FED

Fiscal Year E

TABLE OF 

LETTER OF TRANSMITTAL

MEMBERS OF THE COMMISSION

I THE COMMISSION

History

Function

Organization

II THE YEAR IN REVIEW 

Commission Decisions 

Office of the Secretary

Adjudicatory Proceedings 

Administrative Law Jud

Legislation and Litigation 

Office of the General C

Policy Planning and Intern

III SIGNIFICANT COMMISSION PR

DURING THE YEAR 

Regulatory Programs 

Agreements Processing R

Bureau of Agreements an

Bureau of Tariffs

Bureau of Hearing Couns

Bureau of Investigations

Bureau of Certification 

Administrative Activities 

APPENDICES 

A Organization Chart

B Commission Proceed

C Agreement Filings 

D Tariff Filings and 

E Civil Penalties As

Year 1983

F Field Investigation

G Statement of Appro

and Receipts for th

September 30 1983

mneat he t1nmm

aeberal Maritim

nshingtn

To the US Senate and House 

Pursuant to section 10e2

7 of 1961 and section 208 o

as amended 1 am pleased to 

report of the activities of 

for fiscal year 1983 ending 

MEMBERS OF T

Alan Green Jr

Chairman

Appointed 1981

Term Expires 1986

R Oregon

Robert Setrakian

Commissioner

Appointed 1983

Term Expires 1987

D California

James 

Comm

Appoin

Term Ex

R 

THE CO

History

The Federal Maritime Co

independent regulatory agency 

effective August 12 1961 As 

Board the Commission was charge

regulatory provisions of the S

laws of the United States 

categories regulatory a

responsibilities associated wit

efficient US Merchant Marine 

Administration now located 

Transportation The Federal 

responsibility over the regulat

United States

Function

The Federal Maritime Com

administration of varying por

statutes Chief among these ar

Intercoastal Shipping Act of 19

of 1920 and 1936 In recent 

amendments have been passed by 

that modify or expand on these b
The Commission sprincipal 

as follows

Regulation of service

US and foreignfla

other persons engaged 

Receipt and review 

regulation of rates 

carriers by water eng

Protection of US 

US shippers and 

commerce of the Un

regulations of foreig

of foreignflag carri

the commerce of the U

Regulation of rates 

and practices of US 

domestic offshore tra

Licensing of independ

Issuance of passeng

financial responsib

to pay judgments fo

repay fares for th

cruise
Investigations of 

classifications and 

flag ocean common c

freight forwarders o

domestic offshore comm

Rendering decisions i

and regulations gover

US foreign and dom

operators freight 

subject to shipping st

The Commission sprimary 

activities involve the admin

Shipping Act 1916 Section 1

carriers conferences exemptio

contained in the Sherman and 

approval of conference agreeme

reviews and evaluates all propos

do not exploit the grant of an

abuses associated with con

potentially anticompetitive act

Beyond the Commission s

regulate the activities of co

commerce of the United States t

treatment of the shipping p

conferences The Shipping A
conferences from discriminating 

practices in dealing with ship

US commerce The law also re

make their rates and practic

publicly available and that 

indicated in the tariff are 

rendered Only those rates on 

charged The Commission has lim

or to disapprove tariffs law

commerce The FMC does not pos

into the oceanborne commerce of 

Generally the Commission 

and stability in the conduct o

the large percentage of US fo

ocean liner shipping services 

under

role must

the regulatory

be to promote

purview

effi

of 

foreign commerce comensurate 

well as to protect the US shi

Organisation

The Federal Maritime C

Commissioners appointed by the 

the advice and consent of the 

than three members of the C

political party The Pre

Commissioners to serve as Cha

executive and administrative o
Six offices are directly 

Office of Administrative Law 

Counsel Office of the Secretar

International Affairs Office of 

of Equal Employment Opportunity 

to the Director of Programs 

Commission sregulatory programs 

report to the Director of Adm

graphic representation of the Cos

In fiscal year 1983 the 

authorized a total of 290 perm

appropriation of 11770 00 T

personnel are located in Washing

New York Chicago

Miami and San Juan

San Francis

Puerto Rico
THE YEA

The Federal Maritime Cos

operation proved to be an ex

rewarding in many different a

substantial progress in allev

regulation borne by the US 

same time promoting regulato

conduct of oceanborne commerce 

initiatives were pursued to im

foreign and domestic liner sh

the agency s various adminis

initiatives served to aid in th

regulatory function

Legislative Initiatives

At the end of the 97th 

session of the 98th Congres

worked diligently with the US 

to obtain legislation that w

liner shipping regulation in 

States These efforts met 

Congress when the House of Re

overwhelming vote of 350 to 

Congress however the Senate 

bill As the 98th Congress o
measure S 47 that carried 

FMC s suggested regulatory re

legislation had not been passe

at the close of the fiscal y

momentum created by this reform 

new and revised regulatory sche

place in the very near future

In January of 1983 the 

and indepth inquiry into the r

trades Subsequent to that in

appropriate committees of the US 

the regulatory regime governing 

in these trades The domestic 

port cargo movements between 

Puerto Rico Hawaii Alaska th

US island communities In ex

regulation over the level o

Commission sregulatory role 

domestic offshore commerce than 

Such regulation has historica

Commission and has not always le

the shipper or the carrier

In correspondence with the 

suggested that rate of return re

trades be eliminated collective 

the trade be prohibited and the 

the Interstate Commerce Commissio
is axiomatic that competit

constrained is a better regulato

programs The Commission indicat

government regulation must be r

of ensuring reasonable rate le

trades At the close of fiscal y

no action on the FMC s suggestio

Finally the Commission 

compliance with PL 97 35 th

1981 PL 97 35 amended sectio

1916 to allow persons who are 

shippers or consignees engaged 

commerce and persons who have b

to be licensed as independent 

Budget Act amendment also provid

forwarders may not receive com

water for services on shipments 

have a beneficial interest 

report to the Congress on its 

this amendment

During the relatively sh

enactment of this amendment th

some 1600 licensed forwarders 

shipper affiliations The Cos

of the 46 and identified 11 w

from common carriers by water o

forwarder or its affiliate h
penalty actions or other enfor

forwarders are being consider

experience with the Budget Act a

to Congress that it would no

possible violations of the co

against the extension of that am

Given the recent enactment 

PL 97 290 the Commission ac

involving the effective enforcem

The Budget Act amendment prohibit

is a shipper consignee selle

foreign countries The Export T

hand allows export trading com

provide what are essentially 

others without reference to the 

Shipping Act 1916 The proble

company were to take title to go

current law the ETC could not 

perform forwarding services for o

the Export Trading Company Act

In order to promote the f

Company Act and the expansion 

Maritime Commission Chairman Ala

Commerce Malcolm Baldridge sent 

indicating the existence of this 

that shipping legislation curr

amended accordingly The neces
into the pending regulatory refo

changes will obviate the need fo

Policy Developments

Commission activities un

Marine Act of 1920 increased d

year Significant situations 

requested in the words of 

regulations effecting shipping 

conflict with law and order to 

conditions unfavorable to ship

in any particular trade or 

commerce generally and which 

laws rules or regulations 

practices employed by owners 

vessels of a foreign country

Specifically formal Com

to investigate allegations 

governments of Venezuela and t

to shipping in the foreign 

commerce or contrary to th

States These two importan

greater detail below Ho

indications that section 19 a

important and vital function 

As unilateral actions to 

national flag basis are on 
proliferation of cargo prefere

trading partners in the develo

Commission is being forced to as

a protector of US interests i

commerce The Code of Conduc

under the auspices of the United 

Development is a manifestation 

non market cargo allocation sch

market forces in international 

UNCTAD Code becomes effective on 

expects the number of section 

increase as US carriers third

and other parties engaged in the 

and respond to adverse conditio

restrictive actions of foreign go

In September of 1983 the 

practice by longshoremen of str

holding cargo for more than one s

radius of a port The FMC asked 

the Southern District of New York 

from allowing implementation of th

to continue Citing the Comm

s 

determine the legality of the 50

1916 Shipping Act and the 1933 In

No 81 11 the Commission sought 

practice until it had concluded th

final ruling The filing papers in
from shippers and consolidato

suffering irreparable injury 

rule The Commission srequ

because the court determine

presented by both sides in 

balanced

In another policy area 

effort to promote developmen

system by the private secto

comment on this initiative in 

computer technology and the 

service information in oceanb

be sought in order to determi

for the filing storage an

could realistically be deve

Commission as well as the ne

that use this information i

domestic commerce The de

system would be subject to o

assumed that the system would 

from the Commission and op

private sector contractors a

announcement of this initiati

1984

It should be noted that 

with the President s Priv

increase public awareness 
partnerships and to remove b

effective programs that a

organizations The Commission is 

sector is uniquely able and most 

on a cost effective and market o

The Commission also ins

regulation of the port and marin

of the fiscal year This effo

Robert Setrakian Public commen

filing and approval of termin

continued antitrust immunity for 

the Commission sfuture role in m

comprehensive inquiry reflects th

continually review its regulatio

