Federal Maritime Commission

FY 2025 Budget Justification

March 2024
FMC Budget Request Fiscal Year 2025

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Table of Contents

Introduction .................................................................................................................................... 1

Oversight Transformation............................................................................................................ 1

Mission and Priorities.................................................................................................................. 2

FY 2025 Budget Overview............................................................................................................... 4

FY 2025 Budget Request Detail ................................................................................................... 4

Appropriation Language ................................................................................................................. 6

Investigations and Enforcement ..................................................................................................... 7

Enforcement Priorities ................................................................................................................ 7

Projected Growth and Activities ................................................................................................. 8

Charge Complaints ...................................................................................................................... 8

BEIC Reorganization..................................................................................................................... 9

BEIC Case Management .............................................................................................................. 9

Ocean Shipping Reform Act of 2022 ............................................................................................. 10

Vigorous Oversight Ensuring Compliance to Protect the Public................................................... 11

FMC Audit Program................................................................................................................... 11

Tariffs and Service Contracts..................................................................................................... 12

Licensing and Financial Responsibility for Ocean Transportation Intermediaries 

and Passenger Vessel Operators ............................................................................................... 13

Consumer Assistance .................................................................................................................... 14

Informal Dispute Assistance...................................................................................................... 14

Litigation Before the Commission ............................................................................................. 14

Ensuring Fair Competition Through Rigorous Review and Extensive Monitoring 

of Shipping Act Agreements.......................................................................................................... 16

International Collaboration........................................................................................................... 17

Evidence Building .......................................................................................................................... 17

Information Technology ................................................................................................................ 18

Administrative Support................................................................................................................. 21

Hiring/Human Resources .......................................................................................................... 21

Lease and Office Space Improvements..................................................................................... 22

Continuity of Operations/Mission Resilience............................................................................ 22

Equity at the FMC.......................................................................................................................... 23

Equity Action Plan ..................................................................................................................... 23

Diversity, Equity, Inclusion and Accessibility ............................................................................. 23
FMC Budget Request Fiscal Year 2025

ii

The Office of the Inspector General.............................................................................................. 25

Organizational Information........................................................................................................... 27

Organization Chart .................................................................................................................... 27

Statutes Administered............................................................................................................... 28

Strategic Goals and Stewardship Objective............................................................................... 28
FMC Budget Request Fiscal Year 2025

1

Introduction 

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

in the United States over competition, practices, and service in the ocean shipping industry. Our

mission is to ensure a competitive and reliable international ocean transportation supply system 

that supports the U.S. economy and protects the public from unfair and deceptive practices.

Facilitating commerce and protecting U.S. shippers remains the essential focus of the FMC.

The Commission requires additional resources to carry out its responsibilities to ensure vigilant 

industry oversight, enhance enforcement, and improve service to shippers and consumers.

The Fiscal Year 2025 Congressional Budget Justification aligns with the FMC’s Fiscal Years 2022-2026 

Strategic Plan goals and objectives. The strategic plan includes performance measures to ensure 

that the Commission meets its mission, statutory responsibilities, and the needs of a changing 

ocean transportation supply system. The strategic plan will be revised in FY 2024 to incorporate 

operational changes resulting from the Commission’s implementation of the Ocean Shipping 

Reform Act of 2022 (OSRA 2022). 

Oversight Transformation 

The historically high demand for Commission services continues beyond the COVID-19-related 

supply chain congestion era. The global maritime cargo delivery system remains highly susceptible 

to disruptions caused by shocks that can take place anywhere in the world. The FMC has 

transformed operations accordingly to meet these ongoing increased challenges, and new 

Congressional directives created by OSRA 2022. The Commission prioritizes assistance to U.S. 

exporters, enforcement, and consumer assistance to U.S. shippers and cruise passengers through 

its FMC Audit program, providing enhanced resources for the Office of Consumer Affairs and Dispute 

Resolution Services (CADRS), and the realignment of enforcement and investigations under the 

newly created Bureau of Enforcement, Investigations, and Compliance (BEIC). In addition, OSRA 

2022 provided the Commission with enhanced regulatory authority and mandated rulemakings, 

data collections, charge complaints, and the development of enhanced web resources to serve the 

shipping public. The legislation also tasked the FMC to contract with the National Academies of 

Sciences to conduct a study examining best practices for chassis pools. OSRA 2022 required the 

Commission to support the activities of other agencies examining supply chain issues, including 

multiple studies underway at the U.S. Government Accountability Office. Further, the Commission

is actively supporting cross-agency initiatives related to OSRA 2022 and the maritime supply chain.

The Commission has undergone considerable organizational change in a short period of time. With 

a directed focus, increased funding, and additional regulatory authorities, the Commission is a 

strengthened organization, better prepared to adapt to changes in the industry and economy to 

meet its mission. Efforts underway in FY 2024 continuing into FY 2025, including important 

information technology (IT) investments and plans for modernization, will significantly increase the 

scope and benefits to the shipping public from the work that the FMC accomplishes with our

planned growth in staff to 167 employees.
FMC Budget Request Fiscal Year 2025

2

Mission and Priorities 

Ocean Shipping Reform Act of 2022

Implementing OSRA 2022 is a leading priority for the Commission. By FY 2025, the majority of OSRA 

2022’s enhanced authority and provisions for revised regulations will be implemented and fully 

integrated in support of our mission. Key work related to rulemakings in FY 2023 included issuing a 

Notice of Proposed Rulemaking (NPRM) on detention and demurrage invoicing and billing, a 

Supplemental NPRM proposing a definition for unreasonable refusal to deal or negotiate with 

respect to vessel space, and a final rule updating Commission regulations providing the Commission

the ability to order refunds in addition to or in lieu of civil penalties for violations of the Shipping 

Act, Commission regulations, or Commission order. Additional rulemakings required under OSRA 

2022 will continue in FY 2024.

Importantly, OSRA 2022 required the Commission to develop a process for charge complaint 

investigation and adjudication. The FMC developed and posted interim guidance to its website in 

FY 2023 along with an accompanying webinar to help the public understand the process. In less 

than eighteen months since the enactment of OSRA 2022, more than $2 million in charge 

complaints have been voluntarily waived or refunded under the new process. 

In addition, the Commission has accomplished significant progress in meeting legislative 

requirements to conduct specific data collections and studies. The requirement to collect and 

publish information from VOCCs on import tonnage and volumes, as well as empty container 

metrics, has progressed through the Paperwork Reduction Act process, and it will become an ongoing part of the Commission’s analytics work from FY 2024 forward.

Increased Investigations and Enforcement

The FMC protects the U.S. public through its investigatory and enforcement programs that identify, 

deter, and stop unlawful activities of regulated entities – ocean carriers, marine terminal operators, 

and ocean transportation intermediaries. OSRA 2022 identified additional areas of attention for the 

Commission enforcement and compliance activities. A reorganization in FY 2023 realigned the 

investigatory and compliance branches with the attorneys in the enforcement branch who 

prosecute alleged violations of the law. New enforcement priorities established by the Chairman 

focus on unlawful practices that negatively impact significant portions of the maritime industry or 

appear to cause market distortion. As a result of these changes, the enforcement program has been 

successful in legal actions, collecting $2,896,332 in civil penalties for violations of the law in FY 2023. 

