FEDERAL MARITIME COMMISSION 

INITIAL DRAFT STRATEGIC PLAN 

FY 2018-2022

To be submitted to the Office of Management and Budget

November 2017 

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Table of Contents

Message from the Acting Chairman...................................................................................... ii

Mission .................................................................................................................................. iii

About the Federal Maritime Commission.............................................................................1

Strategic Plan Overview.........................................................................................................6

FMC Strategic Plan Fiscal Years 2018- 2022..........................................................................8

Strategic Goal 1 - Maintain a competitive and reliable international ocean 

transportation supply system ..........................................................................................8

Objective 1.1: Ensure that actions under filed agreements do not result in 

unreasonable increases in transportation costs and/or unreasonable decreases in 

transportation services...................................................................................................9

Strategic Goal 2 – Protect the public from unlawful, unfair, and deceptive ocean 

transportation practices .................................................................................................13

Objective 2.1: Identify and take action to end unlawful, unfair, and deceptive 

practices........................................................................................................................14

Objective 2.2: Prevent public harm through licensing and financial responsibility 

requirements. ...............................................................................................................16

Objective 2.3: Enhance public awareness of agency resources, remedies and 

regulatory requirements through education and outreach.........................................17

Objective 2.4: Impartially and timely resolve international shipping disputes through 

alternative dispute resolution and adjudication. .........................................................19

Administrative Strategies in Support of Agency Objectives......................................21

Program Evaluation........................................................................................................25

Appendix A: Performance Measures by Strategic Goals................................................26

Appendix B: Organizational Chart....................................................................................27

Appendix C: Major Management Priorities and Challenges: Factors Affecting the 

Achievement of Goals.......................................................................................................28
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Message from the Acting Chairman

The Federal Maritime Commission (FMC or Commission) is pleased to issue its Initial Draft

Strategic Plan for fiscal years (FY) 2018-2022. The FMC’s work to maintain competition 

and integrity throughout the Nation’s ocean transportation supply chain is vital to 

America’s economy and job growth. The international ocean transportation system is 

experiencing significant changes, including consolidation of vessel-operating common 

carriers as well as further cost-saving efforts through the increased use of carrier Alliances 

to create industry synergies. The Commission’s efforts in facilitating commerce and 

protecting U.S. shippers will continue to be critical in the upcoming years. 

Our Plan provides the framework to address current and anticipated challenges in the 

ocean transportation industry over the next five years. It continues to calibrate 

performance measures to ensure the Commission is meeting its statutory mission and the 

needs of a rapidly changing ocean shipping industry. It is intended to be flexible and 

adaptable as the shipping industry continue to evolve, while providing clear and 

measurable targets.

This Initial Draft Strategic Plan builds on the success of our prior Strategic Plan, which 

covered FY 2014-2018. The FMC’s two strategic goals, as well as a section on the 

Administrative functions, will guide our efforts and ensure that the Commission is an 

efficient and effective steward of the public’s interest.

The Commission’s specialized and professional staff are dedicated to executing our 

Strategic Plan to achieve results for the American people. My colleagues and I look 

forward to the work ahead as we continue to fulfill our important mandate. 

Michael A. Khouri

Acting Chairman

Federal Maritime Commission

 
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Competition and Integrity for

America’s Ocean Supply Chain

 Mission

Ensure a competitive and reliable international ocean 

transportation supply system that supports the U.S. 

economy and protects the public from unfair and 

deceptive practices.

Fulfilling this mission involves achieving two primary goals:

1. Maintain a competitive and reliable international ocean 

transportation supply system.

2. Protect the public from unlawful, unfair, and deceptive practices.
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About the Federal Maritime Commission

History and Statutory Authority

The Federal Maritime Commission is an independent agency charged with regulating liner 

shipping in the U.S.-international trades. From its creation through a statutory 

reorganization in 1961, the FMC has worked to fulfill its mission to ensure a competitive 

and reliable international ocean transportation supply system that supports the U.S. 

economy and job growth; and protects the public from unlawful, unfair, and deceptive 

practices. While the specifics of U.S. maritime policy and legislation have changed 

markedly during the last few decades, the FMC’s mission and dual strategic goals remain 

significantly stable and the focus of today’s regulatory efforts.

The passage of the Shipping Act of 1984 (Shipping Act) brought about major change in the 

regulatory regime applicable to shipping companies operating in the U.S.-foreign 

oceanborne commerce. The subsequent passage of the Ocean Shipping Reform Act of 

1998 (OSRA), with its deregulatory amendments and modifications to the Shipping Act, 

further signaled a significant shift in shipping regulation to more market-oriented 

solutions to industry challenges.

The Commission will achieve its mission by ensuring that the fundamental dynamics of a 

free, open, and competitive ocean transportation market drive economic outcomes. The 

Commission is committed to faithfully administering the Shipping Act while employing a 

minimum of government intervention and regulatory costs, and by placing a greater 

reliance on the marketplace. Congress assigned these responsibilities to the FMC in the 

following laws now codified at 46 U.S.C. §§ 40101-44106:

• The Shipping Act of 1984, as amended by the Ocean Shipping Reform Act of 1998;

• The Foreign Shipping Practices Act of 1988 (FSPA);

• Section 19 of the Merchant Marine Act, 1920 (1920 Act); and

• Sections 2 and 3 of Pub. L. No. 89-777, 80 Stat. 1350.
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Regulatory Responsibilities

The Commission’s principal regulatory responsibilities include:

• Reviewing and monitoring 

agreements among vessel-operating 

common carriers (VOCCs), and 

among VOCCs and marine terminal 

operators (MTOs) serving the U.S. 

foreign oceanborne trades to ensure 

that they do not cause substantial 

increases in transportation costs or 

decreases in transportation services.

• Maintaining and reviewing 

confidentially filed service contracts 

and non-vessel-operating common 

carrier (NVOCC) service 

arrangements to guard against 

detrimental effects to shipping. 

• Providing a forum for exporters, 

importers, and other members of the 

shipping public to obtain relief from 

ocean shipping practices or disputes 

that impede the flow of commerce.

• Ensuring common carriers’ tariff 

rates and charges are published in 

private, automated tariff systems and 

electronically available. 

• Monitoring rates, charges, and rules 

of foreign, government-owned/ 

controlled carriers to ensure they are 

just and reasonable.

• Taking action to address unfavorable 

conditions caused by foreign 

governments or business practices in 

U.S. foreign shipping trades.

• Investigating and ruling on 

complaints regarding rates, charges, 

classifications, and practices of 

VOCCs, MTOs, and Ocean 

Transportation Intermediaries (OTIs), 

that violate the Shipping Act.

• Licensing OTIs with appropriate 

character and adequate financial 

responsibility.

• Helping resolve disputes involving 

shipments of cargo, commercial, 

personal, or household goods, or 

disputes between cruise vessel 

operators and passengers.

• Identifying and holding regulated 

entities accountable for mislabeling 

cargo shipped to or from the United 

States.

