3Feberal M

Washi

Qm of We 2hanman

TO THE SENATE AND THE HOUSE OF R

I am pleased to submit to yo

Maritime Commission for Fiscal Y

of Reorganization Plan No 7 of 

Marine Act 1936

The Conmission achieved reco

1980 issuing 346 final decision

proceedings and expediting its r

15 of the Shipping Act 1916 We 

our efforts to eliminate illegal 

and our administration of the Oce

to virtually eliminate predatory 

ocean carriers operating in our 

I am personally gratified th

set for the agency when I became 

ago by expediting the Commissios

eliminating the agency s backlog 

more timely and responsive to the 

public We must now vigorously p

reform including our efforts to 

areas where it is clearly necess

forward to great progress in this 
i LETTER OF TRANSMITTAL

TAB

II THE COMMISSION 

Membership

History and Function

Administration

III FISCAL YEAR 1980 IN REVIE

IV FOREIGN COMMERCE 

Agreements

Tariffs

Significant Commiss

Significant Trade D

V DOMESTIC COMMERCE 

Tariffs

Significant Commiss

Significant Trade D

VI CERTIFICATION ACTIVITIES 

Water Pollution

Passenger Vessels

Freight Forwarders

VII FINAL DECISIONS OF THE C

VIII COURT PROCEEDINGS 

IX LEGISLATION 

X APPENDICES
MEMBERS

Richard J Daschbach

Chairman

D New Hampshire

Leslie L Kanuk

Vice Chairman

0 New Jersey

Thomas F Moakley

Commissioner

D Massachusetts

James V Day

Commissioner

R Maine

Peter N Teige

Commissioner

R California

MR

MR DAY

THE M

AP

Au

Ap

No

Fe

A

II

THE COMM

History and 

The Federal Maritime Commission was 

agency on August 12 1961 by Reorganizatio

and subsequent laws governing the regulati

foreign waterborne commerce are enforced 

Major responsibilities of the Commis

1 The regulation of ocean car

foreign and domestic offsho

2 Investigation of discrimina

among shippers carriers te

forwarders

3 Licensing of independent oc

4 Passenger vessel certificat

5 Certification of vessels to 

for pollution by oil and ha

The Commission smost visible activi

of section 15 of the Shipping Act Sectio

from the Sherman and Clayton antitrust la

concerted ratemaking authority the FMC e

among entities subject to the Shipping Ac

The functions and authority of the F

of the Interstate Commerce Commission and 
unlike the ICC has very limited auth

tariffs already lawfully filed in the 

does not have authority to limit entry 

The Maritime Administration unde

a promotional agency which develops s

merchant marine The FMC is strictly 

promoting the USflag merchant marin

can however protect the USflag fl

of a competitive US merchant marine 

In spite of these restrictions t

stability and equity in the US ocean 

US foreign trade is waterborne the 

the shipping public and the consumer 

economy in our foreign commerce cann

Adm

There are five Commissioners on 

with the consent of the Senate to serv

of the members may belong to the same 

one Commissioner as Chairman the chie

of the agency

The FMC has a total authorization 

its personnel located in the Commisss

Commission also has a district office 

located at its Washington headquarte

Chicago San Francisco Los Angeles 

Rico





resolve complaints problems and 

and monitor consumer related leg

consumer initiatives by the Adm

in other government agencies

The FMC s principal consume

shippers the consumers of ocean 

new office will handle all shippe

rates practices and related pro

than one thousand of these comp

o The Office of Management Evaluat

internal management audits design

in the use and management of Com

desired results and objectives a

to determine if applicable laws 

are receiving full compliance

The office has also been ch

implementation of the Commissios

System which includes the colle

workload statistics Other dutie

expertise on records information 

policies and procedures through 

Managing Directives serving as 

for the clearance of Commission 

and participating in the Office 

Productivity Improvement Program 

as Inspector General of the Com
The Office of Management E

involved in the development of 

measure the effectiveness of se

o The Office of Data Systems form

Bureau of Industry Economics w

reorganization The office is 

of a management information sys

upgraded automatic data process

the Office of Data Systems is e

ADP system to measure agency pe

levels reporting directly to t

seniorlevel managers responsib

perform their duties with the b

Tne Office of Ener and Enviro 

the cxmnissior sBue0 of inus

as a autonomous organizatnonei 

importance of the Commission 

Administration of the prov

Policy Act NEPA and related s

responsibility The growing im

shipping activities and the inc

in Commission proceedings all s

separate office exclusively ded

concerns
During Fiscal Year 1980 the 

Analysis prepared final rules im

Procedures for Environmental Po

will be applied to all proposed 

the Commission The office also 

functions to determine which aae

as major regulatory actions un

Policy and Conservation Act of 1

During Fiscal Year 1980 th

agreements and docketed proceedi

environmental impact assessment 

received an environmental impact 

to require an assessment and ni

The reorganization divided the former 

into two separate bureaus

o The Bureau of Agreements major 

and review of all agreements file

Act the evaluation of dual rate 

and standardization of procedure

agreements review process Re

of trade patterns conference a

pooling statements and operating 

portion of the Bureau sduties 

agreements approved by the Comm

under which an agreement was app
warrant continued approval m

and forecasts future competit

with the Office of Regulatory 

The addition of the Offic

in the Bureau of Industry Eco

the high priority which the C

evaluation of section 15 agre

mandate increased coordinatio

transportation industry analy

Economic Analysis within the 

economists and analysts to be

their respective areas of exp

The Bureau of Agreements 

exactly one a day during the 

o The Bureau of Tariffs is the 

reorganization sdivision of 

Regulation into two separate 

responsible for the analysis 

with the Commission monitorin

the Bureau of Agreements per

conformity with applicable Co

tration of special projects in

commerce and the processing 
The Office of Financial An

bureau The location of accoun

domestic tariff filings is expe

of domestic rate problems since 

rate cases consist of contested 

The transfer of the agencs 

also lends that bureau necessary 

special projects particularly 

carrier law P 95 483 The 

Tariffs will possess the strong 

essential to the successful adm

statute

During the past fiscal yea

foreign tariff filings 18871 

offshore trades and 7120 page

o The Bureaj of Investijtion and 

of Hearing Counsel and Enforcem

interface between the Commisss

The Bureau systematically 

effort to curtail illegal rebat

shippers consignees and other 

Enforcement is carried out throu

FMC s District offices which a

maritime activities in areas su

Commission settled 47 malpractic

monetary penalties during Fisca
The new Bureau combines 

function of the former Bureau 

claims and prosecution functio

and the major functions of the 

In so doing the Commiss

gative prosecutorial and se

cases The relocation of th

single bureau lends greater c

by which the Commission audits 

investigates possible violatio

which have been documented

Bureau attorneys also pa

forma adjudicatory dockets 

are initiated by the Commiss

intervention is perritte in 

der sectior 22 of the sn pi

and Enforcement also furnishes 

projects and often participate

against the Commission

o The Bureau of Certification a

various Federal anti pollution 

oil and hazardous substances 

26000 vessels in its adminis

Water Pollution Control Act F

Authorization Act TAPAA an

13
