What's happening
This bill prohibits the Port Authority from charging cargo facility fees at marine facilities unless mutually agreed upon by all parties.
Why it matters
Limits the Port Authority’s unilateral power to impose fees. By requiring written mutual agreement before any cargo facility charge can be assessed, the bill prevents the Port Authority from unilaterally imposing extra costs on shippers, carriers, and terminal operators, potentially leading to more predictable and negotiable fee structures.
Could lower costs for businesses and consumers. If cargo facility charges cannot be imposed without broad agreement, shipping costs through New York and New Jersey ports may decrease or stabilize, possibly resulting in lower prices for goods moved through the region.
Aims to increase transparency and negotiation in port operations. The requirement for mutual agreement encourages open negotiation and consensus among all parties using port facilities, which may lead to fairer, more transparent contracting practices and improved business relationships.
Depends on New Jersey enacting similar legislation. The bill’s effect is contingent on New Jersey passing an identical law, meaning its impact hinges on interstate cooperation and highlights the shared governance of the Port Authority by both states.
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Who cares
Headline styles
Limit Port Cargo Fees
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Reported and committed to finance
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Port Cargo Fees
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Michael Cusick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3710
2017-2018 Regular Sessions
IN SENATE
January 26, 2017
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the waterfront commission act, in relation to cargo facility charges by the Port Authority of New York and New Jersey
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1 of chapter 882 of the laws of 1953, constituting the waterfront commission act is amended by adding a new article VII-A to read as follows:
ARTICLE VII-A
CARGO FACILITY CHARGES
1. As used in this article:
(a) "Bill of lading" means a document evidencing the receipt of goods for shipment issued by a person engaged in the business of transporting or forwarding goods.
(b) "Cargo facility charge" means any fee applicable to cargo and cargo containers discharged from, or loaded onto, vessels at any marine facility owned or operated by the port authority.
(c) "Carrier" means a carrier as that term is defined in 49 U.S.C. s. 13102.
(d) "Container" means any receptacle, box, carton, or crate which is specifically designed and constructed so that it may be repeatedly used for the carriage of freight by an ocean common carrier.
(e) "Marine terminal operator" means any person, corporation, partnership, or any business organization which shall operate and maintain any of the marine terminals established, acquired, constructed, rehabilitated, or improved by the port authority by means of and through leasing
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08913-02-7
S. 3710 2
agreements entered into by any such person, corporation, partnership, or any business organization with the port authority.
(f) "Ocean common carrier" means an ocean common carrier as that term is defined in 46 U.S.C. s.40102.
(g) "Rail carrier" means a rail carrier as that term is defined in 49 U.S.C. s. 10102.
(h) "Tariff" means a marine terminal operator schedule as that term is defined in 46 C.F.R. 525.2.
(i) "User" means:
(1) any person, company, or other entity that is named as the shipper or consignee on the ocean common carrier bill of lading issued for export or import cargo, or any person owning or entitled to the possession, or having a past or future interest in, the export or import cargo;
(2) in the case of negotiable bills of lading, any other person, company, or other entity that is a bona fide holder of the bill of lading or who is entitled to receive delivery of export cargo or import cargo; or
(3) any other bailor of export or import cargo.
2. Notwithstanding any law, rule, regulation, or existing tariff to the contrary, the port authority shall not assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge on import and export cargo leaving any marine facility owned or operated by the port authority, except that the port authority may assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge upon written mutual agreement between the user, ocean common carrier, marine terminal operator, carrier, or rail carrier and the port authority.
§ 2. This act shall take effect upon the enactment into law by the state of New Jersey of legislation having an identical effect with this act, but if the state of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the waterfront commission shall notify the legislative bill drafting commission upon the occurrence of the enactment of the legislation provided for in section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the waterfront commission act, in relation to cargo facility charges by the Port Authority of New York and New Jersey
Purpose or general idea of bill
To limit the authority of the Port Authority of New York and New Jersey to unilaterally assess new cargo facility charge(s) on import and export cargo upon users, ocean common carriers marine terminal operators, carriers, or rail carriers, as defined in the bill, except upon mutual agreement.
Summary of specific provisions
Section 1 - adds a new ArticleVll-A, Cargo Facility Charges, to section 1 of Chapter 882 of the Laws of 1953. Within the new Article, Section 1 contains definitions, and provides that notwithstanding any law, rule, regulation or existing tariff to the contrary, the Port Authority shall not assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge on import and export cargo leaving any marine facility owned or operated by the Port Authority, except that the Port Authority may assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge upon written mutual agreement between the user, ocean common carrier, marine terminal operator, carrier, or rail carrier and the Port Authority.
Read the full memo (730 words)
Section 2 - provides that this act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.
Justification
It is critically important to the economic health of New York State that the New York port remain competitive with other ports around the country, and particularly along the east coast. In March of 2011, the Port Authority unilaterally imposed a cargo facility charge (CFC) of $4.95 per twenty foot equivalent unit on ocean carriers, in the mistaken belief that these charges could be spread through to other parties importing the goods and on through the supply chain. No other port in the country charges such a CFC charge. Unfortunately, the Port Authority of New York and New Jersey was already the most expensive port in the country to process a freight container, with costs now being approximately 18% higher than the next highest port at Long Beach, California. Ocean carriers have not been able to pass this new fee on because of the highly competitive nature of their industry. Unfortunately, the message of this tariff to ocean carriers is that they are not welcome, and that they will be more competitive bringing their cargo to another port. Cargo ships are by nature moving vessels that can choose where they want to take their cargoes, and you can be sure that if other ports make better economic sense, that is where these ships will dock.
Passage of this law would be a strong signal that New York State is in fact open for business and that we are serious about making New York State economically competitive again. PRIOR LEGISLATIVE HISTORY :
2015-16 - S.2648/A.2070 - RULES/CORPORATIONS/Corporations
Fiscal implications
None to the state.
Effective date
This act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.