FEDERAL MAR

COMMISSION

28th

Annual Re

for

Fiscal Yea

1989

TABLE OF 

LETTER OF TRANSMITTAL 

MEMBERS OF THE COMMI

SENIOR COMMISSION OFF

I THE COMMISSION

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW 

A Section 18 Repo

B Enforcement 

C Restrictive Trade 

D Surveillance 

E Tariff Automation 

HI SURVEILLANCE AND 

A Surveillance 

B Enforcement 

IV DEVELOPMENTS IN M

A Transatlantic 

B Mediterranean 

C Africa 

D Transpacific 

E Latin America an

F Middle East 

G Worldwide 
V AUTOMATED TARIFF 

INFORMATION SYSTE

A Introduction and 

B Early Studies on 

C First Step in Tarif

D The Shipping Act 

E The Tariff Automa

F Feasibility Study 

The ATFI Advis

G Benefit Cost Ana

Procurement A

H Inquiry on the Fu

The Presolicitat

I Remote Retrieval 

J Contract Award a

K Update on Remo

VI SECTION 18 STUDY

A Section 18 The 

FiveYear Study 

The Shipping A

B Executive Summa

The Section 18 

C Surveys 

D Section 18 Study 

VII THE FOREIGN SHIPPI

A The Statute 

B Actions Taken Un

C Top Twenty US

Trading Partne
VIII SIGNIFICANT OPERA

ORGANIZATIONAL U

A Office of the Sec

B Office of the Adm

C Office of the Ge

D Office of Equal E

E Office of Inspect

F Office of the Ma

G Bureau of Trade 

H Bureau of Dome

I Bureau of Econo

J Bureau of Heari

K Bureau of Inves

L Bureau of Admin

APPENDICES

A Organization Ch

B Commission Pro

C Carrier Agreeme

D Tariff and Termin

Filings and Sta

E Civil Penalties C

F Field Investigatio

G Statement of Ap

and Receipts 

FEDERAL MA

WASH

To the United States Senate a

Pursuant to section 103 e

and section 208 of the Mercha

pleased to submit the twentye

Federal Maritime Commission 

Additionally section VK 

Remote Access March 1990 

to be kept informed on deve

remote access to the Coms

Information System CATFI

MEMB

THE COM

Edward J Philbin

Commissioner

Appointed 1984

Term Expired 1989

R California

Jam

Acti

App

Term 

R 

2 Vacancies a

SENIOR COMMI

Secretary

Chief Administrative Law J

General Counsel

Director Office of

Equal Employment Oppo

Inspector General

Managing Director

Deputy Managing Director

Director Bureau of

Trade Monitoring

Director Bureau of

Domestic Regulation

Director Bureau of

Economic Analysis

Director Bureau of

Hearing Counsel

Director Bureau of

Investigations

Director Bureau of

Administration

THE COM

A HI

The Federal Maritime C

independent regulatory agenc

effective August 12 1961 

Maritime Board was respons

ocean commerce and the p

Marine Under the reorganiz

the United States were se

regulatory and promotional 

with promotion of an adequ

Marine were assigned to the 

located within the Departmen

created Federal Maritime Co

administration of the regulator

The Commission is now 

oceanborne transportation in 

domestic offshore trade of the 

the Shipping Act of 1984 brou

regulatory regime facing ship

foreign commerce of the Unit

B FUN

The principal statutes or 

by the Federal Maritime Com

1984 the ShippingAct 1916 th

the Foreign Shipping Practices 

the Merchant Marine Act 192
The Conunission sre

o Reviewing and 

carriers and ot

foreign comme

conference poo

agreements

o Receipt and rev

regulation of 

engaged in the 

o Protecting ship

foreign comme

restrictive or 

regulations of 

practices of fo

adverse effect on 

o Protecting the 

companies to tra

oceanborne and 

o Regulating rate

regulations and 

ensure that suc

o Regulating rate

and tariffs of 

domestic offsho

o Licensing intern
o

Issuing passenge

financial respon

charterers to pay 

death or to repay 

a voyage or cruis

o

Investigating d

classifications a

carriers terminal 

operating in the 

commerce of the 

The 1984 Act is applica

carriers and other persons en

It exempts agreements that 

Act from the USantitrust la

and Clayton Acts The Co

agreements to ensure that t

antitrust immunity and to 

otherwise violate the 1984 A

increase in transportation co

service

In addition to monitori

the Commission is also respo

carriers as well as those pe

concert fairly treat shippers a

public The 1984 Act p

discriminating among shippe

shipping public The Act als

rates charges and practices 

must be on file with the Com

the rates and charges that 

Commission The Commiss

authority to approve or disa

individual commodity rate lev

except with regard to cert

carriers
The Commission is auth

Practices Act of 1988 under s

Act 1920 and under section 

1984 to take action to ensure 

United States is not burdened 

shipping The Commission m

correct unfavorable shippin

commerce and may impose 

carriers or foreign governm

operation ofUScarriers in th

and that impair access of 

between foreign ports

The 1916 and 1933 Acts 

carriers and other persons e

trades of the United States 

filing and protect against un

manner similar to the 1984 

provides for a more compre

ensure that the minimum and 

common carriers in the dom

reasonable

The Commission carries 

by conducting informal and fo

hearings considers evidence 

appropriate orders and im

Commission also adjudicates 

community the general shi

individuals or interest group
C ORG

The Federal Maritime 

Commissioners appointed f

with the advice and conse

three members of the Com

political party The Pre

Commissioners to serve as 

chief executive and adminis

The Commission sorg

of the Managing Director O

General Counsel Office of 

of Equal Employment Op

General Bureau of Econ

Monitoring Bureau of D

Hearing Counsel Bureau 

Investigations The Manag

in providing executive and 

Commission sOffices and B

are responsible for the Cos

provide administrative supp

In fiscal year 1989 the 

of 224 fulltime equivale

personnel

appropriation

are

of

located

13585 000

in Wa

New York San Francisco L

Houston and Hato Rey Pu

THE YEA

The Commission con

success in addressing its va

fiscal year 1989 Data coll

required by section 18 of 

completed and the Repor

September 20 1989 The E

a high priority with the focu

to detect commercial malpra

investigatory efforts and enfo

penalty collections and the 

on malpractice activities 

continual push for industry 

deter future malpractices and 

foreign waterborne commerc

Additionally the Co

unfavorable foreign govern

including the first case under 

of 1988 Agreement tariff 

reviewed and analyzed to 

Regarding tariffs significant 

aspects of the project to 

including the awarding of a c

the system

This Annual Report is 

byoffice synopsis of each 

accomplishments with separa

particular importance This 

certain of the Commission sm

past year
A SECTIO

This year culminated w

and submission of its Sectio

Shipping Act of 1984 Sectio

Commission to collect and a

Act on rates service in

regulatory proceedings and 

of a volume and mass tariff 

immunity for ports and mari

tariff filing and enforcement 

Data collection was co

third in a series of surveys to 

shipping industry These su

views on the impact of the A

meet with representatives o

Transportation and the Fed

the collection of data and 

Section 18 Study Advisory Co

After completing its ex

Commission issued its Rep

required by the 1984 Act T

and analysis are covered 

Separate parts address the s

The Report also contains se

and independent action and 

Act which might benefit 

adjustment

697page Report

A detailed

is containe

Execu

The Departments of Ju

Federal Trade Commission 

reports on the impact of the 

All four reports will then 

Commission on Conferences i

its comprehensive study of t
B ENF

The Commission sen

emphasize trade malpractice 

agency resources on carriers 

have the greatest impact 

Through the collaborative 

components relevant data 

analyzed investigation and 

then the appropriate enforc

During fiscal year 19

enforcement efforts in the 

Program resulted in severa

steamship lines serving the 

with unlawful rebating enter

the

1

Commission one for 

225 000 Each carrier als

violations Additionally an 

large number of NVOCCs 

resulted in settlements with 

Trans Pacific twelve impor

This effort was facilitated b

with Fact Finding Investig

proceeding which has provid

ongoing investigations in th

The Commission also 

program in the North Atlant

least one other such prog

programs are combined with 

involve malpractices uncove

These activities hav

continually increase its pena

years and to collect a Com

penalties in FY 1989 These 

Commission sfocus on ind
appropriate monitoring of p

deterrents and a vehicle for 

They are essential in enabl

overall enforcement objective

and creating equitable trad

commerce

C RESTRICTIVE 

The Commission contin

restrictive practices that crea

foreign shipping

After considering addit

issued a Final Rule finding th

Government of Peru create

USPent oceanborne trade 

for each voyage made by s

suspended application of the 

political conditions present in 

Based on the comments 

of Inquiry the Commission d

Government of Ecuador w

conditions unfavorable to shi

The Commission requested fu

issued a Notice of Proposed 

conditions unfavorable to sh

Ecuadorian cargo reservation 

impose a fee of 100 0 pe

to Ecuador on Maritima Tra

carrier

The Commission also c

the laws regulations and poli

Taiwan and the People sRep

burden or restrict the opera

carriers including USflag c
the Commission are indic

other carriers are prevent

ancillary activities in these 

orders and notices regard

trade in the USTaiwan a

During 1989 the Co

implement the Foreign Sh

amended its rules impleme

Act and section 13b5of 

made available to the Com

statutes pursuant to the 

initiated its first investigat

certain doing business restr

investigation was pending a

D SU

The Commission ssu

effective adjunct to its 

monitoring of industry tren

enables the Commission 

contrary to the shipping sta

The Commission cont

indepth review of selecte

programs integrate a numb

operator market share data 

analysis of agreements an

parties etc

Among the major proj

a comprehensive monitorin

trades specialized monitor

USHong Kong trades a r

and revenues for certain So

trade data in the Ivory Co
reports on the Far East Medit

support of the Commission s

E TARIFF A

The Commission continu

its program to automate the f

After receiving much t

RFPs the Commission issued 

over 200 potential offerors on 

were received and evaluated 

effectiveness The contract f

Phase II System Design was 

Corporation PRC of McL

Exchange International DX

which had the best technical 

Work on the first phase beg

current schedule calls for sys

begin in February 1990 the 

April 1990 and fullscale ope

competition with private sect

contemplates restrictions on re

to retrieve only rudimentary i

The FMC will need ind

operation especially filers of 

ready for fullscale operation 

phasedin for the changeove

electronic tariffs becoming th

the first few years it will p

paper system to ensure 

accommodate less sophistic

expected

software and

to continue

the attainmen

until 

utilization in the industry
SURVEILLANCE A

A SUR

An integral part of th

the Shipping Act 1916 and 

systematic surveillance of ca

to ensure continuing complia

the requirements of the Cos

Trade Monitoring See Cha

of surveillance programs desi

necessary degree of oversigh

The 1984 Act provides 

filed agreements following a 

agreement is rejected for te

conform with the mandatory 

in sections 5b and 5c o

section 6gof the Act Once 

the Commission is responsibl

the parties concerted activit

with the standards of the 1

responsibility the Bureau of 

to direct its activities tow

effectiveness of its monitorin

During fiscal year 198

refine its programs for the in

trades These programs int

factors including operator m

of major moving commoditie

tariff rates and rate histo

agreementdocument analys
meetings of agreements and 

by the Commission srules a

possible malpractices

A major focus during fis

of the Section 18 Report on 

contains an overview of the 

the areas of containerizatio

patterns in selected trades an

and after the 1984 Act spass

contains 1 changing trend

Europe Asia the Medite

Australia 2 the effect of 

Initiative 3 the number ty

contracts 4 conference ind

issue of conference indepen

and 6 the activities of stat

UStrades Finally the Sect

of carrier agreements filed b

including special reports on s

of the 1984 Act loyalty c

policing

During fiscal year 1989 

produced another in its serie

which provided timely analys

filings conference market sh

key subtrades Additionally 

projects were completed in

reports on the USChina a

detailed analysis and recom

against a major transpacific c

3 a preliminary analysis o

carriers and the significance 

filing agreements with the Co

a report on estimated operat

South American carriers 5 

Ivory CoastUS inbound 

governmentimposed restric
certain cargoes 6 an ana

from certain Taiwan laws a

intermodal operations of

recommendation as req

Commission investigate th

agreement in the USGua

8 special trade reports on 

Caribbean areas in supp

initiatives

Other projects durin

monitoring of activities of t

in the Australian trades 2 

transpacific conference on 

actions on behalf of its m

experienced by certain sh

service contracts with confe

of carrier profiles to assist i

controlled carriers

Major surveillance pr

year 1989 were 1 an 

Commission sTransatlant

program to systematically 

trades 3 the developme

subtrades 4 a report on c

trades 5 the developmen

UStrades 6 the monitor

in the US Mediterranean 

designed to assist the Coms
B ENFO

Under the Shipping Act 

greater regulatory emphasis 

existed under the predecess

functions are performed prima

of Hearing Counsel and B

Chapter VIII J and K

The Trans Pacific Malpr

a longterm program initiated 

of this program is twofold 1 

Shipping Act and 2 to 

environment for carriers shipp

in the Trans Pacific Trades 

involves both informal and fo

of the Shipping Act These inv

in individual and comprehensiv

vessel operating common ca

carriers and freight forwarders 

disclosures of additional Ship

investigation

1989 primarily

and

as

enforceme

a cons

Trades the Commission colle

civil penalties in its history 

anticipated that the TransP

continue to have an importa

year and beyond

Another longterm pro

enforcement initiative which 

1989 Enhanced neutralbody 

the program was impleme

Members of the Commissio

participating neutral body 

members The Commission 

having a substantial bene

community
To meet the needs 

enforcement role the Com

its professional staff T

provide training for profess

Crime Training Program 

Training Center in Glynco 

investigation of fraud relate

for the exchange of ideas r

techniques utilized by oth

has been provided to enha

essential to the Commisss

A joint support prog

Bureau of Customs has res

effort on matters of mu

continued during 1989

The greater emphasis 

activity continues to increa

major violations conducted 

results in greater civil pe

anticipated that sustained 

escalating deterrent effec

industry

DEVELOP

MAJOR USF

A TRAN

Vessel overcapacity 

transatlantic trades Rate le

especially for cargoes mo

relatively soft and carrier 

reportedly Lackluster In a

continues to decline Conce

Maersk Line Maersk whic

and has since emerged as a m

erosion to some extent in t

operates as a conference 

decline in the westbound d

independent Conference 

because of the March 1 19

Container Lines OOCL 

OOCL after years of providi

in both directions of trad

independent carrier in the N

trades with its December 198

Conference

These trade conditions 

continued growth of interm

reasons for a significant deve

during fiscal year 1989 name

Europe Rate Agreement US

011241 and the North Europe

No 202 011242 which bot

USANE covers the trade from 

North Europe the United K
the 3 previous conferences 

AtlanticNorth Europe Confe

Freight Association and the P

NEUSA covers the trade 

Kingdom and Ireland to th

replaces 3 inbound conferenc