The Commission will continue to add the resources necessary to support enforcement and 

compliance activities that create a meaningful deterrent to unlawful behavior. By FY 2025, the 

enforcement program will have increased staff by 100 percent from levels at the beginning of 

FY 2023. These additional personnel will directly support audits, investigations, and enforcement

proceedings.
FMC Budget Request Fiscal Year 2025

3

Consumer Assistance – Helping Exporters and Importers

The shipping public still faces commercial challenges due to the residual shocks in the supply chain

from the COVID-19 pandemic. OSRA 2022 bolstered the ability of the FMC to help consumers 

respond to these challenges. Several Commission offices work together to handle public inquiries, 

requests for alternative dispute resolution, or file formal complaints before the Commission. The 

Commission will focus on outreach and deploying a consumer affairs and dispute resolution case 

management system that will enable more granular tracking of case characteristics to identify 

emerging obstacles faced by the shipping public. 

Compliance

The Commission’s statutory and regulatory authorities are applicable to international waterborne 

commerce valued at trillions of dollars, as well passenger vessel operations embarking at U.S. ports. 

Vigilant oversight of industry activity by FMC program offices includes compliance, in addition to 

investigations and enforcement. By ensuring regulated entities understand their legal requirements,

and focusing FMC’s compliance resources to address noncompliance in the areas with highest 

impact, the Commission proactively protects the public from unfair and deceptive practices. In 

FY 2023 and FY 2024, the Commission added resources to compliance efforts in multiple bureaus 

and offices. Increased compliance efforts will continue in FY 2025 with outreach to regulated 

entities, including webinars and other educational materials, and revised IT systems to provide

advanced analytical capabilities to drive targeted compliance efforts.

 
FMC Budget Request Fiscal Year 2025

4

FY 2025 Budget Overview 

The FMC’s total budget request for FY 2025 is $48,452,000, an increase of $4,732,000 over the 

projected FY 2024 authorization of $43,720,000.

Of the $48,452,000 requested amount, $35,871,000 is for Salaries and Expenses to support 167

Full-Time Positions (FTP)/153.5 Full Time Equivalents (FTE). The proposed budget provides funding 

to support the Commission’s activities related to the implementation of OSRA 2022, as well as the 

hiring of additional staff initiated in FYs 2022 through 2024. The budget request also supports 

additional mission-critical spending requirements. IT application development totals $2,091,000

and is needed to support imperative ongoing upgrades to antiquated systems that will allow the 

public to better interact with the Commission. In addition, $10,490,000 will be allocated to other 

operating expenses that include rent, building security, ongoing maintenance of IT applications and 

services, and other administrative services.

FY 2025 Budget Request Detail

133.0 141.0 150.9 153.6 2.8 2%

 (11.1) Full-Time Permanent $18,500 $19,500 $22,230 $25,743 $3,513 16%

$430 $500 $478 $552 $75 16%

$6,900 $6,000 $8,223 $9,576 $1,353 16%

$25,830 $26,000 $30,930 $35,871 $4,941 16%

$215 $255 $255 $255 $0 0%

$13 $13 $13 $15 $2 8%

$331 $1,914 $1,914 $3,215 $1,301 34%

$456 $805 $805 $915 $110 7%

$93 $93 $93 $95 $2 1%

$2,835 $2,261 $2,729 $2,607 ($122) -2%

$2,973 $544 $544 $511 ($33) -3%

$3,211 $2,095 $2,095 $1,746 ($348) -8%

$75 $11 $11 $12 $0 1%

$80 $100 $100 $100 $0 0%

$2,148 $1,539 $1,539 $1,019 ($520) -17%

 IT App Development $2,630 $2,630 $2,091 ($540) -10%

$12,430 $12,260 $12,727 $12,581 ($146) -1%

$38,260 $38,260 $43,657 $48,452 $4,795 11%

Amount $37,738 $37,716 $43,028 $47,690 $4,662

FTE 133.0 141.0 150.9 153.6 2.8

Amount $2,000 $2,000 $2,000 $2,000 $0

FTE 10.5 9.5 9.5 9.3 0

Amount $522 $544 $630 $762 $132

FTE 2 3 3 3 0

Operations & Administration (O&A) Program ($/FTE)

Operations Salary & Benefits (Multi-year)

Office of Inspector General Program ($/FTE)

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

* This reflects the annualized amounts provided in the Continuing Appropriations Act, 2024 (Division A of Public Law 118-15, as amended by Division A of Public Law 118-22) (FY 2024 

Annualized CR).

FY2024 

Annualized CR*

 (25.3) Other Goods and Services from Federal Sources 

 (25.7) Operation and Maintenance of Equipment 

 (26.0) Supplies and Materials 

 (31.0) Equipment 

 Sub-Total Administrative Expenses 

Total 

 (22.0) Transportation of Things 

 (23.1) Rental Payments to GSA 

 (23.3) Communications, Utilities, and Miscellaneous Charges 

 (24.0) Printing and Reproduction 

 (25.1) Advisory and Assistance Services 

 (25.2) Other Services from Non-Federal Sources 

Full Time Equivalents

 (11.5) Other Personnel Compensation 

 (12.1) Civilian Personnel Benefits 

 Sub-Total Personnel Compensation & Benefits 

 (21.0) Travel and Transportation of Persons 

Budget Request Detail

Amounts in ($000)

Budget Object Class (BOC) FY 2023

Enacted

FY 2024

Request

FY 2025

Request

FY2024 Request

 - FY2025 Change

% Change
FMC Budget Request Fiscal Year 2025

5

Summary of FY 2025 Spending Compared to the 

FY 2024 President’s Budget Request ($43,720,000)

By Spending Type

Proposed FY 2025 Budget 

$48,452,000

Employee Salary and Benefits Request: $35,871,000

 

Achieving the Commission’s mission and OSRA priorities requires additional 

personnel. The budget request provides for 167 full-time positions in FY 2025. 

This increase supports a projected pay raise of 2.0 percent.

+$4,941,000

Rent & Building Security Request: $4,076,000

 

The total cost for leasing Washington, D.C. headquarters office space in FY 2025 

will be $3,215,000. A large part of this increase is an additional $1,323,000 in 

rent costs after an initial new lease rent abatement. This number is reduced by 

closing physical field offices and leveraging remote work and ad hoc coworking 

spaces. The last field office lease will end in FY 2025. 

Building security is estimated to cost $861,000.

+$1,341,000

Information Technology Modernization Request: $2,091,000

 

The Commission’s IT Strategic Modernization 3-year plan to modernize and 

optimize the organization’s technology performance and to better support the 

Commission’s stakeholders will continue in FY 2025 with application 

development. 

-$539,000

IT Operations Request: $3,786,000

 

The Commission continues to implement cloud-based IT enhancements, as well 

as tools to improve productivity, collaboration, and data analysis. The cost 

reflects an emphasis on cybersecurity, privacy, records management, 

communications, and a refresh of equipment initiatives. These funds would also 

enable progress in managing internal data and infrastructure, making certain 

data are more accessible, and improving the experience for stakeholders.

$-575,000

Travel & Training Request: $612,000

 

The Commission relies upon a professional staff with the knowledge, skills, and 

ability to complete their roles. Job-related training and leadership development 

programs invest in necessary staff professional and leadership skills 

growth. Travel to support increased enforcement activities, consumer 

assistance, and support for U.S. exporters is supported in the FMC’s request. $0

All Other Budget Requirements Request: $2,016,000

 

Assistance and Advisory Services, other Services from non-federal sources, and 

equipment.

