Federal

Maritime 

Commission

Fiscal Year 2017 Budget Request 

February 9, 2016

Submitted to the Appropriations Committees

(Subcommittees on Transportation, Housing and Urban 

Development, and Related Agencies)

Chairman Mario Cordero
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[i]

Table of Contents

The FMC’s Mission ...........................................................................................................................................ii

Regulatory Overview.........................................................................................................................................1

Proposed Appropriation Language, Salaries and Expenses ........................................................................3

Fiscal Year 2017 Budget Request ....................................................................................................................4

FMC Strategic Plan and the FY 2017 Budget Request............................................................................5

Strategic Goal 1: Maintain an efficient and competitive international 

ocean transportation system....................................................................................................................8

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

deceptive practices and resolve shipping disputes...............................................................................9

Commission-wide Action Items - Supporting the President’s Management

Agenda and Government-wide Priorities...............................................................................................11

FY 2015 Accomplishments............................................................................................................................17

Strategic Goal 1: Maintain an efficient and competitive international 

ocean transportation system..................................................................................................................17

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

practices and resolve shipping disputes...............................................................................................21

Additional 2015 Accomplishments...............................................................................................................25

Information Technology ............................................................................................................................25

Representative Rulemakings, Adjudications, and Litigation .................................................................26

Appendices........................................................................................................................................................31
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[ii]

The FMC’s Mission

To foster a fair, efficient, and reliable

international ocean transportation system,

and to protect the public from

unfair and deceptive practices.

Achieving this mission involves fulfilling two primary strategic goals:

1. Maintain an efficient and competitive international ocean 

transportation system.

2. Protect the public from unlawful, unfair and deceptive 

practices and resolve shipping disputes.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[1]

Regulatory Overview

The Federal Maritime Commission (FMC or Commission) is an independent agency which regulates 

oceanborne transportation in the foreign commerce of the United States. The bipartisan Commission 

is directed by five Commissioners appointed for staggered five-year terms. The President designates 

one Commissioner to serve as Chairman, the Chief Executive, and Administrative Officer of the 

agency. In 2014, the Howard Coble Coast Guard and Maritime Transportation Act, Public Law (P.L.) 

113-281, amended the organization of the Commission to add term and vacancy limitations. 

The FMC administers the Shipping Act of 1984 (1984 Act, Shipping Act) as amended by the Ocean 

Shipping Reform Act of 1998 (OSRA); section 19 of the Merchant Marine Act, 1920 (1920 Act); the 

Foreign Shipping Practices Act of 1988 (FSPA); and sections 2 and 3 of P.L. 89-777 (46 U.S.C. §§ 

44102 and 44103).

The FMC is charged by Congress with many responsibilities, including: (1) monitoring the activities 

of ocean common carriers, marine terminal operators (MTOs), ports, and ocean transportation 

intermediaries (OTIs) that operate in the U.S. foreign commerce to ensure just and reasonable 

practices; (2) reviewing competitive activities, such as rate discussion agreements, carrier alliances, and 

other agreements among common carriers and/or MTOs; (3) licensing qualified OTIs in the U.S., and 

ensuring that all OTIs (including foreign OTIs) operating in the U.S. trades are bonded or maintain 

other evidence of financial responsibility; (4) maintaining trade monitoring, enforcement and dispute 

resolution programs to assist regulated entities in achieving compliance, and to detect and remedy 

malpractices and violations of the prohibited acts set forth in section 10 of the 1984 Act; (5) providing 

dispute resolution services to the industry and consumers; (6) monitoring the laws and practices of 

foreign governments for discriminatory or otherwise adverse actions impacting shipping conditions 

in U.S. trades, and imposing appropriate remedial action pursuant to section 19 of the 1920 Act or 

FSPA; (7) enforcing special regulatory requirements applicable to carriers owned or controlled by 

foreign governments; (8) ensuring that passenger vessel operators (PVO) demonstrate adequate 

financial responsibility to indemnify passengers in the event of non-performance of voyages or 

passenger injury or death pursuant to 46 U.S.C. §§ 44102 and 44103; (9) processing and reviewing 

agreements, service contracts, and service arrangements pursuant to the 1984 Act for compliance with 

statutory requirements; and (10) reviewing common carriers’ commercially-published tariff systems 

for accessibility, accuracy, and reasonable terms.

The FMC is a small agency tasked with a large mandate, which provides for challenges in balancing 

workloads and required functions. The Commission maintains a specialized workforce of highly 

experienced economists, attorneys and experts in ocean transportation and government 

administration. In addition to the Commissioners’ offices, the FMC is organized into 15 offices and 

bureaus. The specific roles and responsibilities of each office of the Commission can be found at

http://www.fmc.gov/about/orgchart.aspx. 

In Fiscal Year 2015, the Commission sought Congressional approval to reorganize the reporting 

structure of its field offices. After further review, the Commission does not plan to move forward 

with a reorganization at this time. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[2]

 

COMMISSIONER

Rebecca F. Dye

2016 2017 

1 2

 

COMMISSIONER 

Richard A. Lidinsky, Jr.

2016 2017 

2 2

 

COMMISSIONER

 William P. Doyle

2016 2017 

2 2

CHAIRMAN

Mario Cordero

2016 2017 

5 5

Office of the 

Inspector General

2016 2017

2 2 

Office of Equal 

Employment 

Opportunity

2016 2017 

1 1

Office of the 

Managing 

Director

2016 2017 

8 8

 

COMMISSIONER

Michael A. Khouri

2016 2017 

2 2

Office of the 

General 

Counsel

2016 2017 

10 10

Office of the 

Secretary

2016 2017 

8 8

Office of 

Administrative 

Law Judges

2016 2017 

4 4

Office of

Consumer 

Affairs & Dispute 

Resolution 

Services

2016 2017 

7 7

Office of 

Budget and 

Finance

2016 2017 

4 5

Office of 

Human 

Resources

2016 2017 

5 5

Office of 

Management 

Services

2016 2017 

5 5

Office of 

Information 

Technology

2016 2017 

8 8

Bureau of 

Certification and 

Licensing

2016 2017 

17 17

Bureau of 

Enforcement

2016 2017 

11 11

Bureau of Trade 

Analysis

2016 2017 

18 19

Area Representatives

Houston 

Los Angeles 

New Orleans 

New York/New Jersey 

Seattle/Tacoma 

South Florida

2016 2017 

10 11

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

Total FY 2016 Enacted: 130 FTEs 

Total FY 2017 Request: 134 FTEs

Administrative

Direction Technical

Direction
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[3]

Proposed Appropriation Language, Salaries and Expenses

“For necessary expenses of the Federal Maritime Commission as authorized by section 201(d) of the 

Merchant Marine Act, 1936, as amended (46 U.S.C. 307), including services as authorized by 5 U.S.C. 

3109; hire of passenger motor vehicles as authorized by 31 U.S.C. 1343(b); and uniforms or allowances 

therefore, as authorized by 5 U.S.C. 5901 - 5902, $25,660,000 $27,490,000: Provided, That not to 

exceed $2,000 shall be available for official reception and representation expenses.” (Transportation, 

Housing and Urban Development, and Related Agencies Appropriations Act, 2016).
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[4]

Fiscal Year 2017 Budget Request

The FMC’s Fiscal Year (FY) 2017 Budget Request is $27,490,000, to support 134 full time equivalent 

(FTE) positions. This is a net increase of $103,000 over the Commission’s 2016 President’s Budget 

level and $1,830,000 over the FY 2016 enacted appropriation level. As the regulatory agency 

responsible for maintaining fair and reliable practices in the $980 billion international ocean 

transportation industry, the Commission fulfills a large mandate. This request has, whenever possible, 

considered possible budgetary cutbacks to its spending while maintaining the performance and quality 

of the FMC’s mission and programs. 

The Commission requests $1,082,000 for necessary salary and benefit increases for its existing 

workforce. Additionally, an increase of $748,000 is requested for administrative expenses, primarily 

to maintain the FMC’s IT systems. The FMC has expended significant resources to improve its IT 

systems, improving reliability and cybersecurity readiness throughout. The FMC is committed to 

continuing this progress through an ongoing multiyear IT systems enhancement plan. In addition to 

improving the security and reliability of its networks, these improvements will advance the 

Commission’s internal business processes, expanding research and analysis capabilities, and will 

provide better public accessibility to FMC information. The FMC’s continuing transition to 

Enterprise Content Management (ECM) technology is on target to drastically improve turnaround 

times and reduce stakeholder application processing/registration errors due to current business 

processes which are labor and paperwork intensive. The new technology will enable instant access to

documents, data, and the real-time status of applications, licenses, and registrations. It will also provide 

a modern and efficient business process for applicants and staff, saving time and money while also 

enabling the FMC to keep pace with the electronic business practices of the industries it regulates. 

Upon development of the new business processes, FMC senior leaders will revise the Commission’s

FY 2014-2018 Strategic Plan to reflect new performance goals. In FY 2016-2017, the Commission 

will complete and publish a revised Strategic Plan and IRM Plan based on a review of the data collected 

and the metrics utilized. The Commission’s senior leaders will look at whether alternate or additional 

data will best match the agency’s strategic goals and objectives.

The FY 2017 budget request reflects a projected workforce of 134, an increase of 4 FTEs over the 

FY 2016 FTE level. The FMC strives to accomplish its strategic goals by improving efficiencies and 

utilizing its existing resources. The FMC is proud of its workforce; its dedicated staff plays a major 

part in its success in maintaining an efficient and competitive international ocean transportation 

system and protecting the public from unlawful, unfair and deceptive practices. The FMC has 

developed internal agency teams to improve workplace satisfaction while increasing productivity. 

The Commission’s budget request primarily covers estimated costs for mandatory operational needs. 

As reflected in the following chart, 98 percent of the FMC’s FY 2017 Budget Request provides for 

payroll expenses, mandatory rent, telephones, interagency services, and important commercial 

contracts. The remaining 2 percent is comprised of supplies and equipment (including IT hardware 

and software) and official travel. Funding resources needed for Fiscal Years 2015 through 2017 by 

object class are provided in Appendix C. To the extent possible, costs have been straight-lined or 

reduced. Continued investments are needed in mission-critical technologies for the Commission to 

effectively and efficiently carry out its statutory duties.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[5]

 

The FY 2017 Budget Request includes a number of charts to explain the funding and FTE resources 

needed to meet the Commission’s mission and statutory mandate. Specifically, Appendices A and B 

provide detailed funding and FTE requirements at the program level. Appendix C categorizes the 

funding resources needed for Fiscal Years 2015 through 2017 by object class. Appendix D provides 

funding by program areas and the relationship of the Commission’s Obligations to Outlays by Fiscal 

Year. Appendix E details the FMC’s Strategic Goals, Objectives and Performance Measures. 

Appendix F provides the Commission’s Workload Summary statistics, Appendix G is an Evidence 

Template for agency decision making, and Appendix H is the Certification of the Office of the 

Inspector General’s FY 2017 Budget Request.

FMC Strategic Plan and the FY 2017 Budget Request

The FMC serves a vital role in the U.S. ocean shipping industry and will continue to positively impact 

the nation’s oceanborne transportation system in the coming years. The FMC’s Strategic Plan, the 

blueprint for all Commission activities, focuses on maintaining a competitive ocean transportation 

system, facilitating America’s international commerce, and encouraging reliable liner service for U.S.

exporters and importers. The FMC’s mission directly supports the President’s commitment to 

economic growth and job creation. Commission programs related to monitoring international 

oceanborne trade conditions advance the President’s National Export Initiative by promoting access 

to foreign markets for American exports and efficient supply chains for the importation of goods for 

domestic production and consumption. The Commission also supports the President’s Management 

Agenda and government-wide initiatives by increasing efficiencies, customer service initiatives, and 

Salaries & Benefits

74%

Travel & 

Transportation 1% Rent & 

Communications 

14%

Government

Services

5%

Commercial Services

5%

Supplies & 

Equipment

1%

Allocation of Requested Funds
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[6]

availability of information to the public to make a positive difference in the lives of American people 

and the economy. 

The Commission regularly provides education to the shipping industry and other government entities 

to inform these groups on the statutes it implements, as well as to address any issues that may arise. 

Commissioners and staff address various industry groups as speakers and panelists to provide 

information on the latest trends and issues related to Commission activities.

