FEDERAL 

CO

ANNUAL 

Fis

TABL

LETTER OF TRANSMITTAL 

MEMBERS OF COMMISSIO

SENIOR COMMISSION OFFI

I THE COMMISSION

A History 

B Functions 

C Organization 

IL THE YEAR IN REVIE

A Trade Developme

B Restrictive Trad

C Enforcement 

D Surveillance 

E Passenger Vessel 

F TariffAutomatio

HI SURVEILLANCE AN

A Surveillance 

B Enforcement 

IV DEVELOPMENTS IN 

A Transatlantic 

B Mediterranean 

C Middle East 

D Africa 

E Latin America an

F Transpacific 

G Worldwide 

V AUTOMATED TARIF

A Introduction and 

B Early Studies on 

C First Step in Tar

D The Shipping A

E The TariffAutom

F ATFI Feasibili

The ATFI Adv

G Benefit Cost Ana

Procurement A

II Inquiry on the F

Presolicitation 
I Remote Retrieval 

J Contract Award and 

K Docket No 9023 

L Batch Filing Guide 

M Miscellaneous Milesto

N Update on Remote Ac

VI THE FOREIGN SHIPPING 

A General 

B Top Twenty USLin

Trading Partners 

VII SIGNIFICANT OPERATIN

ORGANIZATIONAL UNIT

A Office ofthe Secretary 

B Office of Administrat

C Office of the General C

D Office ofEqual Emplo

E Office ofInspector Gen

F Office of the Managin

G Bureau ofEconomics a

H Bureau of Tariffs Ce

I Bureau ofEnforcement 

J Bureau of Administra

APPENDIXES

A Organization Chart 

B Commission Proceedi

C Agreement Filings and 

D Tariff and Service Co

Special Permission A

E Civil Penalties Collecte

F Investigations 

G Statement of Appropria

and Receipts 


FEDERAL M

WAS

To the United States Sen

Pursuant to section 1e

7 of 1961 and section 

1936 as amended I am 

annual report of the a

Commission for fiscal y

Additionally section 

Update on Remote Acc

with the request of C

developments of reason

to the Commission s

Information System AT

MEMBERS O

Ming C Hsu

Commissioner

Appointed 1990

Term Expired 1996

Har

Ap

Ter

Del

C

Ap

Ter

One vacancy as ofFeb

SENIOR COMM

Secretary 

Chief Administrative Law 

General Counsel 

Director Office of

Equal Employment Op

Inspector General

Managing Director

Deputy Managing Directo

Director Bureau of

Economics and

Agreement Analysis 

Director Bureau of

Tariffs Certification

and Licensing 

Director Bureau of

Enforcement 

Director Bureau of

Administration 

THE CO

A 

The Federal Maritime Com

established as an independen

Plan No 7 effective August 1

Maritime Board was respons

commerce and the promotion o

Marine Under the reorganizat

were separated into two cate

The responsibilities associate

efficient US Merchant Ma

Administration now located w

The newlycreated FMC was 

regulatory provisions of the s

The Commission is now 

oceanborne transportation in 

passage of the Shipping Act 

major change in the regulato

operating in the US foreign 

B F

The principal statutes or st

Commission are the 1984 Act 

1988 FSPA section 19 oft

Act and Pub L No 897

Commission also administered 

and the Intercoastal Shippin

regulated common carriage in 

The regulatory responsibility 
was transferred to the Su

effective October 1 1996 p

1995 Pub L No 10488 1

The Commission sregula

Protecting ship

foreign commerc

marketoriented 

governments an

carriers that hav

of the US

Protecting the r

to transport car

and foreigntof

Reviewing and 

carriers and othe

commerce Th

pooling joint se

Receipt and re

regulation ofrate 

in the USforei

Regulating rat

regulations and 

or controlled ca

reasonable

Issuing passen

financial respon

to pay judgmen

repay fares for 

cruise
Licensing interna

Bonding of non 

NVOCCs

Investigating d

classifications a

carriers termina

operating in the f

The Commission is autho

1920 Act and section 13b5

ensure that the foreign commer

market barriers to ocean s

countervailing action to corre

USforeign commerce and m

by carriers or foreign governme

ofUScarriers in the US fore

access ofUSflag vessels to 

The 1984 Act is applicable 

and other persons engaged in 

agreements that have become 

antitrust laws as contained in 

Commission reviews and evalua

not exploit the grant of an

agreements do not otherwise 

unreasonable increase in transp

in service

In addition to monitorin

Commission is also responsible 

well as those permitted by ag

shippers and other members 

prohibits carriers from undu
other members of the shipp

carriers to make their rates c

tariffs that must be on file w

assess the rates and charg

Commission The Commissi

to approve or disapprove 

commodity rate levels in th

regard to certain foreign gov

Pub L No 89777 req

with 50 or more berths wh

monitor financial coverage to 

injury or nonperformance 

certifies such operators upon 

of financial responsibility

The Commission carrie

conducting informal and form

considers evidence and ren

orders and implementing 

adjudicates disputes involvin

shipping public and other af

C OR

The Commission is com

for fiveyear terms by the Pres

Senate Not more than three 

to the same political party 

Commissioners to serve as 

executive and administrative 

The Commission sorgan

Managing Director Office 

Counsel Office of Admini
Employment Opportunity Offic

Economics and Agreement An

and Licensing Bureau ofEnforc

The Managing Director assists 

and administrative direction t

offices and bureaus are respon

programs or provide administr

In fiscal year 1996 the Com

fulltime equivalent positions 

14836 000 The majority oft

in Washington DCwith area 

York Miami and Seattle Fie

and Miami were closed on Jun

THE YEAR 

The dynamics and emerging 

made for an eventful year as 

international trade and tra

Commission adapted its oversig

interests were protected again

US importers and exporters 

and equitable trading environm

Restrictive practices by fore

focus with one case becoming 

ongoing attention The C

s

independently address such m

responses to remove unfair ba

monitored closely particularly t

antitrust immunity so that c

reasonable treatment in all US 

targeted to assure that past Co

remained successful and that a

compliance with applicable sta

became much more prominen

experienced financial and ope

expended considerable resou

ensuring that these operators 

responsibility to cover any cas

This Annual Report essent

basis and contains a syn

accomplishments Special sec

interest This section of t

Commission smajor activities 
A TRAD

The Commission contin

developments relevant to 

Ocean shipping remains a ke

various trading partners

Cargo volume in the tr

gains achieved in the prev

trades continued to combine 

entering into cooperative 

chartering agreements mos

Such efforts have helped to k

and more in line with dema

the TransAtlantic Confere

decline in their collective m

competition Competition in 

in 1997 as major Far East ca

enter the trade in a new partn

greater pricing flexibility 

transatlantic as a result of 

TACA TACA voluntari

independent action provisio

Europe the European Com

objections against TACA 

anticompetitive and outside 

shipping conferences A fina

year 1997

USexports to the Med

but fell by the second quarter 

previous fiscal year The 

renewed strength ofthe US

Imports from the region sho

year partly due to the wea
competition led to lower freig

further rate declines expected a

Agreements among carriers s

rationalization

In the Middle East USex

of 1996 most ofwhich was acc

Growth in US exports to Sa

that nation srevenues increase 

diversification program A dr

apparel pesticides and vege

imports from the region Ov

from the Middle East are expe

USexports to Africa wer

while imports grew by 5 perce

cocoa and cotton realized sub

Africa was the principal US 

percent of all US exports to 

by an imbalance with more 

westbound Some carrier

participating in rationalizatio

services Chronic congestion a

problem Nonetheless sever

US Gulf ports and African p

Many nations throughou

economic reform policies to 

trades US exports to Lati

year 1996 and US imports in

US exports rose by 15 perce

percent Despite the increa

depressed due mainly to overc

cargo volumes created proble

major South American cou

entered into numerous coope
chartering agreements in 

imbalance and overcapacity

The transpacific trades re

import and export markets 

decline in cargo growth tha

year 1996 as major Nort

stagnation or weak growth 

carriers in the AsiaNorth Am

discussing new service con

least some classes of shipp

individual carriers In add

Transpacific Stabilization 

reintroducing the capacity m

under Commission pressure 

volumes and rates were re

Westbound Rate Agreement c

service contracts to intereste

B RESTRICTIV

The Commission is spec

unfair trade practices that ha

or USinterests Specificall

the Commission to implemen

USoceanborne trades to a

shipping The FSPA direct

conditions affecting US c

countervailing sanctions aime

And section 1365of the 

assess penalties or take o

government or carrier und

accessing a foreigntoforeign 
The Commission has been e

these responsibilities over the 

barriers to fair trade for the b

year 1996 was no exception

The Commission continu

requirements for the use of 

Information provided by c

unfavorable conditions existe

system in Japan which requires 

for port usage It was also r

were being applied by the Gove

to operate a stevedoring com

reviewing the carrier respons

attempts to resolve these s

restrictions have been a long 

is determined to remove them 

and permit carriers to enhance 

port areas This matter 

consideration by the Commis

In Brazil the Commission 

to carriers in the trade to obtai

Brazilian authorities to permit 

warehouse in Brazil Inform

inability to carry cargo in 

contravene section 1365o

orders are under Commissio

further addressed in the upco

The Commission also co

Peoples Republic of China 

through on its commitment to 

forwarding and consolidat

Diplomatic negotiations and 

under the FSPA or section 19 
to allow UScarriers to pr

owned subsidiaries The C

matter to ensure that the PR

C EN

The Commission is charg

so that a nondiscriminatory 

maintained for the overall b

enforcement efforts com

surveillance ofindustry practi

goals Our enforcement pro

with applicable statutes and e

exist in all USocean trades

The Commission restruc

fiscal year by merging its 

Hearing Counsel into a new B

enables closer coordinatio

prosecutorial units while str

related functions It also facili

initiatives or programs desig

The Commission also clos

fiscal year 1996 We have 

Miami New Orleans and S

each ofthese cities These rep

cities and transportation c

providing liaison between the 

collecting and analyzing intellig

and practices The North At

new bureau sstaff in Washin

The cooperation between 

Service Customs purs
Understanding MOU conti

and recently has expanded Cu

which enterUScommerce be

appearing on an ocean carries

personnel to become more s

should be investigated for statu

of cooperation to increase sig

In fiscal year 1996 the 

malpractices by ocean carriers 

South American trades We als

in the transatlantic transpacific 

These investigations included 

shipper practices such as 

misdeclaration of measureme

untariffed and unbonded NVO

monitor the impact of settlem

in the North Atlantic throu

meetings with the conference

The Commission collec

penalties this past fiscal yea

segments ofthe maritime indu

shippers forwarders and N

settlements covered a wide 

Continued Commission invest

deter such malpractice in th

trading environment in the U 

D SU

The Commission consiste

effectiveness of its monito

programs are essential in ide
trade practices and ensuring 

requirements

In fiscal year 1996 the 

rules and requirements for ag

new regulations provide fo

upon the initial filing of 

standardized periodic repo

agreements As part ofthe in

Commission issued over 140 

section 15 of the 1984 Act 

effective carrier agreement pa

our assessment of carrier pro

Other major monitoring a

year 1996 included a mo

information filed by TACA 

the TACA carriers slot 

transpacific conferences indep

comprehensive studies and r

market conditions in major line

of carrier global alliances and 

monitoring report on controlle

controlled carrier spricing pra

preparation of data and analy

combat restrictive practices o

E PASSENGER 

The Commission spasse

financial responsibility requirem

89777 This law requires 

stateroom accommodations f

passengers at US ports to e
indemnify passengers in the c

cancellation of a cruise injury 

This program has significan

of the general public Annual

the 135 vessels operated by 

program These voyages are 

responsibility in excess of 1 b

performance

The Commission s pass

significant workload increases 

the continued growth and com

This growth has translated into 

rulemakings programs respo

operational difficulties and leg

The Commission has been 

address the approximately 7

ceiling and the industry smu

revenues Most recently it 

Rulemaking in an effort to p

deposits and prepaid fares 

discontinued a separate proc

alternative forms of demo

nonperformance

