LETTER OF TRANSMITTAL

MEMBERS OF THE COMMISSION

I THE COMMISSION

II THE YEAR IN REVIEW

TABLE O

III SURVEILLANCE AND ENFORCE

IV DEVELOPMENTS IN MAJOR US 

V TARIFF AUTOMATION 

A History 

B Functions 

C Organization 

A Enforcement 

B Restrictive Foreign P

C ATFI 

D Section 18 Study 

E Other Commission Proc

A Surveillance 

B Enforcement 

A Transatlantic 

B Mediterranean 

C Africa 

D Transpacific 

E Latin America and The 

F Middle East 

G Worldwide 
VI SECTION 18 STUDY

TABLE O

Cd

A Section 18 The Mand

of the Impact of the 

B Consultation with Oth

C FMC Progress To Date 

D A Second Conference o

E Section 18 Advisory C

F Conclusion 

VII SIGNIFICANT OPERATING AC

APPENDICES

A Office of the Secreta

B Office of Administra

C Office of the Genera

D Office of the Managin

E Bureau of Trade Moni

F Bureau of Domestic R

G Bureau of Economic A

H Bureau of Hearing Cou

I Bureau of Investigatio

J Bureau Of Administrat

A Organization Chart 

B Commission Proceeding

C Agreement Filings and 

D Tariff Filings and St

E Civil Penalties Comp

Fiscal Year 1987 

F Field Investigations 

G Statement of Appropr

and Receipts for the 

September 30 1987 

H Example of MarketSha

I Outline of Survey Que

J Program for Symposium 
Office a tilt mh aimatt

Wa

To the United States Se

Pursuant to sectio

No 7 of 1961 and sec

1936 as amended I am 

annual report of the a

Commission for fiscal y

MEMBERS OF TH

Edward V Hickey Jr

Chairman

Appointed 1985

Term Expires 1991

R Virginia

Edward J Philbin

Commissioner

Appointed 1985

Term Expires 1989

R California

Francis 

Comm

Appoin

Term Ex

D 

SENIOR COMM

Secretary 

Chief Administrative Law Jud

General Counsel 

Director Office of

Equal Employment Opportu

Managing Director 

Director Bureau of Trade M

Director Bureau of Domestic 

Director Bureau of Economic 

Director Bureau of Hearing 

Director Bureau of Investig

Director Bureau of Adminis

THE CO

A H

The Federal Maritime Co

independent regulatory agency 

effective August 12 1961 P

Maritime Board was responsib

ocean commerce and the pro

Marine Under the reorganiza

the United States were sepa

regulatory and promotional 

with promotion of an adequat

Marine were assigned to the 

located within the Department 

created Federal Maritime Co

administration of the regulat

laws The Commission is now 

of oceanborne transportation 

the domestic offshore trade 

passage of the Shipping Act 

change in the regulatory reg

operating in the foreign com

B FUN

The principal statute

administered by the Federal 

Shipping Act of 1984 th

Intercoastal Shipping Act 

Merchant Marine Act 1920
The Commission sregulatory 

Reviewing and monitoring ag

and other persons engaged in 

These agreements include 

service and space charter a

o Receipt and review of ta

regulation of rate levels 

in the US foreign commerc

o Protecting shippers and car

commerce of the United Stat

marketoriented rules an

governments andor the 

carriers that have an adver

the United States

o Protecting the rights of US

to transport cargoes in the 

Regulating rates charges 

tariffs of foreign governm

ensure that such matters ar

Regulating rates charges 

practices of ocean common 

offshore trades of the US

Licensing of international 

Issuing passenger vesse

financial responsibility of 

to pay judgments for pers

repay fares for the nonp

cruise

Investigating discrimina

classifications and pr

carriers terminal operat

operating in the foreign 

commerce of the United Sta

The 1984 Act exempts ag

effective under the Act from t

contained in the Sherman and Cl
reviews and evaluates agreem

exploit the grant of antitrus

agreements do not otherwise 

result in an unreasonable inc

unreasonable reduction in se

In addition to monitorin

the Commission is also r

individual carriers as well 

to act in concert fairly tr

of the shipping public Th

unduly discriminating among 

the shipping public The Act 

their rates charges and p

tariffs that must be on file 

may only assess the rates an

file with the Commission Th

have the authority to appro

increases or individual com

foreign commerce except wi

governmentowned carriers

The Commission is auth

Merchant Marine Act 1920 

Shipping Act of 1984 to ta

foreign commerce of the Un

non market barriers to ocean 

take countervailing action t

conditions in US foreign co

to address actions by carrie

impair access of USflag 

foreign ports

The Commission cond

investigations to carry out i

It also holds hearings c

decisions and issues appro

regulations The Commiss

involving the regulated co

public and other affected in
C ORG

The Federal Maritime C

Commissioners appointed for f

with the advice and consent 

three members of the Comm

political party The Pre

Commissioners to serve as C

chief executive and administr

The Commission s orga

Office of the Managing Dire

Office of the General Counse

Judges Office of Equal Emp

Economic Analysis Bureau o

Domestic Regulation Bureau 

Administration and Bureau o

Director assists the Chairma

administrative direction to 

Bureaus These Offices and 

Commission sregulatory progr

support

In fiscal year 1987 th

total of 214 fulltime equiv

appropriation of 11947 000 

Commission spersonnel are lo

field offices in New York S

Orleans Miami Houston and 
THE YEA

The year 1987 was sign

Commission because it so cle

emphasis on aggressive en

realignment of priorities w

enactment of the Shipping A

the preimplementation proc

agency and accentuated th

enforcement capabilities and 

resources have been redirect

vigor and support to its enf

time the Commission has in

foreign practices that un

conditions in our foreig

Commission sauthority unde

Marine Act 1920 These ef

level playing field for all 

commerce The Commission 

during fiscal year 1987 in 

automated tariff filing pro

analysis for the report req

Act

The Annual Report is st

synopsis of the activitie

Commission sbureaus This 

brief summary of some of thos

A EN

The Commission ssteppe

been bolstered by an inc

intelligence gathering 

techniques Computer prog

carriers and their market sh

aid the Commission staff in t
of surveillance or

effectiveness in its enforceme

invest

enhanced by stronger hea

Commission svarious district 

of a new district office in H

These enforcement effor

most

uncovering

significant

serious

accomplishm

trade ma

year 1987 was its Trans Atla

resulted in the establishme

program for the group of ca

disclosures of certain tran

payment to the Commission of

this initiative were to achiev

acts and to bring about sta

Trades

In addition to the payme

Trans Atlantic Trade initia

compromised or assessed 24305

the fiscal year

B RESTRICTIVE F

Fiscal year 1987 was 

history of the Commission i

identifying and correcting u

foreign commerce The Commis

section 15 of the 1984 Act t

trades with Japan Korea Ta

of China soliciting infor

operations in US trades w

effort to identify foreign 

that impact adversely on those 

is in the process of bein

determine whether action und

Marine Act 1920 is necessary 
Foreign governmental tra

Peru were the subjects of 

initiated under section 19 

Colombia was discontinued whe

agreed to provide the complain

in the trade In the Peru m

proposed rule which would sus

flag carriers in response to 

decree reserving 100 of imp

carriers at fiscal year s en

monitoring diplomatic efforts 

These proceedings typify mos

though they frequently inclu

sanctions to combat the part

have historically been te

government sdiscontinuance of 

C A

Substantial progress was 

filings which are curren

manually During fiscal year 

approximately 746 800 tariff 

private

automating

sector

this

contractor

system was

and

d

plans for a cost benefit anal

Request for Proposals for a 

filing system

D SECTION 

The Commission continued 

five year study mandated by 

Trade data is being collecte

methods and procedures for a

refined The Commission sst

regularly with other Federal 

industry groups to ensure the 

of the efforts to date
E OTHER COM

During the fiscal yea

of significant decisions 

Container Rules case and 

which further implemented 

Commission sexperience wit

A more detailed des

achievements of the Comm

follows
I

SURVEILLANCE 

A SUR

An integral part of the 

the Shipping Act 1916 and t

systematic surveillance of 

conditions to ensure continu

standards and the requiremen

The Bureau of Trade Monitoring 

Trade Groups I and II w

surveillance programs designe

necessary degree of oversight 

The 1984 Act provides 

is rejected for technical rea

with the mandatory confere

sections 5b and 5c or i

section 6g of the Act the 

to take effect with the Com

over the parties concerted a

this statutory requirement 

possible activity proscribed 

has directed the activitie

Monitoring toward improving 

of its monitoring programs

During fiscal year 198

refined its programs for th

critical trades These pro

surveillance factors includi

cargo tonnages of majo

identification relevant ta

use of service contracts ag

investigation for existence 
January of 1987 the Bureau 

comprehensive indepth surv

BrazilUnited States trades 

the factors affecting trade 

role Brazilian Government 

development of bilateral ship

the Bureau of Trade Monito

Study a staff review of the 

key foreign trade area

A major development in 

the First Quarterly Monitor

publication of the Bureau 

updated on a regular quart

provide the Commission with 

manner that effectively add

arise Each edition featur

agreement activity analyses 

subtrades and special re

effective surveillance Thre

released during the fiscal ye

In July the Bureau of 

update of the Mediterranean 

issued during the previous f

was included as a supplem

Monitoring Report featured 

rate activity for 1986 and pa

Also work was complete

Controlled Carrier Monitoring 

is also prepared for intern

analysis of the market shares 

a number of key subtrades 

permission activities of c

first half of 1987 and a 

profiles

monitoring

Other

offices

activities

during

com

th

preliminary economic analysis 
Act of a proposed United Stat

a detailed study of predatory 

activity under the standards 

Act an economic analysis 

USColombian trades prelim

penetration of US markets 

flag carriers an inquiry 

conditions an economic anal

the TransAtlantic Revenue A

inquiry into service contra

East trades

B ENF

The Commission has a

Shipping Act of 1984 great

placed upon enforcement act

concentrate its efforts and 

long and short term enforcem

established an Enforcement 

Directors and Deputy Di

Investigations Hearing C

Domestic Regulation which 

responsibility for compliance 

The TransAtlantic Trad

to as North Atlantic Amnes

program recommended by the E

Commission The purpose o

achieve stability in those 

compliance with the Shippi

agreement between the Com

