Federal Maritime 

Commission

Acting Cha

Michael A. 

Privileged – the information contained herein must 

not be disclosed outside the Commission until made 

public by the President or by Congress.

Federal Maritime Commission

Fiscal Year 2019

Budget Request

September 2017

To be submitted to the 

Office of Management and Budget

Federal Maritime Commission

Fiscal Year 2019

Congressional Budget Justification

February 2018

Michael A. Khouri

Acting Chairman

To be submitted to the Appropriations Committees 

(Subcommittees on Transportation, Housing and 

Urban Development, and Related Agencies)
Federal Maritime Commission i

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Table of Contents

Mission............................................................................................................................................ 1

Overview of the FMC ...................................................................................................................... 2

Statutory Authority..................................................................................................................... 2

Regulatory Functions.................................................................................................................. 2

Our Organization......................................................................................................................... 3

Proposed Appropriation Language: Salaries and Expenses........................................................... 7

Fiscal Year 2019 Budget Request.................................................................................................... 7

FMC’s Proposed FY 2019 Budget.................................................................................................... 9

FMC Strategic Plan and the FY 2019 Budget Request .............................................................. 15

Strategic Goal 1: Maintain a competitive and reliable international ocean 

transportation supply system............................................................................................... 18

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

practices................................................................................................................................ 20

Commission Action Items – Supporting Government-wide Priorities.................................. 23

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

FY 2017 Accomplishments............................................................................................................ 30

Strategic Goal 1: Maintain a competitive international ocean transportation 

supply system........................................................................................................................ 30

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

practices................................................................................................................................ 34

Appendices.................................................................................................................................... 40

Appendix A: Resource Allocation by Program......................................................................... 41

Appendix B: FTEs and Positions Allocation by Program .......................................................... 42

Appendix C: Obligations by Object Class ................................................................................. 43

Appendix D: Relationship of Obligations to Outlays................................................................ 44

Appendix E: Performance Measures by Strategic Goals.......................................................... 45

Appendix F: Workload Summary ............................................................................................. 46

Appendix G: Evidence Submission........................................................................................... 47

Appendix H: OIG Certification.................................................................................................. 51
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Competition and Integrity for

America’s Ocean Supply Chain

 

 

 

Mission:

Ensure a competitive and reliable international 

ocean transportation supply system that supports 

the U.S. economy and protects the public from 

unfair and deceptive practices.

 

 

Fulfilling this mission involves achieving two primary goals:

1. Maintain a competitive and reliable 

international ocean transportation supply

system.

2. Protect the public from unlawful, unfair and 

deceptive practices.
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Overview of the FMC

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

responsible for the regulation of oceanborne transportation in the foreign commerce of the 

United States for the benefit of U.S. exporters, importers, and consumers. The Commission 

is directed by five Commissioners appointed for staggered five-year terms, with one 

Commissioner designated by the President to serve as Chairman. The Chairman is the Chief 

Executive and Administrative Officer of the agency. Under a recent statutory change, 

Commissioners appointed and confirmed after December 18, 2014, may serve no more than 

two terms.

Statutory Authority

Congress has charged the FMC with a number of oversight responsibilities designed to 

ensure competitive and reliable ocean transportation services for the shipping public, and to 

protect the public from unlawful, unfair, and deceptive practices. The principal statutes 

administered by the Commission, now codified at 46 U.S.C. §§ 40101-44106, are:

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

(Shipping Act);

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

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

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

Regulatory Functions

The FMC ensures competitive and reliable ocean transportation services for the shipping 

public by:

• Reviewing and monitoring agreements among and between ocean common carriers 

and among and between marine terminal operators (MTOs) serving the U.S. foreign 

oceanborne trades to ensure that they do not cause unreasonable increases in 

transportation costs or decreases in transportation services;

• Maintaining and reviewing confidentially filed service contracts and non-vesseloperating common carrier (NVOCC) Service Arrangements to guard against 

detrimental effects to shipping;

• Providing a forum for exporters, importers, and other members of the shipping public 

to obtain relief from ocean shipping practices or disputes that impede the flow of 

commerce;
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• Ensuring common carriers’ tariff rates and charges are published in private, 

automated tariff systems and electronically available;

• Monitoring rates, charges, and rules of government-owned or -controlled carriers to 

ensure they are just and reasonable; and

• Taking action to address unfavorable conditions caused by foreign government or 

foreign business practices in U.S. foreign shipping trades.

The FMC protects the public from financial harm, and contributes to the integrity and 

security of the Nation’s import and export supply chains and ocean transportation system. 

FMC activities include:

• Licensing and registering ocean transportation intermediaries; 

• Administering and enforcing a surety bond program to ensure payment of judgments 

for damages by NVOCCs and freight forwarders;

• Investigating and prosecuting violations of the Shipping Act and other statutes 

referenced above;

• Helping resolve disputes involving the shipment of goods or the carriage of 

passengers;

• Adjudicating private party complaints alleging Shipping Act violations; and

• Ensuring that passenger vessel operators maintain proper financial coverage to 

reimburse cruise passengers in the event their cruise is cancelled or to cover liability 

in the event of death or injury at sea.

Our Organization

The FMC’s staff is comprised of economists, attorneys, and experts in ocean transportation. 

While most of the Commission’s workforce is located at its Washington, D.C. headquarters, 

the Commission maintains a presence in six major port locations nationwide. 

In addition to the Commissioners’ offices, the staff of the FMC is organized into 10 bureaus 

and offices: 

The Bureau of Certification and Licensing 

(BCL) protects the public from financial 

harm through its ocean transportation 

intermediary (OTI) licensing, registration, 

and renewal program. BCL also protects the 

public by requiring Passenger Vessel 

Operators (PVOs) to maintain adequate 

financial coverage to reimburse cruise 

cancellations or to cover liability in the 

event of death or injury at sea. 

The Bureau of Enforcement (BOE) is the 

prosecutorial arm of the Commission. 

Bureau attorneys serve as trial counsel in 

formal proceedings, and protect the 

shipping public by working closely with the 
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Commission’s Area Representatives in 

investigations of potential violations of the 

Shipping Act and Commission regulations. 

BOE negotiates settlements and informal 

compromises of civil penalties, and may act 

as investigative officers in formal factfinding investigations.

The Bureau of Trade Analysis (BTA) analyzes 

and monitors the concerted activities of 

vessel-owning common carriers (VOCCs)

and marine terminal operators (MTOs) to 

detect and guard against possible 

anticompetitive abuse of authority 

contained in filed agreements under the 

Shipping Act that could result in substantial 

increases in transportation costs or 

decreases in transportation services; and to 

identify and address other prohibited 

activities. BTA also reviews and analyzes 

service contracts, monitors rates of foreign, 

government-owned controlled carriers; and 

reviews carrier-published tariff systems 

under the accessibility and accuracy 

standards of the Shipping Act. 

The Office of the Administrative Law Judges 

(OALJ) resolves cases of alleged violations of 

the Shipping Act and other laws within the 

Commission’s jurisdiction. Through trial 

hearings and the issuance of an initial 

decision, the OALJ ensures that the rights of 

all parties are preserved.

The Office of Consumer Affairs and Dispute 

Resolution Services (CADRS) provides 

assistance to shippers, OTIs, cruise 

operators and passengers, truckers, MTOs, 

and VOCCs by providing alternative dispute 

resolution (ADR) services, ombuds 

assistance, mediation, facilitation, and 

arbitration to resolve disputes involving 

cargo shipments, household goods 

shipments, and cruises.

The Office of Equal Employment 

Opportunity (OEEO) advises and assists the 

Commission in carrying out its 

responsibilities relative to Titles VI and VII 

of the Civil Rights Act of 1964 (as amended), 

other laws, executive orders, and regulatory 

guidelines implementing affirmative 

employment, and the processing of EEO 

complaints.

The Office of the Inspector General (OIG) is 

an independent and objective oversight 

office created within the FMC by the 

Inspector’s General Act of 1978 (as 

amended) to conduct and supervise audits, 

inspections, and investigations relating to 

FMC programs; detect and prevent waste, 

fraud and abuse; promote economy, 

efficiency, and effectiveness; review 

existing and proposed legislation and 

regulations; keep the Chairman, 

Commissioners, and Congress fully 

informed of serious problems and 

deficiencies and recommend corrective 

actions; and report violations of law to the 

U.S. Attorney General.

The Office of the General Counsel (OGC)

provides sound and timely legal services to 

the Commission and staff as it fulfills 

responsibilities that include: preparing final 
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decisions, orders, and regulations for 

Commission approval and issuance; 

representing the Commission in litigation 

before the courts; providing technical and 

policy assistance to other government 

agencies engaged in international 

negotiations or discussions on shipping 

matters; and providing legal opinions to the 

Commission, its staff, and the general public 

in appropriate instances. OGC also oversees 

the Commission’s international affairs 

activities.

The Office of the Managing Director (OMD)

is responsible for implementing the 

administrative directives of the Chairman, 

the management and coordination of 

Commission bureaus, and overseeing the 

agency’s Area Representatives located in six 

major port areas nationwide. It has direct 

oversight of the administrative offices of 

the Commission, which include the offices 

of Budget and Finance, Human Resources, 

Information Technology, and Management 

Services. 

The Office of the Secretary (OS) serves as 

the office through which all filings are made 

in Commission proceedings, notices of 

proceedings are given, and from which all 

official actions are issued by the 

Commission. The OS prepares and 

maintains agenda matters and actions 

taken by the Commission; maintains official 

files and records of formal proceedings; 

ensures compliance with the Freedom of 

Information, Government in the Sunshine,

and Privacy Acts; responds to information 

requests from the public; issues 

publications and authenticates instruments 

and documents of the Commission; 

maintains a public reference/law library and 

a docket library; and oversees the 

organization and content of the 

Commission’s website.
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COMMISSIONER CHAIRMAN COMMISSIONER COMMISSIONER

Office of the 

Inspector 

General

Office of 

Equal 

Employment 

Opportunity

Office 

of the 

Managing 

Director

COMMISSIONER

Office of the 

General 

Counsel

Office of the 

Secretary

Office of 

Administrative 

Law Judges

Office of 

Consumer 

Affairs & 

Dispute

Resolution 

Services

Office of 

Budget and 

Finance

Office of 

Human 

Resources

Office of 

Management 

Services

Office of 

Information 

Technology

Bureau of 

Certification 

and Licensing

Bureau of 

Enforcement

Bureau of 

Trade Analysis

Area Representatives

Houston

Los Angeles

New Orleans 

New York/New Jersey

Seattle/Tacoma 

South Florida

Federal Maritime Commission

Organization Chart

September 2017

Administrative Direction
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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, $26,149,000

$27,490,000: Provided, That not to exceed $2,000 shall be available for official reception and 

representation expenses. (Proposed text derived from: Transportation, Housing and Urban 

Development, and Related Agencies Appropriations Bill, 2018.)

Fiscal Year 2019 Budget Request

The FMC’s Fiscal Year (FY) 2019 Budget Request is $27,490,000 to support 129 full-time 

equivalent (FTE) employees. This is a funding increase of $1.341 million from the Commission’s 

FY 2018 President’s Budget level. 

The Commission has a large statutory mandate relative to its budget and FTE complement, 

encompassing the increasingly challenging role of reviewing and monitoring carrier and MTO 

agreements. Over the past decade, significant changes have recast and transformed the 

international ocean transportation industry, which moves nearly $1 trillion in U.S. exports and 

imports. Notable changes and challenges relate to ongoing carrier consolidations, mergers, and

a carrier bankruptcy. The composition of existing operational alliances already has been upended, and the FMC foresees mounting impacts resulting from both existing and future filed 

agreements. These anticipated changes in concerted carrier activity and market structure will 

require the agency to timely and efficiently analyze the competitive impact of carrier 

cooperation to guard against possible anticompetitive abuse of the filed agreement authority, 

avoid unreasonable increases in transportation costs or decreases in transportation services, 

and to address other activities prohibited by the Shipping Act. 

