20th AN

of 

FEDERAL MARI

FISCAL YEA

SEPTEMBER 

TABLE O

I LETTER OF TRANSMITTAL 

II THE COMMISSION 

Membership 

History and Functions 

Administration 

III FISCAL YEAR 1981 IN REV

IV FOREIGN COMMERCE 

Agreements 

1 Processing o

2 Surveillance 

3 Cancellation 

4 Types of Ag

6

5 Analysis of 

Self Policin

Tariff and Rate Matte

1 Temporary T

2 Aggregate Ti

3 Intermodal R

4 Bunker Surch

5 Used Househ

Regulations 

6 Military Ra

7 Controlled C

8 Anti Rebate 

Rulemaking Proceeding

V DOMESTIC COMMERCE 

Significant Commissio

1 US Mainlan

Islands 

2 US Mainlan

3 US Mainlan

Terminal Operations 

Revision of Financial 

I
VI CERTIFICATION A

Freight Forwa

Financial Re

Passenger Ves

VII FINAL DECISIONS 

VIII COURT LITIGATION 

IX LEGISLATION 

APPENDICES

A Organizat

B Civil Pen

of the Sh

C Bureau of 

Field In

D Statistica

E Statement 

for FY 19
Office or tire Kryairman

3F

TO THE SENATE AND HOUSE OF 

In accordance with th

of Reorganization Plan No 

Merchant Marine Act 1936 

the Annual Report of the F

fiscal year 1981
Members 

Alan Green Jr 

Chairman

R Oregon

Thomas F Moakley 

Vice Chairman

D Massachusetts

James V Day 

Commissioner

R Maine

Richard J Daschbach 

Commissioner

D flew Hampshire

James J Carey

Commissioner

R Illinois

James V Day

Thomas F Moakley
History a

The Federal Maritime Commiss

regulatory agency on August 12 1

Shipping Act 1916 and subsequen

US domestic offshore and forei

under the jurisdiction of the FMC

The statutory authorities an

the following principal areas 

and agreements of common carriers 

engaged in the foreign commerce 

rejection or disapproval of tari

in the foreign commerce of the Un

fares charges classifications t

common carriers by water in the d

States 4 licensing independent 

tigation of discriminatory ra

practices in the Waterborne fore

6 issuance of certificates evi

vessel owners or charterers to 

death or to repay fares in the e

cruises 7 issuance of 

responsibiol i ty of vessel owners 

liability to the United States fo

substances and 8 rendering de
2

rules and regulations gove

terminal operators and fre

The Commission s m

enforcement of section 15 o

carrier conferences from 

order to prevent abuses 

evaluates all agreements 

Shipping Act

The functions and aut

those of the Interstat

Administration The FMC 

set rates or to disapprov

foreiyn commerce The FMC 

into the US ocean commer

The Maritime Admi

Transportation is a prom

promotes the USflag me

and has no responsibility 

shipbuilding industry T

stability and equity in th

of US foreign trade is 

in protecting the shipping 

efficiency and economy in 
Admin

There are five Commissioners 

President with the consent of t

Not more than three of the memb

party The President designates o

executive and administrative offic

The FMC has a final tot

positions with the majority 

Commission sWashington DC he

field offices located in Washing

Los Angeles New Orleans Miami a

During FY 1981 the Comm

implemented reorganization of 

Commission s new organizational 

statutory goals and objectives w

effectiveness and economy thro

The Commissioners oversee a

bureaus and offices The respon

and operations is divided among th

The Office of the 

the direct adminis

and programs Th
4

directs st

accomplishme

The Office o

on legal iss

matters und

Office review

renders form

adjudicatory 

orders for 

Finally the 

Commission in 

The Administ

decisions in 

of a compla

The Commissio

the direction 

before the 

approvability 

discriminator

to the Shipp

under sectio

cases

Adminis

administer oa

upon offers o

or cause dep
the hearing hold 

simplification of 

dispose of procedu

decisions or recom

action authorized 

Administrative Proc

At the beginn

pending before Ad

year 171 cases we

reopened and rema

judges held 36 preh

in 15 cases iss

proceedings and 8

applications

Cases otherw

proceedings 1 info

proceeding

The Office of the 

a clerk of court 

preparing the Com

receiving and pro

alleged violations 

and notices of C

official files and 

administering the 

in the Sunshine 

requests fron the 
6

industry an

decisions of 

reports pu

interested p

The Office of 

organizationa

planning c

initiatives u

as those spe

agency sresp

the US ocea

The office 

functions

1 Ser

long 

ing 

and 

bur

2 Mo

ac

long 

3 Dev

Com

incr

4 Dev

ana

Com
5 Analyzing 

policies 

industrie

6 Coordina

goverme

policy 

reform 

environm

policy

During FY 198

for numerous agre

increase requests 

Office also began 

areas such as t

the UNCTAD Code o

study of liner s

The Commission 

represent it on th

Special Task Forc

strategy visavis 

lines the Office 

monitoring a study 

the impact of ca

During the Fiscal 

development of the 

to the Commission 
8

strategies 

anticipates 

shipping

The Office o

Commission s

responsibilit

12160 which 

impact of i

consumers

The O

Commission s

Commission o

programs an

consumer per

agency polic

resolve com

concern and 

Congress con

consumer act

The Office o

to conduct in

efficiency a

Commission re

objectives a

mine if ap

policies are 
The Office h

ment and impleme

Management Informa

tion maintenance 

Other duties of t

on recordsinforma

policies and p

Commission Orders 

liaison with other 

of Commission form

participating in 

Federal Productiv

Office Director s

mission

The Office 

invested a great d

an implementation 

1980 and subseque

1981 activities in

of a Field Office 

regarding the R

Organization and 

Commission were re

ADP feasibility st

evaluating the stu

given approval fo

Schedule was obtai
10

States info

offered to v

actively pa

monitoring t

The Office of 

effective ad

system augme

autaaatic da

unit the Of

Commission s

requirements 

to the Mana

managers res

to perform 

statistical i

The prin

has been the 

Commission s

MARIS Th

for the Offic

and Freight 

systems for 

of Tariffs

During 

subsystem fo

Management d

the vessel c
of Water Pollut

subsystem to inc

developed a man

Examiner Branch in 

The Office of En

handles the requir