carriers agreed to establish 

policing program to meet th

carriers agreed to make dis

past rate malpractices an

Commission totaling 2000
To meet the needs of 

enforcement role the Commiss

investigative and legal staff 

training for professional e

Crime Training Program at 

Training Center in Glynco G

investigation of fraud relat

opportunity for the exc

investigative strategies and 

Federal agencies

The greater emphasis by 

activity resulted in a s

assessment and compromise of 

E and in the number of inve

conducted during the fiscal 

sustained enforcement activ

deterrent effect on malpractic
DEVELOPMENTS IN MAJO

A TRAN

The Transatlantic trade

overcapacity November witnes

subsequent withdrawal from th

United states Lines The de

by approximately 180 00 t

However the effect of this d

was dampened by the entry 

Atlantic and the more recent 

Senator Line American Tran

Lines South Atlantic Carg

Service and Topgallant Gro

recently announced plans to 

planned expansions announced 

the trade most notably Dar

exacerbate the disequilibrium

Meanwhile despite sign

States dollar visavis cer

demand for westbound liner 

stronger than in the eastb

carriers provide round trip 

uneconomical proposition o

westbound and lessthan full 

on the return leg The con

US AtlanticNorth Europe C

EuropeUS Atlantic Conferen

several ways Major indepe

and Polish Ocean Line have 

fledged conference members 

their current stabilization ar

to as the Eurocorde agreemen

discussion and agreement with 

service contracts

1
Eurocorde partnership 

American Transport Line M

South Atlantic Cargo Shipp

approach to collaborative r

the evidence relating 

arrangements involving only 

Line indicates little im

course the expanded Eurocor

increase in market share mig

Lines operating in t

trades have been losing ca

Mediterranean trade For 

moves from North Europe ports 

to Marseilles Presumably 

Stabilization Agreement NO 

response to this outside 

agreement authorizes membe

Freight Conference North E

and North EuropeUS Gulf 

upon rates service contra

region involved is the inbou

and Gulf from North European 

Another measure contem

the introduction of 

Apportionment Agreement TA

agreement would have res

apportionment of certain n

operators Although the pro

would have included the ent

ports and points and ports 

it would have at first be

commodities However TARA 

implemented It deserves 

decidedly both innovative 

traditional pooling agreeme

assigned cargo shares an

penalties Instead TARA em

unit concept and provided 
revenues for all members 

into effect the FMC made cle

impact very closely Fina

response

Shippers Councils

to a complaint 

enter into a conference

This conference known

Pacific Rate Agreement

had anno

investigation into the an

agreement

Another significant 

announcement of its intentio

withdrawal which is schedule

1 1988 will come after 

member Dart will however 

The North Europe Paci

a decline in membership to 

August resignation of Tran

resignation coincides with 

rate 

as 

No 

operators to agree upon 

conditions of service betwee

and North Europe via US 

ports Basically the mov

cargo to the West Coast 

through US Atlantic and 

along an allwater route

In addition to the dev

significant agreement activi

The Europact Agreem

parties belonging to the N

Conference the North Europe

and the North EuropeUS A

agree upon rates practices 

scope of this agreement in

from Europe to the United S

reached is voluntary and 

immediate independent action
The Amercorde Agreement 

Pacific Coast European Confer

Association and the US At

with authority similar to t

covers the outbound trade from 

The American Transport 

Ltd Space Charter Agreement 

parties to charter space on 

in the trade between the Un

permitted is container and equ

cooperation in the rationaliz

schedules

Gulfway No 203 01114

agree upon rates practices 

the trade between the Unit

European nations The pa

Steamship Company Inc Ha

Trans Freight Lines Gulf Con

Maritime Nedlloyd Lines a

Adherence to any accord re

voluntary

The Atlantic Express L

Inc Space Charter Agreeme

American Transport Line Inc 

Express Line s vessels in 

provides for coordinated sa

and terminal rationalization

The Mediterranean S

Transport Line Inc Spac

217011118 permits cross ch

trades and authorizes equipm

rationalization of sailing sch

The Pacific Europe Bridg

permits the inbound and outbou

and the US Pacific Coast to 

pertaining to rates rules s

and space chartering

1
B MED

Toward the end of 19

severe competitive pressu

Corporation Evergreen threat

EuropeUSAFreight Confere

Atlantic and Gulf from the M

until March known as the 

Conference MEDUSA responde

action notification period 

subtrade and inviting major 

complete conference and reven

The reduction of the i

period afforded member lines 

transportation rates in res

offered shippers by independ

encouraged members to retain 

significantly in January E

In addition Maersk Line and 

extend conference participa

competitive Italian range 

conference carriers had ope

geographic market Furth

consented to join the revenue 

the scope of the pool was 

French and Spanish ranges 

the form of an amendment w

conference members to pa

withdrawn

The new agreement confi

pool membership has co

conference As evidence of 

course of the year transp

gradually increased

As noted above in the 

Trades a more recent deve

intransit carriers serving 
therefore having the potent

the Westbound Stabilization A

members of SEUSA the North E

and the North EuropeUS Gu

In the eastbound trad

rates five lines established 

conference known as the US 

Mediterranean Rate Agreeme

Costa Line Sea Land Service 

Lines and Nedlloyd Lines 

conference since the US A

and Spain Freight Conference 

May 1 1986 The agreement 

a common tariff Furthermo

contract activity the ag

members or groups of members 

into service contracts which 

scope of the conference How

of not participating or l

participation in conference s

In addition to the deve

significant agreement activit

The Western Mediterranea

203 011148 authorizes SEUSA 

to agree upon rates rules 

under one party s service c

volume requirements in the ot

The agreement sscope encomp

Mediterranean nations to th

Gulf

The Lykes Bros Ste

Navigazione SpA Spac

217 011093 permits Lykes 

opportunities and terminal se

South AtlanticGulf ranges an

The GreeceUS St

203 011147 entered into by 
Gulf Conference and Ocea

concerted rate action an

contracts The liner traff

Greece to the US Atlantic 

C 

The African trades we

in conference activity caus

of the dollar and economic 

Africa The most signific

relations took place with 

Morocco Algeria and Tun

towards deregulation of th

involvement in internationa

in energy prices also con

three countries to increase 

Statistics from the 

indicate that 1986 US 

million an increase of 74 

Exports to Algeria also ros

in 1985 to 452 million in 

increased future exports to 

During fiscal year 198

East African Conference agre

shippers credit by no longe

agreement A member may n

shippers without prior confer

General Line a Nigeria

new liner service between t

West Africa Mediterranea

independent service from Nor

the Port of Antwerp as a 

existing transatlantic servic

In conjunction with Glo

carrier agreement Ameri

implemented fortnightly sail
The agreement provides for 

over Fujairah to APL s Wes

ultimately its transpacific ro

In other activities 

rejected a request by F

apportioning the nation sEss

agency recently modified 30 

into eight major trade areas 

agency expand the scope of the 

ports in Central and South 

Africa

The following summarize

in the African trade for fisca

The ArmadaGLTL East A

207010640001 requires Ar

Service Ltd and Great Lake

remain under their current a

and restricts the use of the 

event of the agreement sdiss

The South and East Af

No 202008054 025 was mod

Ltd Lykes Bros Steamship 

Marine Corp Ltd to charte

ships

D TRA

Serious problems of ove

continued to affect the tra

Nevertheless certain develop

competitive situation in the 

was probably the single most 

the trade Although a devast

marine USL s withdrawal and 

led surviving carriers to 

competitive situation partic

The USL roundtheworld serv
direction only and added th

Econships to what was alread

During 1987 the outb

Agreement TWRA succeeded 

defections that had reduce

previous two years Only 

1987 and that action 

additional nonconference c

North America Eastbound Rate 

hand lost two important 

Merchant Marine Co Ltd 

in addition to USL s with

remain active in the transp

market shares exceed 25 pe

Korea Both carriers con

fact that may relate to the 

rate structures

Although the TWRA enco

the United States to Asia 

Japan Conference activity 

United States occurs und

conferences the Transpaci

and the JapanAtlantic and G

conference experienced any m

resignation of USL

Inbound service cont

but unlike earlier years 

on the conferences beha

conference

contracts

conference

year Outbound

contracts during

carriers 

were prohibited 

agreements towar

the TWRA 

1986 bu

contracts at any time during 

American Transport Lin

Corporation instituted a 

service during 1987 while 
initiated a larger service 

Containerline a Belgian carri

an route to the US Atla

Australia In addition Han

Korea Shipping Corporation in a

carrier The two lines will 

will continue to operate paral

The pending disposition 

major source of uncertainty 

others The massive potentia

could reintroduce to the 

projections concerning overton

rate patterns in the medium and 

In the Hawaiian trades 

major competitor of Matson 

Service Inc made known its 

USL vessels and assume that 

This matter was pending befor

at the close of the fiscal yea

A number of major agreeme

The Hyundai Hanjin Spa

217 011023 permits the two K

space on each other s vesse

trade between US and Canadia

and points in Hong Kong Macao 

The Far EastCaribbean 

203 011122 permits ANERA and 

agree upon rate and service 

from the Far East except Ja

Virgin Islands

ANERA No 202 01077601

agreement to provide for a cut

to carriers that have tendered 

The K LineHyundai S

217 011146 allows K Line to 

the carriage of cargo from Kor

2
The Bali Hai Service 

service of Mitsui OSK Line

and the China Merchant Steam 

Service was formed to serve 

Korea and Pago Pago American 

and other South Pacific ports

TWRA No 202 010689 0

prohibit members from entering 

E LATIN AMERICA 

USL s bankruptcy and sub

service had a major impact 

fiscal year 1987 This event 

US market share in Latin Am

other carriers

San Franciscobased Cro

USL s South America service 

million creditor claim agains

Industries Inc USL s liab

by its charter of three Crow

which were subsequently ret

Transport Line Inc AmTran

