I 

111TH CONGRESS 

2D SESSION H. R. 6167 

To amend title 46, United States Code, to require the Federal Maritime 

Commission to maintain an Office of Dispute Resolution and Customer 

Advocate, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2010 

Mr. OBERSTAR (for himself and Mr. CUMMINGS) introduced the following bill; 

which was referred to the Committee on Transportation and Infrastructure 

A BILL 

To amend title 46, United States Code, to require the Federal Maritime Commission to maintain an Office of Dispute Resolution and Customer Advocate, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Shipping Act of 2010’’. 

5 SEC. 2. REFERENCES. 

6 Except as otherwise expressly provided, whenever in 

7 this Act an amendment or repeal is expressed in terms 

8 of an amendment to, or repeal of, a section or other proviVerDate Mar 15 2010 06:03 Sep 23, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6167.IH H6167

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1 sion, the reference shall be considered to be made to a 

2 section or other provision of title 46, United States Code. 

3 SEC. 3. OFFICE OF DISPUTE RESOLUTION AND CUSTOMER 

4 ADVOCATE. 

5 (a) IN GENERAL.—Chapter 3 is amended by adding 

6 at the end the following new section: 

7 ‘‘§ 308. Office of Dispute Resolution and Customer 

8 Advocate 

9 ‘‘(a) IN GENERAL.—(1) The Commission shall main10 tain an Office of Dispute Resolution and Customer Advo11 cate that shall— 

12 ‘‘(A) mediate disputes between persons subject 

13 to the Commission’s jurisdiction; 

14 ‘‘(B) facilitate communication among persons 

15 subject to the Commission’s jurisdiction and their 

16 customers; and 

17 ‘‘(C) carry out other duties and powers pre18 scribed by the Commission. 

19 ‘‘(2) The confidentiality and neutrality provisions of 

20 the subchapter IV of chapter 5, United States Code, shall 

21 apply to those mediation and facilitation services. 

22 ‘‘(b) OMBUDSMAN.—The Chairman may designate an 

23 employee of the Commission to serve as an ombudsman 

24 of the Commission in matters of Commission interest, in25 cluding matters related to ocean transportation, mergers 


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1 and acquisitions, or any other matter designated by the 

2 Commission.’’. 

3 (b) CONFORMING AMENDMENT.—The analysis at the 

4 beginning of such chapter is amended by adding at the 

5 end the following new item: 

‘‘308. Office of Dispute Resolution and Customer Advocate.’’. 

6 SEC. 4. OCEAN SHIPPING ADVISORY COMMITTEE. 

7 (a) IN GENERAL.—Chapter 3 is further amended by 

8 adding at the end the following new section: 

9 ‘‘§ 309. Ocean Shipping Advisory Committee 

10 ‘‘(a) IN GENERAL.—The Commission shall establish 

11 an Ocean Shipping Advisory Committee. The Com12 mittee— 

13 ‘‘(1) may review proposed ocean shipping regu14 lations and policies of the Commission and make 

15 recommendations to the Commission that the Com16 mittee considers appropriate; 

17 ‘‘(2) may advise, consult with, report to, and, 

18 upon approval by at least all but one of the members 

19 then serving on the Committee, make recommenda20 tions to the Commission on matters relating to 

21 ocean shipping transportation by persons subject to 

22 this subtitle; 

23 ‘‘(3) may make available to Congress rec24 ommendations that the Committee makes to the 

25 Commission; 


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1 ‘‘(4) shall meet at the call of— 

2 ‘‘(A) the Chairman of the Commission, in 

3 consultation with the other Commissioners, who 

4 shall call such a meeting at least once during 

5 each calendar year; or 

6 ‘‘(B) a majority of the Committee; and 

7 ‘‘(5) shall not intervene in or seek to influence 

8 formal or informal adjudicatory or dispute resolution 

9 proceedings before the Commission. 

10 ‘‘(b) MEMBERSHIP.— 

11 ‘‘(1) IN GENERAL.—The Committee shall con12 sist of 18 members appointed by the Commission in 

13 accordance with this subsection, each of whom has 

14 at least 5 years practical experience in their respec15 tive ocean shipping operations. The term of each 

16 member shall be 5 years. Before filling a position on 

17 the Committee, the Commission shall publish a no18 tice in the Federal Register soliciting nominations 

19 for membership on the Committee. 