$-436,000
FMC Budget Request Fiscal Year 2025

6

Appropriation Language 

Salaries and Expenses

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

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

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

Code; and uniforms or allowances therefore, as authorized by sections 5901 and 5902 of title 5, 

United States Code, $48,452,000 of which $2,000,000 shall remain available until September 30, 

2026: provided, that not to exceed $3,500 shall be for official reception and representation 

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

Related Agencies Appropriations Act, 2023). 

 
FMC Budget Request Fiscal Year 2025

7

Investigations and Enforcement

The Commission’s enforcement program focuses on investigating and prosecuting civil violations of 

the U.S. shipping laws, as well as Commission regulations. Civil penalties collected for violations of 

the law are remitted to the U.S. Treasury. The enforcement program identifies and addresses

violations of law to stop unlawful practices, protect the public, and serve as a deterrent to other 

regulated entities that may consider similar unlawful actions within the industry. The Commission’s 

enforcement priorities change based on industry conditions and practices. 

Enforcement Priorities

In FY 2023 and FY 2024, the FMC’s investigative and enforcement priorities focused on unlawful 

common carrier practices that negatively impacted significant portions of the maritime industry or 

appeared to cause market distortion. The Commission will continue to focus on cases against 

potentially unlawful common carrier practices, along with complex cases involving other companies 

that are potentially violating U.S. shipping laws. 

Priorities for FY 2025 include, but are not limited to, cases 

showing:

• a failure to establish, observe, and enforce just 

and reasonable regulations and practices relating 

to or connected with receiving, handling, storing, 

or delivering property that potentially violate 46 

U.S.C. § 41102(c); 

• unlawful demurrage and detention practices and 

improper use of merchant clauses to impose 

liability on non-contract parties;

• unreasonable refusals to deal or negotiate that 

potentially violate 46 U.S.C. § 41104(a)(10);

• unreasonable refusals of cargo space accommodations or other unfair or unjustly 

discriminatory conduct that potentially violates 46 U.S.C. § 41104(a)(3); 

• retaliation that potentially violates 46 U.S.C. § 41102(d); and 

• tariff and service contract activities that potentially violate 46 U.S.C. § 41104. 

In FY 2023, the enforcement program collected a combined total of $2.65 million in civil penalties 

to resolve allegations of misconduct by two large ocean common carriers, and an additional 

$246,332 in other civil penalties. In addition to paying civil penaltiesin the two large common carrier 

cases, those carriers agreed to furnish restitution to impacted shippers in the form of refunds and 

waivers, and to implement corrective actions to prevent future violations and ensure compliance 

with the Commission’s Interpretive Rule on Detention and Demurrage.

FY 2023 Civil Penalties Cases:

* $131,332

* $950,000

* $1,700,000

* $115,000

Total collected: $2,896,332
FMC Budget Request Fiscal Year 2025

8

Projected Growth and Activities 

The total number of substantive enforcement matters is anticipated to grow in the next several 

years. The FMC is adding resources to its enforcement program in FY 2024, including investigators, 

attorneys, analysts, and a paralegal. Also in FY 2025, the Commission will increase its enforcement 

efforts through new uses of public sources and statistical information to target potential violators. 

Additional investigations and proceedings will require an increase in travel to execute these matters. 

In FY 2023, the Commission delegated authority to BEIC to issue Notice(s) of Violations (NOV) and 

to compromise civil penalty claims subject to approval by the Commission. Delegation of authority 

to BEIC, coupled with Commission review of compromise agreements, is providing needed

efficiency and flexibility in the enforcement process while maintaining Commission oversight. This 

change became effective on May 17, 2023. Streamlined enforcement actions will be crucial to 

managing an increased caseload in FY 2025.

Charge Complaints 

Section 10 of OSRA 2022 (46 U.S.C. § 41310) provides shippers an entirely new way to submit 

complaints to the FMC regarding carrier charges and to receive a refund or waiver for non-compliant 

charges. Upon the promulgation of OSRA 22, the FMC quickly developed a process for complaint 

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

received on July 14, 2022. 

During FY 2023, the FMC investigated 119 complaints. Approximately 100 cases were quickly 

resolved through refunds and waivers issued voluntarily by carriers, totaling approximately 

$1,700,000. While most charge complaints were voluntarily resolved during the investigation phase, 

the FMC’s process also provides for fast resolution of non-compliant charges disputed by the 

parties. This process involves BEIC attorneys recommending that the Commission issue an Order to 

Show Cause, initiating a proceeding before the Commission to determine the lawfulness of a

charge. 

The Commission will review the interim procedure and draft a new rulemaking in FY 2024. The new 

Charge Complaints procedure will require additional resources. Two FTEs are projected to be hired 

in FY 2024 and FY 2025 to process and investigate these complaints. In FY 2025, the final procedure 

will be established and fully operational. 

 
FMC Budget Request Fiscal Year 2025

9

BEIC Reorganization 

In FY 2023, the Commission 

completed a reorganization of its 

Bureau of Enforcement, 

Investigations, and Compliance. 

This reorganization emphasizes 

the importance of the 

Commission’s enforcement work. 

Under the new structure, BEIC is 

led by a senior executive fostering 

coordination and cooperation 

between BEIC’s offices, leading to 

a more effective and productive 

enforcement program. 

An initial reduction in the number of cases might occur in FY 2024 as BEIC staffs to a full level and 

transitions its efforts to the pursuit of complex investigations and enforcement actions. Focusing on 

substantive cases will have a larger and more meaningful impact on dissuading improper conduct 

by companies providing ocean transportation and related services. Additional training to improve 

investigative capabilities will be pursued. Hiring will be completed in FY 2024 and BEIC will operate 

with a full cadre of trained investigators, attorneys and analysts by the beginning of FY 2025.

BEIC Case Management 

In FY 2024, BEIC will procure a new case management system to replace the existing rudimentary 

in-house tracking database. A more capable system will facilitate better tracking of investigations

and prosecutions and will improve productivity by allowing for easier evaluation of ongoing matters

and outcomes. This new system will be online in FY 2025 with an estimated cost of $75,000 for 

FY 2025 operation and maintenance. 

 

Bureau of 

Enforcement, 

Investigations, and 

Compliance

Office of Enforcement Office of Investigations Office of Compliance

New Organizational Structure
FMC Budget Request Fiscal Year 2025

10

Ocean Shipping Reform Act of 2022 

OSRA 2022 tasked the Commission to complete multiple actions on a short timeline. All statutorily 

mandated efforts are well underway and projected to be completed before FY 2025. In FY 2022 and 

FY 2023, the Commission drafted and released for public comment two of the rulemakings

mandated by the legislation.

The FMC issued an NPRM titled Definition of Unreasonable Refusal to Deal or Negotiate with 

Respect to Vessel Space Accommodations Provided by an Ocean Common Carrier on September 21, 

2022 (87 Fed. Reg. 57674). On June 14, 2023, the FMC issued a Supplemental NPRM (88 Fed. Reg. 

38789) that revised certain aspects of the original proposed rule and proposed a revised standard 

for unreasonable conduct by ocean common carriers.

