Comment from FMC Consulting Services, Inc.
FMC Consulting Services, Inc.SupportBusiness
Summary: FMC Consulting Services, a private industry consultancy, supports the proposed revisions to the FMC's rulemaking procedures. They argue that simplifying procedures, such as using electronic records and informal hearings, will reduce bureaucratic hurdles and empower small businesses to participate more equitably in the regulatory process.
FMC Consulting Services, (“FMCCS”) is a small business but is not an Ocean Transportation Intermediary (OTI) nor a Non-Vessel Operating Common Carrier (NVOCC).
FMC Compliance Services is a full-service compliance partner dedicated to helping clients meet ocean-shipping laws and Federal Maritime Commission regulations. Our offerings include tariff publication, service-contract support, export-documentation services, and tailored training
Ms. Laurie Zack-Olson, President of FMC Compliance Services and FMC Practitioner #1349, has been a leader in the NVOCC community for near four decades. She served as President and Executive Director of the International Association of NVOCCs (1988–2000), held operational and senior management roles—from export clerk to Corporate VP of Global NVO Operations—and played a key role in shaping the Shipping Act of 1984 and the Ocean Shipping Reform Act of 1998. Ms. Zack-Olson has testified before Congress, conducted FMC NVOCC audits, and continues to deliver her signature NVO 101 Training seminar. Most importantly for this discussion, Ms. Zack-Olson participated in the Trade Team to develop the current Automated Export System (AES) in the 1990s.
As a private industry consultant, FMC Consulting Services is in contact across industry activities including but not limited to logistical, freight forwarding, cargo, supply chain and shipping maritime operations.
1. Accessibility for Small Entities: We support revising the rules of practice and procedure to enhance user-friendliness for small entities. Simplifying procedures will empower small businesses to engage more constructively in the regulatory process, reducing intimidation from bureaucratic hurdles. We endorse the use of informal public hearings as outlined in Revised §502.14.
2. Equity in Participation: Smaller businesses frequently face challenges due to limited resources, which hampers their ability to navigate complex procedural rules. Thus, revising Part 502 to eliminate the requirement for mailing to prior commenters and instead rely on an electronically accessible record—as proposed in Amended §502.53—will create a more equitable environment that allows small entities to present their cases without unnecessary logistical burdens.
3. Promoting Innovation: By making procedural rules more accessible, the FMC can stimulate engagement from small entities, fostering innovation and competition within the industry. We support ensuring that oral and written ex parte communications are recorded on the rulemaking docket, as stated in Revised §502.53b. This appropriate transparency will lead to a more comprehensive analysis of diverse perspectives, ultimately benefiting the maritime industry and will provide the Commission with a broader base of current information.
4. Encouraging Feedback and Collaboration: A streamlined rulemaking process is essential for promoting greater participation from small entities. By incorporating more inclusive feedback mechanisms, the FMC can enhance decision-making processes, ensuring that the unique challenges faced by small businesses are acknowledged and addressed. The revised rules embrace of informal rulemaking procedures described at §502.1 appropriately provides a determination of whether a proceeding will require dispute format or not. Dispute formats are chilling to small entities as they must consider costs before entering onto a docket record.
5. Feedback Mechanisms for Small Entities: We emphasize the need for established avenues for small entities to provide regular input during the rulemaking process. We support the provisions in Revised §502.54b that facilitate the creation of negotiated rulemaking committees to explore the regulatory impacts on small businesses.
6. We encourage the FMC to facilitate a mechanism for capturing the narratives of small businesses, as their unique experiences and challenges can provide valuable insights. Many small businesses are hesitant to submit comments in proceedings due to fears of confrontation with larger carrier parties, which may lead to potential backlash or targeting. This apprehension often results in small entities choosing to defer or demur rather than articulating a formal comment or position. It is critical for the FMC to acknowledge and address these concerns to ensure that small businesses feel empowered and safe in voicing their perspectives, thereby fostering a more inclusive and representative regulatory environment.
We appreciate the opportunity to comment on this important rulemaking effort and look forward to ongoing engagement with the FMC.
Sincerely,
FMC Consulting Services, Inc.