FEDERAL MARITIME COMMISSION 

BUDGET ESTIMATES 

FISCAL YEAR 2009 

SUBMITTED TO THE APPROPRIATIONS COMMITTEE

February 4, 2008 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 

 

T A B L E O F C O N T E N T S

 Page

Summary and Highlight Statement . . . . . . .................. . . . . . . . . . . . . . . . .... . . . . . . . . . . . . . . ...1 

Justification Materials:

Organizational Chart........................................................................................................................... .....9 

Appropriation History (Graph) .......................................................................................................... ....10 

Full-Time Equivalent History (Graph) .................................................................................................. 11 

Summary of Requirements .................................................................................................................... 12 

Program by Activities............................................................................................................................ 13 

Summary of Employment...................................................................................................................... 14 

Summary of Salaries and Benefits Expenses......................................................................................... 15 

Summary of Travel and Administrative Expenses ................................................................................ 16

Budget Justifications:

Formal Proceedings Program ................................................................................................................ 17 

Equal Employment Opportunity Program ............................................................................................. 29 

Inspector General Program.................................................................................................................... 30 

Operations Program............................................................................................................................... 32 

Administration Program ........................................................................................................................ 45 

Alphabetical Listing of Abbreviations (Appendix A)............................................................................ 49 

Attachment: 2009 Final Annual Performance Plan
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 1

Summary and Highlight Statement 

Budget Estimates, 2009 

The Federal Maritime Commission (“FMC” or “Commission”) regulates oceanborne transportation in the foreign 

commerce of the United States. The Commission administers the Shipping Act of 1984 (“1984 Act” or “Shipping 

Act”) as amended by the Ocean Shipping Reform Act of 1998 (“OSRA”); section 19 of the Merchant Marine Act, 

1920 (“1920 Act”); the Foreign Shipping Practices Act of 1988 (“FSPA”); and Public Law (“P. L.”) 89-777. The 

Commission monitors the activities of ocean common carriers, marine terminal operators (“MTOs”), conferences, 

ports and ocean transportation intermediaries (“OTIs”) who operate in the U.S. foreign commerce to ensure that 

they maintain just and reasonable practices; maintains a trade monitoring program to detect and appropriately 

remedy malpractices and prohibited acts under the Shipping Act; monitors the laws and practices of foreign 

governments which could have adverse impact on shipping conditions in U.S. trades and imposes remedial action 

as appropriate under section 19 of the 1920 Act or the FSPA; enforces regulatory requirements applicable to 

carriers owned or controlled by foreign governments; processes and reviews carrier agreements, service contracts 

and service arrangements for compliance with the Shipping Act, and reviews carriers’ privately published tariff 

systems for public accessibility and accuracy as required by OSRA. The Commission also issues licenses to 

qualified OTIs in the U.S., ensures that all OTIs are bonded to protect the shipping public from financial loss and, 

under P.L. 89-777, ensures that passenger vessel operators (“PVOs”) demonstrate adequate financial responsibility 

to indemnify passengers in case of injury or nonperformance of transportation. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 2

Summary and Highlights

The Commission’s activities during the past fiscal year include the following:

♦ Improved further the Commission’s monitoring program of agreements which address such supply-chain and 

operational issues as port congestion, security, air pollution and environmental concerns that affect local 

communities and industry stakeholders, including conducting a review and analysis of the clean air action plan 

proposed by the Los Angeles and Long Beach Port Infrastructure and Environmental Programs Cooperative 

Working Agreement, which established new programs to reduce air pollution from motor carriers serving 

marine terminals. Staff also reviewed an amendment to the West Coast MTO Agreement permitting the 

terminal operators to institute measures anticipated under the ports’ new programs seeking to reduce pollution 

from trucks calling in the port areas. Also monitored developments at the Port of Los Angeles and the Port of 

Long Beach relating to the Clean Trucks Program. The Port of Los Angeles and the Port of Long Beach (“the 

Ports”) are members of FMC Agreement No. 201170, Los Angeles and Long Beach Port Infrastructure and 

Environmental Programs Cooperative Working Agreement. This agreement permits them to discuss, consult, 

and agree on the establishment and implementation of programs and strategies to improve port-related 

transportation infrastructure and to decrease port-related air pollution. The Ports are currently in the process of 

developing a Clean Trucks Program as the first initiative under their joint Clean Air Action Plan. The Ports’ 

goal is to significantly reduce air pollution from port drayage trucks by replacing or retrofitting an estimated 

16,000 trucks servicing the Ports over a 5-year period. Certain groups have asserted that the proposed Clean 

Trucks Program may violate certain provisions of the Shipping Act. The Commission held a closed meeting 

on November 28, 2007, to consider the proposed Clean Trucks Program, and it will continue to monitor 

developments at the Ports. 

♦ Heard oral argument in Docket No. 06-03, Premier Automotive Services, Inc. v. Robert L. Flanagan and F. 

Brooks Royster, III. Premier Automotive Services, Inc. (“Premier”) filed a complaint against Robert L. 

Flanagan and F. Brooks Royster, III (collectively “Flanagan”) alleging that Flanagan’s marine terminal leasing 

practices violated the Shipping Act. Flanagan filed a Motion to Dismiss arguing that (1) the case is barred by 

constitutional principles of state sovereign immunity; (2) the Shipping Act does not authorize private 

complaints for injunctive relief, and (3) the respondents should not be held liable as individuals under 

provisions of the Shipping Act which are specifically applicable to common carriers, OTIs and 

MTOs. Premier’s response argued that the action is within the Ex parte Young, 209 U.S. 123 (1908), 

exception to state sovereign immunity and that the Shipping Act provides for prospective injunctive 

relief. The ALJ granted the motion to dismiss on March 31, 2006, finding that the complaint was barred by 

sovereign immunity since Young did not apply. Premier appealed the ALJ’s decision, and the proceeding is 

currently pending before the Commission. 

♦ Administered the Commission’s oversight authority over filed carrier agreements by reviewing developments 

relating to a number of our most important U.S. ocean trading lanes, including preparation of a report and 

economic analysis of the competitive impact of expanding the geographic scope of the Transpacific 

Stabilization Agreement (“TSA”) to include the Indian Subcontinent; and an analysis of competitive impacts 

anticipated from the announcement that TSA would add CMA-CGM, S.A., Mediterranean Shipping Company, 

S.A. and Zim Integrated Shipping Services Ltd., as members. Although the addition of carrier parties increased 

TSA’s market position, anticompetitive concerns at present are mitigated by the decline in rate levels in the 

Transpacific over the past year. 

♦ On a 3-2 vote, issued an order in Docket No. 02-08, Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico 

Ports Authority, Docket No. 04-01, International Shipping Agency, Inc. v. The Puerto Rico Ports Authority, 

and Docket No. 04-06, San Antonio Maritime Corp. and Antilles Cement Corp. v. Puerto Rico Ports Authority, 

finding that the Puerto Rico Ports Authority (“PRPA”) is not an arm of the Commonwealth of Puerto Rico and, 

therefore, is not entitled to sovereign immunity. Complainants had alleged that PRPA’s marine terminal 

leasing practices violate the Shipping Act, and that PRPA’s activities are contrary to the terms of an agreement 

filed with the Commission. PRPA sought dismissal of the action, arguing that the complaints are barred by 

PRPA’s sovereign immunity as an arm of the Commonwealth of Puerto Rico. The Commission’s decision 

affirmed the Administrative Law Judge’s (“ALJ’s”) decision that PRPA was not entitled to sovereign 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 3

immunity. PRPA sought review of the Commission’s decision in the U.S. Court of Appeals for the D.C. 

Circuit. Further proceedings have been stayed by that court pending its review. 

♦ Commenced financial and documentary reviews of PVOs under section 3, P.L. 89-777 to evaluate PVO 

compliance in reporting unearned passenger revenue, and to determine whether passenger receipts are timely 

and accurately deposited by the cruise operator into the FMC-approved escrow account. An initial review was 

conducted at the offices of a New York-based cruise operator having an escrow account, and a second review 

was instituted in July 2007 at the Rhode Island offices of a small PVO establishing financial responsibility by 

means of a surety bond. 

♦ Exercised the Commission’s continuing oversight over land-side agreements affecting marine terminals and 

intermodalism by preparing an analysis of an agreement between and among ocean common carriers 

participating in the Ocean Carrier Equipment Management Association, the South Carolina State Ports 

Authority, and the Georgia Ports Authority to establish a regional chassis pool at marine terminals and inland 

intermodal terminals in the South Atlantic region of the United States. The Commission allowed the agreement 

to become effective upon determining that the agreement likely would enhance efficiency at the terminals and 

inland intermodal terminals concerned. 

♦ Placed an Area Representative in Houston, TX due to significant growth in container volumes transiting the 

port. The AR will serve Houston and other major port cities and transportation centers within the geographic 

area. In addition to monitoring and investigative functions, ARs represent the Commission within their 

jurisdictions, provide liaison between the Commission and the maritime industry and the shipping public, 

collect and analyze information of regulatory significance, and assess industry conditions. 

♦ Initiated an evaluation of the effectiveness of the PierPASS program after two full years in operation, 

including a detailed assessment of the program’s pricing mechanisms, cost allocation methods, and revenue redistribution systems. The PierPASS program was designed and implemented by members of the West Coast 

MTO Agreement in conjunction with other industry stakeholders to ameliorate road and terminal congestion at 

the ports of Los Angeles and Long Beach and to help mitigate pollution associated with port-related activities. 

The program substantially extended the use of marine terminals during off-peak hours by imposing a “traffic 

mitigation fee” on certain containers using terminal gates during peak times. 

♦ Implemented electronic filing of an automated Form FMC-18, Application for an Ocean Transportation 

Intermediary License, permitting filers to complete an OTI application on-line, scan and attach required 

documents, and submit the application electronically. The filing system incorporates significant security 

features for the purpose of protecting applicant data, and detecting and preventing unauthorized system 

intrusions. 

♦ Completed a biannual financial analysis of user fees by staff. A proposed rule updating the Commission’s 

schedule of user fees for services provided will be issued in the near future. 

♦ Following work with staff from the Bureau of Public Debt and auditors regarding the Audit of the Fiscal Year 

2006 Financial Statement, the Commission received an unqualified opinion as to our fiscal year 2006 financial 

statement audit. 

♦ A peer review was conducted in 2007 of the Office of Inspector General’s (“OIG’s”) quality control program. 

OIG received a clean opinion. 

♦ Established links in the agreement database as a first step to providing public access, through the agency’s 

website, to marine terminal agreements. 

♦ Completed review of passenger pay-out procedures with respect to two defunct PVOs under escrow 

agreements previously established under provisions of 46 C.F.R. Part 540. Following coordination with the 

agency’s Office of Consumer Affairs and Dispute Resolution Services to ensure that passenger fare refunds 

were completed to all qualified passengers embarking at a U.S. port, the Commission approved final pay-out 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 4

and termination of escrow accounts on behalf of CQ River Cruises L.L.C. (d/b/a American Rivers Cruise Line 

and Great American River Journeys); and Royal Olympic Cruises Ltd. (d/b/a Royal Olympia Cruises and R O 

Cruises, Inc), PVOs who previously discontinued cruise operations without performing contracted cruises. 

♦ Completed modernization of the Regulated Persons Index (“RPI”). The agency posts on its website a list of 

OTIs which are licensed, bonded, and have provided their tariff location, if required, so that carriers and others 

can ascertain whether an OTI has met FMC requirements. The list is also of use to the U.S. Customs and 

Border Protection (“CBP”) and other Federal agencies in conjunction with homeland security initiatives. 

♦ Conducted continuing informational outreach conducted by the Commission’s Area Representatives (“ARs”) 

at locations around the country. Fiscal year 2007 activities included: addressing the Surfside Business 

Association to provide information on the jurisdiction and functions of the FMC; addressing the Cargo 

Committee of the Greater Miami Chamber of Commerce; and addressing a general membership meeting of the 

Florida Customs Brokers and Freight Forwarders Association, among others. A single TV interview on 

Univision’s New York area station (TV Channel 45) netted over 50 inquiries directed at unlicensed OTIs. 

In addition to the above, the Commission, as part of its ongoing activities: 

♦ Continued to accumulate information on the laws and practices of foreign governments and monitor activities 

in the U.S. foreign trades to address appropriately any condition which appears unfavorable to U.S. shipping 

interests. 

♦ Received and processed 741 original non-vessel-operating common carrier (“NVOCC”) Service 

Arrangements (“NSAs”) and 886 subsequent amendments that were filed by NVOCCs. As part of the 

Commission’s decision to allow NSA filings, staff also conducted a comprehensive review of all NSAs filings 

received during the first year of effectiveness of the rule. 

♦ Monitored service contract and tariff filings to ensure fair and equitable trading conditions. Received and 

processed 44,608 new service contracts and 262,076 contract amendments. 

♦ Continued an exchange of enforcement information with CBP in accordance with a Memorandum of 

Understanding. Cooperation with CBP has expanded into joint field operations to investigate entities 

suspected of violating both agencies’ statutes or regulations. Such cooperation often includes local police and 

U.S. Citizenship and Immigration Services (formerly INS). FMC Area Representatives also conferred with 

CBP regarding ongoing matters of mutual interest such as misdescriptions of shipments inbound from China 

to the United States, industry malpractices, and terminal OTIs. 

♦ Received 73 applications for passenger vessel certificates (casualty and performance). Currently, 200 vessels 

and 48 operators have evidence of financial responsibility coverage on file with the Commission in excess of 

$354 million for nonperformance and over $690 million for casualty. 

♦ Issued 352 new and 154 amended OTI licenses, approved 94 other actions such as replacement of qualifying 

individuals or business structure changes, and revoked 237 licenses; bonds for 67 non-U.S.-based unlicensed 

NVOCCs were cancelled. 

♦ Continued an investigation into the operations of unlicensed, unbonded OTIs that provide transportation of 

household goods and personal effects, including enforcement of the prohibition on Vessel-Operating 

Common Carriers (“VOCCs”) and licensed NVOCCs providing service to such unlawful operators. 

♦ Continued working with the industry to obtain statutory compliance in all major trades and with all segments 

of the transportation industry, i.e., carriers, carrier agreements, MTOs, PVOs, and OTIs. Particular emphasis 

was placed on service contract activities in order to ensure fair trading conditions and adequate protection of 

the public. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 5

♦ Continued its program designed to identify controlled carriers effectively and quickly, and to ensure 

appropriate monitoring of controlled carrier activities. This included reviewing documents and information 

relating to the controlled carrier status of a number of carriers. As part of the program, produced a detailed 

study of service contract rate levels for major commodities moving between key port-pairs in the U.S. 

transpacific trade. 

♦ Monitored agreement activities and trade conditions affecting oceanborne foreign commerce by reviewing, 

evaluating and processing 181 carrier agreement filings and 10 marine terminal agreement filings. 

♦ As part of its agreements program, the agency also received 908 sets of minutes of agreements meetings and 

163 submissions of voluntary service contract guidelines, as well as 99 monitoring reports containing market 

share, cargo, revenue, and service data for agreement parties. Additionally, four applications for waiver 

requests were processed. 

♦ Worked with industry parties to establish an automated interface with the Service Contract Filing System 

(“SERVCON)” upgrades implemented last fiscal year, facilitating streamlined filing process for service 

contracts and NSAs, and providing other performance enhancements to the system. 

♦ Continued a program of semi-annual meetings with carrier representatives of the Trans-Pacific Stabilization 

Agreement pursuant to settlement terms agreed to in Fact Finding Investigation No. 25, Practices of 

Transpacific Stabilization Agreement Members Covering the 2002-2003 Service Contract Season. 

♦ Posted 4,372 active/current tariff location addresses for carriers, conferences, and MTOs on the agency’s 

website to ensure public access to tariff data. Commission staff also maintains a historical record of 2,140 

inactive/cancelled tariff location addresses, which are available for public access. 

♦ Continued to monitor accessibility to tariffs published in carriers’ automated tariff systems (“CATS”). 

Contacted particular entities to address high fees for CATS access. 

♦ Conducted, through the Office of Inspector General, annual reviews of the agency’s financial statement and 

information security and privacy assurance controls, as well as other programmatic audits and reviews of FMC 

programs and activities. 

♦ Made extensive use of a new point-and-click web-based Port Import Export Reporting Service (“PIERS”) data 

analysis system developed for the agency’s Bureau of Trade Analysis (“BTA”) in assessing the competitive 

impact of new agreements or modifications to existing agreements and to monitor trade conditions and 

agreement activities. 

♦ Maintained an agreement database and library containing up-to-date information pertaining to effective 

agreements. Continued adding copies of marine terminal agreements to the agency’s electronic agreement 

library. Public access to the marine terminal agreements library will be established through links on the 

agency website 

♦ Revised the Form FMC-1 database system to provide better computer security and require use of log-on 

identification and passwords for users accessing the system. 

♦ Developed an internal automated database system for tracking OTI/NVOCC activities to ensure compliance 

related to tariff cancellations, inactive Form FMC-1s and current bonds/licenses. 

♦ Collected $1,372,117 in fines and penalties. The Commission also collected $592,720 in fees for publications 

and photocopies, ocean freight forwarder/NVOCC licensing, passenger vessel certifications, special 

permissions and other applications. These revenues were deposited in the U.S. Treasury general fund account. 

♦ Participated in interagency groups and international maritime discussions, including the Committee on the 

Marine Transportation System (“CMTS”), a cabinet-level inter-agency organization whose goal is to ensure 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 6

the development and implementation of national CMTS policies consistent with national needs. 

♦ Provided consumer assistance consistent with the policies of Executive Order 12160, “Providing for 

Enhancement and Coordination of Federal Consumer Programs,” while also assisting regulated entities in 

achieving compliance with statutory requirements. 

♦ Consulted with Congressional staff in support of a recently-adopted bill to revise, codify and re-enact 

maritime laws administered by FMC as part of Title 46, U.S. Code, Shipping. 

♦ Reviewed 105 other bills, proposals and Congressional inquiries referred to the General Counsel for 

determination of impact on Commission programs, policies or operations; and to evaluate need for formal or 

informal contacts with Congressional staff. 

♦ Developed internal controls vulnerability assessments in line with OMB Circular A-123, Management 

Responsibility for Internal Controls. 

♦ Completed the agency’s Program Performance Report for fiscal year 2006, finalized its Annual Performance 

Plan for fiscal year 2008, and developed its Initial Annual Performance Plan for fiscal year 2009, in 

accordance with the Government Performance and Results Act of 1993. 

♦ Continued information technology efforts to ensure compliance with statutory regulatory requirements and to 

ensure effective coordination of the Commission’s automation program, including initiating procurements 

assisting implementation of the government’s new Internet upgrade initiative (“IPv6”). 

♦ Initiated new system for electronically scanning/imaging Commission records, and successfully migrated data 

from old scanning system. The process of scanning new Commission records continued during fiscal year 

2007, improving staff response time to public inquiries and facilitating public access to electronic files. 