of 1978 OCSLA The Bureau als

and regulation of independent o

certification of passenger vess

casualties or non performance o

o The Office of Budget and Financ

utilization of the Commission s

The office formulates recommend

and programs prepares budget ju

Office of Management and Budget 

control for agency funds The O

is also responsible for the FMs 

procedures and planning and a

program

o The Office of Administrative Se

for the Commission and its field 

performed include printing dup

services safety programs and r

o The Office of Personnel Managem

management programs including r

training and development positio

and equal employment opportunity

During 1980 the Office est

Abuse Counseling Program by train

prevent sexual harassment of em

The Office has continued its e

existing programs as well as to deve

Civic Service Reform Act of 1978 S

have been developed for Executive 

Grievance Procedures Labor Managem

for NonSES NonMerit Pay Employee

Senior Executives Additional progr

establishment of a Federal Equal Op

targeted emphasis placed upon impro

and women in key Commission occupat


Other areas of significant 

year included the following

The Commission exempted 

from its jurisdiction during FY 

burden on the liner shipping ind

tailor the FMC s regulation to t

and productive

The Commission awarded 30

freight overcharges waived or re

Shipping Act the second highest 

Reparations were awarded to more 

The Commission settled 4

in civil monetary penalties pri

foreign commerce The settlemen

indicating an end to the dispar

sanctions that had previously ex

carriers The Commission had ne

a foreign flag carrier before 19

The Commission ssuccess

Carrier Act virtually eliminated 
carriers in the U S foreign commerc

proceeding under P L 95 483 the Co

rejected several hundred ocean freigh

carrier and established clear guidelin

of the rates of statecontrolled carr

Further efficiency in the FMC s 

from the major reorganization of agen

implemented during Fiscal Year 1980 

structure is geared to meet its statut

greatest possible efficiency effectiv

upon optimal utilization of existing 

The reorganization reflected the 

the agency sfunctions personnel and 

Force on Commission Organization cha

Several major elements of the reorgan

the FMC s priorities or respond to rec

General sJanuary 18 1980 report on 

the following

Creation of an Office of Re

serve as a permanent long range 

the agency more responsive to cha

environment
Establishment of a sepa

to administer the FMC s incre

responsibilities

Development of an Offic

Review which will audit the 

programs and

Creation of a new Offic

Impact to administer the Cos

lities in the areas of energ

protection

During Fiscal Year 1980 the 

attention to upgrading its activi

Act The Commission sanalysis o

heart of its statutory responsi

important steps during the past f

and quality of its section 15 ana

of section 15 agreements afforded 

while becoming increasingly respo

the US foreign commerce

Efficient commercial planning 

commerce depends on consistent an

to a growing conviction that its 

15 agreements are too vague the 
1980 to augment them with new standard

agreements which would be more clear 

national economic objectives

On September 18 1980 the Comm

seven new ocean transportation objecti

agreements could be measured These p

approving section 15 agreements were 

Daniel K Inouye and John Warner s Oc

which was unanimously passed by the U 

session of the 96th Congress The Co

them into a proposed rule designed to 

existing section 15 standards and exp

comment in early 1981

During the past year the Commiss

Docket No 76 63 Filing of Agreements 

Persons Subject to the Shipping Act 

procedures for the processing of sect

increase the timeliness and efficiency 

are handled and standardize all phase

from initial submission to final Corm

to finalize rules requiring more spe
data from proponents of a proposed 

likely tailor its new justification 

standards for section 15 approval t

Other significant Commission a

completion of two major vessel rec

24000 vessels under the provisions 

the Outer Continental Shelf Lands A

establishment of new limits of fina

vessel operators in the U S ocean 

rule scheduled for publication in e

of the Commission sregulation of 

and issuance of several major studi

trade conditions on major trade rou

The Commission saccomplishme

fulfillment of many of the long term 

by the Chairman in testimony before 

Committees in which he pledged to 

making process eliminate the agens 

complete analysis and evaluation o

tion and make the FMC s regulation 

liner shipping industry the US 

2
During Fiscal Year 1981 the C

achievements in its continuing effo

regulation realizes its full potent

stability and harmony in the US o

the Federal Maritime Commission play

national economic objectives

2

The Commission analyzes reports 

that they are not engaged in activit

Commission The impact of these ac

public is also measured on an ongoin

Data regarding the Commission sproc

Year 1980 categorized by type of re

The Commission sanalysis of se

its statutory responsibilities and 

the past fiscal year to improve the 

analyses and to ensure that its eva

maximum protection to the public wh

needs and problems of the US foreig

Efficient commercial planning a

depends on consistent and predictabl

requires that the proponents of sect

proposed agreements will meet a seri

regulatory purpose or secure impor

growing conviction that these criter

during Fiscal Year 1980 to augment t

of section 15 agreements which would 

with national economic objectives

On September 18 1980 the Com

seven ocean transportation objective

could be measured
1 development and maint

and economically sound oce

current and future needs o

2 protection of the rig

by the prevention of discr

deceptive practices

3 encouragement of the 

which are commercially fea

to shippers and consignee

4 encouragement of expo

and maintain a favorable i

5 comity with nations e

6 assuring the maintena

service responsive to the 

in the waterborne foreign 

7 encouragement and sup

which furthers the nationa

of fuel for energy conserv

carriers rationalization 

These potential new criteria fo

culled from S 2585 Senators Daniel 

Shipping Act of 1980 which was una

the last session of the 96th Congre

into a proposed rule designed to sup

standards and expects to issue the r

During the past year the Commi

No 76 63 Filing of Agreements by C

to the Shipping Act 1916 adopting 

of section 15 agreements in order to 

with which proposed agreements are h

agreement review process from initia
The FMC also plans to finalize rules 

supporting data from proponents of a 

will likely tailor its new justificat

for section 15 approval that are ado

As part of its continuing effort

the Commission is also limiting its r

it is clearly necessary and productiv

Commission continued its activities u

Provisions of the Shipping Act 1916 

exempting four types of agreements fro

of section 15 At year s end the Co

twelve additional categories of sectio

jurisdiction The FMC also testified 

Act of 1980 which was signed into la

maritime collective bargaining agreem

Even in areas of maritime activi

essential the Commission has taken s

imposed on the liner shipping industr

its General Order 14 on June 4 1980 

shipper requests and complaints be fil

year This reduction in the filing r

expected to reduce the workload burde

required to file such reports while a

with grievances
Tariff filing methods have not k

rapid technological advances in recen

however several initiatives have bee

tariff filing process

Electronic Transmission and Filing of 

Special permission authority was 

Conference on behalf of Computerized 