the National Envir

the Energy Policy 

These acts require 

the energy and en

agreeinents and doc

likely to have 

conservation or t

prepare formal im

provided by the C

function of the OE

when necessary t

impact statements

During FY 19

agreements and dock

for impact analys

were categorically 

the Commission s P

Analysis The re

analysis One hund

Findings of No Sig

are in preparation a
12

prepare energ

the year

The Bureau of 

the analysis 

section 15 o

rate contrac

ization of p

agreements 

ongoiny an

activities 

and operating 

the Bureau s 

audits agreem

whether the 

ed and cu

approval m

forecasts fu

tion with th

The Bureau o

foreign and 

monitoriny 

Bureau of A

their confo

regulations 

regulation 

processing o
The Office o

this Bureau The 

analysis of domes

the Bureau sreso

the vast preponde

contested tariff f

The transfer 

Bureau of Tariff

support in its 

particularly the 

law PL 95 48

analysis of cos

administration of 

Bureau of Hearings 

an Office of He

tions and eight f

The Office o

counsel in formal 

other proceedings 

Office attorneys 

vention is perm

instituted under 

handle prosecutor

to enforcement ca

advice on special 
14

The Offic

and directs 

shipping stat

Commission as 

resultiny from 

As noted 

located in New 

Orleans San 

Sub offices a

offices rep

geographical 

shipping indu

Washington DC 

of the shippin

the Commiss

checks of oce

informal com

vessel operato

bonds require

information 

public docum

persons

The Co

totalling 10

FY 1981 C

exceeded the 

Appendix C fo

FY 1981
At the be

investigation 

were initiated 

violations Th

for investigat

shipper malpra

classification 

ments unlawfu

domestic offsho

ocean freight 

Completed inves

pending at the 

Appendix D

The Bureau of C

sels under vario

liability for 

The Canmission 

its administrat

Pollution Contr

Authorization 

Shelf Lands Ac

responsibility 

pendent ocean fr

passenger vesse

and non performa

The Office of B

sible for opt
16

physical fisc

formulates rec

policies and pro

the Congress and 

administers syst

The Office of 

responsible for 

procedures and 

cash management 

The Office of A

physical resou

offices Some 

ing duplicatin

safety program

The Office of P

personnel mana

placement emp

classification 

opportunity
FISCAL YE

On August 12 1981 the C

its establishment as an indepe

milestone the agency was cogni

the way in which it performs it

1981 this examination resulted 

where it was possible to do s

statutory duties

One way of reducing regu

exemption authority contained i

During the year the Commiss

types of agreements from the fil

15 of the Act The types of ag

included joint cargo inspection 

Docket No 81 3 agreements 

housekeeping matters Docket 

agent s solicitation and bookin

affreiyhtLent and bills of la

water Docket No 81 16 

compilation and exchange of 

agreements covering non exclus

80 34 and leases or arrangem

foreiyn countries Docket No 8

Commission initiated a proce

interchange agreements Docket N
18

With regard to tariff 

pubished regulations exempting 

covering the transportation 

personal effects by non vess

8037 In addition the 

requirements of section 18b 

of cargo between foreign cou

ports or transported overland 

In the domestic trades 

review of the financial rep

operating in these trades As 

these requirements were prop

reports where possible A p

being analyzed

In addition to taking 

exemptions and reevaluation of 

to set precise standards by w

authority would be judged 

and GulfAustraliaNew Zeala

Intermodal Authority Italy 

Gulf and Puerto Rico Confer

Authority and Continental US 

99868 Intermodal Autho

that should be made to jus

intennodal rates and the typ

these showings
During FY 1981 the Commi

reorganization program which w

The Bureau of Investigation a

Hearings and Field Operation

offices the Office of Informa

the Secretary and the Office 

Office of Regulatory Policy an

changes was to increase the as 

current budgetary and personnel 

Despite a hiring freeze 

Commission increased its produ

392 final decisions surpassin

1980 and the 193 decisions 

Commission awarded 1983 867 

carriers which were waived or 

Shipping Act This amount r

reparations awarded during FY 

malpractice cases which resu

penalties during FY 1981 Civ

exceeded the number settled in 

In summary FY 1981 was a 

improve the efficiency and eff

both in terms of its current 

responses to proposed legislatio

agency s efforts to streamlin

personnel limits were successf
20

during the year During FY 

improve its operations within 

be preapred to make necessary 

effect
FOR

AGREEMENTS

1 Processin4

At the beginning of the 

section 15 approval on file w

additional applications were 

applications available for p

section 13 agreements during 

which were approved under deleg

of Commission approvals were 

parties refile the agreements 

Commission In such cases 

conditions the approvals wo

imposed by the Commission in 

provide infornation required t

activities of the parties

in addition to the agreem

the year and 19 were withdraw

year on 126 miscellaneous 

ultimately determined to be n

Act 1916 and various petitio

the close of the Fiscal Year N

at the start of the Fiscal ve
22

In October 1980 the 

essentially to improve and s

eliminate a substantial backlog 

that procedures needed to 

application would be pending 

procedures were implemented to 

established that agreement a

Commission no more than six m

March 1981 there were only 4 a

which had not been submitted b

In the case of these 4 except

circumstances beyond the con

prevented Commission considerat

of the sixmonth policy the Bu

without a backlog of section 15 

2 Surveillance

Once agreements are appro

to maintain adequate surveilla

This assures that the parties 

authority and at the same time 

is otherwise contrary to the 

agreements are therefore requir

all of their meetings or othe

file reports with the Comm

shippers requests and comp

agreements must file semi
activities The monitoring of 

meeting the Commission soblig