maritime industry in light of th

technological environment in whic

which the Commission must be re

complete the Commission may well 

to revise its regulation of this a

During the year the Com

progress in facilitating 

rationalization arrangements among 

USFar East Trade the Commissio

USflag operators to provide 

feeder vessel Agreement No 10459 

President Lines This arrangemen

provide lower cost rationalized s

Philippines and Taiwan

13
Given the increasing i

movements in the US foreign 

several significant actions reg

Commission has recognized and 

intermodal services During t

the standards laid down in A

intermodal

agreements

US North

year 1984

intermodal

importance

authority for s

and is considering 

AtlanticEuropean T

This large increase 

authority by co

of intermodal cargo 

United States and the pos

competitive intermodal service

import and export cargoes

Further improvements to 

intermodal authority were made 

established more reasonable s

applications by joint services 

for intermodal authority exis

to address the issues of shipp

and scope of the proposed inter

determined that the justificat

obtain section 15 authority 

services should be conside

conferences and rate agreeme

such applications during the y
15
16
transfer and a sizeable decre

have reduced agency staffing 

space reductions possible 

Commission stotal office spa

by the close of calendar ye

objective to improve workspace 

it upon itself to institute a 

secretarial and clerical f

effectively and efficiently 

operational units within th

heretofore disparate function

single office to achieve greate

utilization of available wor

taken as part of the Commisss

greater efficiency increased 

performance For example du

Chairman reduced its workspace 

Director effected a 48 red

abolished its inhouse print sh

Not only does the cluste

personnel lead to greater ope

lends itself to better utilizat

processing equipment The a

workstation clusters that a

technology

During the 1983 fiscal 

support of all his fellow C

1
internal management reorganiz

anticipating the required organ

that the maritime regulatory 

enacted the Commission felt that 

itself in order to better meet t

of it under the 1916 Shippin

modernized and more responsive 

reorganization The FMC has 

deployment of available manageri

This reorganization has als

assessment of the role and func

regulatory mission of the agenc

project it became evident early 

office clearly served no usefu

Atlantic Field Office was effect

The Commission has undertaken th

to reform the structure of its 

the efficiency of its enforcemen

field enforcement activities a

coordination and effective com

being directly addressed by th

program

In light of the Commis

reductions in the field unneces

eliminated in hopes of bringing 

line with Commission enforce

guidelines have been establishe

1
resources in line with 

priorities A system of mon

has been instituted and shoul

knowledge of field office pro

agency planning efforts Fu

were established to facilita

investigation to review t

Communication channels were c

cases are handled rapidly and d

use of Commission capabilit

documents between and among the 

Regarding improvements ma

Commission has made great s

internal procedures and in 

commercial agreements for appro

the Shipping Act 1916 Bey

deadlines this effort involved 

Board in August of 1982 The 

was established in order to se

policy questions at an early 

commercial agreements The B

s 

full year of operation has bee

likely play a major role

the anticipated Shipping Act of 

During

restructure

the

its

in Com

year the Com

existing sched

accurately reflect the true c

1
rendered to the public and the re

add new user fees where none 

finalized These updated fees a

March of this year and are desig

required by law and regulation

During the year the Com

changes to its system of filing 

the domestic and foreign commerc

the significant advances in te

burden attached to receiving th

pages filed annually the Commis

of permanent filings including 

methods The experiment if suc

domestic offshore trades in the 

1984 These changes should allo

more responsive to changing m

greater commercial flexibility b

public Taken in conjunction 

effort to promote a paperless and 

major changes in the Commissios

be expected Until now and for 

filing requirements were first i

system of filing tariffs in 

largely unchanged

2
OFFICE OF THE SECRETARY

COMMISS

The Office of the Secret

regular weekly agenda of matte

Commission and recording s

Commission on these items 

complaints involving violatio

other applicable laws issuing 

the Commission maintaining o

formal proceedings receivin

directed to Commission person

the Freedom of Information 

Privacy Acts responding to 

Commission staff maritime 

authenticating instruments a

issuing agency publications 

proceedings before the Commi

bound volumes of Commission d

also participates in the deve

the length and complexity o

evaluation of the efficiency 

structure and implementation 

shipping statutes

During fiscal year 198

published Volume 22 of the C
listing of systems of records un

procedures for filing of section 

Informal Dockets

The Informal Docket Activity 

the Secretary and is responsible 

claims filed by shippers against 

in the foreign and domestic o

States These claims must be p

Shipping Act 1916 or the Inter

which reparation of less than 50

of claims received under this 

requests for freight adjustments 

by carriers in violation of secti

1916 The Informal Docket Act

issued orders or decisions dis

claims

Informal Inquiries and Complaints

In the course of its reg

receives a wide range of inquir

segments of the maritime industr

order to respond to these info

created the Office of Informal In

the Office of Consumer Affa

resolution of complaints by actin

the shipping public and various a

2
During fiscal year 1983 a tota

for information were processed 

complaints and inquiries than d

the activities of this office 

savings and secure refunds in th

Final Decisions of the Commissi

Additionally the Office 

formal proceeding program of th

1983 the Commission heard 

proceedings and issued 17 

proceedings Thirty formal p

dismissed without decision in

review Administrative Law Judge 

Eleven Administrative Law Jud

proceedings became administrat

time for the Commission to d

proceedings were remanded to t

Judges

The Commission also c

applications and 143 informal 

carriers These procedures c

waivers of freight charges 

238998

In rulemaking proceedings 

rules and discontinued five proc

2
Significant Formal Proceedings

Docket No 83 18 Filing 

the Foreign Commerce of the Un

This effort amended exist

conferences and rate agreements 

controlled carriers lower rate

such rates are intended to mee

rate actions of member lines wh

also permits controlled carrie

agreements to initiate action 

commodities to a level at or ab

Docket Nos 82 32 and 82 3

SR 1517 and 1575 1983

These rules raised the 

assessed by the Commission a

Commission actions ie the f

declaratory orders and gen

applications requests for info

and conciliation services for

permission applications and 

certification Persons reque

will be required to pay a 

alleviating the burden on the g
Docket No 82 8

Complianc

Selfpolicing 21 SR 1395 1

The Commission proceeded a

failure to comply with the i

policing requirements of Genera

528 Two agreements subsequen

dismissed from the proceeding 

were granted an exemption from 

authority requirement so that on

could act as the head of their p

Docket Nos 82 1 and 82 10 

al v Pacific Maritime Associat

These consolidated compla

pursuant to the Maritime Labor 

Commission found that it had ju

agreement on the basis that its 

agreement resulted in the fundin

by assessments levied on an oth

Commission further found that co

indirect competitive injury resu

paid no assessments either dire

within the classes of interests p

standing to file a complaint unde

25
Docket No 8164 Midla

Independent Ocean Freight Forw

181 1983

The Commission assessed c

and ordered the surrender o

independent ocean freight forw

Docket No 81 28 Transn

Board of Commissioners of the 

1983

The Commission found that 

to establish that its dockage 

is based on the length of the 

the Port s need to discourage 

However the Commission denied 

had failed to demonstrate 

unreasonably high

Docket No 8022 Int

Pacific Services et al 22 S

The Commission found tha

that a currency conversion su

of the underlying freight ra

otherwise in violation of th

equally to allwater and int

surcharges need not be apporti

costs of each movement of carg

cargo on either a per ton or p
Docket No 7663 Filin o

and Other Persons Subiect to th

234 1983

The Commission granted 

reconsideration of the final ru

These amendments to the Commisss

15 agreements are for the purp

status and treatment of supporti

communications between Commission 

in the case of uncontested agreem

p uerto Rico Maritime Ship

mergenry Relief 21 SR 1311 

The Commission denied a requ

Commission sOrder in FMC Docket 

Trailer Marine Transport Corp 

Inc Puerto Rico Maritime Shippi

Rate Increases in the Puerto Ric

refund freight charges collected 

increase found unjust and unrea

Shipping Act 1933 as amended 

evidence of financial setbacks 

inability to pay the refunds were 

the proceeding after the refund 

sustained by the Court of Appeal

to specify the manner of payment o

27
Future Activities

During fiscal year 1984 

of the Secretary anticipate

handling requests for busines

the Freedom of Information A

Commission s decisions revie

implementing the Freedom of In

in the Sunshine Acts revision 

legislative changes and deve

wide report on formal procee

complaints

ADJUDICATORY PROCEEDINGS BEFOR

ADMINISTRATIVE LAN JUDGES

Administrative Law Judg

decisions in adjudicatory pr

complaint or after a formal 

Commission itself The Com

Judges under the direction of 

come before the Administrativ

other things the approva

adjudication of discriminatory 

subject to the 1916 Shippin

complaints under section 1b3 

license cases and domestic ra

Administrative Law Judges 

oaths and affirmations issue 
