FEDERAL MARIT

COMMISSION

27th

Annual Rep

for

Fiscal Year

1988

TABLE O

LETTER OF TRANSMITTAL 

IN MEMORIAM Edward V Hick

MEMBERS OF THE COMMISSION 

SENIOR COMMISSION OFFICIALS 

I THE COMMISSION

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW

A Enforcement 

B Surveillance 

C Restrictive Trade 

D Agreement Activity 

E

Service Contract a

F Section 18 Study 

G Tariff Automation 

H Litigation 

III SURVEILLANCE AND ENFORCE

A Surveillance 

B Enforcement 

IV DEVELOPMENTS IN MAJOR US 

A Transatlantic 

B Mediterranean 

C Africa 

D Transpacific 

E Latin America and T

F Middle East 

G Worldwide 

V TARIFF AUTOMATION 
VI SECTION 18 STUDY

VII THE FOREIGN SHIPPING 

VIII SIGNIFICANT OPERATING 

ORGANIZATIONAL UNIT

APPENDICES

TABL

A Section 18 The M

of the Impact of 

B Consultation with 

C FMC Progress Thro

D Surveys 

E Symposium on the 

F Section 18 Study 

A The New Statute 

B Implementation 

C Top Twenty US L

A Office of the S

B Office of Admi

C Office of the G

D Office of Equal 

E Office of the M

F Bureau of Trade 

G Bureau of Domes

H Bureau of Econo

I

Bureau of Hearin

J Bureau of Inves

R Bureau Of Admin

A Organization Chart 

B Commission Proceeding

C Agreement Filings and 

D Tariff Filings and S

E Civil Penalties Comp

Fiscal Year 1988 

F Field Investigations 

G Statement of Approp

and Receipts for the 

September 30 1988 

HI Forms Sent to Obtain 

JL Rate Summaries on Be

MN Samples of Other Data 

O MarketShare Table 

PQ Survey Results Filin

RS Survey Results Con

TU Survey Results Inde

Service Contracts 

VW Survey Results Con
Office of tat 6aacmren

ifebera

lns

To the United States Sena

Pursuant to section 

No 7 of 1961 and section 

1936 as amended I am ple

annual report of the activ

Commission for fiscal yea
IN 

EDWARD 

Chairman of the Fe

November 4 19
Elaine L Chao

Chairman

Appointed 1988

Term Expires 1991

R California

Edward J Philbin

Commissioner

Appointed 1984

Term Expires 1989

R California

Francis J 

Commis

Appointe

Term Exp

D O

SENIOR COM

Secretary 

Chief Administrative Law Ju

General Counsel 

Director Office of

Equal Employment Opport

Managing Director 

Director Bureau of Trade M

Director Bureau of Domest

Director Bureau of Econom

Director Bureau of Hearing 

Director Bureau of Investi

Director Bureau of Admini

THE 

A 

The Federal Maritime 

independent regulatory agen

effective August 12 1961 

Maritime Board was respons

ocean commerce and the p

Marine Under the reorgani

the United States were se

regulatory and promotional 

with promotion of an adeq

Marine were assigned to t

located within the Departme

created Federal Maritime 

administration of the regu

laws The Commission is no

of oceanborne transportatio

the domestic offshore trad

passage of the Shipping Ac

change in the regulatory 

operating in the foreign c

B 

The principal statu

administered by the Fede

Shipping Act of 1984 

Intercoastal Shipping Ac

Practices Act of 1988 and 

Act 1920
The Commission sregula

Reviewing and monitorin

and other persons 

commerce These a

pooling joint service 

Receipt and review o

regulation of rate le

in the US foreign co

Protecting shippers and 

commerce of the United 

marketoriented rules 

governments andor 

carriers that have an 

of the United States

Protecting the rights 

to transport cargoes 

and foreigntoforeign 

Regulating rates cha

tariffs of controlled 

matters are just and r

Regulating rates char

practices of ocean c

offshore trades of the 

Licensing of internatio

Issuing passenger v

financial responsib

charterers to pay jud

death or to repay far

voyage or cruise

Investigating discr

classifications and 

carriers terminal op

operating in the fo

commerce of the United 

The 1984 Act is applic

carriers and other persons e

It exempts agreements that 

Act from the US antitru

Sherman and Clayton Acts 

evaluates agreements to ens

grant of antitrust immunit

do not otherwise violate 

unreasonable increase in tra

reduction in service
In addition to monitori

the Commission is also 

individual carriers as well 

to act in concert fairly t

of the shipping public T

from unduly discriminating 

of the shipping public Th

make their rates charges a

in tariffs that must be 

Carriers may only assess t

lawfully on file with the C

not however have the aut

general rate increases or i

in the US foreign commerc

foreign governmentowned ca

The Commission is autho

Practices Act of 1988 und

Marine Act 1920 and under 

Act of 1984 to take actio

commerce of the United State

barriers to ocean shippin

countervailing action to 

conditions in US foreign c

to address actions by carrie

adversely affect the operati

foreign oceanborne trades a

flag vessels to ocean trade 

The 1916 and 1933 Ac

common carriers and other p

offshore trades of the Un

provide for tariff filing 

discriminatory practices in 

Act In addition the 1

comprehensive scheme of re

minimum and maximum rates 

carriers in the domestic 

reasonable
The Commission c

responsibilities by co

investigations It also h

and renders decisions an

implementing regulations 

disputes involving the r

shipping public and other 

groups

C O

The Federal Maritime 

Commissioners appointed fo

with the advice and conse

three members of the Co

political party The P

Commissioners to serve as 

chief executive and admin

The Commission s or

Office of the Managing D

Office of the General Cou

Judges Office of Equal 

Economic Analysis Bureau 

Domestic Regulation Bure

Administration and Bureau 

Director assists the Cha

administrative direction 

Bureaus These Offices an

Commission sregulatory p

support

In fiscal year 1988 

total of 216 full time eq

appropriation of 1

5800

Commission spersonnel are 

field offices in New Yor

Orleans Miami Houston a
II THE Y

The FMC experienced an

year in 1988 Our enforcem

and achieved excellent r

malpractices and lending s

trades Similarly we co

combating unfavorable fore

exist in certain trades O

should be significantly stre

Foreign Shipping Practices A

with major impact in cer

analyzed and several import

service contracts and tar

completed The Commission a

its long term projects dealin

filing and the data colle

required by section 18 of th

The Annual Report is 

office byoffice synopsis 

activities and accomplishme

deal with areas of particula

major

the report

accomplishments

is a brief

during

summar

A EN

The Commission has 

enforcement program since p

program was further restru

additional emphasis placed 

malpractices on the trade ro

most prevalent Our enforce

conducted as a collaborat

continuity of effort and to 

information And once 

completed in a particular tra

appropriate level of monito

activity does not recur
As a result of its en

collected 2455 60 in fin

1988 This included a 

shippers and forwarders 

trans Pacific trade which 

shippers and forwarders ev

single enforcement action 

resources in this trade be

and are actively pursuing i

our ability to identify a

violative of the shipping s

The Trans Atlantic En

in 1987 continued in 19

policing established throug

the participating carrier

resulted in the collection 

addition of three particip

Indications are that this 

impact on the North Atlant

Additional enforcemen

trades where the Commiss

based on trade data inves

malpractices Our enforce

conducted as a means of ac

stability

B 

The Commission ssurv

effective adjunct to its 

monitoring of industry 

activities enables the Co

practices contrary to the 

studies are prepared tha

several surveillance facto

moving commodities rate 

monitoring reports provide 

trends in the US ocean tr
Among the projects com

periodic monitoring reports 

subtrades a special monito

carriers operating in US 

Canadian cross border traf

practices regarding the mov

East and the European Cs

fixing in the North Atlanti

nearing completion at yeas 

providing an uptodate a

evolving carrier and agreeme

trade conditions

C RESTRICTIV

Fiscal year 1988 was 

Commission in addressing co

in the US foreign trades 

inquiry on the highcube 

USJapan trade noting the 

in achieving greater flexi

containers and stating tha

was warranted

A proposed rule was 

unfavorable to shipping i

respect to ownership and ope

facilities and the operat

Taiwan ports by USflag c

representations by all affe

had been successfully resolv

the proceeding

A final rule was 

unfavorable to shipping in 

subsequent remedial action 

Commission invited the p

comments The rule was s

fiscal year end

The Commission continue

laws regulations and polici
the People sRepublic of C

unfavorable to shipping ex

those countries Also w

was filed by Pacific Ame

Korea sreservation of virt

exports for Korean flag 

subsequently withdrawn afte

involved issues

The Commission sabi

foreign government trade 

the Foreign Shipping Practi

the Omnibus Trade and Co

Shipping Practices Act di

adverse conditions affect

foreign ocean trades that d

countries in the US The 

remedies to address these 

enactment a proposed rule 

The FMC also proposes to 

section 19b of the 

section 1365 of the 

sanctions authorized under 

D AGRE

Carriers have conti

various types of joint arra

conditions they encounter 

Commission is responsible 

ensure that they do not c

1984 Act

A highly publicized 

transAtlantic trade betwe

and

impetus

Nedlloyd

was

Lines

Sea Land s

was file

p

largest container vessels 

by now bankrupt US Lines 

Econships at less than 

minimize the increased tonn
thirteen carriers establish

system under the USNort

this agreement emanated 

settlement with these carrier

In the Pacific trade 

Agreement was formed am

conference and independent 

ways of improving conditions 

The Mediterranean trade 

by an expansion of vessel ca

trade pursued pooling and s

with this increasing cargo c

The Latin American tra

pools and the filing of vario

agreements A new conferen

between a conference and a m

the Middle East where there 

reversal of an overall 

conferences in various trades 

procedures and programs rega

use of service contracts 

circumstances in their partic

The Commission closely 

both at the time of filing 

that they comport with a

requirements of the 1984 Act

E SERVICE CONTRACT 

The Commission took 

clarify its regulations in 

and the filing of tariffs

As to service contra

final rule that requires 

designated article in the

applicable rules affecting 

service contract authority 

agreements whenever these ru
proposed rulemaking was 

correction of service con

to correct administrative 

is necessary since modifi

not permitted A proposed 

prohibit most favored shi

charged in a service contr

or published by other carr

Regarding tariff filin

rule with respect to equip

rule requires carriers to p

and conditions governing 

equipment by shippers or 

behalf The effective da

stayed indefinitely to p

issues regarding comp

requirements Finally a 

with the effective date of 

carriers to publish in the

rates applicable to a given 

on the date the cargo is 

agent This rule is desig

to the rate negotiation pr

F SE

The Commission contin

to comply with the mandated 

the 1984 Act In this r

impact of the Act were se

non marine terminal opera

major portion of 1988 was 

to address the section 18 

decreases in the level of 

In February 1988 the 

Southern California sponso

Act Over 350 individ

participants expressed th

respective segments of the 
on tariffs and independent 

the need for antitrust immun

An Advisory Committee 

continuing recommendations on 

Study The Committee com

segments of the industry m

the Commission s data gath

proposed 1988 surveys and 

views of foreignbased shippe

Finally the Commiss

representatives of the 

Transportation and the Feder

data collection as required 

its plan for preparation of t

The Commission made ext

to automate the filing of 

received and processed man

proceeding on the functiona

numerous comments and resulte

presolicitation conference w

Request for Proposals RFP

potential

to the Office of Management 

equipment and a Local Area N

site host processor were

delegation of procurement

General Services Administrati

The system will enable 

their tariff

system almost

Commission

inspection

contracts

offerors

material

any time

headquarters

of tariffs

while remote

G TARIFF 

A Bene

by re

of da

wi

and 

acces

will also be considered Fu

will be in phases to allow c

operations with an eightm
testing and improving fu

final RFP is scheduled to 

H 

The Commission was 

matters this past year 

District of Columbia Circ

following three cases t

where the Commission ha

unjustly discriminatory 

shipping statutes notwi

federal labor laws the P

District case where the 

harbor district soffering 

services and controlling 

order to enforce a fee ch

port district a marine 

FMC s jurisdiction the c

had correctly decided 

issues in the case a

Commission in holding t

prove that the Canaveral 

it a franchise for com

unlawful prejudice and 

standard of law under w

would be examined For 

see pp 7071 below

Additionally the C

from the US District C

Florida in an injunctiv

vesseloperating common c

Shipping Act violations 

orders issued by the Com

decree were negotiated in 

Justice sOffice of Fed

essentially prevailed in 

This case demonstrates t

full compliance with its 

action will be initiated 
I

SURVEILLANCE A

A SURV

An integral part of the 