Conference NEAC the 

Association and the No

Conference This latest cha

consolidation in the trade sin

of 1984 A previous restruc

involved the consolidation 

inbound rate making groups 

USANE and NEUSA 

content and membership a

One notable exception how

Steamship Company Lyke

carrier for its US Gulf serv

East coast service Lykes do

at present Both new agreem

range of rates and tariff ty

offering of service contracts 

these activities on the par

should also be noted that 

NEUSA it does participat

203 011237 which authorize

to discuss among other m

agreement became effective 

July 16 1989 to reflect the 

Because USANE and 

measure their impact How

indicate that the parties do n

North Europe trade or any 

competitive impact will be 

indirect competition Furthe

implementation the two co

1989 bunker surcharge and 
Increase GRI existing 

prospect of future rate hike

Although the transa

market share reductions 

arrangements the Eurocord

010829 and Eurocorde 1 N

collectively as the Euroco

the parties to meet and disc

did not experience such an 

agreements already consisti

NEUSA and ten non co

previously mentioned OOC

of Independent Container Lin

operator Also although Ly

or NEUSA it has continued 

A midJuly 1989 meet

Eurocorde carriers resulted 

Depending on the subtrad

container ranged from 1

container 150 to 250 W

will stick hinges greatly upo

conference carriers whic

conference rates eg Ev

Mediterranean Shipping Co 

the increases

Besides the consolid

conferences some carr

rationalization arrangement

the extremely competitive n

carriers to share space a

frequencies without a lar

capacity makes rationaliza

following are five exam

rationalization agreements 
The WiIhelmsenACLG

217 011221 permits Wilhelm

charter vessel space to Atlanti

Gulf Container Line GCL B

North American Atlantic por

and points It also authorize

the frequency of those calls 

administrative and operation

The NOSACAutoship S

011225 permits Autoship Inc 

a joint service to charter sp

NOSAC RANGER which is 

Auto Carriers NOSAC a jo

AS KS NOSAC AS Co 

and on any other USflag 

chartered or operated by NO

The Canadian Transpo

Charter Agreement No 217 

oneway space charters by 

Transport Co Ltd vessels in 

in Northern Europe to ports 

States

The American Transpor

Space Charter Agreement No 

to charter space on each 

container equipment and to 

between ports in Northern 

Atlantic coast

The EuroGulf Interna

Charter Agreement No 217

charter space to the other w

individual capacities not exc

have committed themselves 

space aboard each other sve

North Europe and ports on 
Florida and the US Gulf c

and between ports on the A

and the US Gulf coast an

Three other significan

during the year The three 

The BBSLeif Hoegh 

011222 authorizes Barbe

Company AS to discuss r

and practices in the trades 

ports and points in all o

Japan In addition the pa

each other

The American Auto 

Agreement No 207 011226 

Inc and Autoship Inc to e

between USAtlantic ports 

Europe the United Kingd

Atlantic

The TransAtlantic C

is an interconference agree

which permits the partie

implementing action with re

covered by their respective 

parties may act on tarif

contracts relating to co

housekeeping operations s

pr licing and employment o

ancillary equipment
B MEDIT

The United States 

continues to be dominate

encompass virtually all the 

percent or more of the trade s

to US Atlantic and Gulf 

Europe USAFreight Confere

which has a companion pooli

Pooling Agreement No 21

outbound subtrade is served 

Gulf Western Mediterranean 

202 011102 The members 

agreement during the 3rd qua

011234 which authorizes th

charter space The inbou

Mediterranean subtrad

MediterraneanNorth Pacific 

008090 During fiscal year 

there were no significant ind

any Mediterranean trade

The strength of the conf

by the ongoing problem of ex

1985 the USMediterranean 

in excess capacity Certain p

trade contribute to this situa

North European ports for e

have the flexibility of shifting 

Mediterranean ports Conse

Mediterranean area and route

contributes to the creation 

Mediterranean trade Mor

through route for carriers se

Indian subcontinent Servi

adds little time or expense 

service to Middle and Near E

of through service carriers 
aroundtheworld service a

Middle East service operat

Service contracts play

trade during fiscal year 198

the oversupply of available c

low Mediterranean shippe

contracts as a hedge against 

The combined effect of Nor

the existence of a small nu

excess capacity has resulted 

responsiveness to shippers p

requested rate levels

Citing a decline in car

percent GRI on both conta

movements from Italy to US 

offsetting this increase was 

3percent currency adjustme

increase was the Medit

Conference s10percent G

among SEUSA members for 

was extended in principle u

Evergreen Costa Lines 

5year slot charter agreem

MediterraneanUSAtlantic 

It appears that the Italian ca

both benefit from this spa

utilization of vessels built a

three partners of this agreem

of the SEUSA pool With It

with Compania Trasatlantic

forces with Nedlloyd Line S

in a space charter arrangem

competing group inside the 

this regrouping are broad 

used and since some of the c
European ports the arrang

s

make agreement on pooling 

C A

Trade with Africa conti

the increased competitivenes

by a decline in the value of 

years USexports howeve

from Western Europe which 

colonies and ships several tim

United States does Also t

countries especially Ghana 

from the effects of drought t

in the decade Increased ag

in more shipments of cocoa 

main export commodities

Antilles and Africa Lloy

in moving breakbulk and pro

and West Africa started op

fiscal year

The Safbank Line Ltd a

space charter and coordinat

011247 in the trade between 

Africa The Agreement perm

service and to improve opera

D TRA

Overall trade between th

remains strong comprising a

value of US exports worldw

1989 US exports to Japan 

Hong Kong and the PRC in
percent 217percent 189p

and 259percent respective

A contributing factor t

the sharp decline in the valu

1988 which led to improve

goods The South Korean 

continued to appreciate again

and 103percent respectively 

to August 1989 The Japane

relatively constant for mos

percent against the USdolla

This shift threatens to erod

reducing the US trade defic

In addition to exchan

the export growth to the Far 

tariff barriers USexporter

in the quality of US produ

the US work force in the 

stable labor costs compared 

US imports from the 

accounting for approximately 

US imports In the first ei

from China and Japan grew 

respectively over correspond

Asian trading partners such 

Taiwan the level of US im

1989 decreased by 142 perc

respectively

One reason for increa

loyalty to Asian products F

have few natural resources th

has made their purchase of 

goods less expensive
Average transpacific e

to 50 percent lower than fr

stand at about 20 percent be

of this change is enhanced 

export cargo The shift mean

importance to steamship lin

concentrated on the more 

anticipation of growing US

introduced 10 new ships du

capacity of200 TEUs

Despite the introducti

has led to a decline in outbo

turn has led to a rise in 

Agreement s TWRA rates 

announced that it will impos

most dry and refrigerated ca

Unlike the outbound t

eastbound trade has led As

Agreement ANERA mem

independent action IA

In April 1989 the Co

Investigation No 18 an 

malpractice program institute

1987 which is aimed at un

trade Both shippers and ca

and violators are subject to 

each offense Since the 

importers shippers carriers 

goal

penalties

is to

totaling

prevent

more

practices

than

trade
Two new significant a

were filed during fiscal yea

In early March 1989 

carriers filed the Transpaci

011223 with the objective 

Far East to US trade by 

percent to combat overto

1year agreement provides 

individual maximum allowe

a mutuallyagreed formula 

allowed capacities for the y

85 percent of the total of a

the trade prior to the ag

allowed capacity will be as

The other significant 

was the NYK PMO Disc

which became effective on S

establishes a cooperative w

parties Nippon Yusen Kaish

Orient Navigation Comp

reach agreement on matte

stable efficient and econo

agreement trade

E LATIN AMERIC

Major events during 

expansion of Zim Conta

Venezuelan Container Servic

the Caribbean Basin Initiativ

ZimAmerican Israel S

Container Service Division in

Zim Container Service entere

with Vencaribe Line a Vene
between Kingston Jamaica an

and Venezuela Zim Contain

cargo between Kingston and 

and the Mediterranean Most 

destined for or originate in th

Venezuelan Container S

1988 when HL Boulton th

Container Line acquired Mar

Service operates two vessels s

on a weekly basis and every 

Venezuela

Development in the 

Congress this year In partic

Basin Initiative CBI was d

in 1983 to encourage econo

nations by allowing prefere

traditional products from the

Twenty two Central America

currently beneficiaries under 

initiative is expected to inc

between the US and the Ca

In February 1989 a 

Caribbean Shipowners Associa

consolidators The freight c

all kinds rate increases on th

thancontainer load and less 

on USSt Maarten route v

The consolidators asked fo

250 00 a month from the 

The case was eventually d

complainants

ASIvarans Rederi Iva

to two docketed proceedings 

Docket 8609ASIvarans R

Lloyd Brasileiro et at an
Lines SAInc Petition for 

Agreements Both dockets 

arrangements in the USSo

Ivaran Lines participates

Ivaran seeks in the first 

declare that the Brazil USA

have been suspended because 

Moore McCormack Lines the 

States Lines failed to make 

On December 22 1988 the C

which has since appealed to th

of Columbia Circuit

The second docket inv

States Lines and Ivaran as to 

of provisions of two northboun

and how cargo carried under 

Port Service provisions shou

terms of the agreements con

before the Commission

With regard to agreeme

significant development in f

noteworthy trends

The US Atlantic and G

No 202006190 reorganized 

Atlantic Venezuela Freight As

the US Gulf Venezuela Freig

Most of the independent carri

combined conference had 

and Gulf Venezuela Freight C

No 203 011172 joined one 

The only members of the disc

the two conferences

Two significant trends ha

American trades during the p
and four discussion agreem

chartering to their authority 

their members from taking 

loyalty contracts

Two noteworthy agr

American trades in fiscal y

EuroGulf Internation

reciprocal space charter agre

between US Atlantic and 

coast of Mexico The a

between USAtlantic and 

Companhia de Naveg

Lineas Maritimas Argentinas 

No 217 011250 in the tra

ports and ports in Brazil P

F MI

The Middle East trad

experienced limited growth 

poorly developed infrastruc

continues to show signs o

The Port of Basra Iraq s

1989 after being closed for 

Iran and work began on 

project Further preparat

reopen the Ports of Abadan 

reconstruction of the two 

carried out once the Shatt 

debris left over from the Ir

Emirates a federation o

located on the Persian Gul

approximately 292 million 
months of 1989 The boost i

percent increase over the sam

In addition to the above 

place

SeaLand Service Inc 

direct container service in Ma

the Middle East and Asia Th

through a space sharing agreem

SA a privatelyheld Swiss 

arrangement enables SeaLan

Middle East through the intro

from Asia with 13 vessels 10 

SeaLand Reports indicated 

as the final link in its effort to 

service

In April Thames Shippi

established a new liner service 

Baltimore Norfolk and Sava

Gulf ports Common ca

subsequently discontinued by 

In June Farrell Lines res

US Atlantic to Baghdad a

carrier intends to discharge fu

at Port Izmir Turkey from 

transported via truck to their 

Further in September 

was expanding the capacity o

and Far East service by red

vessels previously used in the 

for termination in January 1

cargo ships in this trade area

The fiscal year also 

interconference agreement in 
8900 Lines Agreement N

Rate Agreement No 202 

Discussion Agreement No 

to permit them to discuss 

conditions of service and t

the trade between the Unit

Indian subcontinent

G W

US exports continue 

result of the relatively ch

export marketing by dom

control in US manufactur

export traffic has not reduc

as hoped because 1 the

US dollar svalue produc

growth and 2 imports con

to aggressive marketing eff

to the ingrained product p

Elsewhere the last h

of political monopoly in Ea

intimations or even the f

oriented economies Altho

should lead to a substanti

opening of vast new marke

be quite limited The mo

short term are 1 increas

UStrades by Easternbloc 

by the Easternbloc carrie

they seek new tonnage an

during a time of fiscal cris

Events in mainland 

development of that pote

suffered from inadequate 
controls access to sho

developmental capital etc A

optimism is muted

US trades particularly 

world have seen the continue

intermodal systems Among 

control of an entire cargo m

origin to destination 2 

competition among multiple 

same inland point or even 

coastal ranges 3 intermodal 

under the right conditions t

4 an increase in agreements 

While progress has been 

capacity in some areas the 

continuing entry of newlyco

scene This problem is expec

AUTOMATED TA

INFORMATIO

A INTRODUCTION 

A freight tariff contains 

rates charges and rules ap

cargo A service contract 

shipper sand carrier sthat 

Mutual commitments are ma

shipper guaranteeing the car

over a period of time in co

the carrier to a certain rate a

Common carriers in th

conferences of such carriers 

and service contracts with th

tariffs and essential terms of 

public in tariff format In 

there are substantial penal

adhering to the provisions of 

While the first regula

established in 1916 it was n

US foreign commerce were 

all the rates charges and ru

The number of tariffs and am

steadily grown until in fisca

tariff pages received and 521

US foreign commerce At 

were 4947 foreign tariffs on 

The enormous amount 

limited number of employees 
1980s to consider modern te

the paperwork burdens on 

shipping industry as well a

FMC regulation A systema

by the Commission commen

has developed into a Comm

Tariff Filing and Infonnation 

B EARLY STU

The Commission cond

examine the validity of the p

requirements of the 1916 Ac

three parts

The first part concerne

the effectuation of non tar

formal decisions enforceme

on October 1 1981 was bas

It concluded that tariffs ar

Commission statutory funct

effectively used if the data w

The second part of the 

1981 evaluated the impact o

users shippers and freigh

interviews with 25 importe

forwarders It revealed that 

available tariffs were a nece

the FMC Virtually all inte

tariff system was too com

implementing percontaine

computerized filing and c

Foreign Trade Schedule B S

and Foreign Commodities 

Schedule B
The third part of the 

focused upon ten liner opera

segment of the maritime ind

publicly available and maint

interviewed for the earlier 

carriers and conferences state

the contents of tariffs A ma

of tariffs might be a necessar

that any program to simplify 

tariff automation

The overall conclusion 

retention of the requiremen

support in the maritime ind

of modernization particularl

While conducting this 

also began an internal stud

upon the Commission itself 

during a six month period 

212 458 permanent filings w

Thirty out of several hundre

of the total volume The inte

upon first quarter fiscal y

estimated annual cost of exa

filings of the 30 major filers 

With the results of t

Commission explored the 

particular interest to the Com

on the feasibility of possible 

of an automated tariff sys

interviewed seven carriers 

forwarders twelve shippers 

firms

The report of this surve

revealed the overall belief of 

