Management Dynamics offers tariff publisher for NVOs

Management Dynamics offers tariff publisher for NVOs

Taking aim at the tariff publishing industry in the U.S., the ocean contact management software firm Management Dynamics Inc. has introduced a service to allow non-vessel operating common carriers to manage tariffs on their own, instead of using a third-party publisher.

Most NVOCCs use third party tariff publishers to maintain their official tariffs, which must be kept consistent with rates the NVOs are quoting to customers. Among the publishers in that sector are: Pacific Coast Tariff Bureau, Sumner Tariff Service, Global Maritime Transportation Services. Distribution Publications Inc. and Descartes. NVOs can face heavy fines from the Federal Maritime Commission for not keeping their tariffs up to date.

The Management Dynamics service takes aim at the relationship between NVO and the tariff publisher. According to James Preuninger, chief executive of Management Dynamics, the service can cut in half what NVOCCs spend to keep their tariffs updated in compliance with FMC Rules. It does this by essentially by cutting out the middleman -- the tariff publisher -- by giving NVOs a tool to do the job themselves. The service is an outgrowth of the firm's core Web-based ocean contract management service.

Tariff publishers sell their services both on the basis of maintaining NVOs tariffs, but also providing advice that is essential in keeping track of changing FMC rules and priorities. Many NVOs, especially smaller ones, rely on publishers for this latter purpose.

Two NVOs, TSC Container Freight and Ocean World Lines, were quoted in the firm's press release on Tuesday announcing the service, called NVOCC Tariff Publisher. "For years we have used third-party publishers to maintain our rate tariff, but as our business has grown, the costs of this service have become significant," said Alan Baer, president, Ocean World Lines, a subsidiary of Pacer International. "The NVOCC Tariff Publisher module offers an immediate payback by substantially reducing these costs and gives my organization more control over the management of our rate tariff."