the Shipping Act 1916 and th

systematic surveillance of 

conditions to ensure continui

standards and the requiremen

The Bureau of Trade Monitor

surveillance programs designed 

necessary degree of oversight 

The 1984 Act provides fo

of filed agreements following 

a given agreement is rejected 

failure to conform with the m

provisions in sections 5b a

standards of section 6g of 

becomes effective the Com

maintaining surveillance ov

activities in order to ensure 

of the 1984 Act To fulfill 

the Commission has continued t

improving the breadth and ef

programs

During fiscal year 198

significantly refined program

selected critical trades The

of surveillance factors inc

data cargo tonnages of maj

identification relevant tar

use of service contracts agr

investigation for existence of 

1
In fiscal year 19

produced two periodic M

timely analysis of eme

conference market shares 

subtrades The Bureau 

Mediterranean subtrades 

initiative in that area 

carriers the Bureau co

monitoring reports on the 

in the US trades The 

flow of cross border 

transshipped at each ots 

studies on 1 recent de

intermodal integration 2 

Rome provisions on o

evaluation of the estimat

Commission stariffs an

provisions of major confe

The Bureau also perf

Community sallegation of 

trades 2 conference p

fresh fruit to the Far Ea

Pacific conference on it

actions on behalf of 

experienced by certain sh

service contracts with co

The Bureau of Trade 

completion of several ma

year 1988 These projects 

reports on the USChina 

detailed analysis and rec

relative to a major tran

kinds rates and the im

segments of the industry 

the Commission sNorth A

analysis of the sign

agreements involving co

agreements with the Comm
B ENF

The Commission recognize

of 1984 greater regulatory 

enforcement activity 

determined to concentrate it

coordination of long and sho

across bureau lines All b

substantive responsibility fo

Acts participate in enforceme

Enforcement initiatives 

American Trades are examples 

from this coordinated effor

settlements of several major 

settlement of alleged viola

shippers of refrigerated pro

anticipated that these enforce

have an important impact du

beyond

Another such long term 

Trade enforcement initiative 

in 1988 Enhanced neutral b

through the program was 

carriers Additional penal

year 1988 and three carri

participants in the tradew

Commission is advised that 

substantial stabilizing impac

To meet the needs of 

enforcement role the Commi

its professional investigat

Commission also continues 

professional employees at th

Program at the Federal Law 

Glynco Georgia The Progra

fraud related offenses and o

exchange of ideas regarding 

techniques utilized by other 

1
Also a joint supp

Bureau of Customs has re

of effort on matters of m

The greater emphasis 

has resulted in a cont

investigations of major v

of civil penalties See 
DEVELOPMENTS IN MAJO

A TRA

Overcapacity continues 

trades The financial collap

conference operator United St

1986 only provided tempo

overcrowding problem By m

this market had launched s

capacity removed when US 

noteworthy entrant Maersk L

North Europe Conference ANE

between Europe and North Am

Maersk operates as a Con

operates as an independent ca

Of great consequence fo

stability in the trades was 

publicized transatlantic spa

SeaLand Trans Freight Li

203 011171 in late March 19

sharing arrangement was Sea 

twelve largest container ve

owned by bankrupt

in early February

purchased them at

world Although the sh

400 twentyfoot equival

and operational reasons

capacity to 3400 TEUs

US Lines 

1988 from 

auctions 

ips 

ent 

the 

Sin

their existing vessels out of 

trades the decision to oper

structural capacity has inc

these trades by only app

limiting capacity this s

rather than growth
Over the past year 

weakening of the US d

currencies had finally b

large US liner trade de

However despite this co

more than triple liner 

providing roundtrip serv

proposition of shipping f

thanfull or empty contain

The combination of 

trade conditions has had 

and the North EuropeUS 

Both conferences witnesse

and NEAC s membership was 

a conference operator 

withdrew its membership 

namely Evergreen Line Po

Shipping Corporation refu

to reject invitations to 

members Instead thes

stabilization arrangemen

agreements which provid

agreement with the con

contracts

Eurocorde partnersh

Dart Container Line Topg

Steamship Co Inc Altho

rate setting has become 

relating to the Eurocord

impact on trade stability 

are in fact losing more 

Eurocorde partners rather 

in the trades Thus the 

benefiting the non confere

conference

Another notable de

trades were the events flo

thirteen carriers pursu
Commission collectively pa

dollars and agreed to esta

system under the USNorth 

203 011160 The carrie

Commission senforcement ini

curtail suspected rate malp

the US Atlantic Gulf and 

The six inbound and outboun

scopes encompass these geog

self policing system

The most recent in a s

the once predictablycalm s

West Coast and North Europe

by Pacific Europe Express

Compagnie Generale Maritime

to each deploy two addition

five withdrawn Johnson ScanS

PEX and Hapag Lloyd to con

water service despite the 

Johnson ScanStar from its 

addition Sea Land resigned 

September 1988 With John

resignations from the Pac

PCEC No

includes only

changes like

202 005200

Hapag Lloyd

trade might be traced to th

large vessels and consider

trades has apparently had a 

as well as the East Coast 

for Sea Land s resignation 

numerous oth

of Maersk Line Maersk Lin

s 

independent operator it is n

in setting rates and there

against Maersk Line for carg

In an effort to deal 

the transatlantic trade 

utilizing service rational
ability to share space 

increase service freque

investment or adding 

rationalization arrangem

However with the excep

through its Econship agree

Nedlloyd discussed abov

USflag carriers do not 

arrangement The followin

service rationalization ag

The American Transpo

Shipping NV Space Ch

permits the two parties 

vessels to interchange 

sailings in the trade betw

The American Transpo

Co KG Senator Line 

232 011175 covering the 

ports and ports in Nort

charter space on one as

sailings and to interchan

The Senator Line and 

Space Chartering and Sa

authorizes the parties t

vessels to rationalize 

agree upon rates and ch

Atlantic Coast ports and p

B 

The United State

continues to be charac

capacity and a substantia

In spite of the exis

reorganization of space sh

EuropeUSA Freight C

actually increased availab
The previous space s

carriers involving Evergreen 

Costa Line has been replaced 

first that between P OCL 

Line SeaLand and Nedlloy

Freight LinesNedll oydSea

Agreement No 203 011171 a

process of joining at the 

second that between Evergre

known as the Mid Atlantic 

noteworthy aspect of the fir

former United States Lines 

As mentioned in the 

Transatlantic trades altho

limited to 3400 TEUs rathe

is capable of handling the

provided at least a modera

space offered by the three c

to rail cargo from Mediterran

transshipment via additional 

is a source of discontent 

ports which were already d

being diverted to North Europ

costs in Italian ports and 

in Genoa An unusual asp

exclusivity no member m

chartering agreement with any 

As to the success of this n

by each of the agreems 

operational efficiencies are 

increased earnings are expec

Available cargo capac

result of the Mid Atlant

agreement since Italian Lin

current vessels with extrala

its capacity in calendar 

capacity in this trade will 

than in the recent past 
however a similar increas

the possibility exists tha

be shipped out of North E

ports Meanwhile comme

shippers have expressed so

chartering agreements sinc

number of directcall por

North American ends such a

Another major develo

SEUSA Pool Agreement No 

in principle to a 5 year 

revenue allocations were 

among the members Acc

however the parties are 

agreed upon pool shares

In another noteworthy 

and GulfWestern Mediterra

No 202 011102 the 

welcomed five new members 

Bros Zim Line and most 

Italian Line and Evergreen 

increased the conference s

40 percent just after its 

neighborhood of 80 to 90 p

that acquired by SEUSA in 

In the Mediterranean

most noteworthy event was 

charter agreement between 

The two carriers handle o

in this subtrade Since 

least one new extrala

Mediterranean Pacific Coas

cargo volume grows the o

expected to continue 

developments discussed ab

activity included
The IberiaUnited State

203 011190 between SEUSA A

Container Line authorizes the 

service contract terms and co

and inland points in Spain 

Gulf and Atlantic ports and in

The SpainItalyPuerto R

212011213 authorizes the 

Spanish Line Nordana and SLa

The Mediterranean Inte

206 011200 between SEUSA an

to agree upon rates service 

of service between North Ame

and inland points

The Eastern Mediterranea

No 203 011173 between Nord

and Gulf PortsEastern Med

Freight Conference authorize

rates service contract term

between US and Mediterran

France Spain and Italy

C A

Economic reform polic

significant improvements in tr

African trade During fiscal 

reestablished guarantees of 

to Uganda and instituted 

selling goods to Uganda on c

administered through the Exp

States over a period of up 

supplied 8 million worth of g

In Harare Zimbabwe sta

Office Statistics revealed tha

80 million in US goods whi

66 percent over the previou

2
indicated that the United 

Zimbabwe ssecond largest 

In other actions 

Conference agreed to 

agreements in October 19

for credit privileges afte

a new agreement with the 

The Bank Line Lim

Corporation Limited esta

name Safbank No 20701

provide an independent 

Atlantic and Gulf Coasts 

privatelyheld lines had 

space charter arrangemen

on an individual basis

The Eastern Mediter

203 011145 authorizes t

Atlantic and Gulf Ports

Africa Freight Conference 

agree upon rates and se

US AtlanticGulf and G

such ports to certain 

African ports and certain 

D 

In general US ex

East remained strong for 

Forecasted exports 

Kong for 1988 based upon 

up 29 percent 14 perc

respectively over 1987 

US exports have increa

Korean won and the New 

percent 14 percent and 

the US dollar in th

September 1988 Other 
similar increases against th

the cost of

export boom

US goods in fo

appears to be 

standpoint the significan

manufactured goods which are 

A trend toward reducing 

US exports to the Far Eas

duties are being lowered 

creating a business climate m

Other reasons for the 

domestic economic growth rate

labor costs increased US 

given to the quality of 

rigorous foreign competition

The world economic gr

percent for 1988 Japan 

Taiwan all have forecasted 

exceed this level Strong 

US

upon

been

exports if the growth

the domestic economy

some indication that

particular has been able t

growth in the face of a 

believed to stifle export

redirected toward developing 

and moving production facili

Hong Kong as the yen app

others helped push up dom

negative impact the strong 

On the import side imports f

continue to rise with imp

expected to go up 16 percen

over 1987 levels This im

economists who had predicted 

currencies against the US d

and trade deficits with these 
The recently enacted 

Act of 1988 the Act r

imports and exports The 

barriers to trade but 

foreign markets

patterns

This s

exports strong through 198

While transpacific tr

not to say that overcapa

trade Both weak dema

introduction of more vess

In the present case a 

introducing larger vessels 

a continued 13percent ea

for the overcapacity 

capacity of 159 400 TEs 

period While eastboun

doubtful that a 13percen

the eastbound direction

The conferences in 

profoundly affected by th

above resulting in an 

Inbound vessel

outbound space went unuse

year this pattern shift

expensive prompting US 

supply including more d

the declining dollar imp

US manufacturers promp

trade

In the Far East inb

were sailing on average 

about 90 percent in rec

cutting became prevalent i

The Asia North A

ANERA saw increased i

members as a reaction to 

this competitive climate 
July 1988 to prohibit indiv

member lines thereby auth

conference only as a body

The Transpacific Westbou

been demonstrably affected b

has fueled sharp growth in ex

of the abundance of cargo ra

most commodities TWRA is 

westbound trade will remain 

general rate increases to tak

September

In one of the most si

the Transpacific Discussion A

No 203 011211 was formed 

looselyknit group of 13 T

conference and non conferenc

discuss ways and means of 

inbound trade The formation 

with the existing overtonnag

rates The agreement parties 

capacity in this highly comp

In addition to the agree

a number of significant new a

filed during the last fiscal y

The Hyundai Australia D

207 011195 authorizes the pa

operate a joint service in th

Coast and Australia New Zea

islands

The Japan LineYam

Service Consortium No 207 0

to discuss plan establish 

Nippon Liner System Ltd 

separate liner services in t

coasts Far East

The Conbulk Carriers 

203 011193 permits the mem

2
Lines and Gearbulk Conta

practices and service co

points in Japan and Kore

and inland points via 

agreement reached is on a 

The Australia New 

USA ReciprocalSpace 

permits the signatories t

interchange containers in 