The FMC published an NPRM for Demurrage and Detention Billing Requirements on October 14, 

2022 (87 Fed. Reg. 62341). The NPRM proposed requirements on specific minimum information 

that must be included on demurrage and detention invoices and outlined certain billing practices 

on appropriate timeframes for issuing invoices, disputing charges with the billing party, and 

resolving such disputes. The Commission anticipates finalizing these proposed rules before the end 

of FY 2024.

OSRA 2022 also mandated rulemaking for Unfair or Unjustly Discriminatory Methods Related to 

Cargo Space Accommodations and Shipping Exchange Registries. The Commission anticipates

reviewing the use of shipping exchange registries in FY 2024. 

Section 9 of OSRA 2022 mandated a new data collection by the FMC to address concerns about lack 

of timely and accurate data regarding laden and empty containers carried in U.S. international 

oceanborne trade. The Commission has completed the required public notices for this data 

collection and submitted supporting materials to the Office of Management and Budget. Also, the 

FMC updated an existing IT system to allow carriers to submit required data and enable efficient 

processing and publication of the required quarterly reports on import and export tonnage and the 

number of laden and empty containers operated by ocean common carriers. The Commission

anticipates OMB approval in the first quarter of FY 2024 and data collection to begin thereafter. 

Other requirements of OSRA 2022 included adding resources to CADRS and other program areas, 

including enforcement, contracting with the National Academies of Sciences to study best practices 

for chassis pools, and making it easier for the public to use the Commission’s website to submit 

concerns, complaints, comments, and make certain other requests. The staffing effort is complete

and the other activities are expected to be completed before the end of FY 2024.

 
FMC Budget Request Fiscal Year 2025

11

Vigorous Oversight Ensuring Compliance to Protect the Public 

Commission regulations address the conduct and practices of ocean common carriers, ocean 

transportation intermediaries, marine terminal operators, and passenger vessel operators. The 

Commission is small compared to the industry it regulates. Achieving the voluntary compliance of 

regulated entities with Commission statutes and regulations is far more effective than relying solely 

on enforcement activities to protect the integrity of the market. 

FMC Audit Program 

The need for clear communications between the Commission and carriers is the underpinning of 

the Vessel-Operating Common Carrier (VOCC) Audit program initiated by Chairman Maffei in July 

2021. In FY 2023, the FMC expanded this program to include marine terminal operators and ports. 

The FMC Audit Program provides a forum for senior FMC staff to communicate directly with 

representatives from the largest carriers, as well as port authorities, and marine terminal operators 

(MTOs). The agendas for these regular meetings are topical to issues in the supply chain. Past issues

have included congestion and movement of empty containers, fees and billing practices, export 

strategies, and challenges faced by the industry. Under this program, the Commission has tracked 

trends, policies, and procedures related to detention and demurrage billing and identified best 

practices for carriers related to communicating their practices to the shipping public. 

Fact Finding 29 (FF 29), International Ocean Transportation Supply Chain Engagement, led by 

Commissioner Rebecca F. Dye, included a recommendation that all carriers and MTOs identify FMC 

Compliance Officers. Staff used the FMC Audit Program to confirm all major carriers and terminal 

operators identified compliance officers. Having these points of contact has enhanced 

communication between the FMC and carriers/terminal operators and helped ensure that carriers 

and MTOs are aware of and are adhering to Commission policies. 
FMC Budget Request Fiscal Year 2025

12

Tariffs and Service Contracts 

All relevant Commission program offices have 

expanded their compliance efforts. The 

Bureau of Trade Analysis (BTA) oversees 

compliance with Parts 520 (Carrier Automated 

Tariffs), 525 (Marine Terminal Operator 

Schedules), 530 (Service Contracts), 531 (NonVessel-Operating Common Carrier (NVOCC)

Service Arrangements), and 532 (NVOCC 

Negotiated Rate Arrangements) of the 

Commission’s regulations. Changes to the 

industry over time, including an increase in

entry of new NVOCCs in the early 2020s, entry 

and exit of smaller ocean common carriers 

due to market changes related to the COVID19 pandemic, and volatility of rates during the 

pandemic, have resulted in gaps in 

compliance. 

BTA increased staffing in FY 2023 and focused 

compliance activities on what would lead to 

the greatest impact. This included increased 

outreach to the industry through industry 

alerts and communication with designated 

compliance officers to ensure that service contracts are timely filed, that ocean common carriers 

vet NVOCCs for compliance with FMC regulations when entering into service contracts, and that all 

common carriers maintain tariffs. 

Increased rates on the major east-west trade lanes during the COVID-19 pandemic drew a number 

of smaller carriers to enter the U.S. trades for the first time. As rates fell in 2022 and 2023, several 

of these same carriers left U.S. service without notifying the Commission or cancelling their tariffs. 

Commission staff tracked this activity closely and ensured that tariffs were cancelled so the shipping 

public had an accurate snapshot of carriers who were legally operating in the trades.

The number of NVOCCs offering service in the United States has increased substantially since 2020. 

At the end of FY 2023, there were approximately 8,500 NVOCCs with tariff locations published on 

the FMC website. In FY 2023, BTA worked proactively with the Bureau of Certification and Licensing

(BCL) to target entities that fell out of compliance with either tariff postings or financial 

requirements. Commission efforts included revoking licenses, working with tariff publishers to 

cancel tariffs, and removing non-compliant entities from the FMC website. Work continues to 

ensure that non-compliant NVOCCs are identified quickly notified of their lack of compliance, and

then dealt with efficiently by the FMC if required changes are not made. In FY 2024, the Commission 
FMC Budget Request Fiscal Year 2025

13

will work on creating an integrated IT system to reduce manual processes in assessing NVOCC

compliance and enhance analytics for NVOCC compliance activities.

Licensing and Financial Responsibility for Ocean Transportation Intermediaries 

and Passenger Vessel Operators 

BCL’s compliance work includes administering Parts 515 (Licensing, Registration, Financial 

Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries) and 540 

(Passenger Vessel Responsibility). There are over 9,100 Ocean Transportation Intermediaries (OTIs) 

regulated by the Commission, and BCL is responsible for ensuring that applicants for OTI licenses

employ a Qualifying Individual with the necessary character and a minimum of three years of 

shipping experience in the U.S. Additionally, OTI applicants must demonstrate financial 

responsibility by means of a bond, insurance, or other financial instrument. BCL maintains a 

triennial renewal program to ensure that OTIs are regularly required to review and update their 

information on file with the Commission.

BCL also oversees a program to ensure financial responsibility for Passenger Vessel Operators (PVOs)

(commonly referred to as cruise lines) that have berth or stateroom accommodations for 50 or more 

passengers and embark passengers at U.S. ports and territories. The requirement for Certificates of 

Performance issued by the FMC ensures financial responsibility for the indemnification of 

passengers for non-performance of transportation and prevents unscrupulous or financially 

vulnerable operators from serving U.S. ports. The PVO program currently includes 50 operators.

The FMC revised regulations for the PVO program at Part 540 in 2022 in response to the disruptions

experienced by the cruise industry during the COVID-19 pandemic. The Commission’s new rule 

mandates that passengers be fully refunded, within 180 days, all fees, including ancillary fees, paid 

to the PVO. Optionally, in lieu of a refund, passengers may agree to receive future cruise credits. 

These new rules and processes have increased the scope and complexity of cases involving PVO 

non-performance. The Commission has expanded resources for this program to support systems 

development, conduct on-going monitoring and compliance work, and perform outreach, including 

webinars. The staff are strengthening processes for monitoring and maintaining compliance to 

ensure cruise passengers are protected from non-performance of cruise lines.

