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Fiscal Year 2010 Budget Estimates

T A B L E O F C O N T E N T S

 

Alphabetical Listing of Abbreviations ...................................................... 1 

Justification Materials: 

Message from the Commission ................................................................. 5 

Organization Chart .................................................................................... 6 

Summary and Highlight Statement ........................................................... 7 

FMC Mission ........................................................................................... 14 

FTE and Positions by Program ............................................................... 15 

Obligations by Object Class ..................................................................... 16 

Average Salary and Grade ....................................................................... 17 

Request by Strategic Goal and Program ................................................. 18 

Summary of Changes .............................................................................. 19 

Appropriation Language ......................................................................... 20 

FY 2010 Budget Request by Strategic Goal ............................................ 21 

FY 2010 Budget Request by Program ..................................................... 22 

Relationship of Obligations to Outlays .................................................... 23 

Budget Justifications:

Formal Proceedings Program ................................................................... 24 

 Office of the Chairman ........................................................................ 25 

 Office of the Commissioners .............................................................. 26 

 Office of the Secretary ........................................................................ 27 

 Consumer Affairs and Dispute Resolution Services ...................... 29 

 Library ............................................................................................ 31 

 Office of the General Counsel ............................................................. 33 

 Designated Agency Ethics Official ................................................ 38 

 Office of Administrative Law Judges ................................................. 40 

Equal Employment Opportunity Program ............................................... 42 

Inspector General Program ...................................................................... 44 
Operations Program.................................................................................. 46 

 Office of the Director ..................................................................... 46 

 Bureau of Trade Analysis .................................................................... 49 

 Office of Service Contracts and Tariffs ......................................... 50 

 Office of Economics and Competition Analysis ........................... 53 

 Office of Agreements ..................................................................... 56 

 Bureau of Certification and Licensing ................................................ 59 

 Office of Passenger Vessels and Information Processing ............. 60 

 Office of Transportation Intermediaries ........................................ 62 

 Bureau of Enforcement ....................................................................... 64 

Administration Program ........................................................................... 68 

 Office of the Director .......................................................................... 68 

 Office of Information Technology ...................................................... 70 

 Office of Human Resources ................................................................ 72 

 Office of Financial Management ........................................................ 74 

 Office of Management Services .......................................................... 76 

Strategic Goals ......................................................................................... 79 

 Factors Affecting the Achievement of Goals ...................................... 79 

 Strategic Goal Number 1 ..................................................................... 81 

 Strategic Goal Number 2 ..................................................................... 85 

 Strategic Goal Number 3 ..................................................................... 91 

Appendix A – Workload Statistics ........................................................... 94 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 1 

Alphabetical Listing of Abbreviations

 -#- 

1920 Act Section 19 of the Merchant Marine Act, 1920 

1984 Act Shipping Act of 1984 

1978 Act Inspector General Act of 1978 

 -AACE/ITDS Automated Commercial Environment/International Trade Data System 

ADR Alternative Dispute Resolution 

Agency Federal Maritime Commission 

ALJ Administrative Law Judge 

APEC Asian-Pacific Economic Cooperation 

AR Area Representative 

ASPI American Security Programs Incorporated 

 -BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BTA Bureau of Trade Analysis 

 -CCADRS Consumer Affairs and Dispute Resolution Services 

CBP U.S. Bureau of Customs and Border Protection 

CFR Code of Federal Regulations 

CIO Chief Information Officer 

Commission Federal Maritime Commission 

COOP Continuity of Operations 

CTP Clean Truck Program 

 -DDCIA Debt Collection Improvement Act 

DHS Department of Homeland Security 

DOT Department of Transportation 

 -EEC European Commission 

ECC Exemption Council Regulation 

ECIE Executive Council on Integrity and Efficiency 

EEO Equal Employment Opportunity 

eOPF Electronic Official Personnel Folder 

ERT Emergency Response Team 

ES Executive Service 

EU European Union 

EX Executive Schedule 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 2 

 -FFAEC Federal Audit Executive Council 

FDCC Federal Desktop Core Configuration 

FISMA Federal Information Security Management Act of 2002 

FMC Federal Maritime Commission 

Flanagan Robert L. Flanagan and F. Brooks Royster, III 

FPS Federal Protective Service 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full-time Equivalent 

FWPIC Federal Women’s Program Interagency Council 

FY Fiscal Year 

 -GGM A GS employee formerly covered by the Performance 

 Management and Recognition System 

GPEA Government Paperwork Elimination Act 

GPRA Government Performance and Results Act 

GS General Schedule 

GSA Government Services Administration 

 -HHSPD-12 Homeland Security Presidential Directive 12 

HQ Headquarters (FMC) 

HUD Housing and Urban Development 

 -IIAG Interagency Agreement 

IG Inspector General 

Intership International Shipping Agency, Inc. 

IPv6 Internet Protocol Version 6 

IT Information Technology 

 -L- 

 LA Los Angeles 

Landstar Landstar Global Logistics, Inc. 

LMC Licensed Motor Carrier 

 

 -MMD&A Management’s Discussion and Analysis 

MOU Memorandum of Understanding 

MPA Maryland Port Administration 

MTO Marine Terminal Operator 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 3 

 -N- 

 NEPA National Environmental Policy Act of 1969 

NFC National Finance Center 

NVOCC Non-Vessel-Operating Common Carrier 

NSA NVOCC Service Arrangement 

 -OOA Office of Administration 

OALJ Office of Administrative Law Judges 

OECA Office of Economics & Competition Analysis 

OEP Occupant Emergency Plan 

OFM Office of Financial Management 

OGC Office of General Counsel 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMS Office of Management Services 

OPM Office of Personnel Management 

OPS Office of Operations 

OS Office of the Secretary 

OSCT Office of Service Contracts & Tariffs 

OSRA Ocean Shipping Reform Act of 1998 

OTI Ocean Transportation Intermediary 

 -PPAR Performance and Accountability Report 

PDA Personal Digital Assistant 

PIERS Port Import Export Reporting Service 

PII Personally Identifiable Information 

PIO Performance Improvement Officer 

P.L. Public Law 

Premier Premier Automotive Services, Inc. 

PRPA Puerto Rico Ports Authority 

PVO Passenger Vessel Operator 

 -QQI Qualifying Individual 

 -RRPI Regulated Persons Index 

 -SSAC Small Agency Council 

SBA Small Business Administration 

SES Senior Executive Service 

Shipping Act Shipping Act of 1984 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 4 

SQL Structured Query Language 

 -TTeam Ocean Team Ocean Services, Inc. 

the Ports The Port of Los Angeles and the Port of Long Beach 

TSA Transpacific Stabilization Agreement 

 -U- 

 UPR Unearned Passenger Revenue 

U.S. United States 

U.S.C. United States Code 

 -VVOCC Vessel-Operating Common Carrier 

VoIP Voice over Internet Protocol 

VSCG Voluntary Service Contract Guidelines 

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 5 

Message from the Commission

FMC Core Functions 

The Federal Maritime Commission (“FMC”, “Agency”, or “Commission”) is an independent 

regulatory agency which administers the Shipping Act of 1984 (“1984 Act” or “Shipping Act”) as 

amended by the Ocean Shipping Reform Act of 1998 (“OSRA”); section 19 of the Merchant Marine 

Act, 1920 (“1920 Act”); the Foreign Shipping Practices Act of 1988 (“FSPA”); and Public Law (“P. 

L.”) 89-777 (passenger vessel certification). The Commission: monitors the activities of ocean 

common carriers, marine terminal operators (“MTOs”), conferences, ports and ocean transportation 

intermediaries (non-vessel-operating common carriers and ocean freight forwarders) who operate in 

the U.S. foreign commerce to ensure they maintain just and reasonable practices; maintains a trade 

monitoring and enforcement program designed to assist regulated entities in achieving compliance 

and to detect and appropriately remedy malpractices and violations of the prohibited acts set forth in 

section 10 of the 1984 Act; monitors the laws and practices of foreign governments which could have 

a discriminatory or otherwise adverse impact on shipping conditions in U.S. trades, and imposes 

remedial action, as appropriate, pursuant to section 19 of the 1920 Act or FSPA; enforces special 

regulatory requirements applicable to carriers owned or controlled by foreign governments; processes 

and reviews agreements, service contracts, and service arrangements pursuant to the 1984 Act for 

compliance with statutory requirements; and reviews common carriers’ privately published tariff 

systems for accessibility and accuracy, as required by OSRA. The Commission also issues licenses 

to qualified ocean transportation intermediaries (“OTIs”) in the U.S., ensures that all OTIs are bonded 

or maintain other evidence of financial responsibility, and ensures that passenger vessel operators 

(“PVOs”) demonstrate adequate financial responsibility in case of nonperformance of voyages or 

injury to passengers. 

Organization 

 

The FMC is composed of five Commissioners appointed for five-year terms by the President with the 

advice and consent of the Senate. No more than three members of the FMC may belong to the same 

political party. The President designates one of the Commissioners to serve as Chairman. The 

Chairman is the chief executive and administrative officer of the agency. The FMC’s organizational 

units consist of: Office of the Commissioners; Office of the General Counsel (“OGC”); Office of the 

Secretary (“OS”), including the Library and Office of Consumer Affairs and Dispute Resolution 

Services (“CADRS”); Office of Administrative Law Judges (“OALJ”); Office of Equal Employment 

Opportunity (“EEO”); Office of the Inspector General (“OIG”); Office of Operations (“OPS”), 

including the Bureaus of Certification and Licensing (“BCL”), Enforcement (“BOE”), and Trade 

Analysis (“BTA”); and Office of Administration (“OA”), including the Offices of Financial 

Management (“OFM”), Human Resources (“OHR”), Information Technology (“OIT”), and 

Management Services (“OMS”). The majority of FMC personnel are located in Washington, D.C., 

with Area Representatives (“ARs”) in New York, New Orleans, Los Angeles, Seattle, Houston and 

South Florida. 