settlement AmTrans leased 

vessels USL had used in the 

former carrier a portion of i

revenues

In June AmTrans introduc

Venezuela and Brazil althoug

Lancerclass ships The mo

Crowley to gain an early lead 

However other carriers also 

by USL s departure by expandin

SeaLand Service Sea

purchase USL s transpacific t

sailings to the East Coast o

Sea Land s transshipment ser

2
Freight Conference signified 

government policy favoring 

from Brazil and the US h

and extended 3 year bilatera

Brazil scommitment to make 

to non Brazilian flag carrie

Other increases in se

participation by Lykes Br

Lines which entered the US 

America trades Both c

Brazilian and Argentine poo

the direct trading partners 

allocating 40 percent of no

flag carrier group and the 

flag carriers

By mid year the tota

entering the Latin American 

carrier Netumar Lines beg

US South Atlantic ports t

share of cargo movements 

Venezuelan Container Line 

Co also sought to ben

introducing a fortnightly se

Carolina and Punto Cabello 

West German subsidiary of Ha

between US Atlantic ports 

America

In other activities 

Agreement permitted the 

Conference to meet with 

Transportation Corp in ord

agree upon rates and charge

common tariffs The agree

extra conference stabil

rationalization recently seen 

Atlantic trades It provid

rather than broad rationaliz

the rate enforcing ability 

operate with independent act
Tecmarine Lines a USo

Cayman Islands introduced a 

OrleansCaribbean trade Th

selfsustaining containerships 

The following summarizes 

American trade for fiscal yea

The Crowley Caribbean 

Line Inc Space Charter A

permits exchanges of cargo s

coordination of sailing sched

US Atlantic and Gulf to Cen

The USJamaica D

203 011063002 allows for v

between RB Kirk Connell 

Caribbean Transport Inc 

Atlantic Gulf to Jamaica

The Transnave Navconsa 

Agreement No 213011018 0

charter space and coordinate 

vessels The scope of the 

Florida to Ecuador and Panama

The ELMAA Bottachi 

217 011047 provides for cro

each party in the trade betw

to ports in Brazil Uruguay a

The US Atlantic 

Agreement No 204 01006601

Lines

The Tecomar SAConc

Agreement No 217011079 

cross charter cargo space with 

Mexico

The Trailer Marine Tran

Inc Space Charter and R

232 011121 permits exchanges 

space equipment terminal fa

2
agreement also provides for 

Puerto Rico to the Leeward an

The Central America 

203 011075 004 permits volu

among the USCentral Amer

independent carriers

The CCNITNE Space Cha

allows crosschartering of 

other s equipment in the tra

Gulf to Chile and Ecuador

The Ecuador Discussion 

was modified to authorize th

Navieros Equatorianos Line i

Consolidada SA and the 

Freight Association

The US Atlantic 

212 009847018 and the US 

212 009848 020 were modifie

period and establish minim

commencing October 1 1987 t

parties involved include 

Brasileiro Companhia de 

American Transport Lines 

Nacional

The Naviera PacificN

Agreement No 217011151 

charter cargo space on each o

Pacific Coast and Venezuelan 

The BrazilUS Atla

212 010027018 permits C

Brasileiro Companhia de 

American Transport Lines In

Lineas Maritimas Argentinas 

Navegacion CFIand Va

BV to reallocate pool 

sailings and port call req

through September 30 1988
The USCentral Americ

010987 003 among Crowley C

Land Service Inc and Seabo

Bonaire Curacao Liner Asso

among Genesis Container Line 

and King Ocean Service de Ven

to permit their members to 

the level of compensation paid 

who is also a customs broker

F MID

The Middle East is a 

development of liner service 

poorly developed infrastruct

cargo The year saw Scin

Indianflag carrier pass int

continually from liquidity p

whether the Indian autho

operations into the stateo

India or simply liquidate 

Government of India is consi

schemes subsidies or other 

promote its own flag carrie

are opposed as they prefer 

foreign flag carriers

The fiscal year saw 

202011084 the India Pakis

America Stabilization A

cooperative working arrange

conference It covers Eastbo

in the Indian Subcontinent to 

States and Canada The agres 

American President Lines AP 

Shipping Corporation and S

agreement however was cance
G W

Worldwide the root 

liner sector and the impe

activity is persistent ove

ameliorated somewhat by the 

from the major transatlantic 

relief will be temporary pe

of these vessels and the en

tonnage Responses to this p

rationalization agreements 

modifications designed to le

independent action on confere

significant examples of agr

were filed during the year 

the overtonnaging problem ha

specific geographic sub

significant
TARIFF A

The FMC has the resp

statutes to

1 Accept the fil

and service contracts 

governing transportation 

domestic offshore and 

terminal operators also 

charges

2 Ensure that ta

comply with basic statu

are accepted for filing

3 Maintain the 

service contracts and c

tariff data to courts an

4 Make tariffs 

service contracts availab

Tariff filings continue 

processed by the Commission 

system is proposed to be repl

utilizing modern data process

of the Automated Tariff Filing 

is intended to be the o

Commission Such a system wi

review process retrieve and 

in an automated environment t

needs of the Commission pri

Governmental agencies and wo

manual manner in which the Co

tariff information

In FY 1987 a study 

contractor found that tariff a

FMC sIndustry Advisory Comm

Y
Also in FY 1987 the 

sector contractor through G

assistance for the developme

the preparation of a Reques

prototype operation of the 

first benefit cost analysis 

submitted to the Office of M

The electronic ATFI s

central

seeking a

computer

prime contractor

with appro

tariff review processing 

tariff data to be electronic

conjunction with the i

Coordinating Committee and 

items as opposed to the 

system Tariff line item

commodity rate items in cu

amended directly without ha

page

As recommended by 

Committee standardized comm

not be mandated at the begi

the capability to provide 

appropriate time The s

essential terms of service c

Full implementation of 

allow commercial firms tim

Exemptions at least on a te

to some types of tariff filer

to use the electronic system

The system will be as 

existing computer equipment 

full connectibility Filin

primarily by using asynchrono

dialing in with a modem to t

software will provide on line 

tariff information is corr
provisions are complied w

officially on file Such e

able to electronically ide

such as a rate increase on 

problems for which rejectio

or conflicting tariff pro

handled by FMC staff and 

Commission level The s

however will facilitate thi

The ATFI system w

mechanisms to protect the in

Tariff filers will be 

tariff materials by remote 

system almost any time of 

will be able to screens

appropriate item can be am

can also continue to use 

filing eg by direct inp

service creates tariffs on 

by transforming their pape

The FMC will encourage com

small firms who may 

electronically

Once the

will download

formatted onto

sold

cost

tariff data 

the entire 

computer tap

to any person at the 

of dissemination 

statutory duty of provid

reasonable charge In orde

number of rapidly changing 

industry interested persons 

base tapes frequently 

service to provide this cap
The FMC will not perform 

the tariff data for sale 

competition with commercial ta

that those services will subsc

facilitate their valueadded 

however use the system to p

for investigative and other 

continue to utilize appropria

services of commercial tariff 

In order to carry out its 

tariffs and essential terms o

for public inspection the 

public reference room at its 

DC Here interested perso

terminal on which information 

brought up on the screen and 

rates and rules Paper copies 

available upon written reques

to courts and other tribuna

disputes over historical tarif

Another retrieval feature 

access to the FMC data base 

day for retrieval of tariff 

person For example the sys

the West Coast to retrieve da

system using a terminal or m

device ie a modem to en

public telephone lines If th

new system members of the gen

to perform relatively ru

essentially no analysis of the 

of the public may only be able 

time in its full format T

mode the public user would 

tariff of a particular carrie

user would not be able to sear

commodity

32
To ensure that the 

commercial tariff informatio

leave the remote retrieval fu

by existing tariff services 

now in a paper environment 

carrier and conference filer

own tariffs on the FMC s dat

for filing Moreover carri

remotely accessing ATFI for 

belong in order to check t

should be charged to their s

the terminals in the FMC 

retrieval However carrie

their competitors tariff da

vendors that will provid

subscription to the entire d

The FMC will operate 

period of at least six mon

functionality and performan

for this prototype operatio

publiccomment rulemakings o

tariff data and for establish

The final system is sc

in the Fall of 1989

3

SEC

A SECTION 18 THE MAND

THE IMPACT OF THE 

Section 18 of the S

referred to as the Act 

five years following its e

information concerning the 

international ocean shipping 

that the information the FMC 

1 increases or decreases 

changes in the frequency or 

available to specific ports 

number and strength of in

trades and 4 the length 

major types of regulatory pr

Section 18b of the 

shall consult with the De

Department of Transportation 

Commission FTC annually c

that these agencies shall 

data collected under this se

comments concerning data co

Within six months afte

period of data collection 

information with an analys

Congress to the Advisory Co

Shipping Advisory Commissio

The Advisory Commission wil

that time The three afo

submit their own analyses on 

after the FMC submission

3
The Act further specifie

following three topics should 

analyses

The advisability of adop

on volume and mass of shi

The need for antitrust 

terminals and

The continuing need fo

that tariffs be filed and 

The Advisory Commission 

comprehensive study

concerning conferences

specifically address whether

of 

in oce

by prohibiting conferences 

conferences The Advisory Com

after its establishment mak

President and the Congress

Sources of

include tariffs

material such as

International Monetary

information requested

The choice of data to

B CONSULTATION W

information 

and service 

exchang

th

Fund 

from c

be coll

years before and after the Act 

obtained from the various sour

analysis

It is expected that the 

be adopted by the FMC will di

approach of the other age

intention of Congress to allow 

forming an Advisory Commis

things is to evaluate the s

of data was clearly intended t

of activity by the separate a
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 