proof and receive relevant evi

them to be taken whenever the 

thereby regulate the course of 

the settlement or simplification 

parties dispose of procedural 

decisions or recommend decisio

authorized by agency rule con

Procedure Act

At the beginning of fiscal 

pending before Administrative La

cases were added The judges 

conducted hearings in 5 cases an

formal proceedings and 106 init

applications Cases otherwise 

proceedings 9 special docket 

proceedings

At the close of fiscal yea

proceedings 9 of which were i

Commission The remaining proce

filing of complaints or applicatio

shippers conferences port auth

operators trade associations or s

Y9
OFFICE OF THE GENERAL COUNSEL

LEGISLATION A

The Office of the General 

legal issues and provides it w

consideration The office re

Commission rules renders forma

pending adjudicatory matters 

orders for ratification pursuan

Litigation

The Office of the Genera

defending and enforcing Com

litigation work largely consis

in petitions for review of it

Appeals While most of these 

Court of Appeals for the Dis

litigated in the US Circuit 

and San Francisco Other 

Counsel s office consists of 

suits and assisting the Depa

actions and other prosecution

Commission or its employees 

Counsel s office in proceeding

Courts and before other govern
At the close of the 1983 

cases that were carried over 

decided or terminated either t

of the review petitions Of 

were resolved by decision or 

petitions for certiorari 1 US 

1 collections proceeding compri

work handled by the General Cos 

period

Significant cases that h

awaiting resolution are as follo

American Mail Line Ltd et a

The United States District 

order dismissing the plaintiff

contended that the defendant shi

were unreasonably high and unju

of the Shipping Act and that the 

for treble damages under the ant

set their wastepaper rates pursua

agreement Because the theory o

the viability of th

of the Shipping Act to 

the antitrust laws 

curiae brief with the District 

complaint The case is now on ap

of Appeals for the Ninth Circuit

31

threatened

section 15

lines from
RySA et al v FMC and USA 

The New York Shipping 

Commission sorder in Docket No 

Implementation by Ocean Common C

Ruff Coast Ports Possible Viol

which held that the 50 mile co

Commission sjurisdiction under 

of 1980 PL 96 325 The 

court s docket with leave to re

No 81 11

Refrigerated Express Lines 

Refrigerated Express Lin

review of certain Commission 

issuance of rules under section 

1920 The carrier alleged that 

1892

meat a decision of trade by

Corporation to designate only 

condition unfavorable to US 

the 1920 Act and the Commiss

The US Court of Appeals 

District Court decision which 

The Court of Appeals gave not

in the agency by section 19
United States and Federa

1141

International Freight Forward

The United States District 

enforcing a civil penalty of 

against defendant Dynamic Inter

Docket No 80 5 Duna D ern

Indeoend Freioh F

r

Possible Violation o Section 4

also granted the Commission sr

officer be permanently enjoined 

freight forwarding

The Boston shipping As o i

1st Cir No 82 1617

The Court of Appeals affirm

Order in Docket Nos 81 30 and 8

v New York shipping Asso i tio

requirement that container ro

longshoremen at ports where conta

been shown to violate the Ship

Labor Agreements Act of 1980

united t

and Fede l 

Containerline NV et al 83 C

The United States and the C

injunction in aid of the agencs

33
irreparable injury pending resol

bite Container Routes Implemen

1

atialeAlli128 D1E 11C ra3911 The 

Court determined that the equ

both sides appeared to be evenly 

Shipping Act Reform

During the first session 

to reform and update the regula

foreign commerce was again intr

Senate Commerce Committee favo

identical to S 1593 which wa

The bill was then referred 

which held a hearing on the 

February 22 1983 On March 1 

vote of 6433

As passed by the Sena

immunity available to agreeme

Legislation

During fiscal year 1983 th

in discussions of legislation 

Congress The Commission pro

assistance to the Congressio

Congress in their deliberations 

matters
proposes changes to procedures 

agreements The bill requires 

agreements must continue to be 

45 day effective date for a

suspended by the Commission 

agreements under current sect

including the public interes

Standards governing agreements 

confined to specifically enume

to concerted activity The b

affecting an agreement will 

agreement S 47 specifically 

conference intermodal agreemen

conferences having loyalty con

ie trade between members 

Cooperation and Development c

conferences maintains the 

requirements of the 1916 Act 

service contracts adds a 

Commission may respond to res

carriers to cross trades and pro

Office study on the deregulation 

The companion measure i

introduced on March 3 1983 

before both the House Merchant M

the House Judiciary Committee 

considered by the full House u

3
was passed by voice vote As in

similar to S 47 with several 

contains a general standard 

anticompetitive agreements mand

action on agreements proposes 

independent action applicable 

eliminates FMC regulation of an

contracts and establishes a Pre

deregulation of ocean shipping

At the time of publicatio

committee is meeting to reconc

and HR 1878

Hearings

On February 2 1983 Cha

before the Merchant Marine Subc

on Commerce Science and Transp

March Commissioner James J C

Merchant Marine Subcommittee 

Thereafter HR 1878 was re

Committee which held two days 

implications of the new legisl

Counsel C Jonathan Benner and 

Office of Policy Planning and 

A Ellsworth presented the 

Monopolies and Commercial Law S

Committee Throughout the firs

3
the Commission sstaff has 

Congress and their staffs 

legislation providing both tec

The Export Trading Company 

On October 9 1982 PL 

Act was signed into law by Pre

encourage the formation of ex

permitting financial institutio

An ETC is expected to provide a

the development of export mar

ETC may provide are freight 

Before an ETC may offer freight 

must satisfy the licensing requ

in

rules

section 44 of the Shipping 

The Commission believes 

may have a significant positive 

of the United States

In April of 1983 Chairman 

HR 2562 a bill that proposed 

common carrier practices ari

bargaining contract obligations 

Commissionheld belief that aut

the practices of common carriers 

the Commission sresponsibility 

the interests of shippers ports 

Merchant Marine Subcommittee co

3
session on September 5th Howe

to the full committee failed by 

The Commission also took in

a bill that would consolidate v

the jurisdiction of the United 

the Commerce Department into a n

on S 121 were held during th

Senate Governmental Affairs Co

further and marked up during the 

action on a companion bill in t

of publication

The Commission also follow

2337 that would reform admin

agency rulemaking and court 

Congressional action on these g

not forthcoming
POLICY PLANNING AND 

The Office of Policy Plan

created in April 1983 and is 

range of international affairs 

policy briefings and ongoing 

support the Commission in its s

function the office ensures 

anticipate future developments 

and international trade Offic

the actions of foreign governm

preference policies affectin

trades providing technical as

regulatory policy in intrag

government discussions of 

forecasting trade developments 

analyzing legislative actions 

changes in the shipping industr

international liner shipping 

research and studies to enab

regulatory responsibilities 

economic testimony in the Comms

concerning section 15 agreement

3
Policy Planning Issues

Maritime Regulatory Reform L

In fiscal year 1983 Congre

maritime regulatory reform leg

1983 The Congressional inte

clarify the antitrust immunity 

activities subject to Commi

consideration and review of agree

redefine the powers of the 

regulatory

There

particular

agency

are several provi

relevance to the C

First the House version reinst

standard section 5g of HR 

between the benefits of certain 

the costs due to a possible h

Second both the Senate and H

empower the Commission to inves

that exclude or unduly restr

vessels in the foreigntoforeig

action up to and including t

House bill also establishes a 

with the Chairman of the FMC as 

number of major issues germane 

of the Study Commission are 

following enactment of the leg

4
bill requires the FMC to repo

years after enactment on the 

international ocean commerce

Notice of Inquiry for Port 

The Commission issued its 

Review Regulation of Ports and 

September of 1983 The Notice w

the Regulatory Flexibility As 

Commission regulations periodic

Commission sconcern that its re

updated in light of the c

technological environment in wh

addition the Notice addresses t

immunity for the port industry 

Officer Commissioner Robert Set

port industry the shipping publ

these issues As a result of t

decide to initiate a proposed ru

or a portion of its regulation

terminal operations

Tariff Automation

Section 18b of the Shipp

common carrier by water in the 

conference of such carriers to 

adhere to the specified rates and 

41
the responsibility of the FMC to 

which tariffs shall be published 

At the end of the fiscal 

4500 tariffs on file New and 

at the FMC at a rate of nearly 

expected to continue to grow 

pages an automated tariff s

retrieval and analysis of ocean 

The FMC has begun an eva

possible implementation of an 

of this evaluation the O

International Affairs conducte

automating the tariff system 

A Survey of Industry View

interviews with maritime ind

tariff system could and should 

The conclusions reached 

efforts within the FMC to incr

system have prompted the Com

which tariff automation can be 

International Affairs

In an increasingly interd

of one nation often affect 

partner the Commission has be

and political events which a

liner shipping industry Fo
active in implementing carg

themselves in conference pricin

activities of liner conferences

The laws and decrees of fo

now been given the appearance 

force of the UNCTAD United 

Development Code of Conduct fo

potential of restricting the tra