The Commission’s mission is to maintain a competitive and reliable international ocean 

transportation supply system, balancing the cost-containment strategies and cooperative 
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working arrangements of the carrier industry with the legitimate business needs of the Nation’s 

many exporters/importers to ensure their goods reach international markets efficiently and 

reliably. In the face of the changes addressed above, the FMC will:

• analyze and monitor key U.S. trade lanes;

• review and analyze the competitive impact of agreements;

• assess the competitive effects of the activities of agreement parties, particularly focusing 

on issues of vessel capacity (supply) and equipment availability upon the business 

community; and

• monitor changes taking place in the provision of chassis for the inland movement of 

containerized goods, and the competitive effects of changing carrier alliance structures, 

particularly as they may affect concerted procurement of carrier services in U.S. ports. 

Over many years and budget cycles, the appointed Commissioners and professional staff of the 

FMC have fashioned a working agency budget consistent with the Administration’s needs and 

objectives. At the Commission level, workload and staffing needs (stated in full-time 

equivalents or FTEs) are carefully balanced and reconciled annually against supplemental 

contract support and information system development intended to manage FTE growth and 

improve the quality and timeliness of FMC decision-making. The FMC continues to provide 

budgets that match OMB financial guidance and build the framework for future agency 

performance. 
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FMC’s Proposed FY 2019 Budget

At the Presidential budget amount of $27,490,000, this budget request chiefly covers estimated 

costs for mandatory operational needs. As depicted in the following chart, 97.15% of the FMC’s 

FY 2019 Budget Request provides for payroll expenses, mandatory rent, telephones, 

interagency services, and mission-critical commercial contracts. The remaining 2.85% must

cover supplies and equipment, training, and official travel.

In meeting the President’s budget target, the FMC’s FY 2019 budget increases the projected 

workforce by two FTEs, to 129. The FMC is statutorily mandated to include the following: two

Presidentially-appointed Commissioners who will each require one counsel position to support 

said Commissioners. Inclusive of these four mandated positions, the Commission must realize a 

net increase in personnel costs of $519,000, inclusive of annualization of FY 2018 salary 

changes. 

This FY 2019 Budget Request includes a number of graphs and tables which explain the funding 

and FTE resources needed to meet the Commission’s mission and statutory mandates. 

Appendices A and B provide detailed funding and FTE requirements at the program 

level. Appendix C categorizes the funding resources needed for FY 2017 through FY 2019 by 

object class. Appendix D provides funding by program areas and the relationship of the 

Commission’s obligations to outlays by fiscal year. 
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Appendix E provides an overview of the FMC’s newly proposed Strategic Goals, Objectives, and 

Performance Measures covering FY 2018-2022. Appendix F provides the Commission’s 

Workload Summary statistics, Appendix G is an Evidence Submission for agency decisionmaking, and Appendix H is the Certification of the Office of the Inspector General’s FY 2019 

Budget Request.

One of the Commission’s highest investment priorities remains the ongoing development and 

deployment of the FMC’s information systems. A comprehensive multiyear Information 

Technology Capital Planning and Investment Control program, currently underway, will improve 

efficiency, reliability, and effective delivery of customer service, as well as ensure cybersecurity 

readiness. When fully implemented, these investments will automate, streamline, and improve

the Commission’s internal business processes; expand research and analysis capabilities;

provide better transparency and public access to FMC information; eliminate paper-based 

systems in favor of web-based, automated systems used by the shipping public to file license 

applications, carrier and MTO agreements, and commercially sensitive operational data 

necessary for FMC economist staff to conduct competition analysis.

IT contractor support fills a critical need in the area of application development for the 

Commission’s line of business applications. This strategy allows the FMC to acquire designated 

software support and engineer services that assists the FMC’s IT staff in modernizing the FMC’s 

infrastructure, server platforms, and in the development of web-based applications. Working 

with expert commercial IT support, an FMC application developer systematically assesses 

current and proposed web application development needs as the basis to create and execute a 

multi-year plan to modernize each application. Management’s emphasis upon internal 

development has strengthened the internal staff’s understanding of the mechanics of each 

application, ensured clear communication of need and timelines with the FMC’s system owner 

(program office), and afforded IT staff the capability to assist in the maintenance of various 

applications and troubleshooting of future issues. By relying upon outside contractor support 

for the most specialized programming tasks, this plan has decreased our overall IT staffing 

needs for all previously identified and upcoming application development efforts. As

programming needs mature, contractor services can be reduced. Permanent staffing can, in 

turn, be allocated to other critical program areas.
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For FY 2018, the FMC intends to complete work on the existing Service Contract filing system 

(SERVCON), an IT system “refresh” designed primarily to improve the robustness and resiliency 

of the system. Subject to availability of funding, OIT will continue with its application 

modernization plan in FY 2018 and beyond, updating and deploying the applications needed by 

program staff in the various operating Bureaus of the FMC, as shown in the following table:

IT Systems to be Updated FY 2017 FY 2018 FY 2019 Notes

SERVCON (Update of service 

contract filing system)

Programming 

/ Testing

Programming 

/ Testing Deploy Completed in FY 2018.

FMC-18 OTI License & Registration 

Application (back office) Future Programming / Testing

Programming 

/ Testing

Expect project to begin in FY 

2018 and complete in FY 2020.

E-bonds (Electronic Bonds)

filing system Future Programming 

/ Testing

Programming 

/ Testing

E-filing system for OTI surety 

companies to be developed in 

conjunction with FMC-18.

FMC-1 filing system Future Programming 

/ Testing

Programming 

/ Testing

Stand-alone FMC-1 tariff 

locator will be integrated into 

updated FMC-18.

Regulated Persons Index (RPI) 

(Data Store integration) Future Programming 

/ Testing

Programming 

/ Testing

Stand-alone RPI will be 

integrated into updated FMC18 system.

FMC-18 license renewal for OTI 

licensees

Deployed

3/2017 Deployed Deployed

Originally developed and 

deployed as standalone; 

will migrate to FMC-18 system 

when re-deployed.

FMC-65 registration renewal for 

foreign-based OTIs

Deployed

8/2016 Deployed Deployed

Originally developed and 

deployed as standalone;

will migrate to FMC-18 system 

when re-deployed.

FMC-18 OTI Applications & Bonds 

Fillable/Fileable Forms Deployed 

3/2017

Deployed Deployed Will migrate to FMC-18 system 

when deployed in FY 2020.

OS electronic filing; record 

retention and electronic reading 

room

Future Future Future

Project to begin in FY 2020 or 

later, upon deployment of 

updated FMC-18 system.

PIERS interactive

(BTA internal data store) Future Future Future Project to begin in FY 2020.

Agreement library Deployed

8/2016 Deployed Deployed Public website data made available FY 2017.

Passenger Vessel Operator

(BCL system for application filing, 

processing, reports)

Future Future Future

Project to begin FY 2021 or 

later.
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In FY 2019, OIT’s application modernization program will focus on “back office” technology and 

programming for one of our keystone applications, Form FMC-18, used by the public in applying

for ocean freight forwarder and NVOCC licenses. The current FMC business workflow system 

has limitations and the majority of staff’s processing remains paper-based. This project will 

combine five disparate agency applications currently used to process OTI license applications, 

track the issuance and validity of required surety bonds, collect and publish the location of 

carrier tariffs, and process renewals of OTI licenses and registrations. The Commission 

anticipates that development of an enterprise data store shared among four offices and two 

operational Bureaus will significantly improve internal business process collaboration, eliminate 

data entry duplication, and reduce overall OTI application processing time. 

Against the backdrop of year-on-year increases in the number of licensees and registrants (from 

6,068 in FY 2015; 6,156 in FY 2016; to 6,350 in FY 2017); OTI updates every 3 years under a new 

user-friendly processing system; and thousands of bonding transactions annually, automation 

offers the most potent, effective, and efficient alternative to increasing the FMC licensing 

workforce. New technology and programming will enable instant access to documents, data, 

and real-time status of applications, licenses, and registrations, improving the quality of staff 

processing and decreasing the time required for management oversight. These latter 

objectives comprise a cornerstone of the Commission’s plans responsive to OMB Memorandum 

M-17-22, Comprehensive Plan for Reforming the Federal Government and Reducing the Federal 

Civilian Workforce, issued April 12, 2017. Continued automation of FMC work processes 

promises improved organizational efficiency and effectiveness and will help drive workforce

and performance management in the future. 

The benefits of FMC automation are by no means speculative. Savings of nearly $480,000 per 

year in total cost burdens to the filing public are anticipated from the automation of the 

Commission’s licensing and registration forms alone. The FMC now seeks to pursue the next 

phase of automating our systems: implementation of an advanced licensing system to receive,

internally process, provide records management, and full messaging functionalities for 

licensing, registration, and bonding of all OTIs. As part of an integrated, comprehensive plan for 

IT development, future performance success will remain contingent upon IT funding being 

continued through final programming, beta testing, and acceptance in FY 2020.

The FMC also will commence programming necessary for development of an embracive system 

supporting electronic filing, record retention, and an electronic reading room on behalf of the 

Office of the Secretary. The OS serves as the designated office through which all filings are 

made for matters before the Commission for decision, notices of proceedings are given, and 

from which all official actions and decisions are issued by the Commission. To be developed 
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primarily as an outward-facing web database application, this system will track and publish 

electronic documents received or issued in formal proceedings, rulemakings or other formal 

actions. Documents validated through this automated system would be immediately shared 

with the other parties to a proceeding and simultaneously posted on the Commission’s public 

website for public review, supporting an aggressive performance metric requiring timely 

publication, as set forth in the agency’s Strategic Plan. 

To ensure cybersecurity readiness, and facilitate document management and online 

collaboration, the FMC has increasingly moved its mission-critical applications and data to the 

cloud. The FMC’s investment in IT supports: (1) the cloud services that deliver FMC continuity 

of operations, disaster recovery, and secure backup routines; (2) agency-wide VOIP 

communications services for in-office, web, and hand-held devices; and (3) multiple software 

licenses essential to support remote and shared access to software and systems for all 

employees in their day-to-day execution of the Commission’s mission. 

Maintaining continuous delivery of critical software and applications (“uptime”) requires 

complex technology and monitoring tools to analyze and resolve network issues, as well as 

provide desktop management, troubleshooting, and ongoing data back-ups to preserve critical 

information. Inclusive of Office 365 licensing, collaboration software such as SharePoint that 

permits staff to share and manage online documents and spreadsheets, and Azure 

programming by which online applications are built, deployed, and managed in-house, the 

costs to maintain and update agency applications and office productivity programs exceed 

$170,000 annually. Software licenses and regular updates remain essential to ensure network 

and server uptime; for management, troubleshooting, and helpdesk services and reporting; and 

management of the agency’s mobile phones for FMC executives and personnel in the field. 

Likewise, efforts to comply with the Department of Homeland Security (DHS), National Institute 

of Standards and Technology (NIST), and the United States Computer Emergency Readiness 

Team (US-CERT) monitoring requirements for network security demand near-continuous 

updating. The agency also must invest in internal security tools to effectively monitor network 

operations, including integrity of files, password sufficiency, probing for open ports and other 

externally visible points of attack. Cybersecurity-related software alone is estimated to cost 

nearly $44,000 in FY 2019. These software investments will meet a number of governmentwide requirements including mandatory cybersecurity and Federal Information Security 

Modernization Act (FISMA) requirements; government-wide MTIPS (Managed Trusted Internet 

Protocol Service) requirements; OMB Memorandum M-17-25, Reporting Guidance for Executive 

Order on Strengthening the Cybersecurity of Federal Networks and E.O. 13800; as well as OMB 
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Memorandum M-17-12, Preparing for and Responding to a Breach of Personally Identifiable 

Information. 

Fiscal Year 2019 funding will support Presidentially-appointed Commissioners to meet with 

stakeholders, make presentations that inform the shipping public about FMC activities and 

services, and receive valuable input from the public on Commission programs and industry needs. 