a share by one firm of more 

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

1 General

C FMC PR

In February 1984 when 

was likely to become part o

FMC prepared a preliminary o

the major areas of anticip

that date is reported under 
Establish and maintain 

Representatives from the 

Identify major issues and 

o Work with the industry 

information advice and o

o Research the usefulness 

procedures which can be a

o Continue the data collect

2 The interagency Group of R

The FMC held its initial 

section 18 Interagency Grou

additional meetings were held 

were held in FY 1985 three me

1986 and two meetings were 

wide range of topics was dis

problems of certain data sourc

Congress intended under sect

become increasingly more spe

the intended analysis of th

requirements of the other a

reporting obligations At the 

FMC staff distributed to the 

Group copies of certain data 

electronically accessible file

convened when substantial add

available At the Februa

distributed six reports on 1

ports These reports were 

subsidiary of Lloyd s of Lon

port marine terminal opera

sent to each agency representa

3 Identify Major Issues and P

The FMC s initial asses

mandate focused on sections 

3
new Act by examining the co

associated with data collecti

Although specific tasks con

sectionbysection basis the 

approach became apparent dur

partly in response to the 

collecting tasks for the yea

of the data files and part

pertinent data should be liste

at some later date when th

current Accordingly a dec

status report annually and 

report to various people i

industry who have expressed a

the study

4 Section 18 Study Groups

Shortly after passage o

that the collection of informa

in misleading or erroneous d

would be very beneficial if 

collected by pursuing an agre

verified by the affected part

carriers shippers ports and 

they would be interested in 

occasionally with the staff to 

These study groups have 

that the data collected are 

the impact of the Act T

functions of these groups hav

to verify data collected to 

Shipping Act of 1984 on freig

that these groups will provide 

and other issues during t

description of the membership

group is discussed below

3
a Carrier Study Group

Twenty seven carriers 

US European and Japanese 

Number 10851 Advisory Comm

Federal Maritime Commissio

cooperative working agreemen

the members could obtain 

collective actions

The staff has held num

of Agreement No 10851 larg

the rate gathering portion 

in some cases working in c

conferences has provided or 

service contracts intermoda

rates More recently the m

by the staff for the carrie

revenue and utilization for 

and Australian trades It 

be forthcoming in late 1987

Information provided 

indicates that a large share 

is carried under service co

primarily by singlefactor 

which may include interior 

intermodal arrangements betw

exporting importing countr

exporting country In ad

of time a third group of co

extensive rate changes follow

one or more conference carr

are rates including terms 

published in the conference 

the common rate published in 

b Shipper Study Group

In April 1986 a Sh

consisting of eleven mem

corporations At the time 
been expanded to include twe

includes representatives fr

corporations the forest p

interests and major retailing 

The staff meets with t

times a year seeking informa

verification of data containe

requirements of shippers 

freight costs of shippers hav

years and other information 

determination of the impact 

information provided by the 

very useful in ensuring that 

data on freight rates servic

studied

c Ports Study Group

The American Associatio

has established a Ports Wo

representatives of ports from 

Great Lakes to assist the F

the section 18 study The 

meetings to date and discusse

Section 18 informatio

industry

Review of the 1986 surve

Revisions for the 1987 

Explanation and prete

immunity questions for 

Participation by port 

and on the Commission s

d Marine Terminal Ope

A Marine Terminal Op

established by the National A

The Marine Terminals Working 

224 011099 covering twenty

operators which went into ef
Although no formal me

preliminary discussions with 

Working Group discussions 

immunities issue how informa

terminal operations can be p

and comment on the annual sur

e Freight Forwarder St

The forwarding industr

comprised of nine representa

study group has been instrume

prepare a survey of industry 

the impact of the Act It is 

also work with the staff in o

issues which are of concern to 

f Other Study Groups

The staff has held dis

non vessel operating common 

shippers associations B

interest in forming study gro

in late 1987

S Continuation of Data Coll

a Section 18a

Of greatest interest 

compilation of tariff rates 

country trades which were sele
Australia

Brazil

Italy

Japan

Taiwan

US Pacific Coast to A

US Atlantic Coast to 

Australia to US Pacif

Australia to US Atlan

US Atlantic to 

US Gulf Coast to Braz

Brazil to US Atlantic 

Brazil to US Gulf Coa

US North Atlantic Coa

Italy to US North Atl

US Pacific Coast to J

US Atlantic Coast to 

Japan to US Pacific C

Japan to US Atlantic 

US Pacific Coast to T

US Atlantic Coast to 

Taiwan to US Pacific 

Taiwan to US Atlantic 

West Germany

US North Atlantic to 

US South Atlantic to 

West Germany to US N

West Germany to US S

b Section 18a2

Section 18a2of th

the FMC to collect and 

changes in the frequency o

available to specific ports 

tasks associated with such 

follows
i Changes in the Q

generally speaking will b

indicators of service quali

and speed of delivery trans

equal most shippers would pr

having their goods transshipp

with every break in the tran

delay or something going wro

who are shipping highvalue g

which could provide quick tra

the type of vessel employed 

their product ie some sh

vessel service and not fully 

ii Analysis of Cha

Shippers and especially p

configuration of service patt

within the sailing schedule 

the first portin and or last 

is of considerable importan

importers and exporters when 

their goods Ports will also 

to which loadcentering occur

iii Type of Carrier 

assessing service quality s

the Commission to analyze the 

available This part of the 

examining the output produced 

types of ships deployed eg 

off conventional etc The 

vessel output ie DWT versu

by conference versus independ

Lloyd s of London repo

for the Commission will docu

Europe Brazil and Australi

patterns These data will 

received from ports carriers 

to compare service quality le

open conference trades

4
c Section 18a3

Section 18a3 of t

concerned with the number 

carriers in various trades 

can be defined to mean the 

operators who are not membe

trades The strength of 

interpreted in several ways

ways

The intent is to meas

Number of vessels operat

Total capacity made av

the number of vessels m

vessel

Value of cargo carried b

Tonnage of cargo carried 

Since the number of ve

offered by independents and 

discussed in the

focus on changes

section 18a

in market s

carriers Appendix H contai

share results

d Section 18a4

Section 18a4 requir

4

tonnage of cargo and numbers 

information concerning the le

cost of major types of regu

Commission A major purpose 

nondiscriminatory regulatory p

of goods by water in the fo

States with a minimum of 

regulatory costs The obje

therefore to determine if 

purpose have been achieved 

relevant information is curre
6 CostRevenue Indexes

As part of the section 

was made at the FMCAgreem

Meeting on November 21 

Agreement for information o

utilization The staff 

acceptable to receive such 

suggested that appropriate a

for the major US trades 

the members of the Agreemen

next four months a cons

expended by all parties invo

methodology for carrying out 

its scope

It has been agreed tha

if possible for three trad

TransPacific and the Trans

1983 1988 The members 

Department of Maritime Stud

UWIST to put forward a pr

prepare indexes which would 

members This proposal was 

was accepted by the lines in 

begin on constructing the 

trade for the period 1983 198

7 Surveys

a Carrier Survey

The Federal Maritime C

of the 1986 Carrier Surv

participants responses in 

Results Those results a

results of the Shipper and P

members of the Carrier Work

30 1987
Based on its experie

Survey the Commission sta

questionnaire This yea

s 

section on excepted commo

Working Group members would 

responses based on size o

additional questions to 

responding to the survey 

carrier The 1987 Carrie

September to 141 carriers in 

b Shipper Survey

The Summary of the 19

a presentation of shippers 

Survey and a detailed analy

These results along with 

and port responses to ke

meeting between Commission 

Group on June 17 1987 At 

the response rate to the 1

and the new survey was 

consolidated and includes 

commodities The section o

survey was eliminated becau

other sections have been re

response The section o

broadened to incorporate ot

The 1987 shipper surv

1987 to approximately 200 

this year s survey while 

last year s mailing has b

percent of the shippers to 

names were provided by a 

members are involved in inte
c Ports and Non Prt 

Surveys

These two

little change

considered good

closely related 

The response 

and there was 

the 1986 Port Survey Ques

survey to clarify aspects of th

The new port survey was releas

60 ports

With the creation of

Working Group it is expected

port marine terminal

improve substantially

expressed

antitrust

operato

The

non 

a special interest 

immunities and the 

non port marine terminal opera

in mid September 1987 to 45 m

d Freight Forwarder Sur

A new survey a modif

survey has been prepared for 

industry It will be mailed 

freight forwarders in October 

an outline of the survey topic

8 Section 18c Topics

Although a large percenta

necessary for the completion of 

devoted to the tasks of data 

described in the previous sec

relating to section 18c a

Current plans specify complet

three topics during 1988

a System of Tariffs B

Shipment

The interpretation of the 

the legislative history of the 

48
it will involve a feasibility 

a single tariff by each comm

cargo shipped in units of 

handling characteristics T

study can be described as fo

Discussion of the proba

o Evaluation of costo

elements in the current 

Economic impact of requ

b Antitrust Immunity 

Under existing regulat

may not agree to boycott or 

provision of terminal servic

may otherwise file agreemen

agreements may be entered in

or more ocean common carrier

rates or other conditions of 

there is a continued need to 

such agreements in the new e

to create Some of the 

preparation of a report on th

Legislative history 

provision

Analysis of terminal 

Commission

Economic analysis of 

antitrust immunity

Opinions of ports 

shipping industry in ge

c Statutory Requireme

Enforced

The most controversial 

and enforcement concerns the 
should legalize rates wh

action of conference memb

maintained There are howe

of which are directly related 

rate and others of which may 

possible changes to the ex

such issues there is a defin

and objectives of tariff f

following tasks have been de

a comprehensive report

o

Legislative History of 

What purpose and objec

statutory requirement

objectives remained unc

1916

FMC Rules on Tariff Fil

rules been effective 

objectives as determine

rules been consistently 

Alternative Arrangemen

Enforcement Are alter

with the purpose and ob

o

Tariff Filing and Enfo

Governments The FM

State sent a ques

soliciting information 

of common carrier tar

questions will provide 

practice in the Unite

requirements in other na

Theoretical Case for T

What theoretical econom

support of maintaining 

What are the arguments a

Analysis of the Economic 

and Enforcement

Impact on the Tariff 

Independent Action and E

5
D A SECOND CONFERENCE 

The Federal Maritime C

Southern California will co

the Shipping Act of 1984 Sy

be held in Long Beach Cal

The purpose of the conferenc

in which all segments of the 

their views on the impact o

enactment

Representatives from in

will discuss issues which 

Commission and by the Adviso

Ocean Shipping

An important objective 

the current opinions of a 

participants and

discussing issues

format for the

Norfolk Virginia

its form

rather tha

first FM

in 1986

Another objective of 

elicit information on gov

shipping in Europe the Far 

such as UNCTAD Appendix 

Symposium II

E SECTION 18 A

In an effort to bring 

industry including the s

published a notice in the Fe

form an Advisory Committee 

Advisory Committee will offer 

it should proceed with its 

are important topics foi inve

the first meeting of the Adv

early in 1988
F CON

The data collection 

progressing according to sch

the study will depend upon 

representatives of the various 

international shipping indus

these groups for advice 

collection process including 
SIGNIFICANT OP

BY ORGAN

5

1 General

A OFFICE OF 

The Office of the S

preparing the regular and nota

to consideration by the Comm

action taken by the Commission 

processing formal complaints 

shipping statutes and other a

and notices of actions of 

official files and records 

receiving and responding to s

personnel and or records a

Information Government in th

responding to information r

staff maritime industry an

publications and documents r

before the Commission and c

volumes of Commission decision

The Secretary s Office 

development of rules designe

complexity of formal proceedi

the efficiency of the Commiss

and implementation of legisla

statutes

During fiscal year 1987

In connection with the 

Freedom of Information 

Implementation of Freedo

Docket No 87 5 24 SR 

rule revised the Cos

regulations regarding re

records and the establish

charged for search revi

in response to Freedom o

5
The Office was respons

the Commission sRules 

rules implementing the 

which established a cu

information etc 

consideration at an ag

Pertaining to Agency 

SR 389 July 14 19