Additionally the Com

bankruptcy proceedings inv

Cruises LC The Commis

public and the travel industry 

developments in these matter

The Commission also in

program scasualty and no

warrant legislative action C
significantly reduced valu

protection for cruisestono

in

erosion

the US

of the

for

penalties

cruises

prov

em

F TARIF

The Commission sauto

operational since 1994 T

implement a paperless tariff 

is created on the filer s own 

discreet individual filings o

process At the end ofthe fisc

batch filing The Commissio

fiscal year 1996 and closed 

system Those tariffs and al

available on a 24hours basis 

ATFI access capability T

locations to the ATFI system 

locations in this database Ad

made available electronically 

page

The Commission issued a 

the filing of service contracts 

in paper format Since the 

required to be filed electronica

afforded carriers the option 

incorporating by reference th

rule is intended to reduce Co

errors

records

and duplication and fac

The Commission also en

Transportation Board STB 
offshore tariffs in ATFI Le

transferred jurisdiction over the 

STB The MOU permits these t

and sets up specific protocols 

well as STB sreimbursement 

costs This change had no eff

carriers and the Commission r

contract it will deal with the 

behalf of STB

The Commission also agree

contract providing for its cont

fiscal year 1997 The Comms

reductions in certain services a

system from operating at op

accessibility and effectivenes

Recompetition of the con

enhancements in line with tec

held in abeyance given our budg

legislation altering present tar

SURVEIL

ENFO

A SUR

The systematic surveillanc

conditions in the US line

Commission sresponsibilities 

helps ensure that carriers opera

statutory standards of the 198

Commission regulations To t

variety ofmonitoring programs 

to keep informed of current 

trends and carrier pricing and 

The importance the C

monitoring activities is a direct 

1984 Act of the Comms 

disapprove agreements The 

under relevant statutory a

Commission shall become effe

30th day after notice in the 

Agreements can be rejected 

include statutory provisions 

Commission may extend the 

information from filing parties 

determines that an agreement 

is likely to unreasonably inc

transportation service it may 

Court for the District of Col
As a consequence of the 

agreements from taking ef

evaluation of post impleme

considerably The Commiss

an evaluation through its exa

market share concentration 

conditions as well as pri

contracting activity shipper c

management programs

In fiscal year 1996 the 

Analysis prepared a varie

concerning the pricing and se

UStrades Projects included 

in the eastbound and westb

overview of major alliance 

containing a summary of com

Trade including an over

agreements 3 an analysis 

Atlantic Conference Agreem

semiannual TACA FMC meet

conference activities and t

agreement ofthe previous ye

regarding the initial filing of 

carrier agreements under the 

and expanded information and 

9431 Information Form and

for Agreements among Oce

Shipping Act of 1984 5 

agreements on file with the Co

entitled Carrier Agreement

6 completing negotiations w

ofindependent action data to b

of its members and 7 comp

Navigation Company sgener
B ENF

The 1984 Act establishes a

of the shipping and related ind

declaration of policy to ensur

economic ocean transportation 

trade ofthe US The enforcem

of Commission activity A ma

compliance with the provisions 

provides the pathway to the 

Enforcement is a traditional m

deterrence

On October 20 1995 the C

of Investigations and Heari

Enforcement The new Bure

between investigations and 

management of these two rela

The Commission closed its 

Angeles Miami and New Y

presence in Los Angeles and 

Seattle through an area repre

These representatives also s

transportation centers within t

North Atlantic region is the 

Washington DC

The cooperation between 

and the US Customs Serv

exchange of investigative inf

both agencies and recently has 

isolate shipments which enter S

than that which had appeared o

This information permits Co

selective in determining whi
violations of the 1984 Ac

expect this avenue of coo

import and export trades o

The Commission comp

possible abuses of the an

member lines in the prior f

was launched in response t

TACA including possible re

members to take independe

restrictions contained in 

allegedly untariffed and 

established by TACA m

Commissionapproved settle

changes to the conference 

rollback ofrate levels and a

on conference service contra

to monitor the impact of 

quarterly reports and semiann

members

During 1996 the Commis

by ocean carriers cargo i

American trades Other trad

investigations including the tr

Central American and Caribbe

improper shipper practices 

and absorptions misdescriptio

measurements as well as car

unbonded NVOCCs

During fiscal year 1996 

in the compromise of civil pe

many different segments o

operators shippers forward

See Appendix E
DEVELOPME

USFORE

A TRA

In the trade between the US 

US liner export growth a

decelerated considerably wh

North Europe continued to fal

ofUSliner exports to North 

fiscal year 1996 largely du

relative to some European c

Contractionary fiscal measu

European nations to reduce p

Maastricht criteria for admissio

1999 also contributed to a wea

to North Europe However 

continued economic expansion 

and Poland continued to sup

this region and thereby provide

declines experienced in the oth

projections anticipate only a 1 

volume ofUS exports to N

USliner import growth f

sharply throughout fiscal ye

reduction in liner import volum

gain Inventory selloff adjust

1996 stronger British Dutc

a fall in the competitivenes

production costs contributed 
European goods Yearend 

the volume ofUS imports 

While the inbound trade f

the stronger of the two trad

an overall balance as the vo

with imports That trend con

trade imbalance between the 

approximately 87 percent ov

continued to sharply decline 

During the fiscal year con

dropped 2 percentage points 

westbound sectors ofthe trad

competition from independen

Once known as the mo

trades plagued by chronic o

fierce competition especially 

the transatlantic trade has re

growth has been relatively u

major eastwest trades the tr

more stabilized trade characte

1992 reported losses by prin

were 400 million Since then 

the conference have resulted 

projections for 1996 expect a

Unprecedented carrier so

growth in the trade have been 

dramatic improvement While 

experienced significant capac

global capacity has grown 65 

capacity alone increasing 36 p

transatlantic has grown by onl

had to invest heavily to acc
growth on other major trade rou

been isolated from the full forc

new vessel capacity to the trad

However the relatively sta

the transatlantic may change in 

Co COSCO one of the w

s

the trade in February 1997 

conference weekly service in th

other carriers Kawasaki Kis

Marine Transport Yangmin

currently serve the transatlant

the trade While industry repor

targeting about 10 percent o

projected to grow near that a

A significant amount of C

focused on the activities ofthe 

TACANo 202 011375 

year 1996 In its earlier fo

TACA originally became eff

subsequently amended to its pr

TACA currently has 17 

Maersk Atlantic Contain

Cho Yang DSRSenator 

Hapag Lloyd AG Hapag L

Ltd Hyundai Mediterrane

Neptune Orient Lines Ltd NO

Orient Overseas Container 

Containers Ltd PO Pol

SeaLand Transportatio

TMM and Tecomar S A 

Yangming the last two carrie

trade Hanjin and Hyundai d

capacity Both joined TA

chartering arrangements with 
Since the Commission s

ago evidence has developed 

the Commission ssettlemen

competitive shipping envir

example the requirement 

independent action IA 

commencing January 1996 

service contracts and an inc

rates Both pricing mechanis

shippers needs at competitiv

this option to its members 

TACA plans an increase 

TEU and 50 per 40foot 

increase over 1996

In addition to the Comms

members activities TACA c

European Commission EC 

Statement of Objections ag

provisions were not covere

shipping conferences under R

agreement on inland Europe

terms and conditions for s

maximum levels of freight forw

in relation to the exchange of 

October 25 1996 to app

Statement of Objections A 

several months

Meanwhile in November 

member lines immunity fro

could result in fines of up 

revenues if TACA eventually 

Union competition laws Wh

TACA claims the move is un

of fines in the European cour
While the pace at which 

between carriers has slowed 

of cooperative operational or 

efficiency continued during the 

during 1996 are mentioned

Lykes Lines Lykes a

entered into a space chartering 

Agreement No 232 0115

subcharter or assign any or all 

in the trade between the US

a bankruptcy petition under Ch

this agreement was entered int

by the court in order to allo

Lykes Lykes has served 

operator for many years How

trade While the agreement p

vessels and would provide AP

transatlantic trade APL has 

The GrandAlliance Agree

Lloyd NOL NYK and PO 

agree upon the deployment 

volume of cargo in their indiv

expenses and interchange e

the commencement of operat

alliances formed mainly b

agreements the Grand Allia

multitrade lane strategic ca

core operational activities un
B MED

In general European dem

due to widespread budge

particularly in Italy Spain a

drop in the expansion of US 

resulted from weak currencies 

region some pickup is expec

US containerized import 

improved somewhat partly 

currencies

Early in the year US 

Mediterranean rose somewhat 

lira and the Spanish peseta 

ofthe increase with tobacco a

moving commodities Howev

taken in Italy and Spain severe

Mediterranean in the second 

began to confront budget d

European Monetary Reform u

in other major European marke

boom began to dissipate Th

1997

Some growth in US imp

expected this year However t

US tariffs on pasta shipment

year USimport shipments fro

were moderated by a strong I

activity and weak production 

Yearend projections expect US

single digits and maintain this 

regional currencies including 

should serve to reinforce tra
However pasta traffic from It

penalty duties are imposed 

countries Turkish tobacco s

slow given the favorable ou

appreciation of the Italian l

reduction of Italy sbudget d

USimport traffic from Italy 

Strong competition from 

Mediterranean cargo on the E

further decline in freight rates 

in rates is expected in 1997 

space

The continued rationaliz

trades was also apparent 

Mediterranean trade during 

The NanjitrAMA Agreem

the trades between US Atlan

in France Italy and Spain 

Middle East and Far East 

the Middle East section of th

The Maersk SeaLand 

011541 permits the parties t

or third parties to charter or 

and to discuss and agree up

basis The Agreement operat

Portland Maine Brownsville 

and coastal points serve

Mediterranean and Black S

Iberian peninsula and inla

Mediterranean Black Sea a
The Israel Discussion 

cooperative working arrange

and agree on a voluntary b

service contracts and to exc

trade between US Atlantic 

ports and points including Alas

ports and inland points in Israe

members of the Israel Trad

011346 and COSCO

C MI

USexport traffic to the M

the first quarter of 1996 

investment activities in the wake 

this improvement was accoun

strong currency and rising dem

newsprint and resins accounte

bound traffic in the second qu

turmoil in the area along with 

half of 1996 may erode Israe

US

progress

exports

toward

This

peace

slowdown

and econ

c

to doubledigit growth in US 

The revival of US exports to 

Expectations are for a rebound 

to rising Saudi revenues from 

success in its industrial divers

demand for industrial inputs is 

USimport shipments from 

the current year A substantia

apparel pesticides and vegeta

traffic from the Middle East US

to its strong currency and US
Emirates were down sharply 

was a drop in shipments o

Arabia Overall traffic grow

decline 4 percent this year 

Assuming however that the M

pace ofUSimports is expect

as lower Israeli interest rates 

making that nation s goods 

shipments are expected to be 

rising prices thereby facilita

diversification program and i

Industrial expansion in In

has stimulated trade to that re

boost in US exports to Ind

that region scotton crop resu

this commodity to Pakistan 

exports to India remains pro

to continue economic reform

This should bolster demand f

other areas on the subconti

austerity measures in Pakist

spending and industrial produ

rebound in US exports t

Bangladesh led to a sharp dro

1996 However the curren

exports to Bangladesh next ye

production and investment a

USimport traffic from 

poor performance earlier th

instability and contraction o

1996 Political problems in 

Pakistan resulted in a decline 

the second quarter of 1996 US

subcontinent had recovered 
political stability and improvem

government economic reform 

harvest in Pakistan will ens

cotton and apparel from tha

Bank splan for improving f

with the establishment ofaddit

manufacturing are expected 

traffic from that nation

The continuing trend tow

liner shipping services was 

significant new carrier agre

HanjinAMA Agreement No 

sailing agreement which exp

ports in the Middle East and 

ports in France Italy and Sp

charterers combined eastbou

January 1 1996 The parties t

and DSRSenator Lines

D 

African countries had a w

year 1996 Kenya which 

appreciation of the Kenyan 

performance fueled an import 

of 4 percent Uganda and T

Cooperation of States fell b

settled its conflicts with S

measures required by the Worl

in time to improve its growth 

less than 1 percent growth 

Africa had a 3 percent gr

implementing tighter fiscal an

the value ofthe South African 
also added a strong privatiza

labor reforms and tariff cut

Morocco had growth rates o

growth was primarily the resu

In Central Africa the Economi

including Rwanda and Bur

continuing was at the bottom 

The Congo which achieved 

changed its Marxist economic 

It privatized its oil company an

electricity water utilities te

conglomerates

UScontainerized trade w

Exports were up by 17 pe

increased by 5 percent to 

especially cocoa and cotton in

South Africa remained Africs

accounting for 37 percent 

imported were mainly hig

machinery electronics and 

increased by 17 percent ove

trade was plagued by an imbal

Africa than the amount exitin

diffused the problem by 

agreements and aroundthew

Chronic congestion at m

for carriers in the trade Ma

efficient loading and unload

inadequate landside storage 

the ports of Dar es Salaam 

congestion occasionally slow

Port of Maputo in Mozambiq

civil war In Somalia the 

business Ports in Southern 
and Capetown in The Republic 

Walvis Bay in Namibia were 

USAfrica Navigation Inc 

between Houston and the We

Abidjan Cotonou Lome Port 

and Luanda deploying two s

added a fortnightly multi purp

Southeast African ports pro

Other services to Africa rema

Agreement activity in the A

to The UnitedStatesouthrn 

011259 to provide associate 

Another agreement the Afri

Sailing Agreement No 203

Lykes to charter space on Wilhs

interchange equipment and ag

of terminal facilities and other 

E LATIN AMERIC

Private investment in Latin 

by 5 percent during fiscal ye

activities of the Inter Americ

expanded its lending and gra

1 billion into regional econom

on infrastructure developmen

economic development of the 

direct private loans increase

projects were in the early sta

fiscal year

Brazil Venezuela and Ar

rates at the start of the year e
year and ended with growth 

while recovering from the pe

only 1 percent Elsewhere 

Nicaragua growth rates w

However at least 12 Latin 

growth rates of less than 1 pe

Average duties well over 

to a 13 percent average 

restrictions which were in 

reduced to apply to 11 perce

were undertaken increasing th

performance Brazil curbe

protection from stagnating se

allowed more foreign and 

Argentina opted for more 

adjustments oftheir economi

many other countries esp

approach to privatization 

development of various secto

US containerized ex

significantly reaching 18 pe

Peru Imports from those c

Caribbean US exports and 

22 percent respectively 

exceeded 273 billion an in

fiscal year As in previous y

severe imbalance because mor

the region than was exporte

excess of empty containers 

authorities

Despite increases in the 

West Coast of South Amer

Rates have also been depre
Following a rate reduction of 

all major carriers made subs

rates These rate reductions p

the dissolution of the Latin A

Members of the Central Am

discussing the restoration of 

Some regional ports ex

due in large part to inadequate 

space for container storage 

Santos often delayed ships lon

Valparaiso Antofagasta A

experienced severe congestio

volume in container traffic 

increase of 81 percent

Port privatization efforts 

succeeded during the year S

and expansion were also under

costing 72 million will provi

acres ofyard space equipped w

project will increase capacity 

Agreements filed in the L

fiscal year 1996 provide eviden

in some form of cooperative 

sharing and service rational

Columbia Express Space Cha

011555 CSAVNational S

011553 Caribbean Maritime 

001 APLCrowley Space Cha

011517 CSAV Mitsui Space C

Space Charter and Sailing Ag

Lines LtdCrowley America

TMMContship Space Charte

011494001 MontemarZim 
203 011527 Mediterranean 

Grancolombiana Space Cha

011522 NavierasTropical C

011525 and DSRSenaTransn

These agreements are seen as 

imbalances and overcapacity 

F TR

The transpacific trade lanes 

major import and export marke

dramatic changes in both the 

in this area however slowe

trades the decline in cargo gr

continued during the first th

major Northeast Asia trades e

growth Those changes in car

by proposed legislation that 

contracting led to serious ra

and rates were relatively 

Westbound Rate Agreement 

long standing resistance to s

Organizationally the trans

concentric circles Inboun

conferences the Japan Unite

JUSEFC No 202 0115

JapantoUSsubtrade and th

Agreement ANERA No 

the rest of the Far EasttoUS 

UStrades The membership 

same

In addition to these two 

composed of the members o
nonconference carriers that 

Transpacific Stabilization Ag

a discussion agreement It 

coordination between the con

trade The TSA has a mark

the inbound transpacific trad

The organizational struct

trades is almost identical 

membership is essentially 

geographical scope covers the 

Subcontinent The larger dis

lines is the Westbound T

WTSA No 20301132

TSA s except that one majo

member of WTSA Con

approximately 80 percent

While there are a numb

independently and do not parti

activities of TSA and WTSA 

that does not participate

For carriers operating in 

year 1996 began as a disapp

rate difficulties they experience

initiated a series ofrate cuts 

auto parts vehicle kits and 

commodities that account f

volume Similar rate reduct

OOCL NOL Maersk and 

reduced rates on several key co

addition to the Japan market ra

inbound Hong Kong Taiwan 
The autumn discounting wa

to win back patronage to red

those of the non conference 

customers in anticipation of 

contained in pending legislat

eastbound transpacific trades c

with some studies showing a

quarter for each of the three 

through June 1996

In contrast the westboun

strong cargo volumes and 

throughout 1996 The notab

late July to reduce rates subst

commodity in the westbound 

base rate However four day

the discount would be reduce

Stable rates did not mean t

and loss of market share w

TWRA sdecision to reverse i

demonstrated that change wa

of 1996 TWRA signed ove

cotton resin forest product 

further change came in Augu

contracts with NVOCCs of m

One factor often cited in 

eastbound trade and confere

westbound trade was the in

ultralarge post panamax co

4200 TEUs Several lines 

transpacific fleets in 1996 an

panamax vessels approaching 

1997 Anticipation of this a

likely to put on rates was s
discounting and westbou

conferences

Beyond intense eastbou

in conference service contra

vessels the other significant 

on China Fiscal year 199

connections between the US 

service by COSCO China s 

expanding USChina trade w

feeder service to and from Ja

Sea Land Mersk Alliance 

direct transpacific calls at Sha

and the Sea Land Mersk A

South China

Furthermore in Augus

covering shipping service with 

landmark ruling would allow 

and two mainland ports in 

political difficulties remain th

meetings between shipping re

China seem to signal a possib

Taiwan strait Were such an 

important consequences for s

especially Northeast Asia

At the end of fiscal year 

verge of agreeing to loosen 

contracts New contracting p

classes ofshippers to negotiate 

rather than with the conferen

TSA lines also appeared to b

management program that the

in the summer of 1995
G WO

The structure and opera

dramatically over the last few 

operational alliances to give 

COSCO a staunchly indepen

develop closer ties with Yangm

reach of their EuropeAsia co

transatlantic trade in early 19

world slargest carriers has r

most of the world scarriers 

operational alliances the curr

challenges in balancing the c

efficiency while also giving ship

Not surprisingly the impact 

impact on the regulatory stru

and niche carriers have also be

carrier alliances and have deve

even take advantage of these 

Mirroring the consolidation

liner carriers consolidation in 

has accelerated rapidly Lea

already one of the largest fre

three years Fritz Cos has a

With these consolidations th

leading contender for market 

European freight forwarders T

other intermediaries to cons

their niche in commodity or 

Nor has the world port ne

operator alliances As the a

the amount of cargo each ves

the alliances are also bringing 
Ports have had to increase t

dramatically and to purcha

vessels Additionally ports 

availability and railhead thro

congestion Finally alliances 

power with ports increasi

terminal and dock usage The

Ports in Europe Singapor

becoming loadcenter ports 

transshipment motor and or

One of the most interest

pressure the alliances hav

encouraging them into greate

agreements Such discussion 

in the transatlantic and tran

discussion agreements in the 

America trades have attracted 

carriers or too small to join t

Shippers have also respon

ocean carriers by joining toge

Global Shippers Association 

25000 containers under cos

Pacific and Europe the Glo

independent and conference 

significant as the size ofthe co

carriers have increasingly co

been able to offer expanded se

Association contract contem

Asia through the Suez Canal t

moving in the traditional ea

ports Shippers can be expecte

offered by carrier alliances
As a group carriers have 

levels in all trades despite 

carriers Tensions between 

over appropriate rate differe

the service quality provid

approached that of their con

become increasingly insisten

conference rate differential sh

equally insistent about keep

without any agreement on this 

major commodities in the inbo

issue will continue to be a 

additional capacity is brough

AUTOMATED T

INFORMATIO

A INTRODUCTIO

The 1984 Act requires co

commerce ofthe USto file a

tariffs applicable to ocean 

requires that service contracts 

made available to the public 

817 and 1707

A freight tariff filed at 

rates charges and rules app

a carrier or conference A 

between shipper sand cars

tariff Mutual commitments 

shipper guaranteeing the car

period of time in considerati

certain rate and service leve

Additionally terminal ta

engaged in carrying on the 

warehouse or other termina

carrier by water in the foreig

The applicable statutes a

Commission to ensure com

before tariff material is accept

may be rejected by the Co

statutory and regulatory requ
with the law the statutes prov

or ifproperly filed for not ad

essential terms ofa service con

815 818 1708 and 1709

The Commission uses the 

surveillance and investigatory 

by private parties For Com

court case the tariff or se

Commission and in effect is 

charge or rule While tariff a

for regulatory purposes the st

provide rate information t

competition and to facilitate th

such tariff data is filed with and 

to implementation ofthe ATFI 

up to a million paper pages o

The enormous amount of 

with a limited number of e

technology as a means of alle

the government and the shipp

of this subject area by the Co

studies beginning in 1981 an

year 1983

B EARLY ST

The Commission conducted 

premises upon which tarifffiling 

contained three parts which inc

interviews with shippers expor

interviews with ocean carriers 
The overall conclusion o

of the requirement to file 

maritime industry but that th

particularly in the area of co

threepart study the Commis

impact of filing activity upon 

With the results of these 

explored the issue of tar

conferences freight forward

firms This survey revea

implementation of an automa

C FIRST STEP IN 

Recognizing the need a

automation the Commission 

were interested in deve

November 14 1983 the Co

Business Daily a Notice o

Paperless Federal Mar

Storage and Retrieval System

received The commenters a

policy nature which needed t

D THE SHI

On March 20 1984 the 1

continued need for various ta

certain government agencies a

on the Act section 8 continu

tariffs Service contracts wer

While service contracts were 

the Commission their ess

Commission in tariff format 
E THE TARIFF AU

In August 1984 a spec

formed to gather additional 

questionnaires to ocean ca

forwarders and shippers on 

improve the process

At about the same time as 

survey was conducted at the 

tariff automation and percept

In August 1985 the Tas

Automation A Functional A

results ofthe 1985 industry an

the

need

problems

for automated

with manual

filing and

ta

of an automated system

The report recommended 

evaluate the technical alternat

a market analysis of the d

likelihood that the Commiss

report concluded that the fea

since the Commission lack

Because the Commission need

unbiased thorough and acc

August 1985 for technical ass

consultant must remain indepe

and could not become the con
F ATFI FEA

TARIFF A

THE ATFI ADV

The Commission entere

General Services Administra

development of a feasibility st

with a GSA approved contra

Early in 1985 the Co

importance of not only soli

arena the opinions of all i

automation of tariff filing 

provisions

ATFI Industry

of the

Advisory

Federal Adv

Com

Candidates for membershi

nineteen industry members se

three steamship conferences 

and the National Customs Bro

ports and the California A

exporters and importers and 

and Importers two informa

Industry Association

The critical objectives 

established as follows

To allow each 

formulate and 

process of autom

To educate eac

about the needs 

such a process
To investigate the 

foreseeable auto

accommodate su

Then if feas

compromises of 

segment to desig

beneficial to all i

The ATFI Advisory Com

January and November 1986 

reviewed the reports of the F

report of the Contractor was 

Committee with a few su

Feasibility Study identified 

processing tariff retrieval a

identified key policy assumpt

The functions and require

the study have not changed 

subsequent efforts to procure 

The Feasibility Study sta

Tariff automation appea

maritime industry and t

appears to be politically f

automation appear to b

balanced against the bene

limits in the budgetary pro
G BENEFIT C

PROCURE

In October 1987 a Ben

commercial contractor and c

the project This analysis was 

and Budget OMB In 

procurement authority for the 

H INQUIRY ON T

ATFI and PRESOLI

In December 1987 the 

request for proposals RFP 

vendor community on the proj

sought public comment on the 

a first ATFI Notice of Inqu

The purpose of this outr

regulated community and the p

the Commission splans for 

requested from other than pot

of the proposed ATFI system 

NOI has remained constant t

The electronic ATFI 

seeking a prime contracto

computer with appropriate 

review processing and re

electronically filed is bei

industry Transportation D

emphasize tariff line ite

present system Tariff 

commodity rate items in cu

directly without having t
As recommended by 

standardized commodit

mandated at the beginnin

to provide for these functi

will also include the esse

Full implementation 

commercial firms time to 

least temporary will be g

are not economically abl

The system will be 

computer equipment t

connectibility Filing o

asynchronous terminals 

modem to the Commiss

provide online edit check

correct and that basic s

before the tariff can be 

example will be able to e

dates such as a rate incre

problems for which reje

conflicting tariff provis

Commission staff and if 

level The system comp

this process also

The ATFI system wi

to protect the integrity o

Tarifffilers will be ab

by remote access direc

conferences almost any 

will be able to screensc

can be amended Comme

be used by carriers and co
into the database after cre

clients or transforming th

The Commission will enc

assist small firms who may 

Once the tariff data are 

download the entire data

computer tapes which will 

inexpensive marginal cost 

Commission sstatutory d

reasonable charge In orde

ofrapidly changing freight 

interested persons must 

frequently The Commiss

provide this capability

The Commission will n

of the tariff data for sale to 

commercial tariff services 

subscribe to the database 

services The Commiss

process tariff data internally 

purposes and will continu

valueadded services of co

In order to carry out 

tariffs and essential terms o

inspection the Commiss

reference room at its hea

interested persons can acc

a particular tariff will be br

find the necessary rates an

still be available upon wri

to courts and other tribun

over historical tariff ra

December 22 1987 52 F
The Commission also ex

that remote access to the Coms

available any time of the day 

interested person

While the Commission w

proposed features and functi

draft RFP was issued to the ve

on the bidders list were requ

proposed competitive acqu

conference for an opportunit

In April 1988 the Com

Automation Inquiry 53 Fed 

for the features and functions 

I REMO

While the Commission was 

became aware of concerns rais

Information Justice and Ag

functionality ofremote retrie

the shipping public to obtain te

tariff of a carrier or conferenc

a time and would not provide 

about this feature were base

Commission might compete 

services offered by private 

Commission acknowledged its 

placed the development ofthe 

retrieval concerns 53 Fed R

During the period June 

reassessed the functionality of 

ofremote retrieval This proce
Congress and the Executive B

to the RFP to reflect new fund

In October 1988 the Comm

offerors a second draft RFP f

However the Commission re

on remote retrieval

After much analysis and re

in December 1988 to retain 

remote retrieval In its Second 

the Commission stated

The controlling questio

ATFI system has the C

balanced competing inter

shippers carriers and othe

2 the future role of pri

Commission believes it ha

In October 1986 a ye

complaints about remote 

issued A Comprehens

Automated Tariff System 

proposed functionality o

precise for private sector fi

of submitting proposals 

discussed by the Commiss

the time and there were n

More importantly wit

the Advisory Commit

suboptimized ATFI s 

accommodation to privat
Accordingly the se

general public to perform 

tariffs and essentially no 

In consideration ofthe 

the available technology r

functions the 1986 acco

does

The shipping public 

technology by being allow

limited basis For more 

thirdparty vendors both 

encouraged An efficien

promote fair competition 

Accordingly and af

believes that it has su

conflicting interests invo

struck a proper balance i

originally devised in the Fe

the RFP December 23 

J CONTRACT AWA

After receiving many tech

and after resolving the remote 

a final RFP in January 1989 

bidders list Eight proposa

evaluated for technical qualit

On August 8 1989 the A

System Concept including ver

System Design to Planning 

Contractor of McLean V
International DXI ofPitts

technical as well as the best co

year system life also contained 

Development and Testing 

Operation The contract is 

exercise ofall options Work 

and during fiscal year 1990 the 

well as Phase III Developm

The system Prototype Ph

required by the contract the C

being developed by private in

be incorporated into the AT

survey identified only one 

developed by DXI that me

system At about the same ti

identified other changes m

improve the system One suc

of a new model minicomput

computer This would con

significantly improve user fr

proposed modification contai

of Procurement Authority 

modification

Since DXI contemplated 

proprietary software it cou

software to the Commiss

cosponsor approach und

FAR at 48 CFR 27408 

and relinquishment of owner

contractual arrangement had 

through licensing and escrow 

has a oneyear warranty af

complete access to the un

thereafter
Under the license agreeme

notice as follows 1990 

Unpublished All rights res

United States See 48 CFR 

Conunission does not in any w

product and clause H91 

commercial tariff services perf

to be completely separate from 

the cosponsored approach 

27408 and as implemen

arrangements complied with 

Cong 1st Sess 5 6 1989 

establishing the ATFI system 

ensure that the private contrac

advantage over other private 

added services On July 19 

incorporate these changes

The last optional phase of t

the end of fiscal year 1994 A

continue its contractual arrange

while it considered what appro

to design and develop an u

Accordingly the Commission 

contract that were limited to 

equipment and other necessa

process of developing a formal 

design and develop additional 

K DOC

On August 1 1990 the Com

in which it issued a second ATF

Rulemaking requesting further 

features being considered for AT

paper tariff practices On Decem
a first Interim Report which 

resolved the issues raised in t

On March 25 1991 the 

Report that responded to conc

which had raised concerns in te

1992 authorization hearing h

Marine ofthe House Committe

February 28 1991 Thes

Commission on March 8 199

the matters raised

The Commission sThird 

issued on July 23 1991 and 

listed in the August 1990 

Rulemaking could be issued

The proposed rule in D

Contracts was issued on Sep

as a new Part 514 of Title 46 

being October 31 1991 Pa

covering

electronic

tariffs

system

and

Other

service

CFR

tariffs and service contracts w

515 520 550 580 and 581

Still further comments we

was conducted by the full Com

comments the Commission 

rule of August 12 1992 57 

addressed three major policy 

The Harmonized 

changed from m

without prejudic
As suggested by 

service contracts 

database forma

degree of stand

with the final f

round of comme

Algorithms need 

possible assesso

pre determinab

algorithm requi

for linking textu

dummy algor

fulltext form

algorithmization 

Further comments were in

a result ofthese comments the 

issued on January 4 1993 58 

1993 The major subject of th

the final format for electron

could be filed in fulltext fo

L BATCH 

The proposed refinemen

contained in the fiscal year 1

revision of the File Transfer 

transaction set originally 

Docket No 9023 also provide

available to the public batch f

transfer formats and code refe

facilitate formatting and trans

firms desired the developmen
Accordingly the first Inter

No 9023 appended the AT

among other things transa

dictionary and code referen

Batch Filing Guide has bee

system improvements while 

the public with as much adva

Other parts of the ATFI 

Fundamentals Guide etc are 

available to regular subscriber

throughout the life of the sys

M MISCELLA

Certifications of firms for 

year 1992 There now are 4

On February 11 1992 

implementation previously sc

postponed as a result of 

headquarters offices When 

place in August 1992 Sup

Docket No 90 23 issued 

implementation schedule with 

areasoperations of the filers 

The implementation sche

at 57 Fed Reg 59999 and 

Fed Reg 31522 This sch

filed electronically at differe

and conferences operating i

trades were scheduled to file 

trades the Africa Md East 

trades and the CentraUSouth 

carriers in the domestic offsho
provided for the beginning oft

of new service contracts

Many filers were not ready 

and were granted extension

representing 219 carrierscon

granted enabling carriers to ext

extensions however the 

December 31 1993 as being 

compliance Those filers who 

found themselves named in o

should not be canceled for fai

Commission issued its last sh

fiscal year 1995 All told app

tariffs canceled for failure to f

During fiscal year 1996 

system At the end ofthe fiscal 

in the system a net increase of 

compared to fiscal year 1995 T

now that the conversion fro

complete

Additionally all essential t

after November 22 1993 a

Commission received 9425 new 

which represented an approxima

year Amendments to service 

year with 19427 being filed A

term filings are available on 

individuals and organization

registered to access ATFI data

The Commission has kept 

routinely and systematically 

issuing press releases and ATFI 
also continually adds new locat

fiscal year with 321 494 locatio

registration forms have been 

Commission sInternet home 

The Commission also publ

service contracts These con

format Since the essential term

electronically filed in the ATF

to afford the option of filing 

incorporates by reference t

essential terms filing This rule 

carrier costs minimize er

automation ofthe Commissis

During fiscal year 1996 

with the STB regarding the fil

ATFI Legislation passed in 

over the US domestic offsh

The MOU permits these tarif

sets up specific protocols for 

as STB sreimbursement to t

This change has no effect on 

Also the Commission remains 

it will deal with the Contrac

STB

The Commission also agre

contract providing for its Con

fiscal year 1997 The Coms

reductions in certain services a

system from operating at op

confident that system integrity 

be unduly compromised Re

refinements and enhancemen

continues to be held in abeyan
the possibility of legislativ

requirements

N UPDATE O

SEPT

Since 1986 during the 

members of the public e

accessibility ofthe ATFI syste

detailed description of Con

Report of the Federal Mariti

was

ATFI

to

system

be made

Congress

available

was

e

private sector providers of inf

these concerns in section 2b

that The Commission sha

system to limit remote acces

This statutory restriction 

HR

fiscal

Rep

year

173

1990

to

Appropriatio

HR2991 P

In implementing th

Commission to develop p

not compete with p

services As the C

s 

recommended remote 

rudimentary with essenti

the procedures governing 

be able to access the sys

automatic log off

In response to this direc

remote retrieval oftariff data 

the following two respects
1 A tariff retriever woul

individual tariff per conne

and

2 A tariff retriever would 

30 minutes per connection 

These restrictions were inc

for the planned implementation 

implementation was postpon

relocation of the Commissios

on November 2 1992 the P

section 502 ofwhich 46USC

restriction referenced above 

The major features ofPub L 

a The Commission m

without time quantity or othe

b A direct access 

retrieval and

c A secondary use c

tariff data maintained by oth

information obtained directl

This secondary use charge w

The Commission implem

102582 by publishing regul

that wish to obtain the ATF

collecting secondary user fee

use fee provisions on Septem

have direct access at a co

secondary use of tariff data n

THE FOR

PRACTICE

A 

The Omnibus Trade and C

Congress and effective with 

1988 contains at Title X Su

Act of 1988 FSPA

The FSPA directs the Co

affecting US carriers in S

conditions do not exist for f

US law or as a result of a

maritime or maritime related 

During fiscal year 1996 

restrictive practices of the 

People sRepublic of China 

institution of formal proceed

These matters included requ

Japanese harbor services limi

services in China and Brazilia

trading with other South Am
B TOP TWENT

TRADIN

Section 10002 80of th

Act of 1988 requires the F

Congress a list of the twen

largest volume ofoceanbome 

year in bilateral trade with th

The data that the staff use

twenty partners were furn

Census Census data distin

dry cargo service Census defi

offered by a regular line opera

and sailing schedules of vessel

fixed The data Census supp

exclude all nonliner shipmen

The export data are com

Declarations while the impo

entry and warehouse withd

required to be filed with Cu

forwarded to Census Both 

shipments between the USp

post exports and imports 

transactions such as military ho

and other supplies intransit s

The most recent year for w

Commission is calendar year 

the twenty foreign countries 

oceanborne liner cargo in bila

figures in the table represent 

and exports in thousands of lo
Top Twenty 

Trading 

Rank Country 

1 Japan 

2 China PRC 

3 Taiwan 

4 South Korea 

5 Germany 

6 Hong Kong 

7 Brazil 

8 United Kingdom Incl N 

9 Italy 

10 The Netherlands Holla

11 Indonesia 

12 Thailand 

13 France 

14 Belgium 

15 Australia 

16 Spain 

17 India 

18 Malaysia 

19 Philippines 

20 Venezuela 

Source CS Department ofComme

are based an monthly data provide
The same countries comp

Partners in 1995 as in the p

only minor changes occurre

Kingdom fell in rank from 

Brazil shifted up by one po

Philippines slipped from the 

ascended in rank from 18t

position to end the year at 1

Since the Commission 

trading partners in calendar 

have occurred in the rank of C

and Southeast Asian count

China has increased over 3

ranked seventh It entered t

the top three trading partner

Over this same period 

countries has increased sign

Indonesia increased 192 p

Changes in the rankings of So

not mirrored the rapid advan

years
SIGN

OPE

ACT

ORGANIZA

A OFFICE OF 

1 General

The Office ofthe Secretar

submitted to and emanating 

Accordingly the Office is re

regular and notation agend

Commission and preparing 

taken by the Commission on 

formal and informal complai

statutes and other applicable 

docket applications and 

administrative errors in serv

ofactions ofthe Commission 

all formal proceedings re

notices pleadings briefs or 

proceedings and subpenas ser

employees thereof admini

Government in the Sunsh

information requests from th

and the public issuing publica

documents of the Commis

volumes of Commission dec

the Commission sregulatio

approving or denying specia

The Secretary sOffice als

designed to reduce the lengt

and participates in the impl

shipping statutes During fis

The Commission 

proceedings 
discontinued o

initial decisions 

administratively 

The Commissio

applications an

claims sought 

During the sam

rules in 5 rulem

proposed rule

Eight rulemak

petitions were p

end of the year 

anticipated in fis

Special Docket 

proceedings dur

2 Office of Informal 

Informal Dockets

This Office coordinates 

throughout the Commissio

information requests were pr

to the general public of ov

attributable to the compla

189 605 Since 1987 this 

over1700 0

The Office facilitated com

representatives and Commiss

information requested by the g

this Office responded to 851 

The Office maintained liais
Consumer Affairs Council 

fiscal year

In addition the Office is 

reparation claims up to 10

common carriers by water e

US These claims must be 

Act Through the end of 

responsible for adjudicatin

offshore commerce ofthe US

domestic offshore commerc

October 1 1996 pursuant to 

L No 10488 109 Stat 80

under this program con

adjustments arising from a

significant number pertain 

shipments During fiscal y

pending cases were carried 

same period 9 informal doc

and there were 7 pending ca

During fiscal year 1996

The Office coo

Bureau of Enfo

several nonperf

many customer

apparent losse

The Office incr

of complaints 

District Offices

The Office c

activities Effo

variety in the t

B O

ADMINISTRA

1 General

Administrative Law Judges 

the receipt of a complaint 

Commission sown motion

ALJs have the authority to 

subpenas rule upon offers o

take or cause depositions to 

would be served thereby re

conferences for the settlem

consent of the parties disp

matters make decisions or re

action authorized by agency 

Procedure Act

At the beginning of fiscal y

before the ALJs During the 

formally settled 10 proce

proceedings and issued 11 ini

14 decisions in special docke

2 Commission Action

The Commission adopte

special docket decisions of th
3 Decisions of Adm

proceedings not yet 

The Government of th

SeaLand Service Inc 

Ltd Docket No 8926

In this proceeding the co

of Guam on behalf of its sh

carriers SeaLand Service I

charged unreasonably high rat

West Coast oftheUSto Gua

various provisions of the 

Government sought remedia

excessive freight money paid d

argued a novel theory in rate 

general high level of rates war

The presiding judge found 

allegations and that a number o

highcost Guam trade justifie

Ceres Marine Termi

Administration Docket 

In this proceeding a stev

operator alleged that respond

unfairly treated and unlawfull

violation ofvarious provisions 

company a better lease allowin

respondents premises becaus

vessel operating common carr

its own lease with responde

presiding judge found that 

complainant scompetitor even 
the same volume ofbusiness 

ruled that the Commission sh

the amount of money damag

the Commission srules of p

Universal Cargo Manag

Marine Co Ltd Dock

In this case Universal C

shipper and also an NVOC

unlawfully refused to give Un

section 8c of the 1984 

damages exceeding 200 0 

his first Initial Decision the 

timely requested access to 

Commission however the pr

lacked jurisdiction over th

formed and the relevant statu

that disputes involving breach

or by arbitration and not by 

South Carolina State 

Stevedore and Marin

No 94 24

Petitioner South Caro

Commission to issue a dec

proposed tariff rules that 

operate at the Port spremises 

the interests of the Port a

presiding judge decided th

unreasonable and unlawful u

much discretionary authorit

protesting stevedoring com
rules would unfairly discrimina

be allowed to go into effect

AAEL America Africa 

International Trade 

William W Joyce III D

In this proceeding comp

shippers had violated section 

transportation without paying 

unjust or unfair device or me

freight bills In his first Initial D

one respondent a limited liab

the

owners

money

was

and

also

that

personally

the oth

l

the Commission the presidi

insufficient to support a fin

personally misled or deceive

found that this respondent wa

incurred in defending against 

Seair Cargo Agency Inc 

Possible Violations ofSec

of1984 Docket No 961

This case is a Commissio

Seair Cargo Agency Inc a fo

10bof the 1984 Act by c

27 occasions at various tim

numerous shipments respond

US Respondent later ceased 

canceled for failure to maintain 

presiding judge found that the 

had proved that respondent 
charged and that a penalty of

surety bond should be asses

Haewoo Air Shipping 

Co LtdPossible Vio

Shipping Act of1984 D

This is another Comm

foreignbased NVOCC wh

applicable tariff rates on 25 

1994 and 1995 from Far E

discontinued its operations an

judge found that the Commiss

that respondent had violated 

occasions

surety bond

and

should

that

be

a penalty

asses

The ALJs also issued d

3008 3009 3010 3011 30

were pending before the Co

4 Pending Proceeding

At the close of fisca

proceedings before the ALJs 

by the Commission The rem

filing of complaints or app

shippers conferences port au

trade associations and steve

C O

THE GENE

The General Counsel pro

This includes reviewing for leg

Commission action drafting pr

policies and preparing final 

Commission ratification In 

Counsel provides written or or

staff and the general public 

more detail below the G

Commission before the cou

Commission sinternational af

1 Decisions and Rulem

The following are adjudica

matters prepared by the Gene

Information Form a

Requirements for Agree

Carriers Subject to the S

94311 61 Fed Reg 156

The Commission issued co

the information submission req

common carriers subject to 

must be accompanied by an inf

the agreement member lines c

service patterns before they e

member lines of certain kinds 

submit reports on their oper

which will reflect the lines ca
service patterns after they ente

ofthe new regulations to a pa

whether the agreement autho

certain activities and second

market share An agreeme

activities specified by the r

Commission unless it qualifie

filing exemptions but will not 

obligations The intent of 

Commission with improved 

carrier practices on the fo

facilitate the processing and 

under the standards of the 19

Marine Terminal Tariff 

Vessel Agents Petition 

P395 27SR611 J

The Commission was petit

on behalf ofindependent vesse

ports to initiate a rulemaki

marine terminal tariffprovision 

terminal charges of the ve

principals Petitioners argue

practice imposes an onerous 

unfair unilateral assignment 

The Petition was oppose

They argued that the relief re

order than a rule and that t

defective The ports also m

inaccurate and that it urged a 

FMC case law which has de

not per se unreasonable
After hearing oral argume

noting that there was no factu

of a broad rule of nationwid

instances of unreasonableness 

basis

Noncontiguous Domes

9604 61 Fed Reg 58

February 14 1996 

October 7 1996

The Commission issued a 

the transfer from the Commis

regulation jurisdiction in the no

to the ICC Termination Act of 

the STB continue the Comms

file their noncontiguous dome

agencies entered into an arra

any such tariffs filed through 

STB will reimburse the Com

receiving these tariffs

Service Contract Filing 

Revisions Docket N

February 12 1996

The Commission initiated 

ofProposed Rulemaking NP

1995 The NPR solicited 

Commission sservice contr

abbreviated service contract 

to require service contracts 

addresses of all contract part
The Commission received 

of ocean common carrie

consideration ofthe comment

affords contract parties the 

abbreviated format and req

parties legal names and busi

All Marine Moorings 

Baltimore Docket No 

1996

All Marine Moorings In

or mooring services at va

Baltimore ITO Corporati

terminal operatorstevedore 

Locust Point under a lease f

owner of the marine termina

All Marine alleged that 

itself as part of its marine te

South Locust Point termin

performing line handling at Is

two with which All Marine ha

by ITO to establish a monopo

that this constituted an unrea

an unreasonable terminal pra

10b2and 10dofthe 

1916 Act All Marine scomp

and reparations in the amount 

to ITO

Both parties had cited a

cases involving exclusive le

terminals The ALJ sInitial D

generally could be divided 
exclusive or monopolistic p

arrangements reasonable unde

In light of the facts of th

circumstances were more li

cases in which exclusive or pr

The ALJ found that the burde

had on balance not shown th

standard of the Shipping Act

The Commission affirmed 

common theme of the Com

importance of each individu

explained that while no determ

or action would be consid

necessary to a determination 

Act the concepts terminol

involved in antitrust cases are 

Administrative Offset 

61 Fed Reg 50444 Se

The Debt Collection Impr

134 Chapter 10 section 310

law on April 26 1996 That A

collect any delinquent debt 

adopt without change 

promulgated by the Departme

Accounting Office or prescrib

aforementioned regulations

To satisfy that requirem

change existing Treasury 

administrative offset The ne

CFR Part 505 were publishe

on September 26 1996 effe
2 Litigation

The General Counsel re

before courts and other ad

litigation work largely consists 

petition for review ofits orders 

the General Counsel also p

enforcement of Commission o

and other cases where the Cos

litigation

The following are represen

FMC v Puerto Rico M

Cir No 951643

The respondent in Save

Maritime Shipping Authority 

Hecht v Puerto Rico Mariti

93 21 filed a petition in the 

Circuit for review of the Coms

that order the Commission 

provisions ofPuerto Rico Mar

compelling shippers to pay 

PRMSA in suits to recover unp

the 1916 Act that carriers in 

reasonable practices relating 

lading PRMSA sought rev

argument on November 8 19

The Court reversed the 

finding that PRMSA searlier 

the Southern District of Florida 

before the Commission for 
Court however affirmed th

practice violated the reasona

FMC v Wilfredo Garc

W Garcia Forwarding 

Court Middle Distric

Number 3 CV92176

On December 7 1992 t

preliminary injunction agai

violations of the 1984 Act p

administrative proceeding D

allegedly violated the 1984 

services without a license an

tariff and bond knowingly 

means to obtain ocean transp

engaging in unfair practices in 

and failing to establish ob

regulations and practices re

handling storing or deliv

allegedly had engaged in frau

booking or attempting to boo

NVOCCs using the names o

knowledge and consent and 

true identities

The US District Court g

information that defendan

Commission filed a Motion 

Contempt for Violation o

entered a Stipulations and C

among other things prohibits 

of the 1984 Act This Ord

from engaging in any oc

activities required full restit
all of defendants 800 telepho

to all the factual allegations an

Court ordered a public defen

defendant failed to appear 

Commission srequest for six m

issued a bench warrant for G

December 9 1994 suppleme

finding absent defendant in con

motion for finding of contem

Garcia was taken into custo

Canadian immigration author

November 20 1996 On Nove

in Albany ordered Garcia detain

ofPennsylvania

3 Legislative Activities

The General Counsel repre

matters before Congress Th

legislation proposing legislatio

officials and responding to Co

During fiscal year 1996 1

inquiries were referred to Gene

also prepared and coordinate

hearings and worked closely 

legislation that affected the Co
4 Significant Ongoing 

Petition of South Caro

Declaratory Order Doc

May 31 1996

South Carolina State Por

For a Declaratory Order Peti

issuing in its FMCfiled tari

license stevedores and marine 

at SCSPA facilities SCSPA 

stevedores and MTOs doing 

public port facilities is neces

the facilities Twelve parties 

The replies to the Petitio

stevedores and nonport MT

public ports who supporte

concluded that the issue ofSCs

for itself was inappropriate 

because it involved past an

violations of the Shipping A

rule for the licensing of 

Commission found that it raise

expertise of the Commission 

violations of the Shipping A

Shipping Acts were not is

forum However in its Order 

that there were material issue

disposed of on the basis of 

matter to an ALJ for an evide

an Initial Decision on May 3

prospectively in violation o

before the Commission on E
Amzone International 

Management Inc v H

Ltd Docket No 9417 

1995

This proceeding was init

International Inc and U

Universal against Hyundai M

alleging violations of sections 

The dispute centers around c

access a service contract betw

On April 28 1995 the pres

which he found that Univers

granted its complaint Hyun

which Universal replied

The Commission decide

interlocutory appeal so that it 

law The Commission then fou

a service contract that the orig

The Commission noted that 

contract does not extinguish 

requested access The Com

termination must be filed with i

cut off a shipper sright ofacces

proceeding to the ALJ for furt

5 Foreign Shipping R

Affairs

The General Counsel is re

Commission sinternational af

monitors potentially restrictiv
and makes recommendations t

addressing such practices

The Commission has the 

shipping practices under sec

Section 19 empowers the Co

governing shipping in the for

unfavorable to shipping T

address adverse conditions af

trades and conditions which 

USbut do exist in that fore

In 1996 the Commissio

practices by foreign governme

may warrant institution of fo

the FSPA

On September 12 199

Demand Orders to all carrie

information on restrictions a

terminal facilities in Japan T

prior consultation system 

operational approvals for po

measuring requirements 3 r

disposition of the Japanese 

collected from carriers servi

serious concern to the carr

including the USflag carrie

In its investigatory order

about these practices and abo

in harbor operations The C

to these orders at fiscal yeare

the upcoming year to determ

liner operators were necessa

port practices
With regard to China the O

to monitor indications that t

through on a commitment made 

1993 to permit freight forw

foreignowned subsidiaries o

included in a previous FSPA 

regarding restrictive practices 

discontinued in 1992 after P

remove the involved restricti

threat of further Commission 

resulted in the PRC concedi

carriers to provide the inv

subsidiaries The Commission 

to ensure that the PRC follow

The Commission on July 

seventeen carriers operating i

ofthese Information Demand 

certain policies or practices o

contravene applicableUSlaw 

to ascertain whether the failu

USflag carrier to operate a 

conditions unfavorable to s

section 19 ofthe 1920 Act or c

US carriers that do not exist 

the FSPA The Commission a

on UScarriers ability to car

Brazil and other South America

vessels to ocean trade betwee

13b5of the 1984 Act

If the information collecte

violations oflaw the Commiss

rulemaking proceedings S

imposition of sanctions inclu

limitations on sailings and sus
The Office ofthe General 

groups and international ma

participated in briefings of fo

Another responsibility o

verification of controlled ca

Common carriers that are 

governments are required 

requirements under the 1984 A

appropriate recommendations 

ofpotential controlled carriers 

Commission components als

carriers In fiscal year 199

information relating to the c

carriers

D O

EQUAL E

OPPO

The Office of Equal Emp

knowledge of Federal EEO 

procedures and regulations to 

program of equal employm

independently under the direc

to the Commission smanage

policies and program of non

planning

The Office is responsible f

emphasis programming and c

with the assistance of collat

Special Emphasis Program C

The Office works close

Personnel managers and sup

Improve recruit

minorities and p

in the workforce

Provide adequat

Facilitate early 

problems

Develop program 

The Director Office o

employees who raise allegati
investigation hearing fact fin

such complaints of discrim

complaints of discriminatio

resolution of formal compla

program simpact and effective

Significant accomplishme

following

1 Provided briefings to 

2 Provided workshops 

3 Provided extensive 

supervisors and employees

4 Reviewed and asses

human resource activity an

5 Continued to utilize o

agency to upgrade the skills 

staff

6 Developed informati

executives area representat

7 Planned and develo

FMC employee participatio

8 Continued to improv

Federal agencies and the co

programs in the special emp

9 Continued to chair 

Directors
10 Continued non dis

response to Pub L No 10

During fiscal years 199

existing programs and initiate 

an understanding ofEEO co

E O

INSPECT

The Office of Inspector G

established pursuant to the Ins

amended in 1988 to provide fo

at designated Federal entitie

It is the duty and respon

Provide policy d

and coordinate 

the Commissios

Review existin

regulations rela

and operations 

concerning the 

regulations on th

prevention and 

administration 

operations

Recommend po

coordinate othe

the Commissio

economy and e

preventing and 

Commission sp

Recommend po

coordinate relat

other Federal a

agencies and n
to all matters rela

and efficiency 

prevention and 

programs and ope

the Commissio

prosecution of pa

Keep the Chair

currently informed 

reports concernin

abuses and deficie

of programs and o

by the Commiss

concerning such 

and report on the 

corrective action

In fiscal year 1996 the O

including four audits relating to 

be collected and remitted to the 

102 582 These audits resu

secondary user fees possibly 

Another audit of particular 

automated data processing tr

were made to improve the 

procuring Federal information 

completed a review of the hea

the OIG sresponsibilities with 

During the year various inv

were opened and pursued T

during the fiscal year

A peer review of the OIG 

General Accounting Office S

issued
In fiscal year 1997 the O

program of audits and revie

program evaluations The g

while continuing to combat an

in agency programs This wo

of extremely austere budge

conducted as necessary

The Inspector General p

Executive Council on Integrity 

a number of committees esta

as a forum for the exchang

community and provides a bas

general projects It is antic

participate in any projects de

The Managing Director 

the Chairman for the manag

programs managed by the

Bureau of Econ

Bureau of Tarif

Bureau of Enfo

Bureau of Adm

F OFF

MANAGI

and thereby implements the re

the administrative policies a

the

Also the Managing Dire

Office of the Se

Office of the Ge

Office of Admin

and administrative assistanc

Office of Equal 

Office of the In

Further the Office of Inform

directly to the Office of the 

This has been establis

achievement of Commission 
In addition the Managin

Management Internal Contr

Office manages those prog

agency s Senior Procurem

Information Officer and the 

The Deputy Managing Di

Commission sATFI system 

Deputy Managing Director ha

of this contract and the pla

Additionally the Chairman 

Commission as the Chairman 

for ATFI oversight

A significant achievemen

was the coordination of th

structure This required amon

shutdown of the agencs 

comprehensive plan for effe

operations program This p

representatives working fro

date technologies in telecomm

carry out the Commission se

their areas of responsibility 

bankruptcies the Office ensur

their rights under the Comms

area The Office continues to 

passenger vessel operators fin

at ensuring that adequate leve

The Office is currently

1 Overseeing the further de

enforcement

including addressing

programs

the

as t

c
offices and the impleme

structure

2 Guiding the maintenanc

Commissioner Hsu soversig

requirements

3 Directing all staff ef

practices of foreign govern

4 Managing the Comms

respect to the President s

streamlining government 

reform

The Office skey objective

further development of the 

light ofthe new field operatio

of staff efforts regarding th

planning for future ATFI re

vessel operator rulemaking 

implement Presidential dir

strategic planning and mana

of staff efforts to address res

Office of Informatio

The Office of Informa

administers the Commisss

IRM program under th

amended as well as ot

responsibility for operating t

include conducting IRM ma

data telecommunications d

applications coordinatin
administering IRM contracts 

Act clearances for submission 

for managing the computer 

programs The Director ofthe 

Forms Control Officer C

Management Officer and ADP 

The Director of the Office a

Contracting Officer sTechnic

During fiscal year 1996 t

Internet

Coordinated

home

the

p

Office GPO s

Subsequently mo

to an inhouse F

Developed an In

FiveYear Plan fo

Published IRM 

Information Tec

share current 

employees

Coordinated tec

security issues rela

ATFI system an

owned and maint

Furnished agenc

records managem

information and 
Migrated the Co

s

a DOSbased 

environment

Coordinated the 

from the closed d

related IT supp

the redistributio

Recommended 

delivered IT equ

representatives 

and Internet acc

Continued coord

issues related to 

optical imaging 

Coordinated the 

from the Comm

Conducted com

FMC componen

Officer for IT tr

Continued to as

audits of indus

compliance with 

technical analys

In addition to implem

providing technical support f

major initiatives for fiscal yea

agencywide Internet access 

site 3 enhancing the F

Commission sinternal ema
capabilities 5 conducting 

audit 6 maintaining liaiso

Government Information Loc

7 providing continued admin

regarding IRM matters
G BUREAU 

AND AGREE

1 General

The primary function o

administer programs related 

common carriers by water un

Bureau smajor program act

Administering 

programs to ide

commercial and 

trade and to ad

current trade 

regulatory ne

transportation

Conducting sys

in areas relevan

of statutory sta

Developing eco

of the Commiss

Providing expe

formal procee

foreign shipping 

Processing and a

terminal agreem
2 Surveillance

An integral part of the Bs

Act is the systematic surveilla

conditions in the US line

surveillance activities is to e

trades comply fully with the sta

laws and Commission regu

administers a variety of mo

efforts designed to apprise 

conditions emerging comme

service activities

For a description of the Bs

year 1996 see Section III A 

3 General Economic A

In addition to research a

monitoring programs the Bu

variety of Commission initiati

Bureau economists prepare t

and cases of unfair shipping 

Act and FSPA They also pre

agency officials

Key projects the Bureau c

I an analysis and report on pe

Trans Atlantic Conference Ag

responses from TACA carrie

slot chartering policies and 

Commission recommendation 

the transpacific conferences re

IA procedures and activities 4 

response to an informal invest
discussion agreements in th

monitoring report of controlle

carrier profiles and an analysi

strategic commodities by a co

6comprehensive economic 

compilations on ocean freig

conditions and interlocking 

trades including the Far Eas

emerging trend of carrier glo

services and regulatory ov

carrier agreement database a

the US Oceanborne Trade 

on a final rule revising the 

reporting requirements for 

Section 15 Orders seeking 

agreements under the new r

responses to waivers from 

the reporting requirement

Commission recommendatio

trade 12 an economic rev

8926 The Government o

Service Inc and American 

inquiries and complaints from 

14 preparation of speech

officials

4 Types of Agreemen

a Conference and In

Conference agreements 

agreement and establishme

groups of ocean common c

limited to a geographical 

agreements are between two 
shared administration or pro

common interest

During fiscal year 1996 t

conference and interconfe

modifications to existing agree

34 conference agreements and 

at the end of the fiscal year

b Pooling and Equal A

Pooling agreements are co

in a given trade providing for th

or revenues or both in the int

stabilizing competitive condit

sailing requirements and oth

overall service efficiency Equa

nationalflag carrier access 

governments of reciprocal tra

laws import quotas or other 

There were 8 pooling and e

end ofthe fiscal year

c Space Charter and S

Space charter agreements a

or container slots between or 

Sailing agreements provide for 

schedules Through effective 

space on those vessels partic

provide a high level of servic

agreements also generally con

A number of conferences a

included space charter and sa

agreements
During fiscal year 1996 

and modifications were filed 

effect at the end of the fiscal 

d Joint Service Agree

Parties to joint service a

agreements operate a joint ve

trading area The joint ventu

its own rates as an individua

Three joint service agreem

and 20 joint service agreemen

fiscal year

e Cooperative Worki

Cooperative working ag

discussion agreements wh

competitively sensitive trad

operational undertakings th

agreement categories Thi

discussion agreements C

amendments in fiscal year 1

the end of the fiscal year

1 Marine Terminal A

Marine terminals opera

provide facilities services an

passengers between land an

delivery of cargo from shi

responsible for the review and 

marine terminal industry
During fiscal year 1996 

agreements and agreement m

terminal services and facilitie

effective upon filing under 

classes of marine terminal 

requirements ofthe 1984 Act 

exemption are processed unde

the end ofthe fiscal year 102 

the Commission

5 Domestic Commerce

In accordance with Com

common carriers in the domes

annual financial and operatin

Bureau reviewed these repo

ensure that rates for transp

provided by domestic commo

ICC Termination Act of 19

1995 repealed the 1933 A

the domestic offshore trades in 

1996 This Act also vests w

Transportation the regulator

jurisdiction

domestic offshore

Thus the

trades

Comm

rates and agreements in the 

fiscal year 1997

6 Future Plans and Pr

The Bureau s overall m

systematic oversight of carri

upgrading monitoring system

that will be provided by ca

Information Fornr and Pos
Agreements Among Ocean Com

Act of 1984 analyze this and 

various trades and anticipate are

impact of key issues facing 

developments in major trades 

trades under the standards of t

section 6g monitoring met

anticompetitiveness generated 

their commercial environment

The Bureau also will con

economic testimony in formal 

areas of its expertise provid

petitions information deman

rulemakings perform pree

agreements to determine whe

specific questions under sectio

raise general policy questio

Commission on the more com

that raise policy issues and pro

under authority delegated by 

H BUREA

CERTIFICATIO

1 General

The Bureau of Tariffs Ce

for the review of all tariffs file

such carriers and MTOs as w

and conferences ensuring that 

financial responsibility service 

forwarders and the certificatio

vessels for financial responsi

the Bureau

Reviews and ma

filings rejecting 

Commission sre

Ensures that ship

not subjected t

discriminatory p

the USforeign 

Approves or 

applications invo

filing rules

Administers the 

program by se

reviewing financia

responsibility

Processes servic

publications file
conferences of s

to reject service c

fail to conform t

Prepares recom

clerical or admin

of service contra

Licenses ocean f

Certifies owners 

UStrades with 

of such owners 

incurred for no

injury to passen

Assists in the ma

system and 

administration 

contract essentia

As part of its program 

longrange plans new or revis

regulations with respect 

recommendations for form

Commission in collaboration 

warranted and cooperates w

regard to enforcement of the 

In fiscal year 1996 the Bu

the Commission sInternet h

matters that the Bureau admi

the Internet including the 

under 46 CFR Part 514 p

requirements under 46 CF

requirements under 46 CFR 
requirements for NVOCCs u

electronic downloadable form

Bureau sregulatory programs 

freight forwarder application fo

application for certification of 

2 Foreign Commerce

a Foreign Tariffs

Section 8 ofthe 1984 Act 4

carriers to file tariffs setting 

practices for transporting carg

ofthe US Section 8 does not 

regulate rate levels except 

However the Bureau reviews 

which fails to comply with 

requirements These rejection

Commission sobligation to 

discriminatory practices

During fiscal year 1996 

complete tariffs from carriers 

foreign commerce Additional 

can be found in the ATFI sectio

220 foreign special permission 

carrier special permission app

provisions of the 1984 Act 

regulations

14 Service Contracts

Section 8c ofthe 1984 A

ocean common carriers and co

the foreign commerce of the US 
contracts with shippers and

statement of the essential te

available via electronic filing 

any service contract must be 

for a period of at least thirty 

Confidential service contra

under tariffterms Their flex

transportation services to a

operational needs During fis

essential terms publications 94

amendments The Commission 

year 1996 than it did in fisca

number of service contract am

year The service contract 

shippers 25 conferences and 

Ofthese contracts 130 contra

associations

In fiscal year 1996 the 

Docket No 9508 Servic

Miscellaneous Revisions to 

service contract format whic

Commission

service contract

costs

records

and facili

c Controlled Carriers

A controlled carrier is an o

assets are directly or indi

government under whose reg

are operated Section 9 of 

provides that no controlled car

tariffs filed with the Commissio

reasonable nor may any such 

unreasonable classifications 
addition such rates charges c

controlled carrier may not 

Commission become effective 

of filing with the Commissio

include rates of controlled carrie

by a treaty ofthe USto rece

The Bureau monitors the 

assure that the required notic

given The Bureau received o

a controlled carrier during fisc

d Common Carrier A

Every common carrier by 

USand licensed ocean freight 

ofthe 1984 Act 46USCap

sworn Certification of Comp

Rebating in the Foreign Co

certification is to be filed with t

before December 31 of each ev

signed by the Chief Executive O

freight forwarder Section 

582 1bprovide that failure 

result in a civil penalty of5000 

Effective October 1 1996 th

the Federal Civil Penalties Infla

No 101 410 104 Stat 890 

civil penalty provision the Cos

45days notice for the cancella

the suspension ofthe licenses o

fail to file a certification F

application for an ocean freight 

an antirebate certification in a
A program supported b

place to ensure that common 

certifications Existing cer

during fiscal year 1996 Ho

were filed by new carriers o

Commission Carriers and 

initial certification or a renew

form directly from the Coms

e NVOCC Financial 

Section 23 of the 1984 

NVOCC operating in the fore

insurance or other surety as 

Commission sregulations re

the amount of50000 Evid

pursuant to this requiremen

transportation related activ

Commission pursuant to se

program approximately 230

currently on file The Burea

surety bond matters were rec

3 Domestic Commerce

a Domestic Tariffs

During fiscal year 1996 

offshore trades filed 20 new ta

and processed two special per

domestic tariff filing rules 

common carriers operating i

were required to file tariffs 

Commission pursuant to se

app 817 and section 2 of th
regulatory responsibility for 

transferred to the STB effective 

Termination Act of 1995 Pub 

Under an MOU the Comm

access to the ATFI system for 

with the STB The Bureau ma

STB sreceipt and control ofal

as the domestic tariffs which 

after October 1 1996

b Marine Terminal A

The Commission is respon

the marine terminal industry 

services and labor provided 

connection with the receipt a

consignees and the intercha

carriers The Bureau reviewe

with numerous amendments 

during the fiscal year

4 Passenger Vessel Ce

The Commission adminis

89 777 46 USC 817d and 

Commission sregulations in 46 

of the Public Pub L No 

responsibility to indemnify p

injury or nonperformance o

berth or stateroom accommo

embark passengers at USp

Upon the submission 

responsibility in accordance 

Commission issues a Certif
Indemnification of Pass

Transportation Upon the 

accordance with Subpart B o

Certificate ofFinancial Respo

Death or Injury to Passenge

program now encompasses ab

have evidence of financial 

330 million for nonperforman

certificates issued pursuant 

Customs clearance ofthousand

The Bureau spassenger 

workload increases during f

attributable to the continued 

industry overall The induss

level of certification activity 

passenger vessel operator ba

During fiscal year 1996 the Co

passenger vessel certificates 

certificates and 68 performance 

to passenger vessel applicants

In addition the Bureau 

protecting a higher proportio

fares Docket No 9406 Fina

Nonperformance ofTransport

ofthis Further NPR the Burea

Docket No 9421 Inquiry 

Responsibility For Nonperfor

The Bureau was called upo

proceedings involving two cruis

monitored relevant activities 

guidance to the traveling publi

news releases concerning d

affected thousands of traveler
The Bureau also prepare

Congress concerning certain 

program regarding casualty and 

to warrant legislative action So

significantly reduced value of th

of protection for cruiseston

USfor cruises embarking at f

the penalties provided in Pub 

The Bureau was also invo

violation ofPub L No 89777 

of the Royal Venture Cruise L

No 9616 Royal Venture 

Kiriakidis Possible Violation

Requirements

5 Freight Forwarders

The Commission sregulato

industry are found in section 

forwarders are persons who in 

as export departments for hire 

the export commerce of th

transportation of cargo by c

paperwork legal requireme

incidentals related to the shipme

receive a fee from the exporte

well as compensation from the 

to carry the cargo

During fiscal year 199

applications were received for p

306 applications 73 applicatio

applications were withdrawn 

were issued while 76 licenses 
year 1929 licensed forw

Commission sjurisdiction

In fiscal year 1996 fre

Commission srevised Form 

Ocean Freight Forwarder 

requirement to submit finan

estimated paperwork burden 

6 Automated Databas

a ATFI

ATFI a computerbased 

reduce processing time and 

filing processing and retrieva

marine terminal tariffs s

amendments thereto The 

conferences with greater fle

offerings and in filing tariff

Commission The Commi

February 22 1993 through 

has achieved a paperless ta

year 1996 there were 4666 

shows the number of tariff o

year 1996

b Other Databases

The Bureau maintains se

than its ATFI system These 

2 Regulated Persons Index 

Freight Forwarder System 