Coast and Australia

The HyundaiEAC L

Agreement No 232 01118

these activities in the t

Coast and the Far East an

The Mitsui and NYK 

No 232011188 permits 

activities in the trade 

the Far East

The K Line H

Agreement No 232011

between the parties in 

Northwest and the Far Ea

The WestwoodGearb

Sailing Agreement N

signatories to conduct th

the US West Coast and t

E LATIN AM

Major developments 

the reentry of Columbus 

trades continued e

Corporation sUSflag 
part of a longstanding disput

In June 1988 Columbu

service between the East Coas

Uruguay and Argentina after s

trade The line has joine

Conference and operates four 

American service with owned an

TEU capacity vessels are equi

to work in ports without shore

ports of call are New York P

and Savannah South American 

and Santos Brazil Montevid

Argentina Since joining the 

steadily increased its market 

the rate of about four percent 

Columbus Line has a lon

service in its background Th

Hamburg Sud established a E

1871 and maintained a regu

United States and Argentina

century Hamburg Sud became 

when the company introduced 

America in 1980 which until 

trades to be served exclusivel

Crowley Maritime Co

established in 1892 in San F

many to be one of the wors 

organizations operating 40 b

and over 4000 employees w

significant expansions in the 

American services operated 

companies American Transport 

Caribbean Transport CCT

1 The Commission sinqu

cargo in the trade between 

States was continuing at th

1988 Docket 87 6 Actions 

Unfavorable To Shipping In the 

2
AmTrans has added 

direct fortnightly port 

US and Venezuela Braz

In addition AmTrans has 

time for US export carg

making this major port 

weekly southbound voyage

Santos every week on north

a third 1300TEUcapac

South American service 

three 2000TEU containe

Port Everglades call 

Philadelphia Norfolk and 

CCT Crowley s

C

strengthened its service

Panama and Central Ameri

roro ships in the service 

CCT has also increased 

between the US Gulf P

ports by deploying two US

regular 9 day intervals fr

compromise appears

Governments of Peru

their longstanding

agreed

United

period

In the USWest C

to h

and C

mari

important non conference 

America trade have joined 

direct response to the 

Empremar a governmentow

Naviera Santa a privately

to pool five vesse

States This dev

of turmoil both 

South America liner trade 

the US trades in 1986 

saying then that Peru

prevented the service f

Empremar reinstituted th
relying heavily on twoyea

copper exports outbound 

machinery on the return leg 

Naviera Santa are independent

by conference operators

Empremar s agreement w

allow the Chilean carrier to 

and likewise give the Peruvi

In 1986 Peru

the US and

Peru Since

carriers from

are allowed to crosstrade to 

In other developments 

announced sharp reductions i

Marcomex a new carrier 

trade Evergreen cut back i

to Kingston Jamaica and San 

a result of ongoing drug smu

which it and other carriers h

Evergreen began calling 

has been estimated that Evs

some sixty percent of all 

port The improving trade 

Colombia

ship line

Marcomex

excluded Chilea

Chile took sim

then a compro

both countries 

on the other hand 

in the trade Mar

began offering 

between Port Everglades Flo

San Andres Barranquilla and 

The following summarize

amendments in the Latin Am

1988

Agreement No 212 0

Americana de Vapores and Na

the parties to establish a 

between ports of the West Co

US Gulf and Atlantic Coast 
Agreement No 212 

Santa SA and Empresa M

parties to pool their net 

Atlantic and Gulf ports an

and Bolivian points

Agreement No 212 

Agreement authorizes the 

trade between US Atlant

of South America includi

both

The Transnave Navcon

207 011174 establishes a 

in the trade between US 

points via such ports and 

Rica Panama and Ecuador 

Express

The Naviera Pacific

Agreement No 21701115

space aboard one another s

Pacific Coast ports and po

The West Coast Sout

United States Discussion A

Empresa Lineas Maritimas 

Interamericana Navicana SA 

rates rules and service 

agreement encompasses the 

Pacific Coast and Chile P

Mexico Adherence to any 

The PANAM Discussion 

Lykes Lines Ecuadorian L

members of the United State

Freight Association to exc

on rates and rules A com

adherence to any agreement 
F M

The Middle East has b

development of liner servic

of war poorlydeveloped 

attractive cargo Howe

changing There have been 

conventional cargo trades 

process of being reversed 

have enacted plans that 

attract more cargo pus

industrialization and rela

barriers

Further with the end 

Iran and Iraq the Persia

previously diverted to the R

The fiscal year als

agreements for the trade 

Agreement and Jugolinija file

USMiddle East Discussio

forum for the discussion 

agreement on a number of 

provisions and service c

agreement was established i

trade The parties to Agre

Red Sea South Asia Rate A

Lines Ltd and Waterman 

charter agreement between Se

Arab Shipping Company was 

guarantees SeaLand 125 TEU 

each direction aboard United 

for Sea Land sfreight movin

Controlled

the Middle East

Carrier

India

Program

and P

CSC a national flag 

classified as a controlled c

serve the US trades dir

connecting agreements with A 

United Arab Shipping Co 
primarily to India Bangla

East

G 

The fluctuation of 

significant possibly 

worldwide liner shipping 

dollar visavis other cu

Japanese yen and other 

traditional patterns of 

As imported goods have bec

have sought alternative s

domestically produced pro

cheaper dollar has revital

foreign buyers thus sh

market

While overtonnaging 

carriers continue to enter 

as a means of dealing w

charter sailing joint 

agreements filed under the 

Containership operat

original or first genera

age are now involved in 

replacement tonnage is l

advanced resulting in f

However the economies res

largely offset by the cos

which it is generally agre

No significant examp

scope were filed during the 
TARIFF 

The FMC has the res

statutes to

1 Accept the f

and service contracts 

governing transportatio

domestic offshore an

terminal operators also 

charges

2 Ensure that t

comply with basic sta

are accepted for filing

3 Maintain the 

service contracts and t

tariff data to courts a

4 Make tariffs 

service contracts avail

Tariff filings continu

processed by the Commissio

operation is proposed to 

utilizing modern data proce

of the Automated Tariff Filin

is intended to be the 

Commission Such a system w

review process retrieve 

information in an automat

responsive to the needs of 

users and other Governme

automate the existing manua

and the public receive and u

In FY 1987 a study 

contractor found that tariff 

FMC s Industry Advisory Com

3
Also in FY 1987 the 

sector contractor through 

assistance for the developm

the preparation of a Requ

pilot or prototype operation 

The first benefit cost anal

submitted to the Office of 

In FY 1988 the Com

Inquiry proceeding on the f

which generated comments fr

industries and which resu

April 1988 A draft RFP w

offerors and a presolicitati

over 200 questions were an

Commission purchased und

procurement authority from 

a Local Area Network for a

processor

The electronic ATFI 

central

seeking a

computer

prime contractor

with appr

tariff review processing 

tariff data to be electron

conjunction with the 

Coordinating Committee an

items as opposed to ta

system Tariff line ite

commodity rate items in c

amended directly without 

page

As recommended by 

standardized commodity or 

mandated at the beginning 

capability to provide for t

time The system will als

service contracts
Full implementation of 

allow commercial firms tim

Exemptions at least temp

types of tariff filers who 

the electronic system

The system will be a

existing computer equipment 

full connectibility Fil

primarily by using asynchron

dialing in with a modem to 

software will provide on line 

tariff information is cor

provisions are complied w

officially on file Such e

able to electronically ide

such as a rate increase on 

problems for which rejection 

or conflicting tariff prov

handled by FMC staff and 

Commission level The s

however will facilitate thi

The ATFI system wi

mechanisms to protect the in

Tariff filers will be 

tariff materials by remote 

system by carriers or confe

The carrier or conference w

tariff so that the appr

Commercial tariff services 

carriers and conferences fo

into the data base after 

from their clients or transf

electronic form The FMC w

services to assist small firm

file electronically

Once the tariff data 

will download the entire 
formatted onto computer ta

sold to any person at the 

cost of dissemination 

statutory duty of prov

reasonable charge In or

number of rapidly changin

industry interested perso

base tapes frequently 

service to provide this ca

The FMC will not perf

the tariff data for sa

competition with commercia

that those services will s

facilitate their valuead

however use the system t

for investigative and oth

continue to utilize appro

services of commercial tar

In order to carry ou

making tariffs and essen

available for public insp

have a public reference 

Washington DC Here 

terminal on which informati

brought up on the screen a

rates and rules Paper co

available upon written req

to courts and other tribu

disputes over historical ta

Another retrieval fea

access to the FMC data ba

day for

person

the West

system

device

public

retrieval of tar

For example the 

Coast to retrieve 

using a terminal o

ie a modem to 

telephone lines I

general public would only 
rudimentary retrievals and 

data Specifically members 

to retrieve one tariff at a 

retrieve a tariff in this m

to specify the specific tar

is desired the public user 

keys eg by route or com

The FMC will operate the 

a period of at least six mo

functionality and performan

for this prototype operatio

publiccomment rulemakings on 

tariff data and for establish

A second draft RFP i

potential offerors and in Ja

issued with a due date fo

contract can be awarded in J

is scheduled to begin full op

V

SECTION 

A SECTION 18 THE MANDA

THE IMPACT OF THE 

Fiscal year 1988 was th

collection period outlined in 

of 1984 Section 18 of the S

referred to as the Act di

five years following its e

collect and analyze informatio

Act upon the international 

section 18a Congress sp

collected should include dat

increases or decreases in the 

in the frequency or type 

available to specific ports 

number and strength of ind

trades and 4 the length o

major types of regulatory pro

Section 18b of the A

consult with the Department o

of Transportation DOT and 

FTC annually concerning da

agencies shall at all tim

collected under this sectio

comments concerning data co

staff has met with the staffs 

times
The Act further spe

following three topics sho

t

z

The advisability of 

on volume and mass o

The need for antitru

terminals and

The continuing need 

tariffs be filed and 

Within six months a

period of data collection 

information with an anal

Congress to the Advisory 

Shipping Advisory Commis

The Advisory Commission w

that time The three a

submit their own analyses 

after the FMC submission 

Commission

The Advisory Commis

comprehensive study o

concerning conferences in 

specifically address wheth

by prohibiting conferenc

conferences The Advisory 

after its establishment 

Congress a final report c

and conclusions includ

administrative judicial 

deems advisable

B CONSULTATIO

Sources of informat

include tariffs and serv

material such as exc

International Monetary F

information requested fro

The choice of data to be 
depends partly on what ca

sources and partly on the in

It is probable that th

be adopted by the FMC will 

approach of the other ag

intention of Congress to allo

forming an Advisory Comm

things is to evaluate the 

of data was no doubt 

duplication of activity by t

Accordingly the FMC w

the data and will be 

distributing it in an acc

form There are howeve

distribution of information 

of Census data have been ob

release of the information 

traced to an individual car

provided by the Bureau of Th

which are formed from three 

share by one firm of more t

to be regarded as traceable 

evaluation of such quantitie

releasing the quantities the

the individuals to whom the 

it will therefore be nec

rather than the data

The second limitation 

maintain the confidentiality 

requests for information fro

all cases except those wh

the names of the responde

released information and da

individual carriers shipp

enterprises within the inte

be presented in a form which 

source
C FMC PROGRESS T

1 Data Collection

a A major portion 

to obtaining information 

increases or decreases i

thrust of this effort was 

port tariff rates for majo

tariff

trades

records

These

systems

data were

P

these data might have been 

in the level of freight ra

however has changed all th

Three of the most s

brought about were in the a

1984 Act requires that eac

to take independent action 

notice It also authorizes 

establish intermodal rate

departure from the past p

to enter into service c

revisions of the tariff re

of freight rate levels much 

The staff concluded 

data on these other aspec

necessary to work with car

sent to relevant conferenc

obtain data on IAs servic