certain specific cargoes to nat

of the reciprocal trading partn

are used to sanction the use of 

restrictions can limit the op

carrier offering the best serv

The Federal Maritime Commi

authority under section 19 of 

to protect US interests in its 

The cargo preference decree

used to restrict the operations 

trades The pending maritime 

empower the Commission to apply 

carriers of nations that discri

the foreigntoforeign trades 

enhance and strengthen the Coms

preserve and protect an efficien

the carriage of cargoes at comp

Throughout the year the C

advisors to a government policy 

4
coordinate US shipping policy 

the Interagency Shipping Policy 

from the Department of Transpo

Office of the US Trade Repr

Justice and Commerce The Com

in a technical capacity througho

with European and Japanese 

Consultative Shipping Group CS

to discuss problems facing int

the US and other Western nat

trades Given the entry into 

proliferation of cargo preferen

CSG and the US have been dis

open and competitive access to 

During fiscal year 198

involved in the following areas 

Restrictive Cargo Sharing 

Foreign Governments Sec

There has been a sha

agreements during the past de

into force the United States 

pressure from trading partne

conclude bilateral maritime ag

shares of their liner trade

carriers In the past severa

laws decrees and other c

implemented onerous restriction
to discriminate against carrier

limitations have in certain c

of shippers to obtain the bes

favorable rates thus adversely 

goods and export of US pr

discrimination have resulted 

conditions unfavorable to ship

Under section 19 of the Merchan

possesses great power to r

activities by foreign carriers a

The Commission has exercis

instances during fiscal year 19

discriminatory actions by forei

lines in the US liner trad

Philippines in Docket No 83 45 

58

Under Executive Order 769 

Authority MARINA was instruct

all Philippine export and impo

reserved under PD 1466 be 

carriers of the Philippines and 

shared equally PD 1466 a 

that all government sponsored 

solely by Philippineflag vess

thirdflag carriers in the US

Philippine Government sdiscrimi

section 19 action by the Commis

4
adopted unilateral measures at 

40 40 20 cargo sharing provisio

the US is not a party In 

acted on complaints by De

Coordinated Caribbean Trans

subsequently found that thes

services in the USVenezuelan 

generally were adversely affecte

reservation decrees The Comm

remedial sanctions in response 

19 of the Merchant Marine Act 

however suspended on January 

diplomatic negotiations between 

the issue

status for

basis

Venezuela represents anoth

government

The discussions r

the two USflag ca

pending

ConcordeNopal

the conclusio

agreement in 

a thirdflag 

trade complained that the 

exchange system had in effec

subject to the Venezuelan 

situation effectively prec

thirdflag vessels in the trade 

complaint and subsequent t

Concorde NOpal was also grante

subject to certain conditions 
further diplomatic negotiations 

more permanent solution to the p

The UNCTAD Code of Conduct 

The UNCTAD Code of Condu

into force on October 6 1983 

regulate the operations of 

provisions of the Code regulate 

with conference membership c

conference shipper consultations 

of disputes

The US is one of the few 

not plan to ratify the Code 

the Code will affect virtually 

the implementation of the Cod

business the Commission has c

potential for affecting US in

Code as well as its indirect a

As the UNCTAD Code becom

support among many sizeable trad

liner shipping may be greatly 

trades severely limited T

authority to help keep liner t

likely be called upon to pe

function as a protector of US 

commerce The US Interagency 

engaged in discussions regardi

4
degree of freedom in the world s

been fully advised of the Comms

liner trades

OSConsultative Shipping 

The US has held a s

Consultative Shipping Group CSG 

of the UNCTAD Code of Conduct fo

primarily composed of major Eu

which plan to ratify the Code 

to liner trades wherever possi

and the CSG have focused on gua

access for US and CSG vessels 

developing countries that are 

concern for the United States 

countries and the Codist dev

ratified the Code is that US 

eliminated from the trade due to 

developing country governments 

specific conference lines T

nations is that the US no

provisions of the Code will ent

these developing countries th

vessels in the USdeveloping c

Throughout the fiscal y

observers present during the dis

CSG In these meetings and in 

4
Interagency Shipping Policy G

discussions the Commission 

counsel regarding the author

topics under discussion

Bilateral Negotiations

Growing conflicts between 

United States Government and 

resulted in increased go

negotiations The FMC has p

Interagency Shipping Policy 

Venezuelan and Philippine Gove

involvement will increase in 

conflict is expected with v

attempt to unilaterally enforce 

US liner trades

Foreign Maritime Laws and 

The Commission continues 

foreign maritime laws regulatio

seems likely that future jurisd

and its foreign counterparts 

shippers and consignees will b

more complex international regu

of countries promulgate confli

shipping laws In maintaining 

counterpart agencies abroad t

4
anticipate areas of regulatory c

and deal with that situation at 

In particular the FMC has 

European Economic Community sP

Transport and the maritime 

important developing countries 

Nigeria

5
SIGNIFICANT COMMISSION PRO

The Commission sstatut

carried out through various bu

direct control of the Direct

largely organized by statutor

processing and analysis tarif

passenger vessel certificatio

investigations comprise the p

four bureaus within the age

several offices The entire 

administrative support from o

direction of the Director of 

the Commission underwent 

reorganization involving its 

Appendix A indicates the Coms

of fiscal year 1983

REGULAT

AGREEMENTS PROCESSING REVIEW B

In August of 1982 the C

Processing Review Board 

representatives Director of 

Director Office of Policy P
and Director Bureau of Agreeme

action was taken for the pu

processing

The principal function of th

officials representing all essen

an early stage in the review of e

the identification of any troub

areas associated with the an

agreement The Board is als

examination of the FMC s a

recommending ways to further imp

by the Commission

On January 1 1983 the 

agreement processing rules Thes

24 regarding the public filin

Commission Order 104 regarding 

machinery These procedures 

process and establish time fr

Agreements have been categor

competitive ramifications and sp

attach accordingly

The Review Board also recomm

agreement processing procedure w

lengthy written staff analysi

presentation of matters to the 

conducted in anticipation of 

processing deadlines under new 

5
demonstrated that such a pro

significantly reduce the proces

At the suggestion of the 

made in the handling time of 

which approval is anticipate

approval to the Commission at 

initially considers an agreeme

was eliminated and thus 

Commission action was greatly e

Of further significance 

Review Board impetus the Com

uniform guidelines regarding v

amount and type of justificati

clear guidelines benefit bo

Commission staff Most notabl

in the areas of intermodal au

service and independent actio

expeditiously processed under t

The following statistic

agreement processing time in t

previous one 1982 This impro

the Review Board its newly de

of Agreements and Trade Mon

framework of these procedures

In fiscal year 1983 the 

agreements handled under auth

Bureau of Agreements and Trade 
days from date of filing to 4

reduction in processing time 

average processing time on all o

the period was reduced by 39 t

This figure includes agreemen

investigation and hearing by th

perhaps is the fact that the 

bureau level for these same clas

44 to 93 days from the date of 

significant and bode well for the 

BUREAU OF AGREEMENTS AND TRADE M

The Bureau of Agreements an

for analysis and review of all a

of the Shipping Act 1916 Th

Agreements Processing Review B

achieving the expeditious proce

Commission This cooperation ha

and responsive Commission action 

striving to assess the transpor

public benefit to be accom

activities of ocean common carrie

carriers and other persons su

the bureau monitors the changin

international shipping and trade 

various mandatory conference re

5
ocean carriers and reviews se

is also charged with determ

objectives upon which Commissi

predicated are truly being 

approval of an agreement is 

changing international shippin

Commission approved section 

increasingly important function 

Processing

At the beginning of fis

applications for section 15 app

During the year 396 additio

resulting in a total of 

processing The Commission ap

15 agreements during the yea

Commission approvals were cond

to an agreement refile a mo

conditions imposed by the Com

parties fail to meet the cond

and void Conditions are impo

protect the public interest 

information necessary to mainta

activities of the parties involv

In addition to the agreem

during the year and 20 were wit

during the year on 143 miscell
petitions for specific Commiss

agreements In addition 29 fi

found not to be subject to sectio

Section 15 applications on hand 

numbered 108 representing a 

number of agreements pending at t

As indicated above the e

Processing Review Board togethe

processing rules which became ef

served to measurably improve th

procedures A vast majority of 

upon by the Commission within 9

the most complex commercial ag

within 150 days of filing G

Commission slegislative authorit

new shipping law the Commissio

necessary to accomodate a grea

which agreements become effectiv

Surveillance

Under present statutory aut

to disapprove cancel or modify 

and hearing is found to be o

interest and other significan

Commission is also authorized to 

over the activities of parties to 

ensure continued compliance wit

Commission rules

5
A new Office of Trade Mo

operating on November 1 1983 

this unit are to 1 detect 

activity beyond the scope of e