♦ Continued emphasis upon employee development programs and activities to address executive succession, 

such as initiating a Senior Executive Service (“SES”) Candidate Development Program, implementing an 

Emerging Leaders Program for staff at the GS-11 level and above, and enhancing employee skills through 

initiation of agency-wide use of Individual Development Plans. 

♦ Through the Small Agency Human Resources Consortium, pursued development and implementation of the 

Electronic Official Personnel Folder (“eOPF”) system to convert all agency personnel records to digital 

format. 

♦ Refined the Commission's Continuity of Operations Plan dealing with recovery of operations in the event of 

displacement or disaster. Successfully conducted a Continuity of Operations (“COOP”) test in May 2007, 

activating the agency’s remote command center and verifying communications capabilities and access to 

mission critical systems. 

♦ Prepared budget justifications and estimates for the fiscal year 2008 Congressional budget and fiscal year 2009 

Office of Management and Budget (“OMB”) budget, and produced the agency’s fiscal year 2007 

Management’s Discussion and Analysis (“MD&A”), and its Performance and Accountability Report (“PAR”). 

As part of its program objectives for fiscal years 2008 and 2009, the Commission plans to conduct the 

following: 

♦ Analyze current uses of antitrust immunity by vessel operators and MTOs operating in U.S. trades, and assess 

competitive impacts of European Union (“EU”) action repealing the block exemption for liner shipping 

conferences in US-EU liner trades. 

♦ Continue to participate in activities to help identify any service contract provisions that may bear on maritime 

security concerns. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 7

♦ Evaluate how effectively the agency monitors agreements that are designed to address specific supply-chain 

issues such as port-related congestion, security, and environmental problems affecting local communities and 

industry stakeholders. 

♦ Update the agency’s Strategic Plan. 

♦ Continue timely and expert monitoring program over agreement activities and trade conditions relevant to our 

most important U.S. ocean trading lanes, and prepare reports and economic analyses covering a wide variety 

of developments impacting key U.S. trades and supply chain arrangements. 

♦ Continue implementation of Homeland Security Presidential Directive 12 (“HSPD-12”), the government-wide 

identification card system. 

♦ Continue to process and review agreements, service contracts and NSAs to ensure equitable trading conditions 

and focus enforcement efforts on activities which have market-distorting effects or which impact most directly 

on the shipping public. 

♦ Fine-tune standard operating procedures for monitoring OTI/NVOCC tariff activities as related to bonding and 

licensing requirements for compliance with the Commission’s rules regarding OTI financial responsibilities 

and tariff requirements. 

♦ Complete evaluation of the impact of the new agreement rules on the industry and the internal processes of the 

agency, adopted by the Commission in FMC Docket No. 03-15, Ocean Common Carrier and Marine 

Terminal Operator Agreements Subject to the Shipping Act of 1984. 

♦ Further enhance public access to filed agreements, as well as developing and implementing procedures for the 

electronic filing of agreements, agreement monitoring reports, and agreement meeting minutes. 

♦ Continue, through its Inspector General program, to conduct and supervise audits and investigations relating to 

the programs and operations of the FMC, and make recommendations designed to promote efficiency and 

effectiveness in agency administration, and to combat fraud and abuse. 

 

♦ Develop a rule to provide additional remedial alternatives in addressing cruise lines that fail to file PVO 

reports timely. 

♦ Redesign the functionality of the OTI list on the homepage to include more information and improve search 

capability. 

♦ Implement a plan to support the electronic filing of OTI bonds. Electronic submission will contribute to a 

speedier and more efficient licensing process. 

♦ Develop a plan for automating the preparation and filing of Form FMC-131, the PVO Application form. 

♦ Migrate to an updated platform for paperless check conversion for financial transactions, and implement use 

of Pay.gov for agencywide acceptance of electronic payments. 

♦ Continue to update and upgrade the Commission’s technology infrastructure, including completion of the IPv6 

upgrade and implementing Voice over Internet Protocol (“VoIP”). 

♦ Implement migration to eOPF-compliant electronic records system, including scanning of applicable 

employee records now in paper format and providing training for human resources staff and agency employees 

as to the capabilities of and access to the new system. 

 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 8

♦ Assess expansion of the agency’s telework program to encourage employee usage and advance efficiency of 

operations. 

♦ Implement an on-line catalogue of Commission’s reference and law library materials, facilitating desktop 

access for agency employees. 

♦ Link the new PIERS data analysis system to the enhanced Agreements database to facilitate the review of new 

agreements or modification of existing agreements. 

♦ Enhance the usefulness of service contract and NSA data through upgrades to the SERVCON system so that 

trends and relevant developments may be determined more easily. 

The Commission’s budget estimates for fiscal year 2009 in the amount of $23,953,000 provide funding for 131 

work years (“WY”) of employment. Funding at this level enables the Commission to maintain and continue its 

existing statutory programs effectively and efficiently. The fiscal year 2009 request is an increase of $1,881,000 

over the fiscal year 2008 appropriation level. The increase is comprised of $1,467,000 for salaries and benefits to 

support current Commission programs, $24,000 for travel cost increases, and $390,000 in administrative expenses. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 9

*On August 2, 2007, the President nominated Commissioner Anderson for an additional term and 

designated him Chairman upon his confirmation.

Federal Maritime Commission

Organization Chart

(February 4, 2008)

Office of Equal

Employment

Opportunity

Office of the

Inspector General

Office of the

Secretary

Office of

Operations

Office of

Administration

Office of the

General Counsel

Commissioner

(DYE)

Commissioner

(BRENNAN)

Chairman*

(VACANT)

Commissioner

(CREEL)

Commissioner

(ANDERSON)

Bureau of

Certification

 and Licensing

Bureau of

Enforcement

Bureau of Trade

Analysis

Office of

Administrative

Law Judges

Office of

Consumer Affairs

and Dispute

Resolution

Services

Area

Representatives

New York

Los Angeles

Houston

New Orleans

Seattle

South Florida

Office of Financial

Management

Office of Human

Resources

Office of

Information

Technology

Office of

Management

Services
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 10

Appropriation History Graph (000s)

1999-2009

15,466

16,447 16,591

18,362 18,531 18,900

19,496

20,294 20,427

22,072

23,953

0

5,000

10,000

15,000

20,000

25,000

30,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Fiscal Year

Appropriation
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 11

Full-Time Equivalent ("FTE") Graph 

1999-2009

131

127

119 121 124

129 129 127

121

128

139

180 180 180 180 180 180 180 180 180 180 180

0

20

40

60

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Fiscal Year

Full-Time Equivalent
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 12

ID Code: 

65-0100-0-1-403

2008 Estimate 2009 Estimate Difference Difference %

Direct obligations:

11.1 Full-Time Permanent 12,632,000 13,801,000 1,169,000 9.25%

11.3 Other than full-time permanent 68,000 70,000 2,000 2.94%

11.5 Other personnel compensation 0 0 0 0.00%

11.9 Total personnel compensation $12,700,000 $13,871,000 $1,171,000 9.22%

12.0 Civillian personnel benefits 2,939,000 3,235,000 296,000 10.07%

21.0 Travel and transportation of 

persons 261,000 285,000 24,000 9.20%

22.0 Transportation of things 12,000 15,000 3,000 25.00%

23.1 Rental payments to GSA 3,197,000 3,288,000 91,000 2.85%

23.2 Communications, utilities, and 

miscellaneous charges 225,000 228,000 3,000 1.33%

24.0 Printing and reproduction 153,000 174,000 21,000 13.73%

25.0 Other services 2,292,000 2,626,000 334,000 14.57%

26.0 Supplies and materials 230,000 231,000 1,000 0.43%

31.0 Equipment 63,000 0 -63,000 -100.00%

Totals $22,072,000 $23,953,000 $1,881,000 8.52%

FEDERAL MARITIME COMMISSION

Appropriation: Salaries and Expenses

Budget Year: 2009

Summary of Requirements
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 13

2007 2008 2009

Actual Estimate Estimate

Formal Proceedings 6,139,510 6,952,000 8,042,000

Equal Employment Opportunity 166,244 186,000 199,000

Inspector General 490,044 534,000 529,000

Operations 9,213,534 9,999,000 10,664,000

Administration 4,414,067 4,401,000 4,519,000

 Total Obligations 20,423,399 22,072,000 23,953,000

Program by Activities

FEDERAL MARITIME COMMISSION
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 14

2007 Actual 2008 Estimate 2009 Estimate

Workyears Workyears Workyears

Formal Proceedings 34 37 39

 Office of Commissioners 7 10 11

 Office of the Secretary 14 13 14

 Office of the General Counsel 11 12 12

 Office of Administrative Law Judges 22 2

Office of Equal Employment Opportunity 11 1

Inspector General 33 3

Office of Operations 58 62 64

 Office of the Director 45 5

 New York Area Representative 22 2

 New Orleans Area Representative 11 1

 Los Angeles Area Representative 11 1

 Houston Area Representative 11 1

 South Florida Area Representative 22 2

 Seattle Area Representative 11 1

 Bureau of Trade Analysis 19 20 21

 Bureau of Certification and Licensing 17 19 19

 Bureau of Enforcement 10 10 11

Office of Administration 23 24 24

 Office of the Director 44 4

 Office of Information Technology 66 6

 Office of Human Resources 34 4

 Office of Financial Management 55 5

 Office of Management Services 55 5

Total Work Years (FTE) 119 127 131

FEDERAL MARITIME COMMISSION

Offices

Summary of Employment
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 15

WY Amount WY Amount WY Amount WY Ammount

Permanent 

Employment 118 11,775,693 126 12,632,000 130 13,801,000 4 1,169,000

Temporary and 

Part-Time 

Employment 1 62,458 1 68,000 1 70,000 0 2,000

Overtime 0 0 00

Awards 0 0 00

Total Salaries 119 11,838,151 127 12,700,000 131 13,871,000 4 1,171,000

Personnel Benefits 2,586,722 2,939,000 3,235,000 296,000

Total Salaries and 

Benefits 119 14,424,873 127 15,639,000 131 17,106,000 4 1,467,000

FEDERAL MARITIME COMMISSION

2007 Actual 2008 Estimate 2009 Estimate Difference

Summary of Salaries and Benefits Expenses

The salaries estimates for fiscal year 2009 are increased by $1,171,000 over fiscal year 2008. The funding 

provides for annualization costs of 2008 salary increases; for general schedule pay step increases (within 

grades); for the anticipated 2009 pay increase @ 3.0 %, and for career-ladder promotions. This request funds the 

staffing anticipated to be on board when fiscal year 2009 begins. 

Personnel benefits amount to $3,235,000 in fiscal year 2009 for current programs, which includes the FMC’s 

contribution to Civil Service Retirement System (“CSRS”), Federal Employee Retirement System (“FERS”), 

Social Security, group life insurance and Federal Employee’s Health Benefits (“FEHB”), and worker’s 

compensation and medical benefits. This is an increase of $296,000. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 16

2007 Actual 2008 Estimate 2009 Estimate Difference

Travel 185,566 261,000 285,000 24,000

Adminstrative Expenses 5,812,960 6,172,000 6,562,000 390,000

 Transportation of Things 7,000 12,000 15,000 3,000

 Rental Payments to GSA 2,977,981 3,197,000 3,288,000 91,000

 Communications, Utilities and

 Miscellaneous Charges

 Printing and Reproduction 103,000 153,000 174,000 21,000

 Other Services 1,777,812 2,292,000 2,626,000 334,000

 Supplies and Materials 244,617 230,000 231,000 1,000

 Equipment 522,964 63,000 0 -63,000

Total Travel and Administrative 

Expenses 5,998,526 6,433,000 6,847,000 414,000

FEDERAL MARITIME COMMISSION

Summary of Travel and Administrative Expenses

179,586 225,000 228,000 3,000

Travel funding is necessary to allow Commission staff to meet with representatives of the shipping industry to 

resolve problems through direct negotiations, conduct on-site audits of carriers, consult with foreign trading 

partners to ensure comity in international regulatory affairs, and expand compliance oversight into interior U.S. 

points not otherwise readily accessible to FMC Area Representatives from their base port locations. Travel 

estimates are increased for fiscal year 2009 for anticipated per diem and airfare increases, as well as to 

accommodate planned, significant increases in outreach, alternative dispute resolution and compliance activities for 

the agency’s five Presidential appointees and agency staff, and to accommodate an increase in staff travel in 

furtherance of training opportunities and casework.

In fiscal year 2009, administrative expense estimates reflect a net increase of $390,000. Included in the request is a 

$91,000 increase in rent to accommodate rent rate increases. Additionally, transportation of things through Federal 

Express (“FEDEX”) is increased by $3,000, communications are increased by $21,000, printing and reproduction 

is increased by $21,000, supplies are increased by $1,000, and other services are increased by $334,000 for 

increases to commercial and government contracts. These increases are partially offset by a reduction of $63,000 

for furniture and equipment. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 17

Formal Proceedings Program 

The Offices of Commissioners, Secretary, General Counsel and Administrative Law Judges comprise the Formal 

Proceedings Program. Within this program, the Commission conducts hearings, renders formal decisions in the 

disposition of docketed cases, compiles and maintains all official documents arising from proceedings, and 

conducts external representation activities before the Congress, courts of law, and other agencies. The duties, 

responsibilities, and accomplishments of the offices within the program are provided in the following summary. 

 

Linking Program Funding to Strategic/Performance Goals

The Formal Proceedings program generally contributes to accomplishment of Strategies 1 through 3 of the 

Commission’s Annual Performance Plan by providing a forum for Commission action in formal matters 

ranging from rulemakings to facilitate compliance to issuance of Commission orders enforcing the Shipping 

Act. For fiscal year 2009 we have specifically linked the Formal Proceedings program to Strategy No .4: 

Technological Efficiencies in the Agency’s Strategic Plan. More specifically, pursuant to the Strategic Plan’s 

Outcome Goals 4.1: Streamline the Commission’s work processes through effective utilization of information 

technology, and 4.2: Use electronic technology for the receipt of documents filed with the Commission as 

envisioned by the Government Paperwork Elimination Act (“GPEA”), we are pursuing an initiative with 

Formal Proceedings to improve our services to stakeholders and the public. This improvement is intended to 

integrate and increase the use of information available internally by increasing the use of electronically 

submitted forms by regulated entities versus receipt of traditional paper-driven applications and processes. 

We are also linking Formal Proceedings to Strategic Plan Outcome Goal 4.4: Disseminate Commission and 

staff issuances through the use of electronic technology by increased uploading of Commission issuances to the 

agency’s website and encouraging the public to more frequently use this important vehicle of agency 

information to access and retrieve critical documents. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 18

Office of the Commissioners

The Chairman of the Commission is designated by the President of the United States and serves as the agency's 

chief executive and administrative officer. Accordingly, the Chairman has exclusive authority over agency 

personnel matters, organization and supervision, distribution of business and use of funds for administrative 

purposes. During most of fiscal year 2007, there was a vacancy in the Commission Chairmanship. The authority 

to execute administrative functions was therefore transferred to the remaining four Commissioners, who will retain 

this authority until a new Chairman is confirmed. On August 2, 2007, the President nominated Commissioner 

Anderson for an additional term and designated him to be Chairman upon his confirmation. 

The Commissioners are responsible for making decisions and determinations in the disposition of docketed cases, 

and ensuring the efficient, equitable and expeditious resolution of all matters arising under statutes administered by 

the Commission. The Commission promulgates rules and regulations and issues decisions which interpret, enforce 

and assure compliance with the 1984 Act, as amended by OSRA, the 1920 Act, FSPA, and P. L. 89-777. During 

the fiscal year ending September 30, 2007, the Commission issued 20 reports, orders, and notices in docketed 

proceedings. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 19

Office of the Secretary

The Office of the Secretary serves as the focal point for matters submitted to and emanating from the Commission. 

It is the public=s main contact point with the FMC. The Office receives and processes a variety of documents filed 

by the public, including: complaints initiating adjudicatory proceedings for alleged violations of the shipping 

statutes and other applicable laws; special docket applications and applications to correct clerical or administrative 

errors in service contracts or NSAs; all communications, petitions, notices, pleadings, briefs, or other legal 

instruments in administrative proceedings; and subpoenas served on the FMC, its members or employees. 

The Office is responsible for preparing and submitting regular and notation agenda matters for consideration by the 

Commission and preparing and maintaining the minutes of actions taken by the Commission on these matters; 

issuing orders and notices of actions of the Commission; maintaining official files and records of all formal 

proceedings and Commission regulations; issuing publications; and authenticating instruments and documents of 

the Commission. The Office also responds to information requests from Commission staff, the maritime industry, 

press, and the public; administers the Freedom of Information, Government in the Sunshine, and Privacy Acts; 

compiles historical Commission decisions; maintains a public reference/law library and a Docket Activity Library; 

manages the Commission=s Internet website; and participates in the development and coordination of agency-wide 

public relation/outreach strategies and initiatives. The Office of the Secretary also oversees the Office of Consumer 

Affairs and Dispute Resolution Services. 

During fiscal year 2007, the Office of the Secretary continued to administratively process and direct all major 

filings addressed to the Commission and its component offices, including agreements filed under section 5 of the 

1984 Act, which must be reviewed and processed within 45 days. Through the Office of the Secretary the 

Commission also issued 20 orders in docketed proceedings. 

The Office serves as the Commission’s public information/press office. Accordingly, it prepares or coordinates the 

preparation of Commission news releases; responds to public and press inquiries or directs inquiries to the 

appropriate Commission bureau/office; and monitors the trade press for matters of agency interest for referral to 

the Chairman, Commissioners and staff. 

The Office also remained involved in the Commission=s ongoing effort to expand contact with all segments of the 

maritime community and the public during the fiscal year. Several initiatives were undertaken by Commission 

staff to improve industry outreach, including updating educational and informational material. 

The Office continued to make improvements to the Commission’s website by adjusting how information is 

presented and increasing the amount of information available. The Office coordinated and posted new and revised 

Frequently Asked Questions and updated links throughout the Commission’s site. The Office continues to evaluate 

the overall usefulness of the site and works closely with other offices and bureaus to improve its content and userfriendliness. 

The process of electronically scanning/imaging Commission records also continued during fiscal year 2007. Data 

migration from the old system to the new one was completed, and the new system became fully functional during 

the fiscal year. The new system has helped support the agency’s initiatives for continuity of operations by 

improving preservation of and Commission staff access to Commission documents, as well as improving 

Commission staff response time to public inquiries and public access to electronic files. In addition to continuing 

to scan its own office files, during fiscal year 2007, the Office commenced scanning documents from the agency’s 

Office of the General Counsel and Bureau of Enforcement. It also began planning for the scanning process for the 

agency’s Bureau of Trade Analysis, the Bureau of Certification and Licensing and the Commissioners’ offices. 