20 ‘‘(2) REPRESENTATIVES.—The membership of 

21 the Committee shall include— 

22 ‘‘(A) 6 representatives of ocean common 

23 carriers with representation to include those 

24 serving the east, west, gulf and Great Lakes 

25 coasts of the United States; 


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1 ‘‘(B) 3 representatives of nonvessel-oper2 ating common carriers; 

3 ‘‘(C) 3 representatives of ocean freight for4 warders; 

5 ‘‘(D) 3 representatives of shippers that im6 port goods into the United States, at least one 

7 of which must represent small shippers; and 

8 ‘‘(E) 3 representatives of shippers that ex9 port goods from the United States, at least one 

10 of which must represent small shippers. 

11 ‘‘(c) CHAIRMAN AND VICE CHAIRMAN.— 

12 ‘‘(1) IN GENERAL.—The Committee shall elect 

13 one of its members as the Chairman and one of its 

14 members as the Vice Chairman. The Vice Chairman 

15 shall act as Chairman in the absence or incapacity 

16 of the Chairman, or in the event of a vacancy in the 

17 office of the Chairman. 

18 ‘‘(2) DESIGNATION OF OBSERVER.—The Chair19 man of the Commission shall designate a representa20 tive to participate as an observer with the Com21 mittee. The individual so designated shall act as the 

22 executive secretary of the Committee and shall per23 form the duties set forth in section 10(c) of the Fed24 eral Advisory Committee Act (5 U.S.C. App.). 


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1 ‘‘(d) CONSIDERATION OF INFORMATION, ADVICE, 

2 AND RECOMMENDATIONS.—The Commission shall con3 sider the information, advice, and recommendations of the 

4 Committee in formulating policy regarding matters affect5 ing ocean commerce. 

6 ‘‘(e) COMPENSATION AND EXPENSES.— 

7 ‘‘(1) IN GENERAL.—A member of the Com8 mittee, when attending meetings of the Committee 

9 or when otherwise engaged in the business of the 

10 Committee, may receive— 

11 ‘‘(A) compensation at a rate fixed by the 

12 Chairman of the Commission, not exceeding the 

13 daily equivalent of the then current rate of 

14 basic pay in effect for Level 18 of the General 

15 Schedule under section 5332 of title 5, includ16 ing for travel time; and 

17 ‘‘(B) travel or transportation expenses 

18 under section 5703 of title 5. 

19 ‘‘(2) NOT AN OFFICER OR EMPLOYEE.—A mem20 ber of the Committee shall not be considered to be 

21 an officer or employee of the United States for any 

22 purpose based on their receipt of any payment under 

23 this subsection. 

24 ‘‘(f) TERMINATION.— 


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1 ‘‘(1) IN GENERAL.—Notwithstanding any provi2 sion of the Federal Advisory Committee Act (5 

3 U.S.C. App.), the Committee terminates on Sep4 tember 30, 2015. 

5 ‘‘(2) RECOMMENDATION REGARDING.—Two 

6 years before the termination date under paragraph 

7 (1), the Committee shall submit to Congress its rec8 ommendation regarding whether the Committee 

9 should be renewed and continued beyond the termi10 nation date.’’. 

11 (b) CONFORMING AMENDMENT.—The analysis at the 

12 beginning of such chapter is amended by adding at the 

13 end the following new item: 

‘‘309. Ocean Shipping Advisory Committee.’’. 

14 SEC. 5. PURPOSES OF REGULATION OF OCEAN SHIPPING. 

15 Section 40101(3) is amended to read as follows: 

16 ‘‘(3) to allow, to the maximum extent possible, 

17 competition and the demand for services to deter18 mine fair and efficient market rates and charges for 

19 transportation by common carriers; and’’. 

20 SEC. 6. AMENDMENTS TO DEFINITIONS FOR PART. 

21 (a) IN GENERAL.—Section 40102 is amended— 

22 (1) by striking paragraph (7); 

23 (2) by redesignating paragraphs (5) and (6) as 

24 paragraphs (6) and (7), respectively; 


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1 (3) by redesignating paragraphs (10) through 

2 (22) as paragraphs (12) through (24), respectively; 

3 (4) by redesignating paragraphs (23) through 

4 (25) as paragraphs (26) through (28), respectively; 

5 (5) by inserting after paragraph (4) the fol6 lowing: 

7 ‘‘(5) CAPACITY RATIONALIZATION.—The term 

8 ‘capacity rationalization’ means a concerted reduc9 tion, stabilization, withholding, or other limitation in 

10 any manner by ocean common carriers on the size 

11 or number of vessels or available space offered col12 lectively or individually to shippers in any trade or 

13 service.’’; 

14 (6) by striking ‘‘ocean’’ in paragraph (8); 

15 (7) by inserting after paragraph (9) the fol16 lowing: 

17 ‘‘(10) EFFICIENCY AND SERVICE-ENHANCING

18 AGREEMENT.—The term ‘efficiency and service-en19 hancing agreement’ means an agreement between 

20 ocean common carriers that— 

21 ‘‘(A) is likely to produce cognizable effi22 ciencies and improves the service and reliability 

23 that would be offered individually by each of its 

24 members in the absence of such agreement, 


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1 while maintaining adequate competition in a 

2 trade or service; and 

3 ‘‘(B) gives members of the agreement the 

4 right to withdraw from the agreement without 

5 financial or other penalty. 