determine whether conditions in 

sufficiently so as to undermine 

approval of a specific agreemen

approval of an existing agreem

Commission decisions rules and 

self policing activity to ens

policing obligations and 6 

pursuant to General Order 18 

necessary monitoring through oth

tariffs various conference re

complaints

A particular aspect of adeq

review of reports to ensure 

authorized to act concertedly 

applicable statutory standards 

minutes of meetings filed pursu

Order 18 Shipper Requests and 

to General Order 14 Selfpoli

General Order 7 and Ad Hoc re

Commission order

In fiscal year 1983 a to

were filed with the Commission 

and Rate Agreements These min

5
of the activities of the parti

in the detection and prevention 

The Commission also reviewed 1

reports These reports are r

degree to which Conferences and 

agreements are maintaining e

promptly consider shippers 

concerning freight rates 

instituting a rulemaking proce

the annual reports covering Sh

detailed reports to a single s

Section 15 of the Shipping 

the Commission to disapprove 

finding of inadequate self po

46 CFR 528 requires that a

those between two parties c

methods and standards used by i

investigate and adjudicate bre

the membership eg rebatin

rates in the tariff and to a

The ratemaking groups that are 

General Order are required to f

reports which cover the grous

activities In fiscal year 198

with the Commission

During the year a notice 

the self policing requirements 

5
prepared The proposal was iss

fiscal year 1984 and includes 

inspection program annual au

conference or rate fixing grou

uniform self policing report 

provide the Commission with un

assess the adequacy and efficacy 

Program to Eliminate Inactive Ag

The Commission sincrease

uncovered many approved section 

and may no longer be necessary 

Bureau of Agreements embarked on 

15 agreement files approved and 

September 30 1981 The rev

determine which of the approve

bureau under delegated aut

agreements A total of 146 

terminated in the preceding 24 m

Inquiry into the Regulation of t

On September 14 1983 t

Fpcera1 gegister a Notice o

soliciting public comment on th

terminal operators under the Sh

be addressed include the fil

agreements the need for continu

5
terminal operators and the Co

s

terminal regulation It is 

instituting this proceeding to 

inappropriate regulatory burd

activities while continuing to 

interest

Types of Agreements

Marine Terminal and Shores

Marine terminals operate

entities provide the facilities 

cargo between land and sea ca

delivery of cargo to shippers an

into between terminal operators 

Shipping Act eg those invo

use of property dock or berth

performed for carriers may 

Commission under section 15 o

addition the Commission m

activities of parties to termin

During fiscal year 1983 t

152 agreements and agreement m

and provision of port and termin

The Commission is also cha

management agreements pursuant 

Act of 1980 PL 96 325 94 S

6
such agreements to the extent 

collectively bargained fringe be

uniform manhour basis regardle

of vessel or equipment utilized 

filing with the Commission D

labormanagement agreements of t

Pooling and Equal Access Ag

Commercial pooling agree

revenues among carriers In som

economy can result from the po

other resources Also these ag

requirements and other feature

efficiency Equal access agr

carrier access to cargo whose 

government of the reciprocal 

preference laws import quotas 

section 15 agreements contain 

provisions

At the end of fiscal yea

agreements three equal access 

poolingequal access agreements 

preponderance of these agreem

American trades and are jus

agreements on the basis of redu

trade energy conservation r

efficient vessel deployment Th

6
US oceanborne commerce with 

Colombia

During fiscal year 198

significant actions on poolin

Shortterm renewals were gra

southbound USPeru pooling a

10041 and 10044 However bot

without further renewals durin

year A oneyear extension was 

Coast Colombia Equal Access 

first time the Commission r

reports of operations under an 

access agreement between the t

four principal USflag op

Philippines trade No 10461 

This agreement encountered 

opposition from shipper and 

consequence the agreement was 

hearing in Docket No 83 22 

shortly after the prehearing 

proponents withdrawal of 

consideration An amendment 

WINAC Pool No 10286 2 prov

of the discretionary authority 

set down for investigation and 

Commission took this action 

whether the requested modifica

6
would in fact facilitate the 

which the pool had origina

applications to further extend t

two Japaneseflag commercial rev

Japan United States trades Nos 

outcome of the investigation in 

The parties were granted appro

their pooling accounts The 

approvability under Shipping A

before the Commission in Docket 

Space Charter Agreements

Space charter agreements a

chartering of vessel space or 

vessel operators The essentia

this type is to facilitate carr

in specific trade routes beyon

available to a carrier operati

chartering arrangements are gen

reasons 1 force majenre sp

only when circumstances beyond 

Acts of God etc prevent it 

vessels thus avoiding unneces

consignees or 2 strictly 

arrangements that are ongoing 

carriers to facilitate the r

operations and to reduce overt

6
latter category also generally 

schedules itineraries and the 

of fiscal year 1983 there were 

effect Nine of these agree

Eastern trades and an addition

not strictly a space charter p

a feeder vessel by two USfl

remaining ten agreements involv

the Caribbean the Mediterrane

East Coast of South America

In the course of the fi

several significant actions on 

agreements The Mediterranean

10051 was extended and subseq

its authority to include US 

Land Hnjin space charter in th

A new space charter arrangem

carriers in the USEast Coa

10453 was conditionally appro

Dutch and Paraguayan liner o

Uruguay Paraguay trade No 10

in the West Coast of South Ame

substantial opposition and wa

hearing in Docket No 83 47 

access agreement between natio

Bolivian trade No 10440 was p

in the trade and subsequently 

6
hearing in Docket No 83 10 

from further Commission consi

the USMorocco trade No 

during the year

Perhaps the most signifi

space charter agreements dur

extensions of four space c

combinations of six major Ja

9731 9835 and 9975 These a

in August 1983 Together 

agreements among the same ope

subject of proceedings before t

54 to determine their approva

USflag operators had protest

other things insufficiently j

serious overtonnaging in the tr

granted nendente lite approva

these agreements pending the o

condition that the proponents f

deployed in the trade at its c

During the year the Com

approval of extensions requeste

in the USKorean trade No

outcome of Docket No 83 28 

instituted initially to dete

agreements Nos 10457 and 

replaced
Conference and Ratemaking A

Conference and ratemaking 

collective discussion agreeme

freight rates and practices by 

agreements are limited to a geog

the basic distinction being that 

cast a major or dominant influe

trade whereas rate agreements 

Conference agreements are 

comparatively large numbers 

interrelationships stringent c

and limited opportunity for in

members Rate agreements on 

composed of small memberships s

organizational structures ut

ratemaking procedures and provid

individual independent action

During the fiscal year 

processing of 132 conference and 

such agreements 54 were 

disapproved and 73 were either 

At the end of the year 110 con

in effect

6
Discussion Agreements

Discussion agreements pro

conferences and other perso

jurisdiction to meet exchang

matters of industry concern 

not usually authorize the imp

of action without further spe

conclusion of fiscal year 

agreements in effect eleve

activities and three dealing w

Significant actions taken 

during the fiscal year included 

East Discussion Agreement N

expansion of authorized areas 

of the Far East Trades Self

threeyear extension of the L

Discussion and Sailing Agreeme

the NigeriaUnited States Disc

Joint Service Agreements

Joint service and consort

new and separate line or ser

independent liner operators as 

The resulting line or service 

carrier generally fixing its 

tariffs and issuing its own 

authority to operate is stric
specifically set forth in the s

its operation

At the conclusion of the 

service and consortia agreeme

virtually every major US fore

from specialized automobile car

and RoRo services

The most significant develo

fiscal year involved application

several joint services In 

established general criteria co

demand operational capability 

should address when applying t

authority Joint service int

considered and granted by the C

included those filed by the Ass

Australia Ltd Containership 

Euro Pacific No 9902 13 P

No 99252 and Johnson Scans

the Commission granted applicat

joint service No 9902 and th

No 10137

6
Trade Area Developments

Transatlantic

During much of fiscal yea

conditions and vigorous non con

to aggravate a highly compet

conferences serving the transa

overtonnaging and a strong 

disruption of cargoes moving e

Some carriers have taken 

rationalizing vessel sailings 

improve their individual po

ratemaking authority and allowi

independent action Other 

problems with a contract rate s

terminate that system Impro

vessel utilization particularly 

as economic conditions continue 

and among the trading partners 

Transpacific

Excess capacity overtonn

pacific trade routes With 

cargoes freight rates have be

levels This situation is rep

reduction in the membership of 

are experiencing substantial 

6
number of non conference ca

heretofore dominated by the 

declining membership often th

setting practices some conferen

allow members a right of indepen

US dollar has also caused ca

westbound cargoes vastly exce

situation in this trade is not 

in the near future

Africa

The American West African 

intermodal authority during fis

implemented such authority 

conferences are expected to se

within the next year

Rulemaking

Section 35 of the Shipping 

with authority to exempt for th