The Office of Compliance was established in FY 2023 within the Bureau of Enforcement, 

Investigations, and Compliance. In FY 2023, the Commission appointed a new Director for the Office 

of Compliance who provides a bridge between the BTA and BCL compliance efforts and enforcement 

staff. In FY 2024 and FY 2025, the newly formed office will work with BCL and BTA to develop

processes for escalating and resolving compliance issues identified by the program offices and work 

collaboratively to develop data-driven compliance efforts.

Across the offices and bureaus, compliance efforts at the Commission will be enhanced by major IT 

systems improvements in FY 2024 and FY 2025, as described later in this document.
FMC Budget Request Fiscal Year 2025

14

Consumer Assistance 

The FMC prioritizes assistance to benefit the shipping public and maritime industry. Several 

programs directly provide shippers and other parties with help in resolving shipping disputes. 

Informal Dispute Assistance 

The Office of Consumer Affairs and Dispute Resolution Services (CADRS) has experienced analysts 

and attorneys on staff who assist the public in finding solutions to their commercial disputes without 

bringing formal legal actions. When assistance is requested, CADRS staff work with parties to 

identify solutions that will get cargo moving whenever possible,

avoiding further delays and increasing charges. Other services 

offered by CADRS include mediation and arbitration. All CADRS 

assistance is provided without charge and all communications are 

kept confidential. 

Recent and planned improvements to CADRS operations will 

benefit the public. CADRS staffing was increased in both FY 2023 

and FY 2024. A new case management system that is scheduled 

to be acquired in FY 2025 will improve internal reporting and 

tracking. In FY 2024 and FY 2025, CADRS will complement its 

dispute resolution work by increasing its outreach to industry. 

Litigation Before the Commission 

The FMC provides a venue for adjudicatory proceedings for 

violations of the statutes it administers. Once a complaint is received, the Office of the 

Administrative Law Judges (OALJ) adjudicates the claim lawfully and timely. A goal is to issue Final

Decisionsin formal proceedings within 24 months of filing. Due process may require additional time 

to issue Initial Decisions, particularly in complex cases.

In FY 2022, small claims case filings doubled from historical averages. In FY 2023, more small claims 

cases were filed than in any previous year, exceeding FY 2022’s record number.

Sufficient staffing is essential to meeting the above adjudicatory goals, and the FMC hired a third 

Administrative Law Judge (ALJ) in FY 2023. In FY 2025, we anticipate the Office of the Administrative 

Law Judge being staffed by three ALJs and 1 Small Claims Officer. If small case filings continue to 

increase at the pace they have been, an additional small claims officer might be needed. 

FY 2023

CADRS Requests 

Received

Cargo Assistance: 199

Passenger Vessel 

(Cruise) Assistance: 75

Household Goods: 34
FMC Budget Request Fiscal Year 2025

15

Adjudicatory proceedings at the FMC have increased 

dramatically in recent years, and this increased pace is expected 

to continue in upcoming years. Further, cases are more complex 

and involve a larger number of filings than cases in prior years. In 

addition to increased enforcement actions by BEIC, more private 

parties are seeking binding decisions before the Commission. In 

FY 2022, the volume of filings increased almost 250 percent over

FY 2021 and 275 percent over FY 2019. Further, the number of 

filings has continued to increase. In FY 2023, the Office of the 

Secretary processed 927 filings, a 129 percent increase over 

FY 2022’s record number of filings.

Recent key Commission decisions 

FMC Docket No. 1966(I), TCW, Inc. v. Evergreen Shipping Agency 

(AM.) Corp, & Evergreen Line Joint Service Agreement, Order 

Affirming the Initial Decision (December 29, 2022): The 

Commission upheld the Small Claims Officer’s decision that the 

charging of per diem when a port was closed for a weekend and 

equipment could not be returned was unjust and unreasonable

in the absence of extenuating circumstances. This case is now 

before the U.S. Court of Appeals for the District of Columbia Circuit. This case could significantly 

impact how the industry deals with charges related to weekends, holidays, and other times when 

containers or chassis cannot be returned. Some companies are waiving demurrage and detention

charges in light of the Commission’s decision.

FMC Docket No. 20-14, Intermodal Motor Carriers Conference, American Trucking Associations, Inc. 

v. Ocean Carrier Equipment Management Association, Inc. et al. Initial Decision Partially Granting 

Summary Decision (February 6, 2023): Complainant IMCC, a conference of ATA – American Trucking 

Associations alleges that OCEMA and CCM (VOCC-backed equipment management groups which 

have FMC-filed agreements) have engaged in unreasonable practices related to chassis (chassis 

choice and gray pools) in nearly every port in the U.S. As a result, IMCC maintains, motor carriers, 

shippers, and the downstream public have paid higher chassis prices and suffered inefficiencies, and 

thus OCEMA/CCM actions violate 46 U.S.C. § 41102(c) of the Shipping Act. IMCC requests cease and 

desist relief from these practices. This factually and legally complex case is now pending with the 

Commission on review of respondents’ Exceptions to the Initial Decision.

FMC Docket No. 21-11, OJ Commerce, LLC v. Hamburg Sudamerikanische DampfschifffahrtsGesellschaft A/S and Co KG and Hamburg Sud North America, Inc., Initial Decision (June 7, 2023):  

Complainant OJ Commerce (“OJC”), a shipper, alleges that Respondents Hamburg 

Sudamerikanische Dampfschifffahrts-Gesellschaft and Hamburg Sud North America (collectively 

“HSDG”), a carrier, failed to provide cargo space pursuant to a service contract. OJC alleges when it 

complained and threated action before the Commission, HSDG cut off all negotiations towards 

future service contracts and refused to provide further space under the existing service contract. 

Adjudicatory Filings 

before the FMC:

The volume of filings in 

FY 2022 increased 

almost 250% over 

FY 2021, and 275% 

over FY 2019. 

Further, the number of 

filings continues to 

increase. In the first 

half of FY 2023, the 

FMC processed more 

than the total of 

FY 2022’s record 

number of filings.
FMC Budget Request Fiscal Year 2025

16

The ALJ found that the HSDG violated 46 U.S.C. § 41104(a)(3) by refusing to deal with OJC and § 

41104(a)(10) by retaliating against OJC. The ALJ ordered HSDG to pay OJC $9,843,766.40 in 

reparations with interest. This case is now pending with the Commission on review of both the 

respondents’ and complainants’ Exceptions to the Initial Decision. 

Litigation Court Management System

The FMC’s current court management system is manual, outdated and needs to be replaced to 

handle increased filings and recordkeeping. A new e-filing court management system contract is 

anticipated to be awarded in FY 2024, and the migration will be implemented in FY 2024 and 

FY 2025, with ongoing licensing, support, hosting, and additional data migration costs needed in 

FY 2025. Among other benefits, an improved e-filing management system will allow staff to monitor 

timelines and provide better reporting.

In FY 2025, the FMC’s e-filing court management system will be hosted in a FedRAMP-certified cloud 

infrastructure environment and will provide a web-based portal/interface which will allow a 

filer/party to securely submit and authenticate their identity, contact information, and pay filing 

fees directly. The new e-filing court management system will replace the FMC’s current electronic 

reading room, allowing the public to view, search, print or download non-confidential documents. 

