Union Calendar No. 156

104TH CONGRESS

1ST SESSION H. R. 2149

[Report No. 104–303]

A BILL

To reduce regulation, promote efficiencies, and enfor other purposes. eliminate the Federal Maritime Commission, and transportation system of the United States, to courage competition in the international ocean

NOVEMBER 1, 1995

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed
IB

Union Calendar No. 156

104TH CONGRESS

1ST SESSION H. R. 2149

[Report No. 104–303]

To reduce regulation, promote efficiencies, and encourage competition in the

international ocean transportation system of the United States, to eliminate the Federal Maritime Commission, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 1, 1995

Mr. SHUSTER (for himself, Mr. MINETA, Mr. COBLE, Mr. TRAFICANT, and

Mr. OBERSTAR) introduced the following bill; which was referred to the

Committee on Transportation and Infrastructure

NOVEMBER 1, 1995

Committed to the Committee of the Whole House on the State of the Union

and ordered to be printed

A BILL

To reduce regulation, promote efficiencies, and encourage

competition in the international ocean transportation system of the United States, to eliminate the Federal Maritime Commission, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Ocean Shipping Re3 form Act of 1995’’.

4 TITLE I—OCEAN SHIPPING

5 REFORM

6 SEC. 101. PURPOSES.

7 Section 2 of the Shipping Act of 1984 (46 App.

8 U.S.C. 1701) is amended—

9 (1) by striking ‘‘and’’ at the end of paragraph

10 (2);

11 (2) by striking the period at the end of para12 graph (3) and inserting ‘‘; and’’; and

13 (3) by adding a new paragraph (4) to read as

14 follows:

15 ‘‘(4) to permit carriers and shippers to develop

16 transportation arrangements to meet their specific

17 needs.’’.

18 SEC. 102. DEFINITIONS.

19 Section 3 of the Shipping Act of 1984 (46 App.

20 U.S.C. 1702) is amended—

21 (1) effective on January 1, 1997—

22 (A) by striking paragraph (9); and

23 (B) by redesignating the remaining para24 graphs accordingly;

25 (2) effective on June 1, 1997—

26 (A) by striking paragraph (4);
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1 (B) in paragraph (7), by striking ‘‘a com2 mon tariff;’’ and inserting ‘‘a common schedule

3 of transportation rates;’’;

4 (C) by striking paragraph (10) (as redesig5 nated by paragraph (1) of this section);

6 (D) by striking paragraph (13) (as redesig7 nated by paragraph (1) of this section);

8 (E) by striking paragraph (16) (as redesig9 nated by paragraph (1) of this section);

10 (F) by amending paragraph (18) (as redes11 ignated by paragraph (1) of this section) to

12 read as follows:

13 ‘‘(18) ‘ocean freight forwarder’ means a person

14 that—

15 ‘‘(A)(i) in the United States, dispatches

16 shipments from the United States via a com17 mon carrier and books or otherwise arranges

18 space for those shipments on behalf of shippers;

19 or

20 ‘‘(ii) processes the documentation or per21 forms related activities incident to those ship22 ments; or

23 ‘‘(B) acts as a common carrier that does

24 not operate the vessels by which the ocean

25 transportation is provided, and is a shipper in
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1 its relationship with an ocean common car2 rier.’’;

3 (G) by striking paragraph (20) (as redesig4 nated by paragraph (1) of this section);

5 (H) in paragraph (22) (as redesignated by

6 paragraph (1) of this section)—

7 (i) by striking ‘‘or’’ the second time it

8 appears and inserting a comma; and

9 (ii) by striking the period and insert10 ing ‘‘, a shippers’ association, or an ocean

11 freight forwarder that accepts responsibil12 ity for payment of the ocean freight.’’;

13 (I) by amending paragraph (23) (as redes14 ignated by paragraph (1) of this section) to

15 read as follows:

16 ‘‘(23) ‘shippers’ association’ means a group of

17 shippers that consolidates or distributes freight, on

18 a nonprofit basis for the members of the group in

19 order to secure carload, truckload, or other volume

20 rates or ocean transportation contracts.’’; and

21 (J) by inserting after paragraph (18) the

22 following new paragraph:

23 ‘‘(19) ‘ocean transportation contract’ means a

24 contract in writing separate from the bill of lading

25 or receipt between 1 or more common carriers or a
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1 conference and 1 or more shippers to provide speci2 fied services under specified rates and conditions.’’.