• Ensuring that cruise lines maintain 

financial responsibility to pay claims 

for personal injury or death, and to 

reimburse passengers when their 

cruise fails to sail.
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Organizational Structure

The FMC is composed of five Commissioners appointed by the President with the advice and 

consent of the Senate. Commissioners serve five-year, staggered terms, and no more than 

three members of the Commission may belong to the same political party. The President 

designates one Commissioner to serve as Chairman. The Chairman is the chief executive and 

administrative officer of the agency. Commissioners appointed and confirmed after December 

18, 2014, may serve no more than two terms. 

The Commission’s staff includes economists, attorneys, and experts in ocean transportation 

and government administration. The FMC’s organizational chart is included as Appendix B. In 

addition to the Commissioner’s offices, the staff of the FMC is organized into 10 bureaus and 

offices. 

The Bureau of Certification and Licensing 

(BCL) protects the public from financial 

harm through its OTI licensing, registration, 

and renewal program. BCL also protects 

the public by requiring Passenger Vessel 

Operators (PVOs) to maintain adequate 

financial coverage to reimburse cruise

cancellations or to cover liability in the 

event of death or injury at sea. 

The Bureau of Enforcement (BOE) is the 

prosecutorial arm of the Commission. 

Bureau attorneys serve as trial counsel in 

formal proceedings, and protect the 

shipping public by working closely with the 

Commission’s Area Representatives in 

investigations of potential violations of the 

Shipping Act and Commission regulations. 

BOE negotiates settlements and informal 

compromises of civil penalties, and may act 

as investigative officers in formal factfinding investigations.

The Bureau of Trade Analysis (BTA)

analyzes and monitors the concerted 

activities of VOCCs and MTOs to detect and 

guard against possible anticompetitive 

abuse of authority contained in filed 

agreements under the Shipping Act that 

could result in substantial increases in 

transportation costs or decreases in 

transportation services; and to identify and 

address other prohibited activities. BTA 

also reviews and analyzes service contracts, 

monitors rates of foreign, governmentowned controlled carriers; and reviews 

carrier-published tariff systems under the 

accessibility and accuracy standards of the 

Shipping Act.

The Office of the Administrative Law Judges 

(OALJ) resolves cases of alleged violations 

of the Shipping Act and other laws within 

the Commission’s jurisdiction. Through 

trial-type hearings and the issuance of an 

initial decision, the OALJ ensures that the 

rights of all parties are preserved.

The Office of Consumer Affairs and Dispute 

Resolution Services (CADRS) provides 

assistance to shippers, OTIs, cruise 
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operators and passengers, truckers, MTOs, 

and VOCCs by providing alternative dispute 

resolution (ADR) services, ombuds 

assistance, mediation, facilitation, and 

arbitration to resolve disputes involving 

cargo shipments, household goods 

shipments, and cruises.

The Office of Equal Employment 

Opportunity (OEEO) advises and assists the 

Commission in carrying out its 

responsibilities relative to Titles VI and VII 

of the Civil Rights Act of 1964 (as 

amended), other laws, executive orders, 

and regulatory guidelines implementing 

affirmative employment, and the 

processing of EEO complaints.

The Office of the Inspector General (OIG) is 

an independent and objective oversight 

office created within the FMC by the 

Inspector’s General Act of 1978 (as 

amended) to conduct and supervise audits, 

inspections, and investigations relating to 

FMC programs; detect and prevent waste, 

fraud and abuse; promote economy, 

efficiency, and effectiveness; review 

existing and proposed legislation and 

regulations; keep the Chairman, 

Commissioners, and Congress fully 

informed of serious problems and 

deficiencies and recommend corrective 

actions; and report violations of law to the 

U.S. Attorney General.

The Office of the General Counsel (OGC)

provides sound and timely legal services to 

the Commission and staff as it fulfills 

responsibilities that include: preparing final 

decisions, orders and regulations for 

Commission approval and issuance; 

representing the Commission in litigation 

before the courts; providing technical and 

policy assistance to other government 

agencies engaged in international 

negotiations or discussions on shipping 

matters; and providing legal opinions to the 

Commission, its staff, and the general 

public in appropriate instances. OGC also 

oversees the Commission’s international 

affairs activities.

The Office of the Managing Director (OMD)

is responsible for implementing the 

administrative directives of the Chairman, 

the management and coordination of 

Commission bureaus, and overseeing the 

agency’s Area Representatives located in 

six major port areas nationwide. It has 

direct oversight of the administrative 

offices of the Commission, which include 

the offices of Budget and Finance, Human 

Resources, Information Technology, and 

Management Services.

The Office of the Secretary (OS) serves as 

the office through which all filings are

made in Commission proceedings, notices 

of proceedings are given, and from which 
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all official actions are issued by the 

Commission. OS prepares and maintains 

agenda matters and actions taken by the 

Commission; maintains official files and 

records of formal proceedings; ensures 

compliance with Freedom of Information, 

Government in the Sunshine and Privacy 

Acts; responds to information requests 

from the public; issues publications and 

authenticates instruments and documents 

of the Commission; maintains a public 

reference/law library and a docket library; 

and oversees the organization and content 

of the Commission’s website.
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Strategic Plan Overview

The Federal Maritime Commission is pleased to issue this Initial Draft FY 2018-2022 Strategic 

Plan, which builds on the success of the FMC’s prior Strategic Plan covering FY 2014-2018. This 

Plan retains the two previous strategic goals (albeit slightly modified), as well as a section on 

administrative strategies in support of agency objectives. This latter section was established 

for the Commission’s administrative support functions: human resources; information 

technology (IT); contracting and property management; and financial management. Each of 

these important functions are subject to their own stringent planning and measuring regimes 

pursuant to various laws and executive mandates. Those related plans support this Strategic 

Plan and are referenced and described herein. 

This plan sets goals and objectives for each fiscal year through 2022 and contains targets and 

measures linked to objectives via strategies. These objectives, strategies, targets, and 

measures drive the agency’s budgetary process. This strategic plan conforms with the spirit 

and letter of the GPRA Modernization Act of 2010; OMB Circular A-11, Preparation of 

Submission of Strategic Plans, and Annual Program Performance Reports; and Executive Order 

13450 – Improving Government Program Performance.

As directed by the Acting Chairman, the Office of the Managing Director led the Strategic Plan 

update process. The Commission’s senior executives evaluated the current plan and provided 

input on revisions to the Commission’s mission, goals, and policy initiatives. This evaluation 

included a thorough review of available evidence including experience with evolving industry 

structural and behavioral changes, current challenges, and future industry forecasts to 

determine the best strategies to support a competitive and reliable shipping industry and drive 

continuous improvement in the FMC’s performance. Along with its senior executives, the 

FMC’s deputy directors and office heads participated in the Commission’s internal analysis of 

its strengths, weaknesses, opportunities and threats or challenges (SWOT analysis). 