6 ‘‘(11) EQUIPMENT PROVIDER.—The term 

7 ‘equipment provider’ means a person in the United 

8 States that rents or leases marine cargo containers, 

9 or chassis for marine cargo containers, to shippers 

10 or common carriers for use in or related to transpor11 tation by water of cargo between the United States 

12 and a foreign country.’’; 

13 (8) by amending paragraph (22), as so redesig14 nated, to read as follows: 

15 ‘‘(22) SERVICE CONTRACT.—The term ‘service 

16 contract’ means a written contract, other than a bill 

17 of lading or receipt, between one or more shippers 

18 and a common carrier, in which— 

19 ‘‘(A) the shipper or shippers commit to 

20 providing a certain volume or portion of cargo 

21 over a fixed time period; and 

22 ‘‘(B) the common carrier commits to a cer23 tain rate or rate schedule and a defined service 

24 level that includes assured space and other serv25 ice features.’’; and 


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1 (9) by inserting after paragraph (24), as so re2 designated, the following: 

3 ‘‘(25) SURCHARGE.—The term ‘surcharge’ 

4 means an amount charged by a common carrier re5 lated directly to a particular expense or cost in6 curred by the common carrier that is not included 

7 in the basic freight rate.’’. 

8 (b) CONFORMING AMENDMENT.—Section 431A(b)(1) 

9 of the Tariff Act of 1930 (19 U.S.C. Sec. 1431a(b)(1)) 

10 is amended by striking ‘‘section 40102(16)’’ and inserting 

11 ‘‘section 40102(18)’’. 

12 SEC. 7. ADMINISTRATIVE EXEMPTIONS. 

13 Section 40103(a) is amended by striking ‘‘agree14 ments’’ and all that follows through ‘‘from any require15 ment’’ and inserting ‘‘agreements subject to this part or 

16 any specified activity of persons subject to this part from 

17 any requirement’’. 

18 SEC. 8. TREATMENT OF CERTAIN COMMISSION ORDERS AS 

19 INVESTIGATIVE ORDERS. 

20 Section 40104(b) is amended to read as follows: 

21 ‘‘(b) TREATMENT OF CERTAIN COMMISSION ORDERS

22 AS INVESTIGATIVE ORDERS.—A Commission order requir23 ing a report, account, record, rate, charge, or memo24 randum pursuant to subsection (a) constitutes an inves25 tigative order to specific individuals or entities rather than 


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1 a collection of information from a category or class of indi2 viduals or entities.’’. 

3 SEC. 9. APPLICATION OF LAWS REGULATING OCEAN SHIP4 PING. 

5 Section 40301 is amended as follows: 

6 (1) By amending subsection (a) to read as fol7 lows: 

8 ‘‘(a) OCEAN COMMON CARRIER AGREEMENTS.—This 

9 part applies to an efficiency and service-enhancing agree10 ment between or among ocean common carriers to— 

11 ‘‘(1) share vessels or space on voyages between 

12 ports; 

13 ‘‘(2) discuss the number and character of voy14 ages between those ports; and 

15 ‘‘(3) engage in an exclusive, preferential, or co16 operative working arrangement between themselves 

17 or with a marine terminal operator.’’. 

18 (2) In subsection (c) by inserting before the pe19 riod the following: ‘‘that does not result in a change 

20 of control of an ocean common carrier’’. 

21 SEC. 10. RESTRICTIONS ON OCEAN COMMON CARRIER 

22 AGREEMENTS. 

23 (a) IN GENERAL.—Section 40303 is amended as fol24 lows: 


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1 (1) By striking so much as precedes subsection 

2 (d) and inserting the following: 

3 ‘‘(a) OCEAN COMMON CARRIER AGREEMENTS.—An 

4 agreement between or among ocean common carriers may 

5 not— 

6 ‘‘(1) allow members of the agreement to dis7 cuss, fix, or negotiate any kind of rate or charge 

8 with another member of the agreement; 

9 ‘‘(2) allow members of the agreement to discuss 

10 or agree on capacity rationalization; 

11 ‘‘(3) allow members of the agreement to estab12 lish a joint service, or pool or divide cargo traffic, 

13 earnings, revenues, or losses; 

14 ‘‘(4) allow all members of the agreement to allo15 cate customers or markets; 

16 ‘‘(5) allow members of the agreement to discuss 

17 or agree with another member on any service con18 tract matter; 

19 ‘‘(6) prohibit or restrict a member of the agree20 ment from engaging in negotiations for a service 

21 contract with a shipper; or 

22 ‘‘(7) require a member of the agreement to dis23 close a negotiation on a service contract, or the 

24 terms of a service contract, other than those terms 


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1 required to be published under section 40502(d) of 

2 this title.’’. 