FY 2015 FY 2016 FY 2017

Actual Enacted Request

FTE: Headquarters & Field 116.54 130.00 134.00

Cost: Salaries & Benefits $17,354,671.83 $19,245,000.00 $20,327,000.00

Non-Personnel Expenses $8,287,703.12 $6,415,000.00 $7,163,000.00

Total Cost $25,642,374.95 $25,660,000.00 $27,490,000.00

$6,909,902.87

Executive Summary

FY 2017 FTE by FMC Strategic Goal

Strategic Goal 2

$20,580,097.13

Strategic Goal 1

32.82 101.18

Federal Maritime Commission

FY 2017 Cost by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

Strategic Goal 1

Maintain an efficient and competitive international 

ocean transportation system

The Commission has two strategic goals. The first goal encompasses, among other things, the vital 

tasks of reviewing and monitoring carrier and MTO agreements, service contracts and negotiated 

service arrangements (NSAs), and monitoring foreign-shipping practices. During FY 2015, the 

Commission received 258 new agreements, 51,109 service contracts and 653,315 contract 

amendments, 901 NSAs and 1,790 amendments to NSAs for review. The second strategic goal has 

the broader mandate of protecting the shipping public. As reflected in the above table, of the total 

FY 2017 request, $6,909,903 and 33 FTEs are needed to support Strategic Goal 1 and $20,580,097

and 101 FTEs are needed to support Strategic Goal 2. Commission-wide action items, addressed on 

page 11, identify the FMC’s ongoing commitment to improve its infrastructure and open data to the 

public and stakeholders.

As part of the FMC’s FY 2014-2018 Strategic Plan, the Commission is committed to integrating 

evidence into its strategic decision-making, and tracking its progress through its performance metrics. 

An Evidence Template, demonstrating the FMC’s progress and barriers, is included as Appendix G. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[7]

Strategic Goal 

#1 

32.82

Strategic Goal 

#2 

101.18

FTE Request by Strategic Goal

Maintain an efficient and 

competitive international 

ocean transportation 

system

Protect the public from unlawful, 

unfair and deceptive ocean 

transportation practices and resolve 

shipping disputes

Strategic Goal 

#1 

$6,909,903

Strategic Goal 

#2 

$20,580,097

Funding Request by Strategic Goal

Maintain an efficient and 

competitive international 

ocean transportation 

system

Protect the public from unlawful, 

unfair and deceptive ocean 

transportation practices and 

resolve shipping disputes
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[8]

Strategic Goal 1: 

Maintain an efficient and competitive international ocean transportation 

system 

Objective: Enhance efficiency in the trades through the use of 

asset sharing authority under the Shipping Act of 

1984

Competition and Foreign Practices

The Commission reviews and monitors carrier and MTO agreements to enhance trade efficiency 

through the use of various types of agreement authority. Agreement filings in 2016 and 2017 are 

expected to number approximately 250 per year (see Appendix F for these and other workload 

statistics). Agreement activity during FY 2015 significantly increased. In addition to many others, 

several important vessel sharing agreements were approved in major east-west trades; a discussion 

agreement between two ports was initiated to improve their competitiveness with other U.S. and 

Canadian ports; and several major agreements were approved to address efficiency of operations at 

U.S. West Coast port facilities to include congestion issues, terminal productivity, chassis availability 

and usage, and to improve drayage truck turn times.

During FY 2017, the Commission will continue to rapidly handle economic assessments and review 

filed agreements. Additionally, the Commission will monitor key U.S. trade lanes and the competitive 

impact of agreements. The Commission will closely oversee the increasing operational cooperation 

occurring among ocean carriers as the global liner trades continue to rapidly change. With increasing 

pressure on consolidation in the industry, port congestion, rising energy costs, and environmental 

concerns, the Commission is particularly attentive to the impact on the nation’s exporters and their 

need for efficient and competitive ocean transportation in reaching foreign markets. 

The Commission monitors foreign laws and practices to determine whether there are any unjust nonmarket barriers to trade, and takes action where appropriate. It also classifies controlled carriers 

subject to section 9 of the Shipping Act of 1984. Common carriers that are owned or controlled by 

foreign governments are required to adhere to certain requirements under the 1984 Act, and their 

rates are subject to Commission review. The Commission is particularly concerned with foreign 

restrictions that unjustly disadvantage U.S. interests.

Vessel-operating common carrier (VOCC) service contracts and non-vessel-operating common 

carrier (NVOCC) negotiated service arrangements (NSAs) are required to be filed with the 

Commission. Under service contracts and NSAs, shippers make a commitment to provide a certain 

volume or portion of cargo over a fixed period of time, and carriers and NVOCCs commit to a 

specified rate and a defined service level. These confidential contracts and arrangements are filed into 

the Commission’s automated Service Contract Filing System (SERVCON). 

During each of Fiscal Years 2016 and 2017, the Commission expects to receive SERVCON filings of 

approximately 51,000 service contracts and 600,000 contract amendments, 900 original NSAs, and 

1,800 amendments.

In Fiscal Years 2016 and 2017, staff will continue to monitor service contract, tariff, and agreement 

activities, prepare reports and economic analyses on developments and issues in key U.S. trades, 

monitor key U.S. trade lanes, review the activities of controlled carriers, and respond to inquiries and 

informal complaints. Staff will continue to review and analyze the competitive impact of agreements 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[9]

and monitor the activities of agreement parties, particularly focusing on issues of adequate vessel 

capacity and equipment availability. The FMC will continue to work with U.S. Customs and Border 

Protection (CBP) to develop the Automated Commercial Environment/International Trade Data 

System (ACE/ITDS) to advance the nation’s security interest and protect U.S. ports. It will also 

continue to participate in the Maritime Data Working Group and the Interagency Action Team for 

the National Committee on the Marine Transportation System, furthering our nation’s maritime 

interests. 

Also in Fiscal Years 2016 and 2017, the Commission’s Office of Information Technology (OIT) plans 

to upgrade IT systems, subject to budgetary requirements, with respect to the agreement and trade 

monitoring programs, in order to improve external users’ filing processes as well as continuing to 

streamline internal business processes and expand research capabilities. The Commission also plans 

to optimize the internal architecture of the SERVCON system to allow the search functionality to 

keep pace with the rapid accumulation of records in the system, and seeks to improve automation of 

internal Form FMC-1 processes to increase efficiency and agency ability to maintain an efficient and 

competitive international ocean transportation system. 

Strategic Goal 2: 

Protect the public from unlawful, unfair and deceptive practices and 

resolve shipping disputes 

Objective 1: Identify and take action to end unlawful, unfair and 

deceptive practices 

The Commission pursues this goal with both enforcement and compliance programs. In Fiscal Years 

2016 and 2017, the FMC will continue enforcement actions against those who pursue marketdistorting, fraudulent, or anti-competitive practices harmful to the industry and the public. The 

Commission will advance initiatives aimed at VOCCs and NVOCCs engaged in unfair service 

contracting practices, particularly those practices which permit improper entities, such as unlicensed 

OTIs, to compete unlawfully with carriers and OTIs operating in compliance with U.S. laws. 

The program to monitor and audit ocean common carrier, NVOCC, and ocean freight forwarder 

(OFF) operations continues to be a Commission focus. This program conducts approximately 140 

OTI audits each year to review the operations of licensed and bonded OTIs to assist them in 

complying with statutory requirements and the Commission’s regulations. It emphasizes correction 

of routine tariff matters and prompt compliance with reporting, licensing, and bonding requirements. 

The FMC remains active in security initiatives as they relate to U.S. ocean commerce. The 

Commission is working to coordinate the use of available database systems with other agencies 

engaged in homeland security to improve identification of entities providing and utilizing maritime 

transportation services. To facilitate these activities, the FMC has executed a Memorandum of 

Understanding (MOU) with U.S. Customs and Border Protection providing for more efficient 

utilization of existing systems and services. The FMC also has an active MOU with the Census Bureau, 

U.S. Department of Commerce, providing the FMC with access to the Census’ Automated Export 

System (AES) database. These MOUs allow the FMC to handle and use confidential U.S. export 

shipment data to accomplish its mission and to protect the nation’s security interests. The FMC also 

supports the Nation’s economic and security interests by partnering with the National Intellectual 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[10]

Property Rights Coordination Center (IPR Center), a Department of Homeland Security-led 

partnership of 21 Federal and international agencies targeting intellectual property- and trade-related 

crimes.

Objective 2: Prevent public harm through licensing and financial 

responsibility requirements

The FMC licenses OTIs as mandated by the Shipping Act, and provides financial certification of 

PVOs. OTIs are transportation middlemen for oceanborne cargo moving in the U.S.-foreign trades. 

An OTI applicant must establish to the FMC that it has the necessary character to render OTI services 

as well as to establish its financial responsibility by means of a bond, insurance, or other instrument, 

and demonstrate a minimum of three years of experience in ocean transportation intermediary 

activities in the United States. 

There are approximately 6,100 domestic and foreign OTIs regulated by the Commission. In FY 2015, 

the FMC processed about 650 licensing transactions. Currently 968 ocean freight forwarders (OFFs); 

1,724 U.S.-based NVOCCs; 1,998 joint NVOCCs/OFFs; and 74 foreign-based NVOCCs hold active 

OTI licenses. An additional 1,315 foreign-based NVOCCs are registered and maintain proof of 

financial responsibility with the Commission. 

The FMC also oversees the PVO financial responsibility program. Evidence of financial responsibility 

is required for vessels that have berth or stateroom accommodations for 50 or more passengers, and 

embark passengers at U.S. ports and territories. Certificates of performance cover financial 

responsibility for the indemnification of passengers for non-performance of transportation. This 

requirement also helps prevent unscrupulous or financially weak operators from serving U.S. ports. 

The current PVO program encompasses 213 vessels and 48 passenger vessel operators with aggregate 

evidence of financial responsibility coverage in excess of $544 million for non-performance and over 

$743 million for casualty. The FMC protects the cruising public by offering information and guidance 

throughout the year on passenger rights and obligations regarding monies paid to cruise lines that fail 

to perform voyages.

The FMC anticipates that the number of PVOs in the program is likely to remain constant in Fiscal 

Years 2016 and 2017. PVO performance certificates are valid for up to five years. In Fiscal Years 

2016 and 2017, the Commission will: (1) review the impact of recent rule changes affecting the 

passenger vessel program and explore alternatives to enhance PVO monitoring procedures; (2) review 

procedures regarding OTI licensing applications; and (3) continue efforts to develop, enhance, and 

implement an improved electronic application process for both OTIs and PVOs.

Objective 3: Enhance public awareness of agency resources, 

remedies and regulatory requirements

The Commission offers periodic seminars and instructional opportunities to educate consumers and 

regulated entities regarding regulations, shipping trends, best practices, and the effective use of its 

services to resolve shipping disputes. The FMC also publishes, in print and on its website, information 

designed to educate the industry and the shipping public. In FY 2015, the Commission put forward 

reports on congestion and demurrage and detention issues facing U.S. shippers and the industry. 

Brochures and advice on topics such as household goods moves and cruise service issues are also 

available. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[11]

Efforts to further expand awareness of the Commission’s Alternative Dispute Resolution (ADR) 

services will continue through internal and external education programs, training, and other 

appropriate methods. Use of mediation will be promoted to assist in resolving formal proceedings, 

service contract matters, and other significant disputes. 

In FY 2017, the FMC intends to develop a plan to improve the design, usability and platform of the 

website docket library and historical document repository. This plan will lay the groundwork for 

increased availability of public documents, including Sunshine Act meeting materials, on the 

Commission’s website. 

Objective 4: Impartially resolve international shipping disputes 

through alternative dispute resolution and 

adjudication

Informal dispute resolution is ongoing at the FMC, and valued by both the industry and consumers. 

The Commission will continue to facilitate the resolution of informal complaints and disputes, and 

investigate unlawful practices by carriers, MTOs, and OTIs. In their outreach roles, the Office of 

Consumer Affairs and Dispute Resolution Services (CADRS) and the FMC’s Area Representatives 

(ARs) will educate maritime transportation users and providers on FMC statutes and regulations, assist 

shippers with access to transportation services, and help address any transportation disputes that may 

arise, such as shipper concerns regarding demurrage charges, which are charges related to the storage 

of containers at marine terminals beyond the allotted free time.

The FMC offers both facilitation and arbitration services to the industry and shipping public to resolve 

disputes. The Commission’s alternative dispute resolution offerings save the public time and 

resources, often resolving a dispute without costly legal proceedings. Annually, the Commission 

handles nearly 700 disputes, and supports the trend for mediation and collaborative dispute resolution 

when feasible. The Commission requires parties involved in formal Commission docketed 

proceedings to attend mandatory mediation conferences. 

The Commission’s Administrative Law Judges (ALJs) are independent decision makers whose 

independence is protected by the Administrative Procedure Act, 5 U.S.C. Subchapter II. FMC ALJs 

resolve cases involving alleged violations of the Shipping Act and other laws within the Commission’s 

jurisdiction. Cases are initiated by private parties or by the Commission (represented by the Bureau 

of Enforcement to seek civil penalties for law violations). 