Other improvements will include processing automation enhancements and a back-office interface 

which will support all FMC staff responsibilities including processing, managing, and serving all 

docket/case documents. 

Ensuring Fair Competition Through Rigorous Review and 

Extensive Monitoring of Shipping Act Agreements 

The FMC protects competition in the marketplace for ocean transportation services in the United 

States with the goal of ensuring efficiency and reliability in the supply chain for American exporters 

and importers. The FMC's competition program consists of careful analysis of agreements when 

they are filed and ongoing review of actions that are taken under these agreements.

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

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

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

under these agreements on an ongoing basis for those agreements that are competitively 

concerning. The limited antitrust immunity granted under an agreement filed with the Commission 

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

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

civil prosecution under existing statutes.

At the end of FY 2023, there were 343 agreements on file with the Commission, comprised of VOCC 

agreements, MTO agreements, and assessment agreements. There are approximately 50 

agreements on file which staff monitor regularly due to competitive concerns. The vast majority of 
FMC Budget Request Fiscal Year 2025

17

agreements on file with the Commission are VOCC agreements which allow straightforward space 

sharing. 

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

Alliance agreements allow coordination of capacity, but discussion or coordination on rates is 

categorically prohibited. There are three alliances with agreements on file at the Commission, and 

these are the most closely scrutinized by the Commission. The largest alliance, measured by market 

share in the major east-west trades, is the 2M alliance, which is slated to be dissolved in 2025;

however, the member carriers took actions throughout 2023 to move towards increasingly 

independent services. The FMC has been carefully tracking the actions of the major carriers.

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

European Union (E.U.), and nations such as the United Kingdom (U.K.) and South Korea do not have 

access to the same detailed information that the FMC collects from alliance carriers. The 

Commission regularly evaluates the information required to properly monitor activities under 

agreements and adjusts monitoring requirements as needed. Monitoring requirements for alliance 

carriers were most recently revised in Spring 2022. As the market shifts from scarcity to excess 

supply of carrier capacity, the FMC’s focus will be on ensuring that alliance carriers do not restrict 

capacity to artificially increase rates. The monitoring requirements updated in 2022 permit the 

Commission to rapidly track and anticipate changes in capacity.

International Collaboration 

The Commission regulates U.S. oceanborne commerce in international trade and a robust program 

of international engagement and collaboration is essential.

In FY 2023, the Commission continued its engagement with competition authorities in the U.K. and 

the E.U. through Commission visits and staff-level discussions of the state of the industry and 

potential changes due to macroeconomic shifts. Due to the U.K.’s exit from the E.U., the Commission 

now engages separately with the U.K. Competition Authority in an as-needed basis to ensure a solid 

understanding of the dynamics affecting the U.S. and Europe trade lanes.

With the E.U.’s Consortium Block Exemption, which allows liner shipping operators to cooperate for 

the provision of joint services under certain conditions, set to expire in FY 2024, the Commission 

will continue to engage to ensure that the U.S. is well-positioned to communicate any potential 

changes to the U.S. shipping public. 

Evidence Building 

The Commission will continue to build and strengthen evidence and evaluation in our programs.

Leveraging existing data collected by the agency and supplementing with data from other 

government agencies, such as the U.S. Department of Homeland Security, Customs and Border 

Protection (CBP), the FMC has enhanced its maritime tracking capabilities. In FY 2023, the FMC 

updated existing agreements with the Census Bureau and CBP to expand access to data for maritime 
FMC Budget Request Fiscal Year 2025

18

analytics for commerce moving by ship in the U.S.-foreign trades. This work to expand data access 

and enhancing maritime analytics will continue with the staff creating internal dashboards to 

expand access to key metrics within the Commission.

The FMC is working with statistical agencies to share data, as appropriate, to enhance the quality of 

statistical measures of the ocean transportation industry.

Finally, in FY 2023, the FMC created publication and disclosure avoidance criteria to allow us to 

share increasing amounts of aggregated industry data with the shipping public and will create an 

on-going data publication schedule in FY 2024. These projects will be included in the revision to the 

FMC Strategic Plan.

Information Technology 

The Commission continues to invest in IT to ensure that agency mission and strategic priorities are 

met. 

The Commission began revising its IT governance policies in FY 2023 as part of a longer-term 

initiative to update its IT investment management framework, enhance IT spending transparency, 

gain visibility into the demand from customers and the cost to serve them, and ultimately optimize 

the level of enterprise IT spending to support key mission goals and objectives.

The Commission uses multiple legacy systems to collect information from the public and regulated 

entities. The modernization of these systems is imperative to improve efficiency in the way the 

Commission interacts with the ocean shipping industry to collect required information, the 

management and use of the data collected, and mitigate cybersecurity risks. In FY 2023, the

Commission completed an initial evaluation of its IT infrastructure, with a focus on cybersecurity 

risk mitigation and system integration. This evaluation included a roadmap and initial budget 

estimate. The draft plan, completed in FY 2023, includes an assessment of existing systems, 

identification of areas for improvement, and a set of goals, objectives, and project milestones. The 

IT modernization project plan will be finalized in the second quarter of FY 2024.

The Commission expects systems modernization and deployment activities to begin in the third 

quarter of FY 2024 and last for 36 months. This will include the replacement of several independent 

systems and fillable forms submitted by regulated entities and the shipping public and will feature 

the integration of systems in BTA and BCL that will automate compliance checks for NVOCCs. The 

modernized systems will have enhanced analytic capabilities, including dashboards, to support 

data-driven compliance and enforcement actions and enhance reporting capabilities.

Through its evaluation of the current systems modernization needs, the Commission has identified 

legacy applications that should be replaced by commercial off-the-shelf (COTS) solutions which can 

be modified by the vendor to meet our needs. This includes the case management system for BEIC 

in FY 2024, as well as a new case management system for CADRS. This will allow the agency to 

acquire and implement these solutions earlier than would be possible under a custom development 

process and potentially at lower cost.
FMC Budget Request Fiscal Year 2025

19

In addition to replacing legacy applications, the agency has identified multiple functions handled 

through manual or ad hoc processes that reduce staff effectiveness. In FY 2024 through FY 2026,

these areas will be modernized through procurement and customization of COTS solutions. This will 

include e-signature workflow management and e-filing case management systems, as increased 

filings since FY 2020 have made the replacement of ad hoc processes an agency priority. 

In FY 2024, the Commission will replace the current FOIA and Privacy Act processing functions that 

are handled via email and an Excel-based tracking system with off-the-shelf FOIA software. By 

FY 2025, the cost of this system will be based only on maintenance and periodic updates.

Also, in FY 2024, the Commission will procure an e-filing court management system to support the 

work of the Administrative Law Judges and the Office of the Secretary. Leveraging a customizable 

off-the-shelf solution will achieve improved processing times and accuracy in both areas, as both 

offices currently use manual processes to track and process cases. Implementation of this new 

software will include migration of existing files, a user-friendly interface and portal, and will ensure 

security through hosting in a FedRAMP-certified infrastructure. By mid FY 2025, this system will have 

been implemented, and annual costs shifted to hosting and technical support for internal and 

external system users.