should be automated and that 
system was overdue Almos

was a likelihood that they wo

were more efficient and in 

costly than the existing syste

The various responden

stages of automation A few 

and a number of confere

substantial commitments to 

that were automated to som

automated tariffs would fit w

C FIRST STEP IN T

IS

Recognizing that there 

support for tariff automation 

to determine if any parties 

appropriate system On Nov

published in the Commerce B

entitled Sources Sought fo

Commission Electronic Filing 

Tariffs Of the 31 replies re

responsive or partly respons

interest in being considered 

system andor described the

also raised questions of both 

needed to be resolved before 

leading to the eventual adop

The major questions raised 

1 Does the filing and 

a private contractor off F

statutory requirement that ta

2 Can the Commiss

compliance with electronic f
3 What is an appo

to vendor developed softwar

requirements

4 What copyrights 

5 What will be the 

filing the data electronical

either filed or produced from 

storage be required To wh

to be required

6 Will the contracto

use of the tariff information 

7 What will be the 

carriers and other firms that 

8 What is the minim

with an appointed outside v

9 What is the econo

as a free system user

10 What will be the 

will be ultimately selected

11 What will be FMs

contractor

12 To what extent w

tariff data into the electroni

data

13 How will a syste

14 To what extent w

with other format standardi
D THE SHIP

On March 20 1984 

though the continued need 

been questioned by certa

private sector during he

requirements to file and a

were authorized as an alte

contracts were required to b

their essential terms had t

format for availability to th

E THE TARIFF AU

1984 t

In August 1984 FM

appointed Vice Chairman J

Tariff Automation Task F

additional information and 

to 17 ocean carriers 10 non 

NVOCCs 19 conferenc

shippers The questionnaire

and suggestions to improve 

responded Some of the 

synthesized as follows

o Tariffs were use

basis and most

o Most with the e

with the curren

indicated a desi

o Most of the r

commercial ta

carrierconferen

predominant us
number of freig

shippers went 

representatives f

indicated that t

however those s

favored automatio

and accurate data

o A majority of 

available standard

eg ScheduleA T

Annotated Sta

Classification S

Transportation Co

did not use standa

nor did they see a 

o Freight forwarder 

the greatest degre

one type of coding 

o Practically all 

respondents believ

to file data with th

The NVOCC resp

expensive

At about the same time 

inhouse survey was conducte

its needs for tariff automat

concept The survey results 

o Most respondents 

felt that automa

quality of their wo

o Sixtytwo percent 

copy was unnecess

machine readable 
copies were the 

for enforcement 

case of compute

o Forty percent 

classification c

efficiency and q

twentyone perce

only their efficie

Responses were 

geographic code

In August 1985 the T

Tariff Automation A Fun

describing the results of the 

the report described the pro

review and the FMC snee

of tariff data The object

described as follows

o The automated 

sector to the ex

o The system will 

the assessment 

information

o Access by the F

o The integrity of 

FMC through t

software which 

o A means will 

monopolistic co

the system and 

existing satell

dissemination o
o Contractual arran

not curtail the a

to tariff document

document rooms 

The report recommen

study which would evaluate t

and their costs including a m

tariff information and the like

be recaptured The Task Fo

options to be evaluated in t

which follows

1 Multiple private 

require FMC control or ove

tariff filing within the data b

with the data and accessib

base to the FMC and to the 

reference facility Tariff Co

some sort of certification pro

involve the least cost to the 

involvement but legislative c

implement it

2 Single data base on

a single data base of tariffs 

acceptance of the data tarif

available to users for a fee a 

cost of the contract to the 

contractor a total monopoly 

the report indicated that it w

contractor to supply only 

subscription basis The purc

input costs to their system 

information in an electronic

could purchase electronic d

providing the data in usable 

users Hard copy andor m

available for sale by the co
The report concluded 

technical expertise the fea

out

Because the Commiss

future studies were unbiase

an industry consultant in A

The contract provided th

independent of the feasibil

become the contractor for 

F FEASIB

TARIFF AU

THE ATFI ADV

The Commission nex

Administration GSA for 

and entered into an interage

with GSA on August 1 1

funds were transferred to 

Work for the development 

resulting in a contract fo

contractor

Early in 1985 the 

importance of not only so

public arena the opinions 

possible automation of ta

pursuant to the provisions o

Act 5 USCapp I 115 

Committee was established

The Commission sfi

Advisory Committee were 

the GSA Advisory Committ

of the need for the Commi
a balanced membership The

on the Committee were soli

April 12 1987 50 Fed Reg 

to waive compensation for th

they were ineligible to bid 

resulting from the work of th

On November 11 19

Federal Register 50 Fed 

Formation of the ATFIAdvis

first meeting on December 

FMC Commissioner Edwa

Chairman of the Committee 

represented three ocean car

two NVOCCs three freigh

Customs Brokers and Forwa

the California Association o

and importers and the Amer

Importers two information s

Industry Association

FMC Chairman Edwar

Advisory Committee meetin

for guidance on the follow

proposed automated system

o Is it desirable tha

o Can it be structu

sufficient through 

for access to the 

o Is it possible to 

system for the FM

o Can the integrity 

Commission thr

ownership of softw

the system
o What means c

possibility of m

company that m

minimize interfe

commercial com

dissemination of 

o Can the system o

public access to 

made available 

otherwise

o Can system oper

public access u

Act

o Can a system b

imposed upon 

technical requir

automated syste

Chairman Hickey explained 

assure the integrity of FMs

o The FMC is to re

that do not com

is to determine th

pursuant to the 

other statutes

o The system m

historical record

and reproduced 

to comply with 

government reco

o The system must 

or tampering wi

and authorized 
o All fees for the use 

data reproduction 

prevent deter or i

The critical objectives of 

established as follows

o To allow each seg

formulate and sp

process of automa

o To educate each s

about the needs an

such a process

o To investigate the 

and foreseeable 

technology to acco

o Then if feasible 

compromises of 

industry segment 

acceptable and be

The Commission directe

an indepth and critical evalu

ATFI Feasibility Study and to 

implementation plan which ma

of the ATFI Feasibility Study

The ATFI Advisory Co

sessions from January to Nov

provided input to and review 

Study Contractor The final r

Comprehensive Study of the F

System FMC October 28 198

for tariff automation the nece

a system alternative concepts 
delivery alternatives costs 

approved in principle by th

suggested changes In s

requirements identified by t

1 Key Tariff Filing R

a Electronically cre

FMC

b Provide faulttole

c Provide compati

extent possible

2 Key FMC Tariff Pro

a Accept electronic

essential terms amendmen

b Provide tickler c

up on a letter of criticism

c Perform compute

filings egsyntactic validi

d Provide workloa

status of new tariff filings

e Generate FMC 

rejection

f Route tariff filing

g Collect workload 

tariffs filed in a week
3 Key Tariff Retrieval 

a It is expected tha

into this system will be for 

Thirdpart vendors will prov

public

b Retrieve current 

keys egorigin and destina

c Retrieve historica

keys egcommodity code

d Link tariff informa

e Retrieve current 

formats egpage

t Retrieve historica

formats egentire tariff

g Provide computer

egsubscription service

h Retrieve tariff info

egrerating

i Retrieve tariffs to 

indices

4 Key Functionality Re

a Accuracy egam

the data base

b Timeliness egq

rates
c Security egu

d Special analyses 

5 Key Policy Assum

a FMC will provi

terminals in a public term

make copies of the data ba

who could then resell the 

retail basis

b FMC would no

added services directly to 

provided by thirdparty s

provided by the system wo

egfor enforcement purp

c FMC would not 

the data base as a creative 

The functions and 

identified in the study have 

backbone of subsequent e

The system concept dev

Commission by the Contr

73 million and an estimat

months The cost estima

calculation for the fiveye

time frame consisted of d

including training data c

estimates were considered 

were the costs for comple

scratch Some of the co

existing systems which cou

the functional requirement
The Feasibility Study co

Tariff automation appea

the maritime industry an

appears to be politically 

of tariff automation app

range when balanced 

accrue and the practical 

TheATFIAdvisory Com

Study in principle made two 

the Commission adopted

o First the FMC 

automation as des

o Second the Co

costbenefit study 

that the perceived 

the costs of the i

industry

G BENEFIT CO

PROCUREME

In October 1987 a Ben

by a commercial contractor 

feasibility of the project Th

Office of Management and B

In December 1987 a del

for the project was obtained f
H INQUIRY ON THE 

and PRESOLICIT

In December 1987 the 

draft request for proposals R

from the vendor community 

the Commission sought p

functionality of the system i

The purpose of this o

that the regulated commun

were fully aware of the 

automation Comments w

potential bidders on the ba

ATFI system This function

Inquiry has remained const

The electronic A

seeking

central computer

a prime contra

with 

for tariff review proce

tariff data to be electr

conjunction with the 

Coordinating Committ

items visavis tariff p

Tariff line items are 

rate items in current 

directly without havin

As recommend

Committee standardiz

will not be mandated 

must have the capabil

the appropriate time 

essential terms of serv

Full implementa

to allow commercial fi
Exemptions at least tem

types of tariff filers who 

the electronic system

The system will b

existing computer equip

for hill connectibility 

primarily by using 

microcomputers dialing 

data base The filing s

checks to ensure that the 

that basic statutory prov

the tariff can be officia

example will be able to 

effective dates such as 

days notice Other p

warranted such as uncle

will still have to be 

necessary resolved at the 

computer capabilities h

also

The ATFI system 

mechanisms to protect 

Tariff filers will b

tariff materials by rem

system by carriers or co

The carrier or conferen

tariff so that the app

Commercial tariff servic

by carriers and conferen

into the data base afte

from their clients or tra

electronic form The F

tariff services to assis

difficult to file electron
Once the tariff dat

will download the en

formatted onto compute

person at the relativel

dissemination This will 

of providing copies of ta

order to keep up with 

changing freight rates in 

interested persons must 

tapes frequently FMC 

to provide this capabilit

The FMC will 

processing of the tariff d

in competition with co

expected that those serv

base tapes to facilitate 

FMC must however use 

internally for investigativ

and will continue to ut

valueadded services of 

purpose

In order to carry o

making tariffs and esse

available for public insp

have a public reference 

Washington DC Here 

terminal on which inform

be brought up on the 

necessary rates and rules 

still be available upon 

certification to courts an

involving disputes over 

Tariff Automation Dec

48504
Explained in the Notice 

draft RFP was remote access t

almost any time of the day fo

any interested person This 

1986 Feasibility Study Final R

b Retrieval and A

FMC would also 

member of the general p

tariff system from remo

system would enable a 

retrieve data from the 

terminal or microcompu

a modem to enable d

telephone lines

However member

be able to perform rela

essentially no analysis o

of the public would only 

a time in its full forma

user would have to s

particular carrier that is 

not be able to searc

community

FMC has impose

careful analysis of a

precedents FMC does 

party services for the p

and analysis of tariff 

others in the private m

automation ie the 

available copies of tarif

if they can specify the 

fee is assessed for this 

these services after tar
However FMC w

services can provide s

While the Commissio

on the proposed features 

ATFI system a draft RFP w

Firms and individuals on 

submit their questions on th

and to attend a presolicita

for facetoface questioning

In April 1988 the Com

Automation Inquiry 53 Fe

rationale for the features 

system

I REMO

When the Commissio

become aware of conce

Subcommittee on Informa

OMB The concerns rev

remote retrieval As state

the shipping public to dial 

to an individual tariff of a c

access to one tariff at a 

sophisticated searches The 

based on the perception th

with existing or intended 

private sector firms I

acknowledged its commitme

the development of the syst

retrieval concerns 53 Fed 

During the period Jun

reassessed the functionality 

the area of remote retrieva
with officials of Congress an

revisions were made to t

exigencies and legal requi

Commission issued to some 

draft RFP for comment on 

the Commission remained c

remote retrieval and stated i

draft RFP

The remote retrieval i

Accordingly this draft 

retrieval question still 

in the final RFP

After much analysis an

decided in December 1988 

system with remote retrieva

Automation Inquiry the Com

The controlling 

functionality of its AT

properly considered a

such as 1 the system 

other members of the s

role of privatesecto

Commission believes it 

In October 1986 

heard of any complai

privatesector contracto

of the Feasibility of an 

report accurately descr

the ATFI system in term

sector firms to fully 

submitting proposals T

and discussed by the 

Committee at the time 

remote retrieval
More importan

Commission and the A

Study Report subop

functions as an a

information firms

FMC does not 

services for the provis

analysis of tariff data f

the private market Pa

Accordingly the 

allow the general p

rudimentary retrievals 

analysis of the data

In consideration 

Commission and the a

to properly perform 

accommodation appea

The shipping pu

modern technology by 

tariff data on a limite

services the utilization 

filing and retrieval is 

efficient tariff filing a

fair competition and fa

Accordingly an

Commission believes 

all policies and conf

proposed system and 

retaining the functiona

in the Feasibility Stu

RFP December 

See also Section K U

1990 below
J CONTRACT AWARD 

After receiving much te

RFPs and after resolving 

Commission issued a final R

potential offerors on the bid

received in March 1989 and e

cost effectiveness

On August 8 1989 the 

Phase I System Conce

requirements and Phase 

Research Corporation PRC 

with Data Exchange Inter

Pennsylvania which had the 

cost proposal Work on the 

1989

The contract for the f

options for each subseque

testing prototype operation 

scale operation which is s

1990 If all options are exe

46 M

K UPDATE ON 

MAR

Since the 1986 Feasibil

I above the FMC sAutom

System ATFI has been d

filing and retrieval of tariff d

the offsite host processor m

avoid competition with priva
contemplates restrictions o

ability to retrieve only rudim

atime

Such a restriction has no

Pub L 10192

The Commission 

on the system to limit 

person

Congress has explained this 

Concern has be

accessibility of the AT