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 6 

Federal Maritime Commission

Organization Chart

(as of September 30, 2008)

Office of Equal

Employment

Opportunity

Office of the

Inspector General

Office of the

Secretary

Office of

Operations

Office of

Administration

Office of the

General Counsel

Commissioner

(DYE)

Commissioner

(BRENNAN)

Chairman

(VACANT)

Commissioner

(CREEL)

Commissioner

(VACANT)

Bureau of

Certification

 and Licensing

Bureau of

Enforcement

Bureau of Trade

Analysis

Office of

Administrative

Law Judges

Office of

Consumer Affairs

and Dispute

Resolution

Services

Area

Representatives

New York

Los Angeles

Houston

New Orleans

Seattle

South Florida

Office of Financial

Management

Office of Human

Resources

Office of

Information

Technology

Office of

Management

Services
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 7 

Summary and Highlight Statement for Fiscal Year 2010 Budget Estimates

The Commission’s activities during fiscal year 2008 include the following: 

• Issued an order to dismiss the proceeding in Docket No. 06-03, Premier Automotive Services, 

Inc. v. Robert L. Flanagan and F. Brooks Royster, III. Premier Automotive Services, Inc. 

(“Premier”) filed a complaint against Robert L. Flanagan and F. Brooks Royster, III 

(collectively “Flanagan”) alleging that Flanagan’s marine terminal leasing practices violated 

the Shipping Act. Flanagan filed a Motion to Dismiss, arguing that (1) the case is barred by 

constitutional principles of state sovereign immunity; (2) the Shipping Act does not authorize 

private complaints for injunctive relief; and (3) the respondents should not be held liable as 

individuals under provisions of the Shipping Act which are specifically applicable to common 

carriers, OTIs and MTOs. Premier’s response argued that the action is within the Ex parte 

Young, 209 U.S. 123 (1908) exception to state sovereign immunity and that the Shipping Act 

provides for prospective injunctive relief. The ALJ granted the motion to dismiss on March 

31, 2006, finding that the complaint was barred by sovereign immunity since Young did not 

apply. Premier appealed the ALJ’s decision, and the Commission upheld the ALJ and 

dismissed the proceeding on June 11, 2008. 

• Issued an order in Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority, 

Docket No. 04-01, International Shipping Agency, Inc. v. The Puerto Rico Ports Authority, 

and Docket No. 04-06, San Antonio Maritime Corp. and Antilles Cement Corp. v. Puerto Rico 

Ports Authority. On a 3-2 vote, the Commission on November 30, 2006, found that the Puerto 

Rico Ports Authority (“PRPA”) is not an arm of the Commonwealth of Puerto Rico and, 

therefore, is not entitled to sovereign immunity. Complainants had alleged that PRPA’s 

marine terminal leasing practices violate the Shipping Act, and that PRPA’s activities are 

contrary to the terms of an agreement filed with the Commission. PRPA sought dismissal of 

the action, arguing that the complaints are barred by PRPA’s sovereign immunity as an arm of 

the Commonwealth of Puerto Rico. The Commission’s decision affirmed the Administrative 

Law Judge’s (“ALJ’s”) decision that PRPA was not entitled to sovereign immunity. PRPA 

sought review of the Commission’s decision in the U.S. Court of Appeals for the D.C. Circuit. 

The Court heard oral argument on October 26, 2007. On July 8, 2008, the Court issued its 

opinion finding that PRPA is an arm of the Commonwealth of Puerto Rico and is, therefore, 

immune from suit absent its consent. The International Shipping Agency, Inc. (“Intership”) 

filed a motion on August 25, 2008, to stay the Court’s mandate pending filing of a petition for 

writ of certiorari. The Court granted Intership’s motion on September 16, 2008. A petition 

for a writ of certiorari at the United States Supreme Court was filed by Intership on October 

8, 2008. The Supreme Court denied Intership’s writ on February 23, 2009. 

• Issued an order in Docket 06-06 Eurousa Shipping, Inc., Tober Group, Inc. and Container 

Innovations, Inc. – Possible Violations, on an appeal of the ALJ’s grant of summary judgment 

on December 18, 2008. This proceeding was instituted by Order of Investigation and Hearing 

served May 11, 2006, to determine whether respondents violated section 10(b)(11) of the 

Shipping Act and the Commission’s regulations at 46 C.F.R. § 515.27, by knowingly and 

willfully accepting cargo from or transporting cargo for the account of an ocean transportation 

intermediary that did not have a tariff and a bond as required by sections 8 and 19 of the Act. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 8 

In overturning the grant of summary judgment, the Commission’s order remands the 

proceeding back to the ALJ for further proceedings. 

• Continued financial and documentary reviews of PVOs under section 3, P.L. 89-777 to 

evaluate PVO compliance in reporting unearned passenger revenue (“UPR”), and to 

determine whether passenger receipts are timely and accurately deposited by the cruise 

operators into the FMC-approved escrow accounts. 

• Successfully implemented electronic filing of Form FMC-18, Application for an Ocean 

Transportation Intermediary License. 

• Continued to modernize and expand the Regulated Persons Index (“RPI”), a Commission 

database containing up-to-date information on licensed OTIs, ocean common carriers and 

other entities. Among other data uses, the RPI is used to post on the Commission’s website a 

list of OTIs which are compliant with OTI requirements so that carriers and others can 

ascertain whether an OTI is properly licensed, bonded, and, if required, has posted the 

location of its automated tariff. The OTI list also indicates whether an NVOCC has filed an 

optional rider for additional proof of NVOCC financial responsibility to their existing 

NVOCC bond to meet financial responsibility requirements imposed by the Chinese 

government. 

• Initiated a plan to automate the PVO Application Form FMC-131, Application for Certificate 

of Financial Responsibility, and conducted a preliminary requirements analysis. 

• Received an “unqualified opinion” from independent auditors on the Commission’s Fiscal 

Year 2008 Financial Statements. 

• Initiated a regular meeting schedule, meeting the second and fourth weeks of the month, to 

discuss industry and administrative matters before the Commission in both public and closed 

sessions. 

• Issued an Order of Investigation and Hearing in Docket No. 08-05 to determine whether 

certain aspects of the respective Clean Air Action Plans of the Port of Los Angeles and the 

Port of Long Beach, CA, are “just and reasonable” within the meaning of section 10(d)(1) of 

the Shipping Act, 46 USC 41102(c); do not “give any undue or unreasonable preference or 

advantage or impose any undue or unreasonable prejudice or disadvantage with respect to any 

person” under section 10(d)(4), 46 USC 41106(2); or constitute an “unreasonable refusal to 

deal or negotiate” under section 10(b)(10), 46 USC 41106(3). 

• Initiated a shipper/carrier forum for discussing export container and space shortages and 

exploring potential means of alleviating problems emanating from those shortages. As the 

problems are largely driven by economic and market conditions, the Commission used its 

Alternative Dispute Resolution (“ADR”) program to facilitate discussions and assist carriers 

and shippers in exploring their options to secure containers. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 9 

In addition to the above, the Commission, as part of its ongoing activities: 

• Collected penalties totaling $182,500. The revenues were deposited in the U.S. Treasury 

general fund account. 

• Continued to accumulate information on the laws and practices of foreign governments and 

monitor activities in the U.S. foreign trades to address any condition which appears 

unfavorable to U.S. shipping interests. 

• Continued to receive and evaluate semi-annual reports from U.S.-flag and Japanese-flag 

vessels operating in the trades with Japan pursuant to its proceeding in Docket No. 96-20, 

Port Restrictions and Requirements in the United States/Japan Trade. 

• Continued its On-Site Monitoring Program that evaluates PVO financial responsibility under 

47 U.S.C. 44103. 

• Reviewed 80 bills, proposals and Congressional inquiries referred to the General Counsel for 

determination of impact on Commission programs, policies or operations; and to evaluate 

need for formal or informal contacts with Congressional staff. 

• Provided mediation services in several matters, thus assisting parties in avoiding significant 

litigation costs and risks. 

• Continued to make improvements to the Commission’s website by adjusting how information 

is presented, increasing the amount of information available, and adding functionality by 

increasing the accessibility of information on filed agreements through website publishing of 

weekly agreement filing notices that appear in the Federal Register. This enhancement 

provides greater public awareness of agreement filings. 

• Approved and issued 30 casualty and 37 performance certificates. Currently, 203 vessels and 

48 operators have evidence of financial responsibility coverage on file with the Commission 

in excess of $339 million for nonperformance and over $725 million for casualty. 

• Issued 474 OTI licenses and revoked 227 licenses. Bonds for 76 non-U.S.-based unlicensed 

NVOCCs were cancelled. At the end of fiscal year 2008, there were 5,304 licensed and/or 

bonded OTIs. 

• Received and processed 990 original non-vessel-operating common carrier (“NVOCC”) 

Service Arrangements (“NSAs”) and 1,434 amendments that were filed by NVOCCs. 

