PRIA, Government Policy, Made Personal

Summary

A common carrier may pay an ocean freight forwarder only when the forwarder gives a written statement that it has any required license and that it both arranged or confirmed space on a vessel and prepared the bill of lading or similar shipping papers. The carrier may not pay for those same services more than once for the same shipment. A forwarder cannot be paid for a shipment if it has a direct or indirect financial interest in that cargo, and a carrier must not knowingly make such a payment. Groups of two or more ocean carriers that set forwarder pay cannot stop a member from acting on its own about pay levels if the member gives no more than 5 days’ notice. Those groups also may not agree to cap forwarder pay at less than 1.25% of the total tariff rates and charges assessed on the cargo.

Title 46, §40904

Shipping, Source: USLM XML via OLRC

(a)Certification of License and Services.—

A common carrier may compensate an ocean freight forwarder for a shipment dispatched for others only when the ocean freight forwarder has certified in writing that it holds an ocean transportation intermediary’s license (if required under section 40901 of this title) and has—

(1)engaged, booked, secured, reserved, or contracted directly with the carrier or its agent for space aboard a vessel or confirmed the availability of the space; and

(2)prepared and processed the ocean bill of lading, dock receipt, or other similar document for the shipment.

(b)Dual Compensation.—

A common carrier may not pay compensation for services described in subsection (a) more than once on the same shipment.

(c)Beneficial Interest Shipments.—

An ocean freight forwarder may not receive compensation from a common carrier for a shipment in which the ocean freight forwarder has a direct or indirect beneficial interest. A common carrier may not knowingly pay compensation on that shipment.

(d)Limits on Authority of Conference or Group.—

A conference or group of two or more ocean common carriers in the foreign commerce of the United States that is authorized to agree on the level of compensation paid to an ocean freight forwarder may not—

(1)deny a member of the conference or group the right, upon notice of not more than 5 days, to take independent action on any level of compensation paid to an ocean freight forwarder; or

(2)agree to limit the payment of compensation to an ocean freight forwarder to less than 1.25 percent of the aggregate of all rates and charges applicable under a tariff and assessed against the cargo on which the services of the ocean freight forwarder are provided.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4090446 App.:1718(e).Pub. L. 98–237, § 19(e), Mar. 20, 1984, 98 Stat. 88; Pub. L. 105–258, title I, § 116, Oct. 14, 1998, 112 Stat. 1912. In this section, the words “ocean freight forwarder” are substituted for “ocean transportation intermediary, as defined in section 1702(17)(A) of this Appendix” and “ocean transportation intermediary” because the definition of “ocean transportation intermediary” in section 1702(17)(A) contains a definition of “ocean freight forwarder” which is restated as a separate definition. In subsection (d)(1), the word “calendar” is omitted as unnecessary.

§40904 Compensation by Common Carriers

Summary

Title 46, §40904

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata