A service contract is a contract, other than a bill of lading, between a shipper and an ocean common carrier or an ocean common carrier agreement in which the shipper commits to provide a certain minimum quantity of cargo over a fixed period of time and the ocean common carrier or the ocean common carrier agreement commits to a certain rate or rate schedule and a defined level of service. 46 C.F.R. § 530.3(q).

Must all service contracts be filed with the Commission?

Generally, yes, although there are exceptions for service contracts for certain commodities:  bulk cargo, forest products, recycled metal scrap, new assembled motor vehicles and waste paper or paper waste. 46 C.F.R. § 530.13.

Who must file service contracts?

Carrier parties, i.e. ocean common carriers, agreements among ocean common carriers or conferences, are responsible for filing service contracts with the Commission.  46 C.F.R. § 530.5

How are service contracts filed?

All service contracts must be filed electronically in SERVCON, the Commission’s internet-based filing system.  See 46 C.F.R. Part 530.

What is SERVCON?

SERVCON is the Federal Maritime Commission’s internet-based filing system for ocean common carrier service contracts and non-vessel-operating common carrier service arrangements (“NSAs”).  It is located on the Commission’s website, www.fmc.gov, under SERVCON.  For more information on NSAs, see NSA FAQs on this website.

Which document formats will the Commission’s SERVCON internet-based filing system accept?

SERVCON accepts service contracts and amendments written in more than 90 off-the-shelf software formats, including e.g., WordPerfect, Microsoft Word, WordStar and ASCII.

Are there user fees associated with SERVCON?

There is no user fee required at this time for SERVCON filings.

How do I register to file service contracts?

Anyone wishing to file service contracts on their own behalf or as an agent for an ocean common carrier must register to access the SERVCON system by filing Form FMC-83.

What is Form FMC-83?

Form FMC-83 is a service contract registration form.   Form FMC-83 must be filed in order for a filer to obtain user identification, logon and password, to access the SERVCON system to file service contracts.

Who is required to file Form FMC-83?

Carriers or conferences that enter into service contracts subject to the Commission’s rules governing service contracts must file a FMC-83 Form.  46 C.F.R. § 530.5(c).

How can a copy of Form FMC-83 be obtained and filed with the Commission?

Go to the Commission’s website, www.fmc.gov, click on Forms and Applications, scroll down to For Service Contracts, click on Service Contract Registration (FMC-83), print a copy of the form, fill out the form completely with the information requested, and fax a copy of the completed form to the Office of Service Contracts and Tariffs at (202) 523-5867.  If there are no problems with the FMC-83, a request is forwarded to the Commission’s Office of Information Technology (OIT) to assign a logon and password ID.  OIT will send the ID by certified mail to the person named on Line 7 of the form authorized to access SERVCON and file service contracts.

Are SERVCON filings confidential?

Yes.  Except for the public essential terms, discussed below in these FAQs, the Commission keeps all service contracts and amendments to service contracts confidential.  Shipping Act of 1984, as amended.  The parties may elect to disclose the terms of their service contracts, if they so agree. 

Are there any publishing requirements related to service contracts?

Yes. All authorized persons who have a duty to file service contracts under 46 C.F.R. § 530.5 (i.e. carrier parties) must also make available to the public, contemporaneously with the filing of each service contract with the Commission, and in tariff format, a concise statement of the following essential terms (“public ETs”): (1) origin and destination port ranges; (2) the commodity or commodities; (3) cargo minimum quantity or portion; and (4) the duration.  46 C.F.R. § 530.12. 

What is an Essential Terms Publication?

An Essential Terms Publication (ETP) is a quasi-tariff formatted publication that contains the public ETs only of a carrier or conference in a single publication made available to the public at the location of the carrier’s or conference’s tariff(s).

Must the public Essential Terms ETs) appear in any particular format?

Federal law requires that public ETs be made public in "tariff format." Shipping Act of 1984, as amended.  The Commission’s rules require that public ETs be published in a separate part of the carrier party’s tariff publication. 46 C.F.R. § 530.12(c).  Carrier parties may publish public ETs in a separate service contract essential terms publication tariff.  Public ETs may be organized in any manner, e.g., by trade, as a separate tariff type, etc. All public ETs must include a reference to a carrier-assigned service contract (“SC”) number.

Where can I find a common carrier's or conference's public ETs?

The public ETs are available at the common carrier’s or conference’s tariff location.  A list of tariff locations associated with a particular common carrier or conference is available on the FMC’s website Links to Tariffs.

When must public ETs be published?

Public ETs must be made available to the public contemporaneously with the filing of each service contract with the Commission.  46 C.F.R. § 530.12(a).

How and where must the public ETs of a non-conference agreement be published?

Where a service contract is entered into by an agreement among ocean common carriers that is not a conference, each individual carrier party to such a service contract must publish the ETs in its individual tariff publication and clearly indicate the relevant FMC-assigned agreement number.  46 C.F.R. § 530.12(c)(2).

May service contracts cross reference other material, specifically a published tariff?

