FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION 0

FEDERAL MARITIME COMMISSION

FY 2024 BUDGET JUSTIFICATION

March 2023
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|1

Table of Contents

Overview.......................................................................................................................................................3

Employee Salary & Benefits...................................................................................................................5

Travel & Training...... .............................................................................................................................5

Rent & Building Security .......................................................................................................................5

Information Technology System Improvements ..................................................................................5

Proposed Appropriation Language: Salaries and Expenses..........................................................................6

Full Time Positions and Equivalents..........................................................................................................6

Fulfilling the Mission: Commission Activities................................................................................................7

FMC Responds to Supply Chain Challenges..............................................................................................7

New Commission Priorities Center on Improved Results.........................................................................7

Implementation of the Ocean Shipping Reform Act of 2022 .......................................................................9

Enforcement, Investigations, and Compliance .......................................................................................11

Legal Proceedings at the FMC.................................................................................................................11

Oversight of Industry Competition .........................................................................................................13

Filed Agreements and FMC Monitoring..............................................................................................13

Ensuring Compliance with Commission Regulations on Service Contracts and Tariffs......................13

Licensing and Financial Responsibility ....................................................................................................15

Passenger Vessel Operators................................................................................................................16

International Affairs................................................................................................................................16

Providing New Regulations.....................................................................................................................17

National Shipper Advisory Committee ...................................................................................................17

Effective Organizational Management .......................................................................................................17

IT Solutions..............................................................................................................................................18

Advancing Equity.....................................................................................................................................19

Equity Action....................................................................................................................................................19

Diversity, Equity, Inclusion, and Accessibility in the FMC Workforce.................................................19

Resources for Equity and DEIA Efforts................................................................................................20

Inspector General Request and Certification..............................................................................................21

Appendix A. FY 2024 Budget Request Table...............................................................................................23

Appendix B. Biennial Report on Unfinished Regulatory Proceedings.........................................................24
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Appendix C. Commission Organizational Chart ..........................................................................................27

Appendix C.1. New BEIC Organizational Structure .....................................................................................28

Appendix D. IT Modernization & Improvements in Digital Services...........................................................29

Appendix E. Cybersecurity Initiatives and Costs.........................................................................................33
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Overview

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

jurisdiction in the U.S. over competition, practices, and service in the ocean shipping industry. Its mission 

is 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.

Increased supply chain challenges and new Commission regulatory responsibilities require additional 

resources to continue effective industry oversight, to provide enhanced enforcement, improved service 

to shippers and consumers, and prompt implementation of the Ocean Shipping Reform Act of 2022 (OSRA 

2022). Public Law 117-146.

To support the Commission’s mission and statutory responsibilities, the FMC total budget request for 

Fiscal Year (FY) 2024 is $43,720,000. Of this amount, $33.4 million is for Salaries and Expenses to support 

180 Full-Time Positions (FTP) and 163 Full Time Equivalents (FTE). In addition, $10.9 million will be 

allocated towards other operating expenses that include rent and building security, information 

technology (IT), and administrative services.

In support of President Biden’s commitment to technology modernization, this level of funding would 

allow the Commission to prioritize IT modernization and cybersecurity obligations. IT and cybersecurity 

expenses will increase as the FMC continues to evaluate and modernize its IT infrastructure, as well as

support its cybersecurity needs. Modernization will replace outdated IT systems, making significant 

cybersecurity improvements. It will also help build the foundation for an appropriate security framework.

The Commission will invest in leading-edge IT solutions that can be adapted easily and quickly to the FMC’s 

evolving needs.

The Commission’s mission to facilitate commerce and protect U.S. shippers will be critical in upcoming 

years. The FY 2024 Congressional Budget Justification is aligned with the FMC’s Fiscal Years 2022-2026 

Strategic Plan goals and objectives. The 2022-2026 Strategic Plan serves as the blueprint for the 

Commission to address current and anticipated challenges in the ocean transportation industry over the 

next five years. It promotes accountability performance measures to ensure the Commission is meeting 

its statutory mission and the needs of a rapidly changing ocean transportation supply system.
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Summary of Changes Compared to the Enacted FY 2023 Budget

Employee Salary & Benefits + $ 6,158,000

Achieving the Commission’s mission and OSRA priorities requires personnel. The budgets provided in FY 

2022 and FY 2023 resulted in an increase from 149 to 180 full-time positions. In FY 2024, this requires an 

increase of $6,158,000 with a total cost of $33,415,000 for salaries and benefits. The total funding for 

salary and benefits requested in this budget is for 163 full-time equivalent (FTE) resources. This increase 

supports a projected pay raise of 5.29 percent.

Travel & Training + $ 80,000

The Commission relies upon highly skilled professionals. The FMC ensures that the knowledge, skills, and 

abilities of staff are not eroded by deferring investment in staff training. The Commission has instituted 

leadership development programs and manager coaching to invest in staff professional and leadership 

skills growth. These programs provide opportunities for personnel to expand their skills and abilities to 

prepare them for senior management positions. Due to increased enforcement activities, consumer 

assistance, and support for U.S. exporters, travel costsin FY 2024 will increase. These activities, combined 

with additional personnel, result in an FY 2024 budget for travel and training expenses of $445,000

($80,000 above the FY 2023 budget).

Rent & Building Security + $ 1,326,000

The total cost for leasing headquarters office space in FY 2024 will be $2,497,000. In FY 2023, the 

Commission began a new occupancy agreement for its offices in Washington, D.C., which included a rent 

abatement for the first year of the new lease. In FY 2024, the leasing costs will be re-applied to rental 

payments through the U.S. General Services Administration (GSA). The amount for FY 2024 for the 

Washington, D.C. office is $1,558,000, which will escalate to full-year costs of $2,881,000 in FY 2025. In 

response to a reduced need for regional office leases, in 2022, the Commission began shifting personnel 

stationed in other parts of the country. The Commission will continue to evaluate leases in the future and 

use GSA’s new flexible workspace contracting options on occasions when workspace is needed.

Information Technology System Improvements + $ 753,000

During FY 2022 and FY 2023, the Commission assessed the capabilities and requirements of its IT systems

as a basis to formulate the framework for its upcoming IT modernization plan. The plan for replacement 

of operational systems will rely heavily on Commercial-Off-The-Shelf (COTS) Systems, moving away from 

custom development wherever possible. The plan includes initiatives to counter cybersecurity threats and 

achieve the goals of the zero-trust architecture strategy. Beginning in FY 2023, the Commission

significantly increased spending on services from non-federal sources and advisory and assistance services

to support these initiatives.

In FY 2023, the Commission began using contractors for IT management and support. These resources will

provide the Commission with the agility it needs to adapt to changing technology and use a mix of 
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resources to execute projects where the needed skill in one area may equate to less than a full-time 

position.

The Commission’s last technology refresh was conducted over four years ago with a mass replacement of 

workstations and peripheral equipment. The budget request for FY 2024 supports a recurring spending 

line started in FY 2023 for workstations and other peripheral equipment that have reached end-ofservices-life. A recurring expense, budgeted at one-third of the total equipment replacement each year,

will shift the agency from a pattern of occasional and very costly outlays to a more sustainable and 

consistent approach to keep pace with technology updates and to address unexpected breakage.

These changes result in a total budgeted amount of $4,784,000 for system modernization initiatives, 

equipment, software, and services to support IT operations.

Proposed Appropriation Language: Salaries and Expenses

For necessary expenses of the Federal Maritime Commission as authorized by section 46107 of title 46, 

United States Code, including services as authorized by section 3109 of title 5, United States Code; hire of 

passenger motor vehicles as authorized by section 1343(b) of title 31, United States Code; and uniforms 

or allowances therefore, as authorized by sections 5901 and 5902 of title 5, United States Code, 

$38,260,000 [$43,720,000] of which $2,000,000 shall remain available until September 30, 2025: 

Provided, That not to exceed $3,500 shall be for official reception and representation expenses. (Proposed 

text derived from: Transportation, Housing and Urban Development, and Related Agencies Appropriations 

Act, 2023.)