3 SEC. 103. AGREEMENTS WITHIN THE SCOPE OF THE ACT.

4 Section 4(a) of the Shipping Act of 1984 (46 App.

5 U.S.C. 1703(a)) is amended, effective on June 1, 1997—

6 (1) in paragraph (5), by striking ‘‘non-vessel7 operating common carriers’’ and inserting ‘‘ocean

8 freight forwarders’’; and

9 (2) by amending paragraph (7) to read as

10 follows:

11 ‘‘(7) discuss any matter related to ocean trans12 portation contracts, and enter ocean transportation

13 contracts and agreements related to those con14 tracts.’’.

15 SEC. 104. AGREEMENTS.

16 Section 5 of the Shipping Act of 1984 (46 App.

17 U.S.C. 1704) is amended—

18 (1) effective on January 1, 1997—

19 (A) in subsection (b)(4), by striking ‘‘at

20 the request of any member, require an inde21 pendent neutral body to police fully’’ and in22 serting ‘‘state the provisions, if any, for the po23 licing of’’;

24 (B) in subsection (b)(7), by striking ‘‘and’’

25 at the end;
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1 (C) in subsection (b)(8), by striking the

2 period and inserting ‘‘; and’’; and

3 (D) by adding at the end of subsection (b)

4 the following new paragraph:

5 ‘‘(9) provide that a member of the conference

6 may enter individual and independent negotiations

7 and may conclude individual and independent service

8 contracts under section 8 of this Act.’’;

9 (2) effective on June 1, 1997—

10 (A) by amending subsection (b)(8) to read

11 as follows:

12 ‘‘(8) provide that any member of the conference

13 may take independent action on any rate or service

14 item agreed upon by the conference for transpor15 tation provided under section 8(a) of this Act upon

16 not more than 3 business days’ notice to the con17 ference, and that the conference will provide the new

18 rate or service item for use by that member, effec19 tive no later than 3 business days after receipt of

20 that notice, and by any other member that notifies

21 the conference that it elects to adopt the independ22 ent rate or service item on or after its effective date,

23 in lieu of the existing conference provision for that

24 rate or service item;’’; and
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1 (B) by adding the following new paragraph

2 to read as follows:

3 ‘‘(10) prohibit the conference from—

4 ‘‘(A) prohibiting or restricting the mem5 bers of the conference from engaging in individ6 ual negotiations for ocean transportation con7 tracts under section 8(b) with 1 or more ship8 pers; and

9 ‘‘(B) issuing mandatory rules or require10 ments affecting ocean transportation contracts

11 that may be entered by 1 or more members of

12 the conference, except that a conference may

13 require that a member of the conference dis14 close the existence of an existing individual

15 ocean transportation contract or negotiations on

16 an ocean transportation contract, when the con17 ference enters negotiations on an ocean trans18 portation contract with the same shipper.’’;

19 (C) in subsection (e), by striking ‘‘carrier

20 that are required to be set forth in a tariff,’’

21 and inserting ‘‘carrier,’’; and

22 (D) in subsection (b)(9), by striking ‘‘serv23 ice’’ and inserting ‘‘ocean transportation’’.
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1 SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

2 Section 7 of the Shipping Act of 1984 (46 App.

3 U.S.C. 1706) is amended—

4 (1) by amending subsection (a)(6) to read as

5 follows:

6 ‘‘(6) subject to section 20(e)(2) of this Act, any

7 agreement, modification, or cancellation, in effect be8 fore the effective date of this Act and any tariff,

9 rate, fare, charge, classification, rule, or regulation

10 explanatory thereof implementing that agreement,

11 modification, or cancellation.’’; and

12 (2) in subsection (c)(1), by striking ‘‘agency’’

13 and inserting ‘‘agency, department,’’.

14 SEC. 106. COMMON AND CONTRACT CARRIAGE.

15 (a) IN GENERAL.—Effective on June 1, 1997—

16 (1) section 8a of the Shipping Act of 1984 (46

17 App. U.S.C. 1707a) is repealed; and

18 (2) section 8 of the Shipping Act of 1984 (46

19 App. U.S.C. 1707) is amended to read as follows:

20 ‘‘SEC. 8. COMMON AND CONTRACT CARRIAGE.