In particular the rem

the public to dial into 

a particular carrier sr

a given trade

At the present 

reasonable controls 

offered because the 

or implemented How

possibilities are reason

could be limited to re

full format and the us

tariff of the particula

alternative specific lim

imposed and automat

limitation or a comb

requirement discussed 

101st Cong 1st Sess
While the ATF

developed the Comm

built into the design 

of a limitation on acce

the total amount of tim

logoff feature Som

assist in preventing 

features and prevent a 

a single entity 

Sess

Both the House Merch

Committees also requeste

developments on reasonable 

Development

In addition to the f

contained in HR Rep 173 

the FMC FY 1990 Appropri

In implementing t

the Commission to de

that ATFI will not 

providers

1986 Feasibility

of informatio

Study 

the system should be 

no analysis of the da

governing the system sh

to access the system on 

automatic logoff

SRep No 1

added the word u

the language is id

Phase I of the ATFI co

Phase II System Design hav

Development and Testing be

IV Prototype is scheduled t
Contractor working with th

reasonable controls and pro

accommodate the intent 

These however will be 

development of the sys

experience during prototyp

Preliminarily it is inte

off for any kind of modem 

inactivity This is similar to 

access services

For remote retrieval 

specification by the user o

accessed after consulting 

identify the soughtafter T

also be various help func

before bringing up the item 

Because tariffs will c

sections governing the app

of the same tariff may also 

tariff filer has a separate 

instead of an allinclusive 

tariffs may also be accessed 

to be able to accurately de

these unique types of tariffs 

one tariff at timelimita

When the system first 

is intended that the retriev

after 30 minutes This shou

the applicable rules and pe

mistake in selecting the firs

limit can be adjusted upwa

Software will be devel

problems as possible before 

or by the batch process 
rejections In order that a c

session has been successful h

to only its own filing in th

consult a special message sc

The fewer the errors the eas

The system design will a

and monitoring of utilization 

prevent access abuses by any 

If there are any further 

controls and procedures 

Commission will continue to k

SECTION 

A SECTION 18 

FIVEYEAR 

IMPACT OF THE S

Calendar year 1988 w

collection period outlined in 

1984 Section 18 of the 

referred to as the Act dire

years following its enactmen

analyze information concern

international ocean shippin

Congress specified that th

include data on among othe

in the level of tariffs 2 ch

common carrier services 

geographic regions 3 

independent carriers in vari

time frequency and cost 

proceedings before the Com

Section 18bof the Ac

with the Department of Ju

Transportation DOT an

FTC annually concernin

agencies shall at all times 

under this section to ena

concerning data collection 

with the staffs of these agen

The Act further spe

following three topics should 
o The advisabi

tariffs based 

shipment

o The need fo

ports and ma

o The continui

requirement 

enforced by t

Within six months after 

of data collection the Commis

with an analysis of the impac

Advisory Commission on C

Advisory Commission and 

three aforementioned agen

analyses on the impact of t

submission to the Congress a

The Advisory Commissi

comprehensive study of 

concerning conferences in o

specifically address whether 

by prohibiting conferences 

conferences The Advisory C

after its establishment submit 

a final report containing 

conclusions including 

administrative judicial and 

advisable
B EXECUTIVE 

THE FMC SEC

1 Introduction

The Section 18 Repor

Section 18 Report or Repo

including supporting data an

Shipping Act of 1984 1984 A

industry It is the product o

Maritime Commission FMC 

Congress in section 18 of the 

specific issues that Congress 

assessing the regulatory refor

particular the Commission w

the Act to collect and an

decreases in the level of tariff

type of common carrier serv

geographic regions 3 t

independent carriers in vario

time frequency and cost of 

proceedings These topics a

Report

Congress also identified 

18c3of the 1984 Act that 

in its Report 1 the advisab

based on volume and mass 

antitrust immunity for ports a

continuing need for the stat

filed with and enforced by 

discussed in Parts Two Thre

The Report also ad

independent action IA in 

Seven of the Report identifie

Act that may require clarifica
This Executive Summa

Act simpact and summariz

conclusions

2 Overview

Under the 1984 Act s 

standard the Commission 

average number of agreem

year b a reduction in 

agreement and c a declin

the Commission These 

resources for expanded en

about significant increases 

These procedural i

Commission to devote 

government restraints on sh

more proceedings under s

Act 1920 since enactment 

comparable period of time 

had a positive influence 

foreign commerce

The 1984 Act sreform

consequences that some ob

superconferences and 

agreements did not result i

of shipping services or Loss 

The 1984 Act did not have 

service frequency or the str

The US trades remained op
The popularity of t

provisions of the 1984 A

whether common carriage 

particular major shippers 

contract carriage These 

establish a clear distinction 

tariff rates and carriage un

a require that the term

confidential and b prohib

right of their members to e

Carriers on the other 

ultimately undermine the ta

and the principle of com

Instead they advocate cont

essential terms of service 

those terms to similarly situ

3 Part One The Im

on the 

As required by the 19

and analyzed information o

independent carriers and re

the Commission conducted 

the views of the maritime in

1984 Act These survey re

papers presented by indus

Section 18 Study Advisory C

The major conclusions 

are as follows

a Data and Analys

1 The Commissio

average number of carrier 
each year and a reduction in 

agreement

2 Changes in the 

standard of review ma

superconferences and the 

authority

3 The 45day agreem

1984 Act decreased the 

agreements to become effect

required for approval prior to 

major proceedings declined a

4 Following implem

was a decline in the number 

Commission coupled with a 

length of those proceeding

therefore to concentrate it

proceedings and other issues 

strategies

5 Independent actio

expanded the commercial o

public In some trades pot

exception rather than the rul

6 The main factors t

value tonnage distance dire

not change appreciably as a 

change was noted in th

variable ie outbound US 

likely cause appeared to be tr

provisions of the 1984 Act

7 Quarterly rate 

commodities in 18 US trades 

that fluctuations in the supply 

services not IA and service 
basic cause of the rate 

implementation of the 1984 

8 A comparative 

trades before and after i

indicates that only six USPa

in rate stability Howeve

suggesting that changes in th

primary cause

9 A comparison o

before and after implement

of the six US trades studied 

the South Pacific Italy A

exhibited no dramatic chan

significant increases in cap

Australia trade showed a d

results suggest that the p

specific trades rather than 

Act were the important in

provided to shippers

10 A comparison o

trade with the largest nonU

involving nine basic servi

similar patterns of change 

These results further suppo

the 1984 Act were mainly 

levels

11 Data from the s

contraction in the average n

between 1984 and 1988 In 

made annually in the US po

12 As inland transp

water transport costs serv

closest to the foreign destin
13 The relative stren

reflected in the proportion o

has changed little since the 

In some individual trades s

independents made significan

14 Independent carrie

of tonnage carried in the la

trade

15 Comparisons of 

conference and independent 

trades conference cargo mixe

also show that independent 

between their ratio and thos

trades Independents appea

of high valued cargo in their 

16 The Brazil trad

agreement revenue pooling a

laws is characterized by high 

independent action on rates

b Industry Views on 

The views offered by va

by the 1984 Act varied wi

industries and within each in

industry group sviews is cont

that consensus exists on som

conclusions can be drawn

1 There is industry 

conference system in the US 

such as prohibiting conf

conferences had little suppo
2 A majority of 

industry supported the prop

filed with and enforced by 

3 The revised agre

Act has proven beneficial

4 The more contro

the mandatory independen

provision permitting servic

tended to endorse shorter 

extension of IA to service 

prefer the opposite

4 Part Two Volume 

a In response to C

nor providers of tariffs favo

on volume and mass e 

freightallkinds system

b An analysis of 

adopting a system of tariffs b

that such a system could 

transportation system

c Volume and ma

system and therefore requi

a system could also

1 Reduce the mov

US trades

2 Increase the imp

3 Create distortions 

for example does not impos
4 Complicate interm

d Based on both d

make a case for adopting a 

and mass of shipment

e There was so

shippers for a lumpsum pe

support for a more simplifie

f There is little da

the current rate structure res

monopoly power

5 Part Three Antitru

Marine Terminal O

a The regulation o

to the pricing policies of rail

their effects on competition a

system of terminal control an

public port authorities doe

competition

b The need for ant

competition depends on ons

neoclassical economic interp

strong case for antitrust im

Austrian economic view sta

granting antitrust immunity

c Public or quasi p

solely by economic consid

based on the traditional idea

applicable Interport confere

two or more states general

interport competition
d There is no clear 

marine terminal operators to 

within a port Granting anti

may not be necessary or eco

e The need to pro

authorities and private termi

carrier conferences is que

strength over terminal lease

portrelated geographical 

availability of alternative por

Act antitrust immunity

f Public port autho

US antitrust laws even with

However not all ports may 

This could result in a non

immunity

g Whether to reta

immunity provisions dealing 

them only to public port 

altogether requires a val

regulatory concerns These i

policy state and federal 

established industry practice

6 Part Four FMC T

a The historical re

on tariff filing and enforcem

b Based on annua

the shipping industry favor 

tariff filing and enforcemen

c Surveys indicate 

continue to have the right 
but oppose IA on these rate

filing issue but favor manda

rates

d Surveys of the 

practices of foreign govern

increased tariff regulation

e The Commission 

legislatively mandated respon

requirements

f Of the policy opt

system ensures a nondiscr

system

g The existing t

mechanism in an open confe

market efficiency ensure fair 

and preserve just competition 

7 Part Five Service Co

a Service contracts 

upon the maritime commun

carriers and conferences file

substantial amounts of cargo 

b Sixtynine percen

by independents or individ

percent were by conferences

c Evergreen Line f

than any other carrier or con

Eastbound Rate Agreemen

highest total 1317 and 

Conference was third 1253
d There was a w

service contracts and tariffs f

conferences

e Industry opinions 

service contracts and the ex

provisions of the 1984 Act s

1 Since 1986 carrie

service contracts have had a 

2 Shippers especi

negotiated them view servic

3 Majority support 

nity for continuing to require 

contracts be made publicly 

number of shippers prefer c

4 Carriers oppose 

independent action on servic

8 Part Six Independe

a IA allows confere

and more responsive servic

competitiveness and flexib

members are able to compet

independents If intraconfe

intense the ability of the co

threatened Although manda

expedited changes in tariff ra

their ultimate levels

b The large numbe

in the Pacific trades the 

Agreement TWRA and 

competition from independe
decrease in the use of IA

explained by growing US exp

excess shipping capacity Slo

for the growing use of IA by 

c Mandatory indep

agreements was not subject 

length of the maximum IA no

maximum period was oppose

shippers While the tenday n

carrier rate reductions it did 

more likely overtonnaging

d Service contract ra

rates because tariff rates wer

service contract rates

e It is difficult to 

concerning IA on service con

enter into individual service c

amount of such activity unde

service contract IA on the 

uniform rates in an overtonn

than for IA on tariffs becau

diverts at least a portion o

carriers for the duration of 

single voyage

9 Part Seven Technica

Clarificat

The Commission has id

1984 Act which are unclear or 

These provisions are discusse

chapter
10 Endnotes

1 Position of the Shipper St

Amendments to the Shipping Ac

Submitted to the FMC by 22 US 

2 Ocean Common Carrier Posi

March 20 1989 Submitted to the 

Agreement 203 010851 1

3 Cross tabulation analysis rev

shipper views by size small med

independent conference mem

operators by commercial status 

company

4 The Shipper Study Group a

elimination of antitrust immunity 

pp 710

C S

Since 1986 the Feder

surveys to various industry 

opinions on certain aspects 

1986 surveys were sent to 

port marine terminal opera

were added to the list of su

was sent to all the abov

associations The survey re

in the Commission sSection 
D SECTI

ADVISORY 

The Federal Maritim

Industry Advisory Com

recommendations on the con

committee is comprised of 

representatives from confere

vesseloperating common c

customs brokers shippers s

marine terminal operators 

firms

The first meeting of th

on March 10 1988 at the 

Washington DC The seco

place in April 1989 

Commission sdata gatherin

opportunity to submit positi

the impact as well as change

1984 Act

A synopsis of their v

papers follows

1 The Ocean Commo

essentially no changes to th

tariff filing and enforcem

contracts antitrust immun

concerted activities open c

independent action except 

lengthened from 10 to 60 d

2 The Shipper Advi

Group suggested that Cong

conference antitrust imm

elimination of port antitrust 

the current tariff filing a
antitrust immunity be retai

contracts reduced notice p

and wanted mandatory IA 

3 The American Ass

main concern is antitrust 

terminals The group 

legislation visavis port ant

4 The parties to the 

Advisory Commission S

exempting terminalcommo

regulation and filing under 

not believe that stevedoring 

5 The National Custo

Association of America 

quo regarding tariff filing 

public availability of essentia

conferences although we wo

current support for this sys

difficulties

6

In addition to the view

by the NCBFAA the Paci

Brokers and Freight F

PCC submitted their pe

PCC believes that antitrus

activities should be discontin

enforcement as well as servi

and loyalty contracts should 

parties without governmen

believes that both NVOCCs 

licensing and bonding requ

public from financial injury
7 The Shippers Asso

favor of maintaining the tar

the FMC but thought that 

stance on service contract a

conferences do not negotia

associations They also beli

granted exemption from ant

should enjoy a similar exem

8 The Non VesselOp

NVOCCs supported curr

provisions and mandatory IA 

should be permitted to offer 

customers and receive ant

granted exemption from a

NVOCCs should be licensed 

9 The Consultative S

to focus on the effects which 

on rates and rate stability 

Commission should study w

the regulation of liner conf

necessary feature of antitrus
V

T

FOREIGN SHIPPI

OF 

A THE 

The Omnibus Trade a

enacted by Congress and effe

on August 23 1988 conta

Foreign Shipping Practices Ac

The 1988 Act directs th

conditions affecting United 