processing equipment at the Commissio

tariff material through the utilizatio

offers users the advantages of the sp

permanence of a hard copy filing and 

workload with respect to the double 

hard copy filings This technology a

quality of tariff material filed thus 

due to typographical formatting and 

Several carriers have had equipm

tariff pages and data for inclusion in 

have been transmitted back and forth 

the Commission sheadquarters in Was

pages is scheduled to commence in late 

exploring methods for expanding its u

Consideration is also being given 

modernizing tariff filing procedures 

2
class rates throughout the industry 

will be carefully evaluated as part of 

tariff filing rules regulations and 

1981

Microfilm Program

The Commission is currently in th

tariff files to a combination of micro

to convert tariffs to film was based o

microfilming will more adequately serv

reduce delays in access conserve valu

tivity of Commission employees who pre

time to the manual upkeep of these rec

Temporary Tariff Filing Regulations

Other significant Commission act

US foreign commerce included the iss

agency scurrent temporary tariff filin

considering the promulgation of rules 

cancel regulations contained in Genera

temporary tariff amendments This rul

petitions filed by several ocean carr

efforts to seek more efficient methods 

proposed rule appeared in the Federal 

comments elicited and a draft final ru

3
Interpretative Rule With Respect to Bul

When the Shipping Act was enacted 

breakbulk The major competition to l

operators The tariff filing requireme

limited to liner operators and excluded 

count

The age of containerization has ad

owing to the containerization of bulk c

exempt from tariff filing requirements 

the Commission has proposed an interpre

cargo which is otherwise exempt under s

loaded into a container the cargo lose

to the tariff filing requirements of th

The Commission has received extens

pretative rule and will soon issue a fi

treatment of containerized bulk carg

Docket No 79 95 Cancellation of Tar

In late 1979 the Commission issue

670 tariffs on file in the US foreign 

failure to comply with General Order 1

Many of these tariffs were no long

carriers failed to respond to the new 

the revision of GO 13 On April 23 

500 tariffs for failure to comply with 

tariffs were inactive

3
Notice of Proposed Rulemaking Concernin

To Used Household Goo

The Commission has also entered in

1 exempt from its tariff filing requir

hold goods and personal effects by non 

and 2 require that the rates on used 

established by vessel operating common 

The proposed rule appeared in the 

Comments on the proposed rule from seve

next two months expressing a broad spe

currently analyzing the comments and dr

Commission sconsideration

Aggregate TimeVolume Rate Contracts

Finally the Commission has issued 

regulations applicable to aggregate tim

principle of aggregate or time volum

contracting shipper with a lower rate t

of the same commodity in exchange for a 

of cargo usually stated in revenue ton

shipped over a specified period of time

The Commission spreliminary findi

rules and regulations do not accommoda

therefore statutorily restricted 2 u

prejudice may be inherent in the timevo

3 timevolume rates are designed to 

3
specific Commission approval even if 

ratemaking could allow carriers to t

contemplated by dual rate contract s

The proposed rule was published 

with comments due later in the year 

policy issues raised in this proceed

Terminals

Marine terminals operated by pr

are currently subject to the Commis

in connection with common carriers b

terminal operators and other persons 

the lease of property dock or berth

for carriers may require the approv

the Act

The advent and subsequent rapid 

have generated numerous agreements b

an effort to reduce regulatory burde

to review certain types of terminal 

exempted from the FMC s regulation u

Docket No 8032 Filing of Agr

by Water in the Foreign Commerce of 

Initiated on May 27 1980 it propose
involving terminal facilities located 

approval requirements of section 15 

was adopted by the Commission and took 

Significant Co

Affecting the US 

Monitoring of Controlled Carriers

When the Ocean Shipping Act of 19

into law on October 18 1978 the Com

the predatory pricing practices of sta

foreign commerce

The staff implementation of the 

and classification of all state contro

commerce of the United States The Co

authority of section 21 of the Shippin

registry ownership and control of ce

foreign commerce On the basis of the 

independently developed by the Commis

fied as state controlled carriers subj

the end of Fiscal Year 1980 As new c

United States the service of addition

as needed

The Commission also monitors chan

of carriers their entry and exit from 

within conferences to which controlled 

of those carriers which may become su

those which may become totally or par

3
Section 18c3of the Act w

authorizes the Commission to reques

of justification which details the n

rates charges classifications rul

particular trade Utilizing this a

several rate justification inquiries 

the rates charges and practices of 

reasonable in accordance with the c

Act

One of these rate justification 

March 2 1979 Order of Suspension an

Shipping Company FESCO in Docket N

Company in which FESCO was ordered 

freight rates in the USAustralia N

and USFar East trades should not 

affected rates were suspended effect

while the Commission analyzed FESCO s

whether they should be disapproved 

original rates under suspension were 

investigations into the rates utilize

Coast trade Docket Nos 79 104 and 

subsequent disapproval of several ad

Since the Commission commenced a

law requiring state controlled carr

privatelyowned competitors predato

in the US foreign commerce has virt

3
One of the most significant restr

carriers contained in PL 95483 is th

shall not without special permission 

less than 30 days following the date o

consequence of this requirement fifty

from controlled carriers were received 

during Fiscal Year 1980 Fortytwo of 

two were withdrawn and one was pendin

As an adjunct to the administratio

incorporating the strict tariff filing 

law have been included in the Commiss

Filing Tariffs By Common Carriers In T

46 CFR 536 One of the most significa

when a state controlled carrier srate

of the rates it files to replace them 

them to the rates of the USflag and 

operating in the trade

Enforcement Activities

The Commission continued its acti

and other malpractices in the US for

A description of the Commission sachi

rebating and standardizing its monito

prosecutorial activities is contained 

the past fiscal year

3
Self Policing

The Commission srevised rules e

the adequacy of conference neutral bo

January 1 1979 General Order 7 R

rate making agreements except those 

provisions describing the methods and 

authorities to investigate adjudica

The validity of the Commission sneu

affirmed in a decision by the US C

On September 30 1980 there we

subject to the requirements of Gener

agreements were in full compliance w

majority of the agreements which were 

conferences which had participated in 

the Corrissior srules Now that the 

of GO 7 the Cor ssion expects to 

Pooling and Equal Access Acreeeents

Pooling agreements provide for 

revenues by a number of carriers in 

to benefit from the increased efficie

of vessels equipment and other res

other features relative to service e

agreements Equal access agreements 

carriers maintain access to cargo wh
of the reciprocal trading partner thro

or other restrictions Several sectio

equal access provisions

At the end of Fiscal Year 1980 

equal access agreements and nine com

effect The preponderance of these a