21 ‘‘(a) COMMON CARRIAGE.—

22 ‘‘(1) A common carrier and a conference shall

23 make available a schedule of transportation rates

24 which shall include the rates, terms, and conditions

25 for transportation services not governed by an ocean

26 transportation contract, and shall provide the sched-
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1 ule of transportation rates, in writing, upon the re2 quest of any person. A common carrier and a con3 ference may assess a reasonable charge for comply4 ing with a request for a rate, term, and condition,

5 except that the charge may not exceed the cost of

6 providing the information requested.

7 ‘‘(2) A dispute between a common carrier or

8 conference and a person as to the applicability of the

9 rates, terms, and conditions for ocean transportation

10 services shall be decided in an appropriate State or

11 Federal court of competent jurisdiction, unless the

12 parties otherwise agree.

13 ‘‘(3) A claim concerning a rate for ocean trans14 portation services which involves false billing, false

15 classification, false weighing, false report of weight,

16 or false measurement shall be decided in an appro17 priate State or Federal court of competent jurisdic18 tion, unless the parties otherwise agree.

19 ‘‘(b) CONTRACT CARRIAGE.—

20 ‘‘(1) 1 or more common carriers or a conference

21 may enter into an ocean transportation contract

22 with 1 or more shippers. A common carrier may

23 enter into ocean transportation contracts without

24 limitations concerning the number of ocean trans25 portation contracts or the amount of cargo or space
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1 involved. The status of a common carrier as an

2 ocean common carrier is not affected by the number

3 or terms of ocean transportation contracts entered.

4 ‘‘(2) A party to an ocean transportation con5 tract entered under this section shall have no duty

6 in connection with services provided under the con7 tract other than the duties specified by the terms of

8 the contract.

9 ‘‘(3)(A) An ocean transportation contract or the

10 transportation provided under that contract may not

11 be challenged in any court on the grounds that the

12 contract violates a provision of this Act.

13 ‘‘(B) The exclusive remedy for an alleged

14 breach of an ocean transportation contract is an ac15 tion in an appropriate State or Federal court of

16 competent jurisdiction, unless the parties otherwise

17 agree.’’.

18 (b) CONFIDENTIALITY OF CONTRACTS.—Effective on

19 January 1, 1998, section 8(b) of the Shipping Act of 1984

20 (46 App. U.S.C. 1707(b)), as amended by subsection (a)

21 of this section, is amended by adding at the end the

22 following:

23 ‘‘(4) A contract entered under this section may

24 be made on a confidential basis, upon agreement of

25 the parties. An ocean common carrier that is a
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1 member of a conference agreement may not be pro2 hibited or restricted from agreeing with 1 or more

3 shippers that the parties to the contract will not dis4 close the rates, services, terms, or conditions of that

5 contract to any other member of the agreement, to

6 the conference, to any other carrier, shipper, con7 ference, or to any other third party.’’.

8 SEC. 107. PROHIBITED ACTS.

9 Section 10 of the Shipping Act of 1984 (46 App.

10 U.S.C. 1709) is amended—

11 (1) effective on January 1, 1997, by amending

12 subsection (b)—

13 (A) by amending paragraph (1) to read as

14 follows:

15 ‘‘(1) except for service contracts, subject a per16 son, place, port, or shipper to unreasonable discrimi17 nation;’’; and

18 (B) by repealing paragraphs (2), (3), (4),

19 and (8);

20 (2) effective on June 1, 1997, by amending

21 subsection (b) to read as follows:

22 ‘‘(b) COMMON CARRIERS.—No common carrier, ei23 ther alone or in conjunction with any other person, directly

24 or indirectly, may—
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1 ‘‘(1) except for ocean transportation contracts,

2 subject a person, place, port, or shipper to unreason3 able discrimination;

4 ‘‘(2) retaliate against any shipper by refusing,

5 or threatening to refuse, cargo space accommoda6 tions when available, or resort to other unfair or un7 justly discriminatory methods because the shipper

8 has patronized another carrier or has filed a com9 plaint, or for any other reason;

10 ‘‘(3) employ any fighting ship;

