Background

Applicant is authorized to operate as a vessel common carrier (VCC) to transport freight between the Port of Los Angeles and Catalina Island. Current tariff rates filed with the Commission were authorized by D.91-05-053 pursuant to Public Utilities (Pub. Util.) Code § 454. Applicant requests authority to establish a ZORF of 30% above and 20% below the rates published in its tariff, CA PUC No. 2, Local Freight Tariff 1.

Applicant states that it provides transportation across a full spectrum of freight services. It claims that it competes with several other VCCs in this market, namely, Sylvester Tugs, Catalina Channel Express, Inc., and Red and White Cruises. It cites Catalina Flying Boats, an airfreight carrier, as another competitor. Applicant also refers to the competitive services offered by Island Express, but it does not say whether this is a vessel or air carrier.

Applicant notes that the Commission previously granted a ZORF to Catalina Channel Express, Inc. (Express). It states that it needs the rate flexibility that a ZORF would provide in order to compete.