3 (2) By redesignating subsection (d) as sub4 section (b). 

5 (b) CONFORMING AMENDMENT.—Section 

6 41105(6)(A) is amended by striking ‘‘40303(d)’’ and in7 serting ‘‘40303(b)’’. 

8 SEC. 11. COMMISSION ACTION. 

9 Section 40304 is amended— 

10 (1) in subsection (b), by inserting ‘‘is not an ef11 ficiency and service-enhancing agreement or’’ after 

12 ‘‘finds’’; 

13 (2) in subsection (c)— 

14 (A) in the matter preceding paragraph (1), 

15 by inserting ‘‘or an ocean common carrier 

16 agreement’’ after ‘‘assessment agreement’’; and 

17 (B) in paragraph (2) by striking ‘‘(d)’’ and 

18 inserting ‘‘(e)’’; 

19 (3) by redesigning subsections (d) through (f) 

20 as subsection (e) through (g), respectively; 

21 (4) by inserting after subsection (c) the fol22 lowing new subsection: 

23 ‘‘(d) APPROVAL BY COMMISSION.— 

24 ‘‘(1) IN GENERAL.—An ocean common carrier 

25 agreement filed under this part is not effective until 


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1 it is approved by the Commission as meeting the re2 quirements of this part. 

3 ‘‘(2) DEADLINE FOR APPROVAL.—Except as 

4 provided in subsection (e), the Commission shall vote 

5 on whether or not to approve an agreement before 

6 the later of— 

7 ‘‘(A) the end of the 90-day period begin8 ning on the date it is filed; or 

9 ‘‘(B) if additional information or docu10 ments are requested under subsection (e), the 

11 end of the 90-day period beginning on the date 

12 the Commission receives all the additional infor13 mation and documents.’’; 

14 (5) in subsection (e), as so redesignated, by in15 serting ‘‘or (d)’’ after ‘‘subsection (c)(1)’’; 

16 (6) in subsection (f)(2), as so redesignated— 

17 (A) by inserting before the first sentence 

18 the following: 

19 ‘‘(A) IN GENERAL.—’’; and 

20 (B) by adding at the end the following new 

21 subparagraph: 

22 ‘‘(B) EXTENSIONS.—If a person filing an 

23 agreement, or an officer, director, agent, or em24 ployee of that person, fails to substantially com25 ply with a request for the submission of addiVerDate Mar 15 2010 06:03 Sep 23, 2010 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H6167.IH H6167

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1 tional information or documents within the pe2 riod provided in subsection (d), the Commission 

3 may extend such period until there has been 

4 substantial compliance with the request of the 

5 Commission under subsection (e).’’; and 

6 (7) in subsection (g), as so redesignated, by in7 serting before the period the following: ‘‘, except for 

8 an agreement approved under subsection (d)’’. 

9 SEC. 12. EXEMPTION. 

10 Section 40307 is amended— 

11 (1) in subsection (a)(7), by inserting before the 

12 period the following: ‘‘to the extent that such an 

13 agreement is approved under this part after January 

14 1, 2011’’; and 

15 (2) in subsection (d), by striking ‘‘by this part’’ 

16 and inserting ‘‘by section 41106’’. 

17 SEC. 13. GENERAL RATE AND TARIFF REQUIREMENTS. 

18 Section 40501 is amended— 

19 (1) in subsection (a)(1), by striking ‘‘Each’’ 

20 and all that follows through ‘‘system,’’ and inserting 

21 ‘‘Each common carrier shall maintain for public in22 spection in an automated tariff system on the Inter23 net,’’; 

24 (2) in subsection (b)— 


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1 (A) in paragraphs (3) and (4), by striking 

2 ‘‘or conference’’ each place it appears; and 

3 (B) by striking ‘‘and’’ after the semicolon 

4 at the end of paragraph (5), by striking the pe5 riod at the end of paragraph (6) and inserting 

6 a semicolon, and by adding at the end the fol7 lowing new paragraphs: 

8 ‘‘(7) separately state the charges by the carrier 

9 for providing or handling equipment; and 

10 ‘‘(8) clearly describe any surcharge contained in 

11 the tariff.’’; 

12 (3) in subsection (c), by striking the last sen13 tence and inserting the following: ‘‘No fee may be 

14 charged for such access.’’; and 

15 (4) in subsection (e)(2), by striking ‘‘on publi16 cation’’ and inserting ‘‘immediately’’. 