over the activities of the agre

3 Cancellation of Agreements

The Commission has estab

agreements which are either in

which bring into question the 

Agreements are constantly bein

trade intelligence and other c

correspondence is instituted 

approval should continue Dur

previously approved agreements 

4 Types of Agreements

Marine Termial and Shore

Marine terminals operate

provide the facilities and lab

land and sea carriers and fo

shippers and consignees Ag

operators and other persons s

involving the lease license o

space or for services to be 

approval of the Commission un

the Commission maintains surve

terminal agreements
24

There has been a signi

agreements relating to bulk 

facilities covered by these ag

phosphoric acid coal petrole

the level of activity experie

well be an indication not on

bond market but also of lon

bulk commodity markets Th

frequently based upon the is

3onds such bonds being gene

interest

A significant Tenninal O

Commission in FY 1981 was Ag

Marine Tenninal Conference th

Roads and the South Atlantic 

provides for inter conference 

including rates and charges 

April 16 1981 with the co

prov ions the discussion of 

sted a hearing to demon

sia 1 be approved unconditi

ch e of to FY 1981

Srvara controversial ag

by FMC regulates freight forw

domestc offshore trades were 

1981 Agreement No 10405 

Freight Forwarders Discussion 
carrier conferences as well a

pending investigation and he

taken Agreement No 10415 

common carriers or agents for 

Florida Regional Shipping Gro

from the Department of Justice 

Commission Agreement 10416 

between the Puerto Rico Maritim

Transport Inc has been pr

Islands and the Puerto Rico M

Commission review

Tne Commission is also 

number of labor management ag

Agreements Act of 1980 PL 9

that such agreements to the 

collectively bargained fringe 

uniform man hour basis regar

vessel or equipment utilized 

the Commission During FY 198

type were filed

Pooling and Equal Access 

Pooliny agreements provi

revenues by a number of car

participants to benefit from th

results from the pool ng of v

Various sailing requirements a
26

efficiency are often included 

agreements are designed to ens

access to cargo whose movemen

reciprocal trading partner thro

or other restrictions Seve

pooling and equal access provi

At the end of FY 1981 

equal access agreements an

agreements approved and in 

agreements apply to the USSo

to reduce the impact of variou

several of Anerica s tradi

conservation rationalization 

deployment accruing from vari

agreements affect the US 

Colombia and Peru The five 

pooling arrangements involve 

North Atlantic Pool No 9233 

the US AtlanticJapan Pool 

NINAC Pool No 10286 and t

10333

During FY 1981 the Com

regarding pooling and equal 

Brazilian pools and three s

agreements were extended thro

Pooling Agreement No 10028 

BrazilUS Atlantic trade 
Agreement No 10027 with Agree

on December 31 1980 Addit

involving the BrazilUS Gulf 

amendment and extension of Ba

AtlanticPeru No 10041 and 

poolingequal access agreements 

and the two Japanese pools obt

extension through August 22 19

Docket No 8045 involving 

ArgentinaUS Atlantic No 

final disposition by the Com

Also review of the operation

revealed potential improprieti

Docket No 81 39 to examine t

agreement Finally the po

southbound USChile trade No

1980 with the parties not prop

Space Charter Agreements

Space charter agreements 

space or container slots be

chartering agreements are desig

of vessel accommodation beyond 

There were twelve active space 

of FY 1981 Eight space chart

the US and the Far East T

trades between the US and t

and the Ivory Coast
28

Several space charter a

consideration during FY 1981 

fron the Ivory Coast to the 

became effective September 16 

approval to the extension of t

through August 22 1983 The 

Judge was issued in Docket N

space charters The docket 

petition to reopen the proceed

The Camnission also voted 

agreement No 10420 among fiv

trades Final action on thi

1982 Also a space charter 

USFar East Arabian Gul

supersede one of the Korean 

Docket No 80 52 This agree

Agreements Covering Inte

The development of intenn

role in marine transportation 

there were 40 conference or r

affording such rate groups the 

services with through routes a

In FY 1981 the Commis

certain conferences the aut

services at through intermodal 

JapanKorea Atlantic and Gul
which the proponent conference 

Atlantic and Gulf Coast ports th

to show that they would act

intennodal service to US inlan

Commission clearly indicated 

technology but at the sane time 

be granted such authority unless 

public interest is best served 

than leaving the development o

carriers In addition the Com

under which it would judge future 

Near the close of the Fiscal Y

authority for one rate group on 

were satisfied

It should be noted that 

intermodal authority to conferen

challenged by the Justice De

Department persuaded the DC C

decision in USA v FMC DC 

Commission sjurisdiction in th

banc review of that decision

A major change in intennod

1981 resulted fran the Intersta

in Ex Parte No 230 SubNo 5 

which deregulated traileronfla

COFC rail rates on interna

eliminated the requirement that 
30

ICC The ICC s decision has 

or reapply for intennodal r

Commission to temporarily wai

that intennodal tariffs bre

represented an effort by the 

the FMC s tariff filing requir

5 Analysis of Agreements B

The United StatesNorth 

The

Atlantic

part of

second US carrier Farrell 

Atlantic in November 1980 

September 1980

In an effort to stabiliz

tlantic conferences took ce

pecifically those that had

ndependent

commercial and ca

westbound trade for 

FY 1981 Cargoes 

action revoked

nti rebating measures

MediterraneanUS Trade

The MediterraneanUS 

arriers using many types 
trade also serve other routes s

IndiaPakistan and West Afric

continues to show signs of be

East Asian Trade

Ove rtonnag i ng rate

semi container Lash and R

conferences serving the Med

generally unbalanced in that m

are imported from the Mediterr