• Monitored service contracts and tariff filings to ensure fair and equitable trading conditions. 

Received and processed 44,438 new service contracts and 294,880 contract amendments. 

• Continued an exchange of enforcement information with the U.S. Bureau of Customs and 

Border Protection (“CBP”) in accordance with a Memorandum of Understanding (“MOU”). 

The two agencies have expanded into joint field operations to investigate entities suspected of 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 10 

violating both agencies’ statutes or regulations. Such cooperation often includes local police 

and U.S. Citizenship and Immigration Services. 

• Continued working with carriers, carrier agreements, MTOs, PVOs, and OTIs to obtain 

statutory compliance in all major trades and with all segments of the transportation industry. 

Particular emphasis was placed on service contract activities in order to ensure fair trading 

conditions and adequate protection of the public. 

• Continued its program designed to identify controlled carriers effectively and quickly, and to 

ensure appropriate monitoring of controlled carrier activities. This included reviewing 

documents and information relating to the controlled carrier status of a number of carriers. 

• Monitored agreement activities and trade conditions affecting oceanborne foreign commerce 

by reviewing, evaluating and processing 176 carrier and marine terminal agreement filings. 

• Received 1,016 sets of minutes of agreements meetings and 197 submissions of voluntary 

service contract guidelines, as well as 199 monitoring reports containing market share, cargo, 

revenue, and service data for agreement parties. Additionally, five applications for waiver 

requests were processed. 

• Conducted, through the OIG, annual reviews of the agency’s financial statement and 

information security and privacy assurance controls, as well as other audits and reviews of 

FMC programs and activities. 

• Continued a program of semi-annual meetings with carrier representatives of the TransPacific Stabilization Agreement (“TSA”) pursuant to settlement terms agreed to in Fact 

Finding Investigation No. 25, Practices of Transpacific Stabilization Agreement Members 

Covering the 2002-2003 Service Contract Season. 

• Posted 4,543 active/current tariff location addresses for carriers, conferences, and MTOs on 

the agency’s website to ensure public access to tariff data. Commission staff also maintains a 

historical record of 2,456 inactive/cancelled tariff location addresses, which are available for 

public access. 

• Conducted competitive impact analyses of agreements and agreement modifications and 

ongoing analyses of periodic data and information of effective agreements to ensure their 

compliance with the Shipping Act. 

• Maintained an agreements database and library containing up-to-date information pertaining 

to effective agreements. 

• Collected $306,946 in fees for publications and photocopies, ocean freight forwarder/NVOCC 

licensing, passenger vessel certifications, special permissions and other applications. These 

revenues were deposited in the U.S. Treasury general fund account. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 11 

• Provided consumer assistance consistent with the policies of Executive Order 12160, 

“Providing for Enhancement and Coordination of Federal Consumer Programs,” while also 

assisting regulated entities in achieving compliance with statutory requirements. 

• Developed internal controls vulnerability assessments in line with OMB Circular A-123, 

Management Responsibility for Internal Controls. 

• Completed the agency’s Program Performance Report for fiscal year 2007, finalized the 

agency’s Strategic Plan for 2010-2015, developed the Initial Annual Performance Plan for 

2010, and developed the Final Annual Performance Plan for fiscal year 2009 in accordance 

with the Government Performance and Results Act of 1993. 

• Continued information technology efforts to ensure compliance with statutory requirements 

and to coordinate the Commission’s automation program, including implementation of the 

government’s new Internet Protocol Version 6 (“IPv6”) telephone system. 

• Continued electronically scanning/imaging Commission records, improving staff response 

time to public inquiries and facilitating public access to electronic files. 

• Continued, through the Small Agency Human Resources Consortium, to develop and 

implement the Electronic Official Personnel Folder (“eOPF”) system to convert all agency 

personnel records to digital format. 

• Continued an investigation into the operations of unlicensed, unbonded OTIs that provide 

transportation of household goods and personal effects, including enforcement of the 

prohibition on Vessel-Operating Common Carriers (“VOCCs”) and licensed NVOCCs 

providing service to such unlawful operators. 

• Prepared budget justifications and estimates for the fiscal year 2009 Congressional budget and 

fiscal year 2010 Baseline budget documents requested by the Office of Management and 

Budget (“OMB”), and produced the agency’s fiscal year 2007 Management’s Discussion and 

Analysis (“MD&A”), and the agency’s Performance and Accountability Report (“PAR”). 

• Converted 28 bound volumes of the Commission’s official decisions to electronic format. 

As part of its program objectives for fiscal years 2009 and 2010, the Commission plans to: 

• Expand the agency’s outreach efforts, raise public awareness of agency regulations and 

services, and organize shipper/carrier forums to discuss export problems and other industrywide problems, as appropriate. 

• Continue to protect the shipping public from unlawful practices in the marketplace through 

use of investigative, liaison and outreach functions, review agency policies and regulations, 

and continue to focus on automating certain processes for the convenience of the public. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 12 

• Continue to pursue market-distorting, fraudulent, and anticompetitive practices harmful to the 

industry and the public and to monitor U.S. trades and the implementation of the 

Commission=s regulations. 

• Enhance public access to agreements and implement procedures for the electronic filing of 

agreements. 

• Continue its outreach and programs to promote awareness of OTI and PVO requirements. 

• Continue efforts to enhance the electronic Form FMC-18 system to expedite licensing, 

including the functionality for electronic payments, e-signature capability, and electronic 

filing of bond information. 

• Analyze how vessel operators and MTOs are using antitrust immunity under the Shipping Act 

in the current market environment. 

• Improve the Commission’s monitoring program of agreements designed to address supplychain and operational issues, such as port congestion, security, air pollution and 

environmental concerns that affect local communities and the industry. 

• Continue implementation of Homeland Security Presidential Directive 12 (“HSPD-12”), the 

government-wide identification card system, and the credentialing of all employees. 

• Continue, through the Commission’s Inspector General, to conduct and supervise audits and 

investigations relating to the programs and operations of the FMC, and make 

recommendations designed to promote efficiency and effectiveness in agency administration 

and to combat fraud, waste, and abuse. 

 

• Enhance the PVO monitoring program by performing one on-site review of a cruise line’s 

unearned passenger revenue each year; conduct quarterly reviews of the PVO monitoring files 

to ensure cruise line operators provide timely and accurate information with respect to the 

submission of reports and records; and make appropriate corrections in staff procedures and 

monitoring schedules, and follow up to ensure that the new procedures are timely 

implemented. 

• Migrate to an updated platform for paperless check conversion for financial transactions, and 

implement use of Pay.gov for agencywide acceptance of electronic payments. 

• Continue the update of the Commission’s technology infrastructure, including completion of 

the IPv6 upgrade and implementing Voice over Internet Protocol (“VoIP”). 

• Complete migration to eOPF-compliant electronic records system, including scanning of 

applicable employee records now in paper format and train human resources staff and agency 

employees as to the new system. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 13 

• Consider expanding the agency’s telework program to encourage employee use and advance 

efficiency of operations. 

 

• Complete implementation of an on-line catalogue of the Commission’s reference and law 

library materials, facilitating desktop access for agency employees. 

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 14 

FMC Mission

To foster a fair, efficient and reliable international ocean transportation system 

and to protect the public from unfair and deceptive practices 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 15 

Program/Office FTE Positions* FTE Positions* FTE Positions* FTE Positions*

Headquarters 106.54 111.00 115.94 124.00 122.50 124.00 5.66% 0.00%

Area Representatives 8.00 8.00 8.08 8.00 8.00 8.00 ‐0.99% 0.00%

Agency Total 114.54 119.00 124.02 132.00 130.50 132.00 5.22% 0.00%

Formal Proceedings

     Office of the Chairman 0.00 0.00 0.75 3.00 3.00 3.00 300.00% 0.00%

     Office of the Commissioners 6.42 5.00 5.75 8.00 8.00 8.00 39.13% 0.00%

     Office of the Secretary 5.15 5.00 5.92 7.00 7.00 7.00 18.24% 0.00%

          CADRS 7.49 8.00 7.60 8.00 7.60 8.00 0.00% 0.00%

          Library 1.20 1.00 1.00 1.00 1.00 1.00 0.00% 0.00%

Office of the General Counsel 8.21 10.00 10.00 10.00 9.60 10.00 ‐4.00% 0.00%

Office of Administrative Law Judges 2.00 2.00 2.25 3.00 3.00 3.00 33.33% 0.00%

Formal Proceedings Total 30.47 31.00 33.27 40.00 39.20 40.00 17.82% 0.00%

Equal Employment Opportunity 0.15 0.00 0.75 1.00 1.00 1.00 33.33% 0.00%

Inspector General 2.45 3.00 2.60 3.00 2.60 3.00 0.00% 0.00%

Operations

     Office of the Director 4.32 4.00 3.62 4.00 4.00 4.00 10.50% 0.00%

          Area Representatives 8.00 8.00 8.08 8.00 8.00 8.00 ‐0.99% 0.00%

          Bureau of Trade Analysis

               Office of the Director 4.42 4.00 4.00 4.00 3.90 4.00 ‐2.50% 0.00%

               Office of Service Contracts & Tariffs 5.02 5.00 5.40 6.00 6.00 6.00 11.11% 0.00%

               Office of Economics  & Competition  Analysis 4.94 6.00 6.00 6.00 6.00 6.00 0.00% 0.00%

               Office of Agreements 4.00 4.00 4.00 4.00 4.00 4.00 0.00% 0.00%

          Bureau of Certification & Licensing

               Office of the Director 4.14 4.00 4.00 4.00 3.90 4.00 ‐2.50% 0.00%

               Office of Passenger Vessels & Information Processing 5.38 6.00 5.59 6.00 6.00 6.00 7.33% 0.00%

               Office of Transportation Intermediaries 7.93 8.00 8.11 9.00 9.00 9.00 10.97% 0.00%

          Bureau of Enforcement 9.69 11.00 12.00 12.00 11.90 12.00 ‐0.83% 0.00%

Operations Total 57.84 60.00 60.80 63.00 62.70 63.00 3.13% 0.00%

Administration

     Office of the Director 3.82 3.00 3.31 4.00 4.00 4.00 20.85% 0.00%

          Office of Information Technology 5.92 7.00 7.00 7.00 7.00 7.00 0.00% 0.00%

          Office of Human Resources** 4.12 5.00 6.29 4.00 4.00 4.00 ‐36.41% 0.00%

          Office of Financial Management 5.00 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

          Office of Management Services 4.77 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

Administration Total 23.63 25.00 26.60 25.00 25.00 25.00 ‐6.02% 0.00%

Total FTEs and Positions 114.54 119.00 124.02 132.00 130.50 132.00 5.22% 0.00%

* Denotes positions on September 30.