Effective November 5, 2014, the Commission amended 46 C.F.R. Part 502, Subpart S, to transfer 

authority to the Chief Administrative Law Judge to assign small claims officers to resolve small claims 

complaints informally. The claims, valued up to $50,000, are resolved by a Small Claims Officer. 

Commission-wide Action Items - Supporting the President’s Management 

Agenda and Government-wide Priorities

The Commission operates responsively and transparently to serve the public. The FMC is committed 

to smart investments and management strategies that deliver an effective and efficient government 

that reacts to the rapidly changing needs of its citizens and supports economic growth. The 

Commission is implementing methods supporting the four key pillars of the President’s Management

Agenda: Effectiveness, Efficiency, Economic Growth, and People and Culture (in the Federal 

workforce). 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[12]

Effectiveness through Enhanced Customer Service

The FMC provides direct services to the public through a number of offices and programs. The 

Commission’s Office of Consumer Affairs and Dispute Resolution Services receives time-sensitive 

requests for assistance (through e-mail and calls to its toll-free number) from shippers and carriers. 

The FY 2017 budget submission provides for maintaining 7 full-time CADRS employees. Similarly, 

the Commission’s Area Representatives, strategically located at key maritime ports (Southern 

California, Seattle, New York, Houston, New Orleans, and South Florida) commonly operate as the 

front line for questions and issues facing the industry. The Commission’s Office of the Secretary 

updates the FMC’s website and social media, providing time sensitive and important information to 

the public. The FMC also responds to requests for information from the press and the public, 

delivering key information directly to potentially affected shippers through on-camera interviews and 

print media. 

The FMC plays an important role in improving international commerce and assisting with industrydriven solutions to ocean shipping issues. In FY 2015, the Commission released several reports 

analyzing the problem of port-related congestion and demurrage and detention, and continues to 

develop strategies to create solutions to industry-related problems. The FMC will continue its 

important work to facilitate solutions to ocean shipping challenges, and continue to foster economic 

growth through improved shipping and infrastructure practices. 

Efficient Government - Reducing Regulatory Burden and 

Improving Necessary Information Collection 

The FMC systematically reviews its processes and regulatory requirements for efficiency and 

effectiveness. As economic conditions alter the state of our trades, regulations are revised to respond 

to new conditions. As part of an ongoing Plan for Retrospective Review of Existing Rules (initiated 

in FY 2012), the FMC is reviewing, evaluating, and making recommendations for improvements to its 

regulatory requirements concerning the filing and processing of agreements, quarterly monitoring 

reports, and agreement meeting minutes. A review of the regulations governing service contracts and 

NVOCC service arrangements continued in FY 2015. Recommendations were developed and 

presented at a meeting for the Commission’s consideration in October 2016. It is anticipated that an 

Advance Notice of Proposed Rulemaking will be sent to the Commission in February 2016. A review 

of the Marine Terminal Operator Schedule regulations is underway and, in FY 2016, a review of the 

Carrier Automated Tariff regulations is scheduled.

In Fiscal Years 2016 and 2017, the Commission will: (1) review the initial impact of recent rule 

changes affecting the passenger vessel program and explore alternatives to enhance PVO monitoring 

procedures; (2) review suggested amendments to the regulations regarding OTI licensing and financial 

responsibility requirements in light of changed industry circumstances; (3) continue efforts to develop, 

enhance, and implement an improved electronic application process for both OTIs and PVOs; (4) 

review the Marine Terminal Operator Schedule regulations; and (5) review the Carrier Automated 

Tariff regulations.

The Commission relies on evidence-supported policy and program decision-making in designing and 

implementing its current FY 2014-2018 Strategic Plan. Appendices E, Performance Measures by Strategic 

Goal, F, Workload Summary, and G, Evidence Template, demonstrate the FMC’s commitment to smart 

government with measurable goals. These goals help the FMC to properly allocate its resources to 

effectively drive its mission. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[13]

Effectiveness and Efficiency thorough Open Data / Applying 

Innovative Technologies

The FMC is committed to the multiyear enhancement of its IT systems, which will ultimately make it 

faster and easier for individuals and businesses to complete transactions and have positive experiences 

with the government. As indicated previously, much of this work involves a transition to the use of 

Enterprise Content Management technology. In connection with increasing the accessibility to FMC 

information, the Commission began implementing a plan to upgrade the website and document 

repository in Fiscal Year 2015.

Planned FMC actions that open up government data for FY 2016 and 2017 include efforts to replace 

the aging Regulated Persons Index (RPI), with a modernized enterprise system; creating a critical 

database that will contain up-to-date records of licensed OTIs (OFFs and NVOCCs), ocean common 

carriers, MTOs and other entities, which is used by FMC staff, the shipping public, and other 

governmental security and trade entities. The modernization of this system, along with continued 

investments in public information and education, will give the public access to useful information to 

make critical decisions on the movement of goods by sea.

The Commission will also upgrade the FMC’s current internet hosting, maintenance, and public 

document repository solution to include launching a newly designed website that will implement 

technology to make Commission information more easily accessible via mobile devices; update the 

public on current issues in the trade via consumer alerts and public service announcements published 

on the FMC website and other social media; provide continuous updates to key public information 

including website publication of the docketing activity and documents for cases filed before the 

Commission; provide public access to filed agreements through the FMC’s online agreement library; 

and provide the public with key FMC studies and economic analysis of shipping industry trends.

Plans that will advance the Commission’s Information Resources Management Strategic Plan in FY 

2016 and 2017 include:

 continuation of the plan to develop and deploy ECM technology, which will consolidate 

the OTI license application and registration renewal processes, enhancing the ability of 

applicants to file electronically, reducing errors and enabling staff to significantly increase 

efficiency in processing applications. This improvement will support the ability of 

American entrepreneurs to enter the industry and offer needed services to the public. This 

system will also provide benefits to the public seeking information about regulated entities;

 continuation of agency progress to build and deploy a new Service Contract Filing System 

for ease of filing, and optimize the internal architecture of SERVCON, particularly the 

search functionality needed to keep pace with the rapid accumulation of records. This 

improvement will facilitate U.S. trade and allow shippers and carriers to more rapidly 

respond to real-time business needs;

 development of a plan to automate the filing of applications for certificates by PVOs for 

more efficient processing, and to permit applicants to use available technology to easily 

interact with the Commission to complete their Congressionally-mandated requirements; 

and

 migration of the current Internet site from the third party vendor that currently hosts the 

website to Microsoft Azure tenant.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[14]

People and Culture – Empowering Employees

The FMC’s employees achieve its mission. The FY 2017 budget request allocates 74 percent to directly 

compensate its workforce. The FMC’s employees comprise a small, highly educated, and capable 

group consisting of ocean shipping experts and administrative professionals. To ensure that FMC 

continues to attract and maintain the skillsets necessary to provide exceptional service to the public, 

the FMC has made commitments to improve employee satisfaction, provide relevant training for job 

skills and employee professional growth, and improve workplace flexibilities. 

Workplace Satisfaction 

The Commission recognizes that 

performance is enhanced when 

employees are satisfied with their 

employer and the work that they do. 

The FMC participates in the Federal 

Employees Viewpoint Survey 

(FEVS) to gather information on 

employee satisfaction. The FEVS, 

administered by the Office of 

Personnel Management (OPM), 

measures employee satisfaction and 

changes in employee engagement 

and workplace environment. In 

recent years, the FMC has made 

improving workplace satisfaction 

and employee morale a priority 

objective. The FMC is committed to 

positively improving workplace 

satisfaction in terms of leadership, 

transparency, matching skills to its mission, and work/life balance. Agency-wide employee teams to 

address employee suggestions, telework, and other workplace initiatives have been launched. Senior 

leadership continues to encourage involvement and provide opportunities for participation in agencysponsored programs.

The Commission received an award for being the 2015 Most Improved Small Agency when the Partnership 

for Public Service and Deloitte released their 2015 Best Places to Work in the Federal Government

report in December 2015.

The 2015 Best Places to Work report analyzes data from FEVSand provides rankings in 14 categories. 

The Commission achieved positive gains in all 14 categories measured. More than half of those 

categories saw double digit improvement while Effective Leadership (Empowerment) saw the greatest 

gain with a 19.7 point increase over 2014. Scores for Strategic Leadership, Training and Development, 

and Support for Diversity were among those measures receiving significant increases.

Training

The FMC remains committed to offering its employees job and professional training 

opportunities. Training funds were cut significantly during sequestration, but during FY 2015, the 

FMC was able to offer a large number of employees training in work-related areas. The FMC offers 

Left to right: Mary Thien Hoang, Chairman Mario Cordero, Commissioner Rebecca F. Dye, 

Todd Cole. Photo credit: Aaron Clamage. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[15]

online training through a commercial provider as a cost-effective way to ensure that all staff have 

access to appropriate training year round. Training classes include areas such as IT technical skills, 

project management, communication, leadership, management, and writing. Commission offices, 

such as the Office of Human Resources and the Office of Information Technology, regularly offer 

staff training on topics such as performance management, telework readiness, and new 

technologies. In collaboration with the Small Agency Council, training on subjects such as business 

writing, emotional intelligence, and effective briefing skills are made available to employees. The 

Commission also provided diversity training to all staff in FY 2015. The Commission’s supervisors 

and managers completed whistleblower protection training and crucial conversations training as part 

of their leadership development.

Work Flexibilities: Alternate/Flexible Schedules and Telework

The FMC offers a number of workplace flexibilities which increase employee productivity, such as 

working a compressed schedule or working a flexible schedule (with varying start times during the 

Commission’s “core” business hours). Approximately 55 percent of the staff participate in alternate/

flexible work schedules. 

The FMC supports telework. Through a staff project team, extensive work and research was 

completed, feedback was collected from staff at all levels, and a new, modernized telework policy and 

employee telework agreement were created. The draft plan was distributed for employee feedback, 

and staff completed training on the new plan in FY 2015. The finalized plan became effective early 

in FY 2016. The plan removes restrictions on the number of days an employee may request telework, 

removes restrictions on a manager’s ability to telework on a regular basis, empowers managers to 

decide whether and how much telework to allow, and, consistent with OPM guidance, requires 

telework-ready employees to telework when OPM announces that Federal offices will be closed. 

Managing Real Property Needs – “Freezing the Footprint”

The FMC is committed to working in partnership with the General Services Administration (GSA) to 

act as steward to government resources and better align the size of Federal real property assets with 

actual program needs. In FY 2015, the FMC decreased its physical storage needs, returning to GSA

910 square feet at its headquarters location. The FMC is in the planning stages of reconfiguring its 

headquarters space, and has identified a further reduction of approximately 400 square feet of space 

that it plans to return to GSA in FY 2016. The FMC will continue to evaluate its space needs.

Enhancing Shared Services 

The FMC uses shared services to handle several of its fiscal and personnel-related administrative 

functions to achieve efficiencies and cost-savings when feasible, and reviews each service regularly to 

guarantee the best value is provided to the public. The Commission currently uses the following 

shared services:

National Finance Center 

FMC utilizes the National Finance Center (NFC) for human resources processing services (including 

payroll and time and attendance (T&A) transaction processing, managing employee debt, and 

separation payments). FMC is in coordination with NFC to transition to a new more fully automated 

time and attendance system, PayCheck8, in FY 2016-2017. PayCheck8 is a system that gathers time 

and attendance data from the user, validates it with respect to the business rules, presents it for user 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[16]

verification, and forms it into files which are transferred to the NFC for processing in the production 

of payroll reports. 

Office of Personnel Management (OPM) 

The FMC utilizes OPM’s services for staffing, recordkeeping, and management of personnel files, and 

to provide recruitment services including the recruitment, assessment, referral, and onboarding of 

candidates. This has supplemented the FMC’s in-house capabilities during a period of increased 

hiring, which occurred as a result of backfilling several years’ worth of positions lost due to attrition 

and retirements, including that of several of its Human Resource (HR) staff. These positions were 

not timely filled due to sequestration. The FMC will reduce its use of OPM’s recruitment services in 

FY 2016 and FY 2017, as demand will be met by internal staffing capabilities. This use of internal 

resources will allow for improved hiring timelines and result in a cost savings for the Commission.

In the first quarter of FY 2016, the FMC transitioned from its hard-copy personnel filing system to 

OPM’s electronic Official Personnel File (eOPF) services. The eOPF is an electronic version of the 

paper OPF, and is a system for accessing the electronic folder online. The eOPF system combines 

document management with workflow capabilities, and allows each employee to have an electronic 

personnel folder instead of a paper folder. Benefits of eOPF include immediate access to personnel 

forms and information for a geographically dispersed workforce, e-mail notifications to employees 

when documents are added to their eOPF, a multi-level secure environment with security rules for 

sensitive information, no loss of official personnel documents due to filing or routing errors, reduced 

costs associated with storage, maintenance, and retrieval of records, electronic transfer of HR data, 

integration with the agency’s human resources information systems (HRIS), and compliance with 

OPM and Federally-mandated HR employee record management regulations. 