oceanborne trades which co

those countries in the Unite

as a result of acts ofUScar

or maritime related services 

B ACTIONS TAKEN 

On July 21 1989 

investigation under the Fore

of certain doingbusiness re

which appeared to adversely 

of US carriers serving the 

November 16 1989 the C

Order which discontinued 

commitments which appea

issues anticipated progress o

any request for specific sanc

Commission also determined 

trade was appropriate in 

anticipated further progress 
therefore stated that it wou

trade who were parties 

subsequently on the statu

trade

C TOP TWENTY 

TRADIN

Section 10002 g

Competitiveness Act of 198

Commission to include in it

of the twenty foreign coun

volume of oceanbome liner 

year in bilateral trade with 

list of

The

top

data

twenty

which

trading

the sta

Bureau of the Census Cens

between liner tramp tanke

defines liner service as th

regular line operator of ves

sailing schedules of vessels 

and fixed The data suppl

are intended to exclude all 

with this definition

Export

The

Declarations

export data

while

are c

t

the import entry and wareho

of documents are required 

officials These data are s

Both export and import stat

the USpossessions shipme

and imports of vessels thems

as military household goods 

supplies intransit shipments 
The most recent yea

available to the Commission 

below indicates the twenty fo

the largest volume of oceanb

with the United States in 19

each country stotal United S

thousands of long tons

Top Twenty 

Trading P

Rank Country 

1 Japan 

2 Taiwan 

3 Republic of Korea 

4 Federal Republic of Ge

5 Italy 

6 China PRC 

7 United Kingdom Incl 

8 The Netherlands Holla

9 Hong Kong 

10 France 

11 Belgium and Luxembou

12 Brazil 

13 Australia 

14 Spain 

15 Thailand 

16 Indonesia 

17 India 

18 Singapore 

19 Philippines 

20 Sweden 

Source US Department of C

Figures listed above are bas

Census and are subject to rev
The top ten countries 

1988 The only differences 

the two years are the rankin

Kingdom In 1988 China 

seventh in 1987 The Unite

as opposed to sixth in 1987 

changed moderately betwe

countries listed in 1987 appe

listed in 1987 Venezuela an

Singapore and Sweden in 1
V

SIGNI

OPER

ACTI

B

ORGANIZA

A OFFICE OF 

1 General

The Office of the Secreta

regular and notation agenda 

by the Commission and reco

the Commission on these 

formal complaints involving 

and other applicable laws is

of the Commission maintain

formal proceedings receiv

directed to the Commission 

andor records administeri

Government in the Sunshin

information requests from 

industry and the public 

documents related to fo

Commission and compiling 

Commission decisions

The Secretary s Off

development of rules desig

complexity of formal proce

implementation of legislative 

During fiscal year 1989

o The Office began 

automated manag

local area networ

network would 

Commission

o Substantial prog

automated metho

editing of materi

volumes of Com
culminated in the 

Commission sde

o The Commission 

the Shipping Act 

data gathering re

of proceedings fo

office also coordin

final report

o The Commission 

proceeding and 

formal proceedin

discontinued o

including det

Administrative 

proceedings On

the Administrativ

also concluded 8

informal docket

against carriers 

applications to co

same period the 

seven rulemaking 

o Five rulemaking 

petitions were pe

end of the year F

anticipated in fis

2 Office of Informal I

Informal Dockets

This Office coordinate

system throughout the Age

and information requests w

including those handled 
Recoveries to the general 

other savings attributable t

amounted to 136 743 S

complainants recover over

The Office coordina

industry representatives and 

copies of procedures docke

by the general public D

responded to 674 such tele

Office maintained liaison 

Consumer Affairs Council 

the fiscal year

In addition the off

adjudication of reparation c

filed by shippers against co

the foreign and domestic 

States These claims mus

the Shipping Act 1916 t

Intercoastal Shipping Act 

received under this progra

freight adjustments arising f

During fiscal year 1989 13 

period 14 informal docket c

no pending cases at the clo

B OF

ADMINISTRAT

1 General

Administrative Law Ju

the receipt of a complaint o

Commission sown motion

Administrative Law 

administer oaths and affirm

offers of proof and receive 

depositions to be taken whe

served thereby regulate 

conferences for the settleme

consent of the parties dispo

matters make decisions or 

other action authorized by 

Administrative Procedure A

At the beginning of fis

pending before Administrat

135 cases were added 

remanded to Administra

proceedings The judges he

two formal oral hearings 

dismissed or discontinued s

initial decisions in formal p

in special docket applicatio

2 Commission Action

The Commission ado

76 special docket decisions 

four formal decisions becam
3 Decisions of Admin

proceedings not yet deci

United States LinesSA

Order Re The Brazil Ag

This proceeding began 

Inc USLSA petitioned th

order seeking to terminat

members of two revenue po

Atlantic and US Gulf trade

believed that revenue earne

service to Gulf ports shou

agreement another line Iva

belonged in the correspondin

referred the matter to the O

for development of a suitabl

decision After the record 

was issued resolving the 

authorizing release of withh

that the agreements needed 

modern inland intermodal s

Port ofPonce v Puerto R

885

This case was a comp

Ponce initiated the action 

Authority PRPA alleging 

16 First and 17 of the 191

provisions of the 1984 Act 

which developed were

1 Was PRPA an oth

operator within the meanin

Commission had jurisdictio

that it did have jurisdictio
degree of control respecting 

Further the ID rejected PRs

fees from ships calling at P

navigational purposes and 

informational in character 

imposed charges for services 

its terms and that the tariff 

2 Did the complainan

that the complainant had sta

the action by the Municipal A

not prejudice the respondes

3 Did the respondent 

and 10dof the 1984 Ac

even though PRPA did not o

the tariff filed by PRPA im

from some vessels while e

Further the services for wh

never rendered to vessels a

denied the use of the port if 

4 Were section 16 F

106112 of the 1984 

were not noting that the evi

there was undue or unreasona

5 Should reparations 

reparations because the fees 

Ponce and because Ponce 

expenditures it made for po

necessary had the services e

provided
California Shipping Line 

Transport Corp Docket 

This was a very imp

involving service contracts a

shippers Section 8c of the 

section The questions pres

were

1 Was the complainan

contracts given to others b

Decision ID held that th

situated shipper and was 

contracts because the respon

out of hand and did not es

different from the other sh

factors

2 Did the responde

requests because of coload

facts here where the respon

until after the complaint wa

denied the metoo request 

especially where the evidenc

the complainant would hav

service contracts The ID he

not coloading was illegal in 

law was not in issue

3 Where a service c

after a metoo request is m

denied The ID held that 

terminated after the complain

the request could not be de

where the law provides tha

anytime within 30 days of th
Commission It held fu

Commission sregulations do 

4 Did the denial of th

10b5and 10b2of t

sections were violated bec

denied out of hand an

discriminatory

5 Were reparations a

were and that the evidence 

damages However double 

6 Were penalties ap

view of the violations of th

respondent had misled t

inaccurate information a pe

each of the three violations

Pueblo Internationa4 In

Construction Co Inc D

This was a complaint p

that the respondent violated 

its schedule of rates by co

unjustly discriminating agai

became one of the jurisdic

jurisdiction of the IC

Before hearing the par

agreement which represented 

themselves The agreement 

and is both a reasonable and 

and its acceptance is warran

encouraging settlement rathe
Judges also issued i

8710 8715 8729 8898823 

1649 1651 1653 1655 165

1665 1667 1668 1669 167

1676 1677 1678 1679 168

1686 1687 1688 1689 169

1693 1694 1695 1696 169

1703 1705 1707 1710 171

1717 1718 1719 1720 172

1728 1729 1730 1731 173

1743 1744 1745 1746 174

1763 and 1764 described und

4 Pending Proceedings

At the close of fiscal y

proceedings of which three w

Commission The remainin

the filing of complaints or ap

water shippers conference

terminal operators trade as
C OFFIC

GENER

The General Counsel 

Commission This includes re

recommendations for Comm

rules to implement Commiss

decisions orders and regulat

In addition the Office of the 

or oral legal opinions to th

general public in appropriate 

represents the Commission 

and administers the Commisss

1 Decisions and Rulema

The following are 

representative

Office

of matters pre

Matson Navigation Com

Section 35 Exemption Pe

1518 January 27 1989

The Commission gran

Navigation Company Inc 

limited exemption from the 3

1933 Act so that Matson co

notice reductions in existing 

tariff items The Commissio

necessary in order to allow 

not regulated by the FMC a
Tariff Filing Notice Perio

893 24 SR1604 M

The Commission amen

permit allFMC regulated ca

in the Hawaiian domestic of

one day s notice reductions 

rates and rates on new tarif

Commission sapproval of th

exemption for Matson in Pe

found that a tradewide ex

stimulate competition and av

Actions to Address A

USFlag Carriers That D

in the United States Do

1631 March 16 1989

The Commission adopt

to its regulations to implem

sets forth general procedure

address adverse foreign con

that do not exist for foreign 

Commission also amended 

19bof the 1920 Act and 

to add new sanctions made 

proceedings under those sta

Service Contracts Docke

January 12 1989

The Commission adopt

service contracts filed with t

or administrative errors in th

Parties seeking relief must f

contract sinitial filing with 
correction must include a sup

the other party and other re

Interpretations and Statem

8817 24 SR1368 O

The Commission ado

common carriers or confere

association to obtain or ap

Business Review Letter prio

negotiation process The ru

unnecessary impediments 

associations and the negotia

Service Contracts Mos

Docket No 88724SR

The Commission adopt

of mostfavored shipper c

service contract rate to be ba

carriers However the Comm

that allow a contract rate 

carriers or conferences T

adopt a rule that would 

liquidated damages and ins

such matters on a casebyca

Hemisphere Navigation C

Inc Docket No 8729 

1989

Hemisphere Navigatio

common carrier had filed a 

Service Inc had misrated 

applying motorwater rate

intermodal tariff filed at the 

ICC rather than the lo
allwater porttoport FMC ta

by an administrative law jud

parties negotiated a settleme

pay reparations representing 

sum originally sought by Hem

The Commission approv

a reasonable compromise 

parties In addition the C

examine transportation serv

tariffs filed with the ICC in o

a shipper that the services it 

services subject to exclusive F

been assessed FMC tariffed 

that in discharging its respon

unreasonable carrier practice

of the Shipping Act stariff fi

not improperly transgress up

Atlantis Line Ltd v Am

Docket No 8719 24SR

petition denied 24 SR

The Commission revers

that a disputed American 

Note N was clear and un

Atlantis reparations The 

discount provided by Note N 

shipped after the 100TEU 

met Atlantis subsequent 

rejected for failure to presen

not been earlier considered 
Actions to Adjust or M

Shipping in the United SP

876 24 SR1619 M

The Commission iss

unfavorable conditions exist 

as a result of certain laws 

Peru Further in order t

conditions found the Comm

made by specified Peruvian

the economic and politica

Commission suspended app

Investigation of Rebates 

Yangming Marine Line 

1252 Administratively 

1988

The Commission initia

whether Yangming Marine L

Act or the 1984 Act by allo

to obtain transportation at 

tariffs or service contracts 

rebates or through other unf

administrative law judge issu

settlement negotiated with Y

of Hearing Counsel whereb

cease and desist from making 

cotton shipments except in a

tariffs or service contracts a

certain documents and othe

permitted the Initial Decisio
American Trucking Assoc

Order to Show Cause P

246 June 21 1989

The Commission denie

Trucking Associations Inc 

practices by carriers at Pac

collective bargaining agreem

50 Mile Container Rules f

Gulf ports ATA urged the 

the carriers to show cause w

agreement should not al

Commission however found 

the Pacific Coast practices d

from releasing their contain

did they place any restraints 

to employ such consolidato

the petition without prejud

persons to file a complaint

2 Litigation

The General Counse

litigation before courts an

Although the litigation wor

the Commission upon petit

with the US Courts of Ap

participates in actions fo

Commission orders actions 

cases where the Commisss

litigation

The following are rep

the Office
New York Shipping Assoc

1338 DCCir 1988 ce

Ct 866 1989

The Commission had 

enforcement by ocean com

Container Rules whereby c

to points within 50 miles of A

required to be loaded or 

longshoremen were unreaso

and therefore violated the 19

Act

The Commission furt

maritime statutes the Rule

ground that they were the 

agreements between the 

Longshoremen sAssociation 

for longshoremen The Com

accommodation for nationa

laws was in the construct

violations The Commission 

an order directing the car

publication and enforcement 

was stayed during the s

Commission sdecision

The US Court of App

Circuit upheld the Commiss

ILA then filed a petition fo

Supreme Court The Com

General filed a joint brief 

January 1989 the Supreme 

of the Commission scease 

lifted and the Commission is

to comply with the terms of 

seven calendar days Dock
ASIvarans Rederi v Co

Brasileiro Docket No 

December 22 1988

The Commission denie

cargo revenue pooling a

BrazilUSAtlantic Coast t

agreement by its other me

carrying out actions unaut

Commission found contrary 

the proper interpretation of 

of a major carrier party to th

number of sailings under th

agreement ssuspension bu

carrier spool share The m

Court of Appeals for the D

881597 and 891105ASIv

AgreementProvisions on L

8726 and 881 24 SR

The Commission dete

provisions which prohibit a 

into a loyalty contract or fr

the purpose of entering int

shown to be unlawful unde

pending decision by the Uni

District of Columbia Circ

Chemical Manufacturers Ass

National Customs Broke

883 F2d 93 DCCir 

The US Court of Ap

Circuit upheld the Commiss

a rulemaking proceeding 

promulgate new rules rela
forwarding activities The 

rulemaking

attacked were

authority

reasonable

and th

requested rules was not im

determination not to inst

overturned in the rarest and 

involving legal error or ch

agency saction neither of w

American Association o

Carnival Cruise Lines In

The Commission filed 

treble damage antitrust actio

against a number of ocean 

appeared in support of 

plaintiff sallegations of a g

Shipping Act violations w

jurisdiction and against the 

providing roundtrip ocean c

carriers within the scope of 

before the United States Co

Columbia Circuit

3 Legislative Activities

interests

The

in

General

all matters

Couns

b

commenting on proposed 

preparing testimony for Com

to Congressional requests fo

In February 1989 c

Committee on Merchant Ma

bill to amend the 1984 Act 

of USocean freight forwar

The bill would provide c

independent action on the 
compensation and would p

ocean freight forwarder com

of all rates and charges asse

In April 1989 comme

Committee on Governmenta

the Federal Advisory Com

enclosed a copy of a let

Management and Budge