 

During fiscal year 2007, the Office continued to take the lead in accomplishing the agency’s performance goals 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 20

related to making more Commission information and filed documents available electronically and to improving 

responsiveness to requests for public information. Specifically, the Office continued to make key documents filed 

in formal proceedings available through its website; integrated the Commission’s internal complaints database with 

other internal databases; and began the process for redesigning the agency’s Intranet. 

In fiscal year 2008, the Office will complete and launch a new version of the agency’s Intranet. The Office will 

also complete assessments and evaluate recommendations for the development of an online catalogue for the 

Commission’s law/reference library collection. In fiscal year 2009, the Office will implement the plan for the 

online catalogue for the agency’s law/reference library collection. This plan will employ technology to improve 

workforce productivity by providing an in-house library access station, as well as online access of the catalogue to 

all staff on their individual desktops. 

Also, during fiscal year 2008, the Office plans to begin collecting or refining data that will serve as a benchmark 

for additional quantitative performance goals and measures. Initially, plans are to collect data with respect to the 

number of complaints or investigations completed within a given timeframe; the percentage of Commission 

decisions or issuances posted to the Commission’s website within a given timeframe; and the processing time for 

Freedom of Information Act (“FOIA”) requests. This information will be used to develop additional quantitative 

performance measures and goals for fiscal year 2009. 

Office of Consumer Affairs and Dispute Resolution Services (“CADRS”)

The Office of Consumer Affairs and Dispute Resolution Services is responsible for developing and implementing 

the Commission's Alternative Dispute Resolution ("ADR") program. Through this program, the Commission 

provides services to assist parties in resolving disputes and shipping problems in the U.S. ocean shipping 

commerce. These include a broad range of services designed to avoid the expense and delays inherent in litigation, 

and to facilitate the flow of U.S. ocean commerce. 

CADRS encourages parties to avail themselves of mediation or other ADR processes such as conciliation, 

facilitation, fact finding, mini-trials, or arbitration as means to resolve disputes. The Commission makes trained 

neutrals, such as mediators, available to facilitate the resolution of shipping disputes, whether prior to or after 

commencement of the litigation process. If parties prefer outside neutrals, the Office will assist parties in locating 

acceptable neutrals such as mediators, with appropriate expertise. 

During fiscal year 2007, CADRS staff provided mediation services in several dispute resolution proceedings, thus 

assisting parties in avoiding significant litigation costs and risks. CADRS also provides ombudsman services to 

participants in ocean shipping transactions. Typical complaints include situations where an NVOCC or VOCC 

has placed a lien on cargo in its possession, often for sums owed under a different contract of carriage, and cases in 

which an NVOCC has received cargo from its customer and taken payment for the transportation of the cargo, but 

failed to deliver the cargo. Tracking the whereabouts of a shipment can be difficult, and often additional charges 

have accrued, necessitating payment of additional funds to obtain release of the shipment. 

During fiscal year 2007, 509 complaints were received that necessitated the opening of a case to provide dispute 

resolution services. These included 220 complaints about cruise issues, 144 about household goods matters, and 

145 about cargo shipment matters. During 2007, cargo shipment complaints involved more complex legal issues 

than had been typical in previous years. An increased portion of complaints involved demurrage and detention 

issues, the failure to present accurate original bills of lading, and failure to release one party’s shipments as a result 

of prior debts of unrelated co-loading partners. In addition to complaints, a large volume of routine information 

requests was processed, with answers being provided on a relatively quick basis. 

For the first time in several years, fewer household goods complaints were received than for other cargo matters. 

This may have been attributable to improved outreach and the previous year’s institution of a formal Commission 

investigation of several problem movers. In addition to opening that proceeding, injunctions were obtained against 

several companies and individuals to prohibit their continued operation. As a result, several entities ceased 

operations, thereby reducing the number of complaints against those entities. In addition, the Commission's 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 21

website has been expanded to provide consumer advice and to caution consumers to deal only with properly 

licensed OTIs. 

With respect to passenger matters, a cruise line that had ceased operations during fiscal year 2004 approached 

Commission staff for the purpose of closing out an existing escrow account. CADRS worked closely with the 

line’s Chief Executive Officer in order to resolve 29 complaints remaining from passengers affected by the 2004 

cancellation of voyages. 

Another function of CADRS includes the adjudication of small claims through informal proceedings under 46 CFR 

Part 502, Subpart S. Office personnel serve as Settlement Officers in such cases, which involve complaints seeking 

reparations up to $50,000 for violations of the shipping statutes. Those claims generally involve alleged prohibited 

acts in connection with the international transportation of goods, or the failure to establish, observe, and enforce 

just and reasonable regulations and practices. CADRS staff also evaluate and adjudicate applications for 

permission to apply other than tariff rates, and to waive or refund freight charges arising from various errors in 

tariff publications, an inadvertent failure to publish an intended rate, or a misquotation of a rate. 

In fiscal years 2008 and 2009, CADRS intends to further expand awareness of the ADR program through 

education and training and other outreach efforts. Further efforts will be made to increase shipping industry 

awareness of less adversarial, more cost-effective means of resolving disputes in a manner that enables the parties 

to control the outcome. Use of mediation, in particular, will be promoted to assist in resolving formal proceedings 

and other significant disputes. CADRS will continue to make consumer protection information available and will 

expand its outreach through various websites and media sources. The real value of these efforts will be the number 

of consumers that are forewarned and thereby avoid problems. Through this means, assistance may be provided to 

many more consumers than could be possible through post-shipment problem resolution. Also, during fiscal year 

2008, CADRS plans to begin collecting data that will serve as a benchmark for additional quantitative performance 

goals and measures. Initially, the plan is to collect data with respect to the number of cases resolved, monetary 

savings to complaints, and the number of cases closed within a given time frame. Performance goals for fiscal 

year 2009 will be based on these benchmarks. 

Library

The Office of the Secretary also administers the Commission’s Library. The Library serves the 

Commission's research and information needs, and is a specialized repository of current and basic materials 

primarily covering the shipping industry, the history of shipping, and regulations covering all phases of shipping in 

the U.S. foreign trade. It contains a variety of books, directories, encyclopedias, journals, magazines, reports, 

microforms, and videos. The Library also contains material on several related fields such as engineering, 

economics, political science, and a collection of legal publications. The Library collection includes law 

encyclopedias, engineering textbooks, legal treatises, and selected titles of the National Reporter system. The 

Library’s holdings consist of approximately 8,700 volumes and numerous microfiches, CD-ROMs, and on-line 

services. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 22

Office of the Secretary

On Hand 

09/30/06 Receipts Output

On Hand 

09/30/07 Receipts Outputs

On Hand 

09/30/08 Receipts Outputs

On Hand 

09/30/09

Commission Docketed 

Proceedings (Formal, 

Special & Informal) 14 14 20 8 25 25 8 25 25 8

Commission Non-Docketed 

Proceedings 0 0 0 0 5 5 0 5 5 0

Service Contract 

Correction Applications 0 0 0 0 2 2 0 2 2 0

Non-Docketed Informal 

Complaints * 158 509 471 196 530 580 146 560 600 106

Docketed Informal 

Complaints * 18 7 5 20 6 14 12 6 10 8

Special Dockets 0 1 1 0 1 1 0 1 1 0

Agenda Items 0 163 163 0 100 100 0 90 90 0

Pages of Minutes 0 190 190 0 110 110 0 100 100 0

Federal Register Notices 0 281 281 0 300 300 0 300 300 0

FOIA Requests 1 16 13 4 40 40 4 50 50 4

Certifications 0 14 14 0 10 10 0 10 10 0

* - The count for the number of items on hand on 09/30/06 has been adjusted to correct database errors.

Formal Proceedings Program

Statistical Workload Summary

Workload Units Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 23

Office of the General Counsel

The General Counsel provides legal counsel to the Commission. This includes reviewing staff recommendations 

for Commission action for legal sufficiency, drafting proposed rules to implement Commission policies, and 

preparing final decisions, orders, and regulations for Commission review. In addition, the Office of the General 

Counsel (“OGC”) provides written and oral legal opinions to the Commission, its staff, and the general public in 

appropriate cases. As described in more detail below, the OGC also represents the Commission before the courts 

and Congress and administers the Commission’s international affairs program. 

Decisions 

The following are adjudications representative of matters prepared by the OGC: 

Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority, [Docket No. 02-08]; International 

Shipping Agency, Inc. v. The Puerto Rico Ports Authority, [Docket No. 04-01]; and San Antonio Maritime 

Corp. and Antilles Cement Corp. v. Puerto Rico Ports Authority, [Docket No. 04-06], 30 S.R.R. 1339 (March 5, 

2007)

These cases came before the Commission for a determination of whether the Puerto Rico Ports Authority 

(“PRPA”) is an arm of the Commonwealth of Puerto Rico and therefore entitled to sovereign immunity. Odyssea 

Stevedoring of Puerto Rico, Inc., International Shipping Agency, Inc., San Antonio Maritime Corp. and Antilles 

Cement Corp. (collectively “complainants”) allege that PRPA’s marine terminal leasing practices violated sections 

10(b)(10), 10(d)(1), 10(d)(3), and 10(d)(4) of the Shipping Act. Further, Intership alleges PRPA violated section 10

(a) (3) of the Shipping Act, by failing to act in accordance with the terms of an agreement filed with the 

Commission. PRPA filed motions for summary judgment or motions to dismiss in all three cases, arguing that the 

complaints were barred by PRPA’s sovereign immunity as an arm of the Commonwealth of Puerto Rico. In 

Odyssea and Intership, the ALJ ruled that PRPA was not entitled to sovereign immunity. The Commission, sua 

sponte, decided to review the ALJ’s decision. On November 30, 2006, the Commission issued an order, on a 3-2 

vote, finding that PRPA is not an arm of the Commonwealth of Puerto Rico and is therefore not entitled to 

sovereign immunity. The Commission’s order was appealed to the U.S. Court of Appeals for the D.C. Circuit 

(Case No. 16-1407). The Court heard oral argument on October 26, 2007, and the case is currently pending 

decision. 

The Lake Charles Harbor and Terminal District v. West Cameron Port, Harbor and Terminal District [Docket 

No. 06-02], 30 S.R.R. 1043 (June 7, 2007) 

This proceeding was initiated by complaint of Lake Charles Harbor and Terminal District (“Lake Charles Harbor”) 

alleging that West Cameron Port, Harbor and Terminal District (“West Cameron”) threatened to impose 

“wharfage” on the passage of vessels through the Calcasieu River Ship Channel on the way to, or from, Lake 

Charles, Louisiana, and that such wharfage does not bear a reasonable relationship to any services, facilities or 

benefits provided by West Cameron. Lake Charles Harbor alleged West Cameron violated sections 10(d) (1), 10(d) 

(4) and 5(a) of the 1984 Act. 

By Order dated June 7, 2006, the ALJ granted the motion to dismiss filed by West Cameron, ruling that the 

Commission lacked subject matter jurisdiction because, among other things, West Cameron is not a marine 

terminal operator under the Shipping Act. Lake Charles Harbor appealed the dismissal to the full Commission for 

the purpose of determining whether the Commission has subject matter jurisdiction over the matters alleged in the 

Complaint. The appeal was denied and the proceeding was discontinued on August 2, 2007. 

Premier Automotive Services, Inc. v. Robert L. Flanagan and F. Brooks Royster, III, [Docket No. 06-03], 30 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 24

S.R.R. 970 (March 31, 2006) 

Premier Automotive Services, Inc. (“Premier”) filed a complaint against Robert L. Flanagan and F. Brooks 

Royster, III (collectively “Flanagan”) alleging that Flanagan’s marine terminal leasing practices violated sections 

10(b)(10), 10(d)(1) and 10(d)(4) of the Shipping Act, 46 U.S.C. §§ 41102, 41104 and 41106. Mr. Flanagan and 

Mr. Royster were the Maryland Secretary of Transportation and the Executive Director of the Maryland Port 

Administration (“MPA”), respectively, and were sued because MPA possesses sovereign immunity. Flanagan filed 

a Motion to Dismiss arguing that (1) the case is barred by constitutional principles of state sovereign immunity; (2) 

the Shipping Act does not authorize private complaints for injunctive relief, and (3) the respondents should not be 

held liable as individuals under provisions of the Shipping Act which are specifically applicable to common 

carriers, OTIs and MTOs. Premier responded to the motion arguing that the action is within the Ex parte Young, 

209 U.S. 123 (1908), exception to state sovereign immunity and that the Shipping Act provides for prospective 

injunctive relief. The ALJ granted the motion to dismiss on March 31, 2006, finding that the complaint was barred 

by sovereign immunity since Young did not apply. Premier appealed the ALJ’s decision to the Commission. Oral 

argument was heard on June 13, 2007. The case is currently pending before the Commission. 

Litigation

The OGC represents the Commission in litigation before courts and other administrative agencies. Although the 

litigation work largely consists of representing the Commission upon petitions for review of its orders filed with 

the U.S. Courts of Appeals, the OGC also participates in actions for injunctions, enforcement of Commission 

orders, actions to collect civil penalties, and other cases where the Commission’s interest may be affected by 

litigation. 

The following is representative of matters litigated by the OGC: 

Puerto Rico Ports Authority v. The Federal Maritime Commission and the United States of America, D.C. 

Circuit, Case No. 06-1407. 

This proceeding is an appeal of the Commission’s November 30, 2006, order in Docket Nos. 02-08 (Odyssea 

Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority); Docket No. 04-01 (International Shipping 

Agency, Inc. v. The Puerto Rico Ports Authority); and Docket No. 04-06 (San Antonio Maritime Corp. and 

Antilles Cement Corp. v. Puerto Rico Ports Authority). The Commission’s order, on a 3-2 vote, found that the 

PRPA is not an arm of the Commonwealth of Puerto Rico and is therefore not entitled to sovereign 

immunity. PRPA appealed the order, arguing that it is entitled to sovereign immunity. The Commission 

proceedings before the ALJ have been stayed by the Court pending resolution of the appeal. The Commission’s 

brief was submitted on June 28, 2007; oral argument was heard on October 26, 2007. This appeal is pending 

decision by the Court of Appeals. 

Legislative Activities 

The OGC represents the Commission’s interests in all matters before Congress. This includes preparing testimony 

for Commission officials, responding to Congressional requests for information, commenting on proposed 

legislation, and responding to the Office of Management and Budget (“OMB”) requests for views on proposed 

bills and testimony. 

During fiscal year 2007, 105 bills, proposals and Congressional inquiries were referred to the OGC for comment. 

The office prepared briefing materials for a confirmation hearing before the U.S. Senate Committee on Commerce, 

Science and Transportation. The OGC also consulted with Congressional staff on the continuing efforts to revise, 

codify and enact certain maritime laws as part of Title 46, U.S. Code (“U.S.C.”), Shipping, which was signed into 

law October 6, 2006. 

In fiscal years 2008 and 2009, the OGC will provide assistance and technical advice to Congress. The Commission 

may recommend legislative amendments as necessary to ensure uniformity with other federal initiatives and to 

allow for the efficient and secure flow of ocean transportation. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 25

Other Significant Activity

The Port of Los Angeles and Port of Long Beach Proposed Clean Trucks Program, and FMC Agreement No. 

201170, Los Angeles and Long Beach Port Infrastructure and Environmental Programs Cooperative Working 

Agreement 

The Port of Los Angeles and the Port of Long Beach (“the Ports”) are members of an agreement, currently on file 

with the Commission, that permits them to discuss, consult, and agree on the establishment and implementation of 

programs and strategies to improve port-related transportation infrastructure and to decrease port-related air 

pollution (FMC Agreement No. 201170, Los Angeles and Long Beach Port Infrastructure and Environmental 

Programs Cooperative Working Agreement). This agreement became effective on August 10, 2006. The Ports are 

currently in the process of developing a Clean Trucks Program as the first initiative under their joint Clean Air 

Action Plan. The Ports’ goal is to significantly reduce air pollution from port drayage trucks by replacing or 

retrofitting an estimated 16,000 trucks servicing the Ports over a five-year period. In early November 2007, each 

of the Ports adopted identical tariffs requiring a progressive ban on older and non-retrofitted drayage trucks, 

beginning October 1, 2008. The Ports are considering ways to finance and implement the Clean Trucks Program, 

including a possible cargo fee and a concessions system, which may require trucking companies to use only 

employee drivers, rather than independent contractors. The Commission has received information and letters from 

various stakeholders expressing support for or opposition to certain aspects of the proposed Clean Trucks Program. 

Certain groups have asserted that the proposed Clean Trucks Program may violate provisions of the Shipping Act, 

46 U.S.C. §§ 40101-41309 (2006). The Commission held a closed meeting on November 28, 2007, to consider the 

proposed Clean Trucks Program and continues to monitor developments at the Ports. 

Foreign Shipping Restrictions and International Affairs 

The OGC is responsible for the administration of the Commission's international affairs program. The OGC 

monitors potentially restrictive foreign shipping laws and practices, and makes recommendations to the 

Commission for investigating and addressing such practices. The Commission has the authority to address 

restrictive foreign shipping practices under section 19 of the 1920 Act and the FSPA. Section 19 empowers the 

Commission to make rules and regulations governing shipping in the foreign trade to adjust or meet conditions 

unfavorable to shipping. The FSPA directs the Commission to address adverse conditions that affect U.S. carriers 

in foreign trade and that do not exist for foreign carriers in the U.S. 

In fiscal year 2007, the Commission continued to monitor potentially restrictive shipping practices of the 

Government of Japan, including the effects of amendments to the Port Transportation Business Law enacted in 

2000 and 2005. The Commission continued to receive and evaluate semi-annual reports from its proceeding in 

Docket No. 96-20, Port Restrictions and Requirements in the United States/Japan Trade. The OGC also pursued 

informally several matters that involved potentially restrictive foreign practices including new legislation, new 

interpretations of existing legislation and new regulations of non-domestic carriers’ terminal handling charges. 

OGC staff served as technical advisors to the U.S. delegation to the semi-annual US-Japan Regulatory Reform 

talks held in Washington, D.C. on March 26 and 27, 2007. 

The Commission’s Permanent Task Force on International Affairs, chaired by the Deputy General Counsel, is a 

network of representatives from a number of Commission bureaus and offices. The Task Force meets to exchange 

information regarding new or continuing areas of concern relating to restrictive foreign shipping practices possibly 

necessitating action under one of the Commission’s statutory authorities in this area. The Task Force was internally 

evaluated in 2006 and a draft set of recommendations to improve its performance and effectiveness were outlined. 

These recommendations are presently under review. 

Another responsibility of the OGC is the identification and verification of controlled carriers subject to section 9 of 

the Shipping Act. Common carriers that are owned or controlled by foreign governments are required to adhere to 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 26

certain requirements under the Act, and their rates are subject to Commission review. The OGC investigates and 

makes appropriate recommendations to the Commission regarding the status of potential controlled carriers. The 

OGC, in conjunction with other Commission components, also monitors the activities of controlled carriers. 