Bureau of Fiscal Services (BFS)

It is cost prohibitive for the FMC to purchase and maintain an integrated Federal financial reporting 

system, as it lacks the necessary funding and personnel resources. Since 2001, the FMC has been 

utilizing the Bureau of Fiscal Services, Department of Treasury, for a wide range of services. 

To operate under a fully integrated Federal financial reporting system, the FMC utilizes Oracle

platform services provided by the Administrative Resource Center (ARC) of BFS. ARC’s superior 

business model, impeccable performance record and progressive technological accomplishments have 

earned it the distinction of “Center of Excellence” in financial management by the Office of 

Management and Budget. Through this cross service provider, the FMC obtains a full range of 

financial management and accounting services, including a financial management system platform, 

vendor and employee record maintenance and reporting services, budget processing, budget reporting 

(MAX), payroll accounting services, and accounts payable (AP) and accounts receivable (AR) services, 

and procurement system platform services, including purchase and fleet card services. Additionally, 

the FMC contracts for ARC Travel services, including E-Gov Travel Service, Travel Card 

Administration and Travel Payments.

Access to ARC’s electronic systems is controlled by user IDs and passwords in accordance with 

relevant laws, regulations, security requirements, privacy acts and policies. Internet access is limited 

to the specific FMC-recognized IP address, and the connections utilize Secure Socket Layer to protect 

the sensitivity of the data being accessed.

Financial Reporting services provided by ARC will be expanded in 2017 to include required DATA 

Act reporting services.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[17]

FY 2015 Accomplishments

Strategic Goal 1: 

Maintain an efficient and competitive international ocean transportation 

system 

Objective: Enhance efficiency in the trades through the use of 

asset sharing authority under the Shipping Act of 

1984

Competition and Foreign Practices

The Commission monitors, analyzes and evaluates the competitive impact of carrier and marine

terminal agreements filed to ensure that the parties’ activities are in compliance with U.S. shipping 

statutes and regulations. In this regard, the Bureau of Trade Analysis reviews agreement monitoring 

reports, prepares economic analyses, researches and produces studies and profiles on agreements, 

carrier organizations and market conditions in a variety of trades, undertakes special projects to 

identify and research economic issues that may affect U.S. liner trades, and advises the Commission 

on international economic issues. The Commission reviews minutes of agreement meetings and 

informational reports filed by parties to potentially anti-competitive agreements such as those that 

discuss freight rates, service contract guidelines, cargo or revenue pooling, and the rationalization of 

vessel capacity. During FY 2015, the Commission received 785 sets of minutes, 612 monitoring 

reports and related reports, 115 voluntary service contract guidelines, and 2 applications for waivers 

to the minutes and/or monitoring report filing requirements.

Significant filings during FY 2015 included the agreements comprising the Ocean 3 Alliance, more 

specifically, the CSCL/UASC/CMA CGM Vessel Sharing and Slot Exchange Agreement and an 

amendment to the CSCL/UASC/YMUK/CMA CGM/PIL Vessel Sharing and Slot Exchange 

Agreement. The Ocean 3 Alliance is an interconnected network of agreements in which China 

Shipping Container Lines (CSCL), United Arab Shipping Co. (UASC), and CMA CGM will implement 

vessel sharing arrangements in the major east-west trades. As was the case with other ocean carrier 

alliances, the Commission imposed reporting requirements on the Agreement parties to assist the 

Commission in its ongoing, close monitoring of the Agreements.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[18]

The Commission also facilitated the Ports of Seattle and Tacoma’s discussion of the formation and 

terms of a joint marine cargo operating enterprise called the “Seaport Alliance” under an amendment 

to the Port of Seattle/Port of Tacoma Discussion Agreement. The second phase of this initiative, a 

final Seaport Alliance Agreement, was filed with the Commission in 2015. This initiative’s objective 

was aimed at improving the competitiveness of Seattle and Tacoma in the face of increasing 

competition from other U.S. West Coast ports, ports on the U.S. East Coast, and Canada. 

Two significant agreement filings reviewed by the Commission were related to addressing severe 

congestion at ports and terminals along the U.S. Pacific Coast. In early February 2015, the Ports of 

Los Angeles and Long Beach proposed an amendment to the Los Angeles and Long Beach Port 

Infrastructure and Environmental Programs Cooperative Working Agreement to include the 

discussion of congestion issues, and to allow for the discussion of projects and programs with multiple 

stakeholders in and around the port complex. Under the amended agreement, the ports planned to 

address port congestion as a particular focus, including establishing initiatives to increase terminal 

productivity, facilitate chassis availability and usage, and improve drayage truck turn times. The 

Commission voted to allow the Agreement to go into effect early under procedures granting expedited 

review. In addition, the West Coast Marine Terminal Operators Agreement (WCMTOA) and the 

Ocean Carrier Equipment Management Association (OCEMA) filed the Pacific Ports Operational 

Improvements Agreement citing a similar goal as its objective. The Agreement authorizes the parties 

to discuss and exchange information, and reach agreement on measures to address and improve 

efficiency of operations at U.S. West Coast port facilities to reduce congestion. While the Commission 

believes that the agreement has the potential to achieve its goal, the activities of the agreement will be 

closely monitored for any emerging competitive impacts. 

Trade Oversight and Industry Research 

In Fiscal Year 2015, the Commission administered its agreement oversight responsibilities and 

produced various reports and analyses. Activities included: 

• researching information and preparing data tables in support of the FMC’s Public Port 

Forums at four regional ports on terminal congestion and supply chain logistics;

• preparing an in-depth summary of the port forum discussions, and researching and writing 

a synthesis of issues underlying terminal congestion at U.S. ports;

• preparing a comprehensive regulatory review of 46 C.F.R. part 535 (Ocean Common 

Carrier and Marine Terminal Agreements) and related regulations in 46 C.F.R. §501.27 in 

accordance with the Commission’s Plan for the Retrospective Review of Existing Rules, 

and drafting proposed modifications to parts 501 and 535; 

• reviewing the amendment to the Los Angeles and Long Beach Port Infrastructure and 

Environmental Programs Cooperative Working Agreement that permits the ports to work 

together on port congestion problems;

• analyzing United Arab Shipping Corporation’s responses to FMC questions regarding the 

economic impact of UASC’s proposed exemption from 46 U.S.C. §40703 (effectiveness 

of the tariff rates of controlled carriers);

• drafting reporting requirements for the Ocean 3 Alliance Agreement, the 

CSCL/UASC/CMA CGM Vessel Sharing and Slot Exchange Agreement, and the 

Hanjin/UASC/CMA CGM/CSCL Vessel Sharing and Slot Charter Agreement;

• reviewing the Commission on the West Coast South America Discussion Agreement 

(amendment) that added Hapag-Lloyd and Norasia, and on the Hapag-Lloyd/CSAV 

Agreement that added a non-compete arrangement;
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[19]

• analyzing the potential competitive impact of the COSCO/KL/YMUK/HANJIN/

ELJSA Slot Allocation and Sailing Agreement (CKYHE Alliance) and drafting reporting 

requirements;

• updating the threshold analysis for the final rule in Notice of Proposed Rulemaking in 

Docket 13-05: Amendments to Regulations Governing Ocean Transportation 

Intermediary Licensing and Financial Responsibility Requirements and General Duties;

• preparing a competitive impact analysis and reporting requirements for the discussion 

agreement among MTOs formed under the Seattle Marine Terminal Operators/Port of 

Seattle Discussion Agreement; 

• preparing request for additional information questions for the Pacific Ports Operational 

Improvement Agreement, FMC No. 201227;

• conducting teleconference discussions with parties to the G6 Alliance Agreement to 

review current and anticipated operational activities;

• developing reporting requirements for the Maersk/MSC Vessel Sharing Agreement (2M 

Alliance); 

• monitoring developments under the Consolidated Chassis Management Pool Agreement 

and the availability of chassis for U.S. shippers, as carriers continue divesting their chassis 

fleets; 

• monitoring the PierPass program conducted under the West Coast MTO Agreement to 

ensure its continued conformity with the U.S. shipping statutes; 

• conducting biannual meetings with representatives of the Transpacific Stabilization 

Agreement to review developments in the U.S./Asia trade; 

• presenting a briefing of U.S. liner trades with Central and South America and the

Commission’s monitoring of rate discussion agreements operating in those trades; and 

• monitoring data and economic information on liner trade conditions and agreement 

matters. 

The Commission’s international affairs program monitors foreign shipping laws and practices that 

may have an adverse effect on the industry, and makes recommendations to the Commission for 

investigating and addressing such practices. The Commission has the authority to address restrictive 

foreign shipping practices under section 19 of the 1920 Act and the FSPA. 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.

In Fiscal Year 2015, the FMC informally pursued several matters that involved potentially restrictive 

foreign practices including new legislation, new interpretations of existing legislation, and new 

regulations of non-domestic carriers’ terminal handling charges. The FMC continued to monitor and 

participate, both formally and informally, in international agreement negotiations that could affect 

foreign-borne cargo shipments to the United States. In addition, the FMC tracked consumer inquiries 

regarding possible foreign restrictive shipping practices.

The FMC continued its international outreach efforts by attending and coordinating events with 

foreign embassies and counterparts. In FY 2015, the Commission, in conjunction with other Federal 

agencies, participated in bilateral and multilateral international negotiations and discussions on 

shipping matters. In June 2015, the FMC participated in multilateral discussions with China and the 

European Union, and discussions at the Organisation for Economic Co-operation and Development 

(OECD). In September 2015, the Commission attended a bilateral discussion with Japan. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[20]

The Commission also classifies 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. The Commission 

monitored the activities of controlled carriers in FY 2015.

Agreements, Contracts, and Tariffs

During Fiscal Year 2015, 51,109 service contracts and 653,315 contract amendments were filed into 

the SERVCON system by 91 VOCCs. The Commission processed 901 original NSAs and 1,790 

amendments filed by 93 NVOCCs, and 1,219 Form FMC-1 filings, making the locations of those 

tariffs available to the public through its website. At the end of the Fiscal Year, 5,342 active/current 

tariff locations were posted to the agency’s website. All of these documents were received, and 

properly reviewed and processed by our limited staff resources. 

Also during Fiscal Year 2015, staff conducted service contract and tariff research in support of the 

Commission’s agreement monitoring program and ad hoc research to meet the agency’s internal needs 

for information. Statistical research was also conducted, and the Commission was updated regarding 

service contracts on file that reference container freight indices. Research was also conducted on 

various surcharges, such as congestion surcharges, and low sulfur fuel surcharges, as well as General 

Rate Increases published by ocean carriers.

The Commission conducted further compliance audits of NVOCC tariffs during the Fiscal Year, 

monitoring NVOCC tariff rules in connection with the regulations governing NVOCC negotiated 

rate arrangements allowing NVOCCs to “opt out” of publicly posting rate tariffs on the internet so 

long as they use NRAs exclusively, maintain their rules tariffs free of charge, and comply with other 

requirements. At the end of Fiscal Year 2015, approximately 2,000 NVOCCs had filed prominent 

notices or a rule in their respective tariffs allowing them to utilize NRAs, if they opted to use the 

exemption instead of publishing a tariff rate item. The Commission continues to educate NVOCCs 

regarding NRA compliance and will continue to inform the shipping public to facilitate full 

compliance with NRA requirements.

The Commission does not anticipate a decrease in its workload through 2016 and 2017. NVOCCs 

will be required to publish, and the Commission will need to verify, the rules tariffs that will continue 

to be required under FMC regulations. Further, the continued entry and exit of various OTIs to and 

from the market will require follow-up to ensure that the FMC’s website has an accurate listing of 

tariff publication locations and to ensure that published tariffs meet the Commission’s tariff 

publication requirements. In addition, the FMC does substantial work associated with monitoring 

VOCC tariffs for compliance. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[21]

Strategic Goal 2: 

Protect the public from unlawful, unfair and deceptive practices and 

resolve shipping disputes 

The Commission achieved a number of significant actions during Fiscal Year 2015 that advanced its 

mission and contributed to the integrity and security of the nation’s import and export supply chains 

and protected the public from financial harm. 

Objective 1: Identify and take action to end unlawful, unfair and 

deceptive practices. 

Major investigations undertaken or completed during Fiscal Year 2015 addressed ongoing practices 

of certain OTIs operating in the volatile China-U.S. inbound trades, as well as VOCCs seeking to 

operate pursuant to agreements that were not filed with the Commission. In Docket No. 14-14, the 

Commission’s Bureau of Enforcement (BOE) filed a petition to intervene on behalf of complainantshipper Mark Barr, seeking substantive changes in the objectionable commercial practices of the 

respondent, Ocean Trade Lines, Inc. (OTL), an NVOCC. OTL agreed to provisions obligating it to 

provide refunds within 15 days, rather than 60 days; to require OTL to commence transport within 

120 days of requested cargo pick up; and to remove language in OTL’s shipping contract inconsistent 

with its obligations as a common carrier. OTL also made a refund to the complainant, Mark Barr, in 

the amount of $15,000. Administrative Law Judge Erin Wirth approved the settlement. 