trades and are designed both to reduc

market entry imposed by several of As

energy conservation rationalization 

ment accruing from various pooling ar

affect the US ocean commerce with A

Pere The remaining five pooling agr

the IsraelUS North Atlantic Pool N

No 10116 the US Atlantic Japan 

Atlantic WINAC Pool No 10286 an

No 10333

During Fiscal Year 1980 the Com

regarding pooling and equal access ag

access agreement No 10064 was gran

1985 The Calcutta and BangladeshUS 

through January 1 1985 The Commis

carriers to the BrazilUS Gulf Pool 

reconsideration of the Commission sd

fiscal year
Two of the pooling and equal acc

Argentine trades were approved while 

ArgentineUS Gulf and ArgentineUS 

were approved pending an investigation 

the two Japanese pools were approved 

modifications and institution of a Co

determine whether bloc voting by Japan

what if any impact it had on conferenc

Space Charter Agreements

Space charter agreements involve 

or slots between or among ocean carrie

designed to ensure that a carrier is a

that which would be otherwise availab

agreements in effect at the end of Fis

arrangements involve the trade between 

three agreements involve the trades be

Mediterranean and Europe respectivel

Several space charter agreements 

during Fiscal Year 1980 The Commiss

space charter arrangement in the USE

Commission proceeding Docket No 77 7 

December 28 1979 The Commission als

chartering agreements in the USJapa

3
but ordered an investigation of space 

8052 The Korean agreements were giy

investigation

Non Exclusive Transshipment Agreements

Agreements which provide for the 

on a non exclusive basis and for which 

immunity provided by the Commission s

Act 1916 may simply be filed with the 

pursuant to the requirements of the Cos

524 which represents an exemption fro

review process These agreements must 

acceptance by the Commission does not 

has been in effect since 1968 and more 

amendments have been filed according to 

During the last three years the 

has escalated significantly from an a

agreements in Fiscal Year 1979 and 330 

addition the frequency of the filing 

risen from an historical level of 25 a

to non exclusive transshipment agreeme

In attempting to cope with these 

of these agreements was centralized in 

to January 1980 A comprehensive study 

4
in mid1980 for the purpose of evalu

General Order No 23 and recommending 

further exemption from Commission fil

Collective Bargaining Agreements

Two major developments during F

Commission sjurisdiction over mariti

FMC s original involvement with mari

Supreme Court s March 1 1978 decis

Pacific Maritime Association 435 US 

collective bargaining agreements as 

the filing requirements of section 1

the public arbiter of competition in 

However the Commission subsequ

maritime labor and management was a 

should not interfere The Comrissio

Docket No 78 11 Exemption of Colle

1980 publication of a final rule Ge

of collective bargaining agreements 

employer collective bargaining units 

of section 15

The Congress and the Administra

minimal regulation over the collectiv

the President signed the Maritime La

96325 This legislation which wa
amends the Shipping Act 1916 in thr

to exclude maritime labor agreements 

from the definition of those agreeme

section 15 approval requirements It 

that assessment agreements for the fu

benefit obligations on other than a u

cargo handled or the type of vessel o

approved upon filing with the Commis

procedures and time limits to be obse

the filing of a complaint against any 

PL 96 325 adds a new section 45 to 

provisions of the Shipping Act and th

not apply to maritime labor agreement

agreements described above

Exemption of Husbanding Agreements

On June 4 1980 the Commission 

exempt certain husbanding agreements 

persons subject to the Act from the f

15 of the Act The Commission propos

agreements which provide for routine 

jurisdiction and adopted a final rul

Commission sfiling and approval requ
Intermodal1sm

Intermodal transportation invo

involving two or more modes of tran

rates and charges for intermodal tra

the Federal Maritime Commission and 

jurisdictional conflicts have arise

the laws administered by the two ag

and the Interstate Commerce Act of 

regulation of intermodalism

The FMC and ICC are consequen

overlapping jurisdiction For exam

for the purpose of promulgating reg

Carrier Act of 1980 This section 

into contracts with a rail carrier 

subject to the Shipping Act 1916 

Commission is participating in the 

existing statutory requirements of 

By the end of Fiscal Year 198

had intermodal authority Twentye

their authority by filing intermoda

Bunker Surcharges

Bunker fuel has become a major 

The volatile nature of world fuel o
costs has prompted ocean carriers to i

expenses through increasing reliance o

In its continuing effort to monit

inquiries during the fiscal year to th

freight conferences questioning the le

it had been learned that the same carr

ports under one agreement and South At

different levels of bunker surcharges 

The responding conferences explain

surcharge levels was attributable to t

upon conferences which maintain a dual 

the North Atlantic conferences are obl

notice whereas the South Atlantic conf

since they do not have a dual rate sys

Conferences subsequently achieved pari

probe was discontinued

The Commission intends to continue 

oil prices with the dual objective of 

paying increased rates and the needs o

prices

Currency Adjustment Factors

The Commission instituted a ruTem

requirements for common carriers publis

Docket 8079 in the foreign commerce 

4
procedures proposed by the maritim

to currency fluctuations on short 

unwarranted currency surcharges ar

Agreement Audits

During the past fiscal year 

agreement audit program conducting 

Coast Australasian Tariff Bureau A

Australia and New Zealand Conferen

States Australian New Zealand Disc

of the audits was to

1 determine whether t

has been within the par

2 determine whether t

approvals have been full

Commission at the time o

3 determine whether t

exercised in any manner 

the time of approvals

4 determine whether l

serve to satisfy partici

5 determine whether c

their present form is co

decisions general orde

6 acquire additional 

action of the conference

7 identify potential 

A preliminary audit report ha

transmitted to the various agreeme

these comments a final report wil
summarizes all comments discusses a

Commission sstaff and determines w

in a manner consistent with the Coms

Other staff audit work involved 

agreements which may be dormant or i

with operating authority only in the 

agreements not currently being utiliz

dormant agreements has been inaugur

processed for cancellation by the C

Significant 

During Fiscal Year 1980 develo

the Federal Maritime Commission with 

regulatory goals and objectives On 

to reduce the regulatory burden it 

the other hand the increased volat

routes in the US foreign commerce 

Pacific required increased regulato

The Commission currently has no 

gation to the fullest in order to p

US ocean commerce and the prospe

that the Commission sconflict in fu

likely continue during Fiscal Year 
ANALYSIS BY TRADE AREAS

US North AtlanticEurope Trade

During Fiscal Year 1980 the 

extensive changes in traditional s

stability of the trade The trade 

operators Atlantic Container Lin

Hapag Lloyd Sea Land Seatrain a

Continental North Atlantic Westbou

from the conference February 1 19

lost to non conference carriers 

had completely withdrawn from the 

Lines absorbing a major portion of 

also withdrew from the Continental 

and the trade late in the year

Following Seatrain swithdraw

to set their own rates independen

This resulted in months of active 