Samples of these forms are 

Once all these data a

to develop an idea of how 

behaved over time and vari

inbound and outbound Th

charts which have been c

collected thus far Appe

ton on a weighted basis 

in the outbound USJapan 

to 1986 The rates used 
Pacific Westbound Confere

Transpacific Westbound Rat

include IA intermodal and 

proportional basis proport

under each rating beginni

conclusion that can be d

outbound rates to the Far E

and bottomed out in early 

that the sharpest decline in 

The pattern of rates o

however presents a picture 

reach a trough in 1982 App

to take place until 198

dramatically throughout the 

Clearly these charts indica

equally In fact it would 

that economic factors such 

therefore trade balances are 

rates These and other var

explain the behavior of freig

As previously mentione

service contracts and confe

significantly affected by 

fact most of the carrier 

situation during the past 

these issues

Appendix L shows in o

porttoport tariff and por

levels for beef a major 

stability and lower level 

be compared to the portto

advised however when comp

tariff rates In certain 

traffic is moving under serv

tariff rate little more tha

often no traffic moves Th

a general increase in rates 

to protest or demand a roll 
2 18a2and 3

To fulfill its obliga

changes in the frequency 

available to specific port

18a3the number and 

in various trades the st

prepared by Lloyd s of Lon

level type and quality d

service to various ports a

of data being collected ca

These data will be u

also to measure the num

nonconference lines 

data being prepared from 

A sample of the market 

Census data can be found i

3 18a4

Section 18a4 

information concerning th

cost of major types of 

Commission A major purp

nondiscriminatory regulato

of goods by water in the 

States with a minimum 

regulatory costs The o

therefore to determine 

purpose have been achieve

data for this question 

Commission and from carrie

D 

Since 1986 the s

Commission has sent sur

seeking information and o

Shipping Act of 1984 

carriers shippers port
operators In 1987 freight 

list of survey recipients T

the above plus NVOCCs and shi

The results of the 1986 

released to the public The 

being tabulated Perhaps th

interesting results in these 

The service contract q

elements the question of wh

the FMC and whether the term

made publicly available or be 

P through S contain the res

these questions As can be s

continuation of the filing req

there was some division on t

Appendixes R and S It is 

whereas shippers in 1986 were 

a 47 to 39 margin the 198

split in the issue Appendix 

however that the populations 

are not identical in fact 

double in 1987 therefore on

that shippers have shifted 

sentiment seems to have shifte

not making the essential term

favor of in 1986 to a 58 to 

Appendix S

A related issue deals 

mandatory independent act

Appendixes T and U The 

that conferences give membe

independent action on tariff 

Independent action on serv

discretionary and as of 1986 

exercised their prerogative 

authority to member lines on 

of mandatory IA on service 

Congress expects the Advisory 

4
Perhaps no other 

diametrically opposed 

independent action on se

the Appendix whereas sh

of such a requirement A

adamant in their oppositi

The ultimate ques

review process will be w

continue to be tolerated 

carriers were virtuall

proposition that confer

Appendix V Perhaps m

of support for the confe

1987 who voted 50 to 3

Appendix W

E SYMPOSIUM ON 

In February 1988 t

the University of Souther

entitled The Shipping 

Issues The conference 

Long Beach and was attende

The objectives of 

information on the curren

shipping industry to exp

changes in the industry 

exchange views on cur

government regulation in 

Conference particip

during the meetings incl

tariffs and independent 

antitrust Leading ind

views on the state of the

after passage of the Act 

the United States and in 

panel of international ex
The proceedings of Th

Debate of the Issues was p

Southern California Copies 

be obtained by writing to 

University of Southern Cal

Angeles California 90089 123

F SECTION 18 STUDY 

The Federal Maritime 

Advisory Committee to make co

conduct of the section 18 stud

of 32 members The members 

conferences ocean common c

common carriers ocean freigh

shippers shippers associa

terminal operator and other tr

The first meeting of the 

on March 10 1988 at the 

Washington DC

The first matter discus

Committee meeting was the 

gathering information for the 

members were given a briefing 

on other data that might be 

obtain information the staff w

The next item on the 

critique of the staff propos

Each survey was discussed and 

all parties as to whether cert

if so if they were properly 

response

As an adjunct to the d

based shippers the subject of 

based shippers was discussed 

the staff should attempt to 

based shippers The staff had 

certain foreignbased shippers 

4
The meeting closed w

their views on addition

addressed in the study 

items arose before the ne

send a letter to the co

issue so that all memb

respond
V

THE FOREIGN SHIPPING 

A THE N

The Omnibus Trade and 

enacted

signing on

by

August

Congress

23 1988

and e

c

the Foreign Shipping Practice

The 1988 Act directs the 

conditions affecting United 

oceanborne trades which 

carriers of those countries 

under US law or as a resu

others providing maritime o

the US

B IMPL

The Commission issued a 

to its regulations to im

Practices Act of 1988 The 

procedures for investigatory 

conditions affecting USfla

for foreign carriers in the 

also proposed to amend its 

19b of the Merchant M

13b5of the Shipping Act 

made available to the Commis

statutes pursuant to the F

The proposed rule has been pu

and comments are due by Janua

C TOP TWENTY US LINE

Section 10002 g 

Competitiveness Act of 1988 

Commission to include in its 

list of the twenty foreign 

largest volume of oceanborne 

calendar year in bilateral tra
The most recent y

available to the Commis

table below indicates th

generated the largest vo

bilateral trade with 

descending order of ton

thousands of long tons 

United States liner impor

Top Twen

Trading 

COUNTRY 

JAPAN 

TAIWAN 

REPUBLIC OF KOREA 

FEDERAL REPUBLIC OF 

ITALY 

UNITED KINGDOM NO

PEOPLE S REPUBLIC O

NETHERLANDS HOLLAN

HONG KONG 

FRANCE 

BRAZIL 

AUSTRALIA 

BELGIUM AND LUXEMBOU

SPAIN 

INDONESIA 

THAILAND 

VENEZUELA 

INDIA 

PHILIPPINES 

SAUDI ARABIA 
The data used to derive 

twenty trading partners were 

Census Census Census 

tramp tanker and dry carg

defined by Census as that 

operator of vessels on berth 

schedules of vessels in line

The data supplied to the Co

nonliner shipments in accor

Export and import data 

primarily from Shipper sEx

Trade Zone documents the 

withdrawal forms which import

with Customs officials Bot

exclude shipments between 

excluded are shipments of m

imports of vessels themselve

as military household goods 

other supplies intransit 

States etc

5

VIII

SIGNIFICANT OPERA

BY ORGANIZAT

1 General

A OFFICE O

The Office of the 

preparing the regular and no

to consideration by the Com

action taken by the Commissi

processing formal complain

shipping statutes and other 

and notices of actions o

official files and record

receiving and responding to 

personnel and or records 

Information Government in 

responding to information 

staff maritime industry 

publications and documents 

before the Commission and 

volumes of Commission decisi

The Secretary s Offic

development of rules desig

complexity of formal proce

implementation of legislat

statutes

During fiscal year 1988

The Secretary serves 

Officer and in conne

Office

Privacy

was

Act

responsible

regulation

503 to adopt exemptio

in regard to informat

included in certain in

87 23 24 SR 792 F

The Office was respons

section 502 92 of the 

and Procedure which 

docket applications 

requirement for the jo

docket applications 

clarified language 

appropriate tariff for 

changes to conform t

Docket No 8810 24 
The Office continue

and determine more 

for publication of th

decisions The dock

fiscal year 1987 c

project to establis

linking various o

continues to receiv

progress has been mad

for the coding arc

materials for inclu

Commission sdecisio

first volumes to be 

will be available in 

The Commission hea

proceedings and issue

proceedings Six

discontinued or dism

determinations not to 

orders terminating 

also remanded back to 

one case was referre

for decision The 

special docket appl

which involve claims 

10000 During the 

final rules in nine 

Six rulemaking proc

Commission at the end 

these matters are an

2 Informal Dockets Activi

This activity is 

adjudication of claims f

carriers by water engag

offshore commerce of the 

be predicated upon violatio

Shipping Act of 1984 o

1933 for which reparatio

The vast number of clai

constitute shippers re

arising from alleged overc

year 1988 the Informal 

cases During the same 

were concluded
3 Office of Informal Inquir

This Office coordinates 

system throughout the Agenc

and information requests wer

including those handled t

Recoveries to the general pu

other savings attributable 

activities amounted to 3721

has helped complainants reco

The Office coordinate

industry representatives a

supplied copies of procedure

requested by the general pu

this Office responded to 67

The Office maintained lia

President s Consumer Affa

participated throughout the f

B OFFICE OF ADMIN

1 General

Administrative Law Jud

after receipt of a complaint 

on the Commission sown motio

Administrative Law Ju

administer oaths and affirm

upon offers of proof and rec

cause depositions to be take

would be served thereby 

hearing hold conferences 

simplification of the issue

dispose of procedural reque

decisions or recommend decis

authorized by agency 

Administrative Procedure Act

At the beginning of fis

were pending before Adminis

year 106 cases were added 

remanded to Administrative 

proceedings The judges h

held no formal oral he

proceedings dismissed or d

issued 10 initial decisions 

initial decision in an inform

decisions in special docket a

2 Commission Action

The Commission adopted 

formal decisions became a

informal decision became ad

docket decisions in 78 proce

final one decision was ad

partially adopted

6
3 Decisions of Adminis

not yet decided by th

Mobil Oil Corporation 

No 86 17

This was a complaint pro

alleged that Respondent h

excess of those provided f

question presented was 

involved asphalt cutba

lower rate or was Dang

having a higher rate

Before hearing the 

agreement calling for a 

initial decision approved 

remanded it for a deter

settlement met the standa

On remand the second in

settlement holding that 

been met and noting th

resolution of the d

obtainable

Investigation of Re

Yangming Marine Line AR 

Corporation and Yang Ming 

This proceeding was inst

Investigation and raised 

Respondent had violated 

charges that differed fro

by extending certain p

tariff and by engaging 

including paying deferred 

After extensive prel

and the Respondent ente

wherein the Respondent 

168 667 plus accrued 

and desist order and th

bookkeeping procedures 

settlement
Atlantis Lines Ltd v 

Docket No 8719

This was a complaint proce

alleged the Respondent had 

refusing to apply a discoun

the Complainant The languag

after 100 TEU s 

nine month period a d

200 40 will apply to a

carrier

The Complainant argued the d

containers it shipped not jus

100 containers as the Res

Decision found that at best 

therefore had to be construe

Judges also issued ini

83 49 86 30 87 10 87 13 

Docket No 1601 F Special 

1559 1570 1572 1575 1576 

1583 1584 1585 1586 1587 

1593 1594 1595 1596 1597 

1603 1604 1605 1606 1607 

1614 1615 1616 1617 1618 

1624 1625 1626 1627 1628 

1634 1635 1636 1637 1638 

1645 1646 1647 1648 1650 

and 1666 described under Dec

4 Pending Proceedings

At the close of fiscal 

proceedings of which 4 we

the Commission The remain

by the filing of complain

carriers by water shippers 

or districts terminal ope

stevedores

C OFFICE OF 

The Office of the G

counsel to the Commission 

sufficiency staff recomme

drafts proposed rules to im

prepares final decisions 

Commission ratification I

or oral legal opinions to t

general public in appropriat

1 Adjudicatory Decisions 

The following are 

rulemakings representative 

Office

Actions to Adjust Or 

Shipping in the United State

25 24 SR 866 March 2 

The Commission issued 

section 19 of the Merchan

conditions unfavorable t

StatesTaiwan trade with 

operation of dockside equ

operation of container term

flag carriers Subsequen

petition from Taiwan auth

these two issues had been s

requested that this proce

petition was supported by 

affected USflag carriers 

by all affected parties of 

issues the Commission disco

In The Matter of M

Independent Ocean Freight F

12 24 SR 587 October 

The Commission granted 

order with respect to the qu

liability under the freight 

the Shipping Act of 1984 and 

that such liability does no

stated on the bond
Actions to Adjust or 

Shipping in the United State

24 SR 636 December 7 

The Commission issued 

1987 and subsequently a 

pursuant to section 19 of t

address conditions unfavor

StatesPeru trade with 

reservation decree reservin

and export cargoes for Pe