In fiscal years 2008 and 2009, the OGC will continue to take the lead in accomplishing the agency's performance 

goals relating to eliminating restrictions that unjustly disadvantage U.S. interests. Through the Permanent Task 

Force on International Affairs, OGC will monitor foreign laws and practices to determine whether there are any 

unjust non-market barriers to trade. The OGC will recommend appropriate action to the Commission. 

Designated Agency Ethics Official

The Designated Agency Ethics Official is administratively within the Office of the Chairman, but the position is 

performed presently in an acting capacity as a collateral duty by the General Counsel. 

The Commission's Ethics Official is responsible for administering public and confidential financial disclosure 

systems in order to prevent conflicts of interest from arising in the execution of the agency's regulatory functions. 

The Ethics Official conducts annual ethics training and provides the day-to-day advice and guidance to ensure 

compliance with the standards of ethical conduct that apply to Executive Branch officials. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 27

On Hand 

09/30/06 Receipts Output

On Hand 

09/30/07 Receipts Outputs

On Hand 

09/30/08 Receipts Outputs

On Hand 

09/30/09

Litigation 2 2 1 3 2 2 3 3 3 3

Legislation 0 105 105 0 110 110 0 115 115 0

Legal Opinions, case 

summaries, decisions and 

final orders 0 118 118 0 125 125 0 130 130 0

Sec. 19/sec. 13 (b)(5) FSPA 

Proceedings 1 0 0 1 2 1 2 1 1 2

International affairs reports, 

policy papers, briefings, 

controlled carrier 

recommendations 0 30 30 0 35 35 0 40 40 0

Speeches, articles, 

presentations 0 15 15 0 20 20 0 25 25 0

Interagency & international 

group participation 0 30 30 0 35 35 0 40 40 0

Response to requests for 

information, oral & w ritten 0 275 275 0 280 280 0 285 285 0

Formal Proceedings Program

Office of the General Counsel

Statistical Workload Summary

Workload Units Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 28

Office of Administrative Law Judges

Administrative law judges regulate the course of proceedings, conduct hearings, approve settlements, and render 

decisions in adjudicatory proceedings held after receipt of a private complaint or when instituted by the 

Commission. ALJs have authority to administer oaths and affirmations; issue subpoenas; rule upon motions and 

offers of proof; receive evidence; authorize depositions; regulate the course of hearings; hold pre-hearing 

conferences for the settlement or simplification of the issues involved; refer matters to mediation when 

appropriate; dispose of procedural requests; act as settlement judges in particular cases; and take any other action 

authorized by agency rule or the Administrative Procedure Act. 

The case load of the Office is governed by the number of complaints and applications filed, the number of formal 

proceedings instituted by the Commission on its own motion, and other matters assigned in furtherance of the 

Commission's regulatory functions. Proceedings which come before the Office include, but are not limited to, the 

adjudication of discriminatory or unfair and unreasonable practices between various parties subject to the shipping 

acts, and adjudication of shipper complaints. ALJs also can process special docket applications on an as-needed 

basis. 

At the beginning of fiscal year 2007, there were 10 formal proceedings pending before the Office of ALJs. During 

the year, 12 formal proceedings and one informal proceeding were added (the informal proceeding subsequently 

was converted to a formal proceeding). The Office of ALJs issued an initial decision in two formal proceedings. 

Two formal proceedings were dismissed, and two formal proceedings were settled. 

 

Workload 

Units

On Hand 

09/30/06 Receipts Output

On Hand 

9/30/07 Receipts Outputs

On Hand 

09/30/08 Receipts Outputs

On Hand 

09/30/09

Formal 

Proceedings 10 13 4 19 9 8 20 5 9 16

Special 

Proceedings 0 00 0 0 0 0 0 0 0

Informal 

Proceedings 0 00 0 0 0 0 0 0 0

Formal Proceedings Program

Office of the Administrative Law Judges

Statistical Workload Summary

Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 29

Office of Equal Employment Opportunity Program

The Office of Equal Employment Opportunity (“EEO”) follows Federal EEO and personnel management laws, 

procedures and regulations to develop, implement and manage a comprehensive program of equal employment 

opportunity. The EEO program is statutorily mandated with required activities in complaints processing, 

adjudication, affirmative employment program planning, workforce diversity management, special emphasis 

programs, community outreach, monitoring, and evaluation. 

The Chairman of the Commission is responsible for ensuring equal opportunity in the Commission. The Chairman 

has delegated this authority to the Director of Equal Employment Opportunity. Operational responsibility for 

compliance with EEO policies and programs lies with the Commission's front-line managers. The Director of EEO 

(“DEEO”) works independently under the direction of the Chairman to provide advice to the Commission's senior 

staff and management in improving and carrying out its policies and program of non-discrimination, workforce 

diversity and affirmative employment program planning. The DEEO arranges for EEO counseling or ADR for 

employees who raise allegations of discrimination; provides for the investigation, hearing, fact-finding, adjustment, 

or early resolution of such complaints of discrimination; accepts or rejects formal complaints of discrimination; 

prepares and issues decisions for resolution of formal complaints; and monitors and evaluates the program’s 

impact and effectiveness. In addition, the DEEO represents the agency on several intergovernmental committees, 

coordinates all affirmative program planning efforts, directs programs of special emphasis, and coordinates the 

activities of the Selective Placement and Federal Equal Opportunity Recruitment Coordinators. The DEEO also 

supervises two collaterally-assigned EEO counselors. 

The Office works closely with senior management and with the Commission's Office of Human Resources 

(“OHR”) to: (1) monitor affirmative employment programs; (2) expand outreach and recruitment initiatives; (3) 

improve the representation, career development and retention of women, minorities, and persons with disabilities; 

(4) provide adequate career counseling; (5) facilitate early resolution of employment-related problems; and (6) 

develop program plans and progress reports.

Significant accomplishments for fiscal year 2007: 

For the third year in a row, women and minorities continued to represent a majority of the workforce in fiscal year 

2007. Significant accomplishments include the following: (1) provided EEO briefings to senior staff and new 

employees; (2) continued providing information to employees about Internet sites with diversity/EEO-related 

information; (3) updated the No FEAR Act statistics on the FMC’s website at http://www.fmc.gov/home/

NoFearAct.asp and coordinated the No FEAR Act refresher training for all employees; (4) provided counseling 

assistance to Commissioners, managers, supervisors, and employees; (5) continued to provide support and 

assistance to managers and supervisors in maintaining and effectively managing a diverse workforce; (6) reviewed 

and assessed management and human resource activity and actions; (7) maintained an effective discrimination 

complaint process that resolved issues informally, expeditiously, and at the lowest possible level; (8) held special 

commemorative programs for all FMC employees for National Hispanic Heritage, National Disability 

Employment Awareness, National American Indian Heritage, African American History, Women’s History, Asian 

Pacific American, Gay and Lesbian Pride months and Dr. Martin Luther King, Jr. Day; (9) participated in meetings 

of several inter-agency councils in the special emphasis areas; (10) coordinated activities of the FMC’s Advisory 

Council on Women’s Issues; (11) participated in EEO-related training/conferences; (12) prepared all required 

affirmative employment program accomplishment reports and plans; and (13) managed the Commission’s 

Emerging Leaders Program. 

During fiscal years 2008 and 2009, the Office of EEO will continue all existing programs and initiate additional 

activities designed to increase an understanding of EEO concepts and principles, including monitoring workforce 

diversity, outreach, retention, and career-development initiatives. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 30

Inspector General Program

The Office of Inspector General (“OIG”) operates pursuant to the Inspector General Act of 1978 (1978 Act) (5 

U.S.C. App. 3) as amended in 1988. The 1988 amendments created additional statutory offices of inspector general 

at various designated Federal entities, including the FMC. 

The purpose of the 1978 Act, as amended, and as applicable to the FMC, is to create an independent and objective 

unit to conduct audits; review operations and programs; investigate possible fraud, waste, and mismanagement of 

Commission resources; and promote economy, efficiency and effectiveness in programs and operations 

administered by the FMC. 

The OIG is staffed by an Inspector General (“IG”), an Assistant Inspector General and an administrative assistant. 

The IG works independently under the general supervision of the Chairman. The IG does not report to, and is not 

subject to supervision by, any other officer or employee of the FMC. The OIG has memorandums of 

understanding (“MOUs”) with the FMC’s Office of the General Counsel for legal assistance when needed, and 

with Inspector General offices at the Social Security Administration and the Federal Trade Commission for 

criminal investigative assistance and audit quality assurance support, respectively. In addition, the Office utilizes 

the expertise of outside contractors to assist in performing specialized audits and reviews. 

During fiscal year 2007, the Office issued an audit of the agency’s fiscal year 2006 financial statements and a 

companion report to management containing financial-related findings and recommendations resulting from the 

audit. The OIG also issued reports to management on agency compliance with FISMA, including a vulnerability 

scan of the agency’s internal network and an external penetration test of its “firewall.” In addition to these 

statutorily-required reports, the OIG performed an audit of contract administration for a large consulting service 

contract and an evaluation of the accuracy of information reported to Congress, OMB and agency stakeholders in 

the Fiscal Year 2006 Performance and Accountability Report (“PAR”). An OIG audit report during the period 

questioned approximately $56,000 in agency expenditures, recommending that the agency collect these funds from 

the vendor. 

The office investigated allegations of wrongdoing by FMC staff, responded to two public requests to look into 

various maritime-related issues and referred five “hotline” complaints to the appropriate FMC program offices for 

disposition. 

. 

In fiscal year 2007, the OIG received a clean opinion from a peer review of its quality assurance program and 

performed an identical review of a sister OIG. The Office also prepared a narrative summary of management 

challenges facing the FMC for inclusion in the Fiscal Year 2006 PAR. The OIG contracted with an independent 

public accounting firm to assist the IG in issuing an opinion of the agency’s fiscal year 2007 financial statements. 

Finally, the OIG issued two semiannual reports to Congress discussing the Office’s audit and investigative activity 

for the fiscal year. 

In addition to these audit and investigative outcomes, the OIG revised its strategic plan for fiscal years 2008 - 

2013, developed a memorandum of understanding between the Office of Inspectors General at the FMC and the 

Federal Trade Commission to implement a quality assurance program for our audit function, and worked with 

FMC senior management to implement an internal control questionnaire to assist management to comply with 

regulations issued by the Office of Management and Budget in Circular A-123, Management’s Responsibility for

Internal Control. 

During fiscal years 2008 and 2009, the OIG will continue to place high priority on audits and reviews with the 

objective of improving agency programs and operations. The OIG will complete statutorily-required reviews to 

include an audit of the agency’s annual financial statements and an evaluation of the agency’s information security 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 31

program and privacy assurance controls as required by FISMA. 

The OIG will continue to actively participate in OIG community activities and maintain membership in the 

Executive Council on Integrity and Efficiency (“ECIE”) and the Federal Audit Executive Council (“FAEC”). The 

OIG will continue to work with the OMB, ECIE and FAEC on joint projects which affect the IG community. The 

Office will also continue to keep the FMC Chairman, Commissioners, OMB and the Congress fully informed 

regarding its audit and investigative activities. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 32

Operations Program

Linking Program Funding to Strategic/Performance Goals

The Office of Operations (“OPS”) is responsible primarily for the management and coordination of the 

agency’s program areas. As such, OPS specifically supports the goals of Compliance and Balanced 

Enforcement in the agency’s Strategic Plan. Under Compliance, OPS is specifically focused on Outcome Goal 

2.1, which focuses on increasing compliance with regulations directed toward ocean common carriers, PVOs 

and OTIs, and Outcome Goals 2.3 and 2.4, which focus on maintaining fair competition and protecting the 

public from unlawful activity. OPS has included such outcome measures as tracking investigations of Shipping 

Act violations, the closure rate of formal proceedings, the number of unlicensed OTIs qualifying for licenses 

and the percentage of new and amended OTI applications that are processed within 45 days. Finally, in support 

of Balanced Enforcement, OPS is specifically focusing on Outcome Goals 3.1: Assure carriers do not exercise 

their antitrust immunity in a manner that results in unreasonable practices, rate increases or rate decreases, 

and Outcome Goal 3.3 in the Agency’s Strategic Plan, which calls for consistent industry outreach and 

education to encourage voluntary compliance. Measures have been developed to evaluate our economic 

analysis in support of the carrier agreements program, and to emphasize compliance presentations to the 

industry. 

Office of Operations

Office of the Director 

The Director of Operations, as a senior staff official, is responsible to the Chairman for the management and 

coordination of the: 

Bureau of Trade Analysis; 

Bureau of Certification and Licensing; and 

Bureau of Enforcement. 

OPS oversees the development and operation of various Commission programs and recommends new programs 

and necessary changes in staff objectives. Also, the Director of Operations has been designated as the agency’s 

Performance Improvement Officer (“PIO”). Subject to the direction of the Chairman, the PIO supervises the 

Commission’s performance management activities, including development of the goals, plans and performance 

reports. 

In addition, OPS oversees the Commission’s Area Representatives. The Commission maintains a presence in Los 

Angeles, South Florida, New Orleans, New York, and Seattle through ARs based in each of those cities, and in 

fiscal year 2007 placed an additional AR in Houston, TX, due to significant growth in container volumes transiting 

the port in that area. These representatives serve other major port cities and transportation centers within their 

respective areas. In addition to monitoring and investigative functions, ARs represent the Commission within their 

jurisdictions, provide liaison between the Commission and the maritime industry and the shipping public, collect 

and analyze information of regulatory significance, and assess industry conditions. Liaison activities involve 

cooperation and coordination with other governmental agencies and departments, providing regulatory information 

and relaying Commission policy to the shipping industry and the public, and handling informal complaints within 

each representative's area of responsibility. ARs also work on Commission outreach through seminars, 

participation at various conferences and trade shows, presentations, and local community contacts. 

OPS continued to support the operational bureaus through oversight and guidance towards the accomplishment of 

many programmatic achievements during fiscal year 2007. In particular, OPS worked extensively with the bureaus 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 33

and other agency offices to review Commission rules and regulations with regard to business practices in the OTI 

sector. OPS worked with the agency’s Bureau of Certification and Licensing and the Bureau of Enforcement to 

report to the Commission with regard to emerging industry changes in the OTI sector. 

OPS continues to lead the Bureau of Enforcement and the Bureau of Certification and Licensing in review and 

coordination of compliance and enforcement policy. Significantly, OPS worked with the bureaus and other agency 

offices to take action against the illegal conduct of household goods movers. OPS worked with staff members from 

all bureaus to make technological advances, including work on the automated form FMC-18. 

OPS’ key objectives for fiscal years 2008 and 2009 include instituting the Commission’s policies by refining and 

enhancing agency programs and operations, as well as monitoring the accomplishment of agency performance 

goals. In particular, OPS will expand the agency’s outreach effort and raise public awareness of agency regulations 

and services. OPS also will review agency policies and regulations to ensure alignment between the FMC and the 

industry, and on automating certain processes. Finally, OPS will continue to refine cooperation and integration of 

the three agency bureaus. 

Bureau of Trade Analysis

The Bureau of Trade Analysis plans, develops, and administers Commission programs for the following activities: 

(1) monitoring general trade conditions and economic developments in liner shipping; (2) overseeing individual 

and concerted carrier and MTO activity; (3) developing economic studies and analyses in support of the 

Commission's regulatory responsibilities; (4) processing and analyzing carrier and marine terminal agreements; 

(5) providing expert economic testimony and support in formal proceedings, particularly regarding unfair foreign 

shipping practices; (6) processing, reviewing, and monitoring confidential service contracts and amendments filed 

by ocean common carriers, conferences, and agreements; (7) reviewing requests to correct clerical or 

administrative errors in service contracts; (8) ensuring that statements of certain essential terms associated with 

service contracts are published in tariffs and made available to the public; (9) auditing tariff publishing systems to 

ensure that tariffs are accessible and accurate; (10) processing FMC-1 registration forms submitted by carriers and 

conferences and posting and updating the location of carrier tariffs on the Commission’s website; (11) acting on 

special permission applications to deviate from tariff publishing rules; (12) monitoring the activities of statecontrolled carriers; and (13) supporting other Commission components with regard to the Commission’s regulatory 

requirements. 

The Bureau’s three operating offices under the supervision of the Bureau Director are: the Office of Agreements, 

the Office of Economics and Competition Analysis, and the Office of Service Contracts and Tariffs. The Office of 

Agreements is responsible for processing and analyzing carrier and marine terminal agreements filed with the 

Commission and maintaining various agreement databases. The Office of Economics and Competition Analysis 

develops and administers programs overseeing individual and concerted carrier activities, carriers' dealings with 

shippers and intermediaries, activities of state-controlled carriers in U.S. foreign commerce, foreign shipping 

practices, and overall U.S. liner trade conditions. The Office of Service Contracts and Tariffs is responsible for 

processing, reviewing, and monitoring confidential service contracts and NSAs and ensuring that the statements of 

certain essential terms associated with service contracts and NSAs are published and made available to the public.

Further, the Office ensures that carrier tariffs are accessible and accurate; that the location of carrier tariffs as 

submitted in FMC-1 registration forms is correct; and that those locations are published on the Commission’s 

website and updated on a periodic basis. 

Agreement Program Activities

The focus of the Bureau's agreement program is to analyze what impact a carrier or terminal agreement will have 

on competition, in particular whether it is likely that the agreement will result in an unreasonable increase in 

transportation cost or decrease in service. 

During fiscal year 2007, the Bureau received 181 carrier agreement filings and 10 terminal agreement filings. The 

Bureau reviewed, evaluated, and processed 179 carrier filings, including one pending from fiscal year 2006, and 11 

terminal filings, also including one pending from the previous fiscal year. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 34

Operational agreements, those involving the sharing of vessel space, and amendments to such agreements, 

continued to be the predominant type of agreement filing. These agreement filings accounted for over 47 percent of 

the total carrier agreement filings in 2007. Although the addition of parties increased TSA’s market position, the 

Bureau’s anticompetitive concerns were mitigated by the fact that rate levels in the transpacific declined by 5% 

from first quarter 2006 to first quarter 2007. Conferences, once the dominant pricing forum, have lost much of 

their influence over the last nine years. 

With regard to marine terminal agreements, after a slight increase in 2006, when 28 filings (including terminations) 

were received, there were only ten filings (including terminations) in fiscal year 2007. It would appear that 

terminal operators are continuing to take advantage of the Commission’s filing exemption for terminal leases and 

terminal services agreements. The above notwithstanding, the Bureau has seen an increase in the number of new 

discussion agreements among MTOs. Since fiscal year 2005, the number of MTO discussion agreements on file 

has increased by 57 percent, from seven to eleven. This increase represents the largest percentage gain by any 

class of MTO agreements during that time period. During that same time frame, the number of MTO conferences 

dropped by 33 percent, from 15 to 10. 

The Bureau also receives and reviews minutes of meetings and reports filed by various agreement parties. 