In FY 2025, the Commission will have finalized work to modernize its website and shift this expense 

to hosting costs, annual maintenance, and required updates. The Commission is contracting with 

the GSA Center of Excellence through an Interagency Agreement to develop and deploy a website 

from a customer-centered viewpoint, including an extensive analysis and planning effort 

incorporating user needs, business goals, organization of content, and visual design. The resulting 

website will serve the shipping public by enhancing awareness of agency resources, remedies, and 

regulatory requirements and by making the FMC’s web content more easily searched and 

accessible. The agency also will ensure that its materials are compliant with Section 508 best 

practices. This project is composed of two phases: (1) planning and design; and (2) implementation 

and launch, slated to be complete in FY 2024. 

The Commission continues to prioritize its cybersecurity framework through infrastructure 

enhancements and maturation of its cybersecurity and privacy programs. Improvements include an 

integrated cybersecurity incident and privacy breach response plan, enhanced cybersecurity 

monitoring and response, and an improved ability to continue business/mission operations in the 

event of a cyberattack. The agency continues to identify opportunities to address gaps in its 

cybersecurity to enable better decision-making and improve leadership visibility and oversight.

The FY 2025 Budget request will help to support enterprise-wide cyber services and to further 

enhance cyber capabilities, providing a platform to enhance efficiency, communication, 

transparency, and accountability around the Commission’s mission. The request elevates the 

importance of such initiatives and provides the Commission’s leadership, OMB, and Congress with 

a more holistic vantage point of cybersecurity activities across the agency. With the increase in cyber 

requirements and cascading deadlines, the Commission is centralizing cybersecurity initiative 

leadership and oversight to gain operational efficiencies, ensure transparency, and achieve 
FMC Budget Request Fiscal Year 2025

20

enterprise-wide compliance for IT infrastructure. The enterprise-wide investment approach 

benefits the Commission’s bureaus/offices in their cybersecurity goals to create a unified approach 

to cyber spending and stronger protections across the agency.

Additionally, the FY 2025 Budget request provides critical cybersecurity resources to support the 

Commission’s efforts to comply with Executive Order 14028 (EO), Improving the Nation’s 

Cybersecurity, as well as OMB Memorandums, specifically M-21-31, Improving the Federal 

Government’s Investigative and Remediation Capabilities Related to Cybersecurity Incident (security 

logging), and M-22-09, Moving the U.S. Government Toward Zero Trust Cybersecurity Principles. The 

funding request also supports compliance efforts associated with the U.S. Department of Homeland 

Security, Cybersecurity and Infrastructure Security Agency (CISA), guidance that sets new 

cybersecurity standards and objectives. These new directives also prioritize cloud-based security, 

security operations center (SOC) enhancements, universal encryption, and multifactor 

authentication. 

IT Modernization Plan

Planned Systems Development

Fiscal 

Year

Application 

Name/FMC Form

Regulatory 

Scope

Function

2024 FMC-18 Part 515 An online portal used to apply for an OTI license. The 

system also allows users to access historical data and track 

the progress of applications.

FMC-1 Parts 520, 

525

Registration for VOCCs and MTOs. Locations for all VOCC 

and NVOCC tariffs and MTO schedules. Used to ensure 

compliance with regulations concerning all requirements 

for tariff provisions as well as whether entities continue to 

meet the criteria necessary to be registered with the FMC.

E-Bonds Part 515 System used to facilitate the submission and management 

of bonds required for OTIs to obtain a license or 

registration from the Commission. OTIs are required to 

post a bond or other form of financial responsibility with 

the FMC in compliance with the Commission’s regulations.

OTI Renewal Part 515 Portal used for submitting three-year license renewal to 

keep track of entities status related to business operations 

and contact information. 

2025 FMC-65 Part 515 An online portal that allows foreign-based unlicensed 

NVOCCs that wish to provide NVOCC services in the U.S. 

foreign trade to register.

FMC-65 Renewal Part 515 Portal used for submitting three-year registration renewals 

for foreign-based unlicensed non-vessel-operating 

common carriers that provide NVOCC services in the U.S. 

foreign trade with a valid registration and an effective 

tariff. 
FMC Budget Request Fiscal Year 2025

21

Planned Systems Development

Fiscal 

Year

Application 

Name/FMC Form

Regulatory 

Scope

Function

RPI Part 515 The Regulated Persons Index (RPI) is a database containing 

the names, addresses, phone/fax numbers, and bonding 

information, where applicable, of all the Commission’s 

regulated entities.

PVO Part 540 The Passenger Vessel Operator (PVO) system will be an 

online platform that will allow PVOs/Cruise lines to submit 

their applications for issuance of Performance and/or 

Casualty Certificate(s).

eAgreements Part 535 System for external parties to file their agreements. 

Internal repository for agreement evaluations, Commission 

recommendations, and external communications. System 

also generates the public-facing agreements library.

Administrative Support 

Focusing efforts on enforcement, compliance, and OSRA 2022 implementation requires appropriate 

alignment and support from the Commission’s administrative units. Sufficient support staff to 

provide budgeting, contracting, human resources, and IT management is critical to mission success. 

The FMC leverages interagency administrative support when feasible. The Bureau of Fiscal Services 

provides financial accounting support to the Commission’s Office of Budget and Finance, adding an 

additional financial review and balance against errors or potential fraud. 

Hiring/Human Resources 

The Commission has rapidly increased the pace of hiring to support its new priorities. The FMC

recognizesthat its employees are critical to achieving its mission and continuesto make investments 

in its workforce a top priority. A highly skilled, agile, and committed workforce is needed for the 

Commission to execute program goals and to respond effectively and quickly to changing priorities. 

Hiring a diverse workforce ensures that the FMC retains talent and that its employees reflect the 

diversity of the U.S. population.

The FMC’s Office of Human Resources leverages new job series for technical experts and utilizes 

USA Hire to improve candidate assessment and Direct Hire authorities to quickly onboard staff in 

key positions. The Commission will continue to promote various hiring authorities and flexibilities, 

including Direct Hire and Schedule A authorities, and expand the use of the Pathways Program (e.g., 

interns and Presidential Management Fellows) to attract new and diverse talent.

To allow for succession planning, with appropriate funding, the FMC maintains multiple leadership 

programs to better prepare internal candidates for the leadership roles that are required under our 

new regulatory environment and organizational structure. The Commission has offered three 

leadership development programs for different grade levels under the Commission’s Leadership 

Development Program, as well as a Senior Executive Service Development Program. 
FMC Budget Request Fiscal Year 2025

22

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

and participate in government-wide strategic initiatives. It will continue succession planning efforts 

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

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

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

skills and knowledge gaps, creation of career path resources for mission critical occupations, 

evaluation of leadership development programs, performance management training, supervisory 

training, leadership journeys, and career and leadership development job rotational opportunities. 

The Commission will continue to promote its mentoring/coaching program to develop future 

leaders and take steps to implement phased retirement. 

Lease and Office Space Improvements 

The Commission leases commercial office space through the U.S. General Services Administration

(GSA). Almost all the Commission’s staff works out of the FMC’s Washington, D.C., headquarters. A

small number of investigators are located near major port and transportation hubs nationwide. In 

FY 2023, the Commission designated all investigators as remote employees and is in the process of 

reducing its field office space footprint. Through GSA, the Commission will be able to flexibly rent 

office space in these locations on a short-term basis when needed. After a small space in Tacoma, 

Washington, is surrendered in November 2024, the FMC will lease only its Washington, D.C.,

headquarters. 