Service contracts may refer to any widely available published material which is well known in the industry. 46 C.F.R. Part 530. An example of such cross-referencing would be to the currency exchange rates as published in the Wall Street Journal. Such cross-referencing may also include reference to the carrier party’s general rules tariff. Filers should particularly note that the terms of service contracts may not be "uncertain, vague or ambiguous." 46 C.F.R. § 530.8(c)(1).

Must common service contract standard terms ("boiler plate") be filed in every service contract?

Standard, repetitive or common contract terms (“boiler plate”) may either be published as a general rules tariff and cross-referenced to the carrier’s tariff or kept confidential by incorporating the terms into the filed service contract.

Must service contracts for inland movements in Europe be filed with the Commission?

Unlike U.S. federal law, the European Union views inland movements as separate and distinct from the ocean movement and does not allow common pricing by carriers offering such through movements.  U.S. law, on the other hand, views the entire movement as ocean shipping.  As such, contracts for through movements are service contracts and should be filed in their entirety.  Accordingly, if an ocean common carrier provides continuous transportation involving more than one mode of service (e.g., ship, rail, motor, air) for pickup or delivery at a point beyond the port at which the vessel calls, the service contracts covering the entire intermodal movement must be filed.  If the rate for an intermodal movement between the United States and Europe is computed by adding an ocean contract rate and an inland contract rate, both contracts must be filed with the Commission.

Must ocean common carriers enter into service contracts?

No.  Ocean common carriers may either offer service pursuant to a tariff or a service contract.  However agreements among ocean common carries must not prohibit or restrict its individual members from offering or negotiating service contracts. Shipping Act of 1984, as amended.

Who may offer a service contract?

An individual ocean common carrier, conference or an agreement between or among ocean common carriers may enter into a service contract. 46 C.F.R. § 530.2.  NVOCCs may offer NVOCC service arrangements (“NSAs”).  See FAQs on NSAs.

For purposes of service contracts, what is a "shipper"?

A shipper means cargo owner, person for whose account the ocean transportation is provided, the person to whom delivery is to be made, a shippers' association, or NVOCCs that accept responsibility for payment of all applicable charges under the service contract. 46 C.F.R. § 530.3(r).

Can a freight forwarder act as a shipper party to a service contract?

Generally, no.  See discussion at FMC Order Denying Petition No. P5-98.

Can a freight forwarder sign a service contract as an agent for a shipper?

In general, one party may sign a service contract “as agent for” or “on behalf of” a second party so long as both parties are clearly identified.  However, it should be clear that it is the second party which is the contract party and it is that party’s cargo, not the agent’s cargo,  that is entitled to service contract rates. 

Can an NVOCC act as a shipper party to a service contract?

Generally, yes.  To sign service contracts as shipper, an NVOCC must be in compliance with Commission tariff, licensing and financial responsibility regulations, as shown on the shipper status certification.  46 C.F.R. § 530.8(b)(10).

Must a shipper provide certification of its status under a service contract?

Yes.  The shipper party must certify its shipper status (e.g., owner of the cargo, shippers’ association, NVOCC)  as well as the status of any affiliates with access to service under the service contract, and sign on the signature page of a service contract or amendment.  46 C.F.R. § 530.8(b)(10).

Who is responsible for verifying that an NVOCC shipper signing a service contract has tariff and financial responsibility related to a service contract?

An NVOCC must provide proof that it has a published tariff and financial responsibility when signing a service contract.  46 C.F.R. § 530.6(c); 46 C.F.R. § 515.27.  It is the responsibility of the ocean common carrier, conference, or ocean common carrier agreement to obtain the proof.  Such information can be obtained from the Commission’s website at its NVOCC List and its NVOCC Tariff List.

What is a shipper affiliate?

Although “affiliate” is not defined by the Commission’s rules governing service contracts, the Commission is guided by this commonly-accepted definition, such as that included in its licensing and NSA regulations:  associated with, under common control with, or otherwise related through stock ownership or common directors or officers. 46 C.F.R. § 515.11(c); 46 C.F.R. 531.3(b).  

What is a correction?

A correction is any change to a service contract which has retroactive effect.  46 C.F.R. § 530.10(a)(2).

How does a person correct an error in a filed service contract?

For clerical or administrative errors in a filed service contract, either of the service contract parties may file an original and duplicate request for a correction with the Commission’s Office of the Secretary within (45) forty-five days of the contract’s filing with the Commission, accompanied by remittance of a $315 service fee.  46 C.F.R. § 530.10(c).

How do I file a correction to an electronic transmission error?

Commission rules permit VOCCs to correct an original filing that is defective due to an electronic transmission clerical error. The time to correct such SERVCON filing errors is limited to two business days after the initial, defective, electronic transmission. 46 C.F.R. § 530.10(d).

How are service contract effective dates determined?

A service contract must be filed with the Commission on or before cargo may move under it. The specific beginning and ending dates must be specified in the service contract.  The effective date starts at 12:01 a.m. eastern standard time on the beginning of the effective date, which cannot take place until the service contract is filed.  This rule also applies to effective dates of amendments to service contracts.  46 C.F.R. § 530.3(i).