400 commodities a day The recess

the US dollar contributed to the 

ing increase in eastbound tonnage 

rate structures to be depressed by 

The substantial capacity incr

trade since Fiscal Year 1979 coup

Europe led to an increasing trade 
As westbound rates continued to decl

increase was imposed in mid year th

that carriers in the North Atlantic 

operations by raising outbound rates 

The Commission believed that the res

serious potential threat to US exp

The Commission therefore served 

information from all carriers operat

ing their rate actions Receipt of 

to determine whether rates in the ea

prejudicial or discriminatory to US 

competitors in violation of section 

whether the rates assessed in the ea

unreasonably high or low as to be de

States in violation of section 18b5

The Commission expects this informat

scope and magnitude of alleged rate 

USEast Asia Trade

The USEast Asia trade consis

the United States and Japan Korea 

approximately 77 percent of the tota

in 1979 US exports to East Asia 

1978 to 1150 million short tons in 

declined from 965 to 897 million s
The USEast Asian trade is cha

tors most of which offer containerize

the trade providing a total annual c

increase of 20 percent over the 1979 

of approximately 138 79 000 cubic fe

Although the amount of container 

in the volume of cargo moving on the 

the reduced purchasing power of the US 

restrictions on imports from the Far 

and declining cargo levels has resulte

and most North Pacific carriers have 

trade than in the westbound trade

The additional capacity supplied 

cargo share of conference members T

been attributed to rate cutting by in

of several developing nations to incre

As a result Sea Land resigned from t

Pacific trade in early 1980 Increas

levels and Sea Land sresignation fro

fierce rate competition between the i

despite the present overtonnaging and 

still plan to further expand their ca

USSouth American Trade

The USSouth American trade w

and the most rationalized trade in th
dominated in that region by trade wi

Ecuador Peru and Venezuela

US liner trade with South Ame

shipping policies of several large S

national shipping lines Many South 

promotional policies including gove

sharing in order to ensure the deve

Most of these nations have passed law

commerce for carriage in their nation

In response to these policies 

American shipping lines have frequen

equal access cargo sharing agreemen

Although the USSouth American 

to participate in an international c

the least containerized Fully cont

account for only three percent of to

level of containerization can be attr

lack of containerizable commodities 

resistance of organized South America

inland transport infrastructures and 

make it unprofitable for shipping lin

would be required to convert to fully 

of many South American national flag 

than fully cellular vessels has enha

containerization of the South America

5
In its South American Trade S

rate increases in the heavily ratio

than in many other comparable trade

historical assumption that the res

agreements automatically leads to h
DOMES

Cancellation of Inactive Tariffs

On September 14 1979 the Comm

in the domestic offshore trades of its 

which had been classified as inactive 

the tariffs to brine them into confor

Commission srevised General Order 38 

54 of these tariffs which had been fi

Conmission of their inactivity in the 

lation or who failed to respond to the 

show why the apparently inactive tarif

Significant C

In the Dome

Bunker Surcharges

Two hundred and seventy bunker s

domestic ocean commerce since June 6 

Domestic Circular Letter No 1 79

On July 16 1980 the Commission 

to expire as scheduled on September 3

that existed in early 1979 no longer e

that were established at that time we

were advised that previous regulations 

increases in their tariffs were again 

5
of three percent or more reverted to 

required under 46 CFR 502 and 46 CFR 

The Commission intends to publi

special permission applications for 

notice in order to meet emergency co

future The proposed rules will pro

not an emergency warranting a surcha

between the expiration of Circular L

new rules carriers may request spe

such portions of existing requiremen

Special permission requests will be 

Any carriers filing bunker surc

which were accepted prior to Septem

single discrete general rate increas

rate structure without further just

has not decreased during the period 

such a general rate increase is str

which the bunker surcharge had prev

must be filed on 30 days notice

Significan

In the US Dom

ANALYSIS BY TRADE

US MainlandPuerto Rico Virgin Isl

Strong competition continued in 

1980 The Puerto Rico Maritime Shi
rate increase in the US Atlantic and 

effective December 1 1979 and filed 

Puerto RicoVirgin Islands service a

December 1

Following PRMSA slead Trailer M

general rate increase in the US Atla

to become effective December 15 1979 a

GCML also filed a 15 percent general 

January 1 1980 The Commission determ

the proposed increases and they became 

However Sea Land Service Inc 

rate increase to become effective Janu

supporting data and protests received 

increases should be placed under inves

matter which represented an increase o

pending completion of the investigation 

December 26 1979 as Docket No 79 102

SeaLand s proposed 25 percent ge

Virgin Islands trade was allowed to go 

subsequently decided to investigate the 

Islands trades as well but since these 

could not be suspended

By adoption of an Offer of Settlem

ultimately permitted Sea Land to raise 

5
a point not to exceed 21 percent of 

out requiring further justification 

granted special permission to reduce 

trade tariff to a level not to exceed 

were in effect on December 31 1979

Pursuant to the terms of the se

fifteen percent general rate increase 

each individual rate item to reflect 

1980 Sea Land filed further amendme

increase its rates an additional 52 

allowing Sea Land a total increase o

Late in the first quarter of FY 

substantially increased demurrage cha

PRMSA Sea Land and TMT also proposed 

to dry cargo and tank trailers of ap

1980 The Commission determined to n

these increases since they appeared 

means for carriers to recover their t

of cargo to consignees

On March 20 1980 Trailer Marin

that it was taking over the operation

Both carriers are owned by Crowley M

the takeover which became effective 

was more widely recognized and the co

accounting and record keeping
West Coast Hawaii Trade

Matson Navigation Company publishe

October 5 1979 at US West Coast po

in response but the wharfage increase 

overall increase in revenue and was al

Matson subsequently filed another 

West Coast ports which was also prote

wharfage increases allowed Matson to p

by the West Coast public port tariffs 

overall rate increase of 162 percent 

producing a total increase in rates of 

West CoastAmerican Samoa Trade

Farrell Lines Incorporated Farr

PITL and Polynesia Line Ltd PLL 

Samoa trade were allowed to institute 

their respective tariffs effective Ma

5
5

CERTIFICA

The FMC s Bureau of Certificatio

to ensure financial responsibility fo

passenger vessel operations in the US 

activities of various participants in 

the public from unscrupulous trade pr

Primary responsibilities include 

1 The operators of foreign and 

financially able to meet specified le

they may create

2 the operators of foreign and 

gers at US ports are financially ab

or injury or from non performance of 

3 persons engaging in the busin

export commerce of the United States 

Financial Respons

The Commission administers the v

of three water pollution statutes th

the Trans Alaska Pipeline Authorizatio

Lands Act Amendments of 1978 Under 

