Ocean Transportation

Ocean Transportation Corporation: Facilitating Trade Relations with Europe

Founded in the early 20th century, Ocean Transportation Corporation has played a pivotal role in fostering trade relations between the United States and Europe. Established in October 1914 by Julio L. Forbes and William F. Vidal, the company has been a significant player in the maritime industry for over a century. The corporation was incorporated in May 1915, with Vidal serving as president and Forbes as vice-president and general manager. Through their leadership, Ocean Transportation Corporation has effectively connected American shippers with key European markets, particularly in Spain, Portugal, and Italy.

Establishing a Strong Maritime Network

Ocean Transportation Corporation's operational strategy includes providing direct shipping services from New York to critical European ports such as Lisbon, Cadiz, Barcelona, and Genoa. The company issues through bills of lading to all Spanish, Portuguese, and Italian ports, ensuring a seamless transportation process for American exporters. By establishing agencies in all principal ports of Spain, Portugal, and Italy, the corporation has built a robust network that supports efficient trade operations.

During wartime, when trade restrictions were rampant, the Ocean Transportation Corporation managed to maintain a relatively regular service, deploying at least one ship monthly. This consistency underscores the company's commitment to supporting U.S. trade interests even in challenging circumstances.

Europe's Increasing Demand for American Products

In recent years, Spain and Portugal have shown a growing appetite for American products, paving the way for mutually beneficial trade relationships. Spain, with its extensive commercial ties to the United States, exports a variety of goods, including olive oil, olives, raisins, wines, fruits, nuts, iron, coal, copper, and lead. Portugal mirrors Spain's product offerings and is equally involved in international trade.

Italy, a long-standing importer of American goods, faced service disruptions during the war period but resumed trade with Ocean Transportation Corporation once hostilities ceased. The company’s ability to adapt and continue operations post-conflict has reinforced its importance in the transatlantic trade corridor.

Navigating the Complexities of Ocean Transportation

The modern landscape of ocean transportation is fraught with regulatory challenges and competitive disparities. Ocean carriers are treating European forwarders differently than their U.S. counterparts, creating a competitive disadvantage for U.S. ocean forwarders, Non-Vessel-Operating Common Carriers (NVOCCs), and customs brokers. These carriers provide beneficial sell rates exclusively to European forwarders, allowing them to dispatch cargo based on lump sum rates formulated from these preferential sell rates.

While the U.S. regulatory framework for ocean transportation intermediaries is impacted by such practices, European forwarders often operate without licensing or registration with the Federal Maritime Commission (FMC) as NVOCCs. This enables them to circumvent certain regulatory requirements and continue to offer competitive rates in U.S. trade lanes.

"The commercial practice of forwarders being offered rates by ocean carriers has ceased in the U.S. but is still prevalent in Europe and elsewhere."

U.S. forwarders and NVOCCs must remain vigilant, ensuring compliance with U.S. shipping laws and regulations when arranging transportation with these European entities. The historical precedent in U.S. courts, which excuses shippers from double payment if they have already paid a forwarder who fails to remit freight monies to the ocean carrier, still stands. However, it highlights the complexities and potential pitfalls in navigating international shipping agreements.

Enhancing Trade Relations and Industry Insight

Ocean Transportation Corporation's commitment to enhancing trade relations is complemented by its involvement in freight forwarding, imports, NVOCCs, and international trade. The corporation aims to increase visibility and provide actionable analytics for its clients, ensuring they remain informed and competitive in the global marketplace.

Content related to exports, freight forwarding, imports, and maritime activities has been published by Husch Blackwell LLP on JD Supra, LLC, contributing to the broader discourse on international trade and maritime law.

Despite the challenges posed by uneven playing fields and regulatory discrepancies, Ocean Transportation Corporation continues to facilitate trade relations with Europe, contributing to a dynamic and interconnected global economy.

  • Founded in 1914 by Julio L. Forbes and William F. Vidal.
  • Provides direct service from New York to Lisbon, Cadiz, Barcelona, and Genoa.
  • Issues through bills of lading to all principal ports in Spain, Portugal, and Italy.
  • Maintained regular service during wartime, highlighting operational resilience.
  • Facilitates trade amidst growing demand for American products in Europe.
  • Navigates complex regulatory landscapes impacting U.S. forwarders and NVOCCs.

As the maritime industry continues to evolve, Ocean Transportation Corporation remains a steadfast partner for American exporters looking to expand their reach into European markets. Through strategic operations and a commitment to overcoming industry challenges, the corporation is poised to continue its legacy of facilitating robust trade relations with Europe.