** FY 2009 FTE level includes 2.14 FTEs for a Summer Hire Program.

Percent Difference

From FY 09

FTE and Positions by Program

FY 2008 ‐ FY 2010

FY 2008

Actual

FY 2009

Estimate

FY 2010

Request
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 16 

FY 2008 FY 2009 FY 2010

Category Actual Estimate Estimate

     Full‐time Permanent Employees (11.9) 11,309,548.00 $    $   12,702,000.00 $   14,206,000.00

     Other Than Full‐time Permanent Employees (11.3) 88,293.00 $            $         129,000.00 $           73,000.00

     Awards (11.7) 421,571.00 $          $            ‐ 24,000.00 $                        

     Civilian Personnel Benefits (12.1) 2,560,336.00 $      $     2,964,000.00 $     3,491,000.00

Total Personnel Compensation & Benefits 14,379,748.00 $    $   15,819,000.00 $   17,770,000.00

     Travel & Transportation of Personnel (21.0) 231,218.00 $          $         283,000.00 $         283,000.00

     Transportation of Things (FEDEX) (22.0) 10,988.00 $            $           15,000.00 $           18,000.00

          Rental Payments to GSA (23.1) 3,014,766.00 $      $     3,260,000.00 $     3,260,000.00

          Rental Payments to Others (23.2) 43,111.00 $            $           28,000.00 $           28,000.00

          Local & Long Distance, Cellular & FTS Telephones (23.5) 361,834.00 $          $         190,000.00 $         165,000.00

          Postage (28.3) 2,902.00 $              $           18,000.00 $           18,000.00

     Printing (24.0) 122,500.00 $          $         125,000.00 $         138,000.00

     Consulting Services (25.1) 218,257.00 $          $         188,000.00 $         183,000.00

     Purchase of Goods & Services from Commercial Accounts (25.2) 1,226,720.00 $      $     1,061,000.00 $     1,050,000.00

     Purchase of Goods & Services from Government Accounts (25.3) 1,619,935.00 $      $     1,163,000.00 $     1,267,000.00

     Equipment Maintenance (25.7) 73,292.00 $            $         102,000.00 $         102,000.00

     Supplies & Materials (26.0) 149,235.00 $          $         285,000.00 $         255,000.00

     Furniture & Equipment (31.0) 169,915.00 $          $         263,000.00 $           21,000.00

Total Travel and Administrative Expenses 7,244,673.00 $      $     6,981,000.00 $     6,788,000.00

Total Obligations 21,624,421.00 $    $   22,800,000.00 $   24,558,000.00

Obligations by Object Class

FY 2008 ‐ FY 2010

Travel and Administrative Expenses

Personnel Compensation & Benefits

     Rent, Communications & Utilities
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 17 

FY 2008 FY 2009 FY 2010

Actual Estimate Request

Average Salary

     Full‐time Permanent GS $9,290,755.64 $10,281,994.45 $10,835,979.90

     Full‐time Permanent GM $395,349.60 $422,146.69 $427,791.96

     Part‐time $88,293.24 $129,021.80 $73,395.60

     Other (Schedule‐C, EX, ALJs, SES) $2,045,013.04 $1,964,992.92 $2,941,832.54

Overall Average Salary $96,092.78 $96,955.73 $109,328.40

Average Grade (includes part‐time positions)

General Schedule

     GS‐04 2.00 1.00 1.00

     GS‐05 1.00 1.00 1.00

     GS‐06

     GS‐07 5.00 5.00 5.00

     GS‐08 4.00 2.00 3.00

     GS‐09 2.00 3.00 1.00

     GS‐10

     GS‐11 4.00 7.00 6.00

     GS‐12 25.00 27.00 23.00

     GS‐13 25.00 23.00 25.00

     GS‐14 25.00 29.00 32.00

     GS‐15 13.00 19.00 19.00

Average GS 12.30 12.63 12.73

     GM‐14 2.00 2.00 2.00

     GM‐15 1.00 1.00 1.00

Average GM 14.33 14.33 14.33

     ES‐03 1.00 1.00 1.00

     ES‐04 5.00 5.00 6.00

Average ES 3.83 3.83 3.86

     AL‐3/E 1.00 1.00 1.00

Average AL 3.00 3.00 3.00

     Presidential Appointees 3.00 5.00 5.00

Average EX EX EX EX

Total Positions 119.00 132.00 132.00

Average Salary & Grade

FY 2008 ‐ FY 2010

Category
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 18 

Strategic Goal # 1 Strategic Goal # 2 Strategic Goal # 3

Maintain an

efficient and

competitive

international

ocean

transportation

system

Protect the public

from unlawful, unfair

and deceptive

practices and resolve

shipping disputes

Advance agency

objectives through high‐

performance leadership

and efficient

stewardship of

resources

Formal Proceedings

     Office of the Chairman $5,088.01 $219,949.43 $103,334.16 $413,626.10 $206,668.33 $723,628.59 $718,540.58 $503,679.16

     Office of the Commissioners $1,461,104.92 $1,429,429.47 $285,052.65 $1,141,009.07 $570,105.31 $1,996,167.03 $535,062.11 $566,737.56

     Office of the Secretary $929,178.38 $1,017,375.26 $172,428.73 $890,060.68 $87,035.45 $1,149,524.86 $220,346.48 $132,149.60

          CADRS $1,278,110.96 $1,301,909.46 $0.00 $1,268,937.23 $70,496.51 $1,339,433.74 $61,322.78 $37,524.28

          Library $205,176.97 $428,885.21 $45,793.79 $328,188.81 $7,632.30 $381,614.90 $176,437.93 ($47,270.31)

     Office of the General Counsel $1,434,277.82 $1,906,853.17 $511,521.34 $973,796.28 $379,634.27 $1,864,951.89 $430,674.07 ($41,901.28)

          Ethics $1,015.95 $3,932.82 $1,241.18 $1,241.18 $1,241.18 $3,723.54 $2,707.59 ($209.28)

    Office of  Administrative Law Judges $367,974.77 $483,771.15 $79,376.65 $317,728.96 $158,753.30 $555,858.91 $187,884.14 $72,087.76

Formal Proceedings Total $5,681,927.78 $6,792,105.97 $1,198,748.50 $5,334,588.31 $1,481,566.65 $8,014,903.46 $2,332,975.68 $1,222,797.49

Equal Employment Opportunity $163,814.15 $181,913.03 $34,063.00 $136,347.40 $68,126.00 $238,536.40 $74,722.25 $56,623.37

Inspector General $575,535.80 $572,113.92 $0.00 $0.00 $583,779.32 $583,779.32 $8,243.52 $11,665.40

Operations

     Office of the Director $950,386.62 $955,947.59 $300,284.56 $538,009.84 $162,654.14 $1,000,948.54 $50,561.92 $45,000.95

          Area Representatives $1,541,250.18 $1,618,327.91 $147,127.91 $1,471,279.09 $16,347.54 $1,634,754.54 $93,504.36 $16,426.63

     Bureau of Trade Analysis $2,932,810.80 $3,126,454.36 $1,775,936.24 $1,071,860.27 $416,135.44 $3,263,931.95 $331,121.15 $137,477.59

     Bureau of Certification & Licensing $2,518,474.84 $2,679,313.36 $0.00 $2,317,801.02 $419,955.35 $2,737,756.37 $219,281.53 $58,443.01

     Bureau of Enforcement $1,790,610.10 $2,198,041.71 $386,100.55 $1,790,362.52 $91,996.80 $2,268,459.87 $477,849.77 $70,418.16

Operations Total $9,733,532.54 $10,578,084.93 $2,609,449.26 $7,189,312.74 $1,107,089.27 $10,905,851.27 $1,172,318.73 $327,766.34

Administration

     Office of the Director $850,468.97 $592,174.90 $120,620.93 $201,034.87 $482,483.70 $804,139.50 ($46,329.47) $211,964.60

          Office of Information Technology $2,752,419.45 $2,074,003.27 $295,450.79 $492,417.98 $1,181,803.15 $1,969,671.92 ($782,747.53) ($104,331.35)