Full Time Positions and Equivalents 

Full Time Positions (FTP): 180

Full Time Equivalents (FTE): 163

The requested funding will enable the Commission to add resources and staffing necessary to focus on 

supply chain issues, and to implement and sustain the requirements of OSRA 2022. The Commission 

requests a portion of the funding for salaries and expenses as multi-year funding because completing 

hiring actions within fiscal year constraints may be challenging as the staff is growing by over 40 percent

since the pre-enactment of OSRA 2022. This approach will provide the Commission with flexibility in the 

sequencing of hiring actions and mitigate risk.

The FMC will continue the hiring efforts it initiated in FY 2022 to reach 180 FTP in FY 2024 and to maintain 

a commensurate FTE level of 163, which is a growth of 31 FTP over the FY 2022 staffing level. The increase 

in FTE costs reflects the hiring actions completed in FY 2022 and FY 2023, which will necessitate full-year 

costs for these positions in FY 2024. The use of the multi-year appropriation provided in the FY 2023 

Appropriations will mitigate the risk to the availability of funding at the beginning of the next fiscal year 

to support hiring actions.

The Commission’s salaries and expenses includes a projected 5.29 percent pay raise and no changes to 

retirement benefit contribution percentages.

The Commission continues to engage in succession management and projecting its future workforce 

needs. These effortsinclude staffing to align with agency mission and training to support the Commission’s

priorities of increased enforcement, providing public assistance, and helping U.S. importers and exporters. 
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Continuous staff development will prepare the next generation of leaders at the Commission and address 

skills gaps. The FY 2024 budget request provides for continuation of these training and development 

opportunities.

Fulfilling the Mission: Commission Activities

FMC Responds to Supply Chain Challenges

Unprecedented shocks to the supply chain during the pandemic challenged the ocean transportation 

industry as the Commission operated to the maximum of its capabilities. Historically high shipping rates

and unpredictable ocean shipping services resulted in high demand for FMC assistance and intervention. 

The FMC introduced initiatives to meet the needs of the shipping public.

The Commission promptly launched two fact findings at the beginning of the pandemic that resulted in 

new regulations and improved FMC services to the supply chain. First, led by Commissioner Rebecca F.

Dye, Fact Finding No. 29 (FF 29), International Ocean Transportation Supply Chain Engagement, aimed to 

identify operational solutions to cargo delivery system challenges related to COVID-19. Based on 

recommendations from this effort, the Commission re-established the FMC’s Rapid Response Team in the 

Office of Consumer Affairs and Dispute Resolution Services (CADRS) to work directly with high-level 

executives at the major ocean carriers to escalate emergency situations for quick commercial dispute 

resolution. CADRS hired an export expert to specifically assist U.S. exporters experiencing obstacles 

working with carriers and other regulated entities. Additionally, the Commission initiated a new maritime 

Supply Chain Program in the Bureau of Trade Analysis, which hired new staff to support the program. The 

Commission issued policy statements on who may file a complaint (Docket No. 21-13), attorney fees 

(Docket No. 21-14), and retaliation (Docket No. 21-15). Additionally, information on the Commission's 

process for complaints was added to the website, including a video explaining the process. As will be 

discussed later, a recommendation from FF 29 that also addresses OSRA 2022 statutory requirements on 

detention and demurrage billing practices are also being addressed in a rulemaking.

The Commission published a new rule in 2020, 46 C.F.R. 545.5 – Unjust and unreasonable practices with 

respect to detention and demurrage – which established the incentive principle by which reasonableness 

in detention and demurrage context would be assessed. The “interpretive rule,” ensures that charges are 

used to incentivize the efficient movement of freight and use of equipment, and not used to accrue 

revenue at the expense of the shipping public. This interpretive rule provided an important foundation

and focus for enforcement actions related to these fees in fiscal years 2021-2023.

Fact Finding 30, COVID-19 Impact on Cruise Industry, led by Commissioner Louis E. Sola, focused on the 

impact of the pandemic on the cruise industry, particularly for struggling small passenger vessel operators

(PVOs) seeking temporary relief from financial regulatory requirements. These efforts also led to the 

Commission establishing a new regulation for refunding cruise passengers for cancelled or delayed 

cruises. In FY 2022, the Commission bolstered its PVO program by adding staff to increase its work to 

protect cruise passengers and ensure accountability in the cruise industry.

New Commission Priorities Center on Improved Results

Since March 2021, Chairman Maffei has identified increased enforcement, consumer assistance, and 

assistance to U.S. exporters as the FMC’s top priorities. Accordingly, more than 100 investigations were 

opened related to unjust and unreasonable practices with respect to demurrage and detention charges,
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as well as unfair or unjust discriminatory methods by common carriers. In addition, new enforcement 

actions and informal compromise negotiations were initiated. The Commission also brought formal 

proceedings against three ocean common carriers related to detention and demurrage, one of which 

settled for a civil penalty of $2 million (the other two are pending). Additionally, the Commission took preenforcement actions against two ocean carriers and two non-vessel-operating common carriers 

(NVOCCs). Finally, the Commission initiated multiple proceedings involving denial and revocation of ocean 

transportation intermediary (OTI) licenses issued by the Bureau of Certification and Licensing.

To enable increased enforcement activities, the Commission restructured its Bureau of Enforcement and 

its Office of Area Representatives into one entity. As presented later in more detail in this budget request, 

the new structure now titled the Bureau of Enforcement, Investigations and Compliance (BEIC), is bringing

a more efficient flow to investigations and formal enforcement actions, and a means to conduct consistent

compliance and consumer protection responsibilities.

In July 2021, Chairman Maffei launched the Vessel-Operating Common Carrier (VOCC) Audit Program. 

This initiative involves the on-going collection of qualitative and quantitative information from the largest 

ocean common carriers, as well as regular meetings with carrier representatives regarding the 

Commission’s key priorities, including detention and demurrage. In FY 2022, the FMC began publishing 

aggregated information on the levels and trends of detention and demurrage fees charged and collected 

by carriers. This information is updated quarterly and published on the Commission’s website. 

In FY 2022, the VOCC Audit Program’s scope expanded to include a focus on exports. The VOCC Audit 

Team met with carriers to discuss trends in the volumes of exports carried, with a particular focus on 

agricultural exports. Both carriers and shippers cited problems with cancelled bookings, particularly for 

exports. In addition, in June 2022, the FMC began collecting information from the carriers on “fall downs,” 

a term referring to the share of confirmed bookings that are cancelled. Data on this metric is collected 

quarterly and will be published on the Commission’s website.

Meetings with ocean carriers have proven to be an effective way to communicate Commission priorities 

and gather their questions. These meetings have been used to identify appropriate points of contact for 

compliance and charge complaints, reinforce Commission policy statements, update carriers on upcoming 

Commission activities, and understand information gaps. Upcoming meetings with the carriers will focus 

on statutory anti-retaliation provisions. Transitioning this important program to permanent status will 

require staffing and support for ongoing information collection.

To increase assistance to the ocean shipping public and U.S. exporters, the Commission bolstered the 

services of CADRS with more resources and staffing. CADRS assists in resolving commercial disputes on an 

informal basis, as well as through formal mediation. Supply chain strains due to the pandemic resulted in 

increased disputes between entities, particularly between carriers and shippers. CADRS has handled on 

average 1,500 inquiries per year since the onset of the pandemic. 