The FY 2025 estimated cost for rental space is $3,214,937, which includes real estate taxes, but not 

building security costs. FY2025 building security costs are estimated at $861,000. Real estate taxes 

are subject to change based on assessed value and are provided as an estimate in the occupancy 

agreement. 

Continuity of Operations/Mission Resilience 

The FMC practices Federal Mission Resilience (FMR). The FMC’s established continuity of operations 

(COOP) program follows the Commission COOP Plan, which is revised and tested annually. Quarterly 

notification tests to non-FMC employee devices ensure that communications can be maintained in 

an emergency. No additional investments to this system are planned in FY 2025. As noted earlier, IT 

investments will further the FMC’s ability to continue to provide its mission-critical services to the 

public, including in a COOP situation. 

 
FMC Budget Request Fiscal Year 2025

23

Equity at the FMC 

Equity Action Plan 

As an independent agency, the Commission has voluntarily complied with Executive Order 13985, 

Advancing Racial Equity and Support for Underserved Communities Through the Federal 

Government, and OMB Memo M-21-17, by conducting equity assessments of programs and services 

directed at the public. The Commission will further consider Executive Order 14091, Further 

Advancing Racial Equity and Support for Underserved Communities Through the Federal 

Government, in promoting Commission equity initiatives and leadership. 

The Commission is finalizing an update to our Equity Action Plan, first published in January 2022. 

The update notes continued efforts to ensure plain language and accessibility on our website, as 

well as a completed review of our contracting policies and procedures. These contracting policies 

promote equity, and we will continue to identify additional opportunities to improve equity, 

reassessing our progress in FY 2024. 

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

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

currently administer public benefits programs, we will consider whether the federal information 

collection burden for underserved and underprivileged communities can be minimized in future 

Commission information collections. No FTEs are required to implement this effort; employees 

already involved in information collections will consider equity in future burden analysis projects.

Diversity, Equity, Inclusion and Accessibility 

The FMC voluntarily participates in Executive Order 14035, Diversity, Equity, Inclusion, and 

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

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

communities. 

The FMC has identified a set of themes and strategies that support and promote diversity, equity, 

inclusion, and accessibility (DEIA) for employees and applicants for employment. Its programs focus 

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

diverse workforce, and improving employment outcomes for all employees. The FMC believes that 

the application of DEIA principlesserves to advance the agency’s overall mission. The Office of Equal 

Employment Opportunity and the Office of Human Resources are embedding DEIA practices in 

routine agency workforce planning and forecasting, employee engagement initiatives, and 

accessibility measures (e.g., reasonable accommodations).

The FMC’s Fiscal Years 2022-2026 Strategic Plan includes an objective to foster a high performing, 

engaged, and diverse workforce where staff understand how their efforts contribute to the goals of 

the Commission. The FMC promotes a culture that is open, diverse, inclusive, and engaged.

The FMC trains staff on equal employment opportunity law and process and accessibility 

requirements in the federal government. In FY 2024 and FY 2025, the Commission will expand use 
FMC Budget Request Fiscal Year 2025

24

of exit surveys, recruit at a wide assortment of institutions, and expand career development 

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

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

disabilities. The DEIA program will continue to work with EEO on Special Emphasis Month 

observances. In FY 2024 and FY 2025, the FMC’s EEO Office will begin an evaluation of targeted 

barrier analysis of agency programs and functions and strategic workforce analyses. The barrier 

analysis will seek to determine if there are barriers to opportunity for groups identified for analysis 

and, if a barrier is found, develop a plan to address the barrier. The analysis would include review 

of agency hiring, promotion, and retention data and policies, as well as review of other available 

data including complaint data, comments on FEVS, anecdotal information, exit interviews, 

management and employee interviews, and possibly even focus group studies (depending on the 

policy/practices being analyzed). 
FMC Budget Request Fiscal Year 2025

25

The Office of the Inspector General 

FEDERAL MARITIME COMMISSION

Washington, DC 20573

January 17, 2024

Office of Inspector General

The Inspector General Reform Act (Pub. L. 110-149) was signed by President George W. Bush on 

October 14, 2008. Section 6(f)(1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was amended

to require certain specifications concerning Office of Inspector General (OIG) budget submissions 

each fiscal year (FY).

Each inspector general (IG) is required to transmit a budget request to the head of the establishment 

or designated Federal entity to which the IG reports specifying:

• the aggregate amount of funds requested for the operations of the OIG,

• the portion of this amount requested for OIG training, including a certification from the IG

that the amount requested satisfies all OIG training requirements for the fiscal year, and

• the portion of this amount necessary to support the Council of the Inspectors General on

Integrity and Efficiency (CIGIE).

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include:

• an aggregate request for the OIG,

• the portion of this aggregate request for OIG training,

• the portion of this aggregate request for support of the CIGIE, and

• any comments of the affected IG with respect to the proposal.

The President shall include in each budget of the U.S. Government submitted to Congress:

• a separate statement of the budget estimate submitted by each IG,

• the amount requested by the President for each OIG,

• the amount requested by the President for training of OIGs,

• the amount requested by the President for support of the CIGIE, and

• any comments of the affected IG with respect to the proposal if the IG concludes that the

budget submitted by the President would substantially inhibit the IG from performing duties

of the OIG.
FMC Budget Request Fiscal Year 2025

26

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

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

2025:

• the aggregate budget request for the operations of the OIG is $761,885,

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

• the portion of this amount needed to support the CIGIE is $2,500.

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

OIG for FY 2025, including all FMC OIG training requirements, and resources to support CIGIE.

Jon Hatfield, Inspector General

Federal Maritime Commission

 
FMC Budget Request Fiscal Year 2025

27

Organizational Information

Organization Chart 

The FMC is composed of five Commissioners nominated by the President and confirmed by the 

Senate, each serving a staggered five-year term. The Commission is a bipartisan body; no more 

than three members of the Commission may be of the same political party. One Commissioner, 

designated by the President, serves as Chairman, Chief Executive, and Chief Administrative Officer 

of the Commission.

 
FMC Budget Request Fiscal Year 2025

28

Statutes Administered 

The Federal Maritime Commission administers Subtitle IV (Parts A through D) of title 46, United 

States Code, including the various amendments to title 46 implemented by the requirements of 

the Ocean Shipping Reform Act of 2022 (OSRA 2022) and the Frank LoBiondo Coast Guard 

Authorization Act of 2018 (LoBiondo Act). 

Parts A and B of Subtitle IV deal with the regulation of ocean shipping and were formerly known 

as the Shipping Act of 1984, as amended (the Shipping Act), the Foreign Shipping Practices Act of 

1988 (FSPA) and Section 19 of the Merchant Marine Act, 1920. The Commission also administers 

and enforces Part C of Subtitle IV, formerly sections 2 and 3 of P.L. 89-777, and section 

3503(b)(1)(C) of title 46, United States Code. Part C and section 3503 deal with the financial 

responsibility of cruise line operators towards passengers of such vessels. Part D of Subtitle IV 

addresses the Commission generally, including its organization and authority to prescribe 

regulations. Part D also contains provisions or amendments that were in the Shipping Act, the 

FSPA and the LoBiondo Act.

Strategic Goals and Stewardship Objective 

Detailed performance information can also be found in the FMC’s annual Performance and 

Accountability Reports at www.fmc.gov/about-the-fmc/performance-and-accountabiltyreports/. 
800 North Capitol St., NW, Washington, D.C. 20573