Through its outreach efforts, the FMC seeks development of commercial solutions to supply 

chain challenges and related port congestion concerns. For example, in May 2017, 

Commissioner Rebecca F. Dye briefed the U.S. Senate Subcommittee on Surface Transportation 

and Merchant Marine Infrastructure, Safety and Security concerning the FMC’s Supply Chain 

Initiative Teams (SCIT), small teams of industry leaders focusing upon "actionable" process 

innovations that would improve overall international supply chain reliability and resilience on 

the import side. External teams represent key supply chain industries: ocean carriers, U.S. 

ports, marine terminal operators, warehouse operators, chassis providers, longshore labor, 

trucking, railroads, intermediaries, and American exporters and importers. A bedrock concept 

of the SCIT is the Commission’s commitment to help the industry address its challenges, while 

rejecting the notion that additional government regulation will enhance performance of the 

commercial supply chain. 

Convening face-to-face meetings of participants is key to generating cooperative approaches to 

data sharing, and agency travel to meet with the participants in regional ports should be seen 

as a necessary investment towards improving American economic competitiveness. Without 

adequate funding for travel, FMC initiatives seeking to promote commercial solutions to 

industry problems will founder.

Adequate travel funding will facilitate public engagement by Commissioners and FMC 

professional staff with port and industry officials at major gateway ports throughout the U.S., 

e.g., FY 2019 port visits and presentations in New York, Los Angeles, Miami, and other major 

port cities, and in supporting the U.S. Department of State and the U.S. Maritime 

Administration in bilateral negotiations with foreign nations including China, Japan, and South 

Korea. Domestic U.S. travel is also required by the FMC’s investigative staff to identify and 

document unlawful trade practices in various U.S. ports.

The Commission will continue the document scanning project within the Office of the Secretary. 

Due to the high volume of records filed with OS and the obligation to retain such documents as 

“official” records of the Commission under NARA standards, (e.g., National Archives and 

Records Administration Act of 1984, Pub. L. 98-497, and regulations at 36 C.F.R. Part 1220),

digitalization provides an effective space-saving alternative to boxing and retaining on site 
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Federal Maritime Commission 15

voluminous printed copies of filed documents, internal staff recommendations and issued 

Commission decisions, and paying for off-site storage of official records at a National Records 

Center. This effort may have the collateral effect of aiding the FMC’s ongoing efforts to reduce 

its footprint, building rent, and associated facility security costs. It will increase service to the 

public and the agency’s workforce seeking remote access to digitized documents, and allow a 

more efficient and timely response to public inquiries including processing Freedom of 

Information Act requests. 

FMC Strategic Plan and the FY 2019 Budget Request

Over the past five decades, international ocean transportation has changed dramatically and 

continues to evolve. The FMC, an independent agency charged with regulating liner shipping in 

the U.S. trades, has adapted to and evolved with those changes. From its creation through a

statutory reorganization in 1961, the FMC has worked to further its mission to ensure a

competitive and reliable international ocean transportation supply system that supports the 

U.S. economy and protects the public from unfair and deceptive practices. While the specifics 

of U.S. maritime policy and legislation have changed markedly during the last few decades, the 

FMC’s goal of protecting American exporters, importers, and end consumers remains the 

cornerstone of today’s regulatory efforts. Consequently, the Commission’s Strategic Plan 

focuses on the goals of maintaining a competitive international ocean transportation system for 

U.S. exporters and importers and protecting the shipping public from financial harm. 

Building upon the success of our prior Strategic Plan, which covered FY 2014-2018, the 

Commission issued its Initial Draft Strategic Plan for FY 2018-2022. The Commission released its 

Initial Draft Strategic Plan for public comment in November 2017 and shared its Initial Draft 

with OMB. The Commission submitted its Initial Draft FY 2018-2022 Strategic Plan to Congress 

for review and comment in December 2017. 

The FY 2018-2022 Plan provides the framework to address current and anticipated challenges in 

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

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

needs of a rapidly changing ocean shipping industry. The FMC’s two strategic goals, as well as a 

section on its administrative functions, will guide the Commission’s efforts and ensure that the 

Commission remains an efficient and effective steward of the public’s interest. It is intended to 

be flexible and adaptable as the shipping industry and the challenges facing the industry 

continue to evolve, while providing clear and measurable targets that will drive continuous 

improvement in the FMC’s performance.
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The Commission supports key government-wide initiatives by working to increase efficiencies 

and customer service initiatives, transparency, and by providing public access to information to 

make a positive difference in the lives of the American people and the economy. The FMC’s 

mission supports the President’s commitment to economic growth and job creation. 

The Commission’s FY 2018-2022 Strategic Plan contains two strategic goals. The first goal –

maintain a competitive and reliable international ocean transportation supply system –

encompasses the critical tasks of reviewing and monitoring carrier and MTO agreements, and 

monitoring foreign shipping practices. The second goal – protect the public from unlawful, 

unfair, and deceptive practices – encompasses a broader mandate to protect the shipping 

public. As reflected in the table below, of the total FY 2019 request, $6,771,057 and 31.37 FTEs 

are needed to support Strategic Goal 1. Strategic Goal 2 support requires $20,718,943 and 

97.63 FTEs. 

FY 2017 FY 2018 FY 2019

Actual Estimate Request

FTE: Headquarters & Field 125.05 126.63 129.00

Cost: Salaries & Benefits $18,834,382.72 $19,563,000.00 $20,082,000.00

Non-Personnel Expenses $8,391,270.71 $6,586,000.00 $7,408,000.00

Total Cost $27,225,653.43 $26,149,000.00 $27,490,000.00

$6,771,057.12

Executive Summary

FY 2019 FTE by FMC Strategic Goal

Strategic Goal 2

$20,718,942.88

Strategic Goal 1

Federal Maritime Commission

FY 2019 Cost by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair, and 

deceptive practices

97.63

Strategic Goal 1

Maintain a competitive and reliable international 

ocean transportation supply system

31.37
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Commission-wide action items, addressed on pages 24-26, identify the FMC’s ongoing 

commitment to fiscal stewardship by continually looking to improve its operational 

infrastructure as well as the availability of informational resources for the benefit of public and 

industry stakeholders.

Strategic Goal 

#1 

31.37

Strategic Goal 

#2 

97.63

FTE Request by Strategic Goal

Maintain a competitive 

and reliable international 

ocean transportation 

supply system

Protect the public from unlawful, 

unfair, and deceptive practices
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The Commission is committed to integrating evidence into its strategic decision-making, and 

tracking its progress through performance metrics. Relevant workload statistics are set forth in 

Appendix F. An evidence submission demonstrating the FMC’s progress is included in Appendix 

G. 

Strategic Goal 1: 

Maintain a competitive and reliable international ocean transportation supply system 

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

increases in transportation costs and/or unreasonable decreases in transportation

services. 

• Competition under the FMC’s Authority

In FY 2017, the Commission received 144 agreement filings, including both new agreements 

and amendments to existing agreements. This level of activity is notable in that it is the first 

time in several years that the number of agreement filings has decreased. 

A number of factors have been converging over the last several years to prompt carriers both to 

reconfigure their alliance arrangements under the Shipping Act and to consolidate their 

operations. While cargo volumes have increased in recent years, the rate of increase has not 

returned to the stronger levels of growth that existed prior to the 2008-2009 global recession. 

The slower growth in demand for liner shipping services and the ongoing deployment of mega 

container ships have impacted the financial stability of liner carriers. Vessel capacity continues 

to be more than sufficient to meet demand. The ongoing imbalance of vessel supply over 

demand continued to place downward pressure on ocean freight rates during the fiscal year. 

Globally, during FY 2017, the average utilization of vessel capacity was 82 percent in the 

headhaul trades (trade lanes generating the highest revenues, and generally those with the 

greater cargo volume) and 47 percent in the backhaul trades (trade lanes that carry less cargo 

volume on the return leg).

As a result of downward pressure on ocean freight rates and the resulting financial pressures 

for carriers, FY 2017 witnessed a continued wave of mergers, acquisitions, and joint ventures,

as well as increased cooperation among ocean carriers subject to the Shipping Act. During the 

fiscal year, Hapag Lloyd acquired United Arab Shipping Company, Maersk Line began the 

process of acquiring Hamburg Süd, and COSCO announced plans to purchase OOCL. The three 

Japanese carriers, K Line, MOL, and NYK, plan to merge their liner shipping services effective 

April 2018. In addition, carriers reconfigured their global alliance arrangements and services 
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from four agreements (2M, CKYHE, G6, and Ocean 3) to three agreements (2M, OCEAN Alliance, 

and THE Alliance), as discussed below.

At the end of FY 2017, the three global carrier alliances — THE Alliance, the OCEAN Alliance,

and the 2M Alliance — collectively controlled 91 percent of vessel capacity in the two largest 

U.S. trades, the transpacific and the transatlantic. The transpacific trade encompasses cargo 

moving between Asia and the U.S., while the transatlantic trade includes cargo moving 

between Europe and the U.S. The current configuration of ocean carrier alliances has

continued to grow their market shares in these trades, in many cases through the acquisition of 

other carriers. 

With the industry in the process of significant structural change, the FMC will continue to play 

an important role in analyzing agreements for anti-competitive practices, overseeing the 

changes and monitoring the impact on the Nation’s exporters/importers to ensure goods reach 

international markets efficiently and reliably.

Fiscal Year 2017 was the first year that the Commission primarily utilized the new eAgreements 

electronic agreement filing and review system for ocean common carrier agreements. The 

deployment of this system has proven to be well received by the industry, with more than 90 

percent of carrier agreement filings now submitted electronically. The new online system has 

streamlined FMC business processes by reducing initial agreement intake time resulting in 

faster public access to pending filed agreements – significantly reducing administrative costs for

both the industry and Commission staff. In FY 2018, the FMC intends to complete a full audit of 

all marine terminal operator agreements currently on file, a process that began in FY 2017. 

Once compliance with all applicable regulations is ensured, the Commission will upload those 

agreements to the new eAgreements system. In doing so, the benefits described above will be 

extended to all agreements, not just those between and among vessel operating common 

carriers. The shipping public will receive 24/7 access to these filings.

The Commission issued a final rule on April 4, 2017, amending the Commission’s service 

contract and NVOCC service arrangement rules. The rulemaking aimed to relieve regulatory 

burdens. In particular, the Commission amended its regulations to allow amendments to 

service contracts and NVOCC service arrangements to go into effect before being filed with the 

Commission, which grants the industry additional contractual flexibility and enhanced ability to 

respond to real time market conditions.

In FY 2018 and FY 2019, the Commission will continue to monitor service contract, tariff, and 

agreement activities, prepare reports and economic analyses on developments and issues in 

key U.S. trades, review the activities of controlled carriers, and respond to inquiries and 
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informal complaints. The FMC will continue to monitor key U.S. trade lanes. The FMC will 

review and analyze the competitive impact of agreements and evaluate the activities of 

agreement parties, particularly focusing on issues of vessel capacity and equipment availability. 

In addition, the Commission will continue to assess changes taking place in the provision of 

chassis for the inland movement of containerized goods and the competitive effects of 

changing carrier alliance structures. 

Strategic Goal 2: 

Protect the public from unlawful, unfair, and deceptive practices

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

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

action to end unlawful, unfair, and deceptive practices. Major investigations undertaken or 

completed during FY 2017 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. Enforcement-based initiatives will continue to address

VOCCs and NVOCCs that engage in unfair service contracting practices, particularly those 

practices which permit unlicensed OTIs to compete unlawfully with carriers and OTIs operating 

in compliance with U.S. laws. The FMC will pursue enforcement actions against those who 

pursue market-distorting, fraudulent, or anti-competitive practices harmful to the industry and 

the public.

In FY 2017, the compliance and audit program continued its major focus on reviewing the 

operations of licensed OTIs to assist them in complying with statutory and regulatory 

requirements. The audit program also reviews entities holding themselves out as VOCCs to 

determine the existence of actual vessel operations. During the fiscal year, 157 audits were 

commenced and 143 were completed (see Appendix F for these and other workload statistics). 

During the fiscal year, the Commission completed notable compromise agreements with 

several major NVOCCs serving the inbound Far East-U.S. trades, addressing a variety of service 

contracting malpractices. The Commission continued ongoing investigations relating to unfiled 

VOCC agreements in the U.S.-foreign trades, both inbound and outbound, and concluded 

investigations with collection of penalties. 