As mentioned earlier, the Commission reintroduced its Rapid Response Team, and CADRS has direct 

contacts with executives at the largest ocean carriers for the quick resolution of emergency matters. 

Staffing increases since FY 2021 have enabled more cases to be resolved quickly. Additionally, CADRS will 

increase outreach to educate the shipping public about the services the Commission provides. The newly 
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hired export advocate has extensive ocean shipping industry experience and will work to assist exporters 

facing challenges.

The Maritime Transportation Data Initiative (MTDI), led by Commissioner Carl Bentzel at the request of 

Chairman Maffei, launched in Fall 2021, focusing on cataloguing the status quo in maritime data elements, 

metrics, transmission, and access; identifying key gaps in data definitions and classification; and 

developing recommendations for common data standards and access policies/protocols. Seventeen 

meetings with industry representatives were held between December 2021 and April 2022. In June 2022, 

the FMC hosted a virtual transportation data summit.

Implementation of the Ocean Shipping Reform Act of 2022

On June 16, 2022, President Biden signed into law the Ocean Shipping Reform Act of 2022. Several 

provisions of OSRA 2022 were effective immediately, requiring both the Commission and regulated 

entities to act quickly to ensure compliance. These self-executing provisions included new requirements 

related to detention and demurrage invoices, as well as prohibitions on issuing invoices or otherwise 

assessing charges that did not meet the new OSRA 2022 requirements.

OSRA 2022 tasked the Commission with engaging on short timelines in new data collections, initiating 

new research regarding chassis pools, and improving its website. Rulemakings are underway in the areas 

of detention and demurrage billing, unreasonable refusal to deal with respect to vessel space 

accommodation, and unfair or unjustly discriminatory methods with respect to cargo. All are intended to

result in considerably more protection for U.S. importers and exporters.

Implementing the requirements of OSRA 2022 involves action by staff across all Commission offices and 

is a top agency priority. In the short-term, two retired senior executive annuitants returned to support 

OSRA 2022 implementation activities and 18 new full-time positions have been added since June 2022 to 

fully execute the requirements.

The Commission communicates its OSRA-related activities to the public via its website, news releases, and 

updates at Commission meetings. The Commission has issued information and multiple industry 

advisories, including the applicability of provisions contained in OSRA 2022, interim procedures for 

submitting charge complaints, and demurrage and detention billing practices.

In addition to these industry advisories, the Commission used the VOCC Audit Program to ensure that the 

largest ocean carriers calling in the United States were aware of their obligations under OSRA 2022. Last 

summer, executives at the largest 25 carriers were sent letters highlighting new requirements established 

by OSRA 2022, emphasizing the Commission’s expectation that carriers move aggressively to come into 

compliance with all self-executing provisions, including detention and demurrage billing. Further, all 

executives were requested to affirm their awareness of the provisions of OSRA 2022 and that they were 

taking steps to comply with all relevant requirements. All 25 carriers acknowledged their obligations.

Before the enactment of OSRA in 2022, the Commission emphasized the seriousness of anti-retaliation 

measures. Section 5 of OSRA 2022 amended 46 U.S.C. § 41102 to expressly delineate actions common 

carriers, marine terminal operators(MTOs), and ocean transportation intermediaries (OTIs) are forbidden 

from taking against shippers, agents of shippers, OTIs, or motor carriers. Letters requesting information 
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about anti-retaliation policies were sent to carrier executives in December 2022; this was a key agenda 

item for the VOCC Audit Team’s January 2023 meeting with the top 11 carriers.

One OSRA 2022 provision that has already resulted in direct benefits to shippers is Section 10, which

provides an additional avenue to submit complaints regarding carrier charges to the Commission. Upon 

the promulgation of OSRA 2022, an FMC task force was quickly assembled to develop a process for 

complaint intake, processing, assessing, investigating, and prosecution. The first Charge Complaint was 

received on July 14, 2022. Between July and the end of December 2022, the FMC received approximately 

200 Charge Complaints. Of those, 69 met the threshold requirements and were assigned for investigation. 

By the end of the calendar year, nearly thirty cases had been quickly resolved through refunds issued by 

carriers totaling approximately $700,000. In fourteen of the investigations, it was determined that the 

evidence did not support a claim that the charge(s) were not in compliance with the Charge Complaint 

provisions of the Shipping Act. In December 2022, the Commission issued guidance on the interim 

procedure for filing Charge Complaints to provide stakeholders with additional information on how to 

initiate this process.

Since the enactment of OSRA 2022, the Commission has moved expeditiously to fulfill the requirements 

of various rulemaking mandates included in the legislation. One rule, Demurrage and Detention Billing 

Requirements, proposes requirements on specific minimum information that must be included on 

demurrage and detention invoices and outlines certain billing practices on appropriate timeframes for 

issuing invoices, disputing charges with the billing party, and resolving such disputes. The Notice of 

Proposed Rulemaking (NPRM) was published in the Federal Register on October 14, 2022, 120 days after 

OSRA 2022 was signed into law. It is anticipated that the rule will be finalized before the end of FY 2023.

This rulemaking encompasses the FMC’s pre-OSRA 2022 demurrage and detention guidance. 87 Fed. Reg. 

62341.

OSRA 2022 required two additional rulemakings addressing Unreasonable Refusal to Deal or Negotiate 

With Respect to Vessel Space Accommodations Provided by an Ocean Common Carrier and Unfair or 

Unjustly Discriminatory Methods Related to Cargo Space Accommodations. An NPRM for the former was 

issued on September 21, 2022. 87 Fed. Reg. 57674. In January 2023, the Commission announced that it 

will issue a supplemental notice of proposed rulemaking to gather public comments to determine next 

steps.

Longer-term rulemakings required by OSRA 2022 center on processes for registration for shipping 

exchange registries and essential terms for service contracts. Working groups have already begun 

researching and developing these proposed rules.

Concerns about lack of timely and accurate data regarding laden and empty containers carried in U.S. 

international oceanborne trade are addressed by Section 9 of OSRA 2022 and mandate a new data 

collection by the FMC. The Commission has issued both the 60-day and 30-day required public notices for 

this data collection, submitted supporting materials to the Office of Management and Budget, and will 

update an existing IT system to allow carriers to submit required data and enable efficient processing and 

publication of the required quarterly report on import and export tonnage and number of laden and 

empty containers operated by ocean common carriers.
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Section 18 of OSRA 2022 requires the Commission to issue a request for information (RFI) on whether 

congestion in the carriage of goods had created an emergency situation and whether an emergency order 

for data sharing between ocean common carriers, marine terminal operators, and stakeholders would 

alleviate such an emergency. The RFI was published in the Federal Register on August 15, 2022, 60 days 

after OSRA 2022 enactment. The Commission received 48 comments from the public and determined 

further information was necessary. In January 2023 the Commission announced that it will not be invoking 

temporary emergency authority at this time and will continue to monitor congestion to determine 

whether further action is needed before the provision sunsets in December 2023.

OSRA 2022 mandated that the Commission improve its website to streamline the process for the public 

to submit inquiries, file complaints, and provide comments on Commission actions. The Commission 

quickly secured IT contracting support for this effort. The new web portal will be deployed in FY 2023.

Enforcement, Investigations, and Compliance

In July 2022, Congress approved the FMC’s proposal to reorganize the enforcement and investigation staff 

into an integrated Bureau of Enforcement, Investigations, and Compliance (BEIC). The revised 

organizational chart is found in Appendix C. The Commission is currently in the process of hiring a new 

Senior Executive to oversee this transition. The new BEIC director will have considerable experience in 

litigation and will oversee a complex portfolio of enforcement and compliance cases, resulting in 

additional benefits for the shipping public.