committee operations In th

the Office of Management 

industry advisory committee 

Section 18 Study Advisory C

Vice Chairman Carey 

Subcommittee on Merchant 

offshore trades in February 1

include water transportatio

United States and Hawaii A

Islands Guam and American 

liner trades rate levels esta

within Limits to review by 

depending on the service offe

designed to examine problem

Puerto Rico trade by both 

Subcommittee Chairman W

regulation has become a so

operating in the Puerto R

regulates porttoport shipme

the ICC has jurisdiction 

movements

On June 15 1989 Actin

the House Subcommittee on 

HR 2498 the Intermodal S

was introduced by Chairma

legislation is the result of a

Puerto Rico on February 1

domestic offshore trades
Testimony was also pre

other Congressional hearings 

4 International Affairs

The General Counsel ha

and reporting on interna

including practices of foreign 

shipping The General C

s 

Commission on US Govern

with international maritime 

technical advisor on regul

multilateral maritime discuss

Several reports and reco

submitted to the Commission 

19bof the 1920 Act Se

Section 19 matters included 

and Ecuadorian cargo reserv

and restrictions on intermod

in the USTaiwan trade See 

the Commission instituted an 

Shipping Practices Act of 

FSPA into alleged doing 

of Taiwan authorities which 

carriers See Docket 8916

Further the Commissio

of the laws regulations and 

Korea Taiwan and the Peops

unfairly burden or restrict 

common carriers including 

US trades with these coun

exporters which depend on t

assessing the impact of thes

policies to determine whethe

FSPA is warranted Of part

are indications that US fla
prevented from conducting 

these trades The Commiss

regarding these possible 

USTaiwan and USKore

The Office of the G

interagency groups and int

particularly as technical adv

Policy Group whose other m

the US Departments of Tra

Justice and the Office of th

addition the Office served a

matters between the Commi

agencies as well as private p

and participated in briefi

Commission

Finally under the 

program relating to the sta

common carriers were class

5 Significant Ongoing 

a Korea Shipping C

The Commission initia

and effects of laws regulatio

Korea ROK on the 

nonROKflag ocean carrier

activities in the ROK by se

nonROKflag carriers serv

The Section 15 Order requ

policies or administrative int

from owning or operating 

specific shoreside shipping 

particularly concerned that n

to operate through a Kore

apparently unable to perf
contracting warehousing truc

and repair functions in the R

The responses to the S

pattern of legislation regula

oversight consisting of some 1

decrees which affect the t

business activities in the ROK 

these laws and decrees appe

carriers and may result in con

the trade by preserving certa

ROK for Korean nationals ef

international shipping lines in 

carriers The Departments 

MarAd have engaged in con

the ROK Government rega

occasions

Legislation was rece

implemented to permit the 

branch offices in the ROK 

reviewing the effect of these d

efforts to conduct such activi

b Inquiry Into Laws 

Government of Ec

United StateEcuad

Notice of Inquiry 

1989 Notice of 

21473 May 1 

Rulemaking 54 

1989

The Commission recei

Enterprises Inc OEI a 

Department of State regardi

unable to reestablish a liquid 

trade because of the Gove

requirement that OEI emp
service In response to the

issued a Notice of Inquiry 

comment on the allegations a

or policies of the GOE which 

the USEcuador trade in o

pursuant to section 19 is war

law in question is a Resolutio

bulk import cargo from th

Ecuadorian flag vessels or 

Ecuadorian shipping compan

Based on the comments 

of Inquiry the Commission 

Resolution on its face appear

to shipping in the trade and 

applies only to the USEcu

However due to questions 

the status of OEI the Comm

to provide interested par

additional information on the 

well as on conditions in the 

Upon review of all com

issued a Notice of Propose

conditions unfavorable to shi

cargo reservation laws The 

Department of State rep

contemplating any initiatives 

trade The proposed rule w

outbound voyage of M

Ecuadorianflag carrier from 
D OF

EQUAL EMPLOYM

The Office of Equal 

knowledge of Federal EE

concepts procedures and reg

comprehensive program of 

The Office works independ

Chairman to provide advice 

in improving and carrying ou

discrimination and affirmativ

The Office is respo

planning special emphasis 

processing and adjudication 

assigned EEO counselors 

Coordinators

The Office works clos

managers and supervisors to

o Improve recruit

minorities and wo

o Provide adequate 

o Facilitate early r

problems

o Develop program 

The Director of Equal E

for counseling of employ

discrimination provides for 

finding adjustment or early 

discrimination accepts or 

discrimination and prepares 
formal

impact

complaints

and effectiveness

and mon

Significant accomplishm

following 1 developed an

for all new employees 2 pla

extensive internal and extern

employee participation 3 

information training and cou

to include the New Orleans 

depth technical support an

Investigations 5 initiated 

Intergovernmental Personne

Black college 6 utilized ex

training at no cost to FMC 

Personnel developed and im

strategies in selected areas 

Placement Coordinator to 

maintained its high standing 

staff with targeted disabilit

female representation in the 

series 10 improved mino

Agency decisionmaking

During fiscal years 1990 

its existing programs and initi

management and employee 

and to foster greater particip
E OFFICE OF IN

The Office of Inspecto

Commission was created b

504 which amended the I

provide for the establishmen

generals at designated Fede

Maritime Commission Thi

law on October 18 1988

On the statutory effec

Office of Inspector Genera

independent entity reporting 

The Inspector General does 

supervision by any othe

Commission The Inspector 

all audits and investigations 

initiate or close a particular 

It is the duty and respo

General to

o Provide policy 

supervise and co

relating to the 

operations

o Review existing 

regulations relatin

and operations 

concerning the 

regulations on th

the prevention an

the administratio

and operations

o Recommend polic

or coordinate othe
by the Commiss

economy and effi

preventing and 

Commission spr

o Recommend poli

or coordinate rela

and other Fed

governmental a

agencies with res

promotion of 

administration o

of fraud and ab

administered or 

identification and 

such fraud or ab

o Keep the Chairm

currently inform

other reports co

problems abuse

administration 

administered or 

recommend cor

problems abuse

the progress mad

action

Significant accomplish

the following

1 Established the Offic

entailed recruiting personn

physical layout of the O

equipment and formulating 

2 Reviewed the organiza

determined those activities 

agencywide audit universe
3 Revised the Conuniss

s

Inspector General activity a

personnel outlining the audit 

Office

4 The Inspector Genera

Coordinating Conference of t

and Efficiency PCIE and 

committees established by th

5

Initiated a comprehen

needed investigations to pre

in Commission programs and 

and one limited inquiry were 

The Office will continue 

and expand the role of the O

anticipate the issuance of a n

the year as well as su

Investigations

Inspector General

will be

will

conducte

contin

Coordinating Conference w

exchange of views for the ins

F OFFI

MANAGIN

The Office of the Mana

direct administration and c

activities and programs to 

achievement of Commission 

The Office provides d

supervision to the

o Bureau of Trade 

o Bureau of Domes

o Bureau of Econo

o Bureau of Hearin

o Bureau of Invest

o Bureau of Admin

Additionally the Office 

administrative direction to t

o Office of the Sec

o Office of the Gen

o Office of Adminis

o Office of Equal E

o Office of the Insp

A significant achievem

the continued coordination of 

involving all operating Bure

initiative in the Trans Pac

concluded with further acti

necessary planning and initia

for future enforcement prog
The Office is currently

1 Guiding the developme

Filing and Information AT

2 Directing under Com

development and implement

Plan

3 Monitoring the installa

Area Network which will ul

system and

4 Directing a scaleddow

report required by section 1

also oversee any staff ass

Commission on Conferences 

The Office of the Man

fiscal years 1990 and 1991 a

staff efforts regarding the de

of the enhanced enforcement 

material weaknesses identifi

Financial Integrity Act repor
1 General

G BU

TRADE M

The primary function of 

administer programs related to 

of common carriers by water u

Act of 1984 and the Shippin

program activities include

o Administering c

programs to ident

commercial and e

trade in order to 

apprised of curren

and regulatory ne

transportation

o Systematic survei

activity

administration

in areas

o

o Processing and 

common carriers 

o Support of forma

Bureau sareas o

2 Surveillance See C
3 Types of Agreements

a Conference and Ra

Conference and ratema

collective discussion agreem

freight rates and practices b

agreements are limited to a g

Commission srules current

conference and rate agreem

applicability of the socalled 

During fiscal year 198

processing of 170 conferenc

amendments to existing agre

Act of 1984 There were 7

effect at the end of the fisca

b Pooling and Equa

Pooling agreements are 

carriers in given trades wh

apportionment of cargo ando

increased efficiencies which 

a result of their stabilization 

agreements also often set fo

features relating to overall 

agreements serve to formal

cargo which is controlled b

trading partners as a result 

quotas or other restrictions

At the conclusion of 

agreements in effect with poo

Eleven agreements of this typ

ocean liner commerce with 

Colombia
c Space Charter an

Space charter agreem

crosschartering of vessel 

among vessel operators The 

of this type is to facilitate 

operations and to reduce ov

agreements also generally co

and to exchange equipmen

During fiscal year 1

agreements and amendmen

114 were in effect at the c

d Joint ServiceCon

Joint service and cons

a new and separate line or 

independent operators as a 

resulting service operates as 

publishing its own tariffs an

its authority is strictly conf

forth in the agreement aut

Eleven joint serviceco

were filed during fiscal yea

in effect at the conclusion 

e Cooperative Wor

Cooperative working 

discussion agreements wh

discuss competitivelysens

inter carrier operational un

the other categories report

working agreements and a

were filed during fiscal year 

in effect at the conclusion 
4 Future Plans and Pr

With the completion o

Section 18 of the Shipping A

further develop its monitorin

generated through this effort 

agreement activities that wil

minutes development ofdeta

and specific monitoring of se

The Bureau soverall mo

focus on the systematic over

in areas relevant to the adm

Shipping Act of 1984 To this 

its series of periodic monitori

and methodology for the ind

and analyzing rate and servic

sections 5 6g and 10 of th

reports provide periodic tren

and other topics its trade stu

conditions between the Unit

The Bureau s controlled 

Commission sactivities under 

monitoring of selected carri

aggregate the Bureau s mon

an uptodate and detailed int

agreement activity and cha

Act sstandards Although t

right they are not an en

reportstudy program develo

and identify activity that may 

appropriate followup by the 

as warranted by the circums

The Bureau anticipates 

of newlyfiled agreements to 

to raise any section 5 6go

preparation of recommenda
complex agreements or issu

agreements under authority 

In support of the Bures

maintenance of databases for 

and the Required Reports Pro

changes in current programs 

programs for additional func

It is anticipated that 

involved in projects related 

The Bureau also expects to 

rulemakings refining andor 

Commission sregulations

Development of a plan 

listingreference book contai

is also proposed

Finally the Bureau s

proceedings is expected to c

involvement will of course 

matter of the proceedings in

1 General

H BU

DOMESTIC 

The Bureau of Dome

administers and analyzes pro

with pricing by common carr

carriers and terminal opera

offshore commerce of the Un

both new and amended tarif

to conform to the Comms

disapproves special permissi

to deviate from certain ta

contracts and essential ter

common carriers and confe

recommendations in collab

Commission as warranted fo

the Commission and plans d

for processing evaluating an

marine terminal operators

The Bureau is also res

freight forwarders under the 

1984 and under Public Law 

and operators of passenger 

with respect to the financial 

operators to satisfy liability 

voyages or for death or inju

Thus the Bureau of Domest

tariffs filed by ocean commo

marine terminal agreements 

ocean freight forwarders a

vessels for financial respons

The Bureau develops 

policies and standards and 
to its program activities The B

Commission components with 

Commission sregulatory requ

2 Foreign Commerce T

Service Contract Act

a Service Contracts

The Shipping Act of 198

and conferences of such carrie

with shippers andor shippers 

is defined in the Act as

a contract between 

carrier or conference 

commitment to provide 

cargo over a fixed time 

carrier or conference c

schedule as well as a 

assured space transit tim

features the contract m

event of nonperformanc

Each contract entered 

Shipping Act of 1984 must 

Commission and at the same 

essential terms must be filed 

available to the general publ

terms must be offered to all 

The essential terms of 

o The origin and de

geographic area

o The commodity in
o The minimum v

o The linehaul ra

o The duration

o Service commitm

o Liquidated dam

The variables which ca

are almost infinite there

significant freedom to tailor 

to their commercial needs

During the fiscal y

regulations governing the 

essential terms The purpos

modification of service con

clerical error Under the 

contract essential terms are 

approved the modified ess

all other shippers and shi

period of time During 

received 20 requests for mo

to clerical or administrative 

granted 13 requests and den

at the close of fiscal year 1

Another service contr

No 88 7 MostFavoredS

limited contingency clause p

rates to permit the contract 

offer of another carrier or 

published in a tariff or set fo

the Commission The new r

Crary Eddy clauses in serv
On April 12 1989 the 

1 89 to ocean common carri

addressed the Shipping Act 

to service contracts and the n

the contract sliquidated dama

the Commission advised ca

service contracts must conta

by the contracting parties su

service contract contained in 

may not be vitiated by any ot

as a provision providing for 

minimum as the shipper sex

carrier breach and 3that liq

not be de minimis so as to giv

though it did not meet its co

During fiscal year 1989 

contracts These contracts w

common carriers and 25 con

approximately 7600 shippers 

foreign commerce both inbo

b Controlled Carrier

A controlled carrier is 

operating assets are directly 

by the government under w

common carrier are operated 

1984 46 USCapp 1708 p

may maintain rates or cha

Commission that are below a 

nor may any such carrier 

unreasonable classifications 

In addition such rates c

regulations of a controlled 

permission of the Commissio

30th day after the date 

Exceptions to these proscrip
carriers of a state whose ves

United States to receive mo

The Bureau of Domes

filings of controlled carriers 

for rate increases and decre

1989 controlled carriers filed 

The Bureau also acted on 

filed by controlled carriers

c Common Carrier 

Program