11 ‘‘(4) subject any particular person, locality,

12 class, or type of shipper or description of traffic to

13 an unreasonable refusal to deal;

14 ‘‘(5) refuse to negotiate with a shippers’ asso15 ciation;

16 ‘‘(6) knowingly and willfully accept cargo from

17 or transport cargo for the account of an ocean

18 freight forwarder that does not have a bond, insur19 ance, or other surety as required by section 19;

20 ‘‘(7) knowingly and willfully enter into an ocean

21 transportation contract with an ocean freight for22 warder or in which an ocean freight forwarder is

23 listed as an affiliate that does not have a bond, in24 surance, or other surety as required by section 19;

25 or
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1 ‘‘(8)(A) knowingly disclose, offer, solicit, or re2 ceive any information concerning the nature, kind,

3 quantity, destination, consignee, or routing of any

4 property tendered or delivered to a common carrier

5 without the consent of the shipper or consignee if

6 that information—

7 ‘‘(i) may be used to the detriment or preju8 dice of the shipper or consignee;

9 ‘‘(ii) may improperly disclose its business

10 transaction to a competitor; or

11 ‘‘(iii) may be used to the detriment or prej12 udice of any common carrier;

13 except that nothing in paragraph (8) shall be con14 strued to prevent providing the information, in re15 sponse to legal process, to the United States, or to

16 an independent neutral body operating within the

17 scope of its authority to fulfill the policing obliga18 tions of the parties to an agreement effective under

19 this Act. Nor shall it be prohibited for any ocean

20 common carrier that is a party to a conference

21 agreement approved under this Act, or any receiver,

22 trustee, lessee, agent, or employee of that carrier, or

23 any other person authorized by that carrier to re24 ceive information, to give information to the con25 ference or any person, firm, corporation, or agency
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1 designated by the conference or to prevent the con2 ference or its designee from soliciting or receiving

3 information for the purpose of determining whether

4 a shipper or consignee has breached an agreement

5 with a conference or for the purpose of determining

6 whether a member of the conference has breached

7 the conference agreement or for the purpose of com8 piling statistics of cargo movement, but the use of

9 that information for any other purpose prohibited by

10 this Act or any other Act is prohibited; and

11 ‘‘(B) after December 31, 1997, the rates, serv12 ices, terms, and conditions of an ocean transpor13 tation contract may not be disclosed under this

14 paragraph if the contract has been made on a con15 fidential basis under section 8(b) of this Act.

16 The exclusive remedy for a disclosure under this para17 graph shall be an action for breach of contract as provided

18 in section 8(b)(3) of this Act.’’;

19 (3) effective on June 1, 1997—

20 (A) in subsection (c)(5), by inserting ‘‘as

21 defined in section 3(14)(A) of this Act’’ after

22 ‘‘freight forwarder’’; and

23 (B) in subsection (c)(6), by striking ‘‘a

24 service contract.’’ and inserting ‘‘an ocean

25 transportation contract.’’;
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1 (4) effective on June 1, 1997, in subsection

2 (d)(3), by striking ‘‘(b) (11), (12), and (16)’’ and in3 serting ‘‘(b) (1), (4), and (8)’’; and

4 (5) effective on June 1, 1997, by adding a new

5 subsection (f) to read as follows:

6 ‘‘(f) CONFERENCE ACTION.—No conference may sub7 ject a person, place, port, class or type of shipper, or ocean

8 freight forwarder, to unjust or unreasonable ocean con9 tract provisions.’’.

10 SEC. 108. REPARATIONS.

11 Effective June 1, 1997, section 11(g) of the Shipping

12 Act of 1984 (46 App. U.S.C. 1710(g)) is amended—

13 (1) by inserting ‘‘or counter-complainant’’ after

14 ‘‘complainant’’ the second time it appears;

15 (2) by striking ‘‘10(b) (5) or (7)’’ and inserting

16 ‘‘10(b) (2) or (3)’’; and

17 (3) by striking the last sentence.

