NVOCC - Negotiated Rate Arrangements or NRA's

Each week, a number of new applicants for OTI licenses are published to the general public.  This means that we continue to add to the over 3500 US NVOCC-FF to the market.  Many are looking for some guidance and tips to best work and build their business within this industry.  For an NVOCC, the establishment of the NRA is one of the newer tools to build lasting relationships with shippers and build your business in a very competitive environment. 

So, using some specific language from the Fed Regs published March 2 2011 Vol 76, No 41 Pages – 11351 – 11361 and paraphrasing and pointing out some additional specifics, this posts’ main purpose is to NVOCC’s and Shippers that there are other ways of entering into agreements that are not required to be published in the public tariff nor subject to the same publishing requirements as Service Contracts, Tariff Rates and NSA’s (Negotiated Service Arrangement).

‘‘NVOCC Negotiated Rate Arrangement’’ or ‘‘NRA’’ means a written and binding rate arrangement between a shipper and an eligible licensed NVOCC to provide specific transportation service for a stated cargo quantity, from origin to destination, on and after receipt of the cargo by the carrier or its agent (or the originating carrier in the case of through transportation) (definition source: Fed Reg Part 532.3 pg 11360 Definitions)

The NRA is a tool used to exempt the NVO and client service arrangements from having to publish rates within the Shipping Act requirement regarding publishing and hosting this information online.  This means that the NVO is exempt from publishing the rate as per the Shipping Act and as their FMC license requires…

(Further from the Fed Regs….) In order to qualify for the exemptions to the general rate publication requirement as set forth in section 532.2, an NRA must:

• Be in writing;
• Contain the legal name and address of the parties and any affiliates; and contain the names, title and addresses of the representatives of the parties agreeing to the NRA;
• Be agreed to by both NRA shipper and NVOCC, prior to the date on which the cargo is received by the common carrier or its agent (including originating carriers in the case of through transportation);
• Clearly specify the rate and the shipment or shipments to which such rate will apply; and
• May not be modified after the time the initial shipment is received by the carrier or its agent (including originating carriers in the case of  through transportation).

An NVOCC wishing to invoke an exemption pursuant to this part must indicate that intention to the Commission and to the public by:

• A prominent notice in its rules tariff and bills of lading or equivalent shipping documents; and
• By so indicating on its Form FMC– 1 on file with the Commission. 

Further requirements of using the NRA, the NVOCC must state in their tariff rules of the use of NRA’s as part of their services and of course, allow access by the FMC to further audit this information upon request.  This also extends the requirement of allowing access to the Rule portion of the NVOCC Tariff to the public, free of charge. 

An NRA is not an NSA or Service Contract and therefore the NSA and/or Service Contracts must still meet the original publishing requirements of the Shipping Act and are not exempt from filing. 

If you would like more information about Tariff Filing, Tariff Publishing or if you are a start up or expanding NVOCC needing some support, help or just general questions answered, give us a call at 866-744-7101 or send us a message at information@artemus.us 

Until next time, ARTEMUS OUT!