          Office of Human Resources $560,101.49 $604,330.31 $90,873.38 $151,455.64 $363,493.53 $605,822.55 $45,721.06 $1,492.24

          Office of Financial Management $616,890.89 $665,985.75 $94,450.22 $296,843.55 $283,350.66 $674,644.43 $57,753.54 $8,658.68

          Office of Management Services $689,729.66 $739,287.92 $114,097.67 $190,162.79 $456,390.69 $760,651.15 $70,921.49 $21,363.23

Administration Total $5,469,610.46 $4,675,782.15 $715,492.99 $1,331,914.83 $2,767,521.73 $4,814,929.55 ($654,680.91) $139,147.40

Totals $21,624,420.73 $22,800,000.00 $4,557,753.75 $13,992,163.28 $6,008,082.97 $24,558,000.00 $2,933,579.27 $1,758,000.00

Federal Maritime Commission

FY 2008 Actual FY 2009 Enacted

Request by Strategic Goal and Program

FY 2010

Changes Over      

FY 2008 Actual

Changes Over      

Program/Office FY 2010 Request FY 2009 Enacted

FY 2010 Request
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 19 

FY 2009 FY 2010 Net

Enacted Request Change

Spending Authority $22,800,000.00 $24,558,000.00 $1,758,000.00

Full‐time Equivalents * 124.02 130.50 6.48

Positions * 132.00 132.00 0.00

Amount

$1,137,000.00

$134,000.00

$353,000.00

$33,000.00

$527,000.00

($153,000.00)

($24,000.00)

($56,000.00)

$1,951,000.00

$0.00

$3,000.00

$0.00

$0.00

($25,000.00)

$0.00

$0.00

$13,000.00

($5,000.00)

($11,000.00)

$104,000.00

$0.00

($30,000.00)

($242,000.00)

($193,000.00)

$1,758,000.00

          Equipment Rentals (23.7)

          Postage (28.3)

     Printing (24.0)

     Consulting Services (25.1)

Travel and Administrative Expenses

     Rent, Communications & Utilities

     Transportation of Things (FEDEX) (22.0)

          Rental Payments to GSA (23.1)

          Rental Payments to Others (23.2)

          Local & Long Distance, Cellular & FTS Telephones (23.5)

     Furniture & Equipment (31.0)

     Total Travel and Administrative Expenses

Explanation of Changes:

Total Changes

     Travel & Transportation of Personnel (21.0)

     Purchase of Goods & Services from Commercial Accounts (25.2)

     Purchase of Goods & Services from Government Accounts (25.3)

     Equipment Maintenance (25.7)

     Supplies & Materials (26.0)

2010 Career Promotions and WIGs for Eligible Staff

Part‐time Employment

     Total Personnel Compensation and Benefits

Cash Awards

Costs Associated With Employee Benefits

Unspecified Attrition

Summary of Changes

FY 2009 ‐ FY 2010

Category

Annualization of FY 2009 Salary Increases and Staff Hired in FY 2009

2010 Cost of Living Increase (2.5%)

Annualization of 2009 Cost of Living Increase (4.78%)
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 20 

Appropriation Language 

For necessary expenses of the Federal Maritime Commission as authorized by section 201(d) of the 

Merchant Marine Act, 1936, as amended (46 U.S.C. App. 1111), including services as authorized by 

5 U.S.C. 3109; hire of passenger motor vehicles as authorized by 31 U.S.C. 1343(b); and uniforms or 

allowances therefore, as authorized by 5 U.S.C. 5901-5902, $22,800,000: [$24,558,000] Provided, 

That not to exceed $2,000 shall be available for official reception and representation expenses. 

(Omnibus Appropriations Act, 2009).
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Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 23 

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operations

Administration

Unobligated

                                           Budget Authority

                                           Obligations

                                           Outlays*

                                           Outlay Rate (Obligation to Outlay)**

                                           Obligation Rate

Total outlaysfor fiscal year 2004 disbursed in fiscal year 2008

Total outlaysfor fiscal year 2005 disbursed in fiscal year 2008

Total outlaysfor fiscal year 2006 disbursed in fiscal year 2008

Total outlaysfor fiscal year 2007 disbursed in fiscal year 2008

Total outlaysfor fiscal year 2008

                                           Outlays

* Represents Outlays for FY 2008 only.

** Represents the percentage of FY 2008 obligations that were disbursed during FY 2008.

Gross Outlays for FY 2008

$18,843,366.00 $19,466,640.00 $20,967,620.40

85.38% 85.38% 85.38%

97.98% 100.00% 100.00%

$5,681,927.78 $6,792,105.97 $8,014,903.46

Relationship of Obligations to Outlays

FY 2008 ‐ FY 2010

FY 2008           

Actual

FY 2009         

Enacted

FY 2010             

Requested

$163,814.15 $181,913.03 $238,536.40

$575,535.80 $572,113.92 $583,779.32

$9,733,532.54 $10,578,084.93 $10,905,851.27

$445,579.27 $0.00 $0.00

$5,469,610.46 $4,675,782.15 $4,814,929.55

$22,070,000.00 $22,800,000.00 $24,558,000.00

$22,070,000.00 $22,800,000.00 $24,558,000.00

$2,852.77

($248.97)

$20,797,770.84

$30,255.58

$18,463,234.54

$2,301,676.92

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 24 

Formal Proceedings Program

 

The Offices of Commissioners, Secretary, General Counsel and Administrative Law Judges comprise 

the Formal Proceedings Program. Within this program, the Commission conducts hearings, renders 

formal decisions in the disposition of docketed cases, compiles and maintains all official documents 

arising from proceedings, and conducts external representation activities before the Congress, courts 

of law, and other agencies. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Chairman 0.00 0.75 3.00

Commissioners 6.42 5.75 8.00

Secretary 5.15 5.92 7.00

CADRS 7.49 7.60 7.60

Library 1.20 1.00 1.00

General Counsel 8.21 10.00 9.60

Administrative Law Judges 2.00 2.25 3.00

Total FTEs 30.47 33.27 39.20

Cost: Salaries & Benefits $4,179,258.00 $4,771,169.43 $5,976,545.24

Non‐Personnel Expenses $1,502,669.78 $2,020,936.54 $2,038,358.22

Total Cost $5,681,927.78 $6,792,105.97 $8,014,903.46

Federal Maritime Commission

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Formal Proceedings

$1,198,748.50 $5,334,588.31 $1,481,566.65

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

5.80 26.50 6.90

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 25 

Office of the Chairman

The Chairman of the Commission is designated by the President of the United States and serves as 

the agency's chief executive and administrative officer. As a result, the Chairman has exclusive 

authority over agency personnel matters, organization and supervision, distribution of business and 

use of funds for administrative purposes. During fiscal year 2008 there was a vacancy in the 

Commission’s chairmanship. The authority to execute administrative functions was therefore 

transferred to the remaining Commissioners, who will retain this authority until a new Chairman is 

confirmed. During the fiscal year, the Commission initiated a regular meeting schedule, initially 

meeting the second and fourth weeks of the month, to discuss and act upon industry and 

administrative matters before the Commission in both public and closed sessions. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Chairman 0.00 0.75 3.00

Cost: Salaries & Benefits $0.00 $137,572.45 $552,217.40

Non‐Personnel Expenses $5,088.01 $82,376.98 $171,411.19

Total Cost $5,088.01 $219,949.43 $723,628.59

$103,334.16 $413,626.10 $206,668.33

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.43 1.71 0.86

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

Formal Proceedings

Office of the Chairman

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 26 

Office of the Commissioners

The Chairman and the other four Commissioners are responsible for making decisions and 

determinations in the disposition of docketed cases, and ensuring the efficient, equitable and 

expeditious resolution of all matters arising under statutes administered by the Commission. The 

Commission promulgates rules and regulations and issues decisions which interpret, enforce and 

assure compliance with the 1984 Act, as amended by OSRA, the 1920 Act, FSPA, and P. L. 89-777. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Commissioners 6.42 5.75 8.00

Cost: Salaries & Benefits $1,113,360.00 $1,084,545.29 $1,567,098.76

Non‐Personnel Expenses $347,744.92 $344,884.18 $429,068.27

Total Cost $1,461,104.92 $1,429,429.47 $1,996,167.03

$285,052.65 $1,141,009.07 $570,105.31

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.14 4.58 2.28

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

Formal Proceedings

Office of the Commissioners

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

During the fiscal year ending September 30, 2008, the Commission issued 20 orders and notices in 

docketed proceedings. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 27 

Office of the Secretary (“OS”)

The OS serves as the focal point for matters submitted to and emanating from the Commission. It is 

the public’s main contact point with the FMC. The Office receives and processes a variety of 

documents filed by the public, including: complaints initiating adjudicatory proceedings for alleged 

violations of the shipping statutes and other applicable laws; special docket applications and 

applications to correct clerical or administrative errors in service contracts or NSAs; all 

communications, petitions, notices, pleadings, briefs, or other legal instruments in administrative 

proceedings; and subpoenas served on the FMC, its members or employees. 

