Container-on-Barge Pre-Feasibility Study Final Report - Towmasters ...

To date, council members have identified the following technical and legal problems with
operating a container-on-barge (COB) service:
1. The need to easily obtain reliable, prompt and readily accessible information on barging
costs, transit times and intermodal connectors.
2. The need to identify an entity to oversee the operation (i.e. bookings, scheduling,
customer service, and bills of lading. This entity would also be charged with the
responsibility of negotiating the service contracts with the barge companies and river
terminals.
3. The need to identify the insurance responsibility when handling multi-shippers and multishipments
on one barge.
4. Dunning and equipping existing barges to handle containers.
5. Ensuring terminals along the inland waterways have the equipment, facilities and
technical know-how to handle twenty and forty-foot containers.
The members of our shippers’ council have enthusiastically participated in our process and
continue to offer support as we try and diversify the commodity mix on the inland waterway
system.
PBSC Evaluation of the Shipper Associations and the Shipping Act of 1984
The Shipping Act of 1984 was reviewed for organizational requirements. It was deemed
unnecessary to formally organize under the Act at this time. It is useful, however, to indicate the
advantages and requirements of such organization when a group of shippers is prepared to
negotiate international pricing.
The Shipping Act of 1984 recognized three distinct types of ocean intermediaries that represent
shippers in negotiating service contracts. They are Freight Forwarders, Non-Vessel Operating
<strong>Container</strong> Companies (NVOCC) and Shippers’ Associations, which represent multiple shippers
and can negotiate service contracts with carriers. A description of these intermediaries can be
found at < http://www.apl.com/assets/applets/osra.pdf >, “U.S. Trade: Clear Sailing in
Unchartered Seas and <strong>Container</strong> Shipping After Deregulation.” 1
The formation of these entities provides certain anti-trust exemptions allowing shippers in
international trade to discuss pricing under certain circumstances. The requirements for filing
with the Federal Maritime Commission can be found at < www.fmc.gov >, Ҥ 1704.
Agreements.” 2
1 Hard Copy located in Appendix A.
2 Summary is located in Appendix B.