The Secretary serves 

Officer and in conne

Office published an 

required pursuant to 

records were deleted 

Administrative Grievan

Plan were added

The Office embarked on 

efficient and economic

hardbound volumes of Co

savings in publicatio

transmitting data ele

Printing Office GPO 

Composition System and 

been working closely w

the Commission to d

archiving and editing 

included in each volume

The Office continued i

new automated and non 

tracking and minutedoc

is considering establis

for the Office and thi

year 1988

The Commission heard 

proceedings and issued 

proceedings Ten form

or dismissed without de

not to review Adm

terminating proceeding

back to the Administra

also concluded 125 spe

informal dockets which 

for less than 10000 

Commission issued fin

proceedings

Four rulemaking procee

Commission at the end o

these matters are antic
2 Informal Dockets Activity

This activity is respon

tion of claims filed by shipp

water engaged in the foreign 

of the United States These 

violations of the Shipping A

Shipping Act 1933 for w

10000 is sought The vast 

this program constitute sh

adjustments arising from alle

During fiscal year 1987 

received 26 new cases Durin

docket claims were concluded

3 Office of Informal Inquirie

This Office coordinat

handling system throughout t

complaints and information req

year 1987 including those 

Offices Recoveries to the 

refunds and other savings amo

a result of the complaint han

this Office has helped compla

The Office coordinated 

industry representatives and 

supplied copies of procedures 

other information requests by 

fiscal year 1987 this Of

telephone requests and inqu

liaison with members of the 

Council in which it participate

5
1 General

B OFFICE OF ADM

Administrative Law Ju

after receipt of a complain

on the Commission sown mot

Administrative Law J

administer oaths and affir

upon offers of proof and re

cause depositions to be tak

would be served thereby 

hearing hold conference

simplification of the issu

dispose of procedural requ

decisions or recommend deci

authorized by agency 

Administrative Procedure Ac

At the beginning of fi

were pending before Admini

year 129 cases were adde

remanded to Administrativ

proceedings and one procee

two proceedings inasmuch as 

issued The judges held 12 

completed oral hearings an

formal proceedings and 119 

docket applications

Cases otherwise disp

proceedings

2 Commission Action

The Commission partia

and one formal decision 

Special docket decisions in 

decisions were partially a

decisions became administra
3 Decisions of Administrat

not yet decided by the Co

Tariff Publication of F

A licable to Carrier E ui m

an Their Agents Docket No 

The Initial Decision held 

Agreements between FMC reg

unregulated inland carrie

jurisdiction and that pertine

may be required to be filed 

Commission where the ocean c

and practices are affected 

specifically define free t

time and detention in its re

set forth in the ocean carrs

by either the ocean carr

separate agreement with thir

from filing Equipment Interch

16 of the Shipping Act should 

proposed tariff filing rule 

defined in Executive Order 

requirements of Regulatory 

with the Paperwork Reduction 

Palmetto Shipping S

Georgia Ports Authority Dock

Two vessel agents doing bu

alleged that the Georgia Po

unlawful practices in violat

1916 and 1984 by requiring ve

terminal services instead of 

owners by billing certain 

rather than to the cargo in

practices The Initial De

unlawful for the port to loo

payment of their services and 

practices did not violate law

5
The Secretary of the Ar

of Defense v The Port of Se

The Initial Decision held th

apply to certain shipments 

sorting which was withou

transloading set forth in 

railcar unloading was not i

container stuffing that wh

for rates 5 13 times thos

tariff for similar service

unreasonable within the mean

Shipping Act 1984 that the 

exceed by more than three tim

reparations of 164 23 09 

and that the shipper is n

claims by lathes or collatera

AS Ivarans Rederi v 

Brasileiro et al Docket N

A party to a revenue poolin

trade approved by the Com

parties to the agreement vio

of the Shipping Act of 198

agreement for the year 1982 

carrier to maintain the requ

requiring Ivarans to pay the 

as an overcarrier The I

agreement need not be suspe

million to the other parties 

rendered in Brazil did n

jurisdiction

Distribution Services 

Conference of Japan and its 

12

The Initial Decision held th

traffic was subjected to un

and disadvantage in violatio

12 of the Shipping Act 
allowances were not given bec

at the ocean carrier s 

consignee s or NVOCC s pla

provisions of the tariff are 

members in the exercise o

determined that it was nec

transloading that the tari

construed against the Respon

is an unreasonable practic

allowance where an invoice 

reparations were due but the 

compute them that the eviden

Respondents acted outside th

agreement or engaged in a b

double damage under section 

and that where carriers we

during the period in ques

respondents even though they 

conference and were not inv

issue

Agreement No 003 0109

Agreement Docket No 86 28

In this investigation pursuan

Shipping Act 1916 the initi

with that part of the procee

the jurisdiction of the Com

found that the Commission has 

the proponent ocean common 

domestic offshore trade betwe

and Puerto Rico and that th

over the proposed terminal a

in Puerto Rico of these prop

subject agreement It was fu

agreement did not pertain to 

not pertain to intermodal 

United States mainland points 

6
Judges also issued in

84 31 84 38 86 14 and S

1418 1435 1447 1448 145

1460 1461 1466 1467 146

1475 1476 1477 1478 147

1485 1486 1487 1488 148

1495 1496 1497 1498 149

1505 1506 1507 1508 150

1516 1517 1518 1519 152

1527 1528 1529 1530 153

1537 1538 1539 1540 154

1547 1548 1549 1550 155

1555 1556 1557 1558 156

1565 Remanded 1566 1567 

and 1581 described under De

4 Pending Proceedings

At the close of fisc

pending proceedings of 

initiated by the Commissio

were instituted by the filin

by common carriers by wate

authorities or districts 

associations and stevedores
1 General

C OFFICE OF T

The Office of the G

counsel to the Commission 

sufficiency staff recommen

drafts proposed rules to im

prepares final decisions 

Commission ratification In 

or oral legal opinions to th

general public in appropriate 

The Office of the Gene

Commission in litigation 

administrative agencies 

largely consists of repr

petition for review of its o

of Appeals the Office als

injunctions enforcement of 

collect civil penalties 

Commission sinterest may be 

The Office also has the 

and reporting on interna

including practices of for

ocean shipping In additio

Commission on US Governm

with intetnational maritime 

technical advisor on regula

multilateral maritime discus

interests

Lastly

in all

the

matters

Office

b

commenting on proposed legi

preparing testimony for Comm

to Congressional requests for 

The following are repres

the Office
2 Commission Actions

Actions to Adjust or M

Shipping in the United State

11 24 SR 405 July 23 

ONE Shipping Ltd 

relief from the Commission u

Merchant Marine Act 1920 ON

Colombia prevented it from c

liquid bulk parcel tanker trad

Upon consideration of 

received on the petition the 

rule which if it had become f

tariffs of Colombianflag c

trade

proposed rule

Subsequent

the US

to

and

the

C

agreement whereby the Governm

free access to the unreserved 

liquid bulk trade and freedo

terms and conditions as a

Colombian flag in the carriag

result ONE Shipping Ltd 

Commission subsequently withdr

Actions to Adjust or M

Shipping in the United States

52 Fed Req 11832 April 13 

Based on information re

shippers and non Peruvian ca

the implementation of a Peru

reserving 100 percent of Peru

for Peruvian carriers the Co

pursuant to section 19b 

1920 finding that unfavorable 

the USPeru trade If the 

would suspend the tariffs of 

USPeru trade unless those 

from the Commission to operate 
65
66
Ariel Maritime Group In

24 SR 517 September 24 

Following remand and 

Commission instituted investig

by Ariel Maritime Group a 

NVOCC and other related 

respondents the Commission d

had committed numerous viola

paragraph and section 1863

The Commission found that resp

and falsely reported weight 

made as an NVOCC thus securin

the rates and charges which 

had in many instances charge

which were not reflected in 

concluded that respondents had 

corporate entities to carry 

shield them from public scrut

The Commission ordered 

respondents to cease and d

Shipping Acts of 1916 and 198

totaling 335 000 against eac

the individual respondents jo

Arctic Gulf Marine 

Association Inc Southbound 

84 31 24 SR 159 May 6 

The Commission imposed 

violations of section 2 of t

1933 failing to comply with 

and section 15 of the Shipping 

carrying out unfiled and unapp

working agreements The fac

longer viable corporations 

mitigating circumstance or oth

the egregious violations o

Alternative methods of collect

pursued

6
Service Contracts Do

June 23 1987

The Commission adopted 

revised its existing servic

rules were based on th

processing thousands of ser

and on the suggestions of 

other things these rules c

range encompasses only por

unloading of the cargo 2 

foreigntoforeign cargoes 

commodities can be voluntar

tariff rate for the exempt 

rerating in the service c

percentage service contra

Commission must be given 

occur during the course of 

terms of a contract may not 

a contract

Member Lines of the 

Agreement Possible Violatio

Docket No 85181 23 SR 

The Commission appr

investigation of whether 

Transpacific Westbound Rate 

the independent action prov

1984 by collectively estab

tariff and service contract 

the TWRA member lines paid c

and agreed to take certain 

their agreement designed 

members right of independen
50 Mile Container 

Common Carriers Serving 

Docket No 8111 24 SR 

The Commission rule

enforcement by ocean com

Container Rules whereby c

to points within 50 miles 

must be loaded or unlo

longshoremen were unreason

and therefore violated the 

Act of 1984 and the Intercoa

The Commission further 

statutes the Rules could n

they are the result of c

Association

between the carriers

ILA

and

inten

t

longshoremen The Commis

accommodation for national 

laws was in the construct

violations The Commission 

to an order to cease and 

enforcement of the Rules

The carriers and the 

with the US Court of Appe

Circuit and immediately s

Commission sdecision The 

but stayed the Commission s

full review

Notice of Inuir Conc

8a and Section 8c o th

No 856 24 SR 131 Ma

The Commission disconti

interpretation of sections 8a 

of 1984 with regard to excep

determined that the issues r

to administrative resolution 

in this proceeding The Com

in the section 18 report 

1989
3 Litigation

Petchem Inc v FMC DC 

In a

involving

services

offering

pending decision

complaint proceedi

a port s franchise 

the Commission held 

round trip passenger 

common carriers within the m

This issue also was litigated 

Cruise Passengers v Cunard 

further held that although i

over tug operators themselve

through an exclusive franchise 

access to its facilities dep

particular tug service the 

transformed into a terminal f

jurisdiction On the merits 

concluded that complainant P

respondent Port Canaveral se

unreasonable and unlawful unde

Petchem filed a petition 

of Appeals for the District 

Canaveral Port Authority and 

support of the Commission s

Petchem s complaint but c

Commission sjurisdiction ov

7

American Association of 

Line Ltd et al DC Civ 

The Commission filed an 

private treble damage antitru

Court for the District of Co

that certain allegations in 

true would constitute violat

1984 and therefore were wit

of the Commission rather tha

therefore supported motions by 

that these allegations should 
lack of jurisdiction or a

Commission

The court denied the 

concluded that the ocean cru

not common carrier passenger 

Act The court then denied 

immediate review by the US 

Court s order is not binding 

required any change in the ags

4 Legislative Activities

The Office of the Gener

Commission in its dealings w

the Office drafts comments f

legislation drafts bills when 

for hearings and responds to 

At the request of the H

Marine drafting and technic

HR 1803 a bill To am

1920 The purpose of this 

authority of the Federal Mar

19 of the Merchant Marine A

maritime restrictions in the 

the United States This 0111 

the Merchant Marine and Fisher

Comments were also submit

HR 1290 and S 1183 These 

foreign governments carrier

discriminate against United St

Further during fiscal 

prepared and coordinated for f

7
5 International Affairs

Several reports and re

submitted to the Commission 

19bof the Merchant M

included communications on 

and a petition by ONE Sh

bulk carrier concerning Co

See Docket Nos 87 6 and 87 

Further pursuant to se

1984 the Commission sought 

inquiries from carriers op

USTaiwan trade and USPs

regarding laws regulations 

which may unfairly burden 

certain ocean common carrier

and the US importers and e

services The Commission is 

nations laws regulations a

action under section 19 is w

to the Commission are in

possibly other carriers a

shipping and ancillary activ

In addition in an ong

Japanese laws on shipping in 

and regulations restricting 

9 6 high marine container

the Commission served orders 

Shipping Act of 1984 on t

trade Through two Supple

Commission sought to monitor 

the applicable regulations 

shortly after the Commiss

determine whether action 

warranted

The Office of the Ge

interagency groups and inte

particularly as technical 
Maritime Policy Group w

representatives of the US 

State Commerce and Justice 

Trade Representative In a

liaison on international s

Commission and other US go

private parties The O

participated in briefings 

Commission

Finally under the Cos

program relating to the sta