Within the BEIC, the Office of Enforcement will be staffed with a director and additional attorneys, 

substantially bolstering resources to enable more efficient legal action. All incumbent Area 

Representatives have been reclassified as Investigators and moved to the Office of Investigations. 

Recognizing the new emphasis on investigations and enforcement activity, Investigators will no longer 

engage in the public outreach function formerly conducted by Area Representatives. Outreach will now 

be handled by the appropriate subject matter expert. Additionally, the FMC is hiring several new 

investigators and supervisors to ensure there is appropriate assignment of investigatory resources based 

on Commission priorities. The investigators will work closely with the new Office of Compliance and the 

Office of Enforcement to ensure quality case development and litigation strategies are deployed in the 

interest of the shipping public. The newly structured organization, with its additional resources, will 

substantially increase the effectiveness of the enforcement program. Enforcement activities for FY 2022

include the following type of matters: 

ENFORCEMENT

PROGRAM INVESTIGATIONS ENFORCEMENT ACTIVITIES

COMPLIANCE 

MATTERS

FORMAL 

ENFORCEMENT 

PROCEEDINGS

TOTAL 191 204 59 3

Legal Proceedings at the FMC

The Office of the Administrative Law Judges (OALJ) receives cases involving alleged violations of laws 

within the Commission’s jurisdiction initiated either by private parties or the Commission via BEIC. Due to 
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the Commission’s focus on ocean shipping industry accountability, the number of cases before the OALJ 

increased markedly between FY 2021 and FY 2022.

These are complex cases involving international commerce with complicated matters of law in question. 

Cases frequently involve considerable procedural motions, and they are not routine cases.

FY 2021 FY 2022

Formal complaints, enforcement actions, Subpart T

new or remanded 9 31

Closed 7 15

Subpart S Small Claims

new or remanded 8 15

Closed 5 10

Hearings and non-dispositive orders issued 79 155

Full Dispositive Decisions 10 28

In response to the increased number of cases, the Commission added staff to the OALJ and is in the 

process of recruiting another judge. These additions reflect the Commission’s prioritization to support 

adjudicating cases brought by the shipping public. As the Commission expands its enforcement capacity, 

it will continue to evaluate the resources required by the OALJ, including IT resources needed to 

reduce/eliminate manual processes. This caseload will increase into FY 2024, and this request provides 

for continued resources to support the rise in cases.

The Office of the General Counsel (OGC) provides legal advice and recommendations to the Chairman and 

Commissioners on adjudicatory, regulatory and policy matters. OGC advises the Commission on cases 

initiated either by private parties or the Commission itself. Docketed proceedings before the Commission 

in FY 2022 included those related to improper use of detention and demurrage, obtaining ocean 

transportation at less than applicable rates using unjust or unfair means, and unlicensed OTI activities. 

There are multiple docketed proceedings currently pending related to the use of detention and 

demurrage charges in violation of the Shipping Act and the Commission’s regulations at 46 C.F.R. § 545. 

Notably in 2022, the ALJ found that Hapag-Lloyd A.G. knowingly and willfully violated 46 U.S.C. § 41102(c), 

imposed a civil penalty of $822,220, and ordered Hapag-Lloyd A.G. and its agents to cease and desist from 

imposing detention or demurrage charges (absent extenuating circumstances) when there are insufficient 

appointments available. Following the submission of a joint petition by the parties, the Commission 

approved a $2 million settlement, expressly noting that any remedial actions by Hapag-Lloyd A.G. would 

not create a “safe harbor” insulating it or any other regulated entity from future scrutiny or findings of 

violations of the Shipping Act. Hapag-Lloyd A.G.’s civil penalty payment was received by the Commission 

on July 13, 2022. Docketed proceedings also related to detention and demurrage concerning Wan Hai 

Lines, Ltd. and Evergreen Shipping Agency (America) Corp. has recently concluded. Multiple docketed 

proceedings concerning detention and demurrage billing practices are before the ALJs. Given the length 
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of time involved in these cases and the renewed focus on detention and demurrage in OSRA 2022, the 

Commission expects continued activities in these areas.

Oversight of Industry Competition

The FMC protects competition in U.S. ocean transportation, ensuring that there is both efficiency and 

reliability in the supply chain for U.S. exporters and importers. The FMC's competition program consists 

of careful analysis of agreements when they are filed and ongoing review of actions that are taken under 

these agreements.

Filed Agreements and FMC Monitoring

The FMC’s statutory authority and regulations require that agreements which allow collaboration among 

ocean common carriers or MTOs must be filed with the Commission. Commission staff analyze these 

agreements for potential anticompetitive effects upon filing and then monitor activity under these 

agreements on an ongoing basis for those agreements that are competitively concerning.

There are approximately 375 agreements on file with the Commission, comprised of VOCC agreements, 

MTO agreements, and assessment agreements. The vast majority of agreements on file with the 

Commission are VOCC agreements which represent basic space sharing agreements and are not 

competitively concerning. There are approximately 50 agreements on file which staff monitor regularly 

due to competitive concerns.

The largest ocean common carriers collaborate in “alliances” or global vessel sharing arrangements. There 

are three alliances with agreements on file with the FMC, and these are the most closely scrutinized by 

the Commission. Alliance agreements allow coordination of capacity, but discussion or coordination on 

rates is categorically prohibited. The limited antitrust immunity granted under an alliance agreement 

extends only to activities among agreement parties within the scope of the filed agreement. Conduct 

inconsistent with the terms of an agreement is illegal and exposes parties to criminal and civil prosecution 

under existing statutes.

The FMC’s monitoring program is unlike any other in the world. Competition authorities in the European 

Union and in various Asian nations do not have access to the same detailed information that the FMC 

collects from alliance carriers. During the pandemic, when carrier rates increased sharply, the FMC closely 

scrutinized all monitoring data to assess whether this was the result of collusion among the carriers which 

would violate the terms of their FMC-filed agreements. The Commission has also twice amended the data 

required from alliance carriers since the onset of the pandemic, most recently in Spring 2022, to ensure 

staff have the information needed to fully understand carrier activities and the impacts on the market. As 

the market shifts from scarcity to excess supply of carrier capacity, the FMC’s focus will be on ensuring 

that alliance carriers do not restrict capacity to artificially increase rates. The new monitoring 

requirements permit the Commission to rapidly track and anticipate changes in capacity.

Ensuring Compliance with Commission Regulations on Service Contracts and Tariffs

Tariffs: The FMC maintains an up-to-date listing of ocean carrier tariff website locations for the public to 

use in identifying ocean carriers’ publicly available rules and rates for the transportation of cargo. There 

are more than 8,600 common carrier tariff locations posted on the FMC’s website. Roughly 150 of these 

are VOCCs and the balance are NVOCCs. While the Commission’s goal of publishing tariff locations is to 

make it possible for the public to freely access the rates and rules of carriers, many common carriers rely 

upon tariff publishers and often the public is required to pay for access to these tariffs. An NPRM was 
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published in May 2022 seeking public comment on revisions to the Commission’s regulations on carrier 

automated tariffs to require free access to tariffs. The final rule will be issued in FY 2023.

The Commission is working to revamp its program to assess compliance with tariff requirements, as well 

as an annual review to assess MTO and VOCC status. This work will commence in FY 2023 and be 

supported by additional resources to improve compliance targeting and automate review. The 

Commission will also launch an outreach and education effort surrounding tariff requirements, 

particularly for NVOCCs. The Commission is developing an informed compliance program to better 

communicate requirements and to monitor and hold regulated entities accountable for not complying 

with the laws and regulations.