operators are required to demonstrate 

specified limits of potential liabilit

damages resulting from spills of oil a
who are unable to comply with the Com

s

are prohibited from operating in US 

The Commission smajor objective 

financial loss resulting from spills i

parties to vessel operators and their 

is to encourage prompt cleanup after a 

damage

In order to meet the Commission s

vessel operators must submit to the FM

of insurance surety bonds guarantees 

reimbursement to the US government a

accident involving pollution The Com

Responsibility Pollution for vessels 

requirements and under a related prog

US Customs Service and the Panama C

that certificates be carried on board 

to carry a certificate results in auto

twenty six vessels were detained beyon

compliance with the Commission scerti

certification responsibilities are ext

were 24754 vessels of all types and f

Two major vessel certification pro

1980 The Commission completed recert

the Clean Water Act of 1977 which ame

Act Because the 1977 amendments incre

5
operators who discharge pollutants 

responsibility providing coverage fo

and processed by the Commission A 

program required for vessels transpo

Shelf was also completed This prog

Continental Shelf Lands Act Amendme

the President on February 26 1979

Cleanup cost reimbursements to 

during the past decade Additional 

vessel operators and their underwrit

involvement thus substantially relie

cleanup costs for accidental spills 

Passenger Vessel Fi

The Commission sjurisdiction o

involves the administration of sectio

statute applies to owners chartere

vessels which have berth or stateroom 

and which board passengers at US p

Vessel operators subject to the 

maintain on file with the Commission 

meet statutorily prescribed amounts 

injury to passengers and crew and to 

performance of a scheduled voyage or 
Vessels covered by acceptable evid

issued Certificates of Financial Resp

which must be presented for examinatio

Over one hundred vessels have been ce

in the US ocean commerce under PL 

the Commission received 55 applications 

There were eleven new applications for 

applications for casualty certificates 

existing certificates

On April 7 1980 the Commission 

coverage required of passenger vessel 

for indemnification of passengers in t

cruise This increase reflects the in

insurance rates which has occurred sin

established by the Commission Since 

have doubled and the Commission deeme

financial liability needed to protect 

take effect on February 20 1981

As an ancillary responsibility t

informally assists cruise passengers w

passenger vessels operating to and from 

ments but the FMC has no statutory au

these complaints

6
Independent Ocean 

Section 44 of the Shipping Act 

for the licensing and regulation of in

ocean freight forwarding industry is c

who serve export shippers by arranging 

common carriers for a fee Because fo

carriers for their services they are 

connections in order to prevent unlaw

A Congressional finding in 1961 t

forwarding firms in order to receive i

section 44 The Congress also found t

would serve to eliminate unqualified a

practices were not conducive to a favo

bility of a forwarder is assured by a 

be maintained on file with the Commis

The reform of General Order 4 wh

freight forwarders was the greatest c

freight forwarding area during the pas

General Order 4 was originally issued 

industry experience indicated a need f

aspects of the FMC s regulations in th

and technological changes in the forwa

it serves In order to meet this need 

Year 1980 to develop comprehensive rev

6
In January 1980 the FMC issued pro

of Independent Ocean Freight Forwarders 

to provide necessary modernization and c

governing the forwarding industry By t

had heard oral argument on the major iss

had nearly completed preparation of a fin

objectives

1 Reduced government regulation o

freight forwarders shippers and c

2 Continued protection of the con

from unscrupulous forwarding activ

3 Increased consistency in the tre

applications denials suspensions 

4 Modernized freight forwarding r

needs of the liner shipping industr

a favorable export climate

5 Clarified relationships between 

carrier clients respectively

These goals will be reflected in a 

end of calendar year 1980 which revises 

of forwarders including regulations ad

officers treatment of branch offices b

denials and revocations anti rebate c

deductions of compensation

62
The Commission slicensing acti

the drafting of new freight forwarde

Commission received 265 applications 

licenses in addition to 98 applicati

hundred and nine of these application

were withdrawn Another 98 applicati

deficiencies which prevented process

revoked Revocations usually occur 

surety bonds required by the Shipping 

On site compliance investigation

effort to ensure that independent oce

provisions of the Shipping Act and a

licensed During the past fiscal ye

following results 1 75 warning let

with minor infractions directing the

violations 2 ten formal proceeding

revocation or suspension action was w

of violative activity were referred t

assessment of appropriate civil pena

Other activities during the year 

through which freight forwarding cou

transfers of licenses At the end of 

forwarders operating under Commission 

6
The formal proceedings summariz

activity involving freight forwarder

o In Docket No 79 61 Rene 

Dispatch Services Indepe

No 1381 the Commission fo

name and license number to 

the licensee for the perfor

services and that the lice

carriers that it had perfor

to receive compensation an

ocean carriers The Comm

warranted a sixmonth susp

o In Docket No 79 94 A11 F

Independent Ocean Freigh

Commission found that the 

of the Shipping Act 1916 

activities on six separate 

of 5000 for those violat

that in view of mitigating 

applicant sprevious busine

attempt to deceive or misle

which did not unjustly enr

was fit willing and able 
o In Docket No 802 Avion 

Ocean Freight Forwarder Lic

found that the applicant h

ocean freight forwarding w

in violation of section 4a 

and imposed a civil penalty 

determined that the continu

Shipping Act violations de

unfit to be licensed
FINAL DECISIONS 

During Fiscal Year 1980 the Co

average of nearly one a day The FMs 

last year srecord of 252 final decis

of 193 decisions issued during FY 78 

Commission has issued a total of 791 

cases decided in the previous fifteen 

The Commission issued decisions 

special docket applications 191 info

claims against ocean carriers and fo

issued in the latter two categories r

Oral arguments were heard in two 

proceedings were discontinued or dism

decisions in formal proceedings becam

review and one proceeding was remand

The Commission issued over three 

foreign commerce during FY 80 Some 

cases included the following

Docket No 79 10 Rates of Far 

April 1 1980 In this first proce

1978 PL 95483 the Commission di

rates of the Far Eastern Shipping Com

carrier as unjust and unreasonable a

applicable to future cases under this 

6
subsequently applied in Docket No 

Eastern Shipping Company in the Ph

249 August 5 1980 where additio

were disapproved as unreasonably lo

virtual elimination of predatory ra

the US foreign commerce during F

Docket Nos 7921 through 79 4

Provisions for Adequate SelfPolici

19 SR 957 October 17 1979 

self policing requirements for sec

January 1 1979 These show cause 

which failed to include the new pro

The Commission subsequently disappr

they were inadequately policed M

appealed the Commission snew self 

of Appeals upheld the FMC s efforts 

foreign commerce by placing a grea

effectively police themselves

Docket No 7946 Expedited S

Fuel Costs in the Foreign Commerce 

October 16 1979 The Commission 

