Full Volume 19 - Federal Maritime Commission

BRUNSWICK CORP v SEA LAND 803
of the same commodity which moved via Sl Ia Land during the same time
period at the rates involved in this application
Sea Land offers the following as grounds for granting the application
4 Sea Land Tariff No 234 FMC No 106 and ICC No 92 naming mini bridge rates
from U S Atlantic and Gulf seaport cities to Far East ports carried a special rate of
100 00 wM on original page 577 effective September 15 1975 Attachment No I
subject to an expiration date of July 31 1976 as shown in Rule 10 on 6th Revised Page
86 Attachment No 2 and applying to Japan Group I ports including Tokyo as provided
in Rule No 5
Commitment was made to the shipper to maintain the rate of 100 00 W M without
increase through December 31 1976 per teletype of February 24 1976 from our Chicago
sales office to our Pacific Division pricing headquarters in Oakland Attachment No 3
Concurrently Sea Land was processing a general increase in rates in Tariff No 234
corresponding to a similar general increase in all water rates taken by the Far East
Conference The increase was originally intended to become effective April I 1976 but
actually became effective May 1 Special rates which Sea Land had agreed to maintain
in effect beyond that date were of course not to be subjected to the general increase
Unfortunately due to administrative error Sea Land failed to except the special rate in
Item No 894 4210 00 from the general increase and the rate of 100 00 W M was
increased to 113 W M on 1st Revised Page 577 Attachment No 4
On May 13 this error was discovered by pricing personnel who sent a teletype
message to the Elizabeth office requesting them to reinstate the 100 00 rate Attachment
No 5 That rate was then reinstated on 2nd Revised page 577 effective June I 1976
Attachment No 6 Meantime the three shipments involved herein had moved on May
10 and were assessed the then applicable rate of 113 00 W M Copies of each of the
bills of lading and freight bill are enclosed as Attachment No 7 Having been assured of
the continuance of the 100 00 rate through December 31 the shipper s freight forwarder
reduced the charges to the basis of that rate when paying the Sea Land freight bills
Section 18 bX3 ofthe Shipping Act 1916 46 USC 817 as amended by
Public Law 90298 and Rille6b Special DocketApplications Rules of
Practice and Procedure 46 CPR 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 filed 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 filed 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
the Act and section 502 92 of the Commission s Rules of Practice and
Procedure
Therefore upon consideration of the documents presented by the
Applicant it is found that
3
For other provisions and requirements see 18b 3 and 502 92 of the Commission s Rules of Practice and
Procedure
19 FM C
46 CFR 502 92 a c