Service Contracts: The Shipping Act requires ocean common carriers to file service contracts with the 

Commission. Over time, the number of original service contracts filed has increased with the rise in spot 

market or single shipment service contracts of a limited duration. Amendments to service contracts are 

affected by changes to costs and charges, including fuel costs. Although the FMC is directed by statute to 

evaluate service contracts, the large volume, the lack of uniform filing requirements, and the lack of key 

data elements prevent the FMC from properly leveraging the information in service contracts to track 

developments in the industry and to assess for compliance at a reasonable scale. 

Service contract volumes, particularly for amendments, are typically higher in times of market transition.

The Commission has received historic high numbers of service contract amendmentsin the past year; over 

90,000 in September 2022 alone, which is the highest single month on record. Without major revisions to 

systems and filing requirements, the FMC cannot leverage the information contained in service contracts

to determine whether this is driven by changes in fuel prices or major downward revisions in contract 

rates. In FY 2023, the Commission will engage in a rulemaking to propose adjustments to the required 

elements and filing format of service contracts and increase staffing and IT support to develop an 

improved system for receiving, processing, and analyzing service contracts. In FY 2024, the Commission

anticipates a systems improvement to facilitate large-scale automated data extraction from service 

contracts, which will enable it to track and analyze market changes and to identify problematic trends in 

rates and fees more readily.

653,497 

817,944 670,001 

696,831 651,254 

863,206 

789,221 

1,096,032 

 -

 200,000

 400,000

 600,000

 800,000

 1,000,000

 1,200,000

FY 2019 FY 2020 FY 2021 FY 2022

Service Contract Filings

Originals Amendments
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|15

Licensing and Financial Responsibility

The Commission protects the public from harm by overseeing OTIs and PVOs. The certification and 

licensing program focuses on three primary areas: OTI licensing and registrations, financial 

responsibilities, and PVO monitoring and certifications. These activities are fundamental to protecting the 

public from unqualified and underfunded shipping companies and cruise lines.

Ocean Transportation Intermediaries

OTIs serve as middlemen for oceanborne cargo moving in the U.S.-foreign trades. Ocean cargo 

transportation may be purchased directly from an ocean carrier; however, cargo owners often use

licensed OTIs for their services. Before the FMC grants a license to an OTI, the applicant must establish 

that it employs a Qualifying Individual (QI) with the necessary character and a minimum of three years of 

shipping experience in the U.S. Also, the applicant must demonstrate its financial responsibility by means 

of a bond, insurance, or other financial instrument.

The number of OTIs has increased substantially since the onset of the pandemic, with a large number of 

foreign-based NVOCCs entering into the market. In FY 2020, there were roughly 1,800 foreign-based 

NVOCCs and in FY 2021 there were roughly 2,700. As of the end of FY 2022, over 9,000 OTIs are regulated 

by the Commission, including approximately 5,000 licensed entities based in the United States and more 

than 4,000 foreign-based NVOCCs.

The FMC’s triennial renewal program for licensed OTIs provides an efficient process for OTIs to review and 

update their essential information on file with the Commission within minutes. In FY 2022, approximately 

1,500 OTI licenses were renewed, with most reviewed and processed within 48 hours of submission. Given 

the increased number of OTIs, there is an increased workload related to renewal and evaluating these 

regulated entities for compliance. A new OTI compliance program is being developed to evaluate OTI 

business activities and to increase the Commission’s ability to find and remedy instances of 

noncompliance. Staff will work closely with the newly restructured Office of Compliance within BEIC to

assess cases and ensure that the industry is aware that there is heightened scrutiny of OTIs, particularly 

those entities who are newer to the market.

4819 4927 5045

1860 2770

4145

FY 2020 FY 2021 FY 2022

Trends in OTIs

OTIs licensed in the U.S. foreign-based NVOs
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|16

Passenger Vessel Operators 

The FMC oversees a program to ensure financial responsibility for PVOs, (commonly referred to as “cruise 

lines”), 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 issued by the FMC ensures

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

prevents unscrupulous or financially vulnerable operators from serving U.S. ports. The PVO program 

currently includes 48 operators and 258 vessels. 

As previously presented, Fact Finding 30, COVID-19 Impact on Cruise Industry, identified commercial 

solutions to COVID-19-related issues interfering with the operation of the cruise industry. Under 46 C.F.R. 

§ 540.5 and 46 C.F.R. § 540.9(l), the Commission can consider alternative forms of financial protection 

using a shorter period to determine the required amount of a PVO’s financial responsibility. In July 2020, 

the Commission approved a Passenger Vessel Operator Financial Responsibility policy to provide limited 

and temporary financial relief for small PVOs whose operations and business were disrupted by the 

response to COVID-19. The FMC determined it would look favorably upon requests from small PVOs 

seeking a temporary surety/financial responsibility lower coverage amount based upon 110 percent of 

the PVO’s previous month’s UPR rather than the prior two fiscal years’ UPR. Operators were required to 

agree to: 1) provide monthly reports to the FMC that satisfactorily demonstrate the company’s UPR, and 

2) comply with the requirements and conditions of the alternative form of evidence of financial 

responsibility, or they would be subject to the default requirements in the Commission’s regulations.

In February 2022, the Commission amended its regulations governing non-performance by PVOs to 

establish new requirements for refunding cruise passengers for cancelled or delayed voyages. Pre-COVID19 pandemic, PVOs’ ticket contract policies and procedures traditionally refunded passengers in the form 

of future cruise credits in lieu of monetary refunds for non-performance. The pandemic resulted in 

considerable uncertainty regarding fully operational cruises, yet passengers were still being held to their 

ticket contracts. The Commission’s new rule mandated that passengers be fully refunded within 180 days 

all fees, including ancillary fees, paid to the PVO. Optionally, passengers could agree to receive future 

cruise credits in lieu of the refund. 

These new rules and processes have increased the scope and complexity of cases involving PVO nonperformance. The program is currently staffed by only one employee, which is not sustainable. The 

Commission will expand resources for this program by adding multiple positions to support rulemakings, 

develop systems requirements, and conduct on-going monitoring and compliance work. The staff will 

develop processes for monitoring and compliance to protect consumers and will ensure that cruise 

passengers with complaints in scope for CADRS are provided resources for quick case resolution and 

create feedback loops with CADRS to identify any gaps in consumer protection that can be handled 

through rulemakings or industry guidance.

International Affairs

The Commission’s international engagement allows it to consult with foreign counterparts. Meetings over 

the past year involved representatives from Australia, Brazil, Canada, Denmark, and the Republic of Korea. 

In addition, Commissioners regularly meet with multi-country groups to discuss competition issues. The 

People’s Republic of China is scheduled to host the 6th Global Maritime Regulatory Summit in 2023, and 

representatives from the Commission will attend, along with representatives from the European Union,

to discuss approaches to the common goal of ensuring continued competition in ocean shipping.
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|17

Since the passage of OSRA 2022, there has been an increase in requests from officials of other 

governments for meetings and consultations to learn about changes to U.S. laws and implications for 

global maritime trade. The Commission anticipates continued interest from foreign counterparts in FY 

2023 and FY 2024 and will accommodate requests for meetings and official consultations.

Providing New Regulations 

The FMC’s regulations implement the Shipping Act, OSRA 2022, and other related laws. The FMC issues 

and updates regulations through the rulemaking process. The Commission worked on 17 rulemakings 

during calendar years 2020-2022; six of those rulemakings were triggered by the COVID-19 pandemic and 

the related supply chain disruption. In addition to requiring review and updating of the Commission’s

regulations, OSRA 2022 contains references to five mandatory rulemakings and one optional rulemaking. 

The Commission hired a new General Counsel in FY 2023, who will lead OGC operations with Commission 

priorities and bolster staffing and training to further support rulemakings and provide advice to the 

Commission. More information on rulemakings is included in Appendix B, Biennial Report on Unfinished 

Regulatory Proceedings.