17 SEC. 14. SERVICE CONTRACTS. 

18 Section 40502 is amended— 

19 (1) in subsection (a), by striking ‘‘ocean com20 mon carrier or an agreement between or among 

21 ocean common carriers’’ and inserting ‘‘common car22 rier’’; 

23 (2) in subsection (b)(2), by striking ‘‘ocean 

24 common carrier or an agreement shall be filed’’ and 


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1 inserting ‘‘common carrier shall be filed electroni2 cally and’’; 

3 (3) in subsection (c)— 

4 (A) in paragraph (7), by striking ‘‘and’’ 

5 after the semicolon at the end; 

6 (B) in paragraph (8), by striking the pe7 riod at the end and inserting ‘‘, by common car8 rier and shipper parties.’’; and 

9 (C) by adding at the end the following new 

10 paragraph: 

11 ‘‘(9) separately state the charges by the carrier 

12 for providing equipment.’’; 

13 (4) in subsection (d), by striking ‘‘and (6)’’ and 

14 inserting ‘‘, (6), and (9)’’; and 

15 (5) in subsection (f)— 

16 (A) in the first sentence, by striking ‘‘ex17 clusive’’; and 

18 (B) by adding at the end the following: 

19 ‘‘This subsection does not apply to mediation 

20 before the Commission at the request of any 

21 party to the service contract or to a dispute 

22 covered by section 40505(b) of this title.’’. 

23 SEC. 15. REFUNDS AND WAIVERS. 

24 Section 40503 is amended by striking ‘‘or con25 ference’’ each place it appears. 


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1 SEC. 16. COMPILATION OF COMPLAINTS AND SERVICE RE2 LIABILITY DATA. 

3 (a) IN GENERAL.—Chapter 405 is amended by add4 ing at the end the following new section: 

5 ‘‘§ 40504. Compilation of complaints and service reli6 ability data 

7 ‘‘(a) DATABASE.—The Commission shall establish 

8 and maintain a database of complaints received by the 

9 Commission. 

10 ‘‘(b) AN ANNUAL REPORT OF SERVICE COM11 PLAINTS.— 

12 ‘‘(1) IN GENERAL.—The Commission shall post 

13 an annual report of formal and informal service 

14 complaints received by the Commission during the 

15 previous year that shall include— 

16 ‘‘(A) the quantity of each type of com17 plaint; 

18 ‘‘(B) the geographic region of the com19 plaints; and 

20 ‘‘(C) the resolution of the complaints, if 

21 appropriate. 

22 ‘‘(2) LIMITATION ON IDENTIFICATION OF COM23 PLAINANT.—The annual report may identify a com24 plainant that submitted an informal complaint only 

25 upon the written consent of the complainant. 

26 ‘‘(c) RELIABILITY INDICATORS.— 


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1 ‘‘(1) IN GENERAL.—The Commission shall, by 

2 regulation, require ocean common carriers to report 

3 frequency and duration of delays in shipments, all 

4 instances in which cargo has not been transported 

5 on a voyage for which it was booked, and other serv6 ice or reliability indicators as determined by the 

7 Commission to be appropriate. 

8 ‘‘(2) ANNUAL REPORT.— 

9 ‘‘(A) IN GENERAL.—The Commission shall 

10 issue an annual report of service and reliability 

11 indicators for each ocean common carrier. 

12 ‘‘(B) POSTING ON INTERNET.—The re13 ports shall be posted on the Commission’s pub14 lic Internet Web site.’’. 

15 (b) CLERICAL AMENDMENT.—The analysis at the be16 ginning of such chapter is amended by adding at the end 

17 the following new item: 

‘‘40504. Compilation of complaints and service reliability data.’’. 

18 SEC. 17. ARBITRATION OF DISPUTES. 

19 (a) IN GENERAL.—Chapter 405 is further amended 

20 by adding at the end the following new section: 

21 ‘‘§ 40505. Arbitration of disputes regarding common 

22 carrier services 

23 ‘‘(a) IN GENERAL.—Not later than one year after en24 actment of the Ocean Shipping Act of 2010, the Commis25 sion shall prescribe regulations to establish a binding arbiVerDate Mar 15 2010 06:03 Sep 23, 2010 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H6167.IH H6167

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1 tration process to resolve complaints subject to the juris2 diction of the Commission and within the scope of disputes 

3 to which the process applies under subsection (b). 

