Full Volume 19 - Federal Maritime Commission

630 FEDERAL MARITIME COMMISSION
categories 1 those advocating free or reduced rates for GSA and 2
those suggesting minimum fee charged GSA A discussion of each
follows
1 Free or reduced rates
GSA suggests that section 510 24 b be amended to allow GSA to
obtain forwarding services free of charge or at reduced rates The
justification offered for this amendment is that GSA is unique as a
shipper is not competitive with commercial shippers and that the nature
of its cargo and programs make its shipments indistinguishable from those
of charity or relief organizations which under section 510 24 b are
allowed free or reduced forwarding fees We cannot subscribe to this
proposal
The feeling of the Committee on Merchant Marine and Fisheries as
expressed in its Report on the bill which ultimately added section 44 to
the Shipping Act 1916 was that
services which have been performed by forwarders for shippers should be
compensated for by the shippers and that where brokerage fees have been earned by the
forwarders or brokers then the carriers in turn should paY for these services at the
historical rate Both the carrier and the shipper should be expected to pay and the
charge to each by the forwarders should be the reasonable value of the forwarder s
service to each Emphasis added House Report No 1096 accompanying H R 2488
87th Cong 1st Sess p 3
There is nothing in the Act or its legislative history to support the
conclusion that Government agencies are to be given preferred treatment
on forwarding services If GSA must pay the same terminal and ocean
transportation charges as do commercial shippers we see no reason why
GSA should acquire a preferred status in regards to forwarding services
Any amendment to section 51O 24b which would place GSA shipments
in the same category as relief and charitable agencies 17 would in effect
permit forwarders of GSA shipments to rely on brokerage from ocean
carriers to cover the costs of processing such shipments This would be
clearly inconsistent with the intent of Congress expressed above
Nor are we prepared at least at this time to exempt under section 35 of
the Act shipments of the civilian executive agencies of the U S
Government from the application of the provisions of the Shipping Act
1916 However we will continue to review this matter to determine the
future feasibility ofthe requested exemption
2 Minimum fee charged GSA
There have also been suggested to us three approaches for making
GSA bids compensatory
Hearing Counsel s proposal would establish a unit cost for GSA
forwarding services by looking to the ratio of the commercial forwarding
fees charged by the licensee in the previous year to the total revenue as a
11 We intend to review theexemption for relief and charitable aaeneies in section lO 24b to determine whether it
continues to be proper or lawful with the repeal of section 6 of the Intercoastal Shippina Act 1933
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