National Shipper Advisory Committee

Establishing a shipper advisory board was a key recommendation from Fact Finding 28, Conditions and 

Practices Relating to Detention, Demurrage, and Free Time in International Oceanborne Commerce. The

National Shipper Advisory Committee (NSAC), comprised of 12 import representatives and 12 export 

representatives, was chartered in June 2021, and operates under the Federal Advisory Committee Act, 5 

U.S.C. App., and 46 U.S.C. Chapter 425. Specifically, the Committee will advise the Commission on policies 

relating to the competitiveness, reliability, integrity, and fairness of the international ocean freight 

delivery system. Commission staff support the activities of this committee, including serving as the 

Committee Management Officer, the Designated Federal Officer, and two Alternate Designated Federal 

Officers. Members of the public may find more information about the NSAC (member list, charter, 

meeting materials, recommendations, and responses) on our website.

The Committee has taken an active role since its establishment, forming subcommittees related to 

fees/surcharges, data, and equipment. The NSAC issued recommendations at its April 2022 meeting 

related to dwell fees and intermodal oversight, and at its August 2022 meeting recommendations related 

to earliest return date and the creation of a second advisory committee were issued. 

Effective Organizational Management

Focusing efforts on enforcement, increased consumer assistance, assistance to U.S. exporters and OSRA 

2022 implementation requires appropriate alignment and support from the Commission’s administrative

units. The agency has rapidly increased the pace of hiring to enhance its new priorities. It is anticipated

that this hiring surge will continue over the next two years. The FMC recognizes that its employees are 

critical to achieving its mission and continues to make investments in its workforce a top priority. A highly 

skilled, agile, and committed workforce is needed for the Commission to execute program goals and 

respond effectively and quickly to changing priorities. Hiring a diverse workforce ensures that the FMC 

retains talent and that its employees reflect the diversity of the U.S. population.

The FMC’s Office of Human Resources has made improvements to the hiring process, including using new 

job series for technical experts, USA Hire to improve candidate assessment, and Direct Hire authorities to 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|18

quickly onboard staff in key positions. The Commission will continue to promote various hiring authorities 

and flexibilities, including Direct Hire and Schedule A authorities, and expand use of the Pathways Program

(e.g., interns and Presidential Management Fellows) to attract new and diverse talent by focusing 

recruitment to include more students and recent graduates.

The FMC maintains multiple leadership programs to better prepare internal candidates for the leadership 

roles that are required under our new regulatory environment and organizational structure. In FY 2022,

the Commission offered three leadership development programs for different grade levels under the 

Commission’s Leadership Development Program; and instituted a Senior Executive Service Development 

Program which supports professional development through formal trainings, details and rotational 

assignments, and mentoring opportunities. These programs will continue in FY 2023 and FY 2024 to grow 

the next generation of leaders.

The FMC will continue to identify and address skills gaps, act on outcomes of root-cause analyses and 

participate in government-wide strategic initiatives. In FY 2023, the Commission will continue succession 

planning efforts to ensure that gaps in knowledge, skills, and abilities are addressed through recruitment 

or workforce development and that resources are properly allocated throughout the organization. These 

efforts include assessment of staffing needs with hiring managers, remediation of identified skills and 

knowledge gaps, creation of career path resources for Mission Critical Occupations (MCOs), evaluation of 

leadership development programs such as leadership succession management strategies, performance 

management training, supervisory training, leadership journeys, and career and leadership development 

job rotational opportunities. The Commission will continue to promote its mentoring/coaching program 

to develop future leaders and take steps to implement phased retirement. These efforts will continue into 

FY 2024 and will help manage the risk of having a high number of retirement-eligible employees. 

IT Solutions

Information technology spending will increase as the Commission evaluates and modernizes its IT 

infrastructure, with an initial focus on cybersecurity risk mitigation and system integration. The 

Commission has multiple legacy systems used to collect information from the public and regulated 

entities. The modernization of these systems, initiated in FY 2023, will improve the way the Commission 

interacts with the ocean shipping industry to collect required information, the management and use of 

the data collected, as well as mitigate cybersecurity risks. 

The Commission continues to prioritize its cybersecurity posture through infrastructure enhancements 

and maturation of its cybersecurity and privacy program. Improvements include an integrated 

cybersecurity incident and privacy breach response plan, an Integrated Cybersecurity Center that provides

monitoring and response, and an improved ability to continue business/mission operations despite a 

cyberattack. The Commission continues to address potential gaps in its security posture to enable better 

decision-making and improve leadership visibility and oversight. Historical and expected spending on

cybersecurity requirements are provided in Appendix E.

The Commission also recognizes the need to ensure alignment of an enterprise operating model to 

address digital business needs and improve business performance. Information technology functions 

should facilitate collaboration and efficiencies to create a better experience for the FMC’s customers and 

staff. The FY 2024 budget request will enable the FMC to enhance services with better technology and 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|19

increased accessibility, streamline processes that put customers first, and provide equitable support that 

reaches into communities that have faced historic barriers. 

A full IT investment assessment will be completed in FY 2023 to provide a roadmap for systems 

replacement and enhancements. Increased funding will allow the Commission to move antiquated legacy 

systems to a cloud-based, secure platform, and enhance functionality in support of enforcement and 

compliance initiatives. In addition to legacy system replacement and enhancement, systems that can 

better support internal business processes to manage agency workflows and reporting, collect data, 

reduce time spent on manual tasks, and improve public access to FMC services are needed. 

Advancing Equity

Equity Action 

The Commission promotes equity and works to remove barriers from underserved and underprivileged 

populations, both in its role in industry oversight, and its internal workforce. As an independent agency, 

the Commission has voluntarily complied with Executive Order 13985, Advancing Racial Equity and 

Support for Underserved Communities Through the Federal Government, and OMB Memo M-21-17 by 

conducting equity assessments of programs and services directed at the public. The Commission will 

further consider Executive Order 14091, Further Advancing Racial Equity and Support for Underserved

Communities Through the Federal Government in promoting Commission equity initiatives and leadership. 

In January 2022, the Commission finalized its Equity Action Plan, which considered several areas for equity 

review. The Commission has continued its equity reviews to improve access to FMC information. In FY 

2023, the Commission will conclude a review of contracting practices, and will include a plan to implement 

any identified steps to improve equity. The FMC will also work to improve access to information on its

website in FY 2023 and FY 2024. The FMC will continue to consider steps to serve underprivileged groups 

and to ensure that it is accessible to the public and its stakeholders. 

The Commission is following guidance in OMB M-22-01, Improving Access to Public Benefit Program 

Through the Paperwork Reduction Act, in conducting its equity work. While the FMC does not currently 

administer public benefits programs, it will consider whether the federal information collection burden 

for underserved and underprivileged communities can be minimized in future Commission information 

collections. No FTEs are required to implement this effort; employees already involved in information 

collections will consider equity in future burden analysis projects.

Diversity, Equity, Inclusion, and Accessibility in the FMC Workforce

The FMC is also voluntarily participating in Executive Order 14035, Diversity, Equity, Inclusion, and 

Accessibility in the Federal Workforce, geared towards cultivating a workforce that draws from our 

Nation’s full diversity and advancing equitable employment opportunities for individuals from 

underserved communities. 

For FY 2023, the FMC has identified a set of themes and strategies that support and promote diversity, 

equity, inclusion, and accessibility (DEIA) for employees and applicants for employment. Our programs 

focus on ensuring access to equal opportunities; accessing talents of and creative engagement with a 

diverse workforce; and improving employment outcomes for all employees. Through application of DEIA 

principles, we are supporting the agency’s mission to ensure a competitive and reliable international 

ocean transportation supply system that supports the U.S. economy and protects the public from unfair 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|20

and deceptive practices. The FMC’s Fiscal Years 2022-2026 Strategic Plan includes an objective to foster a 

high performing, engaged, and diverse workforce where staff understand how their efforts contribute to 

the goals of the Commission. Specifically, the FMC promotes a culture that is open, diverse, inclusive, and 

engaged.