4 ‘‘(b) COVERED DISPUTES.—The binding arbitration 

5 process— 

6 ‘‘(1) shall apply to disputes involving service 

7 contracts, common carrier practices, and common 

8 carrier service expectations that are subject to the 

9 jurisdiction of the Commission; 

10 ‘‘(2) shall not apply to disputes to obtain the 

11 grant, denial, stay, or revocation of any license, au12 thorization, or exemption; 

13 ‘‘(3) shall not apply to disputes solely between 

14 2 or more ocean common carriers; and 

15 ‘‘(4) shall be agreed upon by the parties to dis16 pute. 

17 ‘‘(c) ARBITRATION PROCEDURES.— 

18 ‘‘(1) IN GENERAL.—The Commission— 

19 ‘‘(A) may make the binding arbitration 

20 process available only to the relevant parties— 

21 ‘‘(i) after the filing of a formal com22 plaint; or 

23 ‘‘(ii) on petition by a party at the con24 clusion of any informal dispute resolution 


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1 process provided by the Commission for a 

2 complaint subject to this section; 

3 ‘‘(B) shall determine whether to pursue a 

4 proceeding under the binding arbitration proc5 ess no later than 30 days after the filing of a 

6 petition or formal complaint; and 

7 ‘‘(C) may make the binding arbitration 

8 proceeding and decision confidential following a 

9 request of the parties submitted at the time of 

10 filing the petition or formal complaint. 

11 ‘‘(2) PROHIBITION ON SEPARATE REVIEW.— 

12 The Commission may not separately review a com13 plaint or dispute related to a rate, practice, or com14 mon carrier service that is the subject of a binding 

15 arbitration initiated under this subsection involving 

16 the same parties. 

17 ‘‘(3) CONSIDERATION OF PUBLISHED SERVICE

18 EXPECTATIONS.—In resolving disputes involving 

19 common carrier service expectations, the arbitrator 

20 shall consider service expectations as published 

21 under section 40501(h) of this title. 

22 ‘‘(d) ARBITRATION DECISIONS.—Any decision 

23 reached in an arbitration proceeding under this section 

24 shall— 

25 ‘‘(1) be consistent with this part; 


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1 ‘‘(2) be in writing and contain findings of fact 

2 and conclusions; 

3 ‘‘(3) have no precedential effect in any other or 

4 subsequent arbitration proceeding under this section; 

5 and 

6 ‘‘(4) be binding upon the parties. 

7 ‘‘(e) TIMELINES.— 

8 ‘‘(1) IN GENERAL.—In an arbitration pro9 ceeding under this section— 

10 ‘‘(A) the arbitrator shall be selected within 

11 14 days after the Commission’s decision to ini12 tiate arbitration; 

13 ‘‘(B) the evidentiary phase of the arbitra14 tion shall be completed within 90 days after the 

15 date of initiation of the arbitration proceeding, 

16 unless a party requests an extension and the ar17 bitrator grants it; and 

18 ‘‘(C) the arbitrator shall issue a decision 

19 within 30 days after the close of the evidentiary 

20 record. 

21 ‘‘(2) EXTENSION OF DEADLINES.—The Com22 mission may extend any of the deadlines in this sub23 section. 

24 ‘‘(f) ARBITRATORS.—Arbitration under this section 

25 shall be conducted by an arbitrator selected from a roster, 


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1 maintained by the Commission, of Commission staff or 

2 persons in the private sector with transportation, economic 

3 regulation, professional or business experience, including 

4 agriculture. If the parties cannot mutually agree on an 

5 arbitrator, the parties shall select an arbitrator from the 

6 roster by alternately striking names from the roster until 

7 only 1 name remains. The parties shall share the costs 

8 of the arbitration equally. With respect to arbitration in9 volving a controlled carrier, the arbitrator may not be con10 trolled by or in any way affiliated with a government that 

11 owns or controls the carrier. 

12 ‘‘(g) RELIEF.— 

13 ‘‘(1) LIMITATION.—A decision under this sec14 tion may award the payment of damages, but the 

15 value of the award may not exceed $250,000 per 

16 year and the award may not cover a total time pe17 riod of more than 2 years. 

18 ‘‘(2) REVIEW.—The Commission shall periodi19 cally review the amount in paragraph (1) and adjust 

20 it as necessary to reflect inflation. 

21 ‘‘(h) COMMISSION REVIEW.—If a party to an arbitra22 tion proceeding under this section appeals an arbitrator’s 

23 decision to the Commission, the Commission may review 

24 the decision under this section to determine if— 


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1 ‘‘(1) the decision is consistent with this part as 

2 applied by the Commission; or 

3 ‘‘(2) if the award limitation in subsection (g) is 

4 complied with.’’. 