Agreement regulations enacted in fiscal year 2005 allow for low market-share agreements without pricing or 

capacity rationalization authorities to become effective upon filing. From fiscal year 2005 through fiscal year 2007, 

the percentage of new agreements filed that qualified for the low market share exemption increased from 12 

percent to almost 30 percent. 

During the year, the Bureau analyzed a number of significant agreement filings. Brief synopses of some of those 

follow: 

The ocean common carriers participating in the Ocean Carrier Equipment Management Association, the South 

Carolina State Ports Authority, and the Georgia Ports Authority filed an agreement to give them authority to 

establish a regional chassis pool at marine terminals and inland intermodal terminals in the South Atlantic region 

of the United States. Due to the likelihood that the agreement would enhance efficiency at the terminals and inland 

intermodal terminals concerned, the Commission allowed it to become effective. 

Evergreen Marine Corp. (Taiwan) Ltd., Italia Maritima S.P.A., and Hatsu Marine Ltd. filed a joint service 

agreement in which they agreed to cooperate on a worldwide basis and operate under a single trade name, 

“Evergreen Line.” As the members of the joint service are affiliated companies and had already been cooperating 

with regard to rates and services on a worldwide basis under another agreement, the Commission determined that 

the establishment of the joint service would not result in a significant reduction in competition or in an 

unreasonable increase in transportation costs to shippers. Consequently, it allowed the agreement to become 

effective. 

Based on the Bureau’s analysis and recommendation, the Commission approved a change in its earlier settlement 

agreement with the Transpacific Stabilization Agreement (“TSA”), requiring the deletion of the Indian 

Subcontinent from TSA’s geographic scope, to allow TSA to expand back into the Indian Subcontinent trade. A 

subsequent TSA amendment was allowed to become effective. Also during the fiscal year, the TSA added CMACGM, S.A., Mediterranean Shipping Company, S.A. and Zim Integrated Shipping Services Ltd., as members. 

Although the addition of these parties increased TSA’s market position, the Bureau’s anticompetitive concerns 

were mitigated by the fact that rate levels in the transpacific have declined somewhat from fiscal year 2006. 

NYKLauritzenCool AB (now NYKCool AB) and Seatrade Group NV filed a cooperative working agreement 

authorizing them to implement, supervise, and administer a code of conduct applicable to the handling of 

specialized refrigerated cargoes and to implement, manage, and own any such code and any intellectual property 

rights associated with that code. As the agreement was unlikely to adversely impact competition, the Commission 

allowed it to become effective. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 35

The parties to the West Coast MTO Agreement filed an amendment providing new authority to discuss, implement, 

or assist in the implementation of measures to improve air quality in port areas and to discuss, agree, test, and 

implement security-related measures. After the Bureau negotiated clarifying revisions to the amendment and 

obtained agreement from the parties for specific reporting requirements to assist in monitoring the parties’ 

activities under the amended agreement, the Commission allowed the revised amendment to become effective. 

A.P. Moller-Maersk A/S (“Maersk”) announced in March 2007 that it would discontinue its NASA Service in the 

U.S. East Coast – East Coast South America trade and instead take space on a service in the same trade operated 

by Hamburg-Sud. At the time, Maersk operated six vessels in the trade and provided space on its vessels to two 

other ocean common carriers. Therefore, Maersk’s withdrawal of its vessels from the trade resulted in the 

termination of two agreements and the filing of two new agreements. 

 

The Bureau maintains an agreements database and library containing up-to-date information pertaining to, and 

copies of, effective agreements. In fiscal year 2007, the Bureau developed and implemented links in its database to 

copies of its marine terminal agreements, giving the public direct access to copies of such agreements through the 

agency’s website. The number of hits on the agreement library on the agency’s website averaged 500 per month 

during fiscal year 2007. In fiscal years 2008 and 2009, the Bureau, in conjunction with the agency’s Office of the 

Secretary and the Office of Information Technology, expects to further enhance public access to agreements and to 

develop and implement the necessary technology and procedures for the electronic filing of agreements. 

Economic Analysis Program Activities

To keep the Commission apprised of current trade conditions, emerging commercial and economic trends, and the 

impact of regulations affecting waterborne liner transportation, the Bureau prepares studies and profiles of major 

trades, monitoring reports, economic analyses, and agreement/carrier profiles, and undertakes special projects to 

identify and track relevant competitive and economic activity in major U.S. trade lanes. The Bureau’s monitoring 

activities include surveillance programs to identify: (1) concerted activity without an effective agreement on file 

with the Commission, or concerted activity exceeding the scope or authority of an effective agreement; (2) activity 

contravening the mandatory conference agreement provisions required under 46 U.S.C. 40303; (3) the potential 

for, or emergence of, unreasonable service reductions/cost increases that contravene the general standard in 46 

U.S.C. 41307(b)(1); (4) controlled carrier activity in accordance with the statutory requirements in 46 U.S.C. 

40701-40706; (5) the occurrence of prohibited activities as proscribed in 46 U.S.C. 41101-41106; (6) economic 

harm associated with unfair trade practices of foreign governments; and (7) whether the continued operation of an 

effective agreement in its present form is consistent with the statutes and current Commission decisions, rules, and 

policies. Activities conducted under certain types of operational agreements among MTOs, particularly those with 

rate authority, also are monitored. The efficiency claims of these latter agreements are reviewed regularly. The 

Bureau also develops profiles of major trade areas to assess carrier behavior under agreements, to determine 

compliance with regulatory requirements, and to ascertain the competitive posture of carriers, shippers, and 

shippers’ associations within each trade. 

In fiscal year 2007, the Bureau administered its oversight activities of agreements and prepared various reports and 

analyses. These included: (1) a report and economic analysis of the competitive impact of expanding the 

geographic scope of the TSA to include the Indian Subcontinent as provided by the Addendum to the 2003 TSA 

settlement agreement and the amendment to TSA; (2) an economic analysis of amendments to include New 

Zealand in the geographic scope of the Australia/United States Discussion Agreement, while placing the New 

Zealand/United States Discussion Agreement into dormant status; (3) a review and analysis of the Clean Air 

Action Plan proposed by the Los Angeles and Long Beach Port Infrastructure and Environmental Programs 

Cooperative Working Agreement, and related amendments to the West Coast MTO Agreement to reduce air 

pollution from motor carriers serving marine terminals; (4) a report on the formation and operation of cooperative 

chassis pools at U.S. rail and marine terminals implemented by the Ocean Carrier Equipment Management 

Association and its related agreements; (5) an economic analysis of the Evergreen Line Joint Service Agreement to 

form and operate affiliated carriers as a single carrier entity under the brand name of Evergreen Line in the U.S. 

trades; (6) a report on the comments and hearing statements of interested parties presented before the Antitrust 

Modernization Commission (“AMC”) on the antitrust immunity of the Shipping Act, along with a review of the 

AMC’s final report and an analysis of the relevant issues raised on the Shipping Act; and (7) assistance in the 

resolution of an informal complaint of a shipper affected by the fees assessed under the PierPASS program formed 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 36

Other Bureau projects and initiatives completed or begun in fiscal year 2007 included: (1) an evaluation of the 

PierPASS program after two years of operation, focusing on the impact of the program’s pricing mechanisms, cost 

allocation methods, and revenue re-distribution system on the various parties; (2) collection of service contract 

data from random samples of SERVCON to: (a) evaluate the application of surcharges and other terms and 

practices, and (b) analyze the fairness of controlled carrier rates charged in the Northeast Asia to U.S. trades in 

accordance with the statutes in 46 U.S.C. 40701-40706; (3) development of a methodology to assess the economic 

impact of the repeal of the exemption for liner shipping conferences from the competition laws of the EU in the 

U.S. transatlantic trades; (4) statistical time series forecasts of the growth in container cargo in 48 separate U.S. 

liner shipping trades; (5) installation of a database and intranet interface system for the commercial trade data 

purchased by the Commission from the Port Import Export Reporting Service (“PIERS”); (6) a statement of work 

for the development of a system to facilitate the electronic filing of agreements and related reports that agreement 

parties are required to file; (7) continued efforts to correct compliance issues and problems with the monitoring 

reports and minutes of agreement meetings filed by parties to agreements subject to the Commission’s reporting 

regulations; (8) a review and analysis of market conditions in the Bermuda trade with questions to, and meetings 

with, the parties to the Bermuda Discussion Agreement; (9) a report on the competitive impact of modifications 

that altered the distribution of earnings under the revenue pooling provisions of the Southern Africa/Oceania 

Agreement; (10) review and analyses of a series of membership changes and other amendments to TSA; (11) 

redevelopment of an electronic research panel to access SERVCON as a stand-alone component for the analysis of 

service contract data; (12) preparation of data and statistics of the U.S. liner shipping trades for the Maritime Data 

Working Group as part of the Maritime Trade and Transportation publication sponsored by the U.S. Department 

of Transportation; (13) a template to track and monitor the application of charges that are established in the 

voluntary service contract guidelines by parties to rate discussion agreements; (14) assistance in preparing a 

memorandum of understanding with CBP to use the Automated Commercial Environment/International Trade 

Data System (“ACE/ITDS”); (15) assistance with the preparation of speeches, and trade and agreement 

information, for official speaking engagements of Commission staff members; and (16) responses to requests, 

inquiries, and informal complaints on carrier agreements and related agreement trade matters. 

During the fiscal year, the Bureau received 908 sets of minutes and 99 monitoring reports containing market share, 

cargo volumes, revenue, and service data for agreement parties, including capacity and capacity utilization data for 

certain types of agreements. Monitoring reports are filed quarterly by the potentially more anticompetitive 

agreements, such as conference agreements and agreements with rate and/or capacity rationalization authority. The 

Bureau reviews these reports for filing compliance and uses the data to support its monitoring activities. In 

addition, in fiscal year 2007, four applications for waivers to the minutes and/or monitoring report filing 

requirements were reviewed and processed. 

In fiscal years 2008 and 2009, the Bureau will continue to monitor agreement activities and trade conditions, to 

prepare reports and economic analyses on developments and issues in key U.S. trades, to report on the activities of 

controlled carriers, and to respond to inquiries and informal complaints. The Bureau also will focus on: (1) 

conducting research in support of the statutory standards and the requirements of relevant Commission regulations 

overseen by this Bureau, as well as other bureaus and offices in the agency; (2) assessing the impact and 

effectiveness of the regulations governing agreements in 46 CFR part 535, implemented by the Commission in 

FMC Docket No. 03-15, Ocean Common Carrier and Marine Terminal Operator Agreements Subject to the 

Shipping Act of 1984; (3) linking the new PIERS data system to the enhanced agreements database to facilitate 

production of the Bureau’s regular trade monitoring publications and other trade analysis reports; and (4) improve 

the Commission’s monitoring program of agreements designed to address such supply-chain and operational 

issues as port congestion, security, air pollution and environmental concerns that affect local communities and the 

industry; and (5) conduct a thorough analysis of how vessel operators and MTOs are using antitrust immunity 

under the Shipping Act in the current market environment. In addition, the Bureau will continue to assist the 

Commission’s investigative and enforcement initiatives, and oversee international trade issues, such as unfair 

foreign shipping practices. As a Commission representative, the Bureau will continue to participate in 

development of ACE/ITDS. As a Participating Government Agency (“PGA”), the Commission is working with 

the “e-Customs Partnership” and other Federal agencies on developing the ACE/ITDS. The Bureau also will 

participate in the Maritime Data Working Group and the Interagency Action Team for the National Committee on 

the Marine Transportation System dealing with data collection and information management issues. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 37

Service Contracts Program Activities

The Shipping Act allows ocean common carriers, either individually or through agreements, to negotiate and 

execute service contracts with one or more shippers or shippers’ associations. Under service contracts, shippers 

make a commitment to provide a certain volume or portion of cargo over a fixed period of time, and carriers 

commit to a specified rate and a defined service level. These contracts are filed confidentially with the 

Commission. 

Contract flexibility enables carriers to tailor their transportation services to the specific commercial and operational 

needs of shippers. Overall, service contracts continue to be the predominant pricing mechanism due primarily to 

their efficiency, flexibility, and confidentiality. 

The Bureau continues to improve its Internet-based system for the filing of service contracts (SERVCON) to meet 

the needs of the agency as well as the shipping industry. In fiscal year 2007, the Bureau upgraded SERVCON to 

streamline the filing of service contracts and NSAs. In addition, the Bureau works with the agency’s Office of 

Information Technology to assist filers that wish to automate their processes to file service contracts into 

SERVCON. 

During fiscal year 2007, the Bureau received 44,608 service contracts and 262,076 contract amendments. In fiscal 

years 2008 and 2009, the Bureau will continue to assess and evaluate the efficiency of the SERVCON system. 

Also, the Bureau implemented an electronic registration procedure for carriers/OTIs filing service contracts and 

NSAs. 

NVOCC Service Arrangement Program Activities

In January 2005, the Commission permitted NVOCCs to enter into NSAs with their shipper customers. During 

fiscal year 2007, 741 original NSAs and 886 amendments were filed by 65 NVOCCs. Since NSAs were first 

allowed, more than 533 NVOCCs have registered to file NSAs. Of those registered, 96 have filed NSAs. 

Tariff Program Activities

The Shipping Act requires carriers and conferences to publish their tariffs electronically. Tariffs are to be made 

available, typically through Internet access, to any person, without time, quantity, or other limitation. Carriers are 

permitted under law to charge a reasonable fee for providing public access to their tariffs. The Bureau reviews and 

monitors the accessibility and accuracy of these private systems, and reviews published tariff material for 

compliance with the Shipping Act’s requirements. 

The Bureau evaluates applications for special permission to deviate from tariff publishing rules and regulations. 

During fiscal year 2007, the Bureau received and processed three special permission applications, processed two, 

and had one on hand at year end. All of the applications sought to advance the effective date of various tariff 

provisions that require a 30-day notice period. 

Unlike carriers, MTOs have the option of publishing or not publishing schedules of their rates, regulations, and 

practices, including limitations of liability for cargo loss or damage. Last year, 153 MTOs made their schedules 

available to the public. 

 

The Bureau also monitors the tariff activity and the service contracts of controlled carriers. Under the Shipping 

Act, no controlled carrier (that is, a carrier whose majority ownership is held by a foreign government) may 

maintain rates or charges in its tariffs or service contracts that are below a level that is just and reasonable, or 

establish or maintain unjust or unreasonable classifications, rules, or regulations in those tariffs or service 

contracts. In addition to monitoring the activities of known controlled carriers, the Bureau reviews trade 

publications to identify carriers that might be controlled by a foreign government. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 38

The Bureau also collects and processes information provided by carriers, MTOs, and OTIs concerning, among 

other things, the Internet location of their tariffs and schedules. These Internet locations are made available to the 

shipping public via the Commission’s website. Last year, the Bureau posted on the agency’s website 4,372 active/

current tariff/schedule Internet addresses. Also, the Bureau posted the historical tariff addresses for 2,140 inactive/

cancelled tariffs. 

Formal Proceedings

The Bureau furnishes support in formal Commission proceedings arising in the areas of its expertise. The Bureau 

provides analyses and recommendations on petitions, information demand orders, and Commission-initiated 

rulemakings, and provides expert witness testimony in investigations of unfair foreign shipping practices. Further, 

the Bureau prepares economic testimony in Commission investigations. 

In fiscal year 2007, the Bureau participated in the following matters: (1) providing cost data for, and a regulatory 

impact analysis of, a draft proposed rule to update the FMC’s filing and service fees to reflect 2007 costs; (2) 

conducting semi-annual meetings with agreement representatives pursuant to the settlement terms of the Fact 

Finding Investigation No. 25, Practices of Transpacific Stabilization Agreement Members Covering the 2002-2003 

Service Contract Season; (3) reviewing the addendum to the Commission’s 2003 settlement agreement with TSA 

parties along with a report to the Commission on the competitive impact of the addendum; and (4) providing 

economic assistance in Docket No. 02-15, Passenger Vessel Financial Responsibility. 

The Bureau's support of formal proceedings during fiscal years 2008 and 2009 will depend on the number and 

subject matter of the proceedings initiated over the period. As the development of an electronic filing system 

progresses, the Bureau will eventually prepare a proposed rule to modify the Commission’s regulations governing 

agreements in 46 CFR part 535 to provide for the electronic filing of agreements and related reports. In addition, 

the Bureau will assist the Commission’s continuing efforts to address unfair foreign shipping practices under 46 

U.S.C. 42101-42307. 

Bureau of Certification and Licensing

The Bureau of Certification and Licensing (“BCL”) licenses U.S.-based OTIs, including ocean freight forwarders 

and NVOCCs; receives surety bonds and processes registration for foreign-based (unlicensed) NVOCCs; issues 

certificates to owners and operators of passenger vessels that have evidenced financial responsibility to satisfy 

liability incurred for nonperformance of voyages or for death or injury to passengers and other persons; and 

manages programs assuring financial responsibility of OTIs and PVOs by developing policies and guidelines, and 

analyzing financial documents. 

The Bureau is composed of two offices. The Office of Transportation Intermediaries has responsibility for 

reviewing and approving applications for OTI licenses, and maintaining and updating records about licensees. The 

Office of Passenger Vessels and Information Processing has responsibility for reviewing applications for 

certificates of financial responsibility with respect to passenger vessels, managing all activities with respect to 

evidence of financial responsibility for OTIs and PVOs, and for developing and maintaining all Bureau databases. 

Licensing of Ocean Transportation Intermediaries

During fiscal year 2007, the Commission received 484 new and 267 amended OTI applications. During this 

period, BCL issued 352 new and 154 amended OTI licenses and permanently revoked 237 licenses. An additional 

67 non-U.S.-based unlicensed NVOCC bonds were cancelled. During fiscal year 2007, the Commission received 

86 riders providing optional proof of financial responsibility for carriers serving in the U.S.- China trade for a total 

of 137 riders. Docket No. 04-02, Optional Rider for Proof of Financial Responsibility, implemented rules that 

permit U.S. NVOCCs to file riders to their existing NVOCC bonds to meet financial responsibility requirements of 

the Chinese government. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 39

The Bureau continues to experience a backlog of cases. Much of the delay in processing occurs because data 

provided with the initial submission is incomplete. This requires the Bureau to contact the applicant and request 

the necessary information before making a determination to issue a license. BCL continues to work diligently with 

OTI applicants, seeking to promote accurate and complete submissions and to process such applications within 45 

days of receipt. 

In fiscal year 2007, the Bureau finalized development of an automated Form FMC-18, Application for an Ocean 

Transportation Intermediary License. A rulemaking to effect the filing capability on a voluntary basis with a 

reduced fee was published in the Federal Register in August 2007. Electronic submission will facilitate 

completeness of the application and will contribute to a speedier licensing review process. 

In fiscal years 2008 and 2009, the Bureau will design and implement plans to review applications electronically to 

support the electronic filing of OTI bonds. Also, in fiscal year 2008, the Bureau will continue its outreach and 

programs to promote awareness of OTI requirements. 