18 SEC. 109. FOREIGN LAWS AND PRACTICES.

19 Section 10002 of the Foreign Shipping Practices Act

20 of 1988 (46 App. U.S.C. 1710a) is amended, effective on

21 June 1, 1997—

22 (1) in subsection (a)(1)—

23 (A) by striking ‘‘non-vessel-operating com24 mon carrier,’’; and
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1 (B) by inserting ‘‘ocean freight forwarder,’’

2 after ‘‘ocean common carrier,’’;

3 (2) in subsection (a)(4), by striking ‘‘non-ves4 sel-operating common carrier operations,’’;

5 (3) in subsection (e)(1), by striking subpara6 graph (B) and all that follows through subparagraph

7 (D) and inserting the following:

8 ‘‘(B) suspension, in whole or in part, of the

9 right of an ocean common carrier to operate

10 under any agreement filed with the Secretary,

11 including agreements authorizing preferential

12 treatment at terminals, preferential terminal

13 leases, space chartering, or pooling of cargo or

14 revenues with other ocean common carriers; and

15 ‘‘(C) a fee, not to exceed $1,000,000 per

16 voyage.’’; and

17 (4) in subsection (h), by striking ‘‘section

18 13(b)(5) of the Shipping Act of 1984 (46 App.

19 U.S.C. 1712(b)(5))’’ and inserting ‘‘section 13(b)(2)

20 of the Shipping Act of 1984 (46 App. U.S.C.

21 1712(b)(2))’’.

22 SEC. 110. PENALTIES.

23 Section 13 of the Shipping Act of 1984 (46 App.

24 U.S.C. 1712) is amended, effective on June 1, 1997—

25 (1) in subsection (b)—
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1 (A) by striking paragraphs (1) and (3) and

2 redesignating paragraphs (2), (4), (5), and (6)

3 in order as paragraphs (1), (2), (3), and (4);

4 (B) by striking paragraph (1), as so redes5 ignated, and inserting the following:

6 ‘‘(1) If the Secretary finds, after notice and an

7 opportunity for a hearing, that a common carrier

8 has failed to supply information ordered to be pro9 duced or compelled by subpoena under section 1711

10 of this Act, the Secretary may request that the Sec11 retary of the Treasury refuse or revoke any clear12 ance required for a vessel operated by that common

13 carrier. Upon request by the Secretary, the Sec14 retary of the Treasury shall, with respect to the ves15 sel concerned, refuse or revoke any clearance re16 quired by section 4197 of the Revised Statutes of

17 the United States (46 App. U.S.C. 91).’’; and

18 (C) in paragraph (3), as so redesignated,

19 by striking ‘‘finds appropriate,’’ and all that

20 follows through the end of the paragraph and

21 inserting ‘‘finds appropriate including the impo22 sition of the penalties authorized under para23 graph (2).’’;
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1 (2) in subsection (f)(1), by striking ‘‘section 10

2 (a)(1), (b)(1), or (b)(4)’’ and inserting ‘‘section

3 10(a)(1)’’.

4 SEC. 111. REPORTS.

5 (a) IN GENERAL.—Section 15 of the Shipping Act

6 of 1984 (46 App. U.S.C. 1714) is amended, effective on

7 January 1, 1997—

8 (1) in the section heading by striking ‘‘AND

9 CERTIFICATES’’;

10 (2) by striking ‘‘(a) REPORTS.—’’; and

11 (3) by striking subsection (b).’’.

12 (b) CLERICAL AMENDMENT.—The Shipping Act of

13 1984 (46 App. U.S.C. 1701 et seq.) is amended in the

14 first section in the table of contents by amending the item

15 relating to section 15 to read as follows:

‘‘Sec. 15. Reports.’’.

16 SEC. 112. REGULATIONS.

17 Section 17 of the Shipping Act of 1984 (46 App.

18 U.S.C. 1716) is amended—

19 (1) by striking ‘‘(a)’’; and

20 (2) by striking subsection (b).’’.

21 SEC. 113. REPEAL.

22 Section 18 of the Shipping Act of 1984 (46 App.

23 U.S.C. 1717) is repealed.
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1 SEC. 114. OCEAN FREIGHT FORWARDERS.

2 Section 19 of the Shipping Act of 1984 (46 App.

3 U.S.C. 1718) is amended, effective on June 1, 1997—

4 (1) in subsection (a), by inserting ‘‘in the

5 United States’’ after ‘‘person’’ the first time it ap6 pears;

7 (2) in subsection (a)(2), by striking ‘‘a bond’’

8 and inserting ‘‘a bond, proof of insurance, or other

9 surety’’;