This iterative process of evaluating the current state of the industry and possible future 

challenges validated retention of the Commission’s two previous strategic goals with slight 

modification, as broad outcomes that the Commission should continue to achieve consistent 

with its statutory mandate. The SWOT analysis helped to refine and focus several of the 

strategies and measures in support of the two goals, as well as develop new strategies, 

measures, and targets. Before it becomes final, this Initial Draft Plan will be provided to the 

Office of Management and Budget, posted to the Commission’s website, and presented to 

Congress for feedback.

To achieve competition and integrity for America’s ocean transportation supply chain, the FMC 

identified two strategic goals. Each goal is broken down into specific action-oriented

objectives representing key components of the Commission’s approach to achieving its goals.

In draft form, the Commission’s goals and objectives are:
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Strategic Goal 1: Maintain a competitive and reliable international ocean transportation 

supply system.

Objective 1.1: Ensure that actions under filed agreements do not result in unreasonable 

increases in transportation costs and/or unreasonable decreases in transportation services.

Strategic Goal 2: Protect the public from unlawful, unfair, and deceptive ocean transportation 

practices.

Objective 2.1: Identify and take action to end unlawful, unfair, and deceptive practices.

Objective 2.2: Prevent public harm through licensing and financial responsibility 

requirements.

Objective 2.3: Enhance public awareness of agency resources, remedies and regulatory 

requirements through education and outreach.

Objective 2.4: Impartially and timely resolve international shipping disputes through

alternative dispute resolution and adjudication.
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FMC Strategic Plan Fiscal Years 2018- 2022

Strategic Goal 1 - Maintain a competitive and reliable international ocean 

transportation supply system.

The Commission’s oversight of the international ocean transportation supply system remains 

critical. Ocean transportation plays a primary role in the movement of goods to and from the 

American marketplace with nearly $1 trillion in U.S. exports and imports moved by ship. Over 

the past decade, significant changes to the international ocean transportation industry, 

including carrier consolidations, mergers, and a major carrier bankruptcy, have changed the 

landscape of the industry. Operational alliance composition has been upended, and the 

Commission foresees mounting impacts on both existing and future filed agreements. 

Anticipation of these changes in concerted carrier activity and market structure will drive the 

FMC to intensify its efforts to timely and efficiently analyze the competitive impact of carrier 

and MTO cooperation, balancing the cost-containment strategies and cooperative working 

arrangements of VOCCs and/or MTOs with the legitimate business needs of the Nation’s many 

exporters and importers. The Commission’s oversight of VOCC and MTO antitrust immunity, as 

part of a non-discriminatory regulatory process, works to provide a competitive and reliable 

ocean transportation supply system essential to the growth of trade and the creation of jobs. 

A stated policy objective of the Shipping Act is “to promote the growth and development of 

United States exports through competitive and efficient ocean transportation and by placing a 

greater reliance on the marketplace.” Maintaining a competitive and reliable international 

ocean transportation supply system by ensuring that actions under filed agreements do not 

result in unreasonable increases in transportation costs and/or unreasonable decreases in 

transportation services is a primary responsibility of the Commission. Competition among 

participants in U.S. liner trades fosters competitive rates, encourages innovation and a variety 

of service offerings for the benefit of U.S. exporters and importers, and ultimately consumers. 

The Shipping Act allows competitors to meet, discuss, and cooperate on certain business 

issues, but first they must file a written agreement with the Commission. Filed agreements are

reviewed by a team of FMC economists, attorneys, and transportation analysts using antitrust 

law and economic models to evaluate the potential competitive impact of a proposed 

agreement and to advise the Commission of potential issues or actions before a pending 

agreement becomes effective. The initial review and analysis of a proposed agreement and 

subsequent monitoring of the members’ activities under the agreement, should it become 

effective, are designed to identify and guard against possible anticompetitive abuse of the 

filed authority, avoid unreasonable increases in transportation costs or decreases in 

transportation services, and address other activities prohibited by the Shipping Act. 

The Shipping Act is a federal competition law applicable to the industry of international liner 
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shipping. The Shipping Act creates a separate regulatory regime from traditional antitrust 

under which collective carrier or MTO activity is both evaluated when the agreement is initially 

filed and closely monitored thereafter for any adverse impact on competition in the trade. So 

long as the regulated entities comply with the statutory and regulatory proscriptions of the 

Act, then the other federal antitrust statutes generally do not apply. Conversely, if a regulated 

entity violates the Shipping Act, it would be subject to penalties set forth in the Act, and may 

under certain circumstances be subject to investigation and prosecution under the full array of 

federal antitrust statutes.

In addition, the Commission addresses unfavorable conditions affecting U.S. carriers in U.S. 

oceanborne trades when such conditions do not exist for foreign carriers. Restrictive foreign 

shipping practices are addressed under section 19 of the 1920 Act and the Foreign Shipping 

Practices Act. Section 19 empowers the Commission to make rules and regulations governing 

shipping in the foreign trade to adjust or meet conditions unfavorable to shipping. The FSPA 

directs the Commission to address adverse conditions that affect U.S. carriers in foreign trade 

and that do not exist for foreign carriers in the United States. 

The Commission also classifies foreign, government-owned controlled carriers subject to 

section 9 of the Shipping Act. Common carriers owned or controlled by foreign governments 

are required to adhere to certain requirements under the Shipping Act, and their rates are 

subject to Commission review. 

Objective 1.1: Ensure that actions under filed agreements do not result in 

unreasonable increases in transportation costs and/or unreasonable decreases in 

transportation services.

The Commission will achieve this objective through a number of strategies aimed at using its 

statutory authority in a fair and expeditious manner to allow lawful agreements to support a 

competitive and reliable international ocean transportation supply system.

The Shipping Act requires VOCCs and MTOs that wish to establish agreements that would 

benefit from antitrust immunity to file their agreements with the FMC. FMC staff review 

proposed agreements when they are initially filed, and before they take effect. Agreements 

are permitted to proceed when they do not cause competitive harm. The FMC is authorized, 

pursuant to section 6(g) of the Shipping Act, 46 U.S.C. § 41307(b), to seek appropriate 

injunctive relief against any agreement that is likely to result in a reduction in competition that 

could be expected to unreasonably raise transportation costs or reduce transportation service.

The Shipping Act and implementing regulations also authorize the FMC to require agreement 

parties to: (a) provide information needed to assess certain categories of agreements; (b) file 

certain standard types of reports —including quarterly economic data and/or minutes of 

meetings held by the agreement parties; and (c) submit special ongoing informational reports 

once the agreement becomes effective. Both the baseline and periodic monitoring reports 
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allow the FMC to initially evaluate, and monitor on an ongoing basis, the conduct of the 

parties to VOCC and MTO agreements.

In recent years, the FMC has seen an increase in operational VOCC and MTO agreements, 

many of which allow cooperation to improve efficiency, allow sustainable growth, or respond 

to new or imminent environmental regulations. The FMC gives consideration to efficiency, 

sustainability, and other likely benefits when evaluating their net impact on competition, 

transportation cost, and transportation service.