In FY 2023 and FY 2024, the FMC will deploy training for staff on equal employment opportunity law and 

process, accessibility requirements in the federal government, and enhance communication across 

diverse groups; expand use of exit surveys; recruit at a wide assortment of institutions and expand career 

development opportunities that connect workers to leadership roles, especially in ways that address 

barriers identified in workforce analyses and that target our goals to ensure inclusion of individuals with 

disabilities.

Resources for Equity and DEIA Efforts

The FMC will use its existing workforce to perform equity work. Resources for equity initiatives, such as 

website improvements to improve access, are included in the Commission’s information technology 

request. No additional funds are requested for this effort. Additionally, the agency will consider whether 

detailees, interns or additional part-time staff will be necessary to assist in advancing these plans.
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|21

Inspector General Request and Certification

FEDERAL MARITIME COMMISSION

Washington, DC 20573

February 8, 2023

Office of Inspector General

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.
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|22

Following the requirements as specified above, the Federal Maritime Commission ( F M C ) 

Inspector General submits the following information relating to the OIG’s requested budget for 

FY 2024:

• the aggregate budget request for the operations of the OIG is $629,628,

• the portion of this amount needed for OIG training is $2,500, and

• the portion of this amount needed to support the CIGIE is $2,412.

I certify as the Inspector General of the FMC that the amount requested satisfies the needs of the 

OIG for FY 2024, including all FMC OIG training requirements, and resources to support CIGIE.

Jon Hatfield, Inspector General

Federal Maritime Commission
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|23

Appendix A. FY 2024 Budget Request Table
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|24

Appendix B. Biennial Report on Unfinished Regulatory Proceedings

The Commission reports to Congress biennially on the status of unfinished regulatory proceedings.

Unfinished Regulatory Proceedings

Popular Title Carrier Automated Tariffs

RIN 3072-AC86

Demurrage and Detention Billing 

Requirements

RIN 3072-AC90

Docket Number 21-03 FMC-2022-0066

Current Stage Proposed Rule Proposed Rule

Abstract The Commission seeks information 

regarding the impact of tariff access 

fees and access requirements and 

how common carriers are applying 

“pass through” charges under their 

tariffs in Part 520.

The Commission is implementing 

requirements for common carriers and 

marine terminal operators to include 

certain minimum information on or 

with demurrage and detention billings. 

In addition, the Commission is 

implementing requirements for 

common carriers and marine terminal 

operators to adhere to certain 

practices regarding the timing of 

demurrage and detention billings.

What Prompted 

Action

Commission initiative Ocean Shipping Reform Act of 2022, 

Pub. L. 117-146 (2022), section 7(b).

Applicable 

Statutory, 

Regulatory, or 

Judicial Deadline

None 06/16/2023

Initiated ANPRM published – 04/08/2021

NPRM published – 05/10/2022

ANPRM published – 02/15/2022

NPRM published – 10/14/2022

Next Action Action on Proposed Rule

Scheduled – FY 2023

Action on Proposed Rule

Scheduled – 06/2023
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|25

Unfinished Regulatory Proceedings (continued)

Popular Title

Definition of Unreasonable Refusal 

to Deal or Negotiate with Respect 

to Vessel Space Accommodations 

Provided by an Ocean Common 

Carrier

RIN 3072-AC92

Definition of Unfair or Unjustly 

Discriminatory Methods Under 46 

USC 41104(a)(3)

RIN 3072-AC93

Docket Number 22-24 FMC-2023-00^^1

Current Stage Proposed Rule Pre-Rule

Abstract The Commission is seeking public 

comment on its proposed rule arising 

from the Ocean Shipping Reform Act 

of 2022 requirement that prohibits 

ocean common carriers from 

unreasonably refusing to deal or 

negotiate with respect to vessel 

space accommodations. Specifically, 

the Commission is proposing to 

define the elements necessary to 

establish a violation and the criteria 

it will consider in assessing 

reasonableness.

The Commission is seeking public 

comment on its proposed rule arising 

from the Ocean Shipping Reform Act 

of 2022 requirement that prohibits 

ocean common carriers from 

resorting to other unfair or unjustly 

discriminatory methods. Specifically, 

the Commission is proposing to define 

the elements necessary to establish a 

violation and the criteria it will 

consider in assessing whether a 

method is unfair or unjustly 

discriminatory.

What Prompted 

Action

Ocean Shipping Reform Act of 2022, 

Pub. L. 117-146 (2022), section 7(d).

Ocean Shipping Reform Act of 2022, 

Pub. L. 117-146 (2022), section 7(c).

Applicable 

Statutory, 

Regulatory, or 

Judicial Deadline

12/16/2022 06/16/2023

Initiated NPRM published – 09/21/2022 N/A

Next Action SNPRM Scheduled – 06/2023 NPRM

Scheduled – 08/2023

1 The use of “^^” indicates that a docket number is not currently assigned.
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|26

Unfinished Regulatory Proceedings (continued)

Popular Title

Civil Penalty Amendments to 46 CFR Part 502,

Rules of Practice and Procedure

RIN 2073-AC^^

Docket Number FMC-2023-00^^

Current Stage Pre-Rule

Abstract The Commission revises its procedural rules in 46 C.F.R. part 502 to 

incorporate its authority to order a refund of a charge paid in addition or in 

lieu of a civil penalty.

What Prompted 

Action

Ocean Shipping Reform Act of 2022, Pub. L. 117-146 (2022), 

section 8.

Applicable 

Statutory, 

Regulatory, or 

Judicial Deadline

None

Initiated N/A

Next Action Direct Final Rule

Scheduled – 02/2023
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|27

Appendix C. Commission Organizational Chart 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|28

Appendix C.1. New BEIC Organizational Structure
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|29

Appendix D. IT Modernization & Improvements in Digital Services

Section 3(d) of the 21st Century Integrated Digital Experience Act (21st Century IDEA) (Public Law 115-

336), requires an annual report to Office of Management and Budget (OMB) and the public on the 

progress of modernizing agency’s websites and digital services. The information below details the efforts 

of the Commission’s websites and digital services in FY 2023.

FMC.Gov Website

The Commission maintains a single website, fmc.gov, to provide information to the public on the FMC’s 

activities, notices to the industry on current and proposed regulations and initiatives, and links to digital 

services.

The table below provides an assessment of the FMC’s website compliance with the requirements of 

Section 3(a) of the 21st Century IDEA:

Criteria Compliant

508 Compliant Yes

Has a consistent appearance across services Yes

Does not overlap with or duplicate any legacy website Yes

Contains a search function that allows users to easily search content intended for 

public use Yes

Is provided through an industry standard secure connection Yes

Is designed around user needs with data-driven analysis influencing management 

and development decisions, using qualitative and quantitative data to determine 

user goals, needs, and behaviors, and continually test the website, web-based form, 

web-based application, or digital service to ensure that user needs are addressed

Yes

Provides users with the option for a more customized digital experience that allow 

users to complete digital transactions in an efficient and accurate manner

Not 

Applicable

Is fully functional and usable on common mobile devices Limited

The Commission’s website would benefit from improvements to address the following challenges:

• The website relies on application technology that has, or is, approaching a date when it will no 

longer be supported. 

• The capabilities of the website have not kept pace with needs of users for customization and 

would benefit from technology improvements.

• The website has limited portability to mobile devices which occasionally constrains the viewing of 

content. 

