FMC Expected Not to Fine 3 Japanese Firms

The U.S. Federal Maritime Commission is expected to announce today that it will not impose fines on three Japanese shipping companies. The FMC said in February that it would impose $100,000-per-voyage fines beginning today on U.S.-bound ships owned by Nippon Yusen, Kawasaki Kisen Kaisha Ltd. and Mitsui OSK Lines Ltd. The sanctions threat followed complaints from U.S. shipping companies that their access to Japan’s ports is hampered by discriminatory licensing, scheduling and labor-contracting practices. That has resulted in docking costs that are at least double those incurred at other regional ports, according to the Japan Foreign Steamship Assn., a trade group representing U.S. and European shippers. After nearly two weeks of bargaining in Washington with U.S. government representatives, the Japanese negotiators agreed to phase in changes that would make it easier for U.S. ships to make Japanese port calls, clearing the way for the FMC to lift the sanctions. Maritime Administrator Albert Herberger said Friday that U.S. negotiators today will recommend to the commission that it not impose the sanctions. U.S. companies that will benefit from easier--and less costly--access to Japanese ports include California-based American President Cos. and Virginia-based CSX Corp.’s Sea Land subsidiary. Separately, the European Union has filed a complaint against Japan for its port practices with the World Trade Organization.