certain key service contract 

kept confidential The Regu
number to each person the C

address telephone number a

Microfiche System provides a m

have been microfiched Th

contains certain information c

bond information These data

Commission sprograms C

databases is also available to t

7 Rulemaking and Doc

The Bureau recommends 

rulemakings and Commission 

year 1996 the Bureau particip

Inquiry into Alterna

Responsibility For Nonp

Docket No 9421 

Requirements for Nonp

Docket No 9406

In Docket No 9406 the 

at protecting a higher proporti

fares given this Further NP

discontinue Docket No 9421

Royal Venture Cruise 

Kiriakidis Possible Vi

Certification Requiremen

The Bureau was involve

violation ofPub L No 89777 

of the Royal Venture Cruise L
Service Contract Filing 

Revisions Docket No 9

The Commission publishe

permit an optional abbrev

intended to reduce duplicatio

well as facilitate automatio

records The rule also requir

names and business addres

affiliates business addresse

addresses will be provided to 

of such request

BillSherwood Corpora

Corporate World Reloc

No 9409 F D 

Violations ofSection 1b

Docket No 9603 an

Ltd dba Haewoo Shipp

ofSection 10bofth

No 9611

The Bureau conducted 

Enforcement in Docket No 9

use

of lading

in Docket

testimony

Nos 96

and

03

aff

an
I BUREAU O

On October 20 1995 the C

of Investigations and Hear

Enforcement The new Bu

between investigations and 

management ofthese two relat

ofEnforcement serve as trial a

and appropriate in formal c

section 22 of the 1916 Act 4

1984 Act 46USCapp 171

the FSPA 46 USCapp 

advisors to the Managing Dire

designated Investigative Off

proceedings The Bureau m

order to identify major regula

Director and the other burea

development of Commission 

under the direction ofthe Gene

may participate in matters of c

is a party

Through investigative p

conducts investigations into t

NVOCCs freight forwarders 

persons to ensure complian

administered by the Comm

1 service contract reviews to 

statutes and regulations 2 re

compliance with bonding requ

compliance checks of licensed 

whether their operations co

4 audits of passenger ves

protection of cruise passeng

to support Commission progr
alleged violations of the f

administered by the Com

misdescriptions or misdec

agreements abuses of a

forwarding untariffed carg

passenger vessel operations 

such as failure ofcarriers or in

obligations resulting in cargo 

The Commission closed 

Miami and New York on Ju

Los Angeles and Miami as w

an area representative bas

representatives also serve 

transportation centers within 

North Atlantic region is the 

Washington DC In add

functions area representatives 

jurisdictions provide liaiso

maritime industry and the 

intelligence ofregulatory sign

Liaison activities involve co

government agencies provid

Commission policy to the 

handling informal complaints

The Bureau prepares an

shipping statutes and Commi

and settle civil penalty dema

settlement is not reached B

formal Commission proceeding

assessment of civil penaltie

conjunction with other burea

During 1996 the Bureau 

ocean carriers cargo interests 
trades Other trades were 

investigations including the tran

Central American and Caribbean 

improper shipper practices su

and absorptions misdescription 

measurements as well as carri

unbonded NVOCCs

The Bureau completed 64 i

27 compliance checks and a

audits and audits of NVOCC

summarizes the Bureau sinves

III Surveillance and Enforce

The cooperation between 

and Customs with respect 

information continues to be b

has expanded Customs perso

enter US commerce with a 

appeared on the ocean commo

permits Commission person

determining which entities shou

1984 Act As Customs refines 

of cooperation to increase dram

of the US

In 1995 the Commission c

into possible abuses of the a

member lines This fact finding 

to reports of alleged unlawful a

including the Commission so

and petitions filed by othe

investigation included possib

TACA members to take ind

withdrawal restrictions contain

which also require membership 
discriminatory inland contain

and sanctioned by TACA In 

approved settlements with 

sharing agreements to r

investigation The settlement

agreement structure and p

levels and an agreement to 

service contracts in 1996 Th

impact of these settlement a

semiannual meetings with th

At the beginning of fisca

pending final resolution by the 

enforcement actions we

compromised and settled 

formal proceedings Eight

resolution at fiscal year send

At the start offiscal year 

proceedings During the fisca

formal proceedings Ten proce

were completed Accordingl

the end ofthe fiscal year

At the beginning of fisca

legal advice pending in the Bu

for legal advice were receiv

advice projects were complete

were pending in the Bureau o

As a result of enforcem

876 959 68in civil penaltie

reached with many different 

cruise operators shippers fo

trades Civil penalty collectio

III Surveillance andEnforc
In fiscal years 1997 and 19

fraudulent and anticompetitive p

trades The closing of the re

reduction in Bureau personne

September 1996 significan

However the Bureau will con

and advisory functions albeit o

will continue to plan enforceme

conduct investigations and aud

are developed the Bureau will 

of these cases The Bureau 

Managing Director and other 

practice to implement policy de

order to resolve regulatory 

intervene in formal complain

jurisdictional issues

J BUREAU OF 

Office 

The Bureau of Administr

support to the program oper

interprets governmental polic

in a manner consistent wit

involving property manageme

and personnel The Bureau in

with other elements of the Co

plans new or revised policies 

with respect to its program 

responsible for the direct adm

Office ofAdmin

Office of Budget 

Office of Person

Many of the functions an

the narratives for these Offic

The Director is the Comms

as the Commission srepres

SAC The FMC train

administered within the O

employee development assis

the agency provides technica

Board and coordinates the a

SES Candidate Developm

serves as a member ofthe SA

year the agency utilized a nu

available through the SAC 

Office of the Director a

administering the Commissios
includes an active oversight and 

effective implementation of Ex

1 Office ofAdministrat

a General Office Re

The Office of Administrat

variety of management servic

administrative support to the 

Commission

Contracting Officer

The Director 

The Office s support 

telecommunications procure

services property manageme

copying management mail an

designs facilities and equipm

The Office smajor functions 

equipment

mission and

and

to

services

formulate

requ

re

methods governing the use and 

compliance with the applicable 

b Achievements

During fiscal year 1996 th

Completed logistic

to the closing of th

Provided adminis

representatives fo

Seattle Los Ange
Continued to p

assistance in sup

Developed operat

purchase procure

year

Implemented a n

electronic comme

Arranged for th

FMC s34th Ann

Coordinated the 

measures at the 

with the Depa

Assessment ofFe

Arranged for the 

headquarters fac

Provided procure

acquisition of 

shipping data I

through GPO

c Future Plans

In fiscal year 1997 the Os

1 expand the automated pr

other Commission activities for 

to expand the Commissios

paperless office interactions 

miscellaneous contracting servi

4 review the Commission s
reduce costs 5 update 

procedures in accordance wit

to provide advisory and 

regarding innovative suppor

2 Office of Budget an

a General Office 

The Office ofBudget an

Commission sfinancial m

accounting activities fee an

ensures that Commission oblig

funds are proper develops an

to Congress and OMB dev

systems that provide account

Commission stravel and cas

Commission sImprest Fun

passports and assists in the de

b Achievements

During fiscal year 1996 

Collected and de

fine and penalty 

Prepared fiscal 

estimates coo

justifications an

Congressional b

to OMB and pa

budget hearing
Prepared a variet

Civil Monetary Pe

Management Ann

Flow Treasury 

Accommodations 

Financial Managem

Management Imp

Leave Year Repor

Personnel Costs O

OPM the Ann

and Health Progra

Annual Prompt P

Provided managem

workyears fundin

Prepared multip

Continuing Resol

Participated on 

reorganization us

c Future Plans

During fiscal years 1997 a

to develop and implement ele

processing of purchase ord

conjunction with the Office ofA

review procedures and contro

OMB and Congressional budge

and controls for cash managem

to economy and efficiency 

including implementation ofthe 

of 1996
4 Office of Personnel

a General Office R

The Office of Personn

personnel management progra

position classification and pay 

health employee assistance e

performance appraisal ince

transition retirement and pe

b Achievements

During fiscal year 1996 

Drafted new C

Force in the S

Transition Assis

Orders on the a

the DrugFree W

Prepared man

variety of perso

advise employee

Provided ongo

counseling to e

force RIF a

implemented re

and career tra

GSA in establis

Transition Cen
Prepared to imple

during the period 

updating the Cos

Worked closely w

make certain em

possible upon retu

and to ensure tha

processed correc

Issued RIF notic

Commission sp

offices in Miam

calculated severan

for affected em

separating emplo

Conducted a com

included filling 

including Directo

Financial Manage

staffing actions 

representatives P

effect merger of 

the Bureau of 

Enforcement

Conducted three 

Seasons four 

Submitted a requ

Authority to OP

Upon approval 

offering early re

FY 1997
Monitored an

Program contra

site wellness

Conducted the 

Program and 

including spon

Benefits Fair 

Service Days du

employees onsit

Advised superv

in areas of em

including grantin

and correcting 

problems

Managed a ver

Program

Coordinated 

Campaign effo

Worked with the 

Summer Youth 

c

Future Plans

During fiscal years 1997 

advise the Commission on 

maintenance of a sound an

Office will continue its review 

with the goal of reducing its 

streamlining guidelines
APP

ORGANIZ

APP

OEiN

OWq4a0

CH NEA 

W H

0 H 

4

oWW

UWW

H F 

W 

O 

WOW W 

tiF 

W 

W 

O 

o 

W W 

UZWHF

W 

W 

0
Formal Proceedings

AP

COMMISSI

Fis

Decisions 

Discontinuances Dismis

Initial Decisions Not Revi

Rulemakings Final Rules 

Withdrawn 

Total 

Special Dockets 

Inforneal Dockets 
APP

AGREEMENT F

Fisca

Agreements Filed in FY 1996

including modifications

Carrier 

Terminal 

Total 

Agreements Processing Categories 

Fortyive Day Review 

Shortened Review 

Exempt Effective Upon Filing 

Rejection of Filing 

Formal Extension ofReview Period 

Approved Under Shipping Act 1916 

Total 

Carrier Reports Submitted for Co

Minutes of Meetings 

Operating and Ad Hoc Reports 

Total 

Agreements on File as of Septemb

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Cooperative Working Agency Eq

Terminal 

Total 

Domestic Offshore Trade Activitie

Annual Reports Filed 

GRI Reviews 
APP

TARIFF AND SERV

AND SPECIAL PER

Fisc

Electronic Tariffs in Effect 

Electronic TariffFilings

Tariffs new 

Rules 

Commodity Descriptions 

Tariffs Line Items 

Inland Tables 

TariffRecords 

Organization Records 

Essential Term Documents

New Service Contracts 

Service Contract Amend

Special Permission Applications

Foreign

Domestic

Granted 

Denied 

Withdrawn 

Granted 

Denied 

Withdrawn 

Includes essential terns public

tariffs
APP

CIVIL PENAL

Fisca

ANR Inc 

Blue Eagle Consolidation

Celebrity Cruises Inc 

China International Fre

Columbus Line 

Corporate World Int l

Danzas Corporation 

Glory Freight Ltd 

Hellmann Int Forwarders 

IEL Cargo System Inc 

Immortal Service Inc 

LC Shipping Co Inc 

Longrow Shipping Limite

Martyne C Merritt 

Norwegian Cruise Line L

Oceanlink Forwarder C

Rohde Liesenfeld Gmb

Trans Power Int Forw

Unifret Int Texas 

Total Civil Penalties Co
AP

INVE

Fisc

InvestigationsSpecial In

AuditsCompliance Che

Compliance Chec

Cruise Audits 

Compliance Chec

Service Contract 

NVOCC Audits 

Cruise Audits 

InvestigationsSpecial In

AuditsCompliance Chec

Openings and completions re

offices and the placement ofo

New Orleans Louisiana Los An

in fiscal year 1996
STATEMENT O

OBLIGATIONS 

THE FISCA

SEPTE

APPROPRIATIONS

APP

Public Law 104 134 For necessary 

as authorized by section 201 dof the 

App USC 1111 including serv

passenger motor vehicles authoriz

allowances therefor as authorized by 

2000 shall be available for officia

Public Law 104 134 Omnibus Con

Appropriations Act of 1996 

Revised Appropriation

OBLIGATIONS AND UNO

Net obligations for salaries and exp

ended September 30 1996 

STATEMENT OF RECEIP

Fund of the Treasury for the Fiscal 

Publications and reproduction

Fees and Vessel Certifica

and Freight Forwarder A

ATFI user fees 

Fines and penalties 

Total general fund receipts 

US