The Commission plans to initiate a redesign/refresh of the website to address the challenges with funding 

provided in FY 2023. The budget for FY 2024 includes operation maintenance costs projected at 20 percent

of the initial investment cost. 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|30

FMC Digital Services 

Over several years, the Commission developed different online information filing applications and 

searchable databases to support the industry. The implementation of these services facilitated the 

successful transition from paper-based forms to electronic filing. These services include the following 

systems:

• Ocean Transportation Intermediary License, Registration, Renewal, and Application Processing 

System for both domestic and foreign OTIs;

• Proof of Financial Responsibility;

• eAgreement Filing System and Library;

• Service Contract Filing System (SERVCON);

• eMonitoring; and

• Regulated Person Index.

The FMC assessed the systems as a group for compliance with Section 3(a) of the 21st Century IDEA: 

Criteria Compliant

508 Compliant Yes

Has a consistent appearance across services No

Does not overlap with or duplicate any legacy website Yes

Contains a search function that allows users to easily search content intended for 

public use Limited

Is provided through an industry standard secure connection Yes

Is designed around user needs with data-driven analysis influencing management 

and development decisions, using qualitative and quantitative data to determine 

user goals, needs, and behaviors, and continually test the website, web-based form, 

web-based application, or digital service to ensure that user needs are addressed

No

Provides users with the option for a more customized digital experience that allow 

users to complete digital transactions in an efficient and accurate manner

No

Is fully functional and usable on common mobile devices No

The FMC has initiated a project to move these legacy systems to sustainable solutions to address the 

following challenges:

• Systems were developed on multiple application platforms, over the course of several years, 

which resulted in an inconsistent appearance.

• The current search function allows for searching the library of information but would benefit from 

newer technologies that would support a more robust, customizable capability.

• While connection to the system(s) uses current security protocols, additional manual procedures 

are used to address security and access control issues within the applications.

• Systems were implemented with the primary goal of moving from paper-based filing to electronic 

filing. The designs of these applications were constrained by the technology used when the 

applications were developed and now require significant improvement to meet the needs of 

stakeholders and to be considered compliant.
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|31

• Systems are limited in functionality and do not provide for customizable use or streamlined 

activity.

• Systems are available on mobile devices, but do not take advantage of newer technology.

In addition to these challenges, the cost to maintain the legacy systems has become prohibitive, inhibiting 

new development, and dependent upon identifying resources proficient on the outdated technologies.

The project to modernize IT Systems will combine the legacy, public facing systems under one initiative to 

provide improved useability for industry and consumers contacting the Commission for assistance. The 

solution will also aid Commission staff in the review and verification of industry compliance with the FMC’s 

regulations.

Opportunities exist along many fronts to improve the efficiency of the FMC’s internal processes. Parallel 

to the initiative to modernize the public facing systems, a project to improve systems supporting internal 

business practices is also in progress. The goal of the project is to improve the way that the Commission 

tracks formal proceedings, enforcement cases, investigatory activities, informational inquiries, and 

requests for dispute resolution assistance from industry stakeholders, and to take advantage of advances 

in technology in the use of data currently being collected. 

Costs of Initiatives

The table below summarizes the projected lifecycle cost for each initiative with the planned spending in 

FY 2023 and FY 2024. Operation and maintenance of systems is intended to address changes in processes, 

patches to mitigate cybersecurity threats, and minor enhancements. Lifecycle cost estimates reflect a 

duration of five years of operations and maintenance following the implementation of the new system. 

The Program Management line in the chart reflects contractor support of solution implementation to 

include requirements and risk management, testing, change management and overall performance.

Project/Initiative Lifecycle

Costs

2023

Estimate

2024

Estimate

Webpage Update $ 440,000 $ 220,000 $ 44,000

Public Facing Solutions $ 3,700,000 $ 500,000 $ 1,000,000

Docket/Court Record Management $ 1,000,000 $ 500,000 $ 100,000

System(s) to support internal operations $ 3,300,000 $ 650,000 $ 530,000

Program Management $ 810,000 $ 810,000

Solution Approach and Estimated Timelines

The objectives of the modernization plan are to replace legacy systems using COTS solutions wherever 

possible to speed deployments and reduce lifecycle cost of ownership. Opportunities to use Software as 

a Service (SaaS) and the use of currently licensed technologies will also be considered to achieve the

objectives. A hybrid of custom development, COTS, and SaaS may be necessary in some cases to meet 

requirements. The profile below provides the planning assumptions for each category of systems. The 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|32

chart also depicts the expected time to compete acquisition, deployment of the initial operating system, 

and progress to an operation and maintenance phase.

Project/Initiative Planned Approach Implementation Timeframe

Webpage Update Configuration of COTS 1 Year

Public Facing Solutions Hybrid 2-3 Years

Docket/Court Record Management SaaS 1 Year

System(s) to support internal operations SaaS 2-3 Years
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Appendix E. Cybersecurity Initiatives and Costs

The FMC uses a layered defensive posture for infrastructure protection, identifying intrusion attempts 

and infiltrations which are further enforced with annual user training on cyber and personal security. The 

Commission’s cybersecurity program relies upon in-house- and contract expertise using the latest tools 

and technologies. The FMC fully participates in cybersecurity programs aimed at protecting the wider 

Federal enterprise or national digital ecosystem.

The FMC is reliant upon these interrelated programs to implement a defensive capability designed around 

the National Institute of Standards and Technology (NIST) framework. 

Identify/Detect: The FMC uses capabilities inherent in firewall technology and other tools designed to 

detect attempts at phishing and malware attacks by malicious actors. The FMC uses specialized tools to 

monitor installed software to ensure computers/applications are up to date with patches or connection 

to un-support peripheral devices. Annual training aids keep staff informed of the latest threats and their 

responsibility to safeguard data and systems. In-house spoofing attempts test a users’ ability to identify 

phishing attempts and enforces staff understanding of their role in the layered strategy. 

Protect: The FMC uses Microsoft Azure Advanced Threat Protection and support from a Microsoft Threat 

Engineer to design protection strategies. The FMC also uses Personal Identity Verification (PIV Card) and 

2-part authentication strategies to enhance the layers of protection for its systems and data. The FMC 

takes advantage of the Continuous Diagnostics and Mitigation (CDM) Program provided by the 

Cybersecurity and Infrastructure Security Agency (CISA) to fortify the FMC networks and systems. 

Respond & Recover: Through a cloud-based architecture, the FMC maintains a layered backup capability 

to enable data recovery when incidents occur. 
FMC FY 2024 CONGRESSIONAL BUDGET JUSTIFICATION PAGE|34

IT Expenditures:

Commission spending for Cybersecurity is characterized using the NIST Framework for cybersecurity 

functions and activities. Where there is significant overlap in activities, the functions and costs are 

combined to avoid duplication.

NIST Framework FY 2022

Actual

FY 2023

Planned

FY 2024

Request

Detect/Identify $ 48,000 $ 32,400 $ 44,800

Protect $ 133,000 $ 137,000 $ 144,000

Respond & Recover $ 8,300 $ 9,000 $ 15,000

Personnel:

All members of the information technology team participate in efforts to implement cybersecurity 

protection led by the Commission’s Chief Information Officer (CIO) and the Chief Information Security 

Officer (CISO). In the face of increasing cybersecurity requirements, the Commission is adding a

cybersecurity specialist in FY 2023 to help safeguard against cybersecurity threats and to promote 

compliance with cybersecurity directives. The chart below identifies staff time dedicated to cybersecurity 

compliance.

FY 2022 FY 2023 FY 2024

CIO .05 .05 .05

CISO .80 .80 .80

Cybersecurity specialist .50 .95

Total FTE: .85 1.35 1.80