Intermnodal service compe

grow and appears to be a root c

FY 1981 three conferences app

authority Two applications 

justification Currently th

MediterraneanUS trades tha

pending Commission action

ins

continued to characterize th

eastbound portion of the trad

and unstable and rates have c

of lines suffered financial l

has continued to decline I

providing for rate initiative 

the Trans Pacific Freight Conf

allow as few as three conferen

for the entire conference if 

matter was pending before th
32

During the past year t

Philippines North America Con

the creation of a new conferen

contributing to this situatio

agree on an amendment to comply 

the inability to obtain inte

conference is still uncertain

Other developments in the 

bankruptcy of a carrier two m

filed for bankruptcy in early 

Container Line and Knutsen Li

East Asiatic Company A new 

Peoples Republic of China to 

September of 1981

Also during the year the 

Conference indefinite approval 

first time since early 1979 

authority in favor of the p

Kong United States trade Agree

Finally the Commission 

investigation of bloc voting in 

6 Self Policing

The Commission srevised 

judging the adequacy of confe

became effective January 1 

528 requires that all ratemak
two parties contain provision

used by independent policing au

penalize breaches of the 

conferences ratemaking groups s

Order are required to file for 

semiannual report which co

adjudicatory activities duri

preceding the respective rep

General Order 7 does provide f

on certain showings The va

self policing rules was affirm

Appeals for the DC Circuit an

denial of a petition for certio

On September 30 1981 

groups subject to the requireine

date 48 conference ratenaking 

self policing rules 34 did no

The Commission will take appro

full compliance with the requi

the Commission has established 

Order 7 exemption criteria an

such criteria
34

TARIFF 

1 Temporary Tariff Filings

On September 3 1981 th

its final order in Docket No 

response to petitions filed by 

Commission s efforts to seek 

tariff material The decisio

accepting the filing of tempo

commerce of the United Sta

effective date was stayed so 

full staff analysis and recom

petitioners subsequent to the 

in this matter Petitioners a

published contrary to the Cos

in that the Commission sNotic

the issues later relied on by 

rule It is anticipated that 

this matter in the first quart

2 Aggregate TimeVolume Rate 

During the past Fiscal Y

solicited in FY 1980 on time

that time volume rates are n

American exporters and impo

accepting time volume rates 

to formulate proposed rules w
and conferences desiring to 

guidelines have been completed 

consideration early in the next 

3 Intermodal Rates

Several changes in intenm

as a result of decisions iss

SubNo 1 In the Matter 

Through Routes Freight Forw

Carriers by Water NVO 365 

permit NVOCC sto participate 

carriers subject to ICC jur

change in policy was the fact 

Law 96 296 specifically autho

establish joint through rates 

Ex Parte No 364 SubNo 1 

of PL 96296 364 IC 

determination to prohibit NVOs

was based on its desire to pr

freight forwarders who could 

latter prohibition was reverse

ICC saw no reason to continue 

As a result of these tw

joint through rates with ICC 

into joint rates with FMC ca

both the ICC and the FMC esta

This policy shift should f
36

During FY 1981 the 

intermodal thoruyh rates Ex 

TOFCCOFC Regulation in wh

regulation TOFC and COFC movem

a continuous intermodal mov

exocean traffic within the mov

this decision affected ocean c

Commission published an interim 

porttoport divisions for thr

As a result of this change oce

through intermodal rate with t

permanent changes in its tar

intermodal movements during FY 

4 Bunker Surcharges

Bunker fuel prices ranai

steamship industry and the carr

expenses by the assessment 

instituted a study of bunker 

European trade based on a compl

trade continued to increase t

prices were relatively stable 

allegation was developed by the 

was submitted to the Commission

The staff found that con

When fuel prices actually did 

decrease by reducing their bun
bunker surcharge levels were 

freight rates It was the s

were not overstated and that a 

The Commission sstaff in

fuel oil prices and the impact 

5 Used Household Goods Tar

During this Fiscal Year 

No 8037 in which it exempt

used military household good

filing requirements of section 

2 of the Intercoastal Act 193

foreign and domestic offshore 

No 9 to the Commission s G

General Order 38 reflect th

The issue of revising 

non military household goods 

possible consideration in a f

has decided not to require 

personal effects established 

stated on a weight or per co

shipment be substantiated by 

the shipper

6 Military Rates Review

The program of systemat

carriers to the Military S
38

reviews were made during the y

completed its comprehensive ex

ination was undertaken to dete

should take with respect to its 

tary rates The promulgation o

a serious concern with the dra

Commission sGeneral Order 29 

below which rates would be cons

United States As a result of 

lessening the regulatory burde

carriage of military cargoes 

regarding military rates for 

determination as to whether th

will be made in early 1982

7 Controlled Carriers

The staff continues to m

riers under the Ocean Shipping 

most significant restrictions o

contained in PL 95 483 is the 

shall not without special perm

tive within less than 30 days 

Commission As a consequence of 

applications were received and 

Twentyone were granted five we

special permissions were proce

activity in our foreign commerce 
Only one case involving co

for hearing during FY 1981 Do

of Sections 16 Second Paragra

In addition the Commission fo

to be a controlled carrier ba

Atlantic and Gulf and US P

The Commission published a no

Register on June 29 1981

8 Anti Rebate Certification 

When the Shipping Act Am

and signed into law on June 

executive officer of every ves

the foreign commerce file w

certification under oath att

payment solicitation or rece

