The Lowest Possible Transportation Rates for the Highest Quality Transportation

Under the 1998 Shipping Reform Act (S.414), service contracts entered into between shippers and carriers are filed confidentially with the FMC, and only "essential" terms like origins, destinations, commodities, minimum quantity committed, and duration will be made available to the public. In other words, there is no longer any mechanism or requirement for public disclosure of contract rates and terms. Shippers' Associations may also enter into confidential contracts.

The regulations written under the 1998 Shipping Reform Act enable carriers to negotiate favorable rates for large importers (over 5,000 FEUs) without small and medium sized importers knowing what the most competitive rate levels might be. This reduced rate visibility has put small and medium sized importers at a distinct disadvantage in negotiations with the steamship lines.