surcharges instituted by carriers e

under section 14b of the Shipping 
were the result of extraordinary con

were beyond the carriers control and 

addition the inability to assess the

unduly impeded and delayed the carri

Docket No 7975 Interpool L

Trans Ocean Leasing Corporation v P

Conference and Member Lines 19 SR 

action in this proceeding was designe

Rules of Practice and Procedure The 

Complainant sfailure to respond to d

separate orders of the administrative 

adherence to agency procedure is nec

and ensure the prompt and orderly con

Docket No 7811 Exemption of 

1579 April 10 1980 On April 10 

46 CFR Part 525 to provide for th

agreements between labor unions and m

units from the filing and approval re

Labor Agreements Act of 1980 was subs

incorporating into the FMC s governin

maritime labor agreements from sectio

government regulation of the collectiv

6
Docket No 7995 Cancellation 

Regulations 19 SR 1662 April 2

Commission ordered over 350 carriers 

show cause why 600 of their tariffs 

be cancelled for noncompliance with 

on January 1 1979 A majority of t

the Respondents contested the propos

this proceeding the Commission was 

its foreign commerce tariff records

Docket No 7951 Procedures f

1713 May 14 1980 During Fiscal 

46 CFR 547 for implementing the 

4321 et seq These new procedures 

by the Council on Environmental Qua

and reflect the FMC s efforts to ens

commerce have no adverse impact on t

Docket No 7760 New York Fre

No 570026 19 SR 1073 Novemb

disapproved an amendment to a confere

the conference to continue setting in

East via US Atlantic and Gulf port

inadequately justified because the c

authority for several years without 
no competition for intermodal traffic 

proposed intermodal routings which w

an unrealistically broad geographic 

Docket No 7611 JapanKorea 

Intermodal Dual Rate Contract Ag

1229 December 3 1979 This proce

most important cases involving interm

The Commission disapproved amendment

conference seeking to include interm

contract when the conference lacked 

an intermodal service Similar inter

conference on the condition that shi

signing a contract which obligated e

through intermodal shipments or bo

the Department of Justice and other 

jurisdiction over intermodal dual ra

Docket No 7713 First Intern

Overseas Services Inc 19 SR 1

upon the need to file a tariff for c

the Commission held that the failure 

engaged in foreign commerce to file 

of the Shipping Act 1916 rendered 
unlawful The shipper was awarded rep

assertion that the fair value of the t

the nonvessel operating carrier scos

Docket No 7986 JapanKorea 

Pertaining to Chassis Availability and 

are not Made Available 19 SR 1370 

chassis for container cargo continued 

industry during the past fiscal year 

tariff rules of the JapanKorea Atla

to chassis availability and the assess

unavailability were violative of secti

1916 In particular the Commission 

containers at greater than compensato

portwide unavailability of chassis to 

Docket No 77 56 West Gulf Ma

Board of Trustees of the Galveston W

The respective liabilities of shipper

in the US ocean commerce continues 

Commission found unreasonable under s

tariff provisions which 1 would r

negligence 2 would permit applicat

to the account of another user and 3 
litigation expenses if the port succe

the port to pay such expenses if it u

Commission upheld a terminal tariff r

stevedoring companies obtain general 

Docket No 7949 Intervention 

October 17 1979 This proceeding 

of Practice and Procedure 46 CFR 

intervention in Commission proceedin

the rights of affected parties while 

procedural delay through the particip

after the Federal Rules of Procedure 

intervention as a matter of right and 

Docket No 7961 Rene Lopez an

Services Independent Ocean Freight 

February 25 1980 In one of the 

proceedings during the past year the 

independent ocean freight forwarder f

the forwarder permitted its name and 

employed by it for the performance o

Commission decisions involving 

governed by the recent implementation 

which provides for expedited domestic 
of those portions of rate increases fo

new rules under the Commission sGene

submissions and justification for rate 

and continuing controversy over the ap

analyzing bunker surcharges Significa

the following

Docket No 7846 Amendments to 

Water in the Domestic Offshore Trades 

proceeding achieved a comprehensive re

46 CFR Part 512 in response to the 

the Commission to establish guidelines 

return for carriers operating in dome

magnitude of the project a special tas

tailored to the specialized types of o

that must be evaluated in determining t

under the Intercoastal Shipping Act 1

Financial Exhibits and Schedules f

in the Domestic Offshore Trades The C

for non vessel operating common carrier

Part 514 In furtherance of its regu

eliminated annual reporting requirement

necessary to establish reporting require

73
reasonableness of NVOCC rates only 

the Intercoastal Shipping Act 1933

Docket Nos 79 55 7984 7992 

Bunker Surcharges in the Hawaii Tra

response to dramatic increases in th

procedures for emergency rate increa

permitted carriers to pass through 

In these proceedings the Commissio

increases were strictly limited to 

develop methodologies for evaluating 

surcharges

Docket No 79 102 Sea Land S

Increase in the Puerto RicoVirgin 

1980 In this proceeding the Com

compromise settlement of disputed r

trades pursuant to the requirements 

were developed to protect shippers 

reducing the regulatory burden on b

economy


Reefer Express Lines v FMC USA 

Rederi v FMC USA DC Cir No 78 22

approval in Docket Nos 78 51 and 7852 

northbound ArgentinaUS Atlantic and G

voluntarily dismissed and a settlement 

for approval in AS Ivarans Rederi The 

settlement shortly after the close of th

Dart Containerline Co v FMC USA 

is a challenge to the Commission sdecis

Dart s practice of absorbing rates for i

Wilmington North Carolina which it doe

Hampton Roads area which it does viola

1916 The case was argued on September 

Puerto Rico Maritime Shipping Auth

This case challenges an ICC order accep

jurisdiction over joint motorwater rate

has intervened in support of petitiones

over such rates The matter has been b

for November 5 1980

USA v FMC DC Cir No 79 1299 

the Antitrust Division of the Departmen

the FMC s authority to approve section 

77
permit them to establish rates for thr

with inland carriers regulated by the 

has been briefed and argued and is now 

Seatrain Pacific Services SA 

DC Cir No 801251 consolidated c

of the Department of Justice appealed 

7611 approving amendments to two con

rate contract system in connection wit

offered by ocean carrier members of th

by the Interstate Commerce Commission 

the Court s decision in USA v FMC DC 

USA V FMC DC Cir No 79 132

of Justice has also appealed a Commis

in the trade between Italy and the US 

of the cargo and revenue pool were no

decision

Council of North Atlantic Shippin

v FMC USA DC Cir No 781776 

order in Docket Nos 7317 and 7440 d

of certain carriers in the United Stat

and stripping of containers originatin
of mainland ports by International Long

s

Commission sorder found the tariff pro

16 first and 18a of the Shipping Ac

Shipping Act of 1933 The case is now 

the Commission for summary reversal an

Supreme Court in NLRB v International 

June 20 19801 which remanded to the 

of whether the collective bargaining ag

regulations purport to implement are va

Ryoichi Takazato and Kanematsu Gos

782193 Disagreeing with U5 Distric

enforcement of the Commission sadminis

by petitione Ryoichi Takazato or May 2

International et a 9th fir Ne 735

Rjoichi 1ae rato and the consolidated c

oendinc decision

National Auciatior of Recycling I

79 1267 Petitioners in this case challe