Strategies

The Commission’s performance measures tracking negotiations to mitigate the 

anticompetitive effects of agreements and potential market distorting collective behavior will 

be achieved through the following strategies. These strategies cover a broad range of 

Commission activities, all using agency resources to foster the purposes of the Shipping Act,

particularly with regard to filed agreements and agreement monitoring reports under this 

objective.

• Review initial agreements and amendments, including additional information 

requested by the FMC to determine the likelihood that the agreement parties could 

engage in substantially anti-competitive conduct with respect to transportation costs 

or services.

• Review on a regular, on-going basis, the data and information provided in standard 

reports and special reporting to assess the existence or likelihood of substantially anticompetitive conduct or unfavorable trade conditions.

• Develop and apply statistical tests to identify potential anticompetitive changes in 

relevant metrics such as level of transportation costs or level of services.

• Initiate meetings with the FMC’s various stakeholder industries to help determine 

whether anti-competitive behavior or unfavorable trade conditions exist in U.S.

trades.

• Conduct research studies on current competition issues with respect to U.S. trades.

• Actively monitor for and record the presence of all foreign, government-owned

controlled carriers in U.S. trades, and regularly review their pricing practices.

• Obtain information via inquiries and/or complaints about conduct or conditions that 

impede the efficient movement of cargo.
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• Encourage and support stakeholder developed, market driven solutions to systemic 

supply chain inefficiencies by sponsoring opportunities for collaboration across a 

diverse group of industry stakeholders.

• Ensure competitive conditions in the U.S. foreign oceanborne trades by working with 

agreement parties on an informal basis to negotiate changes in agreements that raise 

competitive concerns.

• Preserve competition and reliability in ocean transportation by seeking appropriate 

injunctive relief under section 6 of the Shipping Act for agreements likely, by a 

reduction in competition, to produce an unreasonable reduction in transportation 

service or an unreasonable increase in transportation cost.

• Address disruptions in the ocean transportation marketplace by investigating

violations of the Shipping Act.

• Take action under the FSPA to address adverse conditions affecting U.S. carriers in the 

U.S. oceanborne trades, when such conditions do not exist for foreign carriers or 

others providing maritime or maritime-related services in the United States.

• Make rules and regulations, pursuant to the 1920 Act, affecting shipping in the foreign 

trade not in conflict with law in order to adjust or meet general or special conditions 

unfavorable to shipping in the foreign trade.

• Ensure timely action on formal proceedings undertaken to protect competition.

• Maintain or upgrade an electronic agreement library, accessible from the FMC’s 

website, to provide transparent, real-time public access to search and download

documents.
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Five-Year Performance Measures

The following measures will be used to indicate the FMC's progress towards achieving 

Objective 1.1.

Measure 1: Percentage of FMC-filed agreements reviewed at Commission level which are 

modified through negotiation to mitigate anti-competitive effects.

Measure 2: Percentage of agreement monitoring reports reviewed within 30 days of 

receipt to detect actionable information including market-distorting behavior. 
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Strategic Goal 2 – Protect the public from unlawful, unfair, and deceptive 

ocean transportation practices.

The FMC has a wide variety of responsibilities related to protecting the shipping public from 

financial harm that may be caused by the commercial activities of regulated entities. The FMC 

is responsible for licensing ocean transportation intermediaries serving the U.S. trades; 

certifying that passenger vessel operators meet the required financial responsibility levels for 

death, injury, or nonperformance; assisting the public with resolving informal complaints 

related to the shipment of goods or to passenger vessel cruises; the identification and 

prosecution of unreasonable or unjust practices by VOCCs, OTIs, or MTOs; and the 

investigation and satisfaction of formal, private-party complaints or FMC-initiated proceedings

alleging Shipping Act violations. To carry out its mission, the FMC uses various tools and 

techniques including monitoring, investigation, education, enforcement, adjudication, and 

ombuds services.

Ocean transportation intermediaries are transportation middlemen for oceanborne cargo 

moving in the U.S.-foreign trades. Before the FMC grants licenses to OTIs as mandated by the 

Shipping Act, the OTI applicant must establish that it has the necessary character and 

experience, as well as establish its financial responsibility by means of a bond, insurance, or 

other instrument. 

The Commission uses both its enforcement and compliance programs to identify and take 

action to end unlawful, unfair, and deceptive practices. Enforcement-based initiatives will 

continue against VOCCs and NVOCCs that engage in unfair service contracting practices, 

particularly those practices which permit unlicensed OTIs to compete unlawfully with carriers 

and OTIs operating in compliance with U.S. laws. The FMC will pursue enforcement actions 

against those who engage in market-distorting, fraudulent, or anti-competitive practices 

harmful to the industry and the public.

The FMC offers informal dispute resolution, and adjudicates claims of unlawful practices by 

VOCCs, MTOs, and OTIs. The Commission’s staff educate industry members and the public on 

the Shipping Act and shipping regulations, and help to address international ocean 

transportation disputes. The FMC supports mediation and collaborative dispute resolution 

when feasible, and requires parties involved in formal Commission docketed proceedings to 

attend mandatory mediation conferences. The FMC offers both facilitation and arbitration 

services to the industry and shipping public to resolve disputes. An online mediation tutorial 

and tool is available for parties to use to prepare for mediation. 

The FMC’s Administrative Law Judges, whose independence is protected by the Administrative 

Procedure Act, 5 U.S.C. Subchapter II, resolve cases involving alleged violations of the Shipping 

Act and other laws within the Commission’s jurisdiction. Cases may be initiated either by 

private parties or by the Commission (represented by the Bureau of Enforcement to seek civil 
14

penalties for Shipping Act violations). The Chief Administrative Law Judge also has the 

authority to assign small claims complaints, valued at up to $50,000, to a Small Claims Officer 

for resolution. 

The Commission educates the public and industry groups involved in U.S. international trade 

on their rights and/or responsibilities under the Shipping Act, as well Commission resources 

available to facilitate movement of cargo or resolution of disputes. Brochures, how-to guides, 

forms and applications, reference libraries, news releases, information on investigations; and 

advice on topics such as FMC regulations, OTI licensing, household goods moves, and use of 

ADR services to assist parties with resolving cruise and cargo-related disputes are among the 

available offerings through the Commission’s website. 

Throughout the year, Commission staff participate in presentations and instructional 

opportunities to educate consumers and regulated entities about regulations, shipping trends, 

best practices, and the effective use of available FMC resources to resolve formal proceedings, 

service contract matters, and other commercial shipping disputes through industry sponsored 

conferences, workshops, briefings, webinars, and one-on-one meetings. The FMC will 

continue its efforts to increase transparent and public access to Commission resources by 

improving the design, usability, and platform of its public website docket library and historical 

document repository; as well as continue broadcasting public Commission meetings. 

Objective 2.1: Identify and take action to end unlawful, unfair, and deceptive 

practices. 