5 (b) CLERICAL AMENDMENT.—The analysis at the be6 ginning of such chapter is amended by adding at the end 

7 the following new item: 

‘‘40504. Arbitration of disputes regarding common carrier services.’’. 

8 SEC. 18. CLERICAL AMENDMENTS RELATING TO CON9 TROLLED CARRIERS. 

10 Chapter 407 is amended— 

11 (1) by striking the heading for section 40701 

12 and inserting the following: 

13 ‘‘§ 40701. Controlled carrier rates’’; 

14 (2) by striking the heading for section 40702 

15 and inserting the following: 

16 ‘‘§ 40702. Controlled carrier rate standards’’; 

17 (3) by striking the heading for section 40703 

18 and inserting the following: 

19 ‘‘§ 40703. Effective date of controlled carrier rates’’; 

20 and 

21 (4) in the analysis at the beginning of the chap22 ter, by striking the items relating to sections 40701, 

23 40702, and 40703 and inserting the following: 

‘‘40701. Controlled carrier rates. 

‘‘40702. Controlled carrier rate standards. 

‘‘40703. Effective date of controlled carrier rates.’’. 


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1 SEC. 19. COMMISSION REVIEW OF RATES, CHARGES, ETC.: 

2 INVESTIGATION AND CIVIL PENALTIES OF 

3 CONTROLLED CARRIERS. 

4 Section 40704 is amended— 

5 (1) in subsection (b), by adding at the end the 

6 following ‘‘In making this determination, the Com7 mission may investigate any relevant conduct under 

8 sections 41302 to 41304 of this title.’’; and 

9 (2) by adding at the end the following new sub10 section: 

11 ‘‘(f) CIVIL PENALTIES.—In addition to any action 

12 authorized under this section with respect to a rate, 

13 charge, classification, rule, or regulation the Commission 

14 determines to be unjust or unreasonable, the Commission 

15 may assess civil penalties under section 41109.’’. 

16 SEC. 20. OCEAN TRANSPORTATION INTERMEDIARIES: PRO17 HIBITION ON ADVERTISING. 

18 Section 40901(a) is amended in the first sentence by 

19 inserting ‘‘advertise, hold oneself out, or’’ after ‘‘may 

20 not’’. 

21 SEC. 21. OCEAN TRANSPORTATION INTERMEDIARIES: FI22 NANCIAL RESPONSIBILITY AND RESIDENT 

23 AGENTS. 

24 Section 40902 is amended— 

25 (1) in subsection (a), by inserting ‘‘advertise, 

26 hold oneself out, or’’ after ‘‘may not’’; and 


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1 (2) in subsection (d), by inserting before the pe2 riod the following: ‘‘, and Commission requests or 

3 demands for records or reports’’. 

4 SEC. 22. OCEAN TRANSPORTATION INTERMEDIARIES: SUS5 PENSION OR REVOCATION OF LICENSE FOR 

6 FAILURE TO COMPLY WITH COMMISSION RE7 QUESTS. 

8 Section 40903(a) is amended by striking ‘‘or’’ after 

9 the semicolon at the end of paragraph (1), striking the 

10 period at the end of paragraph (2) and inserting ‘‘; or’’ 

11 and by adding at the end the following new paragraph: 

12 ‘‘(3) failed to comply with a Commission sub13 poena or request for records.’’. 

14 SEC. 23. REPEAL OF PROHIBITIONS OF CERTAIN PAY15 MENTS. 

16 Section 40904(d) is amended by striking so much as 

17 precedes ‘‘limit the payment of compensation’’ and insert18 ing the following: 

19 ‘‘(d) PROHIBITION ON LIMITING PAYMENT OF COM20 PENSATION TO AN OCEAN FREIGHT FORWARDER.—An 

21 ocean common carrier may not’’. 

22 SEC. 24. REPEAL OF DEFINITION OF JOINT VENTURE AND 

23 CONSORTIUM. 

24 (a) REPEAL.—Section 41101 is repealed. 


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1 (b) CLERICAL AMENDMENT.—The analysis at the be2 ginning of chapter 411 is amended by striking the item 

3 relating to such section. 

4 SEC. 25. REPEAL OF AUTHORITIES TO DISCLOSURE OF IN5 FORMATION. 

6 Section 41103 is amended— 

7 (1) in subsection (b), by adding ‘‘or’’ after the 

8 semicolon at the end of paragraph (1), striking ‘‘; 

9 or’’ at the end of paragraph (2) and inserting a pe10 riod, and striking paragraph (3); and 

11 (2) by striking subsection (c). 