10 (3) by adding after subsection (a)(2) the

11 following:

12 ‘‘A bond, insurance, or other surety obtained pursuant to

13 this section shall be available to pay any judgment for

14 damages against an ocean freight forwarder arising from

15 its transportation-related activities under this Act or order

16 for reparation issued pursuant to section 11 or 14 of this

17 Act. An ocean freight forwarder not domiciled in the

18 United States shall designate a resident agent in the

19 United States for receipt of service of judicial and admin20 istrative process, including subpoenas.’’;

21 (4) in subsection (b), by striking ‘‘a bond’’ and

22 inserting ‘‘a bond, proof of insurance, or other sur23 ety’’; and

24 (5) in subsection (d), by striking paragraph (3)

25 and redesignating paragraph (4) as paragraph (3).’’.
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1 SEC. 115. EFFECTS ON CERTAIN AGREEMENTS AND CON2 TRACTS.

3 Section 20(e) of the Shipping Act of 1984 (46 App.

4 U.S.C. 1719) is amended to read as follows:

5 ‘‘(e) SAVINGS PROVISIONS.—

6 ‘‘(1) Each service contract entered into by a

7 shipper and an ocean common carrier or conference

8 before the date of the enactment of the Ocean Ship9 ping Reform Act of 1995 may remain in full force

10 and effect according to its terms.

11 ‘‘(2) This Act and the amendments made by

12 this Act shall not affect any suit—

13 ‘‘(A) filed before the date of the enactment

14 of the Ocean Shipping Reform Act of 1995;

15 ‘‘(B) with respect to claims arising out of

16 conduct engaged in before the date of the en17 actment of the Ocean Shipping Reform Act of

18 1995, filed within 1 year after the date of the

19 enactment of the Ocean Shipping Reform Act

20 of 1995;

21 ‘‘(C) with respect to claims arising out of

22 conduct engaged in after the date of the enact23 ment of the Ocean Shipping Reform Act of

24 1995 but before January 1, 1997, pertaining to

25 a violation of section 10(b) (1), (2), (3), (4), or
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1 (8), as in effect before January 1, 1997, filed

2 by June 1, 1997;

3 ‘‘(D) with respect to claims pertaining to

4 the failure of a common carrier or conference to

5 file its tariffs or service contracts in accordance

6 with this Act in the period beginning January

7 1, 1997, and ending June 1, 1997, filed by De8 cember 31, 1997; or

9 ‘‘(E) with respect to claims arising out of

10 conduct engaged in on or after the date of the

11 enactment of the Ocean Shipping Reform Act

12 of 1995 but before June 1, 1997, filed by De13 cember 31, 1997.’’.

14 SEC. 116. REPEAL.

15 Section 23 of the Shipping Act of 1984 (46 App.

16 U.S.C. 1721) is repealed, effective on June 1, 1997.

17 SEC. 117. MARINE TERMINAL OPERATOR SCHEDULES.

18 (a) IN GENERAL.—The Shipping Act of 1984 (46

19 App. U.S.C. 1701 et seq.) is amended, effective on June

20 1, 1997, by adding at the end the following new section:

21 ‘‘SEC. 24. MARINE TERMINAL OPERATOR SCHEDULES.

22 ‘‘A marine terminal operator shall make available to

23 the public a schedule of rates, regulations, and practices,

24 including limitations of liability, pertaining to receiving,

25 delivering, handling, or storing property at its marine ter-
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1 minal. The schedule shall be enforceable as an implied

2 contract, without proof of actual knowledge of its provi3 sions, for any activity by the marine terminal operator

4 that is taken to—

5 ‘‘(1) efficiently transfer property between trans6 portation modes;

7 ‘‘(2) protect property from damage or loss;

8 ‘‘(3) comply with any governmental require9 ment; or

10 ‘‘(4) store property in excess of the terms of

11 any other contract or agreement, if any, entered into

12 by the marine terminal operator.’’.

13 (b) CLERICAL AMENDMENT.—The Shipping Act of

14 1984 (46 App. U.S.C. 1701 et seq.) is amended in the

15 first section in the table of contents by adding at the end

16 the following new item:

‘‘Sec. 24. Marine terminal operator schedules.’’.