The FMC is responsible for ensuring that individual VOCCs and MTOs, as well as those 

permitted by agreement to act in concert, treat shippers and other members of the shipping 

public fairly by not engaging in prohibited acts set out in the Shipping Act. In the effort to 

identify such practices, the FMC maintains a visible presence among regulated entities, collects 

intelligence and analyzes trade data, and exchanges intelligence with other regulatory and law 

enforcement agencies.

In order to ensure compliance with laws and regulations under the jurisdiction of the FMC, 

various formal and informal actions may be taken by the Commission. Formal proceedings 

may be initiated to investigate and prosecute Shipping Act violations. The Commission also 

often enters settlement agreements to informally resolve and correct prohibited activities.
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Strategies

The following strategies are specifically aimed at achieving the five-year performance measure 

of successfully resolving enforcement actions through various means.

• Gather intelligence through visible and accessible presence in the regulated 

community in order to identify unlicensed OTIs and other violations. Monitor all forms 

of advertising to identify potential illegal activity.

• Gather information related to unlicensed entities acting as OTIs.

• Respond to complaints regarding violations of the Shipping Act and Commission 

regulations. 

• Identify subjects who offer, advertise or provide passage on vessels having berths or 

staterooms to accommodate 50 or more passengers and have not met FMC financial 

requirements.

• Audit OTIs and ocean carriers randomly selected as well as based upon information

developed or received by the Commission and advise of any required corrective 

action. 

• Exchange information and liaise with other federal, state, and local investigative and 

regulatory agencies and bureaus.

• Review tariffs and authorized alternative pricing mechanisms to ensure compliance 

with the Shipping Act and Commission regulations.

• Investigate allegations of conduct prohibited under the Shipping Act or Commission 

regulations. 

• Prosecute alleged violations of the Shipping Act through formal proceedings.

• Enter into voluntary settlement agreements with alleged violators through informal 

procedures to terminate unlawful activities and bring about compliance with 

requirements of the law or regulations.

• Respond to inquiries regarding complaint history of transportation providers and 

advise consumers of means to protect themselves.
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Five-Year Performance Measure

The following measure will be used to indicate the FMC's progress towards achieving Objective 

2.1.

Measure 1: Percentage of enforcement actions taken under the Shipping Act

successfully resolved through favorable judgment, settlement, issuance of 

default judgment, or compliance letter or notice.

Objective 2.2: Prevent public harm through licensing and financial responsibility 

requirements. 

The FMC licenses and regulates ocean transportation intermediaries, including ocean freight 

forwarders and NVOCCs, and ensures that OTIs have the required financial responsibility. As 

well, the FMC issues certificates to owners and operators of passenger vessels that have 

evidenced financial responsibility to satisfy liability incurred for nonperformance of voyages 

and for death or injury to passengers and other persons.

Strategies

To prevent public financial harm, the Commission has developed the following strategies to 

support the Commission’s five-year performance measures for tracking the expeditious review 

of OTI licensing applications and assuring PVO compliance with FMC financial responsibility 

requirements.

• License OTIs with the requisite character, experience, and financialresponsibility.

• Process OTI license and registration triennial updates (renewals) to ensure OTIs 

continue to maintain the financial responsibility and experience required to perform 

OTI activities. 

• Issue PVO certificates to cruise line operators that have met regulatory requirements 

for proof of financial responsibility.

• Monitor PVO unearned passenger revenue (UPR) reports, and conduct on-site review 

of PVO UPR receipts.

• Periodically review and assess the need to update OTI bonds and coverage amount.
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Five-Year Performance Measures

The following measures will be used to indicate the FMC's progress towards achieving 

Objective 2.2.

Measure 1: Percentage of decisions on completed OTI license applications rendered within 

60 calendar days, facilitating lawful operation of OTIs with the appropriate 

character and experience requirements.

Measure 2: Percentage of PVOs examined during the year that have the full 

financial coverage required by regulation to protect against loss from nonperformance or casualty.

Objective 2.3: Enhance public awareness of agency resources, remedies and 

regulatory requirements through education and outreach. 

Protection of the public requires both educating regulated entities about their 

responsibilities under the Shipping Act and Commission regulations and also educating their 

customers about FMC regulatory requirements. The shipping public needs to be informed 

of the services offered by the FMC and the remedies available in the event of noncompliance, injury, or unresolved disputes.

Strategies

The following strategies support this objective by enhancing public awareness and education,

including a specific focus on the performance measure for posting actions on the agency 

website within five days.

• Make available to the public all documents filed or issued in Commission formal

proceedings through the Commission’s website.

• Publish news releases and compromise agreements reached under informal 

penalty procedures describing alleged violations subject to enforcement action

on the Commission’s website.

• Leverage the Commission’s website and social media presence to educate the 

shipping and cruising public regarding industry trends, challenges, and the risks 

associated with using unlicensed companies (including companies whose licenses 

have been revoked and may still be conducting business).

• Promote general awareness of resources available through Commission’s website.
18

• Maintain an accessible presence in local regulated communities.

• Proactively educate regulated entities on regulatory requirements.

• Educate regulated entities and the shipping public about dispute resolution services 

available through CADRS.

• Publish VOCC and NVOCC tariff location information on the agency website.

• Emphasize OTI requirements to new licensees.

• Promote awareness of FMC-licensing and financial requirements.

• Continuously expand and update information available to the public through

the Commission’s website, including list of FMC-licensed OTIs.

• Use electronic strategies and modalities to deliver information to the shipping 

and cruising public (e.g. webinars, web tutorials, and social media).

• Employ additional strategies and external partnerships to amplify outreach 

initiatives (e.g. National Moving Month with FMCSA and trade associations;

popular vacation times for cruising with AARP, AAA; and National Consumer 

Protection Week with the Federal Trade Commission and State Attorney 

Generals Offices).

• Conduct meetings, presentations, and other educational sessions to inform 

and educate the shipping and cruising public regarding Commission 

regulations, programs, services, and initiatives.

Five -Year Performance Measure

The following measure will be used to indicate the FMC's progress towards achieving Objective 

2.3.

Measure 1: Percentage of Commission issuances, orders, and reports available through the 

Commission’s website within five working days of receipt.
19

Objective 2.4: Impartially and timely resolve international shipping disputes through 

alternative dispute resolution and adjudication. 

The Commission has several means by which the public, shippers, or regulated entities may 

seek resolution of disputes or complaints. The Commission provides ADR services such as

ombuds, mediation, arbitration, and facilitation to assist parties in resolving complaints 

informally through its office of Consumer Affairs and Dispute Resolution Services. Settling 

complaints through ADR has the potential to serve shipping companies, their customers, and 

the FMC significant time and resources. 

Complaints alleging Shipping Act violations may be filed with the FMC for formal adjudicatory 

hearing by an FMC administrative law judge. Partiesto the formal adjudicatory hearings may 

seek assistance from a trained FMC neutral at any stage in the formal proceeding process for 

resolution using ADR processes.

Strategies

The following strategies were developed to impartially and timely resolve international 

shipping complaints using ADR and adjudicatory Commission resources.

