PANYNJ to Discuss Cargo Facility Charge with OCEMA

The Port Authority of New York and New Jersey has been cleared to launch discussions related to the cargo facility charge with Ocean Carrier Equipment Management Association (OCEMA) as of June 25, 2017.

Under the proposed discussion agreement, PANYNJ and OCEMA, and all of its individual carrier members, are seeking permission to discuss and reach agreement on matters related to the cargo facility charge (CFC) that PANYNJ implemented in 2011.

Specifically, the parties want to discuss the potential for an alternative billing and collection system for the CFC.

The discussion agreement between the parties will go on following a tie vote by the US Federal Maritime Commission (FMC) on June 22.

“I am not in favor of delaying implementation of this agreement any further. PANYNJ and OCEMA are sophisticated parties and should be allowed to meet and discuss the CFC effective immediately,” William P. Doyle, FMC Commissioner, said.

Doyle added that if jointly operated programs are to be undertaken, then the parties would be required to file an amendment with the Commission for further review and analysis prior to possible implementation.

Two of the Commissioners were concerned about the significant market share that OCEMA members and its individual carriers control at the Ports of New York & New Jersey and voted to seek additional information that would assist the agency in fully assessing the competitive effects and consequences of the agreement.

Another two Commissioners voted to allow the agreement go into effect without requiring additional information at this time.

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