Certification of Passenger Vessel Operators 

The Commission administers 46 U.S.C. 44102 and 46 U.S.C. 44103, which require evidence of financial 

responsibility for vessels which have berth or stateroom accommodations for 50 or more passengers and embark 

passengers at U.S. ports and territories. During fiscal year 2007, the Commission received applications for 73 

certificates (casualty and performance), and approved and issued 25 casualty and 35 performance certificates. 

Currently 200 vessels and 48 operators have evidence of financial responsibility coverage in excess of $354 

million for nonperformance and over $690 million for casualty on file with the Commission. The certificates 

issued pursuant to this program are necessary for the CBP clearance of thousands of passenger vessel sailings 

annually. 

The cruise industry continues to be the fastest growing category in the leisure travel market. The volume of 

passengers reached an all-time high of 12.6 million passengers during 2007, which is an increase of 0.5 million 

passengers over 2006 bookings. New cruise lines have entered the business, and existing cruise lines continue to 

build and purchase additional vessels. 

In conjunction with CADRS, the Bureau offers information and guidance to the cruising public throughout the year 

on passenger rights and obligations regarding monies paid to cruise lines that experience financial difficulties and 

nonperformance problems. Over the past few years, a number of cruise operators filed for bankruptcy or 

discontinued operations. When cruise lines become bankrupt, the Commission works closely with the cruise line 

and the financial responsibility provider to facilitate the refund process. The public is kept informed through the 

issuance of press releases posted on the Commission’s website and the dispensing of advice when the passenger 

public contacts the staff. During fiscal year 2007, while no cruise operator under the Commission’s PVO program 

ceased operation or left the trade, staff continued its efforts to assist PVOs and financial responsibility providers to 

resolve passenger claims for several cancelled cruises. Staff completed review of pay-out procedures with respect 

to two PVOs, CQ River Cruises LLC and Royal Olympic Cruises Ltd., which discontinued operations in prior 

years without performing contracted cruises. 

One component of the Bureau’s PVO monitoring program is performance of on-site reviews to evaluate PVOs’ 

financial responsibility with respect to oversight of cruise lines participating in the Commission’s PVO program. 

During fiscal year 2007, staff issued two on-site review reports. One on-site review was conducted of a cruise line 

which established its financial responsibility with an escrow account, and another was performed at the site of a 

PVO which established its financial responsibility with a bond. Also, the Bureau assessed the effectiveness of the 

PVO monitoring procedures previously implemented to ensure compliance with FMC rules and regulations, 

particularly with respect to unearned passenger revenue calculation and submission of reports. 

In fiscal years 2008 and 2009, the Bureau will continue to evaluate the agency’s PVO program to address the 

contemporary needs of the cruising public. The Bureau intends to initiate a rulemaking containing new 

enforcement options against cruise lines that fail to file PVO reports. This provision would provide the Bureau 

additional flexibility with respect to imposing civil penalties for cruise lines that fail to comply with the reporting 

requirements of part 540. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 40

Automated Database Systems

During fiscal year 2007, BCL completed the modernization of the Regulated Persons Index. A primary function of 

the Bureau is the maintenance of up-to-date records of licensed OTIs. The Bureau posts on the Commission’s 

website a list of OTIs which are licensed, bonded, and have provided their tariff location, if required, so that 

carriers and others can ascertain whether an OTI has met FMC requirements. The OTI list also indicates whether 

an NVOCC has filed an optional rider for additional proof of NVOCC financial responsibility. Furthermore, the 

Bureau completed implementation of an electronic Form FMC-18, and has taken the lead to ensure 

accomplishment of the agency’s performance goals related to improving the program for updating OTI data and 

systems integration among Commission databases. 

 

In fiscal years 2008 and 2009, in conjunction with the agency’s Office of Information Technology (“OIT”), BCL 

intends to develop a plan to automate the PVO Application Form FMC-131, Application for Certificate of 

Financial Responsibility, and conduct a corresponding requirements analysis to facilitate the filing of PVO 

applications. The Bureau also will work with the OIT to initiate a redesign of the OTI list maintained on the 

Commission’s website to increase accessibility to information, facilitate public search capability, and make it more 

interactive for users. BCL also plans to develop a process to permit fully electronic review of OTI applications by 

staff and develop a rulemaking to address cruise lines that fail to file PVO reports timely. 

Bureau of Enforcement Program (“BOE”)

The Bureau of Enforcement has primary responsibility for ensuring compliance with the shipping statutes 

administered by the Commission, principally the Shipping Act. The Bureau is actively involved in the 

Commission=s outreach activities and interacts regularly with all segments of the ocean transportation industry. The 

Bureau is also active in maritime security and works closely with the agency=s BCL to promote prompt licensing of 

all qualified OTIs, and with the Department of Homeland Security=s (“DHS”) CBP to ensure submission of 

complete and accurate shipping data. Bureau attorneys also serve as legal advisors to the Director of OPS and to 

other bureaus and offices, and may be designated as Investigative Officers in nonadjudicatory fact finding 

proceedings. Additionally, Bureau attorneys work closely with the Commission=s investigatory personnel and 

participate as trial counsel in formal adjudicatory proceedings. The Bureau monitors all other formal Commission 

proceedings and relevant court actions in order to identify major regulatory issues and to advise the Director of 

OPS and the other bureaus and offices. The Bureau also participates with other bureaus and offices in committees 

and task forces in the development of Commission policies, rules, and regulations. The Bureau also intervenes in 

formal complaint proceedings, where appropriate. 

In liaison with investigative personnel, the Bureau monitors and conducts investigations into the activities of ocean 

common carriers, OTIs (NVOCCs and freight forwarders), shippers, ports and terminals, and other persons to 

ensure compliance with the statutes and regulations administered by the Commission, thereby providing maximum 

protection to all participants in the ocean transportation shipping industry. Monitoring activities include: (1) 

service contract and NSA reviews to determine compliance with applicable statutes and regulations; (2) reviews of 

VOCC and OTI operations, including monitoring OTI compliance with bonding requirements and post-licensing 

and routine compliance checks of licensees to determine whether operations conform with regulatory 

requirements; and (3) monitors operation of carrier and MTO agreements, including review of minutes and 

quarterly reports. Investigations are conducted into alleged violations of the full range of statutes and regulations 

administered by the Commission, including: illegal rebating, misdescriptions or misdeclarations of cargo, illegal 

or unfiled agreements, abuses of antitrust immunity, unlicenced OTI activity, untariffed cargo carriage, unbonded 

passenger vessel operations, unlawful MTO activity and various types of consumer abuses, such as failure of 

carriers or intermediaries to carry out transportation obligations, resulting in cargo delays and financial losses for 

shippers. Through these activities, the enforcement program supports the agency=s objectives of obtaining 

statutory compliance and ensuring equitable trading conditions and focusing enforcement efforts on activities 

which have market-distorting effects and those which impact most directly on the shipping public. 

The Bureau of Enforcement prepares and serves notices of violations of the shipping statutes and Commission 

regulations and may compromise and settle civil penalty demands arising out of those violations. If settlement is 

not reached, Bureau attorneys act as prosecutors in formal Commission proceedings that may result in settlement 

or in the assessment of civil penalties. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 41

The Bureau also participates, in conjunction with other bureaus, in special enforcement initiatives, fact finding 

investigations, ADR processes, rulemaking efforts, and homeland security issues. 

During fiscal year 2007, the Bureau worked to obtain statutory compliance in all major trades and with all 

segments of the transportation industry, i.e., carriers, carrier agreements, MTOs, PVOs, and OTIs. The Bureau also 

initiated actions to address and seek compliance for market-distorting activities such as various forms of secret 

rebates and absorptions, misdescriptions of commodities and misdeclarations of measurements, illegal equipment 

substitution, unlawful use of service contracts, as well as carriage of cargo by and for untariffed and unbonded 

NVOCCs and joint carrier activities outside the authority of existing agreements or pursuant to unfiled agreements. 

Particular emphasis was placed on industry service contracting activities to ensure fair trading conditions and 

protection of the public. Most of these malpractice investigations result in compromise settlements of civil 

penalties or are treated as compliance matters and closed without action. However, certain investigations of 

NVOCCs and ocean common carriers have required the institution of formal adjudicatory proceedings in order to 

pursue remedies under the 1984 Act. 

In fiscal year 2007, the compliance audit program continued to expand. This program, conducted from 

headquarters primarily by mail and telephone, reviews the operations of licensed OTIs to assist them in complying 

with the statutory requirements and the Commission=s rules and regulations. The audit program also includes 

review of entities holding themselves out as VOCCs. At the beginning of fiscal year 2007, two audits were 

pending. During the fiscal year, 106 audits were commenced, 102 audits were completed, and six were pending in 

the Bureau on September 30, 2007. 

At the beginning of fiscal year 2007, 34 enforcement cases were pending final resolution by the Bureau, the Bureau 

was party to five formal proceedings, and there were 67 matters pending which the Bureau was investigating or for 

which it was providing legal advice. During the fiscal year, 16 new enforcement actions were commenced; 32 

were compromised and settled, administratively closed, or referred for formal proceedings; and 18 enforcement 

cases were pending resolution at fiscal year's end. Also, four formal proceedings were initiated; two formal 

proceedings were completed, and seven were pending at the end of the fiscal year. Additionally, 72 matters 

involving investigation or legal advice were received during the fiscal year, 61 such matters were completed, and 

78 were pending in the Bureau on September 30, 2007. 

In fiscal years 2008 and 2009, the Bureau will continue to pursue market-distorting, fraudulent, and anticompetitive 

practices harmful to the industry and the public and to monitor U.S. trades and the implementation of the 

Commission=s revised regulations resulting from OSRA, to the extent that resources permit. The Bureau will 

continue to pursue initiatives aimed at VOCCs engaged in unfair service-contracting practices, particularly those 

which permit improper entities to compete unlawfully with carriers and OTIs operating in compliance with U.S. 

laws, and will continue to expand the OTI monitoring and audit programs. The enforcement and monitoring 

activities will include focusing on the unlawful operations of household goods carriers - both licensed and 

unlicensed - which have increasingly caused economic harm to individual consumers, as well as competitive injury 

to those carriers operating lawfully. The Bureau will also continue its ongoing monitoring of NVOCC activity 

involving NSAs. Public outreach efforts will continue to educate maritime transportation users and providers with 

regard to FMC statutes and regulations, and the program will seek to improve participation in security issues as 

they relate to U.S. ocean commerce, specifically to include efforts to coordinate the use of available database 

systems with other agencies or government groups engaged in homeland security to improve identification of 

entities providing and utilizing maritime transportation services. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 42

On Hand 

09/30/06 Receipts Output

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09

Agreements Filed:

 Carrier 1 181 179 3 191 184 10 201 201 10

 Terminal 1 10 11 0 12 10 2 14 14 2

Rulemakings, 

Proceedings, 

Petitions,Demand 

Orders 0 1 1 0 1 1 0 2 1 1

Waiver Requests 0 4 4 0 4 4 0 5 5 0

Bureau Reports (1) 0 0 149 0 0 149 0 0 149 0

Agreement Reports 0 0 0

 Minutes 31 908 924 15 962 962 15 1,015 1,015 15

 Monitoring 0 99 99 0 105 105 0 111 111 0

 VSCG 3 163 161 5 172 172 5 180 180 5

Service Contracts 0 44,608 44,608 0 46,000 46,000 0 48,000 48,000 0

Contract Amds 0 262,076 262,076 0 262,000 262,000 0 262,000 262,000 0

Special Permissions 0 3 2 1 8 9 0 8 8 0

NVOCC Service 0 0 0

Arrangements 0 741 741 0 900 900 0 1,000 1,000 0

Arrangement Amds. 0 886 886 0 1,030 1,030 0 1,180 1,180 0

Informal Inquiries 0 207 207 0 220 220 0 220 220 0

1 Bureau Reports - include w eekly reports to Commissioners on agreements filed and w eekly

Federal Register Notice reports.

Operations Program

Bureau of Trade Analysis

Statistical Workload Summary

Workload Units Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 43

*On Hand 

09/30/06 Receipts Output

*On Hand 

09/30/07 Receipts Outputs

*On Hand 

09/30/08 Receipts Outputs

*On Hand 

09/30/09

OTI Applications 

New (1)

222 484 442 264 500 600 164 500 600 64

OTI Applications 

Amended (1)

85 267 273 79 300 325 54 300 325 29

OTI License 

Terminations (2) 0 237 237 0 250 250 0 250 250 0

Passenger Vessel 

Applications 

(Performance) 1 37 35 3 30 30 3 30 30 3

Passenger Vessel 

Applications 

(Casualty) 10 36 25 21 30 30 21 30 30 21

(1) OTI application output figures primarily include the number of (1) licenses issued, and (2) approvals

for license and other changes not requiring the issuance of a license.

(2) Revoked or surrendered licenses not subsequently re-issued.

* This number primarily includes incomplete applications aw aiting further information from applicants

and completed applications pending applicants' procurement of a bond. The number w ill decrease 

because approved applicants w ill have 120 days to submit a bond. 

Operations Program

Bureau of Certification and Licensing 

Statistical Workload Summary

Workload Units Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 44

*On Hand 

09/30/06 Receipts Output

*On Hand 

09/30/07 Receipts Outputs

*On Hand 

09/30/08 Receipts Outputs

*On Hand 

09/30/09

Audits and Monitoring 

Activities* 2 106 102 6 110 110 6 115 115 6

OTI Applicant and 

License Checks 0 605 605 0 615 615 0 625 625 0

Formal Proceedings 5 4 2 7 5 4 8 6 6 8

Civil Penalty Cases 34 16 32 18 20 20 18 25 25 18

Staff Legal Advice 67 72 61 78 70 75 73 70 75 68

* Category of Investigations changed to Audits and Monitoring Activities. Audits and monitoring activity

separated from investigations. Investigations are included in other categories in the Statistical

Workload Summary.

Operations Program

Bureau of Enforcement

Statistical Workload Summary

Workload Units Fiscal 2007 Actual Fiscal 2008 Estimate Fiscal 2009 Estimate
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 45

Administration Program

Linking Program Funding to Strategic/Performance Goals

The Office of Administration is responsible for the management of the agency’s program support operations. 

Thus, the administrative offices contribute primarily to the accomplishment of Strategies 4 and 5 

(Technological Efficiencies and Management Capabilities respectively). For example, the Administration 

Program will support the Strategic Plan’s Outcome Goal 4.1: Streamline the Commission’s work processes 

through effective utilization of information technology; we are seeking funding to implement electronic record 

keeping of employee personnel and training records, in keeping with Federal government e-initiatives, which 

will reduce paperwork and storage issues while improving accuracy and strengthening data collection, 

reporting and retention. Also, we are linking the Administration Program to Strategic Plan Outcome Goal 5.3: 

Respond to changing industry conditions and business environment through use of state-of-the-art automated 

systems for internal and external processes and a flexible and well-trained workforce; in FY 2009 we intend to 

aggressively pursue new financial management strategies, including electronic payments through Pay.gov and 

electronic check conversion, and to implement Voice-over-Internet-Protocol (VoIP) capacities. A VoIP call can 

be placed across the Internet and provides cost advantages over traditional telephone networks. Appropriate 

funding will enable us to accomplish these activities so we can improve phone service and significantly reduce 

service and financial processing costs in out-years.

Office of Administration

Office of the Director

The Office of Administration (AOA@) provides administrative support to the program operations of the 

Commission. OA interprets governmental policies and programs and administers these consistent with Federal 

guidelines, including those involving procurement, information technology, financial management and human 

resources. OA initiates recommendations, collaborating with other elements of the Commission as warranted, for 

long-range plans, new or revised policies and standards, and rules and regulations, with respect to its program 

activities. The Director is responsible for the direct administration and coordination of the: 

Office of Financial Management; 

Office of Human Resources; 

Office of Information Technology; and 

Office of Management Services 

Many of the functions and achievements of OA are reflected below in the narratives for these offices. 

The Director provides administrative guidance to the Offices of the Chairman, Commissioners, Secretary, General 

Counsel, Administrative Law Judges and Operations, and administrative assistance to the Offices of the Inspector 

General and Equal Employment Opportunity. The Director is the FMC=s Chief Acquisition Officer, Audit Followup and Management (Internal) Controls Official, Senior Agency Official for Privacy, and Forms Control Officer. 

The Director also represents the FMC as Principal Management Official on the Small Agency Council (“SAC”). 

As the Chief Financial Officer, the Director provides program oversight for the agency=s budget and financial 

management responsibilities, and ensures agency compliance with the Financial Integrity Act, the Antideficiency 

Act, and the Debt Collection Improvement Act (“DCIA”) of 1996. OA staff act as the point of contact for the 

Small Business Administration=s E-forms initiative. 

The Deputy Director of Administration is the FMC’s Chief Information Officer (“CIO”). The CIO oversees the 

Office of Information Technology operations and activities administered under the Clinger-Cohen Act of 1996, as 

well as other applicable laws which prescribe responsibility for operating the program. The Deputy Director also 

serves as the FMC’s Competition Advocate and as Records Management Officer. 

The Office of the Director had significant programmatic achievements during fiscal year 2007. The Office guided 

the agency=s continuing efforts to enhance its information technology (“IT”) program; during the fiscal year the 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 46

agency mitigated a significant deficiency identified during an Inspector General review of agency IT operations. 

The agency received an unqualified opinion in its fiscal year 2007 financial statement audit. The Office again 

directed preparation of the Annual Performance Plan and the Annual Program Performance Report, as required by 

the Government Performance and Results Act (“GPRA”). The Office also prepared the Federal Activities 

Inventory Reform Act report, and the PAR (which included the MD&A and the Federal Managers Financial 

Integrity Act report). Also during the fiscal year, the Office directed the update of internal Commission issuances 

that specify procedures for a variety of programs and activities, including the creation of a comprehensive draft 

policy with respect to training and development, and guided Commission efforts to comply with GPEA and 

FISMA. Additionally, the Office guided the development of the fiscal year 2009 budget request to OMB and the 

fiscal year 2008 President=s Budget submission, and directed all efforts involving the audit of the Commission=s 

fiscal year 2007 financial statements. Additionally, the Office developed, in coordination with the OIG, several 

documents designed to improve the assessment of agency internal controls. Also during the year, the Office 

provided primary support for the OMB clearance and records management programs, guided the further 

development of the agency=s Continuity of Operations Plan, and coordinated the initiation of the agency=s 

Individual Development Plan program. Further, the Office guided development of the agency’s breach notification 

policy, responsive to new OMB requirements. 

OA=s key objectives for fiscal years 2008 and 2009 are continuing to implement policy directions aimed at refining 

and enhancing agency administrative programs and operations; monitoring the accomplishment of agency 

performance goals, particularly those related to the implementation of Pay.gov and the development of an updated 

agency Strategic Plan; initiating further information technology improvements, including the replacement, 

integration or update of agency database systems, the upgrading of network and desktop operating systems, and the 

implementation of VoIP; and working with senior managers to ensure effective strategic succession planning. The 

Office also will take the lead in assuring that the agency-wide computer security program is effective, that the 

agency=s financial management system receives an unqualified opinion in annual financial audits, and that the 

agency complies fully with the government-wide identity card (“HSPD-12”) initiative. 