• Provide ADR services such as ombuds, mediation, arbitration, and facilitation to 

resolve commercial cargo, passenger vessel, household goods, and other disputes 

related to the FMC’s authority and mission.

• Conduct mediation conferences to explore the use of mediation to resolve formal 

complaints filed with the Commission pursuant to 46 CFR § 502.64.

• Adjudicate and issue Special Docket Application decisions within 90 days of receipt.

• Adjudicate disputes under the jurisdiction of the agency through an FMC 

administrative law judge, with the possibility of appeal to the Commission, use of 

settlement officers, and through arbitration.

• Timely conduct Commission proceedings so that litigants and the shipping industry 

can adjust behavior accordingly to maintain regulatory compliance.

• Develop and streamline internal business processes and databases to reduce intake 

and processing time for resolving shipping disputes.
20

Five -Year Performance Measures

The following measures will be used to indicate the FMC's progress towards achieving 

Objective 2.4.

Measure 1: Percentage of ombuds and ADR matters closed within 6 months of request for

assistance.

Measure 2: Percentage of formal complaints or Commission-initiated orders of 

investigation completed within two years of filing or Commission initiation.
21

Administrative Strategies in Support of Agency Objectives

In pursuing its strategic goals of maintaining a competitive and reliable international 

transportation supply system; and protecting the shipping public from unlawful, unfair, and 

deceptive ocean transportation practices, the FMC recognizes the critical importance of 

providing effective, performance-oriented management and ensuring that all resources 

allocated to its mission are wisely employed. The Commission’s administrative strategies in 

support of its mission objectives are contained in separate but related plans for human capital 

development, information technology and financial management support. Each of these plans 

are subject to stringent planning and measuring regimes pursuant to various laws and 

executive mandates. 

The Commission’s ability to carry out its mission and serve its customers depends on having a 

well-trained, highly skilled, and flexible workforce. The FMC is committed to the principles of 

diversity and the implementation of policies and objectives to enhance the Commission’s 

workforce. The Commission’s Office of Equal Employment Opportunity, along with senior 

leaders, effectively carries out this commitment.

The FMC offers professional training opportunities to all employees and has leveraged the 

flexibilities and cost-effectiveness of online training courses covering diverse topics such as IT 

technical skills, project management, communication, and writing. Further, the Commission

provides annual performance management training, telework training, and takes advantage of

cost saving opportunities for employees to participate in training classes offered by the Small 

Agency Council. 

Flexible work schedules and telework are crucial to the FMC’s success in attracting and 

retaining a highly qualified workforce. The FMC offers employees alternative work schedules 

and telework opportunities, which serve to increase employee productivity and to improve 

work/life balance. More than 50% of the staff participate in alternative work schedules with 

the option to telework. The FMC is currently revising its work schedules program to adopt 

additional flexibilities available under the government’s alternative work schedules program. 

The Commission’s Human Capital Plan for FY 2012-2017 aligns our staff resources with our 

operational, information technology, and support processes in order to maintain a 

performance-based organization. Employee performance plans are linked to the 

Commission’s strategic goals and mission. The Human Capital Plan ensures human capital 

needs are carefully considered as part of the Commission’s strategic planning and budgeting 

processes and contributes to our mission success by monitoring and evaluating the progress 

and results of human capital goals, programs, and activities. Consistent with OMB 

Memorandum M-17-22, the Commission has developed strategies to reshape the agency 

workforce over the next five years, further improve accountability, and create a more efficient

agency that works for the American people.
22

Planning is ongoing for use of IT resources necessary to accomplish the Commission’s strategic 

goals. The Commission is committed to an integrated approach to IT capital planning and 

investment control — both of which are driven by the Commission’s Strategic Plan and its 

need to meet mission objectives. Information technology planning is driven by programmatic 

needs of the Commission and is projected in a 4-year budgeting process. The Commission’s

Information Technology Capital Plan (covering FY 2016-2020) incorporates improvements in IT 

infrastructure security and services, such as cloud computing, that have made delivery of IT 

services and work product more secure, more accessible and less costly.

The FMC’s financial systems are monitored and audited annually as required by the Federal 

Manager’s Financial Integrity Act (FMFIA), as amended, the Chief Financial Officers Act of 1990 

(CFO Act), as amended, and the Government Management Reform Act (GMRA) of 1994. The 

FMC’s results are reported annually in the Performance and Accountability Report, posted on 

the Commission’s website. The FMFIA requires agencies to establish controls that reasonably 

ensure that obligations and costs comply with applicable law; assets are safeguarded against 

waste, loss, unauthorized use, or misappropriation; and revenues and expenditures are 

properly recorded and accounted for. It requires the agency head to provide an assurance 

statement of the adequacy of management controls and conformance of financial systems 

with government standards. As well, the CFO Act mandates annual audits of the Commission’s 

internal controls systems. The Commission is committed to maintaining an unmodified (clean)

audit opinion on audits of its Annual Financial Statements. Further, the Commission is 

committed to addressing matters identified through the Financial Statement Audits involving 

internal controls and operations considered material weaknesses. By carefully and closely 

monitoring all of its operational programs, personnel needs, planning processes, financial and 

procurement practices, and mission-critical support activities, the agency strives to ensure that 

its strategic goals are not only being met – but being advanced in ways that make the most 

productive, efficient, and sustainable use of the scarce resources with which it has been 

entrusted.

In order to manage its resources efficiently, the Commission’s Office of Management Services 

follows Federal acquisition rules and guidance. Procurements are carefully weighed and best 

values for the government are selected to manage the Commission’s funds. Recently, the 

Commission implemented Federal Digital Accountability and Transparency Act of 2014 (DATA 

Act) requirements to assist in better government-wide collection of metrics on government 

spending. The FMC, through its shared service provider, updated its information collection 

parameters for contracting and fiscal oversight. Moving forward, collection and analysis of 

this information will better inform efficient FMC spending decisions and assist the Commission 

in comparing its spending with other similarly situated small agencies in order to evaluate 

potential cost savings. 
23

The FMC also works in partnership with the General Services Administration (GSA) to act as a 

good steward of government resources. In recent years, the FMC reconfigured its 

headquarters space to better align the size of its real property assets with actual program 

needs. During FY 2017, the Commission recognized a further annual cost savings of 

approximately $66,000 by coordinating shared use of existing space with another Federal 

entity. This action reduced the FMC’s footprint resulting in a reduction in rent and facility 

security costs. The FMC will continue to evaluate its space needs going forward.

Strategies

The FMC realizes the critical importance of the administrative component of the agency in 

support of agency strategic goals, objectives, and performance measures. The following 

strategies addressing budget, planning, human resources, procurement, and IT were 

developed to assure an effective administrative support program within the FMC.

• Creation and maintenance of an annual budget directly linked to strategic plansfor 

submission to Congress and the Office of Management and Budget (OMB).

• Track quarterly and report annually the Commission’s performance under its strategic 

plan and assess the efficacy of performance measures for preparation of the annual 

performance and accountability report.