In FMC Docket No. 14-13, Metro Freight Services, Inc. (Metro Freight), a New Jersey-based freight 

forwarder and NVOCC, paid a $100,000 civil penalty, had its OTI license suspended for 90 days, and 

dissolved a corporate affiliate which had served as putative shipper for many of the respondent’s 

forwarding transactions. The settlement resolved BOE’s allegations that Metro Freight failed to timely 

seek and obtain approval of a replacement Qualifying Individual (QI) for its OTI operations, and 

unlawfully received freight forwarder compensation for shipments in which it had a direct or indirect 

beneficial interest. Administrative Law Judge Clay Guthridge approved the settlement. 

In Docket No. 14-05, the Commission let stand the settlement of an investigation involving an ocean 

freight forwarder and an affiliated shipper regarding improper receipt of freight forwarder 

compensation upon the affiliate’s shipments, and the apparent return of such funds to the shipper. 

Respondents paid a penalty of $300,000. In Docket No. 14-02, Administrative Law Judge Guthridge 

issued an Initial Decision on October 21, 2014, finding violations of section 10(a)(1) of the Shipping 

Act for using the unfair device or means of accessing service contracts to which Oceanic Bridge, an 

NVOCC, was neither a contract signatory nor corporate affiliate thereof, and assessing a civil penalty 

of $392,000.00 against Respondent Oceanic Bridge International, Inc. On November 21, 2014, the 

Commission issued a Notice Not to Review the Initial Decision. 

The Commission also continued its investigations of the car carrier trades between Japan and the U.S., 

and in other U.S. trades inbound and outbound, culminating in an additional settlement relating to 

unfiled carrier agreements. Penalties against the two commonly-owned carriers involved netted 

penalties in excess of $1,100,000. In addition, the Commission collected penalties against two smaller 

carriers for operating under unfiled space charter agreements affecting their respective roll-on/rolloff operations.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[22]

In Fiscal Year 2015, the enforcement compliance audit program continued as a major focus. This 

program, conducted from headquarters primarily by mail, e-mail and telephone, reviews the operations 

of licensed OTIs to assist them in complying with the statutory requirements and the Commission’s 

rules and regulations. The audit program also reviews entities holding themselves out as VOCCs, 

where there is no indication of actual vessel operations. At the beginning of Fiscal Year 2015, 14 audits 

were pending. During the Fiscal Year, 183 audits were commenced, 163 audits were completed 

(including audits carried over from Fiscal Year 2013), and 34 remained pending on September 30, 

2015. 

At the beginning of Fiscal Year 2015, 10 enforcement cases were pending final resolution by 

Commission staff, and BOE was party to 4 formal proceedings. During the fiscal year, 18 investigative 

matters were referred for enforcement action or informal compromise; 17 were compromised and 

settled, administratively closed, or referred for formal proceedings; and 11 enforcement cases were 

pending resolution at Fiscal Year’s end. Also, 3 formal proceedings were initiated; 4 formal 

proceedings were completed; and 3 were pending at the end of the fiscal year. 

Objective 2: Prevent public harm through licensing and financial 

responsibility requirements. 

In FY 2015, the Commission received 376 new OTI applications and 314 amended applications, 

issued 250 new OTI licenses and 100 amended licenses, revoked 293 licenses, and 72 licenses were 

voluntarily surrendered. Currently, 973 ocean freight forwarders (OFFs); 1,727 U.S. NVOCCs; 2,013

joint NVOCC/OFFs; and 77 foreign NVOCCs hold active OTI licenses and 1,344 foreign NVOCCs 

are “registered.” In FY 2015, 50 bond riders were received, providing optional proof of financial 

responsibility for NVOCCs serving the U.S.-China trade, and 23 riders were terminated, leaving 440 

U.S. NVOCCs holding these riders.

The OTI licensing process was streamlined and the time needed to reach a licensing decision was 

reduced. The goal is to complete 75 percent of all OTI license applications within 60 days. In FY 

2015, the Commission was able to complete 72 percent of applications within 60 days. Additionally, 

staff began testing of the electronic OTI licensing and registration system. When implemented, this 

system should further streamline applications and licensing processes. 

The licensing compliance audit program reviews the operations of licensed OTIs to assist them in 

complying with statutory requirements and the Commission’s rules and regulations. The audit 

program also reviews entities holding themselves out as VOCCs where there is no indication of actual 

vessel operation. During the Fiscal Year, 50 OTI audits were commenced and 45 were completed.

For the Commission’s passenger vessel program, the Commission monitored 223 vessels and 48

passenger vessel operators, with a total of $590 million for non-performance financial responsibility 

and $750 million for casualty financial responsibility. The Commission conducted one on-site audit 

of a PVO in the program. In 2015, the Commission processed changes to PVOs’ financial instruments 

due to the maximum UPR coverage (cap) requirement rising from $22 million to $30 million. 

Objective 3: Enhance public awareness of agency resources, 

remedies and regulatory requirements

The Commission continued extensive efforts to educate stakeholders and the public. In response to 

cruise passenger requests for assistance, the FMC released a cruise brochure to assist passengers in 

planning for a cruise vacation and to address potential challenges. In addition, presentations, 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[23]

meetings, and educational sessions were held with various shipper and industry trade associations, as 

well as media interviews, to educate the public and regulated entities regarding the availability of the 

Commission’s ADR services to assist parties with resolving cruise and cargo related disputes. The 

FMC also published an article in a trade association magazine to promote best practices among yacht 

brokers that assist clients with shipping yachts to and from the United States. The Commission issued 

several consumer alerts and initiated an informational twitter campaign.

The FMC continued to monitor the increasing issue of congestion at U.S. ports, holding Port Forums 

with stakeholders. Based on the demurrage and detention issues being specifically highlighted in those 

forums, the Commission released a report, Rules, Rates, and Practices Relating to Detention, Demurrage, and 

Free Time for Containerized Imports and Exports Moving Through Selected United States Ports, comprised of a 

significant analytical study of the free time, demurrage, and detention practices among the major 

carriers and ports. The report identified and discussed demurrage trends as related to problems 

reported to CADRS and other Commission offices, and enumerated prospective options available to 

private parties and to the Commission to address congestion-related challenges. In addition, the 

Commission released a synopsis of the Port Forums, U.S. Container Port Congestion & Related International 

Supply Chain Issues: Causes, Consequences & Challenges, and continues to be a leader in providing the 

industry with needed collaboration to solve port congestion issues.

The Commission explored collaboration and worked with other Federal agencies to address port 

congestion and related concerns. Such agencies include, but are not limited to: the Surface 

Transportation Board, Federal Motor Carrier Safety Administration, National Highway Safety 

Administration, U.S. Customs and Border Patrol, Consumer Product Safety Commission, U.S. Census 

Bureau, Food and Drug Administration, Maritime Administration, U.S. Coast Guard, and the Small 

Business Administration.

The FMC continued to collaborate with FMCSA in FY 2015 under the auspices of the FMC - FMCSA 

MOU. In addition to participating in quarterly working group meetings and moving fraud task force 

meetings, the Commission initiated quarterly meetings between the FMCSA and the Surface 

Transportation Board to address household goods and related shipping concerns. In addition, the 

FMC participated with FMCSA in a moving season kickoff panel in May 2015.

The Commission continues to monitor public usage trends and leverage user feedback to implement 

improvements to www.fmc.gov. Improvements for FY 2015 included improving global navigation 

based on user search terms, improving visibility of important information, and archiving and 

streamlining content to improve delivery and accuracy of information. FY 2015 also saw the initiation 

and planning for a major platform migration and extensive improvements to the information 

architecture of www.fmc.gov.

Objective 4: Impartially resolve international shipping disputes 

through alternative dispute resolution and 

adjudication

The Commission, through its CADRS office, opened 683 ombuds cases during FY 2015. The 

alternate dispute resolution and adjudication services that the Commission provides to the industry 

and the public has proved to be a valuable alternative to lengthy and costly litigation in the courts. Of 

the cases opened by CADRS, over half involved commercial cargo-related disputes. The remainder 

involved household goods shipment disputes, cruise line concerns, and miscellaneous Shipping Act 

related matters. The Commission opened 13 mediation cases during the fiscal year. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[24]

The FMC responded to 5 Congressional requests for assistance on behalf of constituents. The 

Commission staff addressed 2 inquiries related to challenges encountered by U.S. importers involving 

port congestion and also addressed 3 cruise-related Congressional requests for assistance. Two of the 

3 inquiries involved requests for compensation for passengers that disembarked from cruises due to 

illness. The third inquiry involved a complaint that a consumer had been banned from a cruise line 

after posting negative reviews about the carrier on social media. 

The FMC continued to collaborate with state and local authorities to assist the shipping public. For 

example, the FMC successfully assisted with the disposition of 43 shipments in Miami. Consumers 

paid an unlicensed entity to ship packages to relatives in Nicaragua. The unlicensed company tendered 

the shipments to a licensed NVOCC, but then failed to pay the NVOCC to ship the packages. The 

FMC negotiated with the NVOCC to ship the cargo to Nicaragua at no further charge to these 

consumers, and to ensure that the cargo was sent to the appropriate recipients. The matter received 

significant attention in local bilingual media outlets.

In FY 2015, the Office of the Administrative Law Judges issued 12 initial decisions or orders subject 

to review by the Commission, in 11 formal proceedings. One formal proceeding was remanded by 

rule for determination of petitions for award of attorney fees. At the end of Fiscal Year 2015, 10

formal proceedings and 2 informal proceedings were pending before the OALJ.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[25]

Additional 2015 Accomplishments

Information Technology

The Commission is following its 2014-2018 Information Resources Management (IRM) Strategic Plan 

and IT Capital Plan to prioritize and strategize the agency’s needed IT upgrades. The IRM Strategic 

Plan and IT Capital Plan call for a major upgrade to internal IT systems through the implementation 

of an Enterprise Content Management (ECM) solution to improve data support for all Commission 

programs and research projects, as well as to simplify stakeholder interaction and filing processes. 

Efforts to modernize the FMC’s IT systems are ongoing. During FY 2015, the FMC made significant 

progress towards its IRM goals and objectives, including: 

• completing the configuration and installation of the data backup and recovery 

infrastructure that replicates all backups to the agency’s Disaster Recovery site; 

• deploying updated workstations and laptops which provide enhanced security features; 

• migrating the FMC’s email system, personal file storage and office productivity software 

to a secure, cloud-based system; 

• achieving substantial compliance with the agency’s HSPD-12 implementation; 

• acquiring and deploying, through a multi-year Enterprise Software Agreement, Windows 

Server 2012 to upgrade the operating systems on all agency servers as well as deploying 

Microsoft SQL Enterprise to provide capabilities to our disaster recovery location; 

• initiating the User Acceptance Testing of the agency’s Licensing and Registration 

Application (LARA) which is a modernized, electronic version of the paper-based ocean 

transportation intermediary license application (Form FMC-18); 

• refreshing the data center by upgrading all legacy servers with modern, secure servers and 

software; and

• supporting the FMC’s implementation of the Memorandum of Understanding with U.S. 

Customs and Border Protection to allow data from CBP’s Automated Commercial 

Environment (ACE) to be accessed directly by the FMC for use in fulfilling its statutory 

and regulatory duties and responsibilities, including accessing trade data that facilitates the 

Commission’s oversight of carrier agreement filings. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[26]

Representative Rulemakings, Adjudications, and Litigation 

In FY 2015, the Commission resolved international shipping disputes filed by complainants and 

enforced the Shipping Act and its regulations through adjudication before the Commission. In 

FY 2015, the Commission, including its ALJs and legal staff, issued 174 legal opinions, 

recommendations, case summaries, decisions and final orders. The Commission also considered 

revisions to its regulations via rulemaking. 

Rulemaking

• Amendments to OTI Licensing and Financial Responsibility Requirements [Docket 

13-05]

In November 2015, the Commission issued a final rule amending its regulations governing 

OTI licensing, financial responsibility requirements, and duties. The rule, issued after 

considering extensive comments from the industry, is designed to adapt to changing industry 

conditions, improve regulatory effectiveness, improve transparency, streamline FMC business 

processes, and reduce regulatory burdens.

Commission Decisions 

The following are representative of the cases heard before the Commission. 

• Maher Terminals, LLC v. Port Authority of New York and New Jersey [Docket No. 