Rule would suspend the tari

in the USPeru trade 

authorization from the Co

trade

Following the issua

Government of Peru rescinde

was directed Subsequen

reconsider the Final Ru

conditions found to exist 

arose from certain laws 

rescinded The Commission 

docketed proceeding to de

conditions previously foun

some other disposition is 

Final Rule

Due to ongoing dip

developments in the trad

interested parties to comm

trade and sanctions propos

disposition has been issued 

Investigation of Unfi

Transport Evergreen Marine 

Container Line Inc Do

March 30 1988

The Commission initiat

whether three carriers had 

or the Shipping Act of 

attempting to set rates in 

without an effective agree
The Commission approved a 

respondent carriers by the 

Counsel whereby the respon

permanently from discussing 

the common carriage of com

Taiwan trade until such ti

such activity is filed w

effective pursuant to the 

admitting any violations of 

to pay civil penalties total

Agreement No 003 01

Agreement Docket No 862

1988

The Commission issued 

of its jurisdiction over the 

IOTA an agreement r

ancillary services provided 

and PRMSA in Puerto Rico 

that it had personal jurisd

of their limited porttop

mainland and Puerto Rico t

jurisdiction over those asp

terminal and other services 

parties ICC regulated j

Commission found that servi

with the parties ICC regula

been shown to have any imp

traffic Nor could the Com

intent that the Commission 

absent a nexus with allwat

decision the Commission s

to those aspects of the ag

other services provided in 

water carriage

Conference Service Con

16 24 SR 846 March 4 

The Commission adopte

conferences to state in th
applicable rules affectin

service contract authority 

that conferences file an 

whenever these rules are 

required that conference 

located in a designated art

Palmetto Shipping and 

Ports Authority Docket N

29 1988

The Commission dete

published by Georgia Por

agents liable for collect

terminal charges are reaso

1984

Tariff Publication of 

Applicable to Carrier Equi

or Their Agents Docket N

18 1988

The Commission amend

require the publication of 

EIA s between ocean co

on behalf of shippers wh

provided that published fr

carrier equipment could be 

The Commission held that 

into with inland truckers d

asserting jurisdiction ove

ocean common carriers F

that allegations of unreas

rules were unfounded

Application of Evergr

for the Benefit of Service 

No 1513 24 SR 753 J

The Commission on its 

decision of an aninistrati

waiverrefund relief proc

Shipping Act of 1984 do 

connection with service co
Petition of BiState H

New Jersey Motor Truck A

Investigation and Rulemak

1988

The Commission deni

investigation of practices 

carriers serving the Port 

payment of inland divisions 

in intermodal service and 

periods within which oce

divisions to motor carrier

failure to pay within the p

Section 19 Petition of 

Pacific America Line Ship

StatesKorea Trade Order 2

The Commission recei

Management Inc d ba Pac

issuance of regulations to 

the United StatesKorea trad

Merchant Marine Act 1920 

Korea scargo preference law

carriers 100 of all the st

by water subject to a 

irreparable harm to the Pet

The petition was publis

the Commission invited the 

interested parties The 

Department of State to re

whether the situation could 

channels

Comments received ind

Korea had taken action to m

the petition and that a 

problems complained of by P

On the basis of thes

Pacific America Line in ef

Commission on August 23 198

the proceeding
2 Litigation

The Office of the Ge

Commission in litigatio

administrative agencies 

largely consists of re

petition for review of its 

of Appeals the Office a

injunctions enforcement 

collect civil penalties 

Commission sinterest may 

The following are re

by the Office

Petchem Inc v Fed

958 DC Cir 1988

The US Court of App

Circuit affirmed the Cos 

Petchem a tug operator 

Canaveral Port Authority s

to provide commercial t

Florida amounted to unlaw

under the Shipping Act 

clarified previous FMC ca

while exclusive termina

disfavored by the Ship

commercially necessary

Plaquemines Port Ha

Federal Maritime Commissio

The US Court of App

Circuit upheld the Com

jurisdiction over Plaquem

District as a marine term

of section 315 of the S

port authority conditione

facilities on the payment 

port authority for provid

services in connection with 

private facilities The co
not an unconstitutional to

clause of the US Constitu

that the Commission corre

authority had discriminated 

users from paying the harbo

provisions of the port s ta

under the Shipping Act of 198

New York Shipping Assoc

Maritime Commission and the 

F2d 1338 DC Cir 1988

The Commission ruled 

enforcement by ocean commo

Container Rules whereby car

to points within 50 miles of 

must be loaded or unload

longshoremen were unreasona

and therefore violated the S

Act of 1984 and the Intercoas

The Commission further 

statutes the Rules could not 

they are the result of co

Association

between the carriers

ILA

and

intend

th

longshoremen The Commiss

accommodation for national l

laws was in the constructio

violations The Commission 

to an order to cease and 

enforcement of the Rules

The carriers and the IL

with the US Court of Appea

Circuit which upheld the C

year end the matter was be

Court on Petition for Certio

and desist order has been sta
United States of A

Commission v Jorge Villen

Shipping Inc et al N

21 1988

On April 21 1988 

Southern District of Flor

injunctive action brought 

and the US Department o

violations of the Shippin

FMC s Office of General C

Programs negotiated the te

Villena and essentially p

the action

The Consent Decree 

Villena from doing bus

Shipping Star Bright C

International from opera

and foreign commerce of t

on file with the Commissio

does business failing to 

filed misdeclaring cargo 

failing to pay freight 

carrier on shipments for 

money from shippers The 

preliminary injunction en

in the alleged unlawful co

FMC investigation Docke

George Villena SeaTrade 

Line and Caribbean Sun In

The US Department 

Commission joined in th

collecting 100 0 in 

Commission cease and desis

and related firms in a pr

14 CariCarqo Internatio

Trade Shipping The 

Commission scease and de

and awarded the Commissio

amount of the assessed civ
3 Legislative Activities

The Office also represe

in all matters before Congres

proposed legislation prop

testimony for Commission o

Congressional requests for as

This Office followed 

Omnibus Trade and Competitiv

technical assistance to bot

portion of HR 3 that ultim

directly affects the Federal 

A of Title X the Foreign S

It gives the Commission a new 

foreign maritime practices t

carriers additional means to 

such practices and a wide 

certain conditions are found 

On August 23 1988 the 

Trade and Competitiveness Ac

418

In May 1988 comments we

Merchant Marine and Fisheries 

certain parts of title 46 o

Commission had previously su

of those portions of tit

Commission s

suggestions were

jurisdiction

included 

differences remained between 

and these were addressed in F

Further during fisca

prepared and coordinated for 

4 International Affairs

Lastly the Office als

monitoring and reporting 

developments including pra

which affect ocean shipping 
Commission on US Gover

with international maritim

technical advisor on reg

multilateral maritime disc

Several reports and 

submitted to the Commissio

19bof the Merchant 

these section 19 matters 

87 6 and Korean cargo re

intermodal activities o

USTaiwan trade See D

Further pursuant to 

1984 the Commission soug

inquiries from carriers 

USTaiwan trade and US

regarding laws regulation

which may unfairly burde

certain ocean common carr

carriers and the US im

upon their services The 

of these nations laws 

determine whether action u

particular concern to the 

United States flag and pos

from conducting shipping 

trades The Commission 

regarding these possible 

USTaiwan and USKorea 

In an ongoing inquir

the USJapan trade of Ja

restricting the movement 

marine containers over the 

the Commission s orders 

Shipping Act of 1984 on 

trade including two S

indicated that new guidel

Japan shortly after the Co

substantially alleviated 
flag and other carriers 

Commission concluded its inq

The Office of the G

interagency groups and inte

particularly as technical 

Maritime Policy Group 

representatives of the US 

State Commerce and Justi

Trade Representative In 

liaison on international 

Commission and other US 

private parties The 

participated in briefings 

Commission

Finally under the C

program relating to the 

several common carriers wer

fiscal year

5 Significant Ongoing Ac

a Korea Shipping Co

The Commission initiate

and effects of laws re

Republic of Korea ROK 

other nonROKflag ocean 

maritime activities in the 

Order on all nonROKflag 

April 14 1987 The Sectio

on laws rules policies o

which prevent carriers from

facilities

operations

nonROKflag

Koreanowned

or conducting

The Commission 

carriers are 

general

agent 

perform their own sa

warehousing trucking and 

functions in the ROK
The responses to the 

pattern of legislation 

agency oversight consisting 

implementing decrees whi

maritime related business 

restrictions established

conditions

preserving

The

remained matters which

in

unfairly burden nonROK 

unfavorable t

certain busines

Korean nationals effe

international shipping line

flag carriers The 

Transportation MARAD have 

representatives of the ROK 

on several occasions

The commitment to perm

branch offices in the ROK 

business activities req

implementing regulations 

an extension of time to co

the Korean National Assembl

in its Fall 1988 sessi

Commission issued an Ame

request and extended the c

1989

b Inquiry Into Law

Taiwan Affecting 

StatesTaiwan Tr

Order 24 SR 

Commission issue

additional information rega

United StatesTaiwan trade 

there had been positive d

c

certain practices and co

responses to the Order are 

Commission sstaff
c Inquiry Into Laws 

People s Republic 

the United StatesC

The Commission has se

information regarding actio

which may discriminate aga

Commission sstaff is curre

trade in light of the respo

recent maritime discussions 

held on October 18 20 1988

d Petition No P5 8

Inc Application 

Matson Navigation Comp

from the Commission pursua

Act 1916 to allow it 

reductions in the Hawaiian 

day s notice At present 

effect only upon 30 da

Intercoastal Act 1933 M

relief will benefit shippe

with Interstate Commerce C

can reduce rates on one das 

e Docket No 87 24 

Exemption

The Commission has prop

as to explicitly permit volu

ocean common carriers gove

between foreign countrie

agreement deem it to ha

reasonably foreseeable effe

States This change would 

agreements though not su

requirements of the Shippi

immunity from the US anti

The proposed rule als

waiting period and informat

foreign toforeign agreeme

agreements covering contigu
foreigntoforeign agreem

immediately upon filing

Comments in support o

various carriers carrier 

Department of Justice ho

ground that it would be 

Commission sjurisdiction
D OFFICE OF EQUAL 

The Office of Equal 

knowledge of Federal EEO and 

procedures and regulations 

comprehensive program of equ

Office works independently 

Chairman to provide advice to 

improving and carrying out it

discrimination and affirmativ

The Office is responsi

program planning and complain

with the assistance of colla

and Special Emphasis Program 

The Office works closely 

managers and supervisors to

Improve recruitm

minorities and wom

Provide adequate c

Facilitate early r

problems

Develop program pla

The Director of Equal 

for counseling of employee

discrimination provides fo

fact finding adjustment o

complaints of discriminatio

complaints of discriminat

dispositions of such formal 

evaluates the program simpac
Significant accompl

include

1 Developed an EE

concert with th

full implementa

year 1989

2 Initiated spe

meetings and tra

3 Established an 

counseling sup

with the US 

Service and th

Angeles Califo

Interior Natio

Exchange Com

Administration 

4 Closed over fif

complaint worklo

5 Developed in 

Personnel a mo

investigators

During fiscal years 

continue and expand its 

activities designed to 

understanding of EEO prin
E OFFICE OF THE 

The Office of the Manag

the direct administration a

staff activities and progra

proper achievement of Commis

The Office provides 

technical supervision to the

Bureau of Trad

Bureau of Dom

Bureau of Eco

Bureau of Hea

Bureau of Inv

Bureau of Adm

Additionally the Offi

furnishes administrative dire

Office of the 

Office of the 

Office of Adm

Office of Equ

A significant achieveme

was the continued coordinati

program involving all operati

the major initiative in t

addressed and concluded an

initial groundwork was laid f

The Office is currently

1 Effectuating the 

monitoring program

2 Guiding the develop

Tariff Filing and 

3 Directing the coll

of the report re

Shipping Act of 19

4 Executing the stre

procurement process

5 Supervising the 

Commission strain

structured effort 

productivity of the 
The Managing Direct

fiscal years 1989 and 

oversight of all aspects 

the report required by s

1984 and continued coordi

the development of ATFI
1 General

F BUREAU OF 