Office of Financial Management (AOFM@)

OFM administers the Commission's financial management program and is responsible for offering guidance on 

optimal utilization of the Commission's fiscal resources. OFM's main responsibilities are to: (1) produce and 

submit annual budget justifications and estimates to OMB and the Congress; (2) execute the budget to ensure that 

appropriated funds are properly expended; (3) prepare audited financial reports to aid management decisions; (4) 

administer the control system over workyears of employment; (5) collect all fees and forfeitures due the 

Commission; (6) process payments; (7) verify financial, accounting and payroll reports generated by the agency’s 

fiscal services agents; (8) process travel orders and vouchers; and (9) manage the Commission’s Travel Charge 

Card and Cash Management programs. 

The Commission has an interagency agreement (“IAG”) with the Bureau of Public Debt (“BPD”) to provide such 

services as general ledger accounting, travel, procurement, and financial reporting. OFM serves as the 

Commission’s primary contact with BPD and verifies all accounting transactions, oversees the timely submission 

of quarterly financial statements to OMB, and works to ensure that an unqualified opinion is received on the 

annual financial statement audit. The National Finance Center (“NFC”) provides the Commission with payroll 

services via an IAG. OFM serves as the primary contact with NFC regarding time card transmission and verifies 

all payroll disbursement costs. NFC transmits documentation of payroll costs directly to BPD for inclusion in the 

agency’s accounting records. 

During fiscal year 2007, OFM: (1) collected and deposited to the U.S. Treasury $1,964,837 from fines and penalty 

collections, publications, reproductions, and user fees; (2) coordinated and prepared budget justifications and 

estimates for the fiscal year 2008 Congressional budget and fiscal year 2009 OMB budget; (3) prepared a variety 

of required external reports; (4) prepared monthly status reports on various budget matters; (5) managed the 

Commission's cash management program; (6) maintained procedures for forecasting the cost of performance goals; 

(7) pursued delinquent receivables; (8) worked with BPD staff and auditors regarding the Audit of the Fiscal Year 

2006 Financial Statements (resulting in an unqualified opinion); (9) worked with the Director of Administration to 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 47

finalize FMC’s 2006 Management’s Discussion and Analysis and 2006 Performance and Accountability Report 

and to initiate work on the 2007 versions of those documents; and (10) served on the Commission’s committee to 

review and update user fees. 

Goals in fiscal years 2008 and 2009 include: (1) facilitating implementation of Pay.gov for agencywide and 

industry acceptance of electronic payments; (2) continuing to pursue initiatives leading to economy and efficiency 

in budget and financial operations; and (3) improving the Cash Management Program, including migrating to 

updated platforms for the Paperless Check Conversion through the Federal Reserve Bank in Cleveland. 

Office of Human Resources (“OHR”)

OHR plans and administers a complete human resources management program including: recruitment and 

placement, position classification and pay administration, occupational safety and health, employee assistance, 

workforce discipline, performance management and incentive awards, employee benefits, retirement, employee 

development and training, and personnel security. 

Major accomplishments during fiscal year 2007 include the following: (1) monitored activities of the agency’s 

payroll/personnel service provider, NFC, and worked with OA staff to ensure security, continuity and accuracy of 

payroll and personnel services; (2) coordinated with senior management in administering the SES Candidate 

Development Program and the Emerging Leaders Program to address executive succession; (3) conducted a 

comprehensive training program, including drafting agency policy on training and employee development, 

providing executive training for SES candidates and continuing the college tuition reimbursement program; (4) 

promoted the Preventive Health and Awareness Program and the Office of Personnel Management’s (“OPM”) 

wellness and Healthier Feds initiatives, and issued email notices focusing on preventive health themes and related 

health issues; (5) planned, implemented, and promoted new programs for Personal Financial Literacy Education 

and Volunteer/Community Service Awareness; (6) conducted numerous employee benefit and charitable 

contributions programs and open seasons; (7) conducted a comprehensive personnel and information security 

program, including initiating and adjudicating security investigations for new and reinvestigated employees, 

completing work necessary for reporting and updating data in the Clearance Verification System pursuant to 

OPM’s e-clearance initiative, and collaborating with CBP to gain access to ACE/ITDS; (8) administered agency 

compliance with the Enterprise Human Resources Integration project and other e-Gov initiatives such as e-payroll, 

e-clearance, and e-learning; (9) worked with other entities on pre-implementation issues related to eOPF 

(Electronic Official Personnel Folder); (10) coordinated with OPM in administering a number of agency-wide 

surveys; (11) implemented provisions of the Federal Workforce Flexibility Act and related legislation and 

continued work to establish a Human Capital Plan; (12) coordinated implementation of a new training reporting 

system required by OPM; and (13) worked with agency staff and GSA to implement pertinent provisions of 

HSPD-12. 

In fiscal years 2008 and 2009, OHR plans to: (1) implement eOPF and convert human resources records to 

electronic format; (2) monitor processes and database modernization activities of the NFC in conjunction with the 

government-wide e-payroll initiative and to ensure timely and accurate payroll and personnel services; and (3) 

evaluate the agency’s Human Capital Plan and associated metrics to assess progress in meeting strategic and 

performance goals and to determine necessary modifications. 

Office of Information Technology (“OIT”)

The Office of Information Technology provides management support and services with respect to information 

technology (AIT@) systems facilitating the program and administrative operations of the Commission, and thus is 

responsible for ensuring that the Commission=s IT program is administered in a manner consistent with applicable 

rules, regulations and guidelines. OIT receives program guidance from the agency’s CIO. 

The OIT Director serves as the Commission=s Information Technology Officer, Telecommunications Manager, 

Help Desk and Database Administration Manager, and oversees the IT security program. The OIT Director plans, 

coordinates, and facilitates the use of automated information systems. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 48

During fiscal year 2007, significant OIT activities included the following: (1) implementation of an automated 

FMC Form 18 required for OTI licensing purposes; (2) redesign of the SERVCON system to include a user ID and 

password system linked to FMC Form 1 and FMC Form 18; (3) implementation of the new web- based OTI List; 

(4) automation of the training process; (5) testing and implementing IPv6 technology mandated by OMB; (6) 

updating policies and procedures associated with the technical assistance provided to FMC staff and changes in the 

IT infrastructure; (7) administration of the agency=s IT technical support and assistance contracts; (8) leading the 

Asset Management Committee, IT Change Control Process, and Technical Users Group; (9) furnishing agencywide advice and coordination on electronic records; (10) reviewing the FMC=s systems and completing security 

assessments for each; (11) coordination and monitoring of FMC’s IT Security Awareness training; (12) improving 

compliance with FISMA and other Federal IT initiatives; and (13) assuming management of the agency’s 

telecommunications services; and (14) successful testing of remote COOP processes. 

For fiscal years 2008 and 2009, major initiatives include plans to: (1) increase compliance with FISMA 

requirements; (2) implement VoIP; (3) update the FMC Enterprise Architecture Plan; (4) upgrade the existing 

desktop operating system, software applications, and equipment; (5) improve the Virtual Private Network security 

infrastructure; (6) support the Pay.gov initiative; and (7) begin development of an Online Agreements system. 

Office of Management Services (“OMS”)

OMS is responsible for procuring and furnishing all services, office equipment and supplies necessary to support 

the day-to-day operations and performance goals of the Commission. To accomplish this responsibility, OMS 

administers a variety of management service functions, including: (1) administering Commission procurement and 

contracting; (2) controlling and administering the Commission's property utilization, maintenance, inventory and 

disposition programs; (3) planning and administering programs for improvement of the workplace environment 

and other space utilization operations for all Commission locations, including office space and provision of office 

furnishings; (4) managing the receipt, storage, distribution and inventory of all supplies, forms and accessories; (5) 

coordinating and fulfilling all printing, copying, and graphic service requirements; (6) coordinating the use of the 

building's physical facilities with respect to maintenance, security and parking; (7) conducting safety inspections 

and coordinating the Commission's emergency planning and evacuation plan; and (8) directing the Commission's 

participation, development and goal-setting efforts under the Small Business Act. 

During fiscal year 2007, OMS: (1) completed the office space renovation project required to accommodate the 

Operations and Administration activities in appropriate office space; (2) completed implementation of full-service 

procurement support through BPD’s Administrative Resource Center; (3) through the Office Director, served as 

the Agency’s Technical Representative for oversight of the headquarters building security contract and served as 

Chairman of the tenants’ Building Security Committee (“BSC”) for the HQ site; (4) coordinated the annual 

property inventory of accountable property; (5) worked through the BSC and the Department of Homeland 

Security’s Federal Protective Service (“FPS”) in resolving outstanding concerns surrounding the physical security 

services at FMC’s HQ building; (6) arranged for the upgrade of voice telecommunications equipment in the Los 

Angeles, CA and Florida AR offices; (7) worked with OIT on a seamless transfer of the voice telecommunications 

program to OIT’s control; (8) coordinated with BDP for award of a follow-on contract for ongoing IT assistance 

during critical application implementation while a new contract for continuing support was established; (9) 

implemented use of the Library of Congress FEDLINK program to acquire annual publications and on-line 

subscription services to ensure no disruption in service; (10) in coordination with BPD, arranged for a contract 

extension for scanning services support while a new statement of work was being developed; (11) coordinated the 

expansion of the agency’s security card access program to provide additional security for physical access to office 

areas which control files containing personally identifiable information; and (12) coordinated with GSA to acquire 

temporary office space, motor pool vehicle, and other necessities required for establishing an AR office in 

Houston, Texas. 

In fiscal years 2008 and 2009, OMS’ objectives include: (1) continuing to work with GSA, FPS, and other tenant 

agencies at our HQ facilities and field locations to upgrade and/or improve the buildings’ security measures and 

emergency preparedness; (2) in conjunction with the agency’s other administrative offices, continuing the process 

for implementing HSPD-12; (3) working with BPD on streamlining the FMC’s acquisition and procurement 

program for better efficiency; and (4) continuing to provide advice and assistance regarding innovative supportservice approaches to FMC activities. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 49

Appendix A 

Alphabetical Listing of Abbreviations

 -#- 

1920 Act Section 19 of the Merchant Marine Act, 1920 

1984 Act Shipping Act of 1984 

 -AADR Alternative Dispute Resolution 

ACE/ITDS Automated Commercial Environment/International Trade Data System 

ALJ Administrative Law Judge 

AMC Antitrust Modernization Commission 

AR Area Representative 

 -BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BSC Building Security Committee 

BTA Bureau of Trade Analysis 

 -CCADRS Office of Consumer Affairs and Dispute Resolution Services 

CATS Carriers' Automated Tariff Systems 

CBP U.S. Bureau of Customs and Border Protection 

CFR Code of Federal Regulations 

CIO Chief Information Officer 

Commission Federal Maritime Commission 

CMTS Committee on Marine Transportation System 

COOP Continuity of Operations 

CSRS Civil Service Retirement System 

 -DDEEO Director of Equal Employment Opportunity 

DCIA Debt Collection Improvement Act 

DHS Department of Homeland Security 

 -EECIE Executive Council on Integrity and Efficiency 

EEO Equal Employment Opportunity 

eOPF Electronic Official Personnel Folder 

EU European Union 

 -FFAEC Federal Audit Executive Council 

FASA Fashion Accessories Shippers Association 

FEDEX Federal Express 

FEHB Federal Employee's Health Benefits 

FERS Federal Employee Retirement System 

FISMA Federal Information Security Management Act of 2002 

FMC Federal Maritime Commission 

Flanagan Robert L. Flanagan and F. Brooks Royster, III 

FOIA Freedom of Information Act 

FPS Federal Protective Service 

FSPA Foreign Shipping Practices Act 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 50

FTE Full-Time Equivalent 

FY Fiscal Year 

 -GGAO Government Accountability Office 

GC General Counsel 

GPEA Government Paperwork Elimination Act 

GPRA Government Performance and Results Act 

GS General Schedule 

GSA Government Services Administration 

 -HHSPD-12 Homeland Security Presidential Directive 12 

HQ Headquarters (FMC) 

 -IIAG Interagency Agreement 

IG Inspector General 

IPv6 Internet Protocol Version 6 

IT Information Technology 

 -LLake Charles Harbor Lake Charles Harbor and Terminal District 

 

 -MMaersk A.P. Moller-Maersk A/S 

MD&A Management’s Discussion and Analysis 

MOU Memorandum of Understanding 

MTO Marine Terminal Operator 

 -NNFC National Finance Center 

NVOCC Non-Vessel-Operating Common Carrier 

NSA NVOCC Service Arrangement 

 -OOA Office of Administration 

OFM Office of Financial Management 

OGC Office of General Council 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMS Office of Management Services 

OPM Office of Personnel Management 

OPS Office of Operations 

OSRA Ocean Shipping Reform Act of 1998 

OTI Ocean Transportation Intermediary 

 -PPAR Performance and Accountability Report 

PGA Participating Government Agency 

PIERS Port Import Export Reporting Service 

PIO Performance Improvement Officer 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 51

P.L. Public Law 

PREMIER Premier Automotive Services, Inc 

PRPA Puerto Rico Ports Authority 

PVO Passenger Vessel Operator 

 -RRPI Regulated Persons Index 

 -SSAC Small Agency Council 

SERVCON Service Contract Filing System 

SES Senior Executive Service 

Shipping Act Shipping Act of 1984 

 -Tthe Ports The Port of Los Angeles and the Port of Long Beach 

TSA Transpacific Stabilization Agreement 

 -UU.S. United States 

U.S.C. United States Code 

 -VVOCC Vessel-Operating Common Carrier 

VoIP Voice over Internet Protocol 

 -W- 

 West Cameron West Cameron Port, Harbor and Terminal District 

WY Work Year 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 

 

 

 

 

 

 

 

 

FEDERAL MARITIME COMMISSION

 

 

FINAL ANNUAL PERFORMANCE PLAN 

FOR FY 2009

February 2008 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 1

LIST OF ACRONYMS 

1984 Act Shipping Act of 1984 

ADR Alternative Dispute Resolution 

FMC/Commission Federal Maritime Commission 

FISMA Federal Information Security Management Act of 2002 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full Time Equivalent Employee 

FY Fiscal Year 

GPEA Gov’t. Paperwork Elimination Act 

GPRA Gov’t. Performance and Results Act 

IT Information Technology 

NSA NVOCC Service Arrangement 

NVOCC Non-Vessel Operating Common Carrier 

OMB Office of Management and Budget 

OSRA Ocean Shipping Reform Act of 1998 

OTI Ocean Transportation Intermediary 

SBREFA Small Business Regulatory Fairness Act of 1996 

SC Service Contract 

Section 6(g) Section 6(g) of the Shipping Act of 1984 

Section 19 Section 19 of the Shipping Act of 1984 

SOP Standard Operating Procedure 

U.S. United States 

VOCC Vessel-Operating Common Carrier 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 2

INTRODUCTION

This document comprises the FMC’s Final Annual Performance Plan for FY 2009. As set forth in GPRA and 

general guidelines published by OMB, the Commission has prepared a single Performance Plan so as to present a 

comprehensive picture of performance across the agency. This plan is closely linked to the agency’s Strategic Plan. 

This plan differs from the FMC’s Initial Annual Performance Plan for FY 2009 submitted in September 2007. In 

this final plan, the FMC has developed performance measures and targets that are directly linked to the Outcome 

Goals set forth in the agency’s Strategic Plan. This final plan introduces measures that will evaluate the success 

over time of the Outcome Goals established in the FMC’s Strategic Plan, unlike the initial plan which was 

confined to annual performance goals encompassing particular, current objectives. It is envisioned that further and 

more comprehensive performance measures will be developed when the Strategic Plan is next updated. That 

update is scheduled to commence in February, 2008. 

For FY 2009, we have continued the modified approach for our annual planning first implemented with our 

Revised Annual Performance Plan for FY 2005. Agency performance goals are tied directly to Strategic Goals 

instead of our budget program activities. This has resulted in the development of performance goals better suited 

to the achievement of agency-wide objectives, as opposed to more narrowly focused goals tailored to the 

responsibilities of individual units. It also facilitates our aim of utilizing a more inclusive, collaborative approach 

in conducting our ongoing activities, which we believe both enhances decision-making and improves ultimate 

results. Addressing our performance goals in this fashion has enabled us to link planning, budgeting and 

performance more effectively. 

The Commission used its existing consultation process in developing this Plan. We continued our ad hoc meetings 

and visits with industry officials to discuss the state of U.S. ocean shipping and the FMC’s oversight 

responsibilities. In coordination with the various sectors of the maritime industry, we have held periodic briefings 

by industry experts designed to provide Commission staff with valuable information on industry services, 

operations, business practices, and regulatory concerns. The information and opinions we received via these 

various efforts have assisted us in developing our performance goals and implementing approaches. It is clear that 

those involved in the various sectors of U.S. ocean shipping understand the Commission=s major program 

activities and, at the same time, the Commission is cognizant of the views of all parties with whom it interacts. 

 

In line with OMB guidance, the Commission has reflected the resources needed to accomplish its various 

functions. We have provided FTE and funding figures for each Strategic Goal, which reflect what we believe will 

be required to accomplish the performance goals and “steady state” functions under each respective Strategic Goal. 

Accordingly, all Commission resources are accounted for in this Plan, i.e., the figures under each Strategic Goal, 

when summed, reflect the full FTE and funding levels of our FY 2009 budget. 

The Commission will post this Final Annual Performance Plan on its Internet website to ensure that it is readily 

accessible to interested parties, and will advise all employees to take the time to review it. Additionally, all 

employee performance plans are required to comport with the agency’s Strategic and Annual Performance Plans, 

and contain specific elements and standards with a clear explanation of what is expected of the employee in 

support of the agency achieving its goals. This process in turn has the effect of directly furthering the 

Administration’s initiative on strategic human capital management. Performance of managers and staff is 

evaluated in part on how they achieve the objectives in this plan. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 3

FMC VISION AND MISSION

The FMC’s vision is: 

Fairness and Efficiency in U.S. Maritime Commerce. 

To achieve its vision, the FMC’s mission is to: 

• Develop and administer policies and regulations that foster a fair, efficient and secure 

maritime transportation system. 

• Protect U.S. maritime commerce from unfair foreign trade practices and marketdistorting activities. 

• Facilitate compliance with U.S. shipping statutes through outreach and oversight. 

• Assist in resolving disputes.