between persons subject to the 

such persons from any req

Intercoastal Shipping Act 1933 

will not substantially impair 

discriminatory or be detrimenta

Commission has been reviewing 

remove or modify any regulation 

7
latter category also generally 

schedules itineraries and the e

of fiscal year 1983 there were 

effect Nine of these agree

Eastern trades and an addition

not strictly a space charter p

a feeder vessel by two USfla

remaining ten agreements involve 

the Caribbean the Mediterrane

East Coast of South America

In the course of the fi

several significant actions on 

agreements The Mediterranean

10051 was extended and subsequ

its authority to include US 

LandHanjin space charter in th

A new space charter arrangem

carriers in the USEast Coa

10453 was conditionally appro

Dutch and Paraguayan liner o

Uruguay Paraguay trade No 10

in the West Coast of South Ame

substantial opposition and wa

hearing in Docket No 8347 

access agreement between natio

Bolivian trade No 10440 was 

in the trade and subsequently 

6
affected parties Toward that 

its efforts at limiting the 

agreements to those areas wh

productive

During fiscal year 1983 t

public comment took final a

Commission chose not to adopt 

as part of the Uniform Mercs

third rebuttable presumption 

freight charges on a given ship

the ocean carrier In add

proposed rule to exempt none

from the filing requirements 

The Commission is also explori

proceedings to exempt from reg

categories and clarify exist

involving certain marine termin

Other Significant Developments

Intermodalism

The development of inte

significant role in marine tr

The Commission scriteria for 

ratemaking authority as firs

African Freight Conference A

1196 1981 and JapanKorea A
Agreement No 3103 67 20 SR 

the previous year in three 

Agreements Nos 6200 20 99888 

listing the types of factual d

approval of conference intermod

clearly indicated its full s

intermodal services During fi

employed the guidelines laid do

Order to approve intermodal au

Rate Agreement the GulfMedite

ThailandPacific Freight Confer

Freight Conference the Pacific 

the Peoples Republic of ChinaUSA

Nine other intermodal amend

Seven of these involve the US 

and one covers the Atlantic G

trade The Commission is expect

after the close of fiscal year 

AustraliaNew Zealand Confers

authority was protested and is 

83 53

At the end of fiscal year 

that have authority to offer th

conference agreements and 14 ra

of 49 13 had inland authority 

overseas 8 had inland authorit

and 28 had inland authority lim

72 
US trade and commerce moving 

has reached substantial proport

will continue to increase i

technology continues to develop 

In the area of intermod

agreements such as joint ser

clarify uncertainty regarding 

intermodal authority The Co

burden on joint services to obt

intermodal rates and services w

conferences and rate agreements 

merely have to demonstrate a ne

willingness to satisfy such a n

Right of Independent Action

In order to preserve the in

while recognizing the needs of 

for competitive flexibility th

authority to exercise independ

presumptively approvable throug

and 570032 Numerous filings 

followed the Commission s pron

notably by the seven North Atla

Elimination of Dual Rate C

The Commission is aware of 

conferences to question the nee

7
of a dual rate contract sys

substantially weakened by the 

difficulties encountered by 

whether shippers are bound to t

legal right to ship F

essentially renders such cont

patronage contract systems were 

fiscal year by the following 

Westbound Freight Association 

Freight Conference the North A

the North Atlantic French Atla

Scandinavia BalticUS Nort

Conference

Increased Importance of Ho

On September 12 1983 the 

the two inbound Hong Kong confe

Conference Hong Kong No 1

Bureau No 5700 32 These am

independent action on 30 days 

requirement to a simple majo

to divulge their positions on c

consignees The two Hong Kong 

10107 and 10108 were officia

Participation in the rate ag

relative benefits of conferenc

Kong trades have recently be

7
overtonnaging and trade inst

membership a more attractive p

change in membership from 

conferences these amendments s

efforts to become greater stabi

Kong trades

Extension of the Peoples R

Eastbound Rate Agreement

Agreement No 10414 the P

originally approved October 30 

extension and was allowed to ext

cover through intermodal inte

movements in the United Sta

arrangement in the inbound PRC 

all USflag lines an oppor

and unified fashion the many o

been imposed by PRC authoriti

viable liner service will be dev

Appendix C summarizes the 

for fiscal year 1983

BUREAU OF TARIFFS

The Bureau of Tariffs p

analyzes programs and activities 

of services by common carriers 

common carriers and terminal 

7
domestic offshore commerce of 

and rejects tariff filings 

permission applications a

collaborating with the Burea

elements of the Commission as 

proceedings by the Commission 

the bureau was also responsible 

ocean freight forwarders unde

Act 1916 administration of th

the certification of owners and 

to their financial responsibi

by nonperformance of voyages or 

accordance with Public Law 89 7

Foreign Commerce

Tariff Activity

In fiscal year 1983 th

increased by 100 283 or 215 

of tariffs on file with the Co

1983 increased to 4231 a 17 

year A major cause for the 

tariffs on file is heightened 

inland intermodal cargoes

During the year the Co

place cancelled tariffs on mic

in lieu of their transfer to 
the end of fiscal year 1983 15 

were on microfiche Additional 

Appendix D

Terminal Handling Charges

Terminal handling charges 

over and above the basic transp

various port interests had obje

additional charges by some ca

Commission inquiry into the pra

In fiscal year 1983 as a 

North Atlantic Ports Associat

investigation into the applicat

It was concluded that 

terminalcontainer handling cha

rates does not violate US ship

Consolidation Rules and FAX 

The International Associ

changes made by several North 

consolidation rules and FAK r

Commission sconsideration of 

reinstated the old rules thereb

Tariffs for Bulk Commoditie

The Commission published 

decision to rescind the stay of 

7
rule adopted in Docket 80 70 

effective and implemented new 

transportation of bulk cargoes 

provides that the transportation 

and carried in containers t

intermodal equipment with th

barges moving in the foreign 

subject to the tariff filing re

Shipping Act 1916

Management ILA Rules on 

Association

Tariffs

rules

containing

on containers

the

covering virtually all water c

Gulf ports The rules set fo

will handle certain containerize

permission request the Commis

reference their tariffs to the 

less than the statutory notice 

of the implementation of thes

Docket 81 11

TimeVolume Rates and Cont

In December 1982 the Co

proceeding permitting the use o

provisions shippers are permit

volume rates for a prescribed p

7
proposals received overwhelmin

exporters who value the a

transportation costs

By July however two conf

concept of timevolume rates 

Docket 83 31 the Commission i

Volume Incentive Program The 

that a conference proposes to 

upon the total freight dollars 

conferences over a twelve mon

matter continued into fiscal yea

AroundtheClock and Elect

In Docket No 80 56 the 

receipt of permanent tariff 

electronic filing methods Pri

by telex were eliminated In 

filing the Commission has pro

to react to changing market 

addition the electronic transm

and reliable alternative to prio

Through Intermodal Service

Pursuant to a special pe

granted authority to a carrier 

through motorocean intermoda

carrier to publish and file 
80
adjustment factors has virtua

remains concerned with the ma

will continue to review propo

tariff filing requirements reg

congestion surcharges

Controlled Carrier Program

The number of controll

applications increased signific

was largely due to the in

controlled carriers in the F

Shipping Corporation and Neptun

fiscal year 255 controlle

applications were processed ve

During the first half 

permission was granted to the 

Agreement 10107 Rate Agreemen

Freight Conference to allow the 

who were controlled carriers to 

of the non controlled carrier m

instead of the usual 30 day no

by the various ratefixing grou

carriers to their memberships 

conference concern over the co

carriers in the Far East trad

rule in Docket No 83 18 t

requirements to allow conferen

8
lower rates for member line con

days notice This provisio

independent action rates of mem

on open rated commodities

On July 11 1983 Pharaon

Empresa Maritime del Estado Em

list of controlled carriers 

requirements of section 18c 

addition of these two carriers 

classified by the Commission as 

four

The Commission notified M

Corporation Berhad MISC by let

has been classified as a control

section 1 of the Shipping A

Commission of its intention to 

At the close of the fiscal ye

finally resolved

The Commission is also exa

Egyptian carrier and Flota 

Ecuadorean carrier to determine 

controlled carriers Determin

carriers should be made early in 

Elimination of Redundant Re

In fiscal year 1983 the Co

delete 46 CFR Part 534 from 

8
since it duplicated the 

transportation of green salte

536 d17 This action 

regulations in any manner 

codification of the regulation

Domestic Commerce

The Intercoastal Shipping 

18a of the Shipping Act 19

charges and rules describing th

the US domestic offshore trad

operators Unlike Commission 

the Commission is charged with 

the domestic offshore commerce 

the offshore communities of H

Samoa and the US Virgin M

Mariana Islands In order 

Commission reviews and analyz

common carriers and terminal op

Tariff Activity

The Office of Domestic T

offshore tariffs filed by 307 

filed by 320 terminal operator

domestic carrier tariff revis

revisions filed during the yea

Additional tariff activity 
AroundtheClock and Electro

As a result of a prior 

requirements permitting receipt 

including electronic tariff filing

SeaLand Service Inc filed a p

such tariff filing privileges to 

The Commission considered its 

proposed rule to allow around