08-03; D.C. Cir. Case No. 15-1035]

Maher alleged, among other things, that the disparity between the terms of a 2000 lease 

between PANYNJ and Maersk Container Service Company, Inc. (now known as APM) and a 

2000 lease between PANYNJ and Maher violated the Shipping Act. The ALJ determined that 

PANYNJ did not unreasonably discriminate against Maher or otherwise violate the Shipping 

Act. Maher filed exceptions to the ALJ’s initial decision, and on December 17, 2014, the 

Commission issued a Memorandum Opinion and Order affirming the ALJ's initial 

decision. On February 13, 2015, Maher filed a petition for review of agency action and 

PANYNJ intervened. Oral argument occurred on February 8, 2016.

• K-Line v. Port Authority of New York and New Jersey [FMC Docket No. 11-12; D.C. 

Cir. Case No. 15-1006]

Kawasaki Kisen Kaisha, Ltd. (K-Line), among other ocean common carriers, filed a complaint 

against the Port Authority of New York and New Jersey alleging Shipping Act violations 

relating to a fee imposed by the Port. On February 5, 2014, the ALJ issued orders denying 

Complainants’ motion for partial summary judgment; granting three Complainants’ motions 

to withdraw; and dismissing the proceeding. On February 12, 2014, the remaining parties filed 

a consent motion seeking to enlarge the amount of time by which to file exceptions and reply 

briefs. On February 20, 2014, the Commission granted the consent motion, setting deadlines 

of March 31, 2014 for the filing of Complainant’s exceptions and May 22, 2014 for the filing 

of replies. On March 31, 2014, Complainant K-Line filed exceptions. The Commission issued 

an order affirming the ALJ, and dismissing the complaint, on November 20, 2014. On January 

14, 2015, K-Line filed a petition for review of the Commission’s Order Affirming Dismissal 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[27]

of Complaint. With the briefing deadline set, K-Line requested to instead dismiss the case, 

thus rendering the Commission’s November 20, 2014, Order final.

• Edaf Antillas, Inc. v. Crowley Caribbean Logistics, LLC; IFS International 

Forwarding, S.L.; and IFS Neutral Maritime Services [Docket No. 14-04]

Complainant Edaf Antillas was the consignee on an LCL shipment of books from Spain to 

Puerto Rico. Customs and Border Patrol denied permission for the container to enter United 

States commerce because the cargo of another shipper in the container did not comply with 

import regulations regarding pest control. On April 28, 2014, Edaf Antillas filed a complaint 

with the Commission alleging that Respondents violated three sections of the Shipping Act by 

permitting non-compliant cargo to be placed in a container with compliant cargo causing delay 

of Edaf Antillas’s shipment and by failing to correct the problem in a timely manner after the 

container arrived in Puerto Rico. On November 6, 2014, the ALJ granted a motion to dismiss 

in part, finding that the complaint failed to state a claim under two sections of the Act, 

dismissing claims against IFS Forwarding because it only acted as an agent, not a common 

carrier or ocean transportation intermediary, and dismissing claims against Crowley for 

activities that occurred in Spain. The Judge found that the Complaint stated a claim that 

Respondents failed to establish, observe, and enforce just and reasonable regulations and 

practices relating to or connected with receiving, handling, storing, or delivering property in 

violation of 46 U.S.C. § 41102(c). On December 8, 2014, the Commission issued a Notice 

Not to Review the dismissals.

After Edaf Antillas failed to file its brief on the merits, the Judge issued an order to show cause 

to which Edaf Antillas did not respond. On April 15, 2015, the Judge issued an initial decision 

dismissing the proceeding for failure to prosecute. The initial decision also addressed the 

applicability of a new provision in the Shipping Act permitting an award of attorney fees to a 

prevailing party. On May 18, 2015, the Commission issued a Notice Not to Review the 

dismissals. Prevailing Respondents filed petitions for attorney fees to be decided by the Judge 

pursuant to 46 C.F.R. § 502.254.

• Santa Fe Discount Cruise Parking, Inc., d/b/a EZ Cruise Parking, Lighthouse 

Parking, Inc., and Sylvia Robledo d/b/a 81st Dolphin Parking v. The Board of 

Trustees of the Galveston Wharves and the Galveston Port Facilities Corporation 

[Docket No. 14-06]

Respondents operate the cruise terminal at the Port of Galveston. Complainants operate 

parking facilities near the Port where they provide parking for passengers embarking on cruises 

from the cruise terminal. As part of their service, Complainants provide transportation to the 

Port. On June 16, 2014, Complainants filed a complaint alleging that Respondents’ tariff 

imposing charges on Complainants’ shuttles transporting passengers to and from the terminal 

violated three sections of the Shipping Act. On November 21, 2014, the ALJ granted 

Respondents’ motion to dismiss claims under two sections of the Act, but denied dismissal of 

claims under 46 U.S.C. § 41106(2), finding that the Complaint stated a claim that Respondents 

gave an undue or unreasonable preference or advantage or imposed an undue or unreasonable 

prejudice or disadvantage with respect to Complainants. On December 23, 2014, the 

Commission issued a Notice Not to Review the dismissals. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[28]

• Okoye Christian Ogochukwu v. Emeka Onyechi d/b/a Donem International, LLC

[Docket No. 1945(F)] 

Complainant wanted to ship nine pieces of medical equipment to Nigeria. Respondent is 

certified by the Transportation Security Administration to operate as an indirect air carrier 

with functions analogous to an NVOCC, but is not a licensed NVOCC. When shipment by 

air proved to be too expensive, and after Respondent stored the equipment for five months, 

a licensed NVOCC transported the equipment. Respondent received the equipment in Africa, 

but would not release it to Complainant’s consignee until storage fees were paid. The parties 

filed a Settlement Notice with the Secretary, and on April 8, 2015, the ALJ issued an initial 

decision approving the settlement. On May 11, 2015, the Commission issued a Notice Not 

to Review the dismissal. 

• Econocaribe Consolidators, Inc. v. Amoy International, LLC [Docket No. 14-10]

Complainant Econocaribe Consolidators, Inc. filed a complaint alleging that Respondent 

Amoy International, LLC violated numerous sections of the Shipping Act of 1984 and Federal 

Maritime Commission regulations. A notice of filing of complaint and assignment was issued 

on August 14, 2014. On September 9, 2014, Amoy filed its answer denying the allegations. 

The parties engaged in discovery, filed numerous motions, and briefed the merits of the 

proceeding. The parties eventually reached a settlement agreement which they submitted for 

approval. On September 2, 2015, the Administrative Law Judge issued an initial decision 

approving joint settlement and granting motion to dismiss. The time to file exceptions or for 

the Commission to review the decision has not expired.

• Metro Freight Services, Inc. d/b/a Maritime Express Lines – Possible Violations of 

Section 19(e)(3) of the Shipping Act of 1984 and 46 C.F.R. Part 515, LLC [Docket No. 

14-13]

On September 29, 2014, the Commission issued an Order of Investigation and Hearing to 

determine whether respondent Metro Freight Services, Inc. d/b/a Maritime Express Lines 

(Metro Freight), a licensed OTI, violated the Shipping Act by failing to notify the Commission 

promptly after the death of its qualifying individual (QI) and failing to seek and obtain approval 

of a replacement QI and whether it violated the Act by receiving freight forwarder 

compensation from a common carrier for shipments in which Metro Freight had a direct or 

indirect beneficial interest. On February 19, 2015, the Administrative Law Judge issued an 

initial decision approving the settlement agreement between the Bureau of Enforcement and 

Metro Freight. On March 23, 2015, the Commission issued a Notice Not to Review.

• Mark Barr v. Ocean Trade Lines, Inc. [Docket No. 14-14]

On November 13, 2014, Mark Barr filed a complaint alleging that Ocean Trade Lines violated 

the Shipping Act of 1984, 46 U.S.C. 41102(c), 41104(2), 41104(3), and 41104(4), by failing to 

publish a tariff and to adhere to tariff publishing requirements and by failing to adhere to just, 

reasonable, and non-discriminatory practices regarding its cancellation and refund policies 

with respect to international ocean transport of Complainant’s yacht. On November 19, 2014, 

the Commission’s Bureau of Enforcement filed a motion seeking leave to intervene. On 

February 19, 2015, the Administrative Law Judge issued an initial decision approving the 

settlement agreement. On March 23, 2015, the Commission issued a Notice Not to Review. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[29]

• ShemiTrans, LLC v. Rose Containerline, Inc. [Docket No. 1950(F)]

On May 18, 2015, ShemiTrans filed an informal complaint pursuant to 46 C.F.R. Subpart S 

and the proceeding was assigned to the Chief Administrative Law Judge for designation of a 

Small Claims Officer. Rose Containerline filed an objection to adjudication under Subpart S. 

ShemiTrans then filed a request to dismiss the proceeding voluntarily. Because Rose objected 

to Subpart S, the Chief Judge assigned the proceeding to an Administrative Law Judge for 

adjudication pursuant to Subpart T. On July 9, 2015, the Judge granted the request for 

voluntary dismissal. On August 11, 2015, the Commission issued a Notice Not to Review.

Informal Proceedings

• Salomon and Jasmin Gruenberg-Reisner v. Overseas Moving Specialists d/b/a 

International Sea & Air Shipping [Informal Docket No. 1947(I)]

The Gruenberg-Reisners, who were relocating to Switzerland, hired Overseas Moving, an 

NVOCC, to ship household goods from the United States to their new residence in 

Switzerland. Overseas Moving quoted a rate of $17,575 for the transportation but charged 

the Gruenberg-Reisners $40,262 in total for the transportation. The Gruenberg-Reisners filed 

a complaint alleging that Overseas Moving violated 46 U.S.C. § 41102(c). The GruenbergReisners asked for reparations of at least $42,434.43, plus incidental fees and attorney’s fees. 

On June 30, 2015, the small claims officer issued a decision finding that Overseas Moving 

violated § 41102(c) and awarding $17,847.21 to the Gruenberg-Reisners. On July 6, 2015, the 

Commission issued a Notice of Commission Determination to Review the small claim officer’s 

decision.

• American Cargo Shipping Lines, Inc. v. Gulf Express International Inc. [Informal 

Docket No. 1948(I)]

Gulf Express, which is not licensed by the FMC as a transportation intermediary, hired 

American Cargo, an NVOCC, to transport irrigation equipment for Gulf Express from the 

United States to Turkey on one occasion, and a shipment from the United States to the United 

Arab Emirates on another occasion. American Cargo alleged that although Gulf Express was 

paid by the shipper-owners of the goods, Gulf Express failed to forward the payment to 

American Cargo, then misled American Cargo by falsely stating that it had sent payment for 

the transportation causing American Cargo to release its lien on the first shipment. American 

Cargo filed a complaint alleging that by these actions, Gulf Express violated 46 U.S.C. § 

41102(a). On August 5, 2015, the small claims officer issued a decision finding that Gulf 

Express violated section 41102(a) and awarding $11,827.50 to American Cargo.

Litigation before Courts 

• The Auction Block Co. v. City of Homer [Docket No. 12-03], United States Court of 

Appeals for Ninth Circuit

On April 2, 2012, Complainants, the Auction Block Company (Auction Block) and Harbor 

Leasing, LLC (Harbor Leasing) filed a complaint with the Commission against Respondents, 

The City of Homer (City) and the Port of Homer (Port), alleging violations of the Shipping 

Act, 46 U.S.C. § 40101 et seq. Complainants alleged that the City and Port were Marine 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[30]

Terminal Operators (MTOs) that violated the Shipping Act through unreasonable prejudice 

or preference, refusal to deal, and unfair practices. 46 U.S.C. §§ 41106(2)-(3), 41102(c). The 

dispute involves a lease between the City and Harbor Leasing, dated March 26, 2008, for 

terminal facilities utilized by Auction Block. Complainants alleged that the dispute centers 

around the lower rates charged to Icicle Seafood, Inc. under its lease with the City, and those 

charged to Auction Block under the terms of the tariff. 

In the May 20, 2013 Initial Decision, the ALJ dismissed all of Complainants’ claims against 

Respondents with prejudice, finding that the Commission lacked jurisdiction. On June 21, 

2013, Complainants filed Exceptions to the ALJ’s conclusions of law and certain findings of 

fact and requested oral argument before the Commission on the Exceptions. On April 3, 2014,

Oral Argument was held before the Commission and was limited to whether the Port is an 

MTO in connection with all dock/terminal areas including Fish Dock (the facility at issue), 

despite the fact that the terminal services in dispute do not involve common carriers. 