2 the fact that such polic

owner officer employee and 

efforts made to prevent or 

cooperation with the Commissio

or refunds The intent of t

Commission to deal realistica

which foreign governments 

investigations into illegal 

Government General Order 43 

annual filing of the above ce
40

also file a provision in each 

policy against the payment of 

On October 24 1980 in 

to file their certifications 

they should not be found in v

requirements The opening brie

Field Operations on January 8 

pending at the close of FY 198

RULEMAKING PROCEEDINGS

As part of its continuing 

reform the Commission is lim

agreements to those areas wher

This is consistent with the Cos

regulation and to limit its a

For example during the past 

action to exempt the following 

and approval requirements of 

1 Joint Cargo Inspectio

Self Policing Agreeme

2 Administrative and Ho

Agreements

3 Sales Agency Agreemen

4 Credit Infonnation Ag

A final rule to exempt certain 

requirements of General Order 
In addition the Comm

exclusive equipment interchang

filing and approval requireme

this rulemaking are being an

considering the exemption of 

agreements from its regulatory 

Earlier in the Fiscal Y

Order 17 to change its advance 

or extension of previously app

days This change was nece

needed to satisfy notice requi

agreements necessary data an

request for modification or ex

The Commission also initia

No 81 54 to modify the Unifo

General Order 19 to allow 

merchant paying the freight 

carrier
42

The Intercoastal Shipping 

the Shipping Act 1916 require 

describing the practices of 

offshore trades and terminal o

In order to carry out the 

rates and practices the staff 

such common carrier and te

incorrectly filed tariffs or r

acts upon applications for sp

rules and regulations and pre

regarding tariff filing activit

The Office of Domestic T

tariffs filed by 288 carriers 

terminal operators There we

revisions and 6000 tenainal t

SIGNIFICANT COMMISSION ACTIVITIE

1 US MainlandPuerto RicoV

In Docket No 81 10 D

Trailer

DOM

Marine Transport Corpo

and Puerto Rico Maritime Sh

Increases in the Puerto Rico and 
had before it rate increases o

January 29 1981 16 and 18 perc

27 1981 18 percent filed by Sea 

16 percent filed by TMT effectiv

increases were permitted to bec

investigation On July 20 1981 

Initial Decision holding that a

TMT had adequately established 

rate increases Determination 

increases was withheld in order 

justify its rates and allow 

reasonableness

On September 25 1981 the 

No 81 10 in which it found t

TMT were just and reasonable T

be unjust and unreasonable to 

145 percent Therefore the 

proposed increases and to im

general rate increase within t

could become effective immedi

increases had been in effec

required the carrier to refun

increase found to be not just a

also to include interest
44

2 US Mainland West Coas

Matson Navigation Caap

general rate increase effec

moving in its Pacific CoastH

except for movements of bulk 

tens of a contract contai

determined at its cleating on 

to suspend or investigate th

effective as scheduled

During the Fiscal Year 

of 2E percent and 158 pe

increased fuel costs Matson 

projecting the costs involve

published earlier in the year

3 Mainland USNorthern Ma

The Commonwealth

with the Commission

Shipping Act 1916

of the N

requesti

from the 

ments and the financial report

mined that the Commonwealth h

for such an exanption In add

involved in this trade had oth

tions to gain the relief they 

trade were notified of the Cos

and were requested to submit th

statements
TERMINAL OPERATIONS

In Docket No 79 69 Richm

Richmond Ex rt Service and

n

16 F

Violations of sections

Order 15 The Commission determ

stations are other persons c

warehouse and other terminal 

carriers by water in the commerc

subject to the Shipping Act 

container freight stations mus

17 of t

accordance with section

15

REVISION OF FINANCIAL REPORTING 

With a view towards lesse

subject to Commission

financial reporting

result

jurisdic

majo

requiremen

of this review

proposed These changes would 

Order 5 report and signific

reporting requirements A 

provide regulatory relief w

responsibilities was

publish

1981 This proposal received 

which offered several meaning

the comments received the 
46

final rule at year end whi

regulatory relief while ma

out its regulatory respons
FREIGHT FORWARDERS

Section 44 of the Shipping 

authority for the licensing and 

forwarders The ocean freight

persons who serve export shippers

their cargo by oceangoing common

SEC

CERTIFICATI

related to such exports Paymen

as fran the carriers

A Congressional finding in 

own dummy forwarding firms in 

the carriers led to the enactm

that licensing and regulation o

such rebates and insure that for

The qualifications and financi

currently assured by means of a 

surety bond which is required 

Commission The amount of the 

through which a forwarder prov

During the year the 

regulations General Order 4 46 

operation of independent ocean 

extensive revision of General O

December 1961 Commission and 
48

the rules needed updating 

international transportation 

also wished to minimize reg

statutory duties pennitted 

to accomplish these purposes 

ing interests of freight f

common carriers

There have also been 

forwarders On August 13 

Omnibus Budget Reconciliatio

included amendments to sectio

amendment to section 1 reinov

affiliations between indepen

hand and shippers consigne

the United States on the ot

intended to codify the alrea

compensation brokerage fro

compensation would amount to 

further revisions to its regu

During FY 1981 the Com

pendent ocean freight forw

applications pending from FY 

applications were approved e

147 incomplete applications w

licenses were revoked prim

maintain valid surety bonds 
On site compliance investi

Commission seffort to ensure t

provisions of the Shipping A

During the year these investigati

58 warning letters were sent 

infractions explaining how to 

fonnal proceedings were institute

suspension action was warranted 