filing in the domestic trades

Significant Commission Activ

US Mainland Puerto R

A proposed general rate incr

Service Inc The effective da

15 1982 The Commission th

considered the several protests 

submitted by SeaLand The 

representations of the protestant

suspension or investigation of 

GRI covered a five percent incre

Atlantic and Gulf ports and por

Islands The GRI also involved 

southbound and northbound in 

tariff SeaLand publishes join

water and watermotor commodity 

Rico and Canadian ports via E

8
subsequently postponed the eff

increase to January 1 1983

SeaLand Service Inc al

rate increase of ten percent 

1983 The increase was to ap

ports and ports in Puerto Rico 

the service between the Virgin 

were received However the 

requested that it be given ad

the materials submitted in s

Cooperation between Sea Land 

Islands resulted in a SeaLand 

general increase insofar as 

Islands In view of the lack 

the Commission that there w

economic reasons for preven

effective that portion of the 

Land sservice between the US 

in Puerto Rico became effective 

the Virgin Islands did protest 

Virgin Islands After reviewin

the Virgin Islands and Sea Lans

in question the Commission de

Sea Land sincrease to become 

The Puerto Rico Maritime 

transfer its tariffs to the 

Tariff FMCF No 3 was cancel
waterrail motorwater and wat

ports in Puerto Rico and the US 

Canada when moving via Elizabet

by the Puerto Rico Shipping 

carrier with only one domestic 

applied to ports in Puerto Ric

Islands At the fiscal year s 

Shipping Authority had a total 

FMC

OS Mainland West Coa

In the US Mainland W

Navigation Company Inc filed 

increase between US Pacific C

The Commission did not receive a

subsequently determined that the 

unjust or unreasonable rate of re

OS Mainland Alaska

Kugkaktlik Ltd a common c

Bethel Alaska and eight villag

in Alaska had petitioned the Co

tariff filing exemption from t

requirements previously granted 

requested an expansion of the ex

operations could include four a

Goodnews Bay and Platinum sou

Mekoryuk on the north The req

86
of two vessels now utilized by 

that the conditions that existe

include the additional villages 

opposed by Kuskokwim Transpo

common carrier engaged in 

commodities in direct compet

also contends that the cond

exemption was approved no lon

consider this petition early in 

Financial Analysis

The Office of Financial 

financial expertise to ensure th

transportation of cargo and o

carriers in the offshore wa

States The office also provide

to other activities within the 

Foreign Commerce

Through the Office of Fi

continued its program of syst

offered by commercial carriers 

under the request for proposal 

with this activity orders to 

certain rates were issued to tw

section 21 of the Shipping Ac

this data a determination was 

8
were not so low as to be det

United States within the meaning 

Domestic Commerce

The accumulation of dat

activities in the domestic comm

operating data contained in an

operators under General Order 

summary of cargo handling statis

providing a comparative overvi

offshore trades Finally the C

bunker fuel costs continued 

information that assists the Co

projections of fuel costs con

carriers in the domestic offshor

Other Continuing Operations

The office provided accou

the Bureau of Certification an

companies seeking to gain or 

connection with water po

certifications Similar assista

Hearing Counsel in connection w

operators and freight forwarder

what extent a violator is capab

8
BUREAU OF REARING COUNSEL

The Bureau of Hearing Coun

in formal adjudicatory dockets 

rulemaking proceedings when d

proceedings initiated by the Co

as Hearing Counsel where inter

complaint proceedings institute

Shipping Act In addition to th

bureau participates as party 

formal proceedings in order 

affecting the shipping industry 

distinguished from purely private 

parties are adequately develop

furnishes advice to the staff 

occasion the bureau participate

by or against the Commissi

enforcement reports developed b

prepare and serve claim letters 

settlement of civil penalty claim

shipping statutes and regulation

the bureau acts as prosecutor 

that may involve the assessment 

During fiscal year 1983 

adjudicated 42 malpractice cas

monetary penalties More than 

imposed against foreign firms 

listing of the civil penalties a

8
As of the close of fisca

formal proceedings pending Du

were received and 18 were co

proceedings on hand as of S

provided advice to the staff on 

fiscal year

In order that policy and 

Commission action be more 

articulated various programs 

intensified during the year to 

Bureau of Hearing Counsel as 

staff itself These endeavors 

expediting the processing of c

the Commission has been able 

realistic deterrent to the oce

greater civil penalties to the 

for violations of the shipping 

Among other things these 

more frequent meetings of vari

staff including Hearing Counse

boards Such meetings allow s

policy and legal issues final

continuity in Commission hear

Because of their clearly ben

function these programs and 

fiscal year 1984

9
BUREAU OF INVESTIGATIONS

The Bureau of Investigation

the US ocean commerce in an e

and other malpractices by car

other persons subject to the S

consists of a headquarters s

organized into five districts 

Chicago New Orleans New Yor

Puerto Rico The New Orleans 

suboffices in Miami and Los Ang

represent the Commission within 

liaison between the Commission a

shipping public and investig

statutes and regulations admin

violations can include the fo

malpractices such as illegal 

misclassification misdescriptio

shipments unlawful common car

domestic offshore trades unlaw

others unlicensed ocean fre

passenger vessel operator activ

At the beginning of the fi

investigations of all types in 

investigations initiated during 

cases on hand and scheduled 

investigations totaled 720 leav

9
of the fiscal year Append

investigative activities

In comparison to fisca

experienced a 10 or 61 case 

and a 9 or 68 case reduct

However productivity per inves

the year in light of a 12 r

investigators

During the year an Invest

was developed and established to 

from their initiation to their 

facilitates the production of m

deadlines are met and prio

connection guidelines have b

investigators to know the order 

violations for which investig

expected that these guidelines w

to ensure that the priorities re

BUREAU OF CERTIFICATION AND LICE

Financial Responsibility for Wa

During the year the Comm

vessel financial responsibil

pollution statutes The Federa

amended by the Clean Water Act o

Authorization Act and the Ou

9
Amendments of 1978 Pursuant 

authority from the Presiden

operators were required to mai

evidence of their financial ab

for cleanup costs and certain o

of oil and hazardous substances 

or unwilling to demonstrate the

are prohibited from operating i

not responsible for the setting 

enforcement of the certifica

activities related to spills 

by the Environmental Protection 

the US Coast Guard respectiv

The certification program 

cleanup of a spill without cos

intervention Ecological dama

operator must maintain pollution 

operate in US waters In the 

has much to gain by utilizing 

expediting the cleanup process 

magnify the area of damage a

operator or insurer

Pursuant to the above m

submitted and kept on file w

evidence of insurance suret

insurance that guarantee reimbur

other damaged parties up to t

9
Commission issued Certificate

Pollution for vessels which 

requirements The Commission 

Service and the US Coast Gua

requirement that such certific

subject vessels Failure of 

results in automatic detainment 

the vessel has complied with the 

During fiscal year 1983 

requests for certificates 

certificates were carried ove

7300 requests for certifica

certificates were revoked due 

the vessels At the end of th

of all types and flags carrying 

Freight Forwarders

Section 44 of the Shipping 

the Commission with authority fo

independent ocean freight fo

forwarding industry is comprise

themselves out to shippers as e

freight forwarders serve expo

ocean transportation of cargo b

the paperwork legal requireme

incidentals related to such e

receive payment for handling 

9
exporter and they also rece

carrier whose vessel was select

cargo

In 1961 the US Congre

malpractices by ocean freigh

malpractices in the freight f

Recognizing the importance of m

US businesses especially sm

expertise to do their own 

licensing and limited oversight 

necessary Section 44 seeks 

preferential rebates and 

incompetent and financially irr

from operating with impunity 

freight forwarders has inc

involvement in malpractices is 

the rule

The continued maintenanc

technical qualifications and fin

freight forwarder are currently 

licensing requirements includi

Once issued a license need no

must remain in place the amoun

of offices an ocean freight forw

Several years ago the Co

rules General Order 4 46 

licensing and operation of oce

9
the first extensive revision 

initially issued in December o

after a year and a half of exp

the Commission issued a notice 

finetune certain sections of 

sections and to lessen the bu

by proposing to delete overly bu

During fiscal year 1983 

applications for ocean freight f

the 40 applications pending fro

these applications 143 were a

the processing stage and 4

returned to the applicants On

licenses were revoked prim

forwarders failed to maintain 

section 44 of the Shipping Act

In addition to applications 

received 163 applications requ

licenses and other organiza

applications for transfers and 

carried over from the previous 

three of these requests were a

Eleven requests were administr

not wish to pursue their reques

Every few years an ons

conducted as part of the Comms

licensed ocean freight forwarde

9
the Shipping Act and the Com

s

year 187 investigative reports 

results 31 warning letters we

with minor infractions expl

infractions one formal procee

the continued fitness of a 

violations of the Commisss

involving violations of a so

referred to the Commission sB

assessment of appropriate civil 

cases were determined to requ

