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46 U.S.C. § 40904Compensation by common carriers

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 291 words · no verdicts yet

in plain englishAI-generated · not legal advice

A carrier can only pay a forwarder who certifies its license and work. It can't pay twice for the same shipment or pay a forwarder with a hidden interest in it. Carrier groups also can't cap forwarder pay below 1.25% of shipping charges.

(a) Certification of License and Services A common carrier may only pay an ocean freight forwarder for handling someone else's shipment if the forwarder has certified, in writing, that it holds an ocean transportation intermediary's license (when one is required under section 40901) and that it has (1) directly booked, reserved, or contracted for space on a vessel — or confirmed that space is available — and (2) prepared and processed the ocean bill of lading, dock receipt, or similar shipping document. (b) Dual Compensation A carrier cannot pay for these services more than once on the same shipment. (c) Beneficial Interest Shipments A forwarder cannot be paid by a carrier for a shipment in which the forwarder has a direct or indirect financial interest, and a carrier cannot knowingly pay compensation on such a shipment. (d) Limits on Authority of Conference or Group A conference or group of two or more ocean common carriers that's allowed to agree on forwarder pay rates cannot (1) stop a member from taking independent action on forwarder pay, as long as the member gives 5 days' notice; or (2) agree to pay forwarders less than 1.25 percent of the total tariff rates and charges assessed on the cargo the forwarder handled.
the actual law source: uscode.house.gov ↗public domain
(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.

Source credit: (Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1539.)

history & why it existsrecord from the source credit
  • 2006Enacted · Pub. L. 109-304 · 120 Stat. 1539

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.

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