The FMC is active in security initiatives as they relate to U.S. ocean commerce, and works 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 executed a Memorandum of Understanding 
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(MOU) with the U.S. Customs and Border Protection to provide a more efficient utilization of 

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

Department of Commerce, to provide the FMC with access to the Census’ Automated Export 

System (AES) database. These relationships allow the FMC to access confidential U.S. export 

shipment data to accomplish its mission and to protect the Nation’s security interests. The 

Commission also supports the Nation’s economic and security interests by partnering with the 

National Intellectual Property Rights Coordination Center (IPR Center), a Department of 

Homeland Security-led partnership of 23 federal and international agencies targeting 

intellectual property- and trade-related crimes. This partnership has resulted in coordinated 

enforcement efforts to address international criminal activity.

Objective 2: Prevent public harm through licensing and financial responsibility 

requirements 

Ocean transportation intermediaries are transportation middlemen for oceanborne cargo 

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

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

minimum of three years of experience in the U.S., as well as establish its financial responsibility 

by means of a bond, insurance, or other instrument. 

Over 6,250 OTIs are regulated by the Commission, consisting of over 4,800 licensed entities and 

about 1,450 foreign-based registered NVOCCs (see Appendix F for these and other workload 

statistics). About 750 OTI applications are received annually, and of those, approximately 70

percent are processed for formal determination of approval. The remaining 30 percent are 

returned to the applicant due to lack of completeness or lack of appropriate qualifications. All 

licensed and registered OTIs must maintain proof of financial responsibility with the 

Commission. At present, this amounts to over $675 million in surety bonds to protect the 

shipping public.

The triennial update program for OTIs licensed with the FMC was successfully launched in 

March 2017. Approximately 1,600 OTI licenses will be updated annually. As planned, 17 

percent, or 804 of the 4,839 FMC-licensed OTIs, completed their renewals in the first 6 months 

of this new program. The update process is online and in most cases, takes only 5 minutes – a 

user-friendly process facilitated by pre-populating the outgoing FMC inquiry with the OTI’s 

information currently on file for quick verification.

The update process is already improving the accuracy of OTI records, and timeliness of 

reporting material changes in ownership and operations, for the benefit of OTI sureties, 

carriers, and the shipping public. During this initial 6-month period, the following updates or 
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changes to information on file with the Commission were reported during the license renewal 

process: 613 ownership and/or officer changes, 220 affiliation changes, 99 branch office 

changes, and 118 business address changes.

The FMC also oversees a program to ensure financial responsibility for passenger vessels that 

have berth or stateroom accommodations for 50 or more passengers and embark passengers at 

U.S. ports and territories. The requirement for Certificates of Performance, which provide 

financial responsibility for the indemnification of passengers for non-performance of 

transportation, prevents unscrupulous or financially weak operators from serving U.S. ports. 

The Passenger Vessel Operator (PVO) program encompasses 225 vessels and 47 passenger 

vessel operators, with aggregate evidence of financial responsibility coverage of $594 million 

for non-performance and $705 million for casualty. Through its website and the CADRS office, 

the FMC offers information and guidance to the cruising public on passenger rights and 

obligations regarding monies paid to cruise lines that fail to perform voyages.

In FY 2018 and FY 2019, the Commission will pursue further opportunities to streamline its 

business processes and consider additional regulatory reforms, as appropriate, including: 

(1) reviewing the impact of recent rule changes affecting the passenger vessel program and 

exploring alternatives to enhance PVO monitoring procedures; (2) reviewing procedures 

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

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

Commission will leverage its existing data collection of surety bond usage to measure how 

effectively bonds are protecting the industry and the public. 

Objective 3: Enhance public awareness of agency resources, remedies, and regulatory 

requirements through education and outreach

The Commission provides information in many forms to educate regulated entities, 

stakeholders, and the public about its resources, remedies, and regulatory requirements. The 

Commission’s website offers brochures, how-to guides, forms and applications, reference 

libraries, news releases, information on investigations, and advice on topics such as FMC 

regulations, OTI licensing, household goods moves, and use of ADR services to assist parties 

with resolving cruise- and cargo-related disputes. In addition, throughout the year, Commission 

staff participate in presentations and instructional opportunities to educate consumers and 

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

available FMC resources to resolve formal proceedings, service contract matters, and other 

commercial shipping disputes. 
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The FMC will continue its efforts to increase public access to Commission resources by 

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

document repository. Further, the Commission’s IT plan will increase availability of public 

documents, including minutes of Commission actions under the Sunshine Act, on the FMC’s 

website. In addition, the Commission continues to enhance its technological capabilities to live 

stream the agency’s public meetings over the world wide web.

Objective 4: Impartially and timely resolve international shipping disputes through 

alternative dispute resolution and adjudication

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

carriers, MTOs, and OTIs. The Commission’s Area Representatives and CADRS educate industry 

members and the public on the Shipping Act and shipping regulations, and help to address 

international ocean transportation disputes. 

The FMC, through CADRS, offers both facilitation and arbitration services to the industry and 

shipping public to resolve disputes. An online mediation tutorial and tool was created for 

parties to use to prepare for mediation. The Commission supports mediation and collaborative 

dispute resolution when feasible, and requires parties involved in formal Commission docketed 

proceedings to attend mandatory mediation conferences. 

The Administrative Law Judges (ALJs), whose independence is protected by the Administrative 

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

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

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

penalties for law violations. The Chief ALJ also has the authority to assign small claims 

complaints, valued at up to $50,000, to a Small Claims Officer for resolution. 

Commission Action Items – Supporting Government-wide Priorities

The Commission serves the public transparently. The FMC is committed to making smart 

investments and using management strategies to deliver effective and efficient government 

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

Customer Service

A number of the Commission’s offices and programs provide direct services to the public. 

CADRS receives time-sensitive requests for assistance from shippers, carriers, and cruise line

passengers. The Commission’s Area Representatives are located near key maritime ports (Los 

Angeles/Long Beach, Seattle, New York, Houston, New Orleans, and Miami) and operate as the 

front line for questions and issues facing the industry. The Office of the Secretary updates the 
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FMC’s website and social media frequently, providing timely and important information to the 

public. The FMC responds to requests for information from the media and the public. Other 

offices interact with the industry and the public by providing information and assistance with 

tariffs, licensing, and competition-related issues. The FMC works diligently to provide the 

public with exceptional customer service. 

Efficient Government — Reducing Regulatory Burden and Improving Necessary 

Information Collection 

The FMC 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 

circumstances. Toward the goal of eliminating or reforming regulations, the Commission 

designated its Managing Director as the Regulatory Reform Officer, who now leads an internal 

team to identify regulations that have become less relevant or are unduly burdensome. 

On November 29, 2017, the Commission issued a Notice of Proposed Rulemaking in Docket No. 

17-10, Amendments to Regulations Governing NVOCC Negotiated Rate Arrangements and 

NVOCC Service Arrangements, soliciting public comments on a plan to amend regulations 

governing NVOCC Service Arrangements (NSAs) and NVOCC Negotiated Rate Arrangements 

(NRAs) to make them easier for shippers to use. 

In FY 2017, staff prepared recommendations for Commission consideration of potential 

regulatory reforms to the filing and processing of agreements, quarterly monitoring reports and 

agreement meeting minutes, taking into consideration industry comments received in response 

to its Notice of Proposed Rulemaking (NPR) in Docket No. 16-04, Ocean Common Carrier and 

Marine Terminal Operator Agreements Subject to the Shipping Act of 1984. The Commission

anticipates that the agreements rulemaking initiative will conclude in FY 2018. 

On January 12, 2018, the Commission published a Plan for Regulatory Reform of Existing FMC 

Rules, outlining the FMC’s plan to identify regulations that may be suitable for reform or 

elimination, and establishing a schedule to consider further review and action on each 

identified regulation. 

To help the Commission properly allocate its resources to most effectively meet its mission, it 

relies on evidence-supported policy and program decision-making in implementing its Strategic 

Plan. The Commission’s draft FY 2018-2022 Strategic Plan was submitted to OMB; published for 

public comment; and submitted to its Congressional Oversight Committees for review and 

feedback. The FMC’s commitment to measurable goals can be seen in Appendices E, 

Performance Measures by Strategic Goal; F, Workload Summary; and G, Evidence Submission. 
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Information Technology

The FMC remains committed to continuous enhancement of its IT systems, which will make it 

faster and easier for individuals and businesses to find information and complete required 

filings with the FMC. This enhancement will also improve the design, usability, and platform of 

the website docket library and historical document repository. Importantly, IT upgrades will 

increase staff productivity and their ability to work collaboratively. 

The Commission continues to migrate workflow documents for both Commission staff and the 

public to reduce dependency on paper filings. Further, the Commission will increase

transparency and availability of documents through its website, including Sunshine Act meeting 

materials. Also important are FMC initiatives to improve visibility of critical information,

archiving, and streamlining of content to improve information delivery and accuracy.

Efforts to advance the Commission’s Information Resources Management Strategic Plan and IT 

Capital Plan require continued funding to critical system maintenance and development. In 

recent fiscal years, the FMC moved critical applications to the cloud to ensure regular and 

effective data backups. The FMC is compliant with Department of Homeland Security 

continuous monitoring requirements for network security and deploys internal security tools to 

effectively monitor network operations, including integrity of files, password sufficiency, 

probing for open ports, and other externally visible points of attack. 

People and Culture 

The diligent work of its small and dedicated staff is critical to the FMC achieving its mission. The 

FY 2019 budget request allocates 73% to salaries and benefits for these employees. To ensure 

that the FMC attracts qualified candidates with the skillsets necessary to provide exceptional 

service to the public, the FMC is committed to foster employee satisfaction in the workplace, 

provide relevant training for job skills and employee professional growth, and to improve 

workplace flexibilities. 

Workplace Satisfaction 

Employees that are satisfied with their employer, and the work that they do, strive to excel. 

The FMC participates in the Office of Personnel Management’s (OPM) Federal Employee 

Viewpoint Survey (FEVS) to gather information on employee satisfaction. The Commission also 

seeks input on workplace satisfaction through regular all-hands meetings, top-level meetings 

with staff, and agency-wide employee teams. In 2013, the FMC made improving employee 

morale and workplace satisfaction a priority objective, and has made positive strides in 
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improving workplace satisfaction in terms of leadership, transparency, matching skills to its 

mission, and work/life balance. 

Through the Workplace Improvement Plan (WIP), employee teams address workplace 

initiatives such as diversity training, employee suggestions, telework, fitness program, 

expansion of work schedule options, and peer recognition. The Commission’s senior leadership 

encourages staff involvement and provides opportunities for participation in these teams. The 

WIP process continues to be a driving force in workplace and successful employee engagement.

Based on FEVS results, the FMC was recognized in 2015 by the Partnership for Public Service 

(Partnership) as part of their annual rankings of the Best Places to Work in the Federal 

Government and received an award for being the 2015 Most Improved Small Agency. The FMC 

continued to build on its 2015 accomplishments and was recognized in 2016 for substantial 

increases to the FEVS. Among small agencies, the FMC was recognized as having the second 

largest increase in the overall Employee Engagement Index as well as the largest increase under 

the New IQ in Fairness and the third largest increase in New IQ (Open). 

In FY 2017, the FEVS was again offered to all permanent FMC employees onboard as of 

October 31, 2016. Of the 100 employees surveyed, 75 (75%) chose to participate. This was an 

increase of 4% over 2016 participation. Additionally, the FMC included 8 Agency Specific 

Questions to further aid in refining the Commission’s employee engagement strategy. Items 

that are rated at 65% positive or higher are considered strengths, and the FMC had 47 such 

items. The areas with the 5 highest positive responses in 2017 included:

1. When needed I am willing to put in the extra effort to get a job done (96% positive);

2. I am constantly looking for ways to do my job better (94% positive);

3. I know how my work relates to the agency’s goals and priorities (92% positive);

4. How would you rate the overall quality of the work done by your work unit (91% 

positive); and

5. I am held accountable for achieving results (89% positive).

Items that are 35% or more negative are considered a challenge. The FMC had no items at 35% 

negative or higher.