The primary function of 

and administer programs r

concerted activity of commo

standards of the Shipping Ac

1916 The Bureau smajor pro

Administering co

programs to id

competitive comm

each major US 

Commission and i

trade conditions 

needs impactin

transportation

Systematic surv

carrier activity 

Commission s a

standards

Processing and an

common carriers a

Support of formal 

Bureau sareas of 

2 Surveillance See Chapt

3 Types of Agreements

a Conference and Rat

Conference and ratemak

collective discussion agreem

freight rates and practices 

Such agreements are limited 

route The Commission srule

between conference and rat

determining applicability 

provisions

During fiscal year 198

processing of 195 conference 

amendments to existing agree

Act of 1984 There were 71 

effect at the end of the fisc
b Pooling and Equ

Pooling agreements 

carriers in given trades 

apportionment of cargo a

the increased efficienci

provide as a result of t

conditions These agreem

requirements and other fe

efficiency Equal acce

national flag carrier acce

the governments of recipr

of cargo preference 

restrictions

At the conclusion o

agreements in effect w

authority Eleven ag

significant impact on 

Argentina Brazil Chile 

majority of these agree

USSouth American trade

the world are beginning to 

c Space Charter a

Space charter agreem

cross chartering of vesse

or among vessel operato

arrangements of this type 

vessel accommodation in g

would otherwise be 

rationalization of overa

overtonnaging in given 

generally contain author

exchange equipment
During fiscal year 198

and amendments were filed und

effect at the conclusion of t

d Joint ServiceCons

Joint

establish a

by otherwise

given trade

carrier fixing

and issuing its

service and c

new and separate 

independent op

The resulting 

its own rat

own bills o

strictly confined to that wh

the agreement authorizing its 

Sixteen joint servi

amendments were filed during 

agreements were in effect a

year

e Cooperative Workin

Cooperative working ar

discussion agreements which 

discuss competitivelysen

specialized inter carrier op

not precisely fit the oth

Seventyeight cooperative wo

to effective agreements were 

and 69 such agreements were 

the fiscal year

4 Future Plans and Propos

During the first half 

anticipates concluding its c

for the 5 year study mandate

Act of 1984
The Bureau s overal

to focus on the systemat

activity in areas releva

standards of the Shipping 

Bureau plans to continu

monitoring reports to pro

for the indepth monitorin

rate and service activity 

6g and 10 of the Act 

provide periodic trend an

other topics while its tra

trade conditions between 

countries The Bureau s

the Commission sactiviti

Also specific monitorin

will be continued In 

various ongoing monitorin

expand the breadth of the

and discussions on additio

Bureau strade monitoring 

todate and detailed inte

agreement activity and ch

Act s standards Although 

right they are not an 

reportstudy program deve

isolate and identify activ

standards for appropriate 

Commission itself as warr

case

The Bureau anticipa

analysis of newlyfiled 

agreement is likely to 

issues or policy issues 

to the Commission on more 

the disposition of rou

delegated by the Commis

audit

rules will

individual

be implemented

agreement 
The Bureau also pla

databases for the Work in

Required Reports Profile Sys

in current programs for th

programs for additional 

monitoring efforts

It is also anticipated 

to become more involved in 

investigative issues

Finally the Bureau s 

proceedings is expected to c

involvement will of course 

matter of the proceedings in

year

1 General

G BUREAU O

The Bureau of Domest

administers and analyzes 

connection with pricing 

conferences of such carrier

foreign and domestic offshor

reviews and maintains both 

regulations

rejecting those

approves

which fail

or

applications involving req

tariff filing rules pro

essential terms publications 

and conferences of such car

in collaboration with othe

warranted for formal ac

Commission and plans dev

for processing evaluatin

activity of marine terminal 

The Bureau is also re

ocean freight forwarders 

Shipping Act of 1984 and 

certification of owners and 

in the United States trade 

responsibility of such ow

liability incurred by non 

death or injury to passenge

Bureau of Domestic Regulatio

filed by ocean common ca

marine terminal agreements 

of ocean freight forwarde

passenger vessels for financ

The Bureau develops lo

policies and standards an

respect to its program a
cooperates with other Com

enforcement of the Commiss

2 Foreign Commerce Ta

a Service Contracts

The Shipping Act of 1

and conferences of such 

contracts with shippers a

service contract is defined 

between a shipper and an o

in which the shipper makes 

minimum quantity of cargo 

ocean common carrier or co

or rate schedule as well 

as assured space transit 

service features the con

in the event of nonperforma

Each contract entered in

Shipping Act of 1984 must 

Commission and at the sam

essential terms must be fi

available to the general 

essential terms must be o

shippers

The essential terms o

The origin and d

geographic area

The commodity inv

The minimum volu

The linehaul ra

The duration

Service commitm

Liquidated damag
The variables which 

contracts are almost infinit

shippers significant freedo

arrangements suitable to the

During the fiscal yea

revise its regulations govern

contract essential terms T

is to permit the modifica

correct administrative or 

essential

regulations

terms

prohibit

during

the

the d

prohibition may work a hardsh

instances where the contra

Commission due to clerical 

contain the exact provision

Because current Commission 

amendments to filed and a

shippers may be bound by 

proposed rule requests to m

terms would be made to the C

modified essential terms wo

other shippers and shippers 

period of time Final Comm

rule change should be accom

1989

The Commission addresse

issues in Docket No 

Provisions during fiscal yea

favored shipper clauses an

liquidated damages provision

final rule addressing these m

the first part of fiscal year 

During fiscal year 198

service contracts totaling 

These contracts were filed 

carriers and 22 conference

approximately 5900 shippers 

US foreign commerce both in

9
b Controlled Carr

A controlled carrier 

operating assets are d

controlled by the gove

vessels of the common ca

the Shipping Act of 1984 

no controlled carrier may 

tariffs filed with the C

that is just and reaso

establish or mainta

classifications rules or 

addition such rates ch

regulations of a controlle

permission of the Commis

the 30th day after the dat

The Bureau of Domes

filings of controlled ca

notice for rate increases 

fiscal year 1988 contro

7000 tariff pages The 

permission applications fi

c Common Carrier A

Program

Every common carrier 

of the United States and o

by section 15b of the S

1714 and 46 CFR Part 582 

Company Policies and Ef

Foreign Commerce of the U

is to be filed with the Se

and is to be signed by t

common carrier or ocean 

and 46 CFR 582 1b pr

required certification m

5000 for each day 

information obtained under 
to maintain continuous sur

activities and to provide 

practices

An automated program w

receipt of certifications fro

During the year 2756 certifi

manner In conjunction with 

the Bureau undertook an enfor

non filers of certifications

d Inactive Tariffs

During fiscal year 1

Regulation continued a com

commerce tariffs currently on 

purpose of this review was 

which appeared to be inactiv

carriers in the waterborne f

States Inactive tariffs ref

serve no useful purpose while 

A carrier was deemed to be 

its tariff during the precedin

filed the required anti reba

not be contacted by mail or t

review orders to show cause 

not be cancelled were prepar

during fiscal year 1988 and 

623 inactive tariffs

e Tariff Processing

During fiscal year 19

Regulation received and review

which 150 were rejected In 

amending existing tariffs 

applications were processed 

cancelled tariffs and cancell

continuing During fiscal ye

cancelled tariff pages were re

9
3 Domestic Tariff Activ

a Authority

Common carriers opera

commerce are required p

Shipping Act 1916 46 USC 

Intercoastal Shipping Ac

charges and rules with 

Domestic Regulation must 

with

regulations

applicable

also

statutory

require 

financial and operating 

carriers in the domestic t

b Inactive Tariffs

During fiscal year 

Regulation continued a pro

to foreign tariffs to 

appeared to be inactive o

in the domestic offshore 

States As a result of th

why 100 carrier tariffs s

early in fiscal year 1988 

of 87 inactive domestic ta

c Tariff Processin

During fiscal year 

tariffs were received a

domestic special permiss

The Bureau also processed 

existing tariffs
4 Marine Terminal Activit

Marine terminals opera

entities provide facilities 

of cargo and passengers betw

for the receipt and deliv

consignees The Commission 

and processing of certain ag

the marine terminal industry

a Agreements

During fiscal year 1

agreements and agreement mo

terminal services and facil

became effective upon filing 

exempt entitled marine term

period requirements of the 

approval requirements of 

agreements not entitled t

provisions were processed 

filing requirements and 9 

subject to the Commission s

twentythree terminal agreem

of the fiscal year

The Commission is also 

labormanagement agreements 

Agreements Act of 1980 PL 

Act provides that such

provide for the funding

benefit obligations

regardless of the

ag

of 

equipment utilized shall b 

with the Commission Durin

management agreements of this 

During fiscal year 198

moratorium on the assesbmen

unfiled terminal service 

potential enforcement activit

on other 

cargo h
fact finding investigatio

agreements are subject to 

if so whether they 

requirements The fact f

Investigation No 17 was 

the fiscal year

The Bureau also initia

program regarding all exis

with the Commission

b Terminal Tariffs

The Bureau carried 

respect to terminal tari

tariff pages filed during 

the fiscal year there were 

the Commission

During fiscal year 

satisfactory compliance 

prohibiting terminal tariff

exculpate obligate othe

relieve marine terminal o

own negligence In a fe

still continuing

The Bureau s effort

tariffs from the Comms

cancellation of 13 inacti

effective May 25 1988 

to exempted bulk commo

cancelled andor removed fr

request of the tariff pu

1988 a tariff filing e

filing of three terminal 

process of performing a 

tariffs in the Commission s
5 Freight Forwarders

The ocean freight forw

persons who in effect hold 

export departments for hire 

export shippers by arranging 

cargo by common carriers 

legal requirements safe

incidentals related to exp

receive a fee from the ex

shipment as well as compe

whose vessel is selected to 

Congressional finding

malpractices within the ocea

led to the enactment of sect

46 USC 841b which veste

for the licensing and re

freight forwarders At th

export trades were rampan

maintaining a favorable 

especially small businesses w

their own exporting Congr

limited oversight of ocean f

to eliminate secret illegal

ensure that unscrupulous 

irresponsible persons were p

freight forwarders Althoug

freight forwarders has inc

initiated malpractices are n

rule

The continued maintenanc

technical qualifications an

of an ocean freight forwarder 

of a license issued by the 

which is required to be 

Commission Once issued a 

However Commission approval 

form of a licensee or a lice

is required The amount of t
of offices through which an 

services The basic bon

increased by 10000 

office of a forwarder Ea

of a forwarder is required 

With the enactment o

Commission sregulatory re

industry are now found in 

this statute the basic 

essentially in place H

export shippers receiving 

ie they no longer have 

forwarders are barred fro

carriers on shipments in 

interest Also under the 

forwarders engaged in fore

are no longer required to 

approval Hence such agre

immunity

The Shipping Act 19

persons operating as forw

trades of the United State

nor are such entities requ

During fiscal year 1

hundred fiftynine applica

licenses in addition to t

from fiscal year 1987 

applications were approved 

processing stage and fo

were returned to the app

were pending at the close 

previously issued licenses 

the forwarder sfailure to 

required by statute

In addition to applica

year 1988 the Commission 

requesting approval of 
organizational changes 

carried over from the previo

these requests were approved 

requests were withdrawn 

requested actions were pend

1988

On site compliance inve

of the Commission seffort 

freight forwarders comply 

shipping statutes and the C

the year fiftynine invest

the Bureau with twelve rep

year 1987 Forty six of 

issuance of warning letters 

Hearing Counsel for the a

penalties Eighteen cases 

formal corrective action S

at the close of fiscal year 

Other activities during 

The processing of 1255 

new bonds riders to b

The review and proces

concerning in the ma

of freight charges by 

The issuance of 104 new 

12 revoked licenses 

obtained

The receipt of inform

in excess of 3500

forwarder bonds

During fiscal year 1

Petition for Rulemaking f