of the Shipping Act 1916 an

referred to the Commission sBure

the assessment of appropriate civ

Other activities during t

branch offices through which 

services and the approval of 93 

the Fiscal Year there were 1506 
50

FINANCIAL RESPONSIBILITY FOR 

During the year the Com

vessel financial responsib

statutes the Federal Water 

Clean Water Act of 1977 th

and the Outer Continental Sh

to those laws and delegations 

and foreign vessel operators 

Commission evidence of the

liability for cleanup costs 

spills of oil and hazardous s

or unwilling to demonstrate 

prohibited fray operating in 

April 3 1981 marked 

administering the vessel fi

Federal Water Pollution Contr

to the Commission indicates 

the last ten years cleanup c

the US Government against 

million with substantial cla

estimated that during the la

been spent by vessel operat

spills without direct govern

extent the US Treasury ha

cleanup costs and repairing d

of spills by vessels
Pursuant to the above men

keep on file with the Commiss

surety bonds guarantees or 

reimbursement to the US Gove

the limits required by law 

Financial Responsibility Po

financial responsibility requi

cooperates with the US Custo

compliance with the requiremen

board the subject vessels Fa

results in automatic detainmen

Commission advises the involved 

complied with the law

Because vessel detainments 

seven day per week program d

telephone inquiries received fr

This joint FMC Coast Guard Cu

implemented to snake enforcemen

the vessel operating industry 

program ranges fran Alaska 

Territories to the US Virgin 

received and processed 1740 

vessels which were the subjects 

actual detainment iedetainm

time for noncompliance with the 

Commission was able to preclude 

enforcement officials that the 
52

compliance with the law eve

eg the certificates were m

for tuo late to be placed 

waters

During FY 1981 the 

certificates An additional 

over fram FY 1980 Over 6460 

and 2954 certificates were 

scrapping sinking etc A

vessels of all types and flays 
PASSENGER VESSEL FINANCIAL RESPO

The Commission is charged w

sections 2 and 3 of Public Law 

to owners and charterers of Amer

have 50 or more berth or stat

passengers at United States po

demonstrate to the Commission t

potential liabilities for dea

persons and to indemnify passe

voyages or cruises

The Commission simplement

demonstration of financial resp

bonds escrow accounts guara

Certificates of Financial Res

using one or more of those m

prescribed amounts of financial 

are not able to present such 

departure fran the United Stat

Customs Service until the Comm

achieved No detainments were n

During FY 1981 the Comm

performance certificates 10 new 

and 36 applications for amen

addition 34 certificates were 

service sold scrapped etc A

remained certified under this pro
54

Over one million person

1981 with only one major 

transporation The Commiss

obtain and file a bond in 

monies were collected from 

are available to satisfy th

against the operator Since 

has been unaware of any un

Effective February 20 

the purpose of increasing to 

bond or other coverage that 

certificates The previous 

in 1967 In FY 1981 13 crui

their amount of coverage on 

amount Two additional cruis

their coverage beyond the pre

new ceiling
SE

FINAL DECISION

During FY 1981 the Comm

proceeding and issued decisions 

one of these proceedings the C

petition for reconsideration 

discontinued or dismissed withou

to review Administrative Law 

Thirteen Administrative Law 

proceedings became administrati

the Commission to determine w

remanded to the Office of Admi

The Commission also conclu

222 informal dockets involving 

50000 In rulemaking proc

rules and discontinued three p

more significant final decisio

below

Docket No 81 22 Inte

1511 September 3 1981

The Commission promulgate

interest on certain classes of 

six month Treasury bill rate fo
56

Docket No 81 10 Sea 

port Corp Gulf Caribbean 

Shipping Authority Proposed 

and virgin Islands Trades 20 

The Commission conducted 

rate proceeding under the rece

Act 1933 utilizing recent

reasonable rate of return for 

concluded the proceeding withi

Docket No 8074 A

Westbound Freight Association 

SR 1163 June 9 1981

The Commission determine

contract which provided for ra

the affected shipper industry 

comply was contrary to the pu

Act 1916 and ordered the con

Docket No 80 63 W

Ports North Atlantic Range Po

SR 1489 August 21 1981

The Commission cancelled 

which assessed penalties and 

whenever the Conference discove

the initial assessment of lower 

applied The Commission held th
permitted the carrier to employ 

penalties from innocent consign

invalidate the use of carrier im

Docket No 80 56 

Commerce 20 SR 1217 June 3

The Commission published a 

temporary amendments to tariff

foreign commerce The Com

effectiveness of the prohibition 

Docket No 80 40 Fil

Foreign Commerce of the United S

1981

The Commission issued a fin

filing requirements to pro

justification and suspension of 

rule implemented provisions of 

concern the regulation of rates 

controlled carriers operating a

foreign commerce

Docket No 8037 Tar

Household Goods 20 SR 1223 

The Commission published 

requirements tariff material 
58

military household goods an

common carriers

Docket No 8034 

change Agreements 20 SR 

The Commission publis

equipment interchange agre

requirements of section 15 o

Docket No 80 33 

Movement of Cando Between Fo

1981

The Commission publish

requirements of section 1b 

matter covering the movement 

transshipped at US ports 

States

Docket No 8032 Exe

volving Terminal Facilities L

October 2 1980

The Commission publis

arrangements of terminal fa

the filing and approval requ

1916
Docket No 8021 Independ

0778 Crescent Navigation Inc 

The Commission determined t

forwarder to assist a shipper i

dual rate contracts violates vario

the Shipping Act 1916 and 

violations

Docket No 8013 

Forwarders 20 SR 1227 July 

The Commission published 

licensing of independent ocean f

comprehensive revision of the 