12 SEC. 26. ADDITIONAL PROHIBITIONS OF CERTAIN ACTIONS 

13 BY COMMON CARRIERS. 

14 (a) IN GENERAL.—Section 41104 is amended— 

15 (1) by redesignating paragraphs (3) through 

16 (12) as paragraphs (4) through (13); 

17 (2) by inserting after paragraph (2) the fol18 lowing new paragraph: 

19 ‘‘(3) refuse or threaten to refuse cargo space 

20 accommodations when available;’’; 

21 (3) in paragraph (4), as so redesignated, by 

22 striking ‘‘refusing, or threatening to refuse, cargo 

23 space accommodations when available, or resort to 

24 other’’; 


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1 (4) by striking ‘‘or’’ after the semicolon at the 

2 end of paragraph (12), as so redesignated; 

3 (5) in paragraph (13), as so redesignated, by 

4 striking the period and inserting a semicolon; and 

5 (6) by adding at the end the following new 

6 paragraphs: 

7 ‘‘(13) discriminate against a shipper or ocean 

8 transportation intermediary for supplying their own 

9 equipment; 

10 ‘‘(14) engage in an unfair or deceptive practice 

11 or an unfair method of competition in ocean trans12 portation or the sale of ocean transportation; 

13 ‘‘(15) engage in deceptive or fraudulent prac14 tices including unreasonable failure to provide trans15 portation services as agreed to in the contract; 

16 ‘‘(16) take any action that may have the effect 

17 of unreasonably and substantially lessening competi18 tion in a trade; 

19 ‘‘(17) discriminate against a shipper on the 

20 basis of nationality or association with another com21 mon carrier; 

22 ‘‘(18) refuse to deliver or release a shipment, if 

23 such refusal is based on debts, claims, or amounts 

24 owed that are unrelated to a debt, claim, or amount 

25 owed by that shipper; or 


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1 ‘‘(19) impose a surcharge that is unreasonable 

2 or does not comply with the requirements of this 

3 part.’’. 

4 (b) CONFORMING AMENDMENTS.—Section 41305 is 

5 amended— 

6 (1) in subsection (c), by striking ‘‘41103(3) or 

7 (6)’’ and inserting ‘‘41103 (4) or (7)’’; and 

8 (2) in subsection (d), by striking 

9 ‘‘41104(4)(4)(A)’’ and inserting ‘‘41104(5)(A)’’. 

10 SEC. 27. CONCERTED ACTION. 

11 Section 41105 is amended— 

12 (1) in the matter preceding paragraph (1), by 

13 striking ‘‘conference or’’; 

14 (2) in paragraph (3), by striking ‘‘of a common 

15 carrier not a member of the conference, a group of 

16 common carriers’’ and inserting ‘‘of a common car17 rier’’; 

18 (3) in paragraph (4), by striking ‘‘conference, 

19 joint venture,’’ and inserting ‘‘joint venture’’; and 

20 (4) in paragraph (6), by— 

21 (A) striking ‘‘that are parties to the agree22 ment’’; and 

23 (B) striking ‘‘that is a party to the agree24 ment’’. 


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1 SEC. 28. MONETARY PENALTIES. 

2 Section 41107(a) is amended by— 

3 (1) striking ‘‘$5,000’’ and inserting ‘‘$25,000’’; 

4 and 

5 (2) striking ‘‘, $25,000’’ and inserting 

6 ‘‘$75,000’’. 

7 SEC. 29. ADDITIONAL PENALTIES. 

8 Section 41108 is amended— 

9 (1) in subsection (a), by striking ‘‘, or that 

10 common carrier’s right to use any or all tariffs of 

11 conferences of which it is a member,’’; and 

12 (2) in subsection (c)(1)(A), by striking ‘‘or the 

13 carrier’s right to use any or all tariffs of conferences 

14 of which it is a member’’. 

15 SEC. 30. OCEAN TRANSPORTATION PRACTICES STUDY. 

16 (a) STUDY.—Within 180 days after the date of enact17 ment of this Act, the Federal Maritime Commission shall 

18 initiate a study of ocean transportation practices, includ19 ing delay of cargo, surcharges, penalties, demurrage, ac20 cessorial charges, and availability of containers for exports 

21 from the United States. In conducting the study, the Com22 mission shall provide public notice and opportunity for 

23 comment and conduct one or more public hearings. 

24 (b) REPORT TO CONGRESS.—Within 180 days after 

25 completion of the study, the Commission shall provide a 

26 report on its findings to the Committee on Commerce, 


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1 Science, and Transportation of the Senate and the Com2 mittee on Transportation and Infrastructure of the House 

3 of Representatives. 

Æ 


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