Brokers and Forwarders Asso

to amend six areas of t

forwarder rules 46 CFR Par

9
denied in all respects 

Reconsideration of the de

Upon review the Commi

petition for reconsidera

seeking judicial review o

rulemaking request

The Commission also h

fiscal year 1987 a Petitio

the Old Republic Insurance 

America and the NCBFAA to 

uncertainty which might 

potential liability of a 

bond The issue to be 

liability under a forwards

face amount of the bond 

liability to be derived by 

the number of shipmen

occurrences or periods co

year 1988 the Commission 

liability of a surety is l

bond

At the end of the fisc

ocean freight forwarders 

total number of licensees a

6 Passenger Vessel Cert

The Commission is 

sections 2 and 3 of Publi

regulations

817e which

found

have

in

been

46

Protection of the Pub

operators of American and 

stateroom accommodations f

embarking passengers at U

financial responsibility 

for death or injury to 

voyages to or from United S
passengers for nonperforman

they would be entitled und

submission of evidence o

accordance with Subpart B of 

issue a Certificate of Fi

Liability Incurred for Dea

Other Persons on Voyages 

submission of similar eviden

of 46 CFR 540 the Commiss

Financial Responsibility fo

for Nonperformance of 

Performance

With respect to the C

responsibility must be es

schedule provided in sectio

Commission regulations 

responsibility required unde

for the issuance of a 

determined by the Commiss

such as the number of vessel 

collection policy sailing 

experience An applicant 

must evidence financial res

the casualty provisions at 

capacity of its largest ve

respect to performance is 

insurer which could require 

The certificates must 

Customs officials at the po

vessel from the United Sta

Customs Service will refuse 

not have proper certificates 

the Commission confirms com

During fiscal year 19

applications for passenger 

22 were new applications fo

were new applications for 

were applications for amend
At the close of fiscal 

pending Holders of pas

filed with the Comm

responsibility in excess 

certification and 1 billio

7 Automated Database Sys

The Bureau of Domes

automated database system

contract system 2 the 

tariff profile system 4 

ocean freight forwarder sys

provides certain key se

geographies shipper name

regulated persons index a

person the Commission regu

and business name The ta

contained in tariffs on 

microfiche system provides 

tariffs which have been 

forwarder system provides 

tracking of licensees incl

During fiscal year 1

another automated system f

activity Primary data 

agreements has been com

programming is nearly comp

8 Shippers Associations

The Shipping Act 

associations for the first 

ocean transportation They 

of shippers which on a no

cargoes to secure volume 

contracts The Act expres

conferences negotiate with 
provides that associations c

on behalf of their members 

been granted antitrust imm

fiscal year 1988 52 service 

22 shippers associations 

became effective a total of 

entered into a total of 156 

carriers and conferences

9 Financial Analysis

The Bureau of Domestic 

and financial expertise to h

rates for the transportatio

provided by common carrie

waterborne commerce of the 

provides technical assistance 

Commission eg in fiscal 

financial advice to Commiss

formal Commission proceeding 

The Bureau continued 

carriers in the domestic o

States The effort involv

financial and operating data 

CFR Part 552

During the year the B

increases filed in the US 

general rate increase in the 

also involved in an inquiry 

the Guam Trade which was su

increase was withdrawn while 

Financial expertise is 

the passenger vessel certific

year 1988 a full onsite a

passenger vessel revenue co

operator
Accounting assistance 

Hearing Counsel in connec

and litigation activities

10 Support Activities

The Bureau of Domes

primary information and d

activities and programs

Investigative activit

research and supporting d

Bureau staff Automated 

persons index and service 

initial data identification 

relevant material is retrie

Investigations andor the 

The Commission sfiel

general data lists of regu

field office jurisdictions 

investigative efforts but 

information concerning Com

During the past fis

supported the Commission s

effects of the Shipping A

tariff rate data which is 

in the liner shipping indu

Exercise of the Coms

respond to complaints con

foreign flag carriers and 

trades is contingent upo

foreign operators in a p

assisted in this capacity 

involving Taiwan and Peru
11 Rulemaking and Docketed 

The Bureau initiates or 

Commission docketed proceed

the Bureau was involved w

Contracts MostFavored 

service contract regulations 

rates of other carriers and 

Tariff Publications of Fre

Applicable to Carrier Equip

and Their Agents to requir

conditions governing the use 

and Docket No 87 12 Dec

Maximum Potential Liability 

Forwarder Bonds to fix the 

under an independent ocean 

No 88 16 Proposed Rulem

Administrative or Clerical 

permit the modification of 

circumstances The Bureau a

Investigation No 17 Rates 

at

jurisdiction

Marine Terminal

over

Facilitie

certain

practices

The Bureau was involved 

concerning truck detention 

Truckers Union the Californ

BiState Harbor Carriers Co

Trucking Association all 

Commission

1 General

H BUREAU OF 

The Bureau of Econom

statistical and financial a

Bureau augments the 

capabilities and enhances th

developments and trends in 

shipping industry

Major activities of the 

Preparing the fiveyear 

the Shipping Act of 198

the international ocean 

Coordinating the input 

which were organized t

information and trade d

Organizing and coord

Section 18 Study Adviso

receive in a public 

conduct of the fiveyea

Preparing financial an

use in overseeing the 

domestic offshore trade

Preparing special repo

developments in liner s

Providing information 

for economic politica

2 Section 18 Study

The Bureau s major pr

continuing effort to ful

collection and analysis of 

and drafting the reports re

Shipping Act of 1984 A 

progress to date in this five 

Chapter on the Section 18 St
3 Future Plans and Propo

The Bureau will conc

writing the various repor

include reports on the im

need for tariff filing an

for marine terminal ope

adopting a tariff system 

shipment These reports 

responses received to 

information obtained fro

analytical research

A second meeting of 

Committee is also planne

topic of discussion at this 

views on the Act and are

changes made
I BUREAU OF 

The Bureau of Hearing 

counsel in formal adjudic

rulemaking proceedings when 

and other proceedings initi

Bureau s attorneys serve 

intervention is permitted 

instituted under section 22 

section 11 of the Shipping 

also are designated Inv

adjudicatory formal proceed

In addition to the fo

Bureau participates as a 

other formal proceedings in 

issues affecting the ship

public as distinguished 

between litigating parties 

Bureau also participates i

development of Commission 

request the Bureau furnishe

occasion the Bureau may pa

or against the Commission 

advice to the Bureau of 

investigations and review e

that Bureau

When appropriate the 

prepares and serves notice 

statutes and regulations 

civil penalties arising from 

also acts as prosecutor in 

that may result in assessmen

At the close of fiscal 

possible violations prepared 

were pending final resolu

Counsel During fiscal 

possible violations were 

Investigations Sixtynine 
settled administratively 

proceedings As a resu

violations were pending re

Counsel as of September 30 

During fiscal year 19

compromise or assessment 

Appendix E

At the close of fisca

to 12 formal proceedings 

participated in 4 new form

in which the Bureau was 

Accordingly the Bureau was 

September 30 1988

On September 30 198

were being analyzed by the 

requests were received an

completed Accordingly re

advice were being prepared 

During fiscal years 19

was developed for the Bure

in fiscal years 1986 an

functions as legal advis

providing for closer coo

offices This operating 

implemented during fiscal 

the continued effectiveness 

Bureau s role in the Cs 

program it is anticipate

increase in all areas of Bu

fiscal years
J Bureau of 

The Bureau of Investigati

ocean common carriers non ve

freight forwarders passenge

and ports and terminals 

Commission sresponsibility f

commerce The Bureau perfo

compliance with the statutes 

the Commission and conduc

violations These violatio

limited to the following

Carrier and shipper malp

rebating of freight char

misdescription or misdec

Unlawful common carrier 

domestic offshore trades

Unlawful agreements amon

subject to the Commisss

Unlicensed ocean freight 

The Bureau maintains a s

the Headquarters Office in 

Offices in the major port c

Miami New Orleans New Yor

Puerto Rico In addition 

within its assigned jurisdic

responsible for 1 mon

shipping industry to ensu

Shipping Acts and investig

providing liaison with the sh

public and 3 assessing in

Commission
The Bureau focused its 

the identification an

malpractices with a spe

routes As a result se

developed including inves

Pacific and Central 

surveillance in the Trans 

A fortyone percent i

realized in fiscal year 

placed on the major ma

conducted 163 investigatio

65 were forwarded to th

enforcement action See 

A total of 65 surve

fiscal year 1988 includ

contracts freight forwar

of non vesseloperating 

Contract Surveillance Pro

year 1989 with an increa

being forwarded to the Di

Bureau resources in 

be directed toward malpra

routes and the enhancem

Common Carrier Audit Prog

In fiscal year 198

actions to increase the nu

the Houston Los Angeles 

Offices The total 

anticipated to increase to 

The Commission sD

Regional Offices contin

investigative matters of 

1986 Memorandum of Und

agencies This coordinat

of industry intelligence 

the development of import

fiscal year 1988 activitie
whereby Commission investig

filed by the shipping ind

Commercial System ACS T

participated in an orienta

Custom sACS in investigatio

agencies will complete a two

effort to expand upon the 

support

The investigative staff 

White Collar Crime Training 

Enforcement Training Center 

addition to improving the 

detection the Program provid

discuss investigative strateg

lecturers and investigator

enforcement agencies In fis

will send its new investigato

course which provides 

investigations and wil

investigators through a si

subject of investigations in 

The industry expert hire

to provide technical assistan

1988 He provided the inve

unavailable expertise and 

coordination

malpractice program in

At the beginning

and evaluati

the P

of fis

field investigations and su

During the year 228 new 

matters were initiated pro

scheduled for inquiry 

surveillance activities tot

pending at the end of th

summarizes the Bureau of Inv

1

R BUREAU OF 

The Bureau of Administr

direct administration and coo

Office of Administ

Office of Budget a

Office of Personne

Office of Special 

Many of the functions and 

Administration are reflected 

Offices

In fiscal year 1987 the 

was assigned responsibility f

of the Commission sATFI sys

following major accomplis

submission of a Commission 

to the Office of Management 

procurement authority from t

proceeding on the proposed fu

which generated comments fro

industries and which resul

April 1988 4 issuance of 

RFP to over 125 potential 

and 5 conduct of a preso

over 200 questions from pote

In fiscal year 1989 th

second draft and then a fin

bidders and will award a 

offeror enabling the major 

implemented These inclu

operation as a prototype s

volunteers from the shipping 

the system is expected to be
The Office of the Di

Commission s26th Annual 

the preparation of the Cos

the codification of Title 

The Director is th

Administrative Conference 

Contact for FEMA and 

Principal Management Offi

Additionally the Directo

Committee Management Offic

Study Advisory Committee 

1988 and is expected to 

thereafter

1 Office of Administrativ

a General Office 

The Office of Adm

administers a variety of 

principally provide admin

program operations of the 

Office of Administrative 

Director Bureau of Admin

The office ssupport 

procurement of administra

management space managem

records services repro

facilities and equipment 

The office s major functio

necessary supplies equip

support of the Commiss

regulations policies pro

use and provision of thes

with the Federal Acquisiti

Property Management R

appropriate Federal guide
b Office Program Obje

The program objectives o

Services are to

Execute Commission contr

any other procurement 

Government to expenditure

Control and administer 

utilization inventory 

of property

Develop and coo

telecommunications progra

and at all Commission 

installation and mainten

equipment and features

Administer programs for 

environment and other sp

headquarters and field 

planning negotiating 

architectural drawings 

assigning space to an

offices

Manage the receipt stor

all supplies forms 

support of Commission op

Coordinate and contro

copying and graphic s

house or by outside sou

Regulate receipt dist

mail

Coordinate the use 

facilities at head

maintenance security an

Arrange for transportati

locations

Conduct safety inspe

Commission semergency e

Manage the retention 