number of common carriers wer

fiscal year

D OFFICE OF TH

The Office of the Mana

the direct administration 

staff activities and progra

proper achievement of Commis

The Office provides 

technical supervision to the

Bureau of

o

Bureau of

Bureau of

Bureau of

Bureau of

Bureau of

o

Office

Office

o

Office

Office

Tr

Do

Ec

He

In

A

Additionally the Off

furnishes administrative dire

of th

of th

of Ad

of Eq

A significant achievem

was the implementation of a 

plan which restructured 

Commission to more effective

Also the Office establishe

management officials which 

effective approach to the se

and formulated aggressive a

pursue violators of the shipp

The Office s other ma

the

investigative

further strengthening

monitoring

and

and

continued coordination of 

development of the Automated 

ATFI System and the strea

and procurement processes

1 General

E BUREAU OF 

The Bureau of Agreeme

reorganized to realign 

responsibilities to cons

facilitate program execution 

resulting new Bureau of Trade 

and administer programs re

concerted actions of common 

standards of the Shipping Act 

1916 The Bureau smajor prog

Administration of co

programs to identify an

commercial and economic 

trade in order to keep 

apprised of current trad

and regulatory needs 

transportation

Systematic surveillance 

administration

activity in areas

of statut

re

The processing and ana

common carriers

Support of formal Co

Bureau sareas of exper

2 Surveillance See Chap

3 Types of Agreements

a Conference and Ratem

Conference and ratemakin

collective discussion agreem

freight rates and practices 

Such agreements are limited 

route The Commission srule

between conference and rate 

determining applicability o

provisions

During fiscal year 1987 

processing of 152 conference 

7
amendments to existing agree

Act of 1984 There were 60 

effect at the end of the fisc

b Pooling and Equal A

Pooling agreements are 

carriers in given trades wh

apportionment of cargo ando

purpose of stabilizing co

agreements often set forth 

features relating to overa

access agreements serve to 

access to cargo which is co

reciprocal trading partners 

laws import quotas or other 

agreements

authority

At the conclusion of f

significant impact

Argentina Brazil

majority of these

in effect with 

Eleven agreem

on US

Chile P

agreemen

USSouth American trades 

the world are beginning to us

c Space Charter and 

Space charter agreement

cross chartering of vessel s

or among vessel operators 

give carriers access to vess

beyond that which would 

facilitate the rationalizatio

and to reduce overtonnaging 

During fiscal year 198

and amendments were filed un

effect at the conclusion of t
Joint service and 

establish a new and separate 

by otherwise independent op

given trade The resultin

carrier fixing its own ra

and issuing its own bills of 

Six joint service cons

filed during fiscal y

in effect at the conclu

were

were

d Joint ServiceCons

e Cooperative Working 

Cooperative working a

discussion agreements whic

discuss competitively s

specialized inter carrier o

not precisely fit the ot

Fifty cooperative working 

effective agreements were 

and 83 such agreements were 

the fiscal year

4 Future Plans and Propo

During the coming 

increased involvement in t

the fiveyear stud

Act of 1984

data for

Shipping

The Bureau s overall 

to focus on the systematic 

activity in areas relevant

standards of

Bureau has

provide a

monitoring

activity

the Act

periodic

topics

Shipping 

a s

the

developed

framework

of key subtrad

and 

under the standard

The Bureau s qua

trend analyses of 

its trade studies 
conditions between the United 

The Bureau s controlled c

Commission sactivities under 

specific monitoring of selecte

continued In addition to 

ongoing monitoring reports th

breadth of these reports by pr

subtrades In aggregate th

reports and studies provide 

interpretation of evolving ca

and changing trade condition

The reportstudy program de

allows the Commission to isola

may contravene the Act sstand

by the Bureau or the Commissio

circumstances of each case

The Bureau anticipates 

analysis of newlyfiled agre

agreement is likely to raise 

issues or policy issues the 

to the Commission on more com

the disposition of routine 

delegated by the Commission

In support of the Bures 

is planned continued maintenan

inProcess System WIPS and 

System RRPS continued chang

systems and the development 

functions It is also antic

become more involved in p

investigative issues

Finally the Bureau s 

proceedings will continue 

involvement will of course t

matter of the proceedings init

year

8
1 General

F BUREAU OF 

The Bureau of Domesti

administers and analyzes 

connection with pricing b

conferences of such carriers 

foreign and domestic offshore 

reviews and maintains both n

rejecting

regulations

those

approves

which fail

or d

applications involving requ

tariff filing rules proc

essential terms publications 

and conferences of such carr

in collaboration with other 

warranted for formal ac

Commission and plans deve

for processing evaluatin

activity of marine terminal 

responsible for the licensin

under the provisions of the 

Public Law 89 777 the certif

of passenger vessels in the 

to the financial responsibil

to satisfy liability incurre

or resulting from passenger 

develops long range plans 

standards and rules and re

program activities

During fiscal year 

substantial organizational 

changes included major reali

due to retirements a

reorganization and consolida

responsibilities and program 
changes a new organization 

of Tariffs the Bureau of Do

Bureau s new Office of Termi

agreement processing was c

terminal tariff responsib

surveillance of the marine 

separate organizational unit 

established for the specific 

maintaining the Commission s

5000 tariffs The Office 

Contract Operations is resp

Commission stariff and serv

as the Bureau sautomated data 

Office of Freight Forwarder a

is responsible for the licensi

and the certification of pas

Bureau of Domestic Regulation 

filed by ocean common carr

marine terminal agreements s

of ocean freight forwarder

passenger vessels for financia

2

Foreign Commerce Tariff 

a Service Contracts

The Shipping Act of 

conferences to enter into se

and or shippers associatio

defined in the Act as 

and an ocean common carrier 

shipper makes a commitment 

quantity of cargo over a fixe

common carrier or conference 

rate schedule as well as a d

assured space transit time 

service features the contrac

in the event of nonperformance 

8
Each contract entered int

Shipping Act of 1984 must b

Commission At the same ti

essential terms must be file

available to the general 

essential terms must be ava

shippers

The essential terms of 

The origin and destin

area

The commodity involve

The minimum volume

The linehaul rate

The duration

Service commitments 

Liquidated damages fo

The variables which 

contracts are almost infini

shippers significant freed

arrangements suitable to the

During the fiscal yea

regulations governing the 

through the promulgation of 

effective on July 27 1987 

the Commission sexperience 

of service contracts that hav

Act of 1984 was enacted T

service contracts more fu

requirements and the intent 

streamline the service contra

The revised regulation

cannot commit all or a fixe

the resulting arrangement be

addition they clarified the 
parties to duration of 

contracts The revised re

filing requirements to faci

and availability of terms to 

They also refined procedures 

publications and statem

termination and rejection of 

In a separate rulemakin

amended its rules governing s

surveillance of service co

problems the Commission h

adequate service contract re

service contract records and 

and conferences to maintain 

accessible or retrievable man

from the termination of e

amendment provided that serv

made available to the Comm

date of a written request

During fiscal year 198

service contracts totaling 

These contracts were filed b

carriers and 28 conference

approximately 5000 shippers 

US foreign commerce both in

b Controlled Carriers

A controlled carrier is 

operating assets are direc

controlled by the governmen

vessels of the common carrie

the Shipping Act of 1984 46 SC 

no controlled carrier may ma

tariffs filed with the Comm

that is just and reasonabl

establish or maintain 

classifications rules or reg

8
addition such rates cha

regulations of a controlled 

permission of the Commiss

the 30th day after the date 

The Bureau of Domestic 

filings of controlled carri

notice for rate increases 

fiscal year 1987 controlle

7000 tariff pages The Bu

permission applications file

Every common carrier b

of the United States and oce

by section 15b of the Ship

1714 and 46 CFR Part 582 

Company Policies and Effo

Foreign Commerce of the Un

is to be filed with the Sec

and is to be signed by the 

common carrier or ocean fre

and 46 CFR 582 1b prov

required certification may 

5000 for each day the 

information obtained under t

to maintain continuous su

activities and to provide 

practices

Revised

rebating cer

1986 These

establish

carriers

freight

covered

uniform

c Common Carrier An

Program

a

regulations g

tifications bec

revised regula

uniform antir

non vessel opera

forwarders The rule 

by the anti rebatin

due date for submiss
An automated program wa

receipt of certifications from 

During the year 2300 certific

manner Appropriate enforcem

with respect to 500 non filers 

d Inactive Tariffs

During fiscal year 19

Regulation undertook a comp

commerce tariffs currently on 

purpose of this survey was 

which appeared to be inactiv

carriers in the waterborne fo

States Inactive tariffs refle

serve no useful purpose while 

A carrier was deemed to be in

its tariff during the precedin

filed the required anti reba

not be contacted by mail or te

survey an order to show ca

should not be canceled was pre

this order will be served ea

will lead to the cancellation 

inactive tariffs during the co

e Tariff Processing

During fiscal year 198

Regulation received and reviewe

which 86 were rejected In a

amending existing tariffs 

applications were processed 

canceled tariffs and canceled 

continuing During fiscal yea

canceled tariff pages were reco

86
3 Domestic Tariff Activity

a Authority

Sections 17 and 18a o

section 2 of the Intercoasta

the filing of rates charges 

of common carriers operating 

commerce The Bureau of Do

that these tariffs comply w

rules pertaining to tariff 

carriers The Commission s

filing of annual reports of f

vesseloperating common carrie

b Inactive Tariffs

During fiscal year 19

Regulation undertook a program 

to foreign tariffs to ide

appeared to be inactive or n

in the domestic offshore wate

States As a result of this 

why 100 carrier tariffs should 

It is anticipated that this 

fiscal year 1988 and will 

significant number of inacti

fiscal year

c Tariff Processing

During fiscal year 19

tariffs were received and 

domestic special permission 

The Bureau also processed ov

existing tariffs
4 Marine Terminal Activit

Marine terminals opera

entities provide facilities 

of cargo between land and se

and delivery of cargo to s

fiscal year 1987 the Burea

agreement modifications re

services and facilities 

agreements were in effect a

year

The Commission is also 

labormanagement agreements 

Agreements Act of 1980 PL 

Act provides that such a

provide for the funding of 

benefit obligations on other 

regardless of the cargo 

equipment utilized shall b

with the Commission Duri

management agreements of this 

On December 24 1986 

Federal Register its fina

prohibiting terminal tariffs 

exculpate or otherwise rel

from liability for their own 

others the obligation to 

terminals from liability 

Approximately 400 marine term

copy of this rule and reque

1987 However extensive 

further notification of spe

to achieve satisfactory com

cases compliance efforts ar

On May 19

Federal Register

marine terminal

inter conference

1987 the 

its final 

agreements 

joint ven

8
from the waiting period requ

1984 and from the approval re

1916 Seventynine agreement

the exemption by the end of th

By Federal Register N

Commission continued a mor

penalties against certain 

agreements pending comp

investigation to determine 

subject to the Commission sj

they should be exempt from 

regard the Commission institu

No 17 which was still in pr

year

The Bureau carried o

respect to terminal tariffs 

4200 terminal tariff pages f

5 Freight Forwarders

The ocean freight forwa

persons who in effect hold 

export departments for hire 

export shippers by arranging 

cargo by common carriers a

legal requirements safe

incidentals related to su

forwarders receive a fee from 

export shipment as well as 

carrier whose vessel is selec

Congressional findings 

malpractices within the ocea

led to the enactment of secti

46 USC 841b which veste

for the licensing and reg

freight forwarders At th

export trades were rampan

maintaining a favorable c
especially small businesses 

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 o

services The basic bond 

increased by 10000 fo

office of a forwarder Each 

of a forwarder is required to 

With the enactment of 

Commission sregulatory resp

industry are now found in s

this statute the basic 

essentially in place How

export shippers receiving a 

ie they no longer have 

forwarders are barred from 

carriers on shipments in 

interest Also under the s

forwarders engaged in foreign 

are no longer required to be 

approval Hence such agreem

immunity
The Shipping Act 1916 

persons operating as forward

trades of the United States 

nor are such entities require

During fiscal year 198

hundred fiftysix application

licenses in addition to the 

fiscal year 1986 Ninety 

approved one was withdrawn d

fortytwo incomplete applic

applicants Thirtytwo ap

close of the fiscal year 

licenses

failure to

were

maintain

revoked

a valid

prim