changes included separate licensi

amounts elimination of the pay 

fees The Cwmmissimi subsequent

portions of the rules coverin

forwarders and the prohibition 

charitable organizations and 

consideration

Docket No 806 Specific 

Canpany in the PhilippinesUS 

Australia Trade 20 SR 460 1

The Commission disapproved 

furniture and beer as being unj
60

found to have significantly 

these caimodities due in p

Docket No 79 74 

Agreement No 3103 67 20 

An amendment to a confe

of interrnodal ratemakiny a

serve the Far East from US 

demonstrate that they would 

intendodal service to US 

were unable to establish tha

canpetition fran US Pacifi

the proponents performed bot

Gulf Coast ports and intenn

Docket Nos 73 15 78 1

Inc v Maryland Port Admin

The Commission found th

Administration unlawful in 

for its own negligence The 

Docket No 77 19 Co

Agreement No 10235 20 SR 

An agreement among 39 

in the New York City area 

ocean carriers to form a 
perform freight consolidation an

was disapproved The Commission 

that this joint venture was requ

important public benefit or valid 
62

COURT LITIGA

The General Counsel s 

enforcing Commission orders 

outside litigation work co

appeals of its orders in 

appeals are brought in the 

Columbia appeals have been 

New Orleans and San Francis

Counsel s office consists o

and assisting the Departinen

other prosecutions in the US 

employees are also represe

proceedings occasionally bro

government agencies

At the close of FY 1

carried over or filed during 

through settlement or by wit

cases in District Court ha

Two Supreme Court cases two 

comprised the balance of t

Counsel soffice during this 

Some of the more signi

pending resolution are listed 
US CO

Council of North Atlantic Shi

Association v FMC USA DC C

the FMC s order in Docket Nos 

the tariff regulations of certa

Rico trade requiring stuffing 

shoremen sAssociation labor of 

to points within 50 miles of m

September 30 1981 end was 

end of FY 1981

Dart Containerline Co v FMC 

affirmed the Commission s deci

Dart s practice of absorbing ra

between Wilmington North Caro

and the NorfolkHampton Roads a

and 17 of the Shipping Act 1916

Puerto Rico Maritime Shipping Au

Cir 1981 affinned an ICC or

exclusive jurisdiction over jo

Rico trade The FMC had interven

to exclusive ICC jurisdiction ov
64

Trans Pacific Freight Conferen

No 78 2172 and Sea Land S

involved a challenge by sever

sion revised self policing 

September 21 1978 The FMs 

US Court of Appeals for the 

Supreae Court denied petitions 

USA v FMC DC Cir No 79 1

Division of the Department of 

FMC s authority to approve s

which permit them to establis

connection with inland carrie

Commission Although the Cou

to approve such intennodal ag

en this issue This matter is 

Totem Ocean Trailer Express 

involves a challenge to an 

jurisdiction over any po

transportation between points 

in the States of Alaska cr 

fran economic regulation by 

case was argued on August 19 

of FY 1981
American Trucking Associations 

81 4045 Board of Commissioners 

Cir No 81 4080 involved a c

Interstate Commerce Commission 

deregulating rates coverin

containeronflatcar COFC tra

movements participated in by F

Memorandum amicus curiae with 

setting forth its position that 

rules affecting shipping in t

19 Merchant Marine Act 1920 

action with respect to appro

implemented The FMC did not 

been withheld On September 

affirming the ICC s rules with 

reach the question of the nec

since it found there was substa

section 19

Continental Forwarding Inc v 

Commission DC Cir No 8

Commission s decision to deny 

application of Continental A

regulations which provide for 

forwarders that fail to file 

required by the Commission 

1981 and the Commission sbrief 
66

Refrigerated Express Lines v 

801436 involves a challeng

declined to find that Refrig

Australian eat trade by the 

created conditions unfavorab

aris ing out of or resuing 

under section 19 of 

Court of Appeals for the DC 

jurisdiction under the Hobbs 

under the Merchant Marine Ac

appeal in the DC Circuit a 

order was filed in the US D

Refigerated Express Lines v F

No 81 1892 Plaintiff also 

Commission sorder

SeaLand Service Inc v FMC 

of a Commission order approvin

section 15 of the Shipping 

restructured and modified in 

held that the Canmission sac

to the agreements by denying 

upon the modifications imposed 

Commission sorder and remande

proceedings
In Federal Maritime Comnission 

9th Cir No 81 4325 and Intern

Ltd et al 9th Cir No 81 42

national Paper Co seek revers

enforcement of subpoenas issue

Commission Briefing of the c

oral argument will be scheduled 

Ship s Overseas Services Inc 

involves a challenge to the FMs 

that Ship s Overseas Services 

common carrier by water sub

reparation to a shipper

NON ADJU

As a result of the Nove

transfer of certain work func

sion civil penalty claim p

Counsel s office to the Bu

However outstanding claims tha

were retained for dispsition 

claims together with those tha

was transferred produced a pe

1981 Such settled claims inv

foreign and three American fl

addition the Commission als
68

totalling 102 000 with c

of the shipping statutes T

United States v Paper Fibres 

additional 100 0 in civil p

company officers who receive
P

LEG

The opening of the 97th Co

changes to the two congressio

authority over the Commission 

agenda The House Merchant Marin

by Representative John Murphy 

Honorable Halter B Jones Rep

as the Committee s Ranking Rep

holds that position Congres

minority seat on the Subcommittee 

the direction of the Honorable M

of the Subconmittee on Coast 

Representative Gerry Studds

In the Senate Senator Bob 

Senate Committee on Commerce Sc

Gorton is the new chairman of th

former chairman Senator Daniel 

ranking minority member
70

Maritime Legislation Shippi

Shortly after the open

again introduced his Ocean S

from a few technical changes 

passed by the Senate during 

introduced a comprehensive 

proposal S 1593 was intro

the Shipping Act 1916 as it 

continues the requirement fo

deletes the public interest 