17 TITLE II—CONTROLLED

18 CARRIERS AMENDMENTS

19 SEC. 201. CONTROLLED CARRIERS.

20 Section 9 of the Shipping Act of 1984 (46 App.

21 U.S.C. 1708) is amended, effective on June 1, 1997—

22 (1) in subsection (a), by striking ‘‘in its tariffs

23 or service contracts filed with the Commission’’ and

24 ‘‘in those tariffs or service contracts’’ in the first
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1 sentence, and by striking ‘‘filed by a controlled car2 rier’’ in the last sentence;

3 (2) in subsection (b), by striking ‘‘filed’’ and in4 serting ‘‘published’’, in paragraphs (1) and (2);

5 (3) in subsection (c), by striking the first sen6 tence;

7 (4) subsection (d) is amended to read as fol8 lows:

9 ‘‘(d) Within 120 days of the receipt of information

10 requested by the Secretary under this section, the Sec11 retary shall determine whether the rates, charges, classi12 fications, rules, or regulations of a controlled carrier may

13 be unjust and unreasonable. If so, the Secretary shall

14 issue an order to the controlled carrier to show cause why

15 those rates, charges, classifications, rules, or regulations

16 should not be approved. Pending a determination, the Sec17 retary may suspend the rates, charges, classifications,

18 rules, or regulations at any time. No period of suspension

19 may be greater than 180 days. Whenever the Secretary

20 has suspended any rates, charges, classifications, rules, or

21 regulations under this subsection, the affected carrier may

22 publish and, after notification to the Secretary, assess new

23 rates, charges, classifications, rules, or regulations—ex24 cept that the Secretary may reject the new rates, charges,
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1 classifications, rules, or regulations if the Secretary deter2 mines that they are unreasonable.’’;

3 (5) in subsection (f), by striking ‘‘This’’ and in4 serting ‘‘Subject to subsection (g), this’’; and

5 (6) by adding at the end the following new sub6 sections:

7 ‘‘(g) The rate standards, information submissions,

8 remedies, reviews, and penalties in this section shall also

9 apply to ocean common carriers that are not controlled,

10 but who have been determined by the Secretary to be

11 structurally or financially affiliated with nontransporta12 tion entities or organizations (government or private) in

13 such a way as to affect their pricing or marketplace behav14 ior in an unfair, predatory, or anticompetitive way that

15 disadvantages United States carriers. The Secretary may

16 make such determinations upon request of any person or

17 upon the Secretary’s own motion, after conducting an in18 vestigation and a public hearing.

19 ‘‘(h) The Secretary shall issue regulations by June

20 1, 1997, that prescribe periodic price and other informa21 tion to be submitted by controlled carriers and carriers

22 subject to determinations made under subsection (g) that

23 would be needed to determine whether prices charged by

24 these carriers are unfair, predatory, or anticompetitive.’’.
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1 SEC. 202. NEGOTIATING STRATEGY TO REDUCE GOVERN2 MENT OWNERSHIP AND CONTROL OF COM3 MON CARRIERS.

4 Not later than January 1, 1997, the Secretary of

5 Transportation shall develop, submit to Congress, and

6 begin implementing a negotiation strategy to persuade for7 eign governments to divest themselves of ownership and

8 control of ocean common carriers (as that term is defined

9 in section 3(18) of the Shipping Act of 1984 (46 App.

10 U.S.C. 1702).

11 TITLE III—ELIMINATION OF THE

12 FEDERAL MARITIME COMMIS13 SION

14 SEC. 301. PLAN FOR AGENCY TERMINATION.

15 (a) No later than 30 days after enactment of this Act,

16 the Director of the Office of Management and Budget, in

17 consultation with the Secretary of Transportation, shall

18 submit to Congress a plan to eliminate the Federal Mari19 time Commission no later than October 1, 1997. The plan

20 shall include a timetable for the transfer of remaining

21 functions to the Federal Maritime Commission to the Sec22 retary of Transportation, beginning as soon as feasible in

23 fiscal year 1996. The plan shall also address matters relat24 ed to personnel and other resources necessary for the Sec25 retary of Transportation to perform the remaining func26 tions of the Federal Maritime Commission.
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1 (b) The Director of the Office of Management and

2 Budget shall implement the plan to eliminate the Federal

3 Maritime Commission, beginning as soon as feasible in fis4 cal year 1996.

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