The Office is responsible for preparing and submitting regular and notation agenda matters for 

consideration by the Commission and preparing and maintaining the minutes of actions taken by the 

Commission on these matters; issuing orders and notices of actions of the Commission; maintaining 

official files and records of all formal proceedings and Commission regulations; issuing publications; 

and authenticating instruments and documents of the Commission. The Office also responds to 

information requests from Commission staff, the maritime industry, press, and the public; administers 

the Freedom of Information, Government in the Sunshine, and Privacy Acts; compiles historical 

Commission decisions; maintains a public reference/law library and a Docket Activity Library; 

manages the Commission’s Internet website; and participates in the development and coordination of 

agency-wide public relations/outreach strategies and initiatives. The Office of the Secretary also 

oversees the Office of Consumer Affairs and Dispute Resolution Services. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Secretary 5.15 5.92 7.00

Cost: Salaries & Benefits $652,498.00 $698,933.60 $830,731.05

Non‐Personnel Expenses $276,680.38 $318,441.66 $318,793.81

Total Cost $929,178.38 $1,017,375.26 $1,149,524.86

Federal Maritime Commission

Formal Proceedings

Office of the Secretary

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$172,428.73 $890,060.68 $87,035.45

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.05 5.42 0.53

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 28 

During fiscal year 2008, the OS continued to administratively process and direct all major filings 

addressed to the Commission and its component offices, including agreements filed under section 5 

of the 1984 Act. The Office also issued 20 orders in docketed proceedings on behalf of the 

Commission. 

The Office serves as the Commission’s public information/press office. Accordingly, it prepares or 

coordinates the preparation of Commission news releases; responds to public and press inquiries or 

directs inquiries to the appropriate Commission bureau/office; and monitors the trade press for 

matters of agency interest for referral to the Chairman, Commissioners and staff. 

The Office remained involved in the Commission’s ongoing effort to expand contact with all 

segments of the maritime community and the public during the fiscal year. Several initiatives were 

undertaken by Commission staff to improve industry outreach, including participating on industry 

discussion panels, hosting industry briefings and updating informational material. During fiscal year 

2008, the Office also initiated and implemented a regular Commission meeting schedule to facilitate 

Commission discussion and action on industry and administrative matters before the Commission. 

During fiscal year 2008, the Office also began developing plans to upgrade and modernize the 

Commission’s hearing room, including communication technology improvements. Communication 

improvements, due for implementation during fiscal years 2009 and 2010, are designed to enhance 

the Commission’s ability to more effectively communicate both internally and externally. Through 

these improvements the Commission will be able to more timely disseminate information on its 

actions and activities, better communicate its mission strategies and objectives, and reach a wider 

audience. Included are plans to digitally archive and broadcast Commission meetings in public 

session over the Internet. 

Also during fiscal year 2008, the Office continued to improve the Commission’s website by adjusting 

how information is presented, increasing the amount of information available, and adding 

functionality. For example, in August 2008, the Office increased the accessibility of information on 

filed agreements through website publishing of weekly agreement filing notices that appear in the 

Federal Register. This enhancement provides greater public awareness of agreement filings. The 

Office continues to evaluate the overall usefulness of the site and works closely with other offices 

and bureaus to improve its content and user-friendliness. Also during this fiscal year, the Office 

began discussing with the OIT alternatives for redesigning the agency’s intranet. The scope of the 

agency’s intranet redesign project has been expanded to encompass OIT’s plans to improve the 

agency’s collaborative capabilities and enhance efficiency in administrative business processes. 

The process of electronically scanning/imaging Commission records also continued during fiscal year 

2008. The document management system that the Office oversees helps support the agency’s 

initiatives for continuity of operations (“COOP”) by improving preservation of and Commission staff 

access to Commission documents, as well as improving Commission staff response time to public 

inquiries and public access to electronic files. In addition to electronically converting all official 

Commission files (both current and historical), the Office has in place a program to systematically 

scan documents from other agency components. For example, during the fiscal year, the Office 

completed conversion of all historical case files for the Bureau of Enforcement and two-thirds of the 

General Counsel’s administrative files. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 29 

In fiscal year 2008, the Office completed a needs assessment and evaluated recommendations for the 

development of an online catalogue for the Commission’s law/reference library collection. In fiscal 

years 2009 and 2010, the Office will implement the adopted plan to replace the current paper 

catalogue. This plan will employ technology to improve workforce productivity by providing an inhouse library access station, as well as online access of the catalogue to all staff on their individual 

desktops. It is also anticipated that the automated library catalogue entries will be directly linked to 

other electronic library resources. This will reduce redundancy and increase administrative 

efficiencies. 

During fiscal year 2008, the Office continued to take the lead in accomplishing the agency’s 

performance goals related to making more Commission information and filed documents available 

electronically and to improving responsiveness to requests for public information. Specifically, the 

Office continued to make key documents filed in formal proceedings available through its website. In 

addition, the Office converted 28 bound volumes of the Commission’s official decisions to electronic 

format. These historical decisions are no longer available to the public in bound volume form. The 

Office is developing plans to post these decisions to the Commission’s website during fiscal year 

2009. 

In fiscal years 2009 and 2010, the Office’s objectives include participation in efforts to upgrade and 

modernize the Commission’s hearing room with, for example, communication technology that will 

digitally archive and facilitate internet broadcast of Commission open meetings. 

Office of Consumer Affairs and Dispute Resolution Services (“CADRS”)

CADRS is responsible for developing and implementing the Commission's Alternative Dispute 

Resolution ("ADR") program. Through this program, the Commission provides services to assist 

parties in resolving disputes and shipping problems in the U.S. ocean shipping commerce. The Office 

provides a broad range of services designed to avoid the expense and delays inherent in litigation, and 

to facilitate the flow of U.S. ocean commerce. With respect to matters already in litigation, or 

moving toward litigation, parties to a dispute are encouraged to avail themselves of mediation or 

other ADR processes such as conciliation, facilitation, fact-finding, mini-trials, or arbitration as 

means to resolve disputes. The Commission makes trained neutrals available to facilitate the 

resolution of shipping disputes at all stages. Outside neutrals also may be hired, as needed. During 

fiscal year 2008, Commission mediators provided mediation services in several matters, thus 

assisting parties in avoiding significant litigation costs and risks. 

CADRS also provides ombudsman services to participants in ocean shipping transactions. Typical 

complaints include situations where an NVOCC or VOCC has placed a lien on cargo in its 

possession, often for sums owed under a different contract of carriage, and cases in which an 

NVOCC has received cargo from its customer and taken payment for the transportation of the cargo, 

but failed to deliver the cargo. Tracking the whereabouts of a shipment can be difficult, and often 

additional charges have accrued, necessitating payment of additional funds to obtain release of the 

shipment. A number of these cases require urgent resolution of problems that are interfering with 

delivery of a shipment. CADRS also receives a significant number of passenger complaints 

involving issues with cruise lines. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 30 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: CADRS 7.49 7.60 7.60

Cost: Salaries & Benefits $962,410.00 $984,074.20 $1,037,022.97

Non‐Personnel Expenses $315,700.96 $317,835.26 $302,410.77

Total Cost $1,278,110.96 $1,301,909.46 $1,339,433.74

Federal Maritime Commission

Formal Proceedings

Consumer Affairs and Dispute Resolution Services

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$0.00 $1,268,937.23 $70,496.51

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 7.20 0.40

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

During fiscal year 2008, 568 complaints were received that necessitated the opening of cases to 

provide dispute resolution services. These included 189 passenger complaints about cruise line 

issues, 198 complaints with respect to household goods shipments, and 181 complaints involving 

other cargo shipment matters. During 2008, the number of cruise complaints declined 14% while the 

number of household good complaints increased by 37.5% and the number of other cargo cases 

increased by approximately 25% over the previous fiscal year. Cargo shipment complaints continued 

to be of increasing complexity. Of note, CADRS received a significantly greater number of 

complaints involving goods released to an improper party and without appropriate documentation 

than in the past, and an increased number of situations where difficulties arose in presenting an 

original bill of lading to receive the shipment. Problems involving co-loaded shipments continue to 

be a significant issue. In addition to the above complaints, approximately 1,000 information requests 

were processed. 

In addition to the cases reported above, the Office was involved in facilitating discussions to address 

container and space shortage, termed the “exporters’ dilemma.” In early 2008, CADRS began 

receiving an increasing number of inquiries concerning difficulties U.S. exporters were having with 

respect to obtaining containers or space for outbound shipments. Essentially, the increasing 

profitability of the Europe-Asia and intra-Asia trades, coupled with slower growth in U.S. demand for 

imports from Asia, resulted in carriers repositioning their vessels away from the U.S. Pacific trades. 

At the same time, the growth of Asian economies, coupled with the reduction in the value of the U.S. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 31 

dollar, lead to a significant increase in demand for U.S. export products. Consequently, many U.S. 

exporters encountered difficulty obtaining space on outbound vessels. These factors, along with 

rising fuel costs, made it difficult to obtain containers. Under the umbrella of the Commission’s 

ADR program, the office facilitated initial discussions among carriers and shippers in an attempt to 

alleviate difficulties for exporters. The problem was overtaken by the worldwide economic downturn 

at the end of the fiscal year causing the demand for U.S. exports to drop sharply and, therefore, the 

demand for export containers. However, direct lines of communication were established between at 

least one major carrier and agricultural exporters that should help alleviate export issues in the future. 

