Article Index

Rule 9: FREIGHT FORWARDER COMPENSATION

Filed on: 28 September 2019
Effective: 28 September 2019
Thru:
Expire:
Amendment:

  1. INBOUND
    1.  NOT APPLICABLE
  2. OUTBOUND
    1. Compensation will not be paid to a licensed Ocean Transportation Intermediary ( OTI ) acting as ocean freight forwarder except as the Carrier may provide on a case by case basis as negotiated and agreed with the OTI prior to cargo being tendered, or as may be provided in NVOCC Service Arrangements ( NSA ) from time to time.

      When compensation is to be paid as provided herein, it will only be paid to the extent of the value of services rendered in connection with any shipment dispatched on behalf of others. Compensation will be paid when, and only when, such forwarder is licensed with the Federal Maritime Commission under the Ocean Shipping Reform Act, 1998 and 46 CFR 515, and has performed with respect to such shipment the solicitation and securing of the cargo and the booking thereof, or otherwise has arranged for space for such cargo and has performed at least two of the following services:

      Rule:

      1. The coordination of the movement of the cargo.
      2. The preparation and processing of the ocean bill of lading.
      3. The preparation and processing of dock receipts and delivery orders.
      4. The preparation and processing consular documents and export declarations; and
      5. The payment of ocean freight charges on such shipments.
    2. NRAs on Compensation:
      1.  Such compensation shall be based as may be indicated in a NSA or otherwise agreed to between Carrier and OTI.
      2. The applicable percentage of ocean freight rate, or other basis for the payment of compensation shall be as indicated in a NSA or otherwise agreed to between Carrier and OTI.
    3. Compensation will not be paid on the following, unless otherwise agreed to or specified in a NSA:
      1.  Advance Charges
      2. Bunker, Currency, Congestion and War Risk Surcharges
      3. Cargo exempt from tariff regulations under the Shipping Act, 1984, as amended by the Ocean Shipping Reform Act of 1999.