On August 12, 2014, the Commission upheld the Initial Decision of the Administrative Law 

Judge dismissing Auction Block’s complaint for lack of jurisdiction. On August 22, 2014, the 

Action Block Company filed a Petition for Review of the Commission Order with the United 

States Court of Appeals for the Ninth Circuit. The Commission and the Department of Justice 

entered appearances in the case. The Court of Appeals granted leave for the City of Homer 

and the Port to intervene in the appeal. On May 14, 2015, the Court heard oral argument, and 

on May 28, 2015, the court entered an order denying the petition, and affirming the 

Commission in all respects.

• Chief Cargo Services, Inc. v. Federal Maritime Commission [Docket No. 10-08], 

United States Court of Appeals for the Second Circuit

On November 1, 2013, Chief Cargo Services, Inc., filed a petition for review of the 

Commission’s Order in FMC Docket 10-08, Bimsha International v. Chief Cargo Services, 

Inc. & Kaiser Apparel, Inc., upholding the ALJ’s initial decision holding that by the release of 

three shipping containers, without requiring presentation of the original bills of lading, Chief 

Cargo failed to fulfill its obligations as a non-vessel-operating common carrier, thereby

violating 46 U.S.C. § 41102(c) of the Shipping Act. The ALJ also ordered Chief Cargo to 

“cease and desist releasing cargo without requiring presentation of an original bill of lading.” 

On April 24, 2014, Chief Cargo filed its Joint Appendix, Brief, and Special Appendix. Chief 

Cargo questioned the jurisdiction of the Commission to hear and adjudicate Bimsha’s claim 

of violations of the Shipping Act; argued that the Commission improperly found violations of 

the Shipping Act; and argued that the Commission improperly issued a cease and desist order. 

On June 20, 2014, the Commission and the United States filed a joint brief. Oral Argument 

was held on September 30, 2014. On October 2, 2014, the Court of Appeals entered an 

Opinion and Judgment in favor of the Commission, helping to clarify the scope of the 

Commission’s jurisdiction, breadth of § 41102(c) of the Shipping Act, and the Commission’s 

authority to issue cease and desist orders. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[31]

Appendices

Appendix A: Resource Allocation by Program

Appendix B: FTEs and Positions Allocation by Program

Appendix C: Obligations by Object Class

Appendix D: Relationship of Obligations to Outlays 

Appendix E: Performance Measures by Strategic Goals

Appendix F: Workload Summary

Appendix G: Evidence Template

Appendix H: OIG Certification
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[32]

Appendix A: Resource Allocation by Program

Strategic Goal # 1 Strategic Goal # 2

Maintain an efficient and 

competitive international 

ocean transportation 

system

Protect the public from 

unlawful, unfair and 

deceptive practices and 

resolve shipping 

disputes

Formal Proceedings

 Office of the Chairman $478,129.89 $1,017,880.67 $209,641.29 $838,565.15 $1,048,206.44 $30,325.77

 Office of the Commissioners $1,888,341.16 $1,781,769.28 $384,501.58 $1,538,006.31 $1,922,507.89 $140,738.61

 Office of the Secretary $1,379,910.18 $1,372,489.14 $298,955.24 $1,150,524.72 $1,449,479.96 $76,990.82

 Li bra ry $60,394.41 $96,488.43 $23,101.64 $69,304.92 $92,406.56 ($4,081.87)

 Office of Consumer Affairs and Dispute Resolution Services $1,176,519.45 $1,242,195.49 $0.00 $1,287,840.47 $1,287,840.47 $45,644.98

 Office of the General Counsel $2,092,965.04 $1,971,539.55 $1,033,859.81 $1,033,859.81 $2,067,719.62 $96,180.07

 Ethics $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

 Office of Administrative Law Judges $822,089.61 $885,941.61 $458,189.19 $458,189.19 $916,378.37 $30,436.76

Formal Proceedings Total $7,898,349.74 $8,368,304.17 $2,408,248.74 $6,376,290.56 $8,784,539.31 $416,235.14

Office of Equal Employment Opportunity $144,961.80 $175,642.69 $38,390.28 $153,561.13 $191,951.41 $16,308.72

Office of the Inspector General $425,909.91 $501,711.27 $55,202.43 $496,821.84 $552,024.27 $50,313.00

Operational and Administrative

 Office of the Managing Director $1,840,295.96 $2,034,320.96 $487,547.07 $1,565,282.68 $2,052,829.75 $18,508.79

 Bure a u of Tra de Ana l ys i s $3,010,427.17 $3,344,151.93 $2,128,256.57 $1,426,263.94 $3,554,520.51 $210,368.58

 Bure a u of Ce rti fi ca ti on a nd Li ce ns i ng $2,337,137.88 $2,346,971.83 $0.00 $2,437,396.69 $2,437,396.69 $90,424.86

 Burea u of Enforcement $1,858,573.00 $2,122,966.57 $0.00 $2,191,510.22 $2,191,510.22 $68,543.65

 Are a Re pre s e nta ti ve s $1,908,412.54 $2,076,675.28 $449,076.13 $1,796,304.51 $2,245,380.64 $168,705.36

 Offi ce of Informa ti on Technol ogy $4,300,312.91 $2,296,355.94 $569,408.99 $2,277,635.97 $2,847,044.96 $550,689.02

 Offi ce of Huma n Res ources $576,745.52 $778,961.64 $172,447.14 $689,788.57 $862,235.71 $83,274.07

 Office of Budget and Finance $682,948.66 $819,822.15 $189,305.17 $757,220.67 $946,525.84 $126,703.69

 Offi ce of Ma na ge me nt Se rvi ce s $658,299.86 $794,115.57 $412,020.35 $412,020.35 $824,040.70 $29,925.13

Operational and Administrative Total $17,173,153.50 $16,614,341.87 $4,408,061.41 $13,553,423.60 $17,961,485.02 $1,347,143.15

Totals $25,642,374.95 $25,660,000.00 $6,909,902.87 $20,580,097.13 $27,490,000.00 $1,830,000.00

The Resource Allocation by Program chart identifies the funding level requested for FY17 broken out by program office and strategic goal. The chart identifies FY17 changes over the 

FY16 enacted funding requirements.

Resource Allocation by Program

FY 2017

Program/Office

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 Request

FY 2017 

Request

Difference From FY 

2016 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[33]

Appendix B: FTEs and Positions Allocation by Program

Program/Office FTEs Positions* FTEs Positions* FTEs Positions* FTEs Positions*

Headquarters 107.54 113.00 120.28 123.00 123.00 123.00 2.72 0.00

Area Representatives 9.00 9.00 9.72 11.00 11.00 11.00 1.28 0.00

Agency Total 116.54 122.00 130.00 134.00 134.00 134.00 4.00 0.00

Formal Proceedings

 Office of the Chairman 2.31 4.00 4.94 5.00 5.00 5.00 0.06 0.00

 Office of the Commissioners 8.00 8.00 7.56 8.00 8.00 8.00 0.44 0.00

 Office of the Secretary 7.92 8.00 7.72 8.00 8.00 8.00 0.28 0.00

 Office of Consumer Affairs and Dispute Resolution Services 6.27 7.00 7.00 7.00 7.00 7.00 0.00 0.00

 Office of the General Counsel 10.55 10.00 9.79 10.00 10.00 10.00 0.21 0.00

 Office of Administrative Law Judges 3.96 4.00 4.00 4.00 4.00 4.00 0.00 0.00

Formal Proceedings Total 39.01 41.00 41.01 42.00 42.00 42.00 0.99 0.00

Office of Equal Employment Opportunity 0.75 1.00 1.00 1.00 1.00 1.00 0.00 0.00

Office of the Inspector General 1.00 1.00 1.70 2.00 2.00 2.00 0.30 0.00

Operational and Administrative

 Office of the Managing Director 7.97 8.00 8.00 8.00 8.00 8.00 0.00 0.00

 Bureau of Trade Analysis

 Office of the Director 3.00 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Office of Service Contracts and Tariffs 4.00 4.00 4.00 4.00 4.00 4.00 0.00 0.00

 Office of Economics and Competition Analysis 6.52 7.00 8.35 9.00 9.00 9.00 0.65 0.00

 Office of Agreements 2.69 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Bureau of Certification and Licensing

 Office of the Director 2.00 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Office of Passenger Vessels and Information Processing 4.00 4.00 4.00 4.00 4.00 4.00 0.00 0.00

 Office of Transportation Intermediaries 7.42 8.00 10.00 10.00 10.00 10.00 0.00 0.00

 Bureau of Enforcement 10.35 11.00 11.00 11.00 11.00 11.00 0.00 0.00

 Area Representatives 9.00 9.00 9.72 11.00 11.00 11.00 1.28 0.00

 Office of Information Technology 7.15 7.00 7.75 8.00 8.00 8.00 0.25 0.00

 Office of Human Resources 3.72 3.00 4.83 5.00 5.00 5.00 0.17 0.00

 Office of Budget and Finance 4.00 4.00 4.64 5.00 5.00 5.00 0.36 0.00

 Office of Management Services 3.96 5.00 5.00 5.00 5.00 5.00 0.00 0.00

Operational and Administrative Total 75.78 79.00 86.29 89.00 89.00 89.00 2.71 0.00

Total FTEs and Positions 116.54 122.00 130.00 134.00 134.00 134.00 4.00 0.00

* Denotes positions on September 30.

Actual Enacted Request From FY 16

FTEs and Positions by Program

FY 2015 - FY 2017

FY 2015 FY 2016 FY 2017 Difference
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[34]

Appendix C: Obligations by Object Class

FY 2015 FY2016 FY2017

Category Actual Enacted Request

 (11.1) Full-time Permanent Employees $ 13,333,459.37 $ 14,787,000.00 $ 15,563,000.00 $ 776,000.00

 (11.3) Part-time and Temporary Employees $ 77,000.00 $ 91,000.00 $ 110,000.00 $ 19,000.00

 (11.7) Performance Awards $ 103,300.00 $0.00 $0.00 $0.00

 (12.1) Personnel Benefits $ 3,840,912.46 $ 4,367,000.00 $ 4,654,000.00 $ 287,000.00

Total Personnel Compensation & Benefits $ 17,354,671.83 $ 19,245,000.00 $ 20,327,000.00 $ 1,082,000.00

 (21.0) Travel and Transportation of Personnel $ 185,240.27 $ 200,000.00 $ 200,000.00 $0.00

 (22.0) Transportation of Things (Express Mail) $ 24,649.00 $ 22,000.00 $ 22,000.00 $0.00

 (23.1) Rental Payments to GSA $ 3,296,792.87 $ 3,334,000.00 $ 3,517,000.00 $ 183,000.00

 (23.5) Telephones (Local, Long Distance and Cellular) $ 223,800.00 $ 235,900.00 $ 239,300.00 $ 3,400.00

 (23.8) Postage $ 5,061.04 $ 5,100.00 $ 5,700.00 $ 600.00

 (24.0) Printing $ 61,956.00 $ 89,000.00 $ 139,000.00 $ 50,000.00

 (25.1) Consulting (Auditing and IT Services) $ 1,394,263.39 $ 436,000.00 $ 775,000.00 $ 339,000.00

 (25.2) Purchase of Goods and Services from Commercial Accounts $ 819,512.17 $ 567,600.00 $ 616,000.00 $ 48,400.00

 (25.3) Purchase of Goods and Services from Government Accounts $ 1,261,690.08 $ 1,212,000.00 $ 1,374,000.00 $ 162,000.00

 (25.7) Equipment Maintenance $ 18,507.83 $ 22,000.00 $ 22,000.00 $0.00

 (26.0) Supplies and Materials $ 129,768.33 $ 135,000.00 $ 135,000.00 $0.00

 (31.0) Equipment (IT hardware and software) $ 866,462.14 $ 156,400.00 $ 118,000.00 $ (38,400.00)

Travel and Administrative Expenses $ 8,287,703.12 $ 6,415,000.00 $ 7,163,000.00 $ 748,000.00

Total Budget Authority $ 25,642,374.95 $ 25,660,000.00 $ 27,490,000.00 $ 1,830,000.00

The Obligations by Object Class chart identifies the Commission's actual funding expenses of 2015 and the estimated funding requirements for the 

FMC to complete its mission in FY16 and FY17. Costs are reported by object codes.

Travel and Administrative Expenses

Obligations by Object Class

FY 2015 - FY 2017

Rent, Communications and Utilities

Personnel Compensation and Benefits

Difference 

From FY 2016
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[35]

Appendix D: Relationship of Obligations to Outlays

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operational and Administrative

Unobligated

 Budget Authority

 Obligations

 Outlays*

 Outlay Rate (Obligation to Outlay)**

 Obligation Rate

Total outlays for fiscal year 2010 disbursed in fiscal year 2015

Total outlays for fiscal year 2011 disbursed in fiscal year 2015

Total outlays for fiscal year 2012 disbursed in fiscal year 2015

Total outlays for fiscal year 2013 disbursed in fiscal year 2015

Total outlays for fiscal year 2014 disbursed in fiscal year 2015

Total outlays for fiscal year 2015

 Outlays

* Represents Outlays for FY 2015.