Another function of CADRS includes the adjudication of small claims through informal proceedings 

under 46 Code of Federal Regulations (“CFR”) Part 502, Subpart S. Office personnel serve as 

Settlement Officers in such cases, which involve complaints seeking reparations up to $50,000 for 

violations of the shipping statutes. Those claims generally involve alleged prohibited acts in 

connection with the international transportation of goods, or the failure to establish, observe, and 

enforce just and reasonable regulations and practices. CADRS staff also evaluate and adjudicate 

applications for permission to apply other than tariff rates, and to waive or refund freight charges 

arising from various errors in tariff publications, an inadvertent failure to publish an intended rate, or 

a misquotation of a rate. One application was received in fiscal year 2008. 

In fiscal years 2009 and 2010, CADRS intends to further expand awareness of the ADR program 

through education, training and other outreach efforts. Further efforts will be made to increase 

shipping industry awareness of less adversarial, more cost-effective means of resolving disputes in a 

manner that enables the parties to control the outcome. Use of mediation, in particular, will be 

promoted to assist in resolving formal proceedings and other significant disputes. CADRS will 

continue to make consumer protection information available and will expand its outreach through 

various websites and media sources. The real value of these efforts will be the number of consumers 

that are forewarned and thereby avoid problems. Through this means, assistance may be provided to 

many more consumers than could be possible through post-shipment problem resolution. 

Also, during fiscal year 2009, CADRS plans to establish dialogue between carriers and shippers to 

address industry-wide issues, such as space and equipment shortages for exports. Additional forums 

or conferences will be planned. 

Library

The OS also administers the Commission’s Library. The Library serves the Commission's research 

and information needs and is a specialized repository of current and basic materials primarily 

covering the shipping industry, the history of shipping, and regulations covering all phases of 

shipping in the U.S. foreign trade. It contains a variety of books, directories, encyclopedias, journals, 

magazines, reports, microforms, and videos. The Library also contains material on several related 

fields such as engineering, economics, political science, and a collection of legal publications. The 

Library collection includes law encyclopedias, engineering textbooks, legal treatises, legislative 

materials, and selected titles of the National Reporter system. The Library’s holdings consist of 

approximately 8,700 volumes and numerous microfiches, CD-ROMs, and on-line services. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 32 

 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Library 1.20 1.00 1.00

Cost: Salaries & Benefits $99,194.00 $102,063.52 $106,461.77

Non‐Personnel Expenses $105,982.97 $326,821.69 $275,153.13

Total Cost $205,176.97 $428,885.21 $381,614.90

$45,793.79 $328,188.81 $7,632.30

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.12 0.86 0.02

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

Formal Proceedings

Library

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 33 

Office of the General Counsel (“OGC”)

The OGC provides legal counsel to the Commission. This includes reviewing staff recommendations 

for Commission action for legal sufficiency, drafting proposed rules to implement Commission 

policies, and preparing final decisions, orders, and regulations for Commission review. In addition, 

the OGC provides written and oral legal opinions to the Commission, its staff, and the general public, 

in appropriate cases. As described in more detail below, the OGC also represents the Commission 

before the courts and Congress and administers the Commission’s international affairs program. 

Decisions 

The following are adjudications representative of matters prepared by the OGC: 

Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority, [Docket No. 02-08];

International Shipping Agency, Inc. v. The Puerto Rico Ports Authority, [Docket No. 04-01]; and 

San Antonio Maritime Corp. and Antilles Cement Corp. v. Puerto Rico Ports Authority, [Docket 

No. 04-06], 30 S.R.R. 1339 (March 5, 2007) 

These cases came before the Commission for a determination of whether PRPA is an arm of the 

Commonwealth of Puerto Rico and, therefore, entitled to sovereign immunity. Odyssea Stevedoring 

of Puerto Rico, Inc., International Shipping Agency, Inc. (“Intership”), San Antonio Maritime Corp. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: General Counsel 8.21 10.00 9.60

Cost: Salaries & Benefits $1,080,440.00 $1,453,653.68 $1,453,165.57

Non‐Personnel Expenses $353,837.82 $453,199.49 $411,786.32

Total Cost $1,434,277.82 $1,906,853.17 $1,864,951.89

Federal Maritime Commission

Formal Proceedings

Office of the General Counsel

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$511,521.34 $973,796.28 $379,634.27

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.63 5.02 1.95

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 34 

These cases came before the Commission for a determination of whether PRPA is an arm of the 

Commonwealth of Puerto Rico and, therefore, entitled to sovereign immunity. Odyssea Stevedoring 

of Puerto Rico, Inc., International Shipping Agency, Inc. (“Intership”), San Antonio Maritime Corp. 

and Antilles Cement Corp. alleged that PRPA’s marine terminal leasing practices violated sections 

10(b)(10), 10(d)(1), 10(d)(3), and 10(d)(4) of the Shipping Act. Further, Intership alleged PRPA 

violated section 10(a) (3) of the Shipping Act by failing to act in accordance with the terms of an 

agreement filed with the Commission. PRPA filed motions for summary judgment or motions to 

dismiss in all three cases, arguing that the complaints were barred by PRPA’s sovereign immunity as 

an arm of the Commonwealth of Puerto Rico. In Odyssea and Intership, the ALJ ruled that PRPA 

was not entitled to sovereign immunity. The Commission, sua sponte, decided to review the ALJ’s 

decision. On November 30, 2006, the Commission issued an order, on a 3-2 vote, finding that PRPA 

is not an arm of the Commonwealth of Puerto Rico and is, therefore, not entitled to sovereign 

immunity. 

The Commission’s order was appealed to the U.S. Court of Appeals for the D.C. Circuit (Case No. 

06-1407). The Court heard oral argument on October 26, 2007. On July 8, 2008, the Court issued its 

opinion finding that PRPA is an arm of the Commonwealth of Puerto Rico and is, therefore, immune 

from suit absent its consent. Intership filed a motion on August 25, 2008, to stay the Court’s 

mandate pending filing of a petition for writ of certiorari. The Court granted Intership’s motion on 

September 16, 2008. A petition for a writ of certiorari at the United States Supreme Court was filed 

by Intership on October 8, 2008. The Supreme Court denied Intership’s writ on February 23, 2009. 

Premier Automotive Services, Inc. v. Robert L. Flanagan and F. Brooks Royster, III, [Docket No. 

06-03], 30 S.R.R. 970 (March 31, 2006) 

Premier Automotive Services, Inc. (“Premier”) filed a complaint against Robert L. Flanagan and F. 

Brooks Royster, III (collectively “Flanagan”) alleging that Flanagan’s marine terminal leasing 

practices violated sections 10(b)(10), 10(d)(1) and 10(d)(4) of the Shipping Act, 46 U.S.C. §§ 41102, 

41104 and 41106. Mr. Flanagan and Mr. Royster were the Maryland Secretary of Transportation and 

the Executive Director of the Maryland Port Administration (“MPA”), respectively, and were sued 

because MPA possesses sovereign immunity. Flanagan filed a Motion to Dismiss arguing that (1) the 

case is barred by constitutional principles of state sovereign immunity; (2) the Shipping Act does not 

authorize private complaints for injunctive relief; and (3) the respondents should not be held liable as 

individuals under provisions of the Shipping Act which are specifically applicable to common 

carriers, OTIs and MTOs. Premier responded to the motion arguing that the action is within the Ex 

parte Young, 209 U.S. 123 (1908), exception to state sovereign immunity and that the Shipping Act 

provides for prospective injunctive relief. The ALJ granted the motion to dismiss on March 31, 2006, 

finding that the complaint was barred by sovereign immunity since Young did not apply. Premier 

appealed the ALJ’s decision to the Commission and oral argument was heard on June 13, 2007. The 

Commission dismissed the proceeding on June 11, 2008, finding that this proceeding is barred by the 

sovereign immunity interests of the State of Maryland. 

Litigation

The OGC represents the Commission in litigation before courts and other administrative agencies. 

Although the litigation work largely consists of representing the Commission upon petitions for 

review of its orders filed with the U.S. Courts of Appeals, the OGC also participates in actions for 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 35 

injunctions, enforcement of Commission orders, actions to collect civil penalties, and other cases 

where the Commission’s interest may be affected by litigation. 

The following is representative of matters litigated by the OGC: 

Puerto Rico Ports Authority v. The Federal Maritime Commission and the United States of 

America, D.C. Circuit, Case No. 06-1407 

This proceeding is an appeal of the Commission’s November 30, 2006, order in Docket No. 02-08 

(Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority); Docket No. 04-01 

(International Shipping Agency, Inc. v. The Puerto Rico Ports Authority); and Docket No. 04-06 (San 

Antonio Maritime Corp. and Antilles Cement Corp. v. Puerto Rico Ports Authority). The 

Commission, on a 3-2 vote, found that the PRPA is not an arm of the Commonwealth of Puerto Rico 

and is, therefore, not entitled to sovereign immunity. PRPA appealed the order, arguing that it is 

entitled to sovereign immunity. The Commission proceedings had been stayed by the Court pending 

resolution of the appeal. The Commission’s brief was submitted on June 28, 2007, and oral argument 

was heard on October 26, 2007. On July 8, 2008, the U.S. Court of Appeals for the D.C. Circuit 

issued its opinion finding that the PRPA is an arm of the Commonwealth of Puerto Rico and is, 

therefore, immune from suit absent its consent. Intership filed a motion on August 25, 2008, to stay 

the Court’s mandate pending filing of a petition for writ of certiorari. The Court granted Intership’s 

motion on September 16, 2008. A petition for a writ of certiorari at the United States Supreme Court 

was filed by Intership on October 8, 2008. The Supreme Court denied Intership’s writ on February 

23, 2009. 