Overall, 44 survey items increased since 2016 and the top 5 included:

1. In my work unit steps are taken to deal with a poor performer who cannot or will 

not improve (14% increase);

2. The skill level in my work unit has improved in the last year (14% increase);

3. How would you rate the overall quality of work done by your unit (14% increase);
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4. Employees in my work unit share job knowledge with each other (12% increase); and

5. I know how my work relates to the agency’s goals and priorities (10% increase).

As a result of these impressive gains, the Commission moved from 23 to 17 among small 

agencies in the Best Places to Work ranking for 2017. As recognition, the Commission was 

honored by the Partnership as the Most Improved Small Agency Over the Last 5 Years during 

the annual Best Places to Work Ceremony. 

• Training

The FMC offers job and professional training opportunities to all employees. Online training, 

provided through a commercial vendor to Commission employees, is a cost-effective way to 

ensure that appropriate training is available year-round. The online offerings include classes in 

IT technical skills, project management, communication, leadership, management, and writing. 

The Commission’s Office of Human Resources provides annual performance management 

training, telework training, and announces opportunities for employees to participate in classes 

offered by the Small Agency Council. The Office also created and provided agency-wide training 

Employee Benefits Seminar and Pre-Retirement Seminar, Benefits Overview for FERS Employees, 

and a training course on Writing Effective Performance Narratives and Delivering Meaningful 

Performance Feedback for supervisors and leaders.

• Work Flexibilities: Alternate/Flexible Schedules and Telework

The FMC offers employees alternative, flexible work schedules and telework opportunities, 

which increase employee productivity and improve work/life balance. More than 50% of the 

staff participate in compressed/flexible work schedules, with the further option of telework. 

The FMC released an updated Commission Order 92, Work Schedules, adopting additional 

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

Managing Real Property Needs — “Freezing the Footprint”

The FMC works in partnership with the General Services Administration (GSA) as a good 

steward of government resources. In looking to better align the size of federal real property 

assets with actual program needs, the FMC further reconfigured its headquarters space during 

FY 2017, and returned approximately 1,395 square feet of space, providing an annual cost 

savings of approximately $63,000. The FMC will continue to evaluate its space needs going 

forward.
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Enhancing Shared Services 

In order to achieve efficiencies and cost-savings, the FMC uses shared services to accomplish 

some of its fiscal and personnel-related administrative functions. Each service is regularly 

reviewed to ensure that the best value is provided to the public. 

For example, after a thorough review of the FMC’s EEO program needs, it was determined that 

the Commission would benefit from utilizing a shared service with another agency for the role of 

an EEO Director. The FMC is job-sharing this position with the Surface Transportation Board

(STB), and this position serves as EEO Director for both agencies. STB compensates the 

Commission for one-half of the cost of this shared position. Careful consideration was given to 

ensure that the FMC’s limited resources are used efficiently while maintaining solid support of 

our EEO principles to ensure that the FMC meets its responsibilities in affirmative employment 

and the appropriate handling of EEO complaints.

The Commission currently uses the following shared service providers:

• National Finance Center 

The National Finance Center (NFC) currently provides the Commission with several human 

resources services, including payroll and time and attendance (T&A) transaction processing, 

managing employee debt, and employee separation payments. In FY 2017, the FMC 

transitioned from a paper-based time and attendance system to the automated PayCheck8 

system. PayCheck8 is a web-based T&A system allowing users the flexibility to enter their time 

and attendance from anywhere that they have internet connection. The T&A reports created in 

PayCheck8 are sent directly to the NFC for payroll processing.

• Office of Personnel Management

The Commission maintains a Memorandum of Understanding (MOU) with the Office of 

Personnel Management (OPM) for hiring functions. The Commission’s Office of Human 

Resources currently provides the agency with full service hiring functions, including the 

recruitment, assessment, referral, and onboarding of candidates. However, in cases where 

demand may exceed internal staffing capabilities, the Commission is ready to leverage OPM to 

assist with necessary services.

• Bureau of Fiscal Services (BFS)

The FMC carefully manages its costs. Due to its size, it is cost prohibitive for the FMC to 

purchase and maintain an integrated federal financial reporting system. In order to meet its 

federal financial reporting requirements, the Commission contracts with the Bureau of Fiscal 

Services (formerly the Bureau of Public Debt) for several of its administrative service needs. 
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To operate under a fully integrated federal financial reporting system, the FMC utilizes the 

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

business model, 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, payroll accounting services, accounts payable and accounts receivable 

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, Travel Payments, and Relocation Services. The Financial Reporting 

services provided by ARC were expanded in 2017 to include required Digital Accountability and 

Transparency Act of 2014 (DATA Act) reporting services.
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FY 2017 Accomplishments

Strategic Goal 1:

Maintain a competitive international ocean transportation supply system 

Objective: Enhance efficiency in the trades through the use of asset sharing authority 

under the Shipping Act of 19841

• Competition and Foreign Practices

The Commission evaluates the competitive impacts of carrier and marine terminal agreements 

and ensures that filed agreements comply with U.S. shipping statutes and regulations. To do 

so, the Commission reviews agreement activities, prepares economic analyses, and researches 

and produces studies and profiles on agreements, carrier organizations and market conditions 

in a variety of U.S. liner trades. The FMC also identifies and researches issues of an economic or 

commercial nature that may affect or distort competition in U.S. liner markets, and reviews 

developments in international trade and the global economy. 

As the basis for its analytic work, the Commission receives and reviews minutes of agreement 

meetings and regular 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/or the rationalization of vessel capacity. The shipping industry continued 

 

1 The Commission’s FY 2018-2022 Strategic Plan updates the language of Strategic Goal 1 and its accompanying 

objective and measures to reflect the Commission’s emphasis on preventing actions taken through filed 

agreements that would result in unreasonable increases in transportation costs and/or unreasonable decreases in 

transportation services. Throughout previous Strategic Plans, the work of the Commission has long focused on 

ensuring filed agreements take actions that enhance efficiency without improperly impeding or restricting trade.
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to witness major restructurings and consolidations in FY 2017, which the Commission 

monitored for potentially significant competition concerns. 

The FMC’s Supply Chain Innovation Initiative continued to make progress developing 

commercial solutions to supply chain challenges and related port congestion concerns. Led by 

Commissioner Rebecca F. Dye to bring together industry leaders from across the international 

ocean transportation supply chain to discuss challenges, the Supply Chain Innovation Teams

collaborate on solutions to help reduce port congestion and remove related obstacles to 

efficient U.S. supply chain operations. On December 6, 2016, the Commission published an 

executive summary of its interim status report, reporting on the first phase, focusing on the 

import supply chain. On July 11, 2017, the FMC launched the second phase focusing on the 

export supply chain. In December 2017, the second phase concluded with the publication of 

the findings and recommendations of the Supply Chain Innovation Teams. The teams looked 

beyond the dock and the terminal gate to identify solutions to supply chain challenges.

In FY 2017, the FMC continued to monitor potentially restrictive foreign practices, including 

reviewing new legislation and new interpretations of existing legislation. The FMC also 

participates, 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.

• Trade Oversight and Industry Research 

The Commission administered its oversight responsibilities during FY 2017, conducting research 

and analysis into a number of filed agreements and industry issues. Activities included: 

• participating in the facilitation of the Supply Chain Innovation Teams Initiative,

attending meetings under the leadership of Commissioner Dye, drafting meeting 

minutes and providing an extensive annotated bibliography of over 150 documents; 

• conducting a review and economic analysis of the competitive impact of the revised and

re-filed Port of New York/New Jersey Equipment Optimization Discussion Agreement, 

FMC No. 012445; 

• continuing work associated with the comprehensive review of 46 CFR Part 535 (Ocean 

Common Carrier and Marine Terminal Agreements) and related regulations in 46 CFR 

§ 501.27 in FMC Docket No. 16-04, Ocean Common Carrier and Marine Terminal 

Operator Agreements Subject to the Shipping Act of 1984, including reviewing public 

comments submitted in response to the Notice of Proposed Rulemaking (NPRM) and 

analyzing the rule’s regulatory burden; preparing a summary of recommended changes 

and comments to the NPRM; and drafting a corresponding memorandum to the 

Commission for consideration; 
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• completing an analysis of the likely competitive effects of the authorities proposed 

under the Miami Terminal Conference Agreement, FMC No. 012442, allowing two 

marine terminal companies located at the port of Miami to cooperate on business and 

operational matters; 

• conducting a competitive impact analysis of the OCEAN Alliance Agreement, FMC No. 

012426, under the section 6(g) standard of the Shipping Act, incorporating extensive 

information received in response to the Commission’s Request for Additional 

Information to clarify the Agreement’s authority and gather the data necessary to 

complete the analysis, and drafting a recommendation memorandum to the 

Commission; 

• developing a detailed set of questions for parties to THE Alliance Agreement, FMC No.

012439, the responses to which contributed substantially to the analysis of the expected 

competitive impact of the Agreement; 

• conducting semi-annual meetings with representatives of the Transpacific Stabilization 

Agreement, FMC No. 011223, to review major activities of the Agreement and discuss 

significant developments in the trade between the U.S. and Asia; 

• updating the Commission on the activities of the West Coast Marine Terminal Operators 

Agreement (WCMTOA) and the PierPass program; reviewing the KPMG report on 

PierPass’s cost methodology; meeting with representatives of WCMTOA; and issuing an 

extensive set of revised reporting requirements for WCMTOA;

• preparing the competition analysis for the Maersk/MSC/HMM Strategic Cooperation 

Agreement, FMC No. 012463, an agreement reflecting Hyundai Merchant Marine’s 

cooperation with the 2M Alliance, which finalized the new alliance structure that took 

effect in April 2017;

• preparing a competition analysis for the East Coast Gateway Terminal Agreement, FMC 

No. 012469, a discussion agreement between the Virginia Port Authority and the 

Georgia Ports Authority; 

• conducting a competitive analysis for an amendment to the WWL/EUKOR/ARC/GLOVIS 

Cooperative Working Agreement, FMC No. 012309, that sought joint purchasing 

authority to solicit bids for the provision of tug services at ports that the parties serve;

and

• conducting an economic analysis of the potential competitive impact of the Tripartite 

Agreement, FMC No. 012475, a joint venture to combine the containership operations 

of the three Japanese carriers (NYK, K Line, and Mitsui OSK Lines); meeting with 

representatives of the individual carriers; and drafting a memo including 

recommendations for Commission consideration.
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• Service Contracts and Tariffs

During FY 2017, VOCCs filed thousands of service contracts and contract amendments into the 

SERVCON system (see Appendix F for these and other workload statistics). The FMC processed 

both original NSAs and amendments filed by NVOCCs. The Commission received, processed, 

and reviewed Form FMC-1 filings, which provides the location of carrier rate tariffs to the public

through the website.

In FY 2017, the Commission revised its service contract and NVOCC service arrangement rules. 

The Commission, in an effort to relieve regulatory burden, now allows amendments to service 

contracts and NVOCC service arrangements to go into effect before being filed with the 

Commission.

The FMC conducted service contract and tariff research in support of the Commission’s 

agreement monitoring program and ad hoc research to meet the agency’s review of industry 

trends and practices. Additionally, the Commission conducted research on various surcharges, 

such as congestion surcharges, low sulfur fuel surcharges, as well as general rate increases 

published by the ocean carriers. 

In FY 2017, the FMC continued a comprehensive review of the status of MTOs and removed 

from the Commission’s website those that are no longer active in providing MTO services. In 

addition, for those MTOs that elected to make their MTO schedules publicly available, the 

Commission verified the internet location where those schedules are published, and updated its

website accordingly to provide more accurate information to the public. 

The FMC continues to reach out to various service contract filers to encourage the use of web 

services when filing service contracts to increase efficiency, reduce costs, and eliminate 

frequent filing errors.

