What is a Negotiated Rate Arrangement (NRA)?
A Negotiated Rate Arrangement (NRA) is a written agreement between a shipper and a Non-Vessel Operating Common Carrier (NVOCC) that outlines specific rates, terms, and conditions for the transportation of cargo. NRAs allow NVOCCs to offer customized, one-on-one pricing without filing public tariffs with the Federal Maritime Commission (FMC).
NRAs were introduced by the FMC in 2011 to provide more flexibility and reduce the administrative burden of maintaining and publishing tariffs for each individual rate.
Key Features of an NRA
- Applies only to NVOCCs licensed by or registered with the Federal Maritime Commission (FMC)
- Must be agreed to in writing before cargo is received or transported
- Includes all essential terms: commodity, rate, origin/destination, and service level
- Not subject to public tariff filing, but must be retained for 5 years for FMC audit purposes
- Cannot be modified after acceptance, but a new NRA can be issued for revised terms
Benefits of an NRA
- Simplifies rate setting for NVOCCs and shippers
- Offers greater confidentiality compared to public tariffs
- Reduces compliance paperwork and streamlines booking
Example in Practice
A U.S.-based NVOCC agrees to move a shipment of electronics from Los Angeles to Tokyo for a fixed rate. The shipper signs a Negotiated Rate Arrangement, locking in pricing and service terms without the need for a published tariff.