Every common carrier 

of the United States and oce

section 15bof the Shipping 

and 46 CFR Part 582 to file 

Policies and Efforts to C

Commerce of the United Sta

with the Secretary of the C

signed by the Chief Executive 

ocean freight forwarder Se

provide that failure to file th

in a civil penalty of5000 fo

The information obtained u

used to maintain continuous 

activities and to provide a de

An automated program 

receipt of certifications from 

the year approximately3000 

manner In conjunction with 

the Bureau undertook an en

nonfilers of certifications 

during fiscal year 1990
d Inactive Tariffs

During fiscal year 1

Regulation continued a co

commerce tariffs currently o

purpose of this review was 

appeared to be inactive or no 

waterborne foreign commerc

tariffs reflect inaccurate inform

while adding to administrativ

be inactive if it had not amen

twelve month period had no

certification and could not b

As a result of this review an o

carrier tariffs should not be c

was served during fiscal y

cancellation of 246 inactive t

e Tariff Processing

During fiscal year 1

Regulation received and rev

which 141 were rejected 

amending existing tariffs an

applications were processed 

cancelled tariffs and canc

continuing During fiscal y

cancelled tariff pages were r

3 Domestic Tariff Activ

a Authority

Common carriers opera

commerce are required pursu

Act 1916 46 USCapp 817 

Shipping Act 1933 46 USC

charges and rules with the 
Domestic Regulation must e

applicable statutory requirem

also require the filing of 

operating data by vessel o

domestic trades

b Inactive Tariffs

During fiscal year 

Regulation continued a prog

foreign tariffs to identify ta

inactive or no longer oper

offshore waterborne comme

of this program an order to 

tariffs should not be cancel

1989 and resulted in the ca

tariffs during the fiscal yea

c Tariff Processing

During fiscal year 198

were received and reviewe

addition 23 domestic spe

processed The Bureau also p

pages amending existing tar

4 Marine Terminal Act

Marine terminals ope

entities provide facilities an

and passengers between lan

receipt and delivery of carg

Commission is responsible 

certain agreements and tari

industry
a Agreements

During fiscal year 1

agreements and agreement m

terminal services and facilit

became effective upon filing 

exempt entitled marine term

period requirements of the S

approval requirements of the 

not entitled to the Commiss

processed under the applica

Seven agreements were c

Commission sjurisdiction 

agreements were in effect at 

The Commission is also 

labormanagement agreemen

Agreements Act of 1980 PL

provides that such agreement

funding of collectively bargai

other than a uniform manho

handled or type ofvessel or eq

effective upon filing with the 

1989 three labormanageme

filed

During fiscal year 198

moratorium on the assessm

unified terminal service agre

enforcement activities is pend

of the staff recommendations 

17 That fact finding addresse

agreements are subject to the 

The Bureau continued 

program regarding all existing 

the Commission
b Terminal Tariffs

The Bureau carried ou

terminal tariffs by reviewing 

during fiscal year 1989 At th

460 terminal tariffs on file w

files

completed

during

its

fiscal

review

year

of

1989

all te

5 Freight Forwarders

The ocean freight for

persons who in effect hold t

departments for hire Ocea

shippers by arranging for the 

common carriers and by 

requirements safety requirem

to exports Ocean freight f

exporter for handling an 

compensation from the ocea

to carry the cargo

Congressional findings 

within the ocean freight 

enactment of section 44 of 

841b which vested the Co

licensing and regulation of ind

At that time malpractices i

Given the importance of m

US businesses especially s

expertise to do their own 

licensing and limited oversig

necessary to eliminate secre

to ensure that unscrupulo

irresponsible persons were p

freight forwarders Althoug

freight forwarders has increa

malpractices are now more 
The continued mainte

technical qualifications and 

ocean freight forwarder are 

license issued by the Comm

required to be maintained o

issued a license need not be 

approval for a change in the 

license transfer to another p

the bond depends upon the n

ocean freight forwarder pro

amount is 30000 It is 

unincorporated branch office 

incorporated office of a forw

license

With the enactment o

Commission sregulatory res

industry are now found in se

statute the basic licensing re

place However the pro

receiving a license has been 

no longer have to be indepe

barred from collecting compe

in which they have a beneficia

agreements by and among 

commerce of the United Sta

filed with the Commission 

agreements are afforded no 

The Shipping Act 191

persons operating as forwarde

of the United States to obtai

entities required to file a su

The Commission rece

freight forwarder licenses an

licenses or other organization

while 57 applications were p

1988 Of these 86 new licens
were withdrawn one was 

applicants because of deficie

Fiftyeight applications for 

changes were approved and 

because of deficiencies Eig

at the close of fiscal year 19

During fiscal year 1989 

were revoked resulting prim

maintain the required surety 

issued and 16 licenses were 

year 1600 licensed forwar

Commission sjurisdiction ap

number of licensees at the c

Onsite compliance inv

of the Commission seffort to 

forwarders comply with the 

and the Commission sreg

investigative reports were rec

were pending review at the b

of these reports resulted in 

referral to the Bureau of He

of appropriate civil penalties 

to require no formal correc

pending review at the close 

Other activities during 

o The processing of 

new bonds rider

bonds

o The review and 

complaints conce

non payment of 

carriers
o The issuance of 83 

of 16 revoked lice

obtained

o The receipt of info

in excess of 10

forwarder bonds

During fiscal year 1989 

Forwarders Association of A

judicial review of the Comms

for rulemaking to amend six 

freight forwarder rules 46 C

the Commission sdecision d

6 Passenger Vessel Ce

The Commission is resp

2 and 3 of Public Law 89777 

have been implemented by th

in 46 CFR 540 Security 

Owners charterers and ope

vessels having berth or state

more passengers and embar

ports must establish financia

liability incurred for death 

persons on voyages to or fro

indemnify passengers for non

which they would be entitled 

submission of evidence of fin

with Subpart B of 46 CFR 

Certificate of Financial Resp

for Death or Injury to Passen

Certificate Casualty Upo

in accordance with Subpart A 

will issue a Certificate 

Indemnification of Passen

Transportation Certificate P
With respect to the 

responsibility must be estab

provided in section 2 of 

operating more than one 

responsibility for its fleet un

based on the passenger capa

of financial responsibility 

Law 89777 for the issuanc

determined by the Commiss

as the number of vessel 

collection policy sailing sch

The maximum amount wi

million except as a selfins

amount The Commissios

Commission imposed lim

increased

The certificates mus

Customs officials at the por

from the United States 

Service will refuse clearanc

proper certificates on bo

Commission confirms comp

During fiscal year 19

applications for passenge

separate vessel certificat

performance certificates 17 

were amendments to ex

certification requests were 

vessel certificates have on fi

financial responsibility in exc

certification and over 1 bi
7 Automated Database 

The Bureau of Domes

automated database systems T

System 2 The Regulated Per

System 4 The Microfiche Sy

Forwarder System The Service 

key service contract data suc

commodities and rates The 

discrete number to each perso

provides their address and b

System lists key data conta

Commission The Microfich

locating cancelled tariffs whi

Ocean Freight Forwarder System 

for the tracking of licensees in

During fiscal year 1989 

program another automated s

filing activity The system pr

1990

A local area network L

in the Bureau late in fiscal ye

LAN will act as a gateway 

Automated Tariff Filing and 

Bureau staff with access to lo

and the Commission

8 Shippers Association

The Shipping Act of 1984 

for the first time as entities in i

They are defined in the Act a

non profit basis consolidate th

or enter into service contracts 

the carriers and conferen

associations It also provides 

service contracts on behalf 
associations have not been g

1984 Act In fiscal year 1

involving 20 shippers asso

1984 became effective a to

entered into a total of 174 s

and conferences

9 Financial Analysis

The Bureau of Dome

and financial expertise to 

rates for the transportation 

by common carriers in t

commerce of the United 

technical assistance to othe

The Bureau continued 

in the domestic offshore co

effort involved the receipt a

data submitted in complian

During the year the 

increase filed in the Haw

involved in an inquiry conc

in the Guam Trade

Financial expertise is 

passenger vessel certificatio

a full onsite audit was cond

revenue collected by one 

financial statement of a com

program as an insurer was 

Accounting assistance 

Hearing Counsel in connec

and litigation activities
10 Support Activities

The Bureau of Domest

primary information and dat

activities and programs

Investigative activities r

and supporting documentatio

staff Automated data base

index and service contract sy

identification purposes and ac

is retrieved and provided to th

the appropriate field office

The Commission sfield 

general data lists of regulated 

office jurisdictions This data 

efforts but serves localized 

concerning Commission regu

During the past fiscal y

submitted several chapters an

Section

related

18

subjects

Report

which

on the

were

Shipp

in

The Bureau also supported o

Section 18 Report activities by 

which was tracked to study pric

industry and service contract 

the analysis of service contra

period

11 Rulemaking and Doc

The Bureau initiates or 

Commission docketed procee

Bureau was involved with D

MostFavoredShipper Prov

regulations to prohibit clauses 
rates of other carriers and co

Publication of Free Time an

Carrier Equipment Interchang

to require the publication of 

use of carrier provided equ

Contracts to permit the corr

errors in service contracts un

No 8903 Tariff Filing Not

carriers providing porttopo

offshore trade to publish o

existing individual commod

items Docket No 8817 Inte

stating that common carriers 

shippers association to obta

Justice Review Letter prior 

negotiation process Docket 

Changes that requires comm

that the effective date for ra

a given shipment is the date 

or its agent and Docket No 

Availability of Mixed Comm

shipper more clearly and p

will be available only to shipp

participated in Fact Finding 

and Services Provided at Mari

the Commission sjurisdictio

industry practices

1 General

I BUR

ECONOMIC 

The Bureau of Econom

statistical and financial anal

Bureau augments the Commis

and enhances the agency sres

and trends in US ocean co

industry

Major activities of the B

o Preparing the fivey

of the Shipping Ac

Act on the interna

o Coordinating the 

groups which were 

gathering informat

18 Study

o Organizing and c

Section 18 Study 

formed to receive 

on the conduct of 

o Preparing financia

for use in overseei

domestic offshore 

o Preparing special 

developments in l

o Providing informa

needs for economic 
2 Section 18 Study

The Bureau s major 

complete the collection and 

18aand finalize the repo

Shipping Act of 1984 The 

the Shipping Act of 1984 S

submitted on September 2

that Act to the Congress an

the Department of Trans

and the Federal Trade Com

on Conferences in Ocean S

also to receive a copy of 

Commission had not been f

An Executive Summary of th

an overview of the Repors

been included in Chapter V

3 Future Plans and 

The Bureau will conc

on developing a strategic 

become a framework for 

development of its program

resources to the various pr

Section

The

18

Bureau

Report

will

on

analyz

the 

Department ofTransportatio

Federal Trade Commission 

effort may be continued on 

the Advisory Commission h

18aof the 1984 Act leve
J BUR

HEARING 

The Bureau of Heari

counsel in formal adjudi

non adjudicatory investigatio

designated by Commission ord

by the Commission Bureau 

where intervention is perm

complaint proceedings institu

Act and section 11 of the 19

designated Investigative Off

proceedings In addition to th

Bureau participates as a pa

formal proceedings in orde

affecting the shipping indus

distinguished from issues deri

the litigating parties are ad

also participates in an adviso

Commission rules and regu

may participate in court litiga

On request the Bureau 

Bureau attorneys provide 

Investigations during field inv

reports completed by that 

Bureau of Hearing Counse

violations of the shipping sta

compromise and settle civil 

those violations If settleme

as prosecutor in formal Comm

in the assessment of civil pena

in conjunction with other 

initiatives such as the Trans

the Trans Pacific Malpractice 
At the beginning of f

reports were pending final r

the fiscal year 46 new enforc

the Bureau of Investigati

compromised and settled a

for formal proceedings Twen

pending resolution on Septe

At the start of fiscal ye

nine formal proceedings D

participated in seven new form

in which the Bureau participa

the Bureau was involved in tw

of the fiscal year

At the beginning of fisca

for legal advice pending in t

for legal advice were received 

advice projects were comple

matters were pending in the 

The Commission sincre

resulting in expansion in all 

result of this effort the Bure

5

civil penalties in fiscal year 1

500 0 was compromised 

This included some of the 

respondents entered into by 

Act and represented the larg

collected by the Commission 

reached with all segments of t

forwarders marine terminal 

US foreign trades

In April 1989 the Co

Investigation No 18 a non adj

rebating and other rate malpr

As a direct consequence of the 

of1000have resulted w
NVOCC Generally as a 

emphasis on enforcement an

Fact Finding No 18 activity 

civil penalty collection will c

In fiscal years 1990 and 

pursue violations of the ship

continue to offer legal advic

staff

K BU

INVEST

The Bureau ofInvestiga

conducts investigations of all

carriers non vesseloperat

forwarders shippers ports a

ensure compliance with the st

by the Commission

The Bureau maintains 

the Headquarters Office in 

Offices in the major port citie

New Orleans New York San 

Rico In addition to investi

each District Office repres

jurisdiction provides liaison 

maritime industry and the sh

intelligence of regulatory si

wide conditions for the Com

The Bureau investigate

pursuant to major Commissio

In addition the Bureau invest

a local level These activit

conjunction with fact finding 

The following practi

investigations conducted by t

o

Illegal rebating b

rebates by shippe

carriers and ship

o Misdescriptions a

other malpractices 

and other persons
o Activities of ocean 

to agreements w

agreements and m

prior to filing w

carried out in vio

o Failure by commo

covering their rat

that are in effect 

and

o Operating as an 

license issued by 

statute or regula

The Bureau ssurveilla

o Review of service 

with statute and 

o Review of non 

operations

o Post licensing a

licensed freight fo

operations confo

o Audits of passen

financial protect

Bureau liaison acti

coordination with other 

regulatory information and 

shipping industry and the 

complaints within a Distric

The Bureau assists th

formal proceedings before 

and surveys for use in pr
revision reports trade inform

action

During fiscal year 1

investigate malpractices in t

emphasis on the Trans Pacif