The FMC anticipates that filings through 2018 and 2019 will remain steady, although a decrease 

in the filing of amendments to service contracts and NSAs is anticipated as a result of the final 

rule which allows ocean carriers to file service contract and NSA amendments up to 30 days 

after they become effective. The continual entry and exit of various OTIs to and from the 

market requires ongoing follow-up on the part of Commission staff to ensure that an accurate 

listing of tariff publication locations on the Commission’s website is maintained and to ensure 

that published tariffs meet the Commission’s tariff publication requirements. Additionally, the 

Commission has substantial responsibilities associated with monitoring VOCC tariffs for 

compliance and verifying that VOCCs continue to operate as common carriers in the U.S. 

waterborne foreign commerce.
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Strategic Goal 2: 

Protect the public from unlawful, unfair, and deceptive practices

In FY 2017, the Commission focused on the integrity and security of international supply chains 

and protecting the shipping public from financial harm. 

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

Several major investigations undertaken or completed during FY 2017 addressed the ongoing 

practices of unlicensed and unbonded operators, of certain OTIs operating in the China-U.S. 

inbound trades, and VOCCs seeking to operate pursuant to agreements that were not filed with 

the Commission. 

Under the Commission’s expedited hearing procedures governing revocation of OTI licenses, in 

a decision served November 21, 2016, in OTI Hearing Docket No. 16-01, the hearing officer 

found that the OTI license of Login Logistics USA, Corp. should be revoked. This conclusion was 

based on findings that respondent was no longer qualified to provide OTI services, failed to 

report and replace its Qualifying Individual who had been removed, and willfully failed to 

respond to and comply with the Commission’s inquiries and order over an extended period of 

time. The hearing officer’s decision became the order of the Commission. This ensured that an 

unqualified OTI was no longer able to provide services to the public.

During FY 2017, the Bureau of Enforcement completed notable compromise agreements with 

several major NVOCCs serving the inbound Far East-U.S. trades, addressing a variety of service 

contracting malpractices. The Commission also continued investigations relating to unfiled 

carrier agreements in the U.S.-foreign trades, both inbound and outbound. The Commission 

collected nearly $1.9 million in penalties against a number of regulated parties during FY 2017.

The Commission’s 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 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. During the year, 157 audits 

were commenced, and 143 audits were completed (including audits carried over from the prior 

fiscal year).

At the beginning of FY 2017, 17 enforcement actions were pending final resolution by the BOE, 

and the BOE was party to 2 formal proceedings. During the fiscal year, 19 investigative matters 

were referred for enforcement action or informal compromise; 16 were compromised and 

settled, administratively closed, or referred for formal proceedings; and 20 enforcement cases 
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were pending resolution at fiscal year’s end. Also, 1 formal proceeding was completed and 1 

was pending at the end of the fiscal year. There were 12 matters pending which the BOE was 

monitoring or for which it was providing legal advice.

• International Affairs and Foreign Shipping Restrictions

The FMC continued its international outreach efforts by attending and coordinating discussions

with foreign embassies and counterparts. In FY 2017, the Commission, in conjunction with 

other federal agencies, participated in bilateral and multilateral international negotiations and 

discussions on shipping matters. In April 2017, the FMC participated in the 3rd Global Maritime 

Regulatory Summit in Beijing, People’s Republic of China. This trilateral discussion included the 

United States with participation by the FMC, the European Union with participation by the 

European Commission, and the People’s Republic of China with participation by the Ministry of 

Transport. 

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 FMC addresses 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 U.S.

During the fiscal year, 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 U.S. In addition, the FMC tracked 

consumer inquiries regarding possible foreign restrictive shipping practices.

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 
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certain requirements under the Shipping Act, and their rates are subject to Commission review. 

The Commission monitored the activities of controlled carriers in FY 2017.

Objective 2: Prevent public harm through licensing and financial responsibility 

requirements

During FY 2017, the Commission received and processed hundreds of OTI license applications 

(new and amended, issuing licenses for applicants that demonstrate appropriate qualifications 

and standards). Currently, 930 ocean freight forwarders (OFFs), 1,734 U.S. NVOCCs, 2,075 joint 

NVOCC/OFFs, and 84 foreign NVOCCs hold active OTI licenses. In addition, there are 1,495 

registered foreign-based NVOCCs who must meet the Commission’s bonding requirements. At

the end of FY 2017, 51 special bond riders were received, providing optional proof of financial 

responsibility for NVOCCs serving the U.S.-China trade, and 36 riders were terminated. The 

licensing process for OTIs continues to be streamlined, and the time needed to process 

applications and reach a licensing decision was reduced with the goal of completing 75 percent

of all OTI license applications within 60 days. During FY 2017, that goal was exceeded – and 

over 90 percent of all OTI license applications were completed within 60 days.

The Commission monitored vessels and 47 passenger vessel operators in its passenger vessel 

program, with a total of $594 million for non-performance financial responsibility and $705 

million for casualty financial responsibility. During FY 2017, the Commission received 12 

Passenger Vessel Applications (Performance) and completed the processing of 8 applications. 

An additional 12 new Passenger Vessel Applications (Casualty) were received, and 14 processed 

during the fiscal year, including some from the previous fiscal year. 

OTI license and registration updates commenced during FYs 2016 and 2017, with the launch of 

new online systems that enable OTIs to confirm or update their company’s information on file 

with the Commission within minutes. Industry feedback has been very positive about this 

automated process.

Objective 3: Enhance public awareness of agency resources, remedies, and regulatory 

requirements through education and outreach

The Commission continued its efforts to educate both stakeholders and the public regarding 

FMC programs and the use of ADR to resolve disputes. The Commission’s website has several 

on-line brochures, covering such topics as the FMC’s functions and regulatory oversight 

responsibilities, a description of FMC-provided dispute resolution services, a consumer’s guide 

for a successful overseas move, and a passenger’s guide for planning for a cruise vacation. 

Throughout the fiscal year, the Commission conducted presentations, meetings, and 

educational sessions with various shipper and industry trade associations as well as academic 
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institutions 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 Commission also published articles in trade association journals regarding licensing matters 

and the use of ADR to resolve disputes.

In FY 2017, the Commission continued to improve its online presence, and has made the 

agency’s public meetings under the Sunshine Act available in live, captioned webcasts through

the FMC’s website. The Commission continues to monitor public usage trends and leverage 

user feedback to implement ongoing improvements to www.fmc.gov. Additional enhancements

for FY 2017 included improved visibility of important information as well as archiving and 

streamlining content to improve delivery and accuracy of information.

Objective 4: Impartially resolve international shipping disputes through alternative 

dispute resolution and adjudication

The FMC’s CADRS staff concluded 411 ombuds matters during FY 2017. Of those, 137 involved 

commercial cargo-related disputes, 138 involved household goods shipment disputes, and 136 

involved cruise line concerns. Nine mediation matters were initiated during the fiscal year, and 

the Commission responded to Congressional requests for assistance on behalf of constituents 

requesting assistance with difficulties encountered involving cruises and non-delivery of goods

(see Appendix F for these and other workload statistics). 

The FMC continued to collaborate with the Federal Motor Carrier Safety Administration 

(FMCSA) in FY 2017 under the auspices of the FMC – FMCSA MOU through participation in 

quarterly working group meetings and Moving Fraud task force meetings. In addition to its 

efforts with the FMCSA, the Commission continued to collaborate with other federal agencies 

that provide ADR services, participating in a study performed by the Administrative Conference 

of the U.S. on the use of ombuds in federal agencies. 

The Commission assisted consumers in disputes with transportation companies relating to 

household goods. In one representative matter, a consumer had paid an NVOCC over $32,000 

to ship her personal belongings from Brazil to the U.S. The NVOCC was unresponsive to the 

consumer, and in the interim, its FMC license was revoked. The Commission was able to

persuade the NVOCC to provide the location of the cargo so that delivery could finally be 

arranged. 

• Representative Adjudications and Litigation 

In FY 2017, the Commission resolved international shipping disputes filed by complainants and 

enforced the Shipping Act and its regulations through adjudication before the Commission. The 
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Commission, including its ALJs and legal staff, issued numerous legal opinions, recommenddations, case summaries, decisions, and final orders. 

Commission Decisions 

The following are representative of cases heard before the Commission:

• Maher Terminals, LLC v. Port Authority of New York & New Jersey [Docket 12-02]

Maher filed a complaint against the Port Authority of New York and New Jersey alleging 15

Shipping Act violations regarding the Port’s marine terminal leases. The ALJ granted the Port’s 

motion on January 30, 2015, and dismissed Maher’s claims without leave to amend. On 

December 17, 2015, the Commission affirmed the decision in part and dismissed 11 of Maher’s 

claims without leave to amend. The Commission reversed the decision with respect to 4 claims 

and remanded them to the ALJ for further proceedings. The Commission confirmed that 

motions to dismiss for failure to state a claim are governed by the standard used by the federal 

courts. The parties subsequently settled, and on October 26, 2016, the Commission approved a 

joint motion for approval of a settlement agreement. This case was dismissed with prejudice 

effective November 16, 2016. 

• Baltic Auto Shipping, Inc. v. Michael Hitrinov et al. [Docket No. 14-16] 

On November 28, 2014, Baltic filed a complaint alleging that on several thousand shipments 

between November 2007 and January 2012, Empire United Lines, an NVOCC, violated several 

sections of the Shipping Act, 46 U.S.C. §§ 41102, 41104, 40501, and 46 C.F.R. Part 515, by 

charging rates not set forth in a tariff, charging Baltic rates greater than rates charged other 

shippers, and by failing to provide Baltic with shipping documents. Baltic sought a reparation 

award. Respondents moved for a summary decision dismissing the claim for a reparation 

award, arguing that the claim was barred by the statute of limitations. On September 15, 2015, 

the ALJ denied Baltic’s claims and dismissed them with prejudice.

After filing exceptions to the ALJ’s decision with the Commission, Baltic filed motion to dismiss 

the proceeding, which Respondents opposed in part. On April 21, 2017, the Commission 

granted Baltic’s motion in part and dismissed the proceeding.

Litigation before Courts

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

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

Maher filed a complaint with the Commission alleging, among other things, that the Port 

Authority of New York and New Jersey violated 46 U.S.C. § 41106(2) by granting another 

terminal operator, APM Terminals North America, Inc., unduly and unreasonably more 

favorable lease terms than it provided Maher. The ALJ denied Maher’s claims and dismissed 
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them with prejudice on April 25, 2014. On December 17, 2014, the Commission affirmed the 

ALJ’s decision, and Maher subsequently petitioned the D.C. Circuit for review. On March 22, 

2016, the court issued an opinion granting Maher’s petition and remanding the case to the 

Commission for additional explanation of its decision, although it did not vacate the 

Commission’s order or reverse its decision. On October 26, 2016, the Commission approved a 

joint motion for approval of a settlement agreement. This case was dismissed with prejudice 

effective November 16, 2016.

• Santa Fe Discount Cruise Parking v. The Board of Trustees of the Galveston Wharves 

and the Galveston Port Facilities Corporation [FMC Docket No. 14-06; D.C. Cir. Case 

No. 17-1089]

Complainants are businesses that operate parking lots for cruise passengers departing from the 

Port of Galveston. Complainants filed a complaint with the Commission alleging, among other 

things, that Respondents violated 46 U.S.C. § 41106(2) by unreasonably subjecting cruise 

passenger parking lot operators to a less favorable regime for charging port access fees to pick 

up and drop off cruise passengers, than the fee regime for other businesses (e.g., hotels). The 

ALJ denied Complainants’ claims and dismissed them with prejudice on December 4, 2015. On 

April 4, 2017, the Commission affirmed the ALJ’s decision, and two of the Complainants 

subsequently petitioned the D.C. Circuit for review. The case is currently pending before the 

court.

• In re Vehicle Carrier Services Antitrust Litigation [3d Cir. Case Nos. 15-3353, 15-3354, 

15-3355]

In this multidistrict litigation, purchasers of vehicle carrier services alleged a conspiracy among 

ocean shipping companies to fix prices, allocate customers and routes, and restrict capacity. 