the lawfulness of conference rates on wa

Shipping Act s section 18b5 The pe

failed to meet its obligations under the 

1969 The Department of Justice appeare

position in this appeal The case has b

79
Nepera Chemical Inc v FMC DC 

appealed a Commission order disallowin

that were not timely corrected by a c

section 18b3of the Shipping Act 

Nepera Chemical Inc v Sea Land Se

has sued for actual and punitive dama

negligence to file a corrected tariff 

District Court action and both cases 

New York Shipping Assn v FMC 

Israeli Shipping Co Inc v FMC U

ings were brought to review the Comms

assessments to fund benefits for mari

69 57 On July 30 1980 the Court u

York Shipping Association to make fur

those already ordered and upheld by t

Columbia Circuit see 571 F2d 1231 

Zim s claim for assessment adjustmen

US District Courts

US v Ala Mar Shipping Co SD 

Department of Justice instituted a ci

Commission against defendant Ala Mar 

unlicensed and other illegal ocean fr

US v Open Bulk Carriers Lt

Another civil penalty action was fil

the Commission against five defenda

order to obtain a lower freight rat

with the Commission in violation of 

Act 1916 and Commission General O

and two of the shipper defendants h

a motion for summary judgment again

a licensed freight forwarder
LEG

The second session of the 96th Co

legislative activity in both the House 

totally restructured US maritime pol

socalled Omnibus Bill sponsored by C

Snyder nor S 2585 Senators Inouye an

were enacted When Congress finally ad

bills directly affecting the Commissis

passed and signed into law and neither 

in the maritime reform bills which dom

throughout the past fiscal year

Maritime Labor Legislation

HR 6613 was introduced during th

by Congressman Murphy of New York and s

PL 96 325 on August 8 1980

The Maritime Labor Agreements Act 

to exempt all collectively bargained m

Commission sregulatory jurisdiction w

fund fringe benefit obligations on othe

ment agreements calculated on other tha

filed pursuant to section 15 of the Shi

approved upon filing An expedited form 

to such an agreement is also provided b

83
PL 96325 is designed to respon

industry over the FMC s role in the c

the Commission sreview of maritime la

preserving the Commission sauthority 

of shippers and carriers with regard t

Commissioner Thomas Moakley test

the House Subcommittee on Merchant Ma

again on June 4 1980 before the Sena

Tourism His testimony reflected the 

collective bargaining is a commercial 

government regulation and should be ex

review procedures However the FMC c

removal of existing protection afforde

oversight Commission staff members w

Senate Committees in preparing a revis

strong support in both the House and S

Carter on August 8 1980

Regulatory Reform

The 96th Congress enacted only on

affecting the FMC s activities S 29

signed into law during the past fiscal 

small businesses from excessive govern

both executive branch and independent 

rules on the interests of small busine

only to Americanbuilt ships 5 r

American companies to register under 

goal of 40 percent carriage of US 

HR 4769 was revised early in 

HR 6899 was introduced by Mr Mur

the features of the original bill

The Commission supported those 

the antitrust immunity granted to th

duplicative maritime and antitrust r

shippers councils However the FM

meld the regulatory functions of the 

the Maritime Administration in a sin

proposed consolidation as an effort 

and a threat to tne Comnission sind

Chairman Richard O Daschbach t

Scbcouuittee on March 3 1980 addre

in the revised Omnibus 8ili He urg

President Carter sdesignation of tn

of Commerce as the Administration s

reaffirmation of the primacy of the 

matters The Chairman emphasized in 

mendations thus designated the lead 

and regulatory spheres FMC of US 

necessary distinction between the tw



Draft Domestic Statute to Replace The 

On April 29 1980 the Commission 

under which it regulates the US dome

obtain the greatest possible input from 

Commission sent a letter to shippers c

other groups with an interest in the d

views on various aspects of the Comms

could be reformed

The letter specifically invited co

1 Formation of shippers c

2 Desirability of adding t

control over domestic ra

3 Use of the dominant carr

purposes

4 Treatment of surcharges

5 Modification of existing 

found to be unlawful

6 Regulat 2nof intermodal 

7 Deadifnes for Commission 

8 Bonding and licensing re

9 Termination of FMC regu

domestic commerce

The Commission is currently revie

from affected parties before deciding 

revised statute to the 97th Congress f
AU

J C5

4 O Z

0 o rZ

Wu Yr

W 0 d

UO QJO30WC Q0Z

APP

QG0oUJWZ JZrO0V
Western Navigation Corp

American President Lines

Atlantica SpA

Rebate

AP

CIVIL PENALT

VIOLATIONS OF TH

FISCAL 

Concordia 

General Foods 

The Gailstyn Company 

EL Mobley 

Arlen Realty Development 

Weinstein International 

Mego International 

Rohm Haas 

Chilewich Corp 

Kirsch 

Mark Thomas International 

US Shoe 

Trimodal Inc 

Price Paper Products 

Evergreen 

May Department Stores 

Pappas Industries 

Consolidated Foods 

Spiegel Inc

Midwestern International Corp 
AP

General Mills 

Italian Line 

Pinto Trading Corp 

Waterman S Corp 

Universal Convertors

Importers 

American Export Group

International Services 

Columbus Line 

Karlander Kangaroo Line 

Pacific Australia Direct Line 

Central Gulf Lines 

Trader Navigation Co Ltd

Atlantraffik Express Serv

Independent Forwarding

Service

Gelmart Industries Inc

SCOA International

Phoenix Container Liners

1976 Ltd

Wilcox

Spanish Lines

International Industries

Disc Inc

SCM Corp

International Cargo

Aladdin Industries Inc

Ala Mar Unlic F

Black Decker

YbarraBeatrice
APP

BUREAU O

FIELD INV

FISCAL 

INVESTIGATIONS TOTAL MAL

Pending

September 30 1979 733 

Opened FY 1980 1057 

Completed FY 1980 1002 

Pending

September 30 1980 788 
A

Statistical 

SECTION 15 AGREEMENTS FILED in

Foreign Commerce 

Terminals 

Labor Management 

SECTION 14b DUAL RATE CONTRACTS 

REPORTS REVIEW

Shippers Requests and Comp

Minutes of Meetings 

Self policing of Conference 

Pooling Statements 

Operating Reports 

APPROVED AGREEMENTS ON FILE AS 

Conference 

Rate 

Joint Conference 

Pooling 

Joint Service 

Sailing 

Transshipnent 

Cooperative Working Agency 

Dual Rate Contract Systems 

Non exclusive Transshipment 

Domestic Offshore 

Terminals 

Labor Management Approvals a
FO

Total Number of riff Filings 

Total Number of Tariff Filings 

Total Number of Tariffs on Hand 

Total Number of Tariffs on Hand 

Special Permission Applications

Received During Fiscal Year 198

Granted 121

Denied 27

Withdrawn 15

DO

Tariffs on File as of September 

Domestic Offshore 

Terminals 

Tariff Pages Filed During Fisca

Domestic Offshore 

Terminals 

Special Permission Applications 

Granted 192

Denied 22

Withdrawn 6

Pending 4

Investigation and Suspension Me

Completed 22

Pending 0
APPENDIX E

STATEMENT OF APPROPRIATION AND O

FISCAL YEAR ENDED SEPTEMBE

PROPRIATION

Public Law 9668 96th Congress approve

necessary expenses of the Federal Mari

services as authorized by 5 USC 310

vehicles and uniforms or allowances t

5 USC 5901 5902 Provided that not 

available for official reception and r

Public Law 96 304 96th Congress approve

Supplemental Appropriation Act i98C to 

LIGATIONS ANC UNOELIGATED BALANCE

Net obligations for salaries and expenses 

September 30 1980

Appropriation availability 

Unobligated balance withdrawn by Treas

TEMENT

FOR

OF

THE

RECEIPTS

FISCAL YEAR

DEPOSITED

ENDED SEPTEMBER

WITH THE

30

GEN

Publications and reproductions 

Water Pollution application and certifica

Fines and penalties 

Miscellaneous 

Total general fund receipts