indicating that for the most 

Commission regulations

Other activities during th

of 636 surety bond actions inc

and the cancellation of bond

schedules filed by ocean freig

510 32hof General Order 4 

informal complaints concerning 

owed by forwarders to others a

anti rebate certifications req

pursuant to section 510 35c o

the year there were 1599 lic

representing a slight increase 

9
Passenger Vessel Certification

The Commission administers 

89777 46 USC 817 d and e 

charterers and operators of US 

vessels having 50 or more berth 

embark passengers at ports in 

requires these parties to demon

are financially able to meet st

in the event of death or injury 

and to refund deposits and fares 

of voyages or cruises

The Commission sregulation

evidence by insurance surety b

self insurance Certificates 

receipt of adequate evidence 

refund deposits or fares Ce

upon receipt of adequate evidenc

cover claims for death or injury 

These certificates must be pres

port of call Without them cle

Service until the Commission c

achieved No detainments occurr

During fiscal year 1983 

were received 20 new certifi

certificates were amended and 

were withdrawn Fourteen certi

such as withdrawal of vessels f

scheduled cruises

9
During fiscal year 1983 th

82 33 Filing and Service Fees 

the Protection of the Public 

Commission rules 46 CFR Pa

for passenger vessel certifica

based upon the cost to the Co

applications After evaluatin

proposed rule it was decided 

they became effective on March 

Certificate Performance is 

Casualty is 800 00

Pursuant to section 610 o

the Commission instituted Docke

above mentioned rules and 

modifications of the regulati

comments were received from inte

notice of Intent to Review 

Commission was unaware of any 

modifying the requirements o

proceeding was discontinued

Transfer of Functions

Pursuant to Executive O

Commission sresponsibilities 

certification for vessels was 

the US Coast Guard in the D

transfer occurred on Septembe
assumed complete responsibility 

1983 Nineteen staff positions 

During the 13 years in w

administered the program US 

400 million in cleanup costs 

Commission sadministration of 

costs were offset completely b

administration were returned to 

the program was an unqualified 

its purpose protecting US 

parties while also resultin

environment

Inasmuch as the vessel f

involves the entire portion o

industry which either totally o

in United States waters the 

telephone and telex numbers are 

Commandant 

US Coast G

2100 Second 

Washington 

Telex 2483

Telephone 

All correspondence or questions 

vessels for oil or hazardous su

directed to this Coast Guard Un

Passenger vessel certif

responsibility of the Commiss

Vessel Certification was created 

1
accommodate these functions 

was also transferred to the Bu

Bureau of Certification and L

September 27 1983

1
ADMINISTRATIVE ACTIVITIES

The Director of Admi

implementing the administrative 

established by the Chairman S

are involved in the administra

regulatory programs

The Office of Personnel 

management programs including 

training and development posit

safety and health and employee 

1983 the office developed or 

procedures relating to a wide 

programs including Occupationa

Force Adverse Action Appea

Disability or Death Incentive 

Administrative Work Week and H

Withholding WithinGrade Increas

OPM in establishing a consort

provision of employee assistanc

continued during 1983 to 

responsibilities in the areas o

awards and discipline In 

endeavored to explain the re

problems and conduct issues and 

with respect to particular em

resolve performance or conduc

1
worked closely with Commissio

employees affected by disciplin

accorded due rights

The Office of Personnel a

arrangements for the smooth tra

of Certification and Licensing 

Department of Transportation a

Executive Order To cope 

attrition in its clerical 

implemented a personnel overhi

employees did not result in 

programs During fiscal y

searches two critical ma

Director Office of Regulatory 

Office of Equal Employment 

approximately 30 positions w

recruitment efforts After hav

training funds in recent ye

provide formal training for 3

responsible for distribution 

benefits Hatch Act restrictio

blood donor program and all pe

The office of Rne ray A

within the Office of the Secre

with the National Environmental 

Policy and Conservation Act o

Commission to complete analyse
aspects of all section 15 agre

before it Where Commission 

significant impact upon energy 

the office is called upon to 

situation and when necessary 

impact statements During fisca

274 section 15 agreements and 60 

299 were categorically excluded 

while an analysis of the reaminin

significant impact It was not 

energy or environmental impact s

The Office of Management 

through the merging of the Offic

the Office of Management Evalu

provides procurement property an

communications and photocopying 

conducts internal management 

internal controls and efficienc

the use and management of agen

desired program results and o

achieved and the extent to wh

and Commission policies are rece

The office is responsible fo

and Budget clearances of reportin

imposed on the public and othe

Reduction Act of 1980 The Dire

and is charged with conducting 

investigate waste fraud and abu

10
During fiscal year 19

vulnerability assessment of the 

the Federal Managers Financia

Circular A123 with respect to 

internal audit of the Commisss

conducted jointly with the Of

audit followup program was a

involved with several other com

analysis of need for and proc

processing equipment Efforts w

by the Commission with the 

Reduction Act of 1980 and OMB s 

that Act Information and wo

provided to various bureaus and 

overall costs the agency s 

disbanded and its services re

Space management plans were als

reduced agencywide office space 

In fiscal year 1984 the o

informationautomation requirem

procurement of automated equipm

Commission s attempt to arriv

solution for the automation of 

placed on a total informati

Auditing of major program and 

internal controls will cont

previously assessed and identifie

1
The Office of Budget and 

the Commission sfinancial mana

for optimal utilization of the 

manpower resources The offic

government budgetary and finan

developing annual budget justi

Congress and the Office of Ma

also administers internal contr

During fiscal year 1983 th

in filing and service fees for 

revised to meet current costs o

also received approval from th

the electronic funds transfer s

penalties in order to hasten 

Treasury and to reduce paperwo

in the smooth transfer of the 

function to the Coast Guard by 

by the Commission for Certific

were promptly recorded and del

assisting the new function at 

matters

Appendix G summarizes 

receipts for fiscal year 1983

1
APPEN

1

1

1

1

I

1

8

i

r

c

V

C

S

JJ

1

ill

APPEN

ORGANISAT

1
APP

COMMISSION PROCEEDIN

Formal Proceedings

Decisions 

Reconsiderations 

Discontinuances Dismissa

Not Reviewed 

Remand 

T

Special Dockets 

Informal Dockets 

Oral Arguments 

Rulemakings

Final Rules Issued 

Discontinued 

T

1
APPE

AGREEMENT PILINGS AND 

Sections 14b and 15 Agreements 

including modifications

Foreign and Domestic Commerce 

Terminals 

LaborManagement 

Shippers Requests and Complain

Minutes of Meetings 

SelfPolicing of Conference and 

Pooling Statements 

Operating Reports 

Approved Agreements on pile an 

Conference 

Rate 

Joint Conference 

Pooling 

Joint Service 

Sailing 

Transshipment 

Cooperative Working Agency C

Dual Rate Contract Systems 

Terminals 

LaborManagement Approvals and 
APPR

TARIFF FILINGS AND ST

foreign Commerce

Total Number of Tariff Filings

Received 

Rejected 

On Hand 1082 

On Hand 1083 

Special Permission Applications

Granted 

Withdrawn 

Denied 

T

DQmentic Commerce

Total Number of Tariff Fili

Termin

Receive 6055 

Rejected 0 

On Hand 1082 570 

On Hand 1083 424 

Special Permission Applications

Domestic Offshore

Granted 

Withdrawn 

Denied 

Pending 

T

Investigation and Suspension Mem

Domestic Offshore

Completed 

Pending 

To

1
APP

CIVIL PENALTIES ASSESSED 

ARM 

Savir Inc 

Harrington as Agents for 

Atlanttrafik Express F

Kenneth Barnes West Coast In

Evergreen Line F 

Caribbean Container Line F 

King Ocean Services SA F 

C Itoh Co 

Intercorp Forwarders Ltd 

Mar Azul Motorship Inc F 

Quast Co Inc 

Guam Freight Forwarders Cons

Latinvan Inc 

Taijo Gyogyo F 

Rex Air Ocean Freight 

Nichiro Gyogyo Kaisha F 

Empresa Lineas Maritimas 

Argentinas ELMA F

Barlovento Line F 

Hoegh Ugland Auto Liners Inc 

Ruben Dario dba Royal Sales 

Polish Ocean Lines F 

Naviera Continental SA F NAV

1
Appendix E cont

Antillean Marine Shpg Co

Munford Inc

Harper Robinson Co

Midland Pacific

Leyden Shipping

Person Weidhorn

James J Boyle Co

Nissui Shpg Corp F

MTS Agencies Inc

Commercial Int lFwdg

Middle East Shipping Co

Diamond Shamrock Corporation

Hawaiian Distribution System

Alberto Llona dba Castle Int l

Hayakawa Fwdg Inc

Satin Air Freight Inc

Via Sea Carrier Corp Int lF

Trans Modal Inc

Air Freight Int lRG Hobelmann

Sanko SS Co Ltd F

Puerto Rico Maritime Shipping A

Cumulative Total FY 1983 

Note F indicates a foreignow

1
APP

FIELD INVESTIGATIO

Ta

Malpractices Viola

Pending

093082 182 

Opened

FY 1983 83 

Completed

FY 1983 157 

Pending

093083 108 
STATEMENT OF APPROPRIATION

FOR THE FISCAL YEAR EN

Appropriations

Continuing Resolutions PL 

For necessary expenses of th

Commission including servic

by 5 USC 3109 hire of pa

vehicles and uniforms or al

as authorized by 5 USC 59

that not to exceed 1500 s

for official reception and r

expenses

Public Law 98 63 98th Cong

July 30 1983 Supplementa

Bill to cover increased pay 

Appropriation availability

APPEN

Obligations and Unobligated Bala

Net obligations for salaries 

the fiscal year ended Septem

Unobligated balance returned 

Statement of Receipts Deposited 

Treasury for the Fiscal Year Ende

Publications and reproductio

Fees for Vessel Certificatio

Fines and penalties

Total general fund receipts 

11

This repo

Paul Vincent an

with the assistanc

Federal Mari

11