These purchasers filed several consolidated class actions in federal court alleging violations of 

federal and state antitrust laws. The district court dismissed the cases, finding that operating 

under an anti-competitive agreement not filed with the Commission constituted a violation of 

the Shipping Act, and, thus, the federal antitrust claims could not proceed. The court also 

determined that the state antitrust law claims were preempted by the Shipping Act. The 

purchasers appealed, and on September 27, 2016, the Third Circuit invited the Commission to 

file an amicus curiae brief. The Commission, joined by the United States, filed an amicus brief 

on November 30, 2016. On January 18, 2017, the Third Circuit affirmed the district court’s 

decision.
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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 Submission

Appendix H: OIG Certification
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Appendix A: Resource Allocation by Program

Strategic Goal # 1 Strategic Goal # 2

Maintain a 

competitive and 

reliable 

international 

ocean 

transportation 

supply system

Protect the public 

from unlawful, 

unfair, and 

deceptive 

practices

Formal Proceedings

 Office of the Chairman $1,203,486.91 $1,198,627.22 $239,805.31 $959,221.26 $1,199,026.57 $399.35

 Office of the Commissioners $1,468,340.25 $1,781,481.58 $371,477.88 $1,485,911.54 $1,857,389.42 $75,907.84

 Office of the Secretary $1,246,555.69 $1,237,742.37 $262,162.43 $1,003,449.28 $1,265,611.71 $27,869.34

 Library $98,499.24 $61,756.08 $48,325.77 $48,325.77 $96,651.54 $34,895.46

 Office of Consumer Affairs and Dispute Resolution 

Services $1,305,822.32 $1,387,248.71 $0.00 $1,402,348.96 $1,402,348.96 $15,100.25

 Office of the General Counsel $2,063,785.88 $2,002,364.39 $996,783.58 $996,783.58 $1,993,567.15 ($8,797.24)

 Ethics $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

 Office of Administrative Law Judges $887,481.66 $930,930.02 $464,722.09 $464,722.09 $929,444.17 ($1,485.85)

Formal Proceedings Total $8,273,971.95 $8,600,150.37 $2,383,277.05 $6,360,762.47 $8,744,039.52 $143,889.15

Office of Equal Employment Opportunity $146,543.58 $72,463.21 $47,254.04 $47,254.04 $94,508.07 $22,044.86

Office of the Inspector General $367,331.48 $437,576.90 $43,781.73 $394,035.53 $437,817.26 $240.36

Operational and Administrative

 Office of the Managing Director $2,245,798.13 $1,924,592.67 $442,681.39 $1,770,725.56 $2,213,406.95 $288,814.28

 Bureau of Trade Analysis $3,631,570.80 $3,846,893.98 $2,319,901.33 $1,536,546.24 $3,856,447.57 $9,553.59

 Bureau of Certification and Licensing $2,469,670.12 $2,634,435.37 $0.00 $2,682,572.08 $2,682,572.08 $48,136.71

 Bureau of Enforcement $1,789,636.67 $1,785,808.63 $0.00 $1,790,400.61 $1,790,400.61 $4,591.98

 Area Representatives $1,723,905.16 $1,829,589.51 $367,615.39 $1,470,461.57 $1,838,076.96 $8,487.45

 Office of Information Technology $4,272,894.14 $2,466,253.68 $644,451.84 $2,577,807.35 $3,222,259.19 $756,005.51

 Office of Human Resources $915,874.43 $956,360.21 $180,661.79 $722,647.16 $903,308.95 ($53,051.26)

 Office of Budget and Finance $791,493.21 $868,252.14 $177,737.28 $710,949.15 $888,686.43 $20,434.29

 Office of Management Services $596,963.76 $726,623.33 $163,695.28 $654,781.13 $818,476.42 $91,853.09

Operational and Administrative Total $18,437,806.42 $17,038,809.52 $4,296,744.31 $13,916,890.85 $18,213,635.16 $1,174,825.64

Totals $27,225,653.43 $26,149,000.00 $6,771,057.12 $20,718,942.88 $27,490,000.00 $1,341,000.00

The Request by Strategic Goal and Program chart identifies the funding level requested for FY 2019 broken out by program office and strategic 

goal. The chart identifies FY 2019 changes from the FY 2018 estimated funding requirements.

Resource Allocation by Program

FY 2019

Program/Office

FY 2017 

Actual

FY 2018 

Estimate

FY 2019 Request

FY 2019 

Request

Difference From 

FY 2018 

Estimate 
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Appendix B: FTEs and Positions Allocation by Program

Program/Office FTEs Positions* FTEs Positions FTEs Positions FTEs Positions

Headquarters 116.55 120.00 117.63 120.00 120.00 120.00 2.37 0.00

Area Representatives 8.50 9.00 9.00 9.00 9.00 9.00 0.00 0.00

Agency Total 125.05 129.00 126.63 129.00 129.00 129.00 2.37 0.00

Formal Proceedings

 Office of the Chairman 5.00 5.00 5.00 5.00 5.00 5.00 0.00 0.00

 Office of the Commissioners 6.17 8.00 7.38 8.00 8.00 8.00 0.62 0.00

 Office of the Secretary 7.15 8.00 7.00 7.00 7.00 7.00 0.00 0.00

 Office of Consumer Affairs and Dispute Resolution Services 7.00 7.00 7.00 7.00 7.00 7.00 0.00 0.00

 Office of the General Counsel 9.53 10.00 9.08 10.00 9.00 9.00 (0.08) (1.00)

 Office of Administrative Law Judges 4.00 4.00 4.00 4.00 4.00 4.00 0.00 0.00

Formal Proceedings Total 38.85 42.00 39.46 41.00 40.00 40.00 0.54 (1.00)

Office of Equal Employment Opportunity 0.77 1.00 0.73 1.00 1.00 1.00 0.27 0.00

Office of the Inspector General 1.00 1.00 1.50 2.00 2.00 2.00 0.50 0.00

Operational and Administrative

 Office of the Managing Director 9.37 10.00 9.23 9.00 9.00 9.00 (0.23) 0.00

 Bureau of Trade Analysis

 Office of the Director 2.75 2.00 2.00 2.00 2.00 2.00 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 9.46 10.00 10.08 10.00 11.00 11.00 0.92 1.00

 Office of Agreements 3.00 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Bureau of Certification and Licensing

 Office of the Director 3.00 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Office of Passenger Vessels and Information Processing 5.61 5.00 7.00 7.00 7.00 7.00 0.00 0.00

 Office of Transportation Intermediaries 7.84 9.00 7.00 7.00 7.00 7.00 0.00 0.00

 Bureau of Enforcement 10.65 9.00 9.00 9.00 9.00 9.00 0.00 0.00

 Area Representatives 8.50 9.00 9.00 9.00 9.00 9.00 0.00 0.00

 Office of Information Technology 6.58 7.00 7.00 7.00 7.00 7.00 0.00 0.00

 Office of Human Resources 5.04 5.00 5.13 5.00 5.00 5.00 (0.13) 0.00

 Office of Budget and Finance 4.73 5.00 5.00 5.00 5.00 5.00 0.00 0.00

 Office of Management Services 3.91 4.00 4.50 5.00 5.00 5.00 0.50 0.00

Operational and Administrative Total 84.44 85.00 84.94 85.00 86.00 86.00 1.06 1.00

Total FTEs and Positions 125.05 129.00 126.63 129.00 129.00 129.00 2.37 0.00

* Denotes estimated positions on September 30, 2017.

Actual Estimate Request From FY 2018

FTEs and Positions by Program

FY 2017 - FY 2019

FY 2017 FY 2018 FY 2019 Difference
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Appendix C: Obligations by Object Class

FY 2017 FY 2018 FY 2019

Category Actual Estimate Request

 (11.1) Full-time Permanent Employees $ 14,526,958.89 $ 14,935,200.00 $ 15,369,000.00 $433,800.00

 (11.3) Part-time and Temporary Employees $ - $ 23,800.00 $ - ($23,800.00)

 (11.7) Performance Awards $ - $ - $ - $0.00

 (12.1) Personnel Benefits $ 4,307,423.83 $ 4,604,000.00 $ 4,713,000.00 $109,000.00

Total Personnel Compensation & Benefits $ 18,834,382.72 $ 19,563,000.00 $ 20,082,000.00 $519,000.00

 (21.0) Travel and Transportation of Personnel $ 189,926.70 $ 180,000.00 $ 250,000.00 $70,000.00

 (22.0) Transportation of Things (Express Mail) $ 24,000.00 $ 10,000.00 $ 17,000.00 $7,000.00

 (23.1) Rental Payments to GSA $ 3,281,545.90 $ 3,430,200.00 $ 3,367,000.00 ($63,200.00)

 (23.5) Telephones (Local, Long Distance and Cellular) $ 392,392.63 $ 211,000.00 $ 211,000.00 $0.00

 (23.8) Postage $ 1,572.48 $ 2,500.00 $ 5,000.00 $2,500.00

 (24.0) Printing $ 98,065.74 $ 50,000.00 $ 120,000.00 $70,000.00

 (25.1) Consulting $ 1,528,674.00 $ 635,994.00 $ 815,000.00 $179,006.00

 (25.2) Purchase of Goods and Services from Commercial Accounts $ 629,524.52 $ 459,352.00 $ 574,000.00 $114,648.00

 (25.3) Purchase of Goods and Services from Government Accounts $ 1,536,948.61 $ 1,436,954.00 $ 1,331,000.00 ($105,954.00)

 (25.7) Equipment Maintenance $ 24,820.84 $ 20,000.00 $ 201,000.00 $181,000.00

 (26.0) Supplies and Materials $ 165,458.92 $ 50,000.00 $ 155,000.00 $105,000.00

 (31.0) Hardware and Software $ 518,340.37 $ 100,000.00 $ 362,000.00 $262,000.00

Travel and Administrative Expenses $ 8,391,270.71 $ 6,586,000.00 $ 7,408,000.00 $822,000.00

Total Budget Authority $ 27,225,653.43 $ 26,149,000.00 $ 27,490,000.00 $1,341,000.00

The Obligations by Object Class chart identifies the Commission's actual funding expenses of FY 2017 and the estimated funding requirements for 

the FMC to complete its mission in FY 2018 and FY 2019. Costs are reported by object codes.

Travel and Administrative Expenses

Obligations by Object Class

FY 2017 - FY 2019

Rent, Communications and Utilities

Personnel Compensation and Benefits

 Difference 

From FY 2018 
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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 2012 disbursed in fiscal year 2017

Total outlays for fiscal year 2013 disbursed in fiscal year 2017

Total outlays for fiscal year 2014 disbursed in fiscal year 2017

Total outlays for fiscal year 2015 disbursed in fiscal year 2017

Total outlays for fiscal year 2016 disbursed in fiscal year 2017

Total outlays for fiscal year 2017

 Outlays

* Represents Outlays for FY 2017 as of 09/30/17.

** Represents the percentage of FY 2017 obligations that were disbursed during FY 2017.

$18,437,806.43 $17,038,000.00 $18,214,000.00

84.46% 84.46% 84.46%

$264,346.56 $0.00 $0.00

$27,490,000.00 $26,149,000.00 $27,490,000.00

$27,225,653.43

$8,273,971.95 $8,600,000.00 $8,744,000.00

Relationship of Obligations to Outlays

FY 2017 - FY 2019

FY 2017 

Actual

FY 2018 

Estimate

FY 2019 

Request

$146,543.58 $73,000.00 $94,000.00

$367,331.48 $438,000.00 $438,000.00

99.04% 100.00% 100.00%

$26,149,000.00 $27,490,000.00

The Relationship of Obligations to Outlays identifies the actual outlay percentage for FY 2017. The chart also depicts the 

estimated outlay expenses for FY 2018 and FY 2019.