• Identify and alleviate current and future skills gaps by fostering human resources 

management principles, including recruitment and placement, position classification 

and pay administration, occupational safety and health, employee assistance, 

employee relations, workforce discipline, performance management and incentive 

awards, employee benefits, career transition, retirement, employee development and 

training, executive resources, personnel security, and equal employment opportunity.

• Promote economy and efficiency by detecting waste, fraud, and abuse in the agency’s 

programs via auditing agency operations.

• Ensure program compliance with rules and regulations regarding such areas as forms 

clearance, Paperwork Reduction Act, Small Business Paperwork Relief Act, and other 

federally required reports and submissions.

• Execute financial management policies and programs, manage agency appropriations, 

administer internal control systems for agency funds, travel and cash management,

and coordinate with contractors who provide accounting and payroll services.

• Monitor performance to ensure the agency’s program operations are effectively, 

efficiently, and sustainably supported via telecommunications, procurement of 
24

administrative goods and services, property management, space, printing and

copying, mail and records services, facilities and equipment maintenance, and

transportation.

• Provide clear and timely guidance to staff regarding administrative matters, including 

procurement, personnel, and contracting issues.

• Use technology and IT expertise to streamline and automate the agency’s work 

processes and enhance the productivity and efficiency of the workforce, in support of 

delivery of more cost-effective services to the shipping industry and to the American 

taxpayer. 
25

Program Evaluation

The FMC maintains a steady focus on meeting the Commission’s mission and goals, and in 

ensuring that the Commission’s efforts are responsive to changing industry practices and 

circumstances. The FMC periodically reviews all program areas in light of identified

performance measures, recognizing that measures and strategies may need to be modified to 

better meet the strategic goals. 

The Commission continuously seeks ways to make compliance with its statutory and 

regulatory requirements less burdensome and more cost effective for shippers, VOCCs, and 

OTIs. The Commission does this by evaluating evidence collected, both qualitatively and, 

when applicable, quantitatively, to improve its rules or policies to benefit the American public. 

In conjunction with Executive Order 13777, Enforcing the Regulatory Reform Agenda, and the 

deregulatory spirit of the Shipping Act as amended by the Ocean Shipping Reform Act of 1998, 

the Commission has designated a Regulatory Reform Officer and established a Regulatory 

Reform Task Force. The Commission has issued a Notice of Inquiry for public comment, and 

the Task Force will work to identify existing FMC regulations that are outdated, unnecessary, 

ineffective, inhibit job growth, impose unnecessary costs, or otherwise interfere with 

regulatory reform initiatives and policies. Responses will be evaluated for evidentiary data 

and will inform the Commission’s actions. 

In addition to its Regulatory Reform Task Force, the FMC continues its ongoing program 

evaluation through its retrospective review plan to systematically examine and seek public 

input on its key regulations. For example, staff recommendations for reforms to the filing and 

processing of agreements, quarterly monitoring reports and agreement meeting minutes, are 

currently under consideration. These potential regulatory changes take into consideration 

industry comments received in response to its Notice of Proposed Rulemaking in Docket No. 

16-04. 

Further, the Commission programs are informed by an overall risk management approach. 

The FMC uses evidence-based decision making to manage its risks and develop appropriate 

internal controls. Through the process of developing this Strategic Plan, the Commission 

completed a full analysis of its programs, reviewing both opportunities and threats. This 

process culminated in the creation of a Risk Profile, as required by M-16-17, OMB Circular No. 

A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. 

The Commission will annually review and update the Risk Profile as necessary to proactively 

manage risks to the agency and the completion of its mission.
26

Appendix A: Performance Measures by Strategic Goals

Summary of Strategic Goals, Objectives and Performance Measures

STRATEGIC GOAL 1: Maintain a competitive and reliable international ocean transportation supply system

OBJECTIVE 1: Ensure that actions under filed agreements do not result in unreasonable increases in transportation 

costs and/or unreasonable decreases in transportation services.1

Performance Measure: Percentage of FMC-filed 

agreements reviewed at Commission level which are 

modified through negotiation to mitigate anti-competitive 

effects.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

N/A 50% 51% 52% 53% 54%

Performance Measure: Percentage of agreement 

monitoring reports reviewed within 30 days of receipt to 

detect actionable information including market- distorting 

behavior.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

N/A 65% 66% 67% 68% 69%

STRATEGIC GOAL 2: Protect the public from unlawful, unfair, and deceptive ocean transportation practices

OBJECTIVE 2.1: Identify and take action to end unlawful, unfair, and deceptive practices.

Performance Measure: Percentage of enforcement actions 

taken under the Shipping Act successfully resolved through 

favorable judgment, settlement, issuance of default 

judgment, or compliance letter or notice.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

77.5% 77.5% 77.5% 77.5% 77.5% 77.5%

OBJECTIVE 2.2: Prevent public harm through licensing and financial responsibility requirements.

Performance Measure: Percentage of decisions on 

completed OTI license applications rendered within 60 

calendar days of receipt, facilitating lawful operation of 

OTIs with appropriate character and experience

requirements.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

75% 75% 75% 75% 75% 75%

Performance Measure: Percentage of PVOs examined 

during the year that have the full financial coverage required 

by regulation to protect against loss from non-performance 

or casualty.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

95% 95% 95% 95% 95% 95%

OBJECTIVE 2.3: Enhance public awareness of agency resources, remedies, and regulatory requirements through 

education and outreach.

Performance Measure: Percentage of Commission 

issuances, orders and reports available through the 

Commission’s website within 5 working days of receipt.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

82% 84% 84% 86% 88% 90%

OBJECTIVE 2.4: Impartially and timely resolve international shipping disputes through alternative dispute resolution 

and adjudication.

Performance Measure: Percentage of ombuds and ADR 

matters closed within 6 months of request for assistance.2

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

60% 60.5% 61% 63% 65% 67%

Performance Measure: Percentage of formal complaints or 

Commission-initiated orders of investigation completed 

within 2 years of filing or Commission initiation.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

62% 64% 66% 68% 70% 72%

 

1 This Objective is new for the FY 2018-2022 Strategic Plan. It replaces the previous Objective and accompanying 

Performance Measure to better reflect the work of the Commission in this area. Previous Objective and Performance 

Measure information can be found in the Commission’s Performance and Accountability Reports. 