statute

In addition to applicatio

year 1987 the Commission rec

requesting approval of l

organizational changes Two 

over from the previous fis

requests were approved du

requests were administrative

did not pursue the action 

pending at the close of fisca

On site compliance inve

of the Commission seffort 

freight forwarders comply 

shipping statutes and the Cs

the year one hundred twen

were reviewed by the Bureau 

resulted in the issuance of 

the Bureau of Hearing Co

appropriate civil penaltie

determined to require no fo

reports were pending review 

1987
Other activities during th

The processing of 1053 

new bonds riders to bond

The review and processin

concerning in the major

of freight charges by forw

The issuance of 75 new li

10 ten revoked licenses 

obtained

The review of 6 Dunn and B

The receipt of informatio

excess of 208 00 that 

bonds

During the fiscal year 

Petition for Rulemaking file

Brokers and Forwarders Associa

to amend six areas of the 

forwarder rules 46 CFR Part 5

denied in all respects NCBF

Reconsideration of the denial 

Upon review the Commission 

petition for reconsideration

The Commission also had u

fiscal year 1987 a Petition fo

the Old Republic Insurance Co 

America and the NCBFAA to end 

uncertainty which might ex

potential liability of a sure

bond The issue to be dec

liability under a forwarder sb

face amount of the bond or c

liability to be derived by mu

the number of shipments 

occurrences or periods covered 

At the end of the fiscal y

ocean freight forwarders app

total number of licensees at the 

92
6 Passenger Vessel Certific

The Commission is re

sections 2 and 3 of Public L

817e

regulations

which

found

have

in

been

46

imp

CF

Protection of the Public 

operators of American and fo

stateroom accommodations for 

embarking passengers at Unite

financial responsibility 1 

for death or injury to pa

voyages to or from United Sta

passengers for nonperformanc

they would be entitled unde

submission of evidence of 

accordance with Subpart B of 

issue a Certificate of Fin

Liability Incurred for Death 

Other Persons on Voyages C

submission of similar evidenc

of 46 CFR 540 the Commissio

Financial Responsibility for 

for Nonperformance of 

Performance

With respect to the Ce

responsibility must be esta

schedule provided in section 

Commission regulations An 

one vessel must evidence fina

casualty provisions for its 

financial responsibility requ

Law 89 777 for the issuance 

is determined by the Commiss

such as the number of vessel 

collection policy sailing 

experience The maximum am

respect to performance is 1

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 

as the Commission confirms c

During fiscal year 19

applications for passenger v

25 were new applications fo

were new applications for 

were applications for amend

At the close of fiscal ye

pending Holders of passe

filed with the Commiss

responsibility in excess of 

certification and 1 billion 

7 Automated Database Syste

The Bureau of Domestic 

automated database systems 

contract system 2 the re

tariff profile system 4 

the ocean freight forwarder 

system provides certain key 

geographies shipper names 

regulated persons index ass

person the Commission regula

and business name The tarif

contained in tariffs on fi

microfiche system provides 

tariffs which have been m

forwarder system provides pe

tracking of licensees includ
8 Shippers Associations

The Shipping Act o

associations for the first ti

ocean transportation They 

of shippers which on a non 

cargoes to secure volume 

contracts The Act expressly 

conferences negotiate with s

provides that such associa

contracts on behalf of 

associations have not been g

the 1984 Act In fiscal y

were filed involving 19 shi

Shipping Act of 1984 beca

shippers associations have 

service contracts with certa

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 Such assistance 

attorneys with respect to 

involving terminal charges

The Bureau continued 

carriers in the domestic o

States The effort involv

financial and operating data 

CER Part 552

10 Support Activities

The Bureau of Domestic 

primary information and data 

activities and programs
Investigative activities 

research and supporting docu

Bureau staff Automated data 

persons index and service con

initial data identification p

relevant material is retrieved 

Investigations andor the ap

fiscal year 1987 the Burea

enforcement initiative to com

Atlantic trade

The Commission sfield o

general data lists of regulate

field office jurisdictions T

investigative efforts but se

information concerning Commis

During the past fiscal 

supported the Commission sse

effects of the Shipping Act 

tariff rate data which is tra

in the liner shipping industr

Exercise of the Commis

respond to complaints concer

foreign flag carriers and g

trades is contingent upon 

foreign operators in a parti

assisted in this capacity du

involving Taiwan and Peru

Specialized accounting p

called upon to provide ex

matters

11 Rulemaking and Docketed 

The Bureau of Domestic R

staff support for formal rule

proceedings During fiscal 

involved with Truck Detentio
Increase in Penalty Charges 

the level of charges at 

Agreements Docket No 8510 

certain types of terminal a

waiting periods contained in 

of Agreements by Persons Su

Shipping Act of 1984 Excu

Terminal Agreements and 

Automobile Measurement Rule 

revise mandatory tariff rules 

offshore trades Filing of 

OperatorsExculpatory Provi

prohibit certain tariff p

otherwise relieve marine term

Volga Forwarders Services I

Freight Forwarder sLicense 

if the applicant possessed 

character to be licensed a

Service Contracts Docket N

Contracts and Availability 

86 29 general revisions o

service contracts and their e

Agreement No T3363 Between 

Terminals Inc Docket No 

have operated in accordance 

Rates Charges and Services 

Facilities Fact Finding Inv

over certain marine term

Malpractices in the Trans 

Investigation No 16 to imp

program
1 General

G BUREAU OF EC

The Bureau of Economic 

statistical and financial a

Commission in its statutory 

augments the Commission splann

the agency sresponsiveness to 

in US ocean commerce and the 

Major activities of the B

Preparing the fiveyear st

the Shipping Act of 1984 a

the international ocean sh

Coordinating the input of 

which were organized to a

information and trade data 

Assisting Commission lega

testimony or recommendati

restrictive trade practic

rate increases in the dom

Forecasting trade develo

trends

Preparing special reports 

developments in liner ship

Participating in the plan

feasibility of automating 

Providing information in 

for economic political a

2 Section 18 Study

The Bureau s major proje

continuing effort to fulfil

collection and analysis of da

and drafting the reports requ

Shipping Act of 1984 A 

progress to date in this five

Chapter VI on the section 18 st

98
3 Future Plans and Propose

For the coming year t

plans to increase its effort 

needed to comply with the 

required by section 18 of the 

Specifically the staff 

analyzing the information 

service contracts intermoda

rates These data are being 

commodities in each of the t

It is also planned that 

carriers shippers freight 

associations and ports and 

intention has been to conduc

industry groups at least 

views of the impact of 

quantitative data being colle

It is anticipated that 

under section 18c will 

fiscal year and thereafter 

of the Commission for review

The Federal Maritime C

Southern California will 

Symposium II on the Shipp

Long Beach California on F

of the conference will be 

Debate of the Issues The 

is as follows

The Shipping Act of 

regulation of internatio

It was expected that t

alter the competitive s

trades and as a co

impacts on all segments 

Now that almost four ye

of the Act it is appro

receive the views of t

been affected by the Sh
The objectives of the co

Elicit information on 

sectors of the shipping 

o Explore the impacts of 

industry on US trade a

Exchange views on curre

government regulation in 

In July 1987 the Federa

a Notice in the Federal Regi

an Advisory Committee The 

be to make continuing recomm

section 18 study The Com

representatives of interests 

1984 including representative

carriers other common c

shippers shippers associa

terminal operators and other 

It is anticipated that the 

Committee will be convened in 

1
H BUREAU OF 

The Bureau of Hearing 

counsel in formal adjudicato

adjudicatory investigations 

designated by Commission 

initiated by the Commission 

as Hearing Counsel when 

formal complaint proceedings 

the Shipping Act 1916 and 

of 1984

In addition to the f

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 furnis

occasion the Bureau may pa

or against the Commission 

advice to the Bureau o

investigations and review e

that Bureau

When appropriate th

prepares and serves notices 

statutes and regulations 

civil penalties arising from 

also acts as prosecutor in 

that may result in assessme
At the close of fiscal y

possible violations prepared b

were pending final resolutio

Counsel During fiscal ye

possible violations were r

Investigations Forty five 

settled administratively clo

proceedings As a result 

violations were pending resolu

Counsel on September 30 1987

During fiscal year 198

the compromise or assessment 

Appendix E Appendix E does n

initiatives which are discusse

At the close of fiscal y

to 15 formal proceedings 

participated in 6 new formal p

in which the Bureau was p

Accordingly the Bureau was pa

September 30 1987 The Burea

Commission sstaff concerning 

the fiscal year

During fiscal years 198

plan was developed for the 

implemented in fiscal years 

Bureau sfunctions as legal a

by providing for closer coord

offices As a consequence of 

the Bureau srole in the Coms

program it is anticipated t

increase in all areas of Burea

fiscal years

10
I BUREAU OF 

The Bureau of Investigatio

ocean common carriers non ves

freight forwarders passenger 

and ports and terminals a

Commission sresponsibility fo

commerce The Bureau perfor

compliance with the statutes a

the Commission and conducts 

violations These violation

limited to the following

Carrier and shipper ma

rebating of freight ch

misdescription or misdec

Unlawful common carrier 

domestic offshore trades

unlawful agreements among 

subject to the Commissis

Unlicensed ocean freight f

The Bureau maintairs a st

the Headquarters Office in W

Offices in the major post cit

Miami New Orleans New York 

Puerto Rico In addition to 

functions each District Offi

within its jurisdiction p

Commission and the maritime 

public and assesses indus

Commission

The Bureau focused its re

the identification and 

malpractices with a special 

routes The Bureau conducted 

inquiries of which 46 were 

Hearing Counsel for enforcemen

10
A total of 140 surveil

fiscal year 1987 includin

contracts freight forwarde

of non vesseloperating comm

In fiscal year 1987 t

Office in Houston Texas t

number of regulated person

oceangoing container traffic 

The Houston Office has ju

Texas Colorado New Mexico 

The complement of inves

year 1987 with the hiring 

Angeles New York and San F

in Miami Additional hiri

1988

As a part of the Memo

US Customs Service joint 

field for the staffs of th

and the Customs Regional O

responsibilities of each 

resulted in the sharing of 

development of important le

fiscal year 1988 for Co

utilization of Customs Auto

FMC investigations

The investigative sta

Collar Crime Training Program 

Training Center in Glync

improving the investigators 

Program provided an opp

investigative strategies and 

and investigators from 

agencies The investigativ

the two week Computer CrimeD

offered by the Center in fisc

The industry expert h

technical assistance to the 
focus of his activities was 

better target major malpract

new investigative strategies 

1987 for a oneyear term to 

otherwise unavailable exp

planning coordination and 

target malpractice program 

expert who reports to the 

of the San Francisco District 

At the beginning of fis

field investigations and su

During the year 285 new 

matters were initiated pro

scheduled for inquiry 

surveillance activities tot

pending at the end of th

summarizes the Bureau of Inv

J BUREAU OF 

The Bureau of Adminis

direct administration and co

Office of Ad

Office of Bud

Office of Per

Office of Spe

During FY 1987 the O

Bureau became responsible for 

The Director of the 

Secretary of the ATFI 

Commission delegate to the A

United States and Commis

Management Official to the 

In FY 1988 the Direc

Executive Secretary of the 

Industry Advisory Committee

Most other functions 

are reflected in the narrativ

follows

1 Office of Administrative 

a General Office Re

The Office of Admin

administers a variety of ma

principally provide administ

program operations of the C

Office of Administrative Se

Director Bureau of Adminis

The office ssupport p

procurement of administrativ

management space managemen
records services reproduc

facilities and equipment ma

The office s major functions 

necessary supplies equipme

support of the Commissios 

regulations policies proced

use and provision of these 

with the Federal Acquisition 

Property Management Regu

appropriate Federal guideline

b Office Program Obj

The program objectives o

Services are to

Execute Commission cont

any other procurement 

Government to expenditur

o Control and administer 

utilization inventory 

of property

o Develop and coo

telecommunications progra

and at all Commission 

installation and mainten

equipment and features

o Administer programs for 

environment and other sp

headquarters and field 

planning negotiating 

architectural drawings 

assigning space to an

offices

o Manage the receipt stor

all supplies forms a

support of Commission op

o Coordinate and control 

copying and graphics s

house or by outside sour

Regulate receipt distrib

Coordinate the use o

facilities at headq