OSRA and the events of September 11, 2001, have significantly changed the manner in which the business of 

ocean shipping is being conducted. The industry continues to restructure its operations to adapt to dynamic 

economic conditions, emerging trends, and maritime security efforts. International trade remains dependent upon 

an efficient ocean transportation system. Therefore, it is imperative for the FMC to ensure that its oversight 

activities produce a competitive trading environment in U.S. ocean commerce that is in harmony with and 

responsive to international shipping practices, and permits fair and open commerce. We must focus our energies 

and efforts on this mission, and assure that the agency is organized and managed in a manner best suited to 

accomplish it with a minimum of government intervention and regulatory cost. Effective use of emerging 

information technologies will facilitate our efforts. Our actions also must encourage the development of a sound 

U.S.-flag liner fleet. Accordingly, the FMC has established the following five strategic goals to carry out its 

statutory mandates. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 4

FMC STRATEGIC GOALS

1. Efficient Regulatory Process: Provide a timely, efficient and decisive regulatory process, 

including alternative dispute resolution, to enable all segments of the industry to operate 

more effectively, with a minimum of regulatory costs. 

2. Compliance: Promote efficiency and fairness in U.S. foreign waterborne commerce 

through various means, including outreach and monitoring, to protect the public and 

assist stakeholders in achieving compliance with ocean transportation statutes 

administered by the FMC.

3. Balanced Enforcement: Foster economic efficiencies, reliance on marketplace factors 

and maritime security by administering U.S. shipping statutes in a balanced and equitable 

manner to redress excessive anticompetitive actions and other unlawful activities. 

4. Technological Efficiencies: Employ technological enhancements to improve efficiency 

and to facilitate the exchange of information. 

5. Management Capabilities: Ensure the FMC has the appropriate organizational 

framework and management systems to carry out its statutory mandates. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 5

LINKAGE BETWEEN MISSION STATEMENT 

AND STRATEGIC GOALS 

Our strategic goals address essential FMC statutory, programmatic, and management responsibilities. They were 

developed with a specific focus on accomplishing the basic purposes of our mission and attaining the competitive, 

nondiscriminatory shipping environment envisioned by the 1984 Act, as amended by OSRA. 

The primary intention of Strategic Goal 1 is to minimize regulatory costs by maintaining timely and decisive 

regulatory processes, and providing various dispute resolution services. This will render the FMC more effective 

in addressing discrimination or other actions that preclude industry efficiency, while reducing the costs of pursuing 

matters before the Commission. Decisive action and effective assistance in resolving informal complaints or 

disputes will help to remove uncertainties as to statutory interpretations or the application of FMC rules. Such 

uncertainties may impede operational efficiencies or technological changes, each of which can foster a more 

economical ocean shipping system. 

Our second strategic goal centers on achieving compliance with the substantive provisions of the shipping statutes 

the FMC administers, and protecting those involved in U.S. ocean commerce from unfair practices. We will 

address this goal particularly by interacting with all sectors of the industry, and by vigilant monitoring of ongoing 

commercial activities. Accomplishing this goal should minimize the unjust discrimination and undue preference or 

prejudice that precludes certain shipping interests from obtaining rates or service levels that can render their 

businesses more economic and efficient. Increasing industry compliance should enable stakeholders to concentrate 

on fair and legal means of enhancing operational efficiency, secure in the knowledge that competitors are not 

engaging in widespread illegal actions aimed at improving short-term profits. The agency’s focus on the 

qualifications of intermediaries operating in the U.S. trades will afford greater protection to our stakeholders and 

contribute to national maritime security. And cruise passengers also will be protected through the demonstration 

of financial responsibility by passenger vessel operators. 

Strategic Goal 3 is designed to foster economic efficiencies, assist maritime security initiatives, promote reliance 

on marketplace factors, and redress excessive anticompetitive practices harmful to international commerce. This is 

a direct link to our mission statement’s call for an efficient, secure, competitive, market-driven ocean 

transportation system. Our continuing efforts to address the actions of foreign governments that adversely affect 

U.S. interests and our foreign trade comport with that aspect of our mission aimed at creating an environment “free 

of unfair foreign maritime trade practices.” Our focus on commercial malpractices enhances our objective of 

limiting unlawful activities. 

We also have a specific strategic goal that focuses on making effective use of advancements in IT to improve the 

efficiency of our operations and enhance our exchange of information with external parties. Carrying out the 

agency’s mission in times of budgetary limitations dictates that we appropriately utilize all available resources. 

Dynamic changes continue to be made in this area, and the Commission intends to take advantage of any 

improvement that can enable it to perform its functions more effectively. We hope to improve our business 

operations so as to add efficiency to the Commission’s dissemination and receipt of information. We intend to 

perform the research and analysis necessary to identify the best options for implementing technical enhancements 

to facilitate our efforts to achieve our mission. 

Finally, our fifth strategic goal addresses Commission management and operations. In order to achieve the 

objectives of our mission, we must maintain effective processes that enhance efficiency, without serving as ends in 

themselves. It is essential that we manage for results, and that we effectively tie our budget needs to our 

performance. This strategic goal serves as the internal underpinning that enables us to accomplish the policy 

objectives set forth in our mission statement. This goal also ensures continuation of a comprehensive approach to 

the strategic management of our human capital. 

Achieving these mission-driven goals will enable us to address the external factors we face, while assuring an 

equitable and efficient administration of the shipping statutes under our jurisdiction. Our processes and procedures 

will be refined or updated as necessary. We are committed to accomplishing our strategic goals and the Outcome 

Goals related to them. Therefore, specific means have been identified to enable the FMC to achieve these goals in 

the most cost-efficient and least disruptive manner possible. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 6

Strategic Goal No. 1: Efficient Regulatory Process Provide a timely, efficient and decisive regulatory process, including alternative dispute resolution, to enable all 

segments of the industry to operate more effectively, with a minimum of regulatory costs. 

43 FTEs and $8,500,000.00 will be required to accomplish this goal. 

A. 2009 Steady State Activities:

• Adjudication and resolution of complaints. 

• Adjudication and resolution of investigatory proceedings, including fact-findings and show 

cause proceedings. 

• Issuance of rules through the rulemaking process. 

• Commission decision-making activities through meetings (formal and notation) that comply 

with the Government in the Sunshine Act. 

• Public information and assistance processes such as press relations, responses to legislative 

and regulatory inquiries, and compliance with Freedom of Information Act and Privacy Act 

requirements. 

• Other regulatory processes, including activities such as appeals of delegated authority 

actions, policy issuances, and formal petition processes. 

• Providing timely legal counsel to the Commission in order to facilitate regulatory action that 

is consistent with statutory mandates, representing the Commission’s interest in matters 

before Congress and OMB. 

• Reviewing and refining Commission rules to determine their economic impact and ensure 

that they reflect the current industry environment, as well as meet the needs of the 

Commission’s regulatory mandate. 

• Compiling, organizing, and maintaining Commission records. 

• Monitor, review and modify, as necessary, Commission regulations to address changing 

trade conditions, industry practices or statutory modifications. 

B. Outcome Goals 

 Outcome Goal 1.1: Provide parties to proceedings with alternative means to resolve their disputes, 

including informal ADR, and encourage their use. 

Measure: Disputes resolved by Office of Consumer Affairs and Dispute Resolution Services 

 Target: 100 

Outcome Goal 1.2: Conduct hearings in an expeditious and equitable manner, so that litigants and 

the industry can adjust their behavior accordingly. 

Measure: Percentage of complaints or investigations completed within two years of filing or 

Commission initiation beginning with cases filed or initiated in FY 2007. 

Target: 60% 

Outcome Goal 1.3: Permit and encourage the use of electronic filings and other processes that 

result in less expense and timely resolution of disputes. 

Measure: Percentage of Active Electronic Docket Logs updated within 72 hours of receipt of 

key documents issued or filed in Commission proceedings. 

Target: 85% 

Outcome Goal 1.4: Update Commission rules as appropriate to adjust to changes in the regulatory 

and commercial environment. 

Measure: Number of rules pending in Unified Regulatory Agenda. 

Target: 2 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 7

Strategic Goal No. 2: Compliance

Promote efficiency and fairness in U.S. foreign waterborne commerce through various means, including outreach 

and monitoring, to protect the public and assist stakeholders in achieving compliance with ocean transportation 

statutes administered by the FMC.

31 FTEs and $5,388,000.00 will be required to accomplish this goal. 

A. 2009 Steady State Activities:

• Reviewing and maintaining a database of SCs between (also NSAs between NVOCCS) 

ocean common carriers and shippers, and using this database to guard against 

anticompetitive practices and other unfair prohibited activities under the 1984 Act. 

• Ensuring that common carriers’ rates and charges are accessible to the shipping public in 

private, electronically accessible systems. 

• Ensuring that OTIs maintain bonds that protect the shipping public from financial losses. 

• Providing formal and informal legal opinions and guidance to the Commission’s staff and 

the general public to ensure clarity and understanding of Commission rules and regulations. 

• Administering the Commission’s international affairs program. 

• Coordinate with other agencies regarding maritime security. 

• Reviewing operational and pricing agreements among ocean common carriers and marine 

terminals to ensure that they do not unduly restrict competition. 

• Issuing passenger vessel certificates evidencing financial responsibility of vessel owners or 

charterers to pay judgments for personal injury or death or to repay fares for the 

nonperformance of voyage or cruise. 

• Licensing OTIs to protect the public from unqualified, insolvent, or dishonest companies. 

• Responding to informal complaints and informal inquiries from Congress and the public 

relating to Commission responsibilities. 

• Acting as a liaison between the FMC and the public by responding and/or coordinating 

agency responses to public inquiries. 

• Maintaining a specialized maritime law library for agency and public use. 

• Conducting audit activity of regulated entities, including OTIs and VOCCs, to promote and 

ensure compliance with applicable statutes and Commission regulations. 

• Responding to inquiries and complaints from the regulated industry and shipping public. 

Providing information, assistance and forms necessary to comply with applicable statutes 

and Commission regulations including educational seminars. 

B. Outcome Goals 

 

Outcome Goal 2.1: Increase the rate of compliance under applicable U.S. shipping laws and 

regulations relating to tariffs, service contracts, unfair trade practices, antitrust immunity, 

discriminatory practices, carrier pricing and service, ocean transportation intermediary activities, 

and passenger vessel operations. 

Measure: Percentage of minutes and monitoring reports received within regulatory deadlines or 

formal extension.

 Target: 95% 

Measure: Percentage of new and amended OTI applications that are processed within 45 days. 

Target: 80% 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 8

Outcome Goal 2.2: Conduct educational programs and provide opportunity for informal 

exchanges between our stakeholders and the Commission.

Measure: Number of industry entities invited to address Commission staff. 

Target: 3 

Measure: Presentation, panel participation and attendance by staff at trade conferences. 

Target: 3 

Outcome Goal 2.3: Maintain fair competition in U.S. ocean commerce.

Measure: Achieve positive outcomes in matters for which formal request for additional 

information is made to parties of filed ocean common carrier or marine terminal operator 

agreements. 

Target: 90 % 

Outcome Goal 2.4: Protect the public and users of ocean transportation services from activities 

that violate the shipping statutes. 

Measure: Number of investigations opened to address alleged harm to the public as a result of 

Shipping Act violations.

Target: 50 

Strategic Goal No. 3: Balanced Enforcement

Foster economic efficiencies, reliance on marketplace factors and maritime security by administering U.S. 

shipping statutes in a balanced and equitable manner to redress excessive anticompetitive actions and other 

unlawful activities. 

16 FTEs and $2,861,000.00 will be required to accomplish this goal. 

A. 2009 Steady State Activities:

• Investigating discriminatory rates, charges, classifications, and practices of common 

carriers, terminal operators, and OTIs operating in the foreign commerce of the U.S. 

• Representing the FMC before U.S. courts and other administrative agencies. 

• Reviewing staff recommendations and initial decisions for legal sufficiency and preparing 

final decisions and orders. 

• Regulating rates, charges, and rules of government-owned or -controlled carriers to ensure 

that they are just and reasonable and are not unfairly undercutting private competitors. 

• Protecting shippers and carriers engaged in the foreign commerce of the U.S. from 

restrictive or unfair foreign laws, regulations or business practices that harm U.S. shipping 

interests or ocean trade. 

• Prosecuting formal proceedings initiated by the Commission. 

• Monitoring activities and conducting investigations of regulated entities and of SC activity 

to ensure compliance with statutes and regulations administered by the Commission. 

• Conducting non-adjudicatory fact-finding proceedings as directed by the Commission. 

• Providing liaison between the Commission and the shipping industry, the public and other 

governmental entities. 

• Coordinating and cooperating with other government entities to improve homeland security 

by effective exchange of information and assistance regarding foreign ocean transportation. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 9

B. Outcome Goals 

 Outcome Goal 3.1: Assure carriers do not exercise their antitrust immunity in a manner that 

results in unreasonable practices, rate increases or service decreases.

 Measure: Percentage of rate agreements analyzed for 6(g) compliance. 

 Target: 100% 

Measure: Number of memoranda, special reports or studies on significant competition related 

issues. 

Target: 3 

Outcome Goal 3.2: Ensure that Commission actions are taken with appropriate consideration of 

their impact on the industry and users of transportation services, including small business 

considerations, and are directed at market-distorting activities. 

Measure: Number of un-addressed comments received in rulemakings regarding SBREFA 

concerns. 

 Target: 0 

Outcome Goal 3.3: Provide regulatory assistance and encourage voluntary compliance with 

shipping statutes and regulations through consistent industry outreach and education efforts.

Measure: Number of compliance presentations by staff to industry and shipping public. 

Target: 3 

Outcome Goal 3.4: Neutralize, or affirmatively address, restrictive trade practices of foreign 

governments.

Measure: Number of unresolved FSPA and Section 19 proceedings. 

Target: No more than 2 

Outcome Goal 3.5: Improve maritime security by curtailing unlawful participation in the U.S. 

ocean transportation system. 

Measure: Percentage of identified unlicensed OTIs sent compliance warning letters. 

Target: 95% 

Strategic Goal No. 4: Technological Efficiencies

Employ technological enhancements to improve efficiency and to facilitate the exchange of information. 

17 FTEs and $2,987,000.00 will be required to accomplish this goal. 

A. 2009 Steady State Activities:

• Implementing a wide range of IT programs and services, including operating the agency’s 

local area network, strategic planning for short- and long-term IT initiatives, IT security, 

data telecommunications, database development and management, and Internet page 

development and maintenance to enhance productivity and efficiency. 

• Maintaining and updating internal databases to enhance the ability of the public and 

Commission to obtain relevant program-related information and enhance staff productivity. 

• Converting Commission records into electronic format to enable easier public access to 

information. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 10

B. Outcome Goals 

Outcome Goal 4.1: Streamline the Commission's work processes through effective utilization of 

information technology.

Measure: The number of technology solutions that are designed and implemented and used by 

the Commission to facilitate process improvement through the use of databases and record 

keeping systems. 

Target: 6 

 

Measure: Cumulative number of technology solutions that are designed and implemented and 

used by the Commission to facilitate process improvement through the use of databases and 

record keeping systems since FY 2007 (including current fiscal year). 

Target: 12 

Outcome Goal 4.2: Use electronic technology for the receipt of documents filed with the 

Commission as envisioned by the Government Paperwork Elimination Act ("GPEA"). 

Measure: Percentage use of electronically submitted forms by regulated concerns versus receipt 

of traditional paper-driven applications and processes. 

Target: 50% 

Outcome Goal 4.3: Safeguard programs and systems as required by the Federal Information 

Security Management Act of 2002 (“FISMA”). 

Measure: Number of technology-related programs and systems developed or implemented that 

achieve full compliance with Federal information security mandates. 

Target: 12 

Outcome Goal 4.4: Disseminate Commission and staff issuances through the use of electronic 

technology. 

Measure: The total number of visits and downloads from agency website. 

Target: 10 percent increase measured against previous year website traffic statistics, FY 2007 - 

2009. 

Strategic Goal No. 5: Management Capabilities

Ensure the FMC has the appropriate organizational framework and management systems to carry out its statutory 

mandates. 

24 FTEs and $4,217,000.00 will be required to accomplish this goal. 

A. 2009 Steady State Activities:

• Executing financial management policies and programs, including developing annual budget 

justifications for submission to the Congress and OMB, managing agency appropriations, 

administering internal control systems for agency funds, travel and cash management, and 

coordinating with contractors who provide accounting and payroll services. 

• Fostering human resources management principles, including recruitment and placement, 

position classification and pay administration, occupational safety and health, employee 

assistance, employee relations, workforce discipline, performance management and 

incentive awards, employee benefits, career transition, retirement, employee development 

and training, personnel security, and an equal employment opportunity. 

• Ensuring the program operations of the agency are administratively supported via 

telecommunications, procurement of administrative goods and services, property 

management, space, printing and copying, mail and records services, facilities and 

equipment maintenance, and transportation. 
Federal Maritime Commission 

Fiscal Year 2009 Budget Estimates submitted to the Appropriations Committee 11

• Promoting economy and efficiency in the administration of, and protecting and detecting 

waste, fraud and abuse in, the agency’s programs via auditing agency operations. 

• Providing guidance to staff regarding administrative matters, including procurement, 

personnel and contracting issues. 

• Ensuring program compliance with various rules and regulations regarding such areas as 

forms clearance, Paperwork Reduction, Small Business Paperwork Reduction Act, and other 

Federally required reports and submissions. 

B. Outcome Goals 

Outcome Goal 5.1: Organize and manage the agency's staff consistent with established priorities, 

with an emphasis on workforce planning, diversity, and effective internal communication. 

Measure: Percentage of agency employees who participated in required annual training during 

the fiscal year (e.g., ethics, IT security, No FEAR, etc.). 

Target: 100% 

Measure: Number of awareness, recruitment, training, new-employee orientation, 

workforce development, and quality of life initiatives offered to agency employees. 

Target: 250 

Outcome Goal 5.2: Clearly and accurately communicate the Commission's program requirements, 

activities and decisions in a manner consistent with the Information Quality Guidelines for Federal 

Agencies. 

Measure: Percentage of internal Commission orders or SOPs reviewed, developed or updated by 

Office of Administration during the fiscal year. 

Target: 33% 

Measure: Percentage of agency records which have been assessed with respect to records 

disposition requirements with respect to the current fiscal year. 

Target: 33% 

Outcome Goal 5.3: Respond to changing industry conditions and business environment through 

use of state-of-the-art automated systems for internal and external processes and a flexible and 

well-trained workforce. 

Measure: Percentage of agency employees who participated in optional skill-building, 

management and other training during the current fiscal year. 

Target: 25% 

Measure: Percent of payments (user fees, penalties, etc.) received electronically via Pay.gov 

versus older technologies (e.g., checks). 

Target: 25% 

Outcome Goal 5. 4: Enhance performance and accountability through linking planning, financial 

management and performance. 

Measure: Percentage of management officials undertaking reviews of internal controls and 

vulnerability assessments for their programs during the current fiscal year. 

Target: 95% 

 

Measure: Number of material deficiencies found in most recent financial statement audit. 

Target: 1 or fewer 

Measure: Received “unqualified opinion” from financial statement auditors with respect to the 

current fiscal year. 

Target: Yes