Bureau sintensified efforts i

in the development of a signif

the practices of vesselopera

operating common carriers 

interests The investigative 

Pacific Malpractice Program w

on other trades routes in f

Bureau continues to monito

North Atlantic trades as part 

Initiative which began in fisc

The Bureau conducte

inquiries in fiscal year 19

transferred to the Bureau of 

action See Chapter III A 

were conducted in fiscal year 

service contracts freight fo

audits of non vesseloperatin

Coordination between 

and US Customs Service s

year 1989 as a part of the 

between the agencies for 

information Part of the focu

the development an ag

investigators may access in

community in Custom sAutom

database The exchange 

increase in fiscal years 1990 

toward automation and the 

regarding their regulatory ac
During fiscal year 1989 

its investigators with formal t

participation in the White Co

Federal Law Enforcement 

Glynco Georgia In addition 

provided with training in t

support of Bureau operation

will focus on the enhanceme

Bureau personnel continued 

training programs and midle

training for senior investigat

In fiscal year 1989 the 

the Houston Los Angeles 

District Offices A Special As

also hired in August 1989 to 

guidance in the planning co

Bureau starget malpractice 

Bureau personnel resulted in 

of field investigations condu

At the beginning of fis

investigations in progress 

investigations were initiated 

scheduled for inquiry Com

leaving 253 cases pending 

Appendix F summarizes the 
L ADMI

PRO

Office o

Bureau of 

The Bureau ofAdminis

administration and coordina

1 Office of Administrativ

2 Office of Budget and F

3 Office of Personnel

4 Office of Special Stud

Many of the functions 

Administration are reflected 

infra

The Office of the Dire

the procurement of the Cos

year 1989 the following ma

ATFI procurement process 

o The Commission 

of Inquiry procee

the original func

remote retrieval 

o Issued a second d

Proposals RFP 

o Received and ev

firms or teams 

o Awarded a contra

system and
o Had its new contra

phase ofthe system 

concept including 

In fiscal year 1990 t

Commission sexercise of cont

iedevelopment and operatio

findings are made Full oper

begin in fiscal year 1991

The Office of the Dire

Commission s27th Annual Re

The Director is Age

Commission representative a

to the Small Agency Council 

Executive Secretary and Com

Commission sSection 18 Stu

which met in April 1989
1 Office of Administra

a General Office Re

The Office of Admi

administers a variety of ma

principally provide administ

program operations of the C

Office ofAdministrative Servi

Bureau of Administration

The office ssupport pr

procurement of administrati

management space manage

and records services reproduc

and equipment maintenance 

major functions are to secure 

equipment

mission and

and

to

services

formulate

requi

reg

methods governing the use 

services in compliance with t

FAR the Federal Property M

the Federal Information Re

FIRMR and other appropr

b Office Program O

The program objectives 

Services are to

o Execute Commissi

and any other pro

the Government to 

o Control and admin

utilization invent

of property
o Develop and c

telecommunication

headquarters and 

which includes ins

telecommunication

o Administer progra

workplace environm

operations for he

which include pla

interpreting ar

specifications and 

furnishings for off

o Manage the receip

of all supplies for

support of Commis

o Coordinate and c

copying and graph

house or by outsid

o Regulate receipt 

mail

o Coordinate the use 

at headquarters wit

and parking

o Arrange for tra

Commission locat

o Conduct safety i

Commission seme

o Manage the rete

Commission reco
o Direct the Comm

s

and goal setting u

c Accomplishments

During fiscal year 198

Services

o Initiated the lease 

space and provide

o Provided tempora

operation and in

establishing a per

o Initiated the reloc

the Los Angeles fi

and better locatio

o Established an a

agency furniture 

program for reg

unserviceable item

o Restructured the 

including staffin

responsibility adju

o Printed and distrib

final RFP for awa

Filing and Inform

o Procured and dist

equipment needed 

program througho

field locations
o Arranged for e

initiatives in both 

and Bureau of In

o Established the n

at the Headquas

allocation and m

new operation 

consultant to ass

development of p

o Revised and upg

professional and 

mobility and care

o Conducted an FT

Headquarters a

recommendations 

o Established a pr

clerical assistanc

o Printed and distr

Compendium on 

o Conducted a 

Headquarters and 

the Headquarters 

recommended pur

copiers

o Disposed of and re

system throughou

o Conducted an i

procurement prog

to improve its effe

changes as appro
o Drafted the Congre

property dispositio

o Revised the Comm

Telephone Usage

d Office Prognosis

In fiscal year 1990 the 

initiatives begun in fiscal y

objectives surrounding the fol

o Establishing a c

purchases

o Planning procure

telecommunication 

throughout Headq

o Reestablishing an

reference files a

resources

o Resolving ongoing 

accessibility

o Continuing office i

Commission Orde

Standard Operatin

areas of pro

telecommunication

o Resolving and f

Headquarters Los 

2 Office of Budget and 

a General

The Office of Budg

administers the Commissios

and

physical

is responsible

fiscal and

for

staffing

optim

with interpreting governmen

and programs and developin

submission to the Congress a

Budget The Office also adm

for agency funds travel and 

the Commission simprest fu

the Commission sChief Fina

b Objectives

The objectives of the O

o Submit annual bu

to OMB and the 

o Execute the budge

properly expende

o Prepare regular fin

decisions

o Administer the c

employment

o Collect all fees and 

o Process payments 

accordance with t
o Ensure resources 

waste error an

o Process travel ord

time limits and 

regulations

o Review internal c

to ensure that th

and develop proc

o Administer the C

s

and manage the 

Program

c Achievements

During fiscal year 1989 

Management

o Collected and de

fines collections 

vessel certificatio

o Provided the C

Deportment of T

participation in 

employee payche

agency sparticip

System

o Prepared Merit 

o Coordinated and 

estimates for th

budget and the f

o Participated in 

hearings
o Managed the Co

s

Management progr

o Provided managem

on workyears fund

o Reviewed and upd

accounting control 

with OMB GAO a

o Assisted the Office 

Federal Home Loa

Prompt Payment Re

o Prepared an Impac

proposed reduction

an analysis of incre

the FY 1989 and 1

o Participated in th

automation

o Completed office pr

manual and

o Studied the use ofa 

purchases

1

3 lice of Personnel

The Office of Personne

management programs inclu

training position classifica

occupational safety and hea

employee relations performan

retirement Significant achiev

outlined below

a Program Developm

A new Commission Ord

System Including Senior Exe

Appraisal System was finalize

which incorporates all of the 

22 was circulated to all mana

prior to issuance and their co

extent possible The order w

all the requirements of law an

new order is to simplify a

procedure and to make it a

PMRS system

A new Commission O

Program was prepared and is

program a percentage of accr

employee can be donated to 

leave because of a medical e

the program the Commissis

and recipients at other agenc

of annual leave In every insta

recipients have been acted 

experimental Leave Bank Pro

at the Commission but ultima

program is working so well
The Commission sDrug 

to incorporate the comments 

Coordinating Group and res

and approval The Office 

Commission to be included i

for Proposal for collection a

Commission Order 65A

amended to exclude fro

reconsideration of nonSES 

under the new PMS plan

Commission Order 95 

amended to eliminate the p

themselves and include the 

Board

b Recruitment and 

Having concluded the 

effort since 1978 the Office 

officials to maintain staffi

coordination with the Managi

and selecting officials as we

and quick advertising and fi

this effort to maximize worky

During the year the Commi

among all agencies in perce

disabilities and offered speci

in Washington DCNew Y

An expanded investigat

efforts were concentrated in 

country where the Commiss

major effort was made durin

office to attract well qua

candidates A total of 37 new 

year All schedule C and o

with a change in administra
c Employee Relatio

The Office prepared a 

with personalized benefits 

benefits under the health a

retirement Thrift Savings 

leave programs This propo

being implemented

Employee counseling 

New York Miami San Fran

monitored during the year a

advised of the services pro

confidential voluntary progr

and assistance available to 

Efforts were made to provid

in New Orleans and Hous

several wellness programs pr

Management AIDS Balan

Management etc A bimon

was distributed to all emplo

Arrangements were mad

retirement to participate in 

program held by the Federal 

to the Commission The Offi

Open Season sponsored the 

made the Check Book He

employees at no charge

The Office worked clos

agency participation in the bl

a system of coordinators with

coordinators were trained in 

blood donations Two onsit

The Office continued to 

responsibilities in the are

performance including the g
and awards correcting discip

to resolve performance or c

worked closely with Comm

employees affected by adve

rights All employee relatio

during the year

d Training

The Office worked clo

Board to address the issues 

Commission scadre of sen

PMRS managers and supervi

sanctioned and Chairmana

executives and one for the P

of ERBapproved core man

employees must complet

managerial training designe

The PMRS onsite training i

on a firstcome first served 

was developed and issued to 

the Commission would pay 

Onsite training progr

included a Salute to Secretari

Workshop Supervising Emp

Leave and a course in P

instances of offsite training 

procedures were put in to p

requests and followup once 

and review course evaluatio

e Performance App

With the publication o

employees PMRS managers 

site training in performance 

new system In addition d

and nonPMRS performance 
and issued by the Office to 

reminder memos and instruct

reviews performance appraisa

prepared and issued on sched

PMRS performance awards fo

submitted to the Chairman 

awards were timely Onsite 

reviews were conducted and a

that all employees had a posit

standards

f Incentive Awards

A campaign to revitaliz

program resulted in a signifi

suggestions received and appr

the year

The Commission sIn

administered in a timely fashi

on internal awards successful 

oftheMonth Award and the 

nomination of several employ

SES rank award the Arthur 

Executive of the Year Award a

Year Award

g Position Classifica

The major recommendati

study of the Commission sgra

during the year and efforts ma

promotion requests were succe

monitored special pay rates 

country and issued decisions i

rate cases
During fiscal year

continue to advise the Comm

ensure the maintenance of 

within the Commission
4 Office of Special Stu

a General Office R

The Office of Special 

guidance for the agency sinf

efforts These efforts suppor

of its statutory mission to incl

automation complaint 

administration The office is 

of management analysis and 

environmental impact studies

b Major Accomplis

During fiscal year 1989 

o Developed and beg

the conversion o

microcomputer 

Replacement Plan 

and is presently 

developed and pr

classes onsite 

Specialized micro 

developed

field offices

and prov

o Initiated a Forms 

the potential for au

storage of curren

o Administered the 

contract which wi

software for a Loc

serve as the gatew

Tariff Filing and 

micro computers ac
been installed tra

and testing of the 

target date for a

LAN is set for A

o Provided technica

Group in variou

during the contra

1989 theATFI co

Research Corpo

Exchange Interna

o Control and auth

service contracts 

establish accoun

service contract b

c Ongoing Activ

o The FormsAutom

fiscal year 1990 a

fiscal year 1991

o Implementation 

will serve as the 

fiscal year 1990

o Technical suppo

and implementa

office will contin

to ensure the sm

to the LAN Gate

o The office will re

Commission per

in word process
o The office is dev

current Producti

to the Departmen

o Analysis to iden

laborintensive o

d Description ofF

During fiscal year 1991 

information resource manag

the effective efficient and 

management principles syst

APPEN

W

VI

0

VI

O

CC

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0

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W W 6 0

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APPEN

IU0

C 

7 

CO 

0 

O 

la 

CO 
Formal Proceedings

APPE

COMIVIISSION 

Fiscal 

Decisions 

Discontinuances Dismiss

Initial Decisions Not Revie

Report on Remand from

US Court of Appeals 

Remanded 

Rulemakings Final Rules 

Total 

Applications to Correct Service 

Special Dockets 

Informal Dockets 

Oral Arguments 
APP

CARRIER AGREEME

Fisca

Carrier Agreements Filed in FY 198

including modifications

Foreign and Domestic Com

Agreements Processing Categories in 

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon Fili

Rejection of Filing 

Formal Extension of Review 

Approved Under Shipping A

Canier Reports Submittedfor Comm

Shippers Requests and Com

Minutes of Meetings 

Pooling Statements 

Operating Reports 

Index of Documents 

Consultations 

Carrier Agreements on File as ofSe

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Cooperative Working Agen
APPE

TARIFF AND TER

FILING AND STATU

Tariff Filings Pages

Foreign Filings 

Domestic Filings 

Terminal Filings 

TOTAL 

TariffPublications

Foreign On Hand 1088 

On Hand 1089 

Domestic On Hand 1088 

On Hand 1089 

Terminals On Hand 1088 

On Hand 1089 

Special Pennission Applications

Total Received Foreign 

Granted 

Denied 

Withdrawn 

Total Received Domestic 

Granted 

Denied 

Withdrawn 

Domestic Investigation and Suspensi

Completed 

Pending 

Service Contracts Filed 

Terminal Agreements Received

including amendments 

On Hand 1088 

On Hand 1089 
APPE

CIVIL PENALTIES COM

Fiscal Y

Allstate Trading Co 

Aloha Pacific Cruises Limited Partn

S Monterey Limited Partners

American Transport Lines Inc 

Amertrans International Co 

Benel International Co 

Big Roc Tools Inc 

Coaster Company of America Inc 

Crossocean Shipping Co Jugolinij

DBBerelson Co 

EKFasteners Inc 

Elegant Products Inc 

Ffairtime 

Food Products International Inc 

Greenbali Corp 

Hanstai International Inc 

Intex Corporation 

Korea Shipping Corp 

Lloyd Bermuda Line Inc 

Matson Terminals Inc 

Mediterranean Shipping Company 

Mitsui Air International Inc 

National Shipping Co of Saudi Ara

Orient Overseas Container Line Inc 

Pac Bridge Shipping Ltd 

Pacific Motif Inc 

Philip Karahalis 

Raymond Whitcomb NY Inc 

Showa Line Ltd 

Society Expeditions Cruise Inc 

Tatung Company of America 

USSouth Atlantic

GulfCentral American Freight A

Warner Forwarders Inc 

Total Civil Penalties Compromised

or Assessed 
APP

FIELD IN

Fisc

Surv

Actio

Pending 1088 41 

Opened FY 1989 191 

Closed FY 1989 139 

Pending 93089 93 
APPE

STATEMENT OF APPROP

RECEIPTS FOR THE FISCAL YE

APPROPRIATIONS

Public Law 100459 approved Oc

the Federal Maritime Commissio

Merchant Marine Act of 1936 as 

services as authorized by 5 US0

authorized by 31 USC1343 b 

authorized by 5 USC59015902 

be available for official reception 

OBLIGATIONS AND UNO

Net obligations for salaries and ex

30 1989

STATEMENT OF RECEIPT

the Treasury for the Fiscal Year E

Publications and reproductions

Fees and Vessel Certification

and Freight Forwarder Applic

Fines and penalties 

Total general fund receipts