Full Volume 19 - Federal Maritime Commission

FORD MOTOR CO v SEA LAND 743
is not aware of any other shipment ofthe same commodity which moved
via Sea Land during the same time period at the rates involved in this
shipment
Sea Land offers the following as grounds for granting the application
4 Sea Land negotiated with Ford Motor Company for a rate to cover movement of
knocked down shipping racks being returned from Houston Texas or New Orleans
La to Hiroshima Japan A rate of 135 00 per weight ton of 2 000 Ibs to apply in Sea
Land s mini Iandbridge service was agreed upon as a special rate to apply only to
Hiroshima Letter from Ford Motor Company dated October 29 1975 to Sea Land
attachment no I confirms these negotiations The agreed rate was to become effective
by January 1 1976 and remain in effect through March 31 1976 to cover the anticipated
period of movements It also included attachment of a minimum weight of 1168 weight
tons per container to the rate to insure adequate minimum revenue for Sea Land as set
forth in teletype exchanges dated September 30 and October 29 attachment no 2
between Sea Land s Oakland Pacific Division office and the home office in Edison
Menlo Park
In sending the publication instructions however our Pacific Division in Oakland
erroneously transmitted to the Pacific Division in Elizabeth a weight or measurement
option for the rate whereas the agreement was for the rate to apply on a weight basis
only subject to the minimum weight per container This clerical error was carried
forward to the actual tariffpublication request attachment no 3 resulting in publication
of the agreed rate on an optional weight of measurement basis in Item No 629999931
on 1st revised pate 477 effective December 31 1975 together with the applicable
conditions and notes on 2nd revised page 82 4th revised page 83 and 3rd revised page
86 attachment no 4
Within a few days after the effective date of December 31 the error in publication
was picked up By teletype dated January 7 1976 the Pacific Division in Oakland
instructed a correction be made and it was passed to the tariffpublications department
on 2nd
January 12 attachment no 5 Actual publication of the correct rate was made
revised page 477 attachment no 6 which became effective February 23 1976 on
statutory 30 days notice Less than statutory notice was not authorized for this type of
publication under the Interstate Commerce Commission s guidelines then governing
reductions in rates in mini landbridge tariffs
Section 18b 3 ofthe Shipping Act 1916 46 USC 817 as amended by
Public Law 9O298 and Rule 6b Special Docket Applications Rules of
Practice and Procedure 46 CFR 502 92 a set forth the applicable law
and regulation The pertinent portion of 18b 3 provides that
The
Commission may in its discretion and for good cause shown permit a
common carrier by water in foreign commerce to refund a portion of freight charges
collected from a shipper or waive the collection of a portion of the charges from a
shipper where it appears that there is an error in a tariffof a clerical or administrative
nature or an error due to an inadvertence in failing to file a new tariff and that such
refund or waiver will not result in discrimination among shippers Provided further That
the common carrier has prior to applying to make refund med a new tariffwith the
Commission which sets forth the rate on which such refund or waiver would be
based and Application for refund or waiver must be med with the Commission
within 180 days from the date of shipment 3
The clerical and administrative error recited in the subject application is
of the type within the intended scope of coverage
of section 18b 3 of
3
For other provisions and requirements see 18 b 3 and fi 502 92 of the Commission s Rules of Practice and
Procedure 46 CFR 502 92 a c
19 F M C