

requests before filing into your FMC tariff.

See a video tutorial on DPI’s New File Request process by clicking below:

NEW FILE REQUEST:

DPI’S ONLINE NEW FILE REQUEST PROCESS

http://www.dpiusa.com/archives/etc/newfilerequest_information.html



NVOCC NEGOTIATED RATE ARRANGEMENTS

(NRAs)


• FMC’s newest pricing option.

• An NRA is a written agreement between an NVOCC and their customer which

documents the agreed rate(s) for shipment(s) of a specific cargo quantity.

• May act as a substitute for tariff rate filing – rates filed as NRAs do not need to be

filed in your FMC tariff.

• Apply to a specific shipper named in the NRA.• NRAs cannot be amended once finalized and accepted, and are best used for

single shipments.

• Unlike tariff rates, NRAs remain confidential.

What are NRAs?

NVOCCs must satisfy several requirements before filing NRAs , and NRAs themselves

must adhere to the FMC NRA regulations. DPI offers an NRA Management System

(NRAMS) to assist with these requirements.

For more information on the requirements for filing NRAs, see DPI’s NRA video tutorial.

https://www.dpiusa.com/archives/etc/nra_information.html





NVOCC SERVICE ARRANGEMENTS

(NSAs)


• An NSA is a written contract between an NVOCC and his shipper customer. The

terms and rates are unique to the named NSA shipper.

• NSAs include minimum quantities, non-performance penalties, and apply over a

fixed period of time.

• Rates filed in an NSA do not need to be filed in your FMC tariff.

• Unlike NRAs, which cannot be amended, NSAs may be amended at any time.• Unlike tariff rates, NSA rates are confidential.

• NSAs have been available as a pricing option for ALL NVOCCs since January 2005.

What are NSAs?

NVOCCs must register with the FMC before filing NRAs , and NSAs must adhere to the

FMC NSA regulations. DPI offers its members a customized template for NSA filing.

For more information on the requirements for filing NSAs, visit www.dpiusa.com.

http://www.dpiusa.com/

http://www.dpiusa.com/



Filing Options for NVOCCs - Summary


Written acceptance from shipper required, and

shipper/consignee name is included in filing.

Must be filed with the FMC.

May be amended.

Subject to FMC’s 30 day notice requirements.

Filing is required by cargo receipt date.

Confidential – NOT available to shipping public.

May NOT be amended.

May include minimum quantities,

non-performance penalties




For clarification, examples, or more information on any of

the information shown here please contact us at

Distribution-Publications, Inc. (DPI)Tel: 1-510-273-8933

or call toll free in the USA: 1-800-204-3622,

or email: [email protected]

mailto:[email protected]

mailto:[email protected]

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Key Points Nvoccs