maintenance security and 

10
Arrange for transportat

locations

Conduct safety insp

Commission semergency 

Manage the retention 

Commission records and

o Direct the Commission s

goal setting under the 

c Major Office Achie

During fiscal year 198

Services

Arranged for constructi

within the Offices of 

Secretary along with 

Hearing Counsel Tra

Regulation

Directed the renovation 

at the headquarters lo

all offices recarp

introduction of system f

Coordinated the reno

controlled conferencing 

location

Redesigned the telecom

Bureaus of Trade Mo

Domestic Regulation

Revised the Commissios

the availability of sp

parking permits

Improved the Com

s 

capabilities through 

features

Conducted administrative 

services provided to 

Houston New York Los A

Expanded the transport

locations of Los Angele

Modified the supply op

faster turnaround of req

instock items and forms

1
Established an offic

Commission sfield loca

Revised the Small Busin

Commission sprocuremen

procurement

small business

process

partic

d Office Prognosis

In fiscal year 1988 the 

of the initiatives begun in 

structure and staffing conce

conducted relating to the e

project assignment tracking s

a comprehensive training and 

Office personnel and 3 a

for the Office of Administrat

2 Office of Budget and Fina

a General

The Office of Budg

administers the Commission s

and is responsible for 

Commission sphysical fisca

Office is charged with interp

financial policies and pro

budget justifications for su

Office of Management and 

administers internal contro

travel

imprest

and

fund

cash management 

b Objectives

The objectives of the O
Submit annual budget 

OMB and the Congress

Execute the budget to 

properly expended

Prepare regular finan

decisions

Administer the cont

employment

Collect all fees and fo

Process payments to 

expeditiously as poss

Make certain resource

fraud waste error a

Process travel orders 

time limits

Review internal contro

ensure they conform 

develop procedures to 

Administer the Commiss

c Achievements

During fiscal year 1

Financial Management

Completed evaluation 

report for Commission 

Established new uniform 

search and duplicatio

Commission personnel 5

Collected and deposit

fines collections f

vessel certification fe

Received notification 

Management Division th

under acceptable Treas

acceleration of the 

disbursements and m

outside the Treasury

Revised internal regul

Prepared Merit Pay and 
Coordinated and prepare

estimates for the fisc

budget and the fiscal yea

Participated in OMB and C

Managed the Commission s

o Prepared cost data and p

establishment of an off

1290 the Ocean Transpo

and a formal investigatio

Participated on an Age

Accessibility

Provided management with 

positions in grades GSGM 

Participated in the tarif

Developed FERS data for 

Bank Board

Developed internal gu

employees

o Conducted an audit of 

Imprest Fund

o Completed a credit car

requested by OMB and

Completed a microfiche 

Financial Management 

Department

d Prognosis

During fiscal years 19

Budget and Financial Managem

financial control procedu

management system improve pr

initiatives leading to economy 

financial operations

3 Office of Personnel

The Office of Personnel p

management programs includin

position classification and pa

safety and health employee 

11
relations performance ap

retirement The Director of 

directly to the Directo

Significant achievements d

outlined below

a Program Developmen

The Office of Personnel 

the ramifications of legis

retirement system and con

disseminate information on 

employees and make them awar

the new system The program 

sessions special seminars 

booklets and brochures and 

backgrounders highlighting s

The Office successfully con

Open Seasons which resulted 

The Office also complet

Performance Management Syste

SES employees and Workforce 

drafted Commission Orders on 

and the Senior Executive Se

on the Performance Manageme

Administrative Grievance Sys

implementation of the Pres 

Program

b Recruitment and Pla

The Office planned 

concentrated recruitment ef

1978 This effort encompass

organizational

variety of grade

components

levels and 

Budget Director selecting o

to this effort Many posit

difficulttofill categories 

mailings of letters and annou

actions included nationwide 

1
three SES positions and the 

tentative SES selections to O

for approval The Office 

Executive Resources Board 

development program

c Employee Relations

The Office of Personnel 

the employee counseling servic

New York and Washington DC 

to the services

confidential

counseling and

provided by

voluntary

assistance

charge The Office continued 

environment of all Commissio

programs including a refresh

seminars on smoking cessatio

coping with holiday blues an

annual comprehensive health f

ensured that Counseling ser

employees contemplating retire

participate in a pre retirem

Office of Personnel contin

supervisors concerning their 

of employee conduct and perfo

of withingrade increases 

discipline problems In this 

memoranda discussing these 

responsibilities as well as 

Systems Protection Board 

counseled with respect to p

faced In seeking to resolve 

problems the Office worked 

advisors to

actions were

administered

the

ensure that e

accorded their 

the agency sgrie

publication of an agency 

1
d Position Classifica

The Office completed th

necessary to put in place 

Bureaus of Trade Monitoring a

e Performance Apprais

During the year SES 

appraisal milestones were 

employees and supervisors r

covering midyear progress r

and the preparation of new p

and issued on schedule A 

performance awards for the F

was prepared jointly by the 

of Budget and Financial Mana

f Incentive Awards

Incentive

The Office

Awards

of

Program

Personnel 

internal awards efforts to 

Month Award through articles 

development of a new sugges

the employee suggestion pr

several employees for extern

SES Rank Award and a Volunta

g Program Evaluation

The Office cooperated w

to agency assessment vi

performance appraisals and p

of documentation assisted 

standards of PMRS employee

Review Board and audited e

ensure that the information 

documented
4 Office of Special Studies

The Office of Special S

guidance for the agency si

efforts and is responsib

activities and energy and env

Office Director also served 

during fiscal year 1987

a Information Resource

The Office of Special 

planning and coordination o

efforts of the Commission 

determine additional opport

intensive operations where

Commission During the pa

surveys were conducted to d

micro computer software and 

complete upgrade of all 

accomplished A physical 

hardware and software was c

components were upgraded or 

Commercial data bases were re

in meeting the goals of th

computerized legal and legi

aided in determining financia

for licenses and supplemente

commodity tracking activities

The Office operates un

Management strategy that pro

whenever a hardware or softw

assistance is available to aid 

level technical modifications 

thorough on site testing of n

software is conducted to det

office operations can be e

significant amount of time 

technical support for the 

1
Information System cost b

system design This activi

and private sector vendors 

government information reso

agencies acquisition strat

b Management Analys

The Management Analy

internal studies to 1 a

and economy in the use and 

and 2 determine if desire

are being effectively ach

Studies is also responsib

the Office of Management an

and reporting requirements 

out other phases of the Pap

coordinating Commission c

programs such as produ

management During FY 19

created to track OMB cleara

Reduction Act This tra

offices with advance notice 

c Energy and Environm

The Office ensures C

National Environmental Pol

Policy and Conservation A

responsibilities are to 1 

to determine whether the Cos

significant impact upon e

consumption 2 issue envi

statements when appropria

Commission regulatory strate

national environmental goals 

efficiency and conservation
d Training

During fiscal year 1987 co

micro computer operations was av

employees Additional inhous

courses were developed and co

Operating Systems Word Process

and MicroComputer Operations 

of Special Studies initiated 

users tips newsletter which 

training its employees in micro 

A major training accomplis

Employment Opportunity training 

Commission smanagers and firstl

was also provided to SES candida

individual development plans an

the field offices A wide range 

training opportunities was made 

career development needs The

government interagency training 

universities and private sector 

118


N

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APP

COMMISSION PROCEEDIN

Formal Proceedings

Decisions 

Reconsiderations 

Discontinuances Dism

Not Reviewed 

Remand 

T

Special Dockets 

Informal Dockets 

Oral Arguments 

Rulemaking

Final Rules Issued 
APP

CARRIER AGREEMEN

FISCAL 

Carrier Agreements Filed In 

including modifications

Foreign and Domestic Commerc

Carrier Agreements Processin

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon Filing 

Determination of No Jurisdic

Formal Extension of Review P

Carrier Reports Submitted fo

Shippers Requests and Comp

Minutes of Meetings 

Pooling Statements 

Operating Reports 

Index of Documents 

Consultations 

Carrier Agreements on File a

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Transshipment 

Cooperative Working Agency 
APPEN

TARIFF FILING AND STA

Tariff Filings Pages

Foreign Filings 

Domestic Filings 

Terminal Filings 

Foreign Rejections 

Domestic Rejections 

Tariff Publications

Foreign On Hand 1

8

On Hand 18

Domestic On Hand 1

8

On Hand 18

Terminals On Hand 1

8

On Hand 18

Special Permission Application

Total Received Foreign 

Granted 

Denied 

Withdrawn 

Total Received Domestic 

Granted 

Denied 

Withdrawn 

Investigation and Suspension 

Domestic

Completed 

Pending 

Service Contracts

Filed 

Terminal Agreements

Total Received 

On Hand 1086 

On Hand 1087 

1
APPE

CIVIL PENALTIES COM

FISCAL Y

Ariel Maritime Group Inc e

Bud Antle Inc

Coordinated Caribbean Transpo

Dunlop Tire Corporation

Eller Company Inc

Epirotiki Lines Inc

Evergreen Marine Corp

Great Pacific Cruise Lines

Guam Freight Forwarders and C

Harrington Company Inc

Hong Kong Islands Line Americ

Kerr Steamship Co Inc

Navron Romaniam Shipping Com

Peninsula Shippers

Satin Air Freight Inc

Southbound Shippers

TDYFreight Services

Transconex Inc

Transway Inc

Travel Dynamics Inc

Note An addition

collected in con

Commission senforcem

North Atlantic Trades 

1
APP

FIELD INVESTIGATIO

Surve

Acti

Pending 1086 2

Opened FY 1987 1

Closed FY 1987 2

Pending 93087 
Appropriations

APPEN

STATEMENT OF APPROPRIATION

FOR THE FISCAL YEAR EN

Public Law 99 591 app

necessary expenses of th

including services as 

hire of passenger moto

allowances therefor as 

5902 Provided that n

available for official 

expenses 

Public Law 10071 Supp

1987 approved July 11 

civilian pay increase an

System 

Revised A

Obligations and Unobligated Ba

Net obligations for sa

fiscal year ended Septem

Statement of Receipts Depos

the Treasury for the Fiscal Ye

Publications and reprodu

Vessel Certification an

Applications 

Fines and penalties 

Total general fund receip

12
Operator

Cl

C2

C3

C4

C5

C6

C7

NCI

NC2

NC3

NC4

NC5

NC6

NC7

NC8

A

EXAMPLE OF 

US ATLANTIC COAST E

January t

North AtlanticUnited 

Conference total with

greater than 1 shares

Conference total with

less than 1 shares

CONFERENCE SHARE

Nonconference total with

greater than 1 shares

Nonconference total with

less than 1 shares

Non

NONCONFERENCE SHARE

SHARES NOT ELSEWHERE CLASSI

TOTAL FOR TRADE

Tonnage is calculated in lo

Value is calculated in thou
Carrier Survey

Characteristics of Firm

Service Contracts

Shippers Associations

Independent Action

Agreements

Intermodalism

Tariffs and Rates

Port Antitrust Immunity

Access to Cross Trades

Excepted Commodities

General

Port Survey

Characteristics of Port

Competitive Environment

Antitrust Immunity

Port Development

Container Terminals

General

AP

OUTLINE OF 
A Conference on the Shipping 

Federal Maritime Commission a

California

Place Queen Mary Long Be

Date February 1819 1988

APPE

PROGRAM FOR 

Thursday 

Session 1 FMC Findings 

Act of 1984 Fo

Results of industry surveys 

independent action antitrus

Findings thus far on the 

service and competition

Session 2 Tariffs and In

Should tariffs continue to 

enforcement of tariff prov

government Should they b

shipment instead of other c

independent action on tar

ultimately weaken or strengt

to work effectively Would 

criticism of independent ac

contracts or other tying 

immunity Should any chang

excepted commodities

Session 3 Service Contra

Are service contracts me

carriers and shippers Wha

rules andor provisions o

contracts be confidential 

carriage been slightly distu

mandatory independent actio

service contracts
APPENDIX 

Session 4 Antitrust Issue

Is antitrust immunity still 

If continued must conferenc

would a closed structure per

obtainable Are conferences 

modern shipping practices 

councils receive antitrust im

Session 5 Antitrust Issue

Terminal Operat

Is antitrust immunity needed 

operators What would be 

antitrust immunity for ports 

Friday F

Session 6 State of the 

Years After the 

of 1984

How is the Act affecting the 

are recommended How are ch

management and ownership a

operation of the industry 

rationalization or are th

sacrificed on the altar of co

Session 7 The Position 

Ports After Fou

Act

How is the Act affecting sh

What changes are recommended 

functioning meaningfully 

shipperforwarder and carrier 

Are shippers councils an an

port load centers

Session 8 The Future of L

A Reading of the 

Is regulation the wave of the 

is the state of shipping 

UNCTAD and Canada Is the n

What would be the consequence

interests in this industry an

are the chances of an inte

matters

1