** Represents the percentage of FY 2015 obligations that were disbursed during FY 2015.

$25,660,000.00 $27,490,000.00

The Relationship of Obligations to Outlays identifies the actual outlay percentage for FY15. The chart also depicts the 

estimated outlay expenses for FY16 and FY17.

$0.00

$0.00

$9,733.54

$25,209,840.00

$105,976.38

$2,852,278.24

$22,241,851.84

Gross Outlays for FY 2015

$22,241,851.84 $22,257,139.53 $23,844,456.96

99.93% 100.00% 100.00%

$144,962.00 $176,000.00 $192,000.00

$425,910.00 $502,000.00 $552,000.00

$7,898,350.00 $8,368,000.00 $8,784,000.00

Relationship of Obligations to Outlays

FY 2015 - FY 2017

FY 2015 

Actual

FY 2016 

Enacted

FY 2017 

Request

$17,173,153.00 $16,614,000.00 $17,962,000.00

86.74% 86.74% 86.74%

$17,625.00 $0.00 $0.00

$25,660,000.00 $25,660,000.00 $27,490,000.00

$25,642,375.00
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[36]

Appendix E: Performance Measures by Strategic Goals

Strategic Goals Objective Performance Measures 2012 

Actual

2013 

Actual

2014 

Actual

2015 

Actual

2016 

Target

2017 

Target

2018 

Target

STRATEGIC GOAL 1: 

Maintain an 

efficient and 

competitive 

international ocean 

transportation 

system.

OBJECTIVE 1: Enhance 

efficiency in the trades 

through the use of 

asset sharing authority 

under the Shipping Act 

of 1984.

Percentage share of U.S. 

containerized cargo 

moving on other 

agreement parties’

vessels in major U.S. 

trades.

N/A1 N/A2 45.6% 49.0% 40.5% 41.0% 41.5%

STRATEGIC GOAL 2: 

Protect the public 

from unlawful, 

unfair and 

deceptive ocean 

transportation 

practices and 

resolve shipping 

disputes.

OBJECTIVE 1: Identify 

and take action to end 

unlawful, unfair, and 

deceptive practices.

Percentage of 

enforcement actions 

taken under the Shipping 

Act of 1984 successfully 

resolved through 

favorable judgment, 

settlement, issuance of 

default judgment, or 

compliance letter or 

notice.

88.0% 78.9% 83.8% 83.4% 77.5% 77.5% 77.5%

OBJECTIVE 2: Prevent 

public harm through 

licensing and financial 

responsibility 

requirements.

Percentage of decisions 

on completed OTI license 

applications rendered

within 60 calendar days of 

receipt, facilitating lawful 

operation of OTIs with the 

appropriate character and 

experience.

90.2% 87.6% 71.3% 72.0% 75.0% 75.0% 75.0%

Percentage of cruise line 

operators examined 

during the year that have 

the full financial coverage 

required by regulation to 

protect against loss from 

non-performance or 

casualty.

100% 100% 96.7% 96.0% 95.0% 95.0% 95.0%

OBJECTIVE 3: Enhance 

public awareness of 

agency resources, 

remedies and 

regulatory 

requirements through 

education and 

outreach. 

Percentage of key 

Commission issuances, 

orders and reports 

available through the 

Commission’s website 

within 5 working days of 

receipt.

79.0% 86.0% 93.0% 92.0% 80.0% 82.0% 84.0%

OBJECTIVE 4: 

Impartially resolve 

international shipping 

disputes through 

alternative dispute 

resolution and 

adjudication.

Number of cases opened 

and closed each Fiscal 

Year using ombuds and 

ADR services assisting 

consumers to recover 

goods or funds.

893 800 994 696 825 850 850

Percentage of formal 

complaints or 

Commission initiated 

orders of investigation 

completed within two 

years of filing or 

Commission initiation.

73.0% 91.0% 88.0% 90.0% 60.0% 62.0% 64.0%

 

1

 This new measure was developed for FY 2014 and there is no actual 2012-2013 performance data.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[37]

Appendix F: Workload Summary 

Workload Summary

Workload Category On Hand 

9/30/2014

FY 2015 Actual FY 2016 Estimate FY 2017 Estimate

Received Output Received Output Received Output

Formal Proceedings (OALJ) 7 11 12 10 10 10 10

Informal Proceedings (OALJ) 0* 6 4** 10 7 9 8

Decisions and Reports in Docketed Proceedings 

Before the Commission 15 27 27 25 25 25 25

Federal Register Notices 0 98 98 100 100 100 100

FOIA Requests 16 35 39 28 35 28 30

OMBUDS 149 683 576 600 576 600 576

ADR Matters 8 13 5 13 5 12 5

Legislation 0 110 110 125 125 130 130

Legal Opinions, Recommendations, Case 

Summaries, Decisions and Final Orders 5 174 174 185 185 190 190

Audits and Monitoring Activities 14 183 163 165 170 170 175

OTI Applicant and License Checks 0 768 768 850 850 860 860

Formal Proceedings (BOE) 4 4 3 5 4 6 6

Civil Penalty Cases 10 18 17 21 23 25 25

Agreements Filed 9 258 255 250 260 245 255

Agreement Reports 115 1,512 1,507 1,495 1,495 1,495 1,495

Service Contracts 0 51,109 51,109 51,000 51,000 52,000 52,000

Service Contract Amendments 0 653,315 653,315 600,000 600,000 610,000 610,000

NVOCC Service Arrangements 0 901 901 900 900 925 925

Arrangement Amendments 0 1,790 1,790 1,800 1,800 1,850 1,850

FMC-1 Form 0 1,219 1,219 1,350 1,350 1,400 1,400

OTI Applications – NEW 112 376 315 385 325 395 330

OTI Business Change Applications 37 314 234 268 240 278 245

OTI License Terminations 0 293 293 370 370 375 375

Passenger Vessel Applications (Performance) 0 20 18 17 17 18 18

Passenger Vessel Applications (Casualty) 1 18 19 17 17 18 18

*Responsibility for Informal Proceedings was transferred from CADRS to OALJ in November 2014.

**Two Informal Proceedings became Formal Proceedings. The Small Claims Officer issued decisions in two cases.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[38]

Appendix G: Evidence Template

FEDERAL MARITIME COMMISSION – FY 2017 EVIDENCE SUBMISSION

Section 1. FMC Context.

Strategy to Advance the Use of Evidence in Decision-Making

The FMC’s 2014-2018 Strategic Plan (Strategic Plan) and FMC 2014-2018 Information Resources 

Management Strategic Plan (IRM Plan) capture the Commission’s methodology in improving the 

Commission’s program performance and increasing its impact through the use of evidence. The 

Strategic Plan has created performance measures, shown in Appendix E, setting goals and objectives 

for its program areas in each Fiscal Year. 

The Commission’s senior leadership meets regularly to discuss challenges and to ensure that the 

agency is collecting and reviewing data on its objectives and goals. In FY 2016-2017, the Commission 

will revise and publish both its Strategic Plan and its IRM Plan, based on a review of the data collected 

and the metrics utilized. The Commission’s senior leaders will look at whether alternate or additional 

data will best match the agency’s strategic goals and objectives.

Recent Progress

The FMC is a small agency tasked with a large mandate, which provides for challenges in balancing 

workloads and required functions. As part of its program evaluation, the Commission has undertaken 

a retrospective review plan to systematically examine and seek public input on its key regulations. For 

example, in FY 2015, the Commission, through a working group staffed by members of its bureaus 

and offices, substantially completed its review of Service Contract regulations. The Commission 

solicited views from relevant stakeholders and groups to gather a broad range of perspectives, and 

stakeholders appreciated the opportunity to provide input. Discussions were held on a confidential 

basis to promote open dialogue, and stakeholders discussed how existing regulations impacted their 

businesses, what regulatory changes they recommended, and quantified the cost of their regulatory 

burdens. Additionally, written comments were sought from interested parties. The working group 

analyzed all comments, and carefully looked at industry and FMC practices. The proposal will be 

provided to the Commission for their consideration in FY 2016.

In addition to its own internal metrics, the FMC has a Memorandum of Understanding (MOU) with 

the U.S. Customs and Border Protection providing for access to their existing systems and services. 

The FMC also has an active MOU with the Census Bureau, U.S. Department of Commerce, providing 

the FMC with access to the Census’ Automated Export System (AES) database. The confidential 

export shipment data assists the FMC in its review of the trade, unlicensed entities, and potential 

Shipping Act violations. The Commission will continue to review how to best utilize the data 

collected by other agencies to improve its internal statistical and program analysis. 

The Commission remains in the process of recovery from sequestration and recent fiscal austerity. 

The Commission’s full-time equivalent (FTE) level dropped from 127-128 FTEs in FY 2010 and FY 

2011, respectively, to 113 FTEs in FY 2014, due primarily to attrition and budgetary circumstances 

such as sequestration. The FY 2014 FTE number was the lowest level since the late 1970s.
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[39]

The FMC’s staff has worked diligently to maintain its mission-critical functions with stretched 

resources. Maintaining an adequate FTE level is critical to succession planning, as currently 25 percent

of the FMC’s employees are eligible for retirement. In FY 2017, the number of employees eligible to 

retire jumps to 28 percent, and in five years, 38 percent of the FMC’s staff will be eligible to retire. 

In FY 2015, the Commission’s senior leaders led an effort to increase hiring so that the agency would 

have the ability to continue to serve the public’s interest. This hiring push included every level of the 

agency. The Commission recruited for both senior leaders and entry level employees. Staff responsible 

for functions from acquisitions and ocean transportation intermediary licensing were subsequently

hired and trained. 

Current Barriers

The Commission is dedicated to meeting the challenges for smart, effective government. The 

Commission’s fundamental barriers are primarily lack of funding and lack of staff resources. The 

FMC’s discretionary funding requests in recent Fiscal Years have focused on modernizing the 

Commission’s outdated IT systems, and in creating automated applications for its external users. 

Funding remains challenging, and creating a separate office or position to lead a high level 

coordination of evidence-based evaluation is not feasible at this time. The FMC’s senior leaders and 

staff work on evidence-based evaluation as a collateral duty. 

Section 2. Top-priority requests.

Proposal 1

Budget Authority Summary

Activity

FY 2015

Actual

FY 2016

Enacted

FY 2017

Request

Public availability of 

Commission OTI 

resources.

This proposal will 

result from the FMC’s 

current and planned 

IT investment to 

upgrade its 

applications and 

Enterprise offerings.

No change – efforts 

of involved staff are a 

collateral duty.

No change – efforts 

of involved staff are a 

collateral duty. 

The FMC collects OTI information in order to license and register regulated entities. The Commission 

currently provides the public with access to basic licensed OTI information. Using the online OTI 

list, shippers can search by various criteria, including by searching by distance from a specific location. 

In FY 2016 and FY 2017, the Enterprise solution that updates the processing of the collected OTI 

information will be substantially complete. In FY 2017, the Commission will begin plans for a redesign 

to better capture and display information for public view. The Commission will review its ability to 

collect raw data on site access and information that is searched for by the public to determine what, if 

any, additional information may be collected and provided for the public. For example, current IT 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[40]

restrictions do not allow financial surety information to be displayed in the same location as the 

company information. The new platform will facilitate redesigning the OTI list so that information 

can be linked and viewed as a click-through. If possible, the FMC will make efforts to analyze the 

number of click-throughs so we can determine if these sorts of improvements assist the public. 

Providing the public with more robust information and easier access may result in a decreased number 

of Commission-received general questions by telephone, which may allow staff resources to be used 

more effectively. At this time, the targeted population is the U.S. shipping population, especially 

household goods shippers that do not have experience or established relationships with licensed ocean 

transportation intermediaries. Additional analysis will be completed to address the impact of this 

effort. 

Proposal 2

Budget Authority Summary

Activity

FY 2015

Actual

FY 2016

Enacted

FY 2017

Request

Website docket library 

and historical 

document repository

redevelopment.

This effort will begin 

in FY 2017.

This effort will begin 

in FY 2017.

This proposal will 

result from the FMC’s 

current and planned 

IT investment to 

upgrade its 

applications and 

Enterprise offerings.

Efforts of involved 

staff are a collateral 

duty.

The FMC is currently in the process of improving its website. In FY 2017, the FMC also intends to 

develop a plan to improve the design, usability and platform of the website docket library and historical 

document repository. The goal of the plan is ultimately to provide for increased availability of public 

documents, including Sunshine Act meeting materials, on the Commission’s website. The 

Commission will consider evidence based evaluation and data gathering when creating the plan. 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[41]

Appendix H: OIG Certification 
Fiscal Year 2017 Budget Request Submitted to the Appropriations Subcommittees

[42]