($4,790.00)

$2,709.37

$159,198.68

$25,330,411.85

$238,380.94

$1,938,825.57

$22,996,087.29

Gross Outlays for FY 2017

$22,996,087.29 $22,086,694.38 $23,219,367.03
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Appendix E: Performance Measures by Strategic Goals

Summary of Strategic Goals, Objectives, and Performance Measures

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

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

costs and/or unreasonable decreases in transportation services.1

Performance Measure: Percentage of FMC-filed agreements 

reviewed at Commission level which are modified through 

negotiation to mitigate anti-competitive effects.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

Performance Measure: Percentage of agreement monitoring 

reports reviewed within 30 days of receipt to detect actionable 

information including market-distorting behavior.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

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

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

Performance Measure: Percentage of enforcement actions taken 

under the Shipping Act successfully resolved through favorable 

judgment, settlement, issuance of default judgment, or compliance 

letter or notice.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

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

Performance Measure: Percentage of decisions on completed OTI 

license applications rendered within 60 calendar days of receipt, 

facilitating lawful operation of OTIs with appropriate character and 

experience requirements.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

Performance Measure: Percentage of PVOs examined during the 

year that have the full financial coverage required by regulation to 

protect against loss from non-performance or casualty.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

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

education and outreach.

Performance Measure: Percentage of Commission issuances, 

orders and reports available through the Commission’s website 

within 5 working days of receipt.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

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

and adjudication.

Performance Measure: Percentage of ombuds and ADR matters 

closed within 6 months of request for assistance.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

Performance Measure: Percentage of formal complaints or 

Commission-initiated orders of investigation completed within 2 

years of filing or Commission initiation.

2017 

Target

2018 

Target

2019 

Target

2020 

Target

2021 

Target

2022 

Target

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

 

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

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

Measure information can be found in the Commission’s Performance and Accountability Reports. 
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Appendix F: Workload Summary 

Workload Summary

Workload Category

On Hand 

9/30/2016

FY 2017 Actual FY 2018 Estimate FY 2019 Estimate

Received Output Received Output Received Output

Formal Proceedings (OALJ) 13 6 10* 10 10 10 10

Informal Proceedings (OALJ) 2 6** 4*** 3 3 3 3

Decisions, Reports, in Docketed 

Proceedings before the Commission 13 11 33 25 25 25 25

Federal Register Notices 0 80 80 100 100 100 100

FOIA Requests 3 35 33 30 30 28 28

Ombuds 36 459 411 600 600 600 600

ADR Matters 12 5 9 15 13 15 15

Legislation 0 60 60 65 65 65 65

Legal Opinions, Recommendations, Case 

Summaries, Decisions, and Final Orders 5 190 190 195 195 195 195

Audits and Monitoring Activities (BOE) 15 223 143 225 225 230 230

OTI Applicant and License Checks (BOE) 0 645 645 655 655 655 655

Formal Proceedings (BOE) 2 2 1 2 2 3 3

Civil Penalty Cases 12 22 24 24 22 25 25

Agreements Filed 12 144 151 260 260 255 255

Agreement Reports 62 1,480 1,479 1,510 1,530 1,510 1,523

Service Contracts 0 49,790 47,110 45,500 45,000 46,000 46,000

Service Contract Amendments 0 666,400 766,329 450,000 450,000 460,000 460,000

NVOCC Service Arrangements (NSA) 0 1,000 969 1,025 1,025 1,050 1,050

NSA Amendments 0 1,800 1,242 1,825 1,825 1,850 1,850

FMC-1 Form 0 1,450 1,450 1,475 1,475 1,500 1,500

OTI Applications – NEW 38 346 316 346 346 346 346

OTI Business Change Applications 24 326 268 476 476 476 476

OTI License Renewals 0 900 804 1,500 1,500 1,500 1,500

OTI License Terminations 0 392 392 300 300 300 300

OTI Bond Transactions**** 0 5619 5619 5619 5619 5619 5619

Passenger Vessel Applications 

(Performance) 3 12 8 17 17 18 18

Passenger Vessel Applications (Casualty) 7 12 14 17 17 18 18

*OALJ issued eight initial decisions or orders subject to review by the Commission. One motion to approve settlement was referred 

to the Commission. Complainant dismissed one proceeding voluntarily.

**Includes one informal proceeding remanded by the Commission.

***Includes one informal proceeding consolidated and decided with a formal proceeding.

 Includes OTI bond terminations, bond riders, and new or replacement bonds. 
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Appendix G: Evidence Submission

Section 1. Agency Strategy to Advance the Use of Evidence in Decision Making

Current Efforts and Future Plans 

Data drives decision-making at the FMC. To accomplish its mission to support the U.S. economy 

by ensuring a competitive and reliable international ocean transportation system and 

protecting the public from unfair and deceptive practices, the FMC relies on data it collects 

from stakeholders and expertly analyzes for trends, practices, and regulatory compliance. The 

Commission continues to make progress in implementing its evidence-based decision-making

efforts, which are captured in part in the Commission’s FY 2018-2022 Strategic Plan, detailed 

below. The Commission’s efforts span both the program and administrative areas of the 

Commission. 

Strategic Planning

The FMC’s FY 2018-2022 Strategic Plan, transmitted concurrently with this budget submission, 

demonstrates the Commission’s plan of action to support and improve its program 

performance by building a portfolio of evidence on program efficacy. The FY 2018-2022

Strategic Plan has clearly defined goals and objectives with quantifiable performance measures, 

setting goals and detailed objectives for its program areas in each fiscal year. 

The Strategic Plan is a result of the efforts of the Commission’s senior leadership reviewing

current statutory authority, agency practice, and changing industry conditions. Each goal, 

objective and measure was examined with an eye towards ensuring the goals and objectives 

are appropriate and measures are best suited to reflect performance in meeting the objective. 

Enterprise Risk Management

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

appropriate internal controls. In conjunction with the Commission’s strategic planning, the 

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

This process culminated in the creation of a Risk Profile, as required by M-16-17, OMB Circular 

No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. 

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

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

Regulatory Reform and Regulatory Review

The Commission continues to seek ways to make compliance with its statutory and regulatory 

requirements easier and more cost effective for shippers, carriers, and ocean transportation 

intermediaries. The Commission will do this by evaluating evidence collected, both qualitatively 
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and, when applicable, quantitatively, to propose improving its rules to benefit the American 

public. 

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

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

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

Reform Task Force. On May 26, 2017, the Commission issued a Notice of Inquiry for public 

comment, and the task force will work to identify existing FMC regulations that are outdated, 

unnecessary, ineffective, eliminate jobs or inhibit job creation, impose costs that exceed 

benefits, or otherwise interfere with regulatory reform initiatives and policies. Responses will 

be evaluated for evidentiary data and will inform the Commission’s actions. 

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

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

input on its key regulations. In FY 2017, staff recommendations for reforms to the filing and 

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

under consideration. These potential regulatory changes take into consideration industry 

comments received in response to its Notice of Proposed Rulemaking in Docket No. 16-04. It is 

anticipated that the agreements rulemakings initiatives will conclude in FY 2018. 

Recent Major Progress

Complementing the forward-driven strategic planning discussed above, the Commission has 

also looked to current performance measures to improve program success. The Commission 

periodically reviews performance and experience, making adjustments where appropriate to 

better evaluate and improve performance and delivery of services. In FY 2017, the Commission 

overhauled one such measure to more accurately reflect the FMC’s performance assisting the 

public through its ombuds and ADR services. The new measure better captures the actions of 

the agency toward timely achieving its goal of resolving international shipping disputes rather 

than reflecting a program’s workload statistics. 

Looking towards its internal budget metrics, the Commission implemented Federal DATA Act

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

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

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

information will assist the FMC in comparing its spending with other similarly situated agencies 

in order to evaluate potential cost-savings. 
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Current Barriers 

The Commission remains dedicated to meeting the challenges for smart, effective government. 

The Commission relies heavily upon its staff’s knowledge to meet its objectives in an efficient 

manner. Two primary barriers to evidence-based decision making remain a lack of funding and 

a lack of available staff resources to dedicate to evidence collection and analysis at a metalevel. The FMC does not have a separate office or position to lead a high-level coordination of 

evidence-based evaluation at this time. Commission staff work on evidence-based evaluation 

as a collateral duty. 

Development and Use of a Learning Agenda 

The Commission cultivates an environment of continuous learning for its employees. Training is 

offered in both practices and developments in the regulated industry, Commission workflow, 

and administrative areas. The FMC does not currently have a formal “learning agenda.” The 

Commission will continue to evaluate whether, and how, learning agendas can be developed to 

assist its programs in being more effective. 

Section 2. Top-priority requests

The FMC continues to accomplish its mission through existing funding. The Commission 

receives 100% of its funding through discretionary funding that supports all mission-critical 

functions. These proposals are included within existing funding levels and will involve existing 

staff efforts to increase evidence-driven decision-making at the Commission. 

Proposal 1

(a)

BA Summary

Activity FY 2017 Enacted FY 2018 PB FY 2019 Request

Develop data 

surrounding OTI 

surety programs.

This proposal details FMC’s current and 

planned collection and analysis of data 

related to OTI bonding requirements. 

Existing staff will review information 

collected to determine the efficacy of 

Strategic Goal #2.

No change –

efforts of involved 

staff are a 

collateral duty.

No change – efforts of 

involved staff are a 

collateral duty. 

(b) This proposal is evidence-building. 

(c) This proposal is included on page 23 of this submission. 
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(d) Based upon recent changes to the OTI bonding requirements, the Commission is now 

collecting information on the effectiveness of the OTI bonds. The collected information will 

assist the Commission in monitoring how often the bonds are being utilized by capturing the 

number of bonds issued, the number of claims made, and any resulting claim payments. 

Importantly, the bonding information will demonstrate who is making and receiving claims on 

the bond, and whether the bond program adequately protects the public. 

(e) This proposal will not require a statutory change. 

Proposal 2

(a)

BA Summary

Activity FY 2017 Enacted FY 2018 PB FY 2019 Request

Improve the design, 

usability and platform of 

the website docket and 

historical document 

library repository. 

This effort is ongoing and 

results 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.

(b) This proposal is capacity-building. 

(c) This proposal is included on page 24 of this submission. 

(d) The FMC is currently in the process of improving its website. In FY 2017, the FMC continues 

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. Increasing the ease of searching and information to the public will increase the 

public’s ability to participate in important regulatory review proceedings by referencing facts 

and information important to regulated issues. 

(e) This proposal will not require a statutory change. 
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Appendix H: OIG Certification

Office of Inspector General

FEDERAL MARITIME COMMISSION

Washington, DC 20573

January 11, 2018

The Inspector General Reform Act (Pub. L. 110-149) was signed by President George W. Bush on 

October 14, 2008. Section 6(f)(1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was

amended to require certain specifications concerning Office of Inspector General (OIG) budget

submissions each fiscal year (FY).

Each inspector general (IG) is required to transmit a budget request to the head of the establishment 

or designated Federal entity to which the IG reports specifying:

• the aggregate amount of funds requested for the operations of the OIG,

• the portion of this amount requested for OIG training, including a certification from the 

IG that the amount requested satisfies all OIG training requirements for the fiscal year, 

and

• the portion of this amount necessary to support the Council of the Inspectors General on

Integrity and Efficiency (CIGIE).

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include:

• an aggregate request for the OIG,

• the portion of this aggregate request for OIG training,

• the portion of this aggregate request for support of the CIGIE, and

• any comments of the affected IG with respect to the proposal.

The President shall include in each budget of the U.S. Government submitted to Congress:

• a separate statement of the budget estimate submitted by each IG,

• the amount requested by the President for each OIG,

• the amount requested by the President for training of OIGs,

• the amount requested by the President for support of the CIGIE, and

• any comments of the affected IG with respect to the proposal if the IG concludes that the 

budget submitted by the President would substantially inhibit the IG from performing 

duties of the OIG.
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Following the requirements as specified above, the Federal Maritime Commission Inspector

General submits the following information relating to the OIG’s requested budget for FY 2019:

• the aggregate budget request for the operations of the OIG, to include overhead, is 

$437,817,

• the portion of this amount needed for OIG training is $4,500, and

• the portion of this amount needed to support the CIGIE is $1,000.

I certify as the Inspector General of the Federal Maritime Commission that the amount I

have requested for training satisfies all OIG training needs for FY 2019.

Jon Hatfield, Inspector General

Federal Maritime Commission