Commission records and

Direct the Commission s

goal setting under the S

1
c Major Office Ac

During fiscal year 

Services

Developed a com

assignment strack

services to all Com

Solicited requests f

award for reporting 

Upgraded the Coms

messaging system

Established a fa

Commissionwide use 

Coordinated the prin

the initial Automat

System sATFI draf

Automated the offics

process

Directed a study of 

connection with our 

the General Services 

d Office Prognosi

In fiscal year 1989 

initiatives begun in fisc

structure and staffing 

inventory and supply 

computerizing our purchas

establishing an FMC 

renovationrelocation of 

Los Angeles and Houston
2 Office of Budget and Fina

a General

The Office of Budget 

administers the Commission s

and is responsible for 

Commission sphysical fisca

Office is charged with interp

financial policies and pro

budget justifications for sub

Office of Management and 

administers internal contro

imprest

travel and

fund

cash management p

b Objectives The o

Submit annual budget just

and the Congress

Execute the budget to 

properly expended

Prepare regular financia

decisions

Administer the control 

employment

Collect all fees and forfe

Process payments to 

expeditiously as possibl

Assist management in ens

properly to avoid fraud 

Process travel orders an

time limits

Review internal controls 

ensure that they conform 

develop procedures to co

Administer the Commissios

c

Achievements

During fiscal year 198

Financial Management

1
Collected and deposi

fines collections 

vessel certification fe

Provided the Cash Mana

of Treasury with data 

the electronic funds t

allotments as well as 

Diner sClub Credit Ca

quarters of the year

Established a policy 

Agency imprest funds 

required by Treasury g

Completed a reporti

Commission sfund c

computer reports are p

Bank Board depicting 

program and object cl

daily through a comm

providing timely fundin

Prepared Merit Pay and 

Coordinated and prep

estimates for the fisc

and the fiscal year 19

Participated in OMB an

Managed the Commissios

Participated on ag

establishment of a 

Headquarters and the 

Provided management 

workyears funding tra

Transferred depository 

awarded the Treasury 

Management Service of 

The Director Office o

was appointed the Chie

Established a Notary P

Reviewed and updated fi

control procedures to 

and Treasury guideline

Assisted the Federal H

the Prompt Payment Rep
3 Office of Personnel

The Office of Personnel 

management programs includin

training position classifica

occupational safety and 

services employee relatio

incentive awards and retire

Office of Personnel reports 

Administration Significant 

1988 are outlined below

a Program Development

The Office was assigned 

of the Commission strainin

immediately initiated a m

program A Training Advisory 

membership comprised of the 

Coordinators representing the 

EEO Director and others 

plans and identified common 

agency These training 

redirection of training pol

training Approximately 130 

instances of offsite trainin

employees by the end of the 

cooperative training arrangem

Federal Trade Commission whic

of both agencies and a propos

Program was submitted to the 

review

A massive program was 

implement the new Federal Emp

and advise employees of bot

system contained in deficit 

belated election opportunity 

Office successfully conducted 

Open Seasons which resulted 

over 50

1
The Office prepared 

workplace program which 

Coordinating Group for re

the Budget Office to prep

which were submitted to 

program the Office up

sensitive positions

New Commission Orde

Guidelines for Dismissal 

During Emergency Situatio

Adverse Actions Commis

Annual Leave Transfer Prog

System Including Senior E

Appraisal System and OPM 

Commission Orders on Ma

Occupational Safety and H

Program development 

a revised order on Time a

on AIDS was prepared and 

b Recruitment and 

Having concluded the 

effort since 1978 the pe

management officials to 

Office

levels

Budget

Close

Office

coordinat

an

careful monitoring of turn

filling of vacancies w

maximize workyears availa

year the Commission main

agencies in percentage 

disabilities and offered 

employees in Washington 

California

The Office worked clo

Board to effect the appoin

provide guidance on appro
Office also sponsored a sum

providing employment for six 

was held for participants as 

motivation and drug awareness

c Employee Relations

The Office implemented 

contract for Headquarters 

employees of the services pr

This confidential voluntary 

counseling and assistance a

charge

The Office also monitor

counseling services contracts 

Francisco and sponsored 

including seminars on dealing 

management AIDS assertivene

etc Employees were polled 

as to topics for seminars 

services newsletter was distri

Arrangements were made fo

retirement to participate in a 

program held by the Federal 

cost to the Commission The 

Benefits Open Season sponso

Fair and made the Check 

available to employees at no 

The Office worked closely 

agency participation in t

establishing a system of coor

office These coordinators 

techniques to encourage blood 

drives were held

The Office continued to 

their responsibilities in the 

performance including the 

1
increases and awards an

problems as described i

Workforce Discipline In 

conduct related problems 

Commission legal advisors 

by adverse actions were 

Office also administered 

and continued the publica

d Training

The following on site 

agency employees during 

Reception and Letter W

Course Preview for Supe

Effective Writing Course 

Writing Course and a Pro

procedures were put in 

training requests and f

completed to obtain a

assure prompt payment

The Office also ar

participate in OPM s Youn

e Position Class

The major recommend

study of the Commissios

during the year In add

the processing of promoti

f Performance Ap

During the year S

appraisal milestones w

employees and superviso

covering mid year progres

and the preparation of n
and issued on schedule A 

performance awards for the 

prepared jointly by the Perso

Budget and Financial Managem

were timely On site audits 

were conducted as well as a

employees had a position 

standards

g Incentive Awards

Incentive

The Office

Awards

continued

Program

to

in

included prompt action on 

efforts to revitalize the Em

the nomination of several e

eg an SES rank award the A

handicapped employee award 

launched a campaign to promo

encourage employees to make gr

h Program Evaluation

Extensive preparation by 

review of the SES program res

very favorable to the Commiss

not result in a written report 

actions

12
4 Office of Special Stu

The Office of Spe

management analysis ac

guidance for the agencs

efforts supports the 

responsible for energy an

a Information Reso

The Information Reso

automation planning and 

management efforts of t

Office has provided const

on the tariff automation 

During fiscal year 

computer hardware softw

transferring of infor

wordprocessing software 

evaluation of automation 

efforts will continue 

studies will help to dete

automating laborintensi

throughout the Commissio

During fiscal year 

with information resource

further refine and de

economical use of in

systems and guidelines

The Office operates a 

in becoming computer lite

training courses in 

applications software de

continue to participate 

curriculum which includes 

on training and coach

Those efforts will be co

additional computerbase
available and District Office 

The Office provides onc

troubleshooting services 

programming capabilities to s

offices and will continue 

evaluation activities

b Management Analysis P

The Office s

conducting

managemen

internal studies a

effectiveness and economy i

agency resources and to 

results and objectives are b

Office is also responsible fo

for record keeping and report

public carrying out other ph

Act of 1980 and coordinating 

as emergency preparedness and 

c Environmental and Ene

The Office ensures Com

National Environmental Policy 

Policy and Conservation Act 

responsibilities are to 1 

to determine whether the Coms

significant impact upon env

consumption 2 issue enviro

statements when appropriat

Commission regulatory strateg

national environmental goals 

efficiency and conservation

1

APPE

12

H

W C Y z

UPNCO

O4000 00044W

W0

0

a

NI Ca f4

0 22

OOOU

APPE

IMMO

NEM

a

0

m 

0

AP

COMMISSION PROCEED

Formal Proceedings

Decisions 

Reconsiderations 

Discontinuances Dism

Not Reviewed 

Remanded 

Referred to ALJ 

Rulemakings Final Ru

Special Dockets 

Informal Dockets 

Oral Arguments 
A

CARRIER AGREEM

FISC

Carrier Agreements Filed 

including modifications

Foreign and Domestic Comm

Agreements Processing Cat

FortyFive Day Review 

Shortened Review 

Exempt Effective Upon Fili

Rejection of Filing 

Formal Extension of Review 

Approved Under Shipping A

Carrier Agreements on File 

Carrier Reports Submitted 

Shippers Request and Com

Minutes of Meetings 

Pooling Statements 

Operating Reports 

Index of Documents 

Consultations 

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Cooperative Working Agen
APPEN

TARIFF AND TER

FILING AND STATUS 

Tariff Filings Pages

Foreign Filings 

Domestic Filings 

Terminal Filings 

Tariff Publications

Foreign On Hand 1

8

On Hand 18

Domestic On Hand 18

On Hand 18

Terminals On Hand 18

On Hand 18

Special Permission Applicatio

Total Received Foreign 

Granted 

Denied 

Withdrawn 

Total Received Domesti

Granted 

Denied 

Withdrawn 

Investigation and Suspension 

Domestic

Completed 

Pending 

Service Contracts

Filed 

Terminal Agreements

Total Received 

On Hand 1087 

On Hand 1088 
Civil Penalties 

Fis

A P Moller Maersk Line 

Air Land Forwarders Inc 

American Export Produce 

Baton Rouge Marine Contra

Bermuda Ocean Shipping Se

CalWest Produce Enterpr

Sequoia Forwarders Co 

CMB NV 

Crowley Caribbean Transp

E Chow Company Inc Ch

SAC Lines Transpacific Se

EOS Trading Co 

Evergreen Marine Corp 

Exploration Cruise Lines 

F J McCarty Co Inc 

Fresh Western Marketing I

Golden Frog Investment Co

Great Oriental Corp 

Greater Baton Rouge Port 

Hanstai International In

Hoegh Lines 

Impex Services Inc 

Lux Chemical Corporation 

Lykes Bros Steamship Co 

MediterraneanUSA Freight 

National Food Corp 

Nexos Lines Inc 

Ocean Star Container Line 

Orient Overseas Container 

Pan American Container Co

Pandol Bros Inc 

Paramount Export Co 

Rainier Overseas Inc 

Ryan Walsh Inc 

Sesko International Inc 

Sesko Marine Trailers In

Sunset

TW International

Produce Co

Inc

Inc 

Transportation Maritima M

Mexican Lines 

United Fruits Calif Co

Vencaribe CA 

Vernon Calhoun Packing Co

YamashitaShinnihon Steam

Yangming Marine Transport 

TOTAL CIVIL PENALTIES COM

OR ASSESSED 
APPE

FIELD INVESTIGATIONS 

Surve

Action

Pending 10787 9

Opened FY 1988 6

Closed FY 1988 11

Pending 93088 4
A

STATEMENT OF APPROPRIA

FOR THE FISCAL YEA

Appropriations

Public Law 100 202 

necessary expenses of 

including services as 

of passenger motor ve

therefor as authorize

that not to exceed 

official recept

expenses 

Obligations and Unobligate

Net obligations for 

fiscal year ended Se

Statement of Receipts 

the Treasury for the Fisc

Publications and 

Certification and F

Applications 

Fines and penalties 

Total general fund re
APPE

TRADE US West Coast to Japan

COMMODITY Beef ITEM NUMBER 

INFORMATION ABOUT CARGO MO

For the commodity listed above 

percentage of the conference tra

under each of the following tar

46 by porttop

by singlef

10 3 by service 

BRIEF E

Singlefactor throughrates incl

point to port and point to poi

movements by service contract

Unless the percentages shown ab

and service contracts are 5 or 

requested on the accompanying s

Similar information will be requ

of 1989
From WEST COAST

71

Rate 120

Rate unit wt

CAFLate unit na

BAFrate unit n4

na

TRADE US West Coast to Jap

COMMODITY Beef ITEM NUMB

QUESTIONS ABOU

1 Between which points or ports 

carried by conference members 

shown above 

2 Approximately what percentage 

contract cargo in this commo

represent

3 On the basis of the geograph

indicative of MOST of the co

the commodity shown above un

each quarter of 1985 46

1st qtr 

The last two lines are fo
APPENDIX 

soflpowwo3 buinow 

141
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APPEND

143

if9 ufzw4 

222 8221222

1 1 I 11 1 11 1 11 1 
OPERATOR VESSEL 

TYPE NATIONAL

CONFERENCE SERVICES

CCSC USA 

AP HOLLERIIAERSK CC DENMARK 

EVERGREEN CC TAIWAN 

HANJIN CC SOUTH KOR

HYUNDAI 8CCC SOUTH KOR

JAPAN LATE CC JAPAN 

KAWASAKI 005 JAPAN 

LYKES RRCC USA 

M0 L CC BC JAPAN 

N06 CC SINGAPORE 

CC SC JAPAN 

O 0CL CC SINGAPORE 

SEALAND CC HONG KONG 

SHOWA CC JAPAN 

U5 L CC US A 

CC JAPAN 

TOTAL CONFERENCE 

INDEPENDENT SERVICES

OWNERSHIP ANALYSIS UNITE

TO THE 

ASE SC GREECE 

CONTIHAR SC W GERMA

COSCO CC CHINA 

EVERGREEN CC 8C TAIWAN 

CC DENMARK 

PM 0 SC COLOMBIA 

HKI BC CC SC HONG KON

K 5 C CC SOUTH KO

IIEOLLOYD RRCC NETHERLA

RRCC SAUDI AR

115 CP 5C PHILIPPIN

P M 0

CC PHILIPPIN

P 05 C BC SOUTH KO

SEABOARD RR CANADA 

STAR SHIPPING BC NORWAY 

TM BC SC 118100 

TOKAI BC JAPAN 

WESTW00D BC US A 

YANG8IING CC TAIWAN 

KIM CC ISRAEL 

TOTAL INDEPENDENT 

TOTAL ALL SERVICES 
osee soo oovee

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