statutory grant of antit

activities including a

transportation closed con

councils Time limits are p

agreements Under the bil

Commission approval Tarif

licensing of freight forwar

applicable to both freight fo

controlled carriers are in

maritime labor agreements s

The Commission sassessment 

bill but the Section 21 info

Gorton s bill also contains 

represent itself in court

Soon after S 1593 wa

Biaggi introduced his ship

measure HR 4374 proposes 
specifically to sections 1 15 44 

the Senate bill the House bill a

it also contains a proviso that 

of at least one US flag carrier 

actions with respect to agreem

shippers councils Freight forw

and forwarders and NVOCC s are req

Freight Forwarder Legislation

On August 13 1981 Congre

Shipping Act 1916 to eliminate 

freight forwarder s having a cor

the same time the amendment p

shipper connected it may not 

from a carrier with respect to 

beneficial interest This change 

Budget Reconciliation measure PL 

31 1983 Six months prior to t

to Congress on the effect of t

problems that may have resulted

Other Maritime Legislation

Earlier this session Congres

that would outlaw certain rest

cargo The bill HR 2042 add

from the International Longshores
72

commonly referred to as 

scheduled on this legislatio

Both the House and Se

encourage the formation of e

S 734 passed the Senate 

similar proposals

Hearings

In September of 1981 

Subcanmittee on Merchant 

Senator Gorton sbill S 1

behalf of the Commission h

letter detailing technical 

legislation

Earlier this session 

the House to voice the vie

Subcommittee sApril hearin

Kanuk also appeared before th

hearings on three proposals 

addressed the issue of cargo 

Regulatory Reform Legislation

Both the House and the 

refonn the regulatory proce

the subject of extensive 

Administrative Law and Go

Representative Danielson DC
was reported to the full Judiciary 

746 includes in its provisions a th

allow Congress to veto agency ru

presumption by the courts that a

valid the so called Bumpers hnend

of proposed rules which would i

analysis

Senator Laxalt of Nevada is 

regulatory reform proposal S 108

Regulatory Reform which Senator L

tration Subcennittee chaired by S

bill It was amended and reported 

reported the bill in August 

Affairs chaired by Senator Roth 

reported the measure in September 

late this year or early in Janua

visions of the bill are

a requirement to eval

tradeoffs of major ru

are cost effective

language similar to t

alter the presumption ac

review

language that clarifie

with respect to OMB over
74

a requirement 

determine if the

A requirement 

regulatory actio

In sum during its 

intense interest in re

Committees have indicated 

port development cargo di
N

f

W

0

b

0a

f

N

f

0

ou

03
76

C

FOR VIOLAT

COMPANY 

lnterPacific 

Johnson Scanstar 

Waterman 

Pacific Coast European

Conference 

Twin Fashions 

Garren International 

C Products 

Kung s Trading 

Farrel Lines 

American Export Lines 

PHS Van Qameren 

Victor Handal 

Royal Hawaiian Cruises 

Baltic Shipping 

Bank and Savill Lines 

Transytur Line 

Wine Imports 

PJ Rhodes 

Waterman 

Lloyd Brasilerio 
APP

co

COMPANY 

PO Strath 

Shipco 

Port of Seattle 

Gorthon Lines 

FESCO 

Rafael M Montejo 

Common Market Forwarders 

Trailer Marine Transport 

Hapag Lloyd AG 

United Forwarders Service 

Gilliam A Marshall 

Interford Corp 

Moran International 

Transnuclear 

RN Forwarding 

Pro Service Forwarding 

Barber Blue Sea 

Pentagon Freight Service 

Imperial Toy Corp 

Dumont Shipping Co 

International Global Inc 

Capitol Transportation Inc 

KAB Inc 

Meston and Brings 
78

COMPANY 

San Lorenzo 

Panama Container 

Behring Shipping 

Totem Ocean Trailer Expres

Corrigan Moving Storage 

Columbus Line 

Jantzen International 

Djakarta Lloyd PT 

Kyokuyo Co 

Gateway Express 

Asia N Ohallorans 

ABC Freight Consolidato

Constellation Line 

Alltransport Inc 

Marina Shipping Co 

Sylvan Shipping Co 

Suarez Shipping Services 

William H Muller 

Prudential Line 

James J Gallegos 

T
APP

BUREAU OF HEARING

FIELD IN

F

INVESTIGATIONS TOTAL MALPRACT

Pending

09 0380 787 385 

Opened FY 1981 898 254 

Coiapl a tad

FY 1981 968 350 

Pending

09 0381 717 289 
SO

S

Sections 14b and 15 A

including modifica

Foreign and Domestic 

Teniinals 

Labor Management 

Reports Review

Shippers Requests an

Minutes of Meetings 

Self Policing of Conf

Pooling Statements 

Operating Reports 
A

c

Approved Agreements on File as 

Conference 

Rate 

Joint Conference 

Pooling 

Joint Service 

Sailing 

Transshipment 

Cooperative Working Agency and 

Dual Rate Contract Systems 

Tenninals 

Labor Management Approvals and E

Tariff Filings Foreign

Total Number of Tariff Filings R

Total Number of Tariff Filings R

Total Humber of Tariffs on Hand 

Total lumber of Tariffs on Hand 

Special Permission Applications 

During Fiscal Year 1980

Granted 115

Denied 26

Withdrawn 7
82

TARIFF FILINGS Dome

Tariffs on File as of 

Domestic O

Terminals 

Tariff Pages Filed D

Domestic O

Terminals

Rejected Pages

Domestic O

Special Permission A

Domestic O

Grant

Denie

Withd

Pendi

Investigation and Su

Domestic O

Comp

Pendi
APPROPRIATION

APPEND

STATEMENT OF APPROPRIATIO

FISCAL YEAR ENDED 

Continuing Resolutions PL 96 536 and 9

of the Federal Maritime Commission inc

by Federal Maritime Commission includ

5 USC 3109 hire of passenger moto

allowances therefore as authorized by 

that not to exceed 1500 shall be av

and representation expenses 

Public Law 97 12 97th Congress approve

Supplemental Approrpiation and Rescissi

cover increased pay cost 

Appropriation availability 

OBLIGATIONS AND UNOBLIGATED BALANCE

Net obligations for salaries and expenses 

September 30 1981 

Unobligated balance withdrawn by Treasu

STATEMENT OF RECEIPTS DEPOSITED WITH TH

TREASURY FOR THE FISCAL YEAR ENDED SEPT

Publications and reproductions 

Water Pollution application and certific

Fines and penalties 

Miscellaneous 

Total general fund receipts 

1 Receipts do not agree with amounts r

11 S Government Pr nt ng 0l tt I92 10279