2 This Measure was adopted in FY 2017 and more accurately reflects the FMC’s performance in this area. Previous 

Measure information is available in the Commission’s Performance and Accountability Reports. 
27

COMMISSIONER CHAIRMAN COMMISSIONER COMMISSIONER 

Office of the 

Inspector 

General 

Office of 

Equal 

Employment 

Opportunity 

Office of the 

Managing 

Director 

COMMISSIONER 

Office of the 

General 

Counsel 

Office of the 

Secretary 

Office of 

Administrative 

Law Judges 

Office of 

Consumer 

Affairs & 

Dispute 

Resolution 

Services 

Office of 

Budget and 

Finance 

Office of 

Human 

Resources 

Office of 

Management 

Services 

Office of 

Information 

Technology 

Bureau of 

Certification 

and Licensing 

Bureau of 

Enforcement 

Bureau of Trade 

Analysis 

Area Representatives 

Houston 

Los Angeles 

New Orleans 

New York/New Jersey 

Seattle/Tacoma 

South Florida 

Administrative

Appendix B: Organizational Chart

18

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

September 2017 

 

Direction
28

Appendix C: Major Management Priorities and Challenges: Factors Affecting the 

Achievement of Goals

The FMC is a small agency that has established considerable in-house expertise in the legal, 

economic, and organizational aspects of international liner shipping, the inter-modal 

movement of ocean cargo, and the cruise line business operating from the United States. That 

expertise allows the FMC to effectively pursue its goals of maintaining a competitive and 

reliable international ocean transportation system, and protecting the public from unlawful, 

unfair, and deceptive practices efficiently at a very modest cost to the taxpayer and with a 

minimum regulatory burden on the shipping industry.

Challenge: Operating Budget Reductions

A significant challenge facing the agency is the potential reduction in its operating budget. 

Given that the predominant portion of the agency’s costs are salaries and benefits, any 

reductions in payroll through attrition or furloughs will impede progress toward meeting the 

FMC's mission and strategic goals. Cuts to the operating budget will also hamper continuous 

efforts to make identified and necessary IT improvements, diminishing the FMC’s ability to 

improve service levels, reduce regulatory burden pursuant to Executive Order 13777, 

Enforcing the Regulatory Reform Agenda, streamline workforce and organizational structure 

pursuant to Memorandum M-17-22, Comprehensive Plan for Reforming the Federal 

Government and Reducing the Federal Workforce to meet the requirements of the March 13, 

2017, Executive Order 13781, Comprehensive Plan for Reorganizing the Executive Branch, and 

speed agency decision-making by deploying automated systems and workflows.

In spite of fiscal austerity, the agency will need to maintain its relevant expertise through the 

recruitment, training, and retention of highly qualified attorneys, economists, industry 

specialists, and information technology experts. New, more concentrated forms of carrier 

alliances, increasingly complex and sophisticated competitive working arrangements, and the 

surging number and importance of on-shore agreements among VOCCs and MTOs demands 

world-class analytical skills to support the Commission’s competitive, economic, and legal 

review processes. The importance of recruitment and retention is likely to increase as the 

agency’s experienced personnel reach retirement age, and in the face of competition from the 

commercial sector and other Federal agencies seeking to replace their retiring personnel.

Should the Commission’s operating budget be reduced, the Commission will first look to 

further reduce spending in non-payroll expenses. Such reductions will, in whole or in part, 

negatively impact all areas of operation. Many essential services will be sharply curtailed, 

including acquisition of analytical tools, databases, or other mission-critical resources. 
29

Critically, a reduction in funding would gravely hamper the Commission’s IT functions, which 

supports all areas of the FMC’s work and delivery of services to the industry it regulates. The 

use of information technologies is one way that the FMC is able to do more with less. The 

increasing importance of information technologies results not only from its contribution to the 

agency’s ability to collect and process information more efficiently and accurately, but also 

because of the agency’s need to keep up with the electronic-business practices of the 

industries it regulates. Greater use of information technology also helps make many of the 

aspects of licensing, certification, and information filing simpler and easier to accomplish for 

the agency’s stakeholders. IT is critical to the maintenance and effective use of various key 

agency databases essential to achieving the FMC’s strategic goals.

A reduction in IT investments would effectively halt program development and any 

appreciable further deployment of the Commission’s IT infrastructure. That infrastructure 

includes improving FMC IT systems through a multiyear project, now underway, to greatly 

improve its efficiency, reliability and cybersecurity readiness. Were these investments to be 

fully implemented, the Commission’s internal business processes would be automated or 

enhanced, improving and expanding legal and economic research and analysis capabilities and 

providing better public access to FMC information. These improvements remain key to 

restraining future personnel growth, and permitting the FMC options for reallocating existing 

personnel to critical program needs in the future, consistent with its 5-year plan responsive to 

OMB Memorandum, M-17-22, Reforming the Federal Government and Reducing the Federal 

Workforce. 

The security of agency databases and confidential business reports and associated documents 

filed with the FMC has received increasing attention in recent years. Enhanced and extended 

applications of information technologies helps ensure that security and support public trust. 

Ongoing efforts also are necessary to ensure continued cybersecurity readiness. In recent 

fiscal years, the FMC has sought to move critical applications to the cloud to ensure regular 

and effective data backups. Efforts to comply with Department of Homeland Security (DHS), 

National Institute of Standards and Technology (NIST) and United States Computer Emergency 

Readiness Team (US-CERT) monitoring requirements for network security demand nearcontinuous updating as well as agency investment in internal security tools to effectively 

monitor network operations, including integrity of files, password sufficiency, probing for open 

ports and other externally visible points of attack. These actions also are necessary to meet a 

number of government-wide requirements including mandatory cybersecurity and Federal 

Information Security Modernization Act (FISMA) requirements; government-wide MTIPS 

(Managed Trusted Internet Protocol Service) requirements; OMB Memorandum M-17-25, 

Reporting Guidance for Executive Order on Strengthening the Cybersecurity of Federal 

Networks and E.O. 13800; as well as OMB Memorandum M-17-12, Preparing for and 

Responding to a Breach of Personally Identifiable Information. 
30

Challenge: Impact of Industry Changes/Jurisdictional Issues 

The FMC regulates international ocean liner transportation, and is also involved, through its 

regulation of marine terminal operators, with aspects of the intermodal movement of ocean 

cargo in the United States. In addition, foreign-based OTIs are subject to statutory bonding 

requirements under FMC jurisdiction. To the extent that there are changes in the regulatory 

treatment of international liner operations by foreign governments, the agency will continue 

to monitor such changes and the likely effect of such changes on U.S. trades. To this end, the 

Commission now consults on a biennial basis with relevant maritime regulatory authorities of 

the European Community and the Peoples Republic of China to identify and discuss 

commercial and regulatory changes in various jurisdictions.

Finally, in recent years the industry has experienced significant consolidation of VOCCs as well 

as a reshuffling of alliances, largely as an effort to achieve cost savings through synergies. The 

FMC has witnessed the filing of new types of agreements - especially marine terminal 

agreements - that address issues such as traffic congestion, terminal operational efficiencies, 

and infrastructure funding. These nontraditional agreements tend to involve industries 

(drayage trucking and rail service), operations (pooling of chassis), and issues (public health, 

infrastructure finance) that require the development, by agency staff, of additional 

information sources and areas of expertise. Not infrequently, these nontraditional agreements 

have potentially significant pricing and service consequences. To the extent that the filing of 

nontraditional agreements increases in coming years – which seems to be the likely trend –

analysis and oversight of activities under these filed agreements will continue to affect the 

agency’s limited resources.