Landstar Express America, Inc. and Landstar Global Logistics, Inc. v. Federal Maritime 

Commission, D.C. Circuit, Case No. 08-1152

This proceeding is an appeal of the Commission’s February 15, 2008 order in Commission Docket 

No. 06-08, In the Matter of the Lawfulness of Unlicensed Persons Acting as Agents for Licensed 

Ocean Transportation Intermediaries – Petition for Declaratory Order. The Commission denied the 

petition filed by Team Ocean Services, Inc., following review of the petition and three comments 

submitted thereon, including the comments of Landstar America, Inc. and Landstar Global Logistics, 

Inc. On April 14, 2008, Landstar filed a Petition to Review the Commission’s Order, asserting in its 

Petition that it is a party aggrieved by the Commission’s denial of Team Ocean’s Petition. Petitioners 

submitted a single issue to be raised to the Court: 

Whether the FMC Order’s determination that it is unlawful under The Shipping Act of 1984, 

as amended, for an unlicensed agent to provide Non-Vessel Operating Common Carrier 

(“NVOCC”) services in the name of and on behalf of a licensed NVOCC is arbitrary, 

capricious, contrary to the FMC’s statutory authority, jurisdiction and existing precedent, 

inconsistent with the plain language of the applicable statute, an abuse of discretion, 

unsupported by substantial evidence, or otherwise contrary to law. 

Pursuant to the schedule ordered by the Court, Landstar filed its opening brief December 4, 2008 and 

the Commission filed its brief on January 12, 2009, with Landstar filing its reply brief January 26. 

Oral argument was held on April 21, 2009. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 36 

Federal Maritime Commission v. City of Los Angeles, California, Harbor Department of the City 

of Los Angeles, Board of Harbor Commissioners of the City of Los Angeles, City of Long Beach, 

California, Harbor Department of the City of Long Beach, and the Board of Harbor 

Commissioners of the City of Long Beach, U. S. District Court for the District of Columbia, Case 

No. 08-1895. 

On October 31, 2008, the Commission filed a complaint seeking a permanent injunction pursuant to 

section 6(g) of the Shipping Act against certain aspects of the Ports of Los Angeles and Long Beach 

Clean Truck Plan (“CTP”) and harmonized concession agreements. The CTP and concession 

agreements are designed to require new, less-polluting trucks to serve the Ports. However, following 

a competitive impact assessment, the Commission determined that certain elements of the program 

would likely, by a reduction in competition, produce an unreasonable reduction in transportation 

service or an unreasonable increase in transportation costs. In a ruling April 15, 2009, Judge Richard 

Leon denied the Commission’s request for a preliminary injunction. Nevertheless, the core elements 

of our case under section 6(g) have been preserved for a determination on the merits. The 

Commission is currently examining its prospects as to appeal and in pursuing a permanent injunction.

National Resources Defense Council, Inc., Sierra Club, Inc. and Coalition for Clean Air, Inc. v. 

Federal Maritime Commission, U.S. District Court for the Central District of California, Case 

No. 08-07436 

On November 10, 2008, the Complainants filed a complaint asserting that the Commission cannot 

take action that would impact the implementation of the Ports of LA and Long Beach Clean Trucks 

Program without first complying with the National Environmental Policy Act of 1969 (“NEPA”) and 

other environmental regulations. Attorneys from the Department of Justice and U.S. Attorney’s 

Office for the Central District of California are defending the Commission. 

Legislative Activities 

The OGC represents the Commission’s interests in all matters before Congress. This includes 

preparing testimony for Commission officials, responding to Congressional requests for information, 

commenting on proposed legislation, and responding to OMB requests for views on proposed bills 

and testimony. 

During fiscal year 2008, 80 bills, proposals and Congressional inquiries were referred to the OGC for 

review or comment. The Office prepared and coordinated testimony, responses to Questions for the 

Record and a 60-day written report in relation to the agency’s fiscal year 2009 budget authorization 

hearing before the U.S. House of Representatives Committee on Transportation and Infrastructure, 

Subcommittee on Coast Guard and Maritime Transportation. In addition, the Office assisted in the 

written testimony and responses to Questions for the Record for the agency’s fiscal year 2009 budget 

requests submitted to the U.S. House of Representatives Committee on Appropriations, 

Subcommittee on Transportation, Housing and Urban Development (“HUD”), and Related 

Agencies. The office also prepared and coordinated testimony, responses to Questions for the Record 

and a 90-day written report in relation to the U.S. House of Representatives Committee on 

Transportation and Infrastructure, Subcommittee on Coast Guard and Maritime Transportation’s 

oversight hearing regarding Federal Maritime Commission management and regulation of 

international shipping. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 37 

In fiscal years 2009 and 2010, the OGC will continue to take the lead in providing assistance and 

technical advice to Congress regarding issues for possible legislative consideration. The Office may 

also recommend legislative amendments as necessary to ensure uniformity with other Federal 

initiatives and to allow for the efficient and secure flow of ocean transportation. 

 

Other Significant Activity

The Port of Los Angeles and Port of Long Beach Proposed Clean Trucks Program, and FMC 

Agreement No. 201170, Los Angeles and Long Beach Port Infrastructure and Environmental 

Programs Cooperative Working Agreement and FMC Agreement No. 201178, Los Angeles/Long 

Beach Port/Terminal Operator Administration and Implementation Agreement, Docket No. 05-08 

The Ports are members of the Los Angeles and Long Beach Port Infrastructure and Environmental 

Programs Cooperative Working Agreement (FMC Agreement No. 201170), currently on file with the 

Commission, that permits them to discuss, consult, and agree on the establishment and 

implementation of programs and strategies to improve port-related transportation infrastructure and to 

decrease port-related air pollution. This agreement became effective on August 10, 2006. The Ports’ 

goal is to significantly reduce air pollution from port drayage trucks by replacing or retrofitting an 

estimated 16,000 trucks servicing the Ports over a five-year period. 

On September 24, 2008, the Commission initiated FMC Docket No. 08-05, an investigation to 

determine whether certain practices of the Ports violate the Shipping Act. Practices under 

investigation include: the mandate, on a phased-in basis, that Licensed Motor Carriers (“LMCs”) that 

serve the Port of Los Angeles utilize only employee drivers and not independent owners and 

operators; the ban on independent owner-operators providing drayage service at the Port of LA; port 

payments to certain motor carriers as an incentive to provide drayage service at the Port, but not to 

other similarly situated motor carriers; exemption of some cargo owners from paying a Clean Truck 

Fee but not others, despite the fact that their cargo is moved in compliant trucks; the requirement that 

motor carriers provide container drayage service at the Port to submit an application for a concession, 

but not publishing standards or criteria by which such applications will be granted or denied; and, 

refusal to deal or negotiate with motor carriers otherwise authorized to provide drayage service at the 

Port who conduct their Port operations using independent owner-operators. This proceeding is 

distinct from the Commission’s section 6(g) injunction proceeding in the U.S. District Court for the 

District of Columbia discussed above (i.e., Case No. 08-1895). 

Foreign Shipping Restrictions and International Affairs 

The OGC is responsible for the administration of the Commission's international affairs program. The 

OGC monitors potentially restrictive foreign shipping laws and practices, and makes 

recommendations to the Commission for investigating and addressing such practices. The 

Commission has the authority to address restrictive foreign shipping practices under section 19 of the 

1920 Act and the FSPA. Section 19 empowers the Commission to make rules and regulations 

governing shipping in the foreign trade to adjust or meet conditions unfavorable to shipping. The 

FSPA directs the Commission to address adverse conditions that affect U.S. carriers in foreign trade 

and that do not exist for foreign carriers in the U.S. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 38 

In fiscal year 2008, the Commission continued to monitor potentially restrictive shipping practices of 

the Government of Japan, including the effects of amendments to the Port Transportation Business 

Law enacted in 2000 and 2005. The Commission continued to receive and evaluate semi-annual 

reports from U.S.-flag and Japan-flag vessels operating in the trades with Japan pursuant to its 

proceeding in Docket No. 96-20, Port Restrictions and Requirements in the United States/Japan 

Trade. The OGC also pursued informally several matters that involved potentially restrictive foreign 

practices including new legislation, new interpretations of existing legislation and new regulations of 

non-domestic carriers’ terminal handling charges. 

OGC staff served as technical advisors to the U.S. delegation to the semi-annual U.S.-Japan 

Regulatory Reform talks held in Washington, D.C. in April, 2008. OGC acted as technical advisor 

and presented views on the possible effects of the European Union’s elimination (in October 2008) of 

the block exemption of liner conferences. OGC also served as advisor to the United States’ 

delegation at the Asian-Pacific Economic Cooperation (“APEC”) conference in Lima, Peru in August 

2008, including review of a report conducted on APEC’s behalf relating to the impacts of nonratemaking agreements among vessel-operating common carriers. 

Another responsibility of the OGC is the identification and verification of controlled carriers subject 

to section 9 of the Shipping Act. Common carriers that are owned or controlled by foreign 

governments are required to adhere to certain requirements under the Shipping Act, and their rates 

are subject to Commission review. The OGC investigates and makes appropriate recommendations to 

the Commission regarding the status of potential controlled carriers. The OGC, in conjunction with 

other Commission components, also monitors the activities of controlled carriers. 

The OGC continues to take the lead in accomplishing the agency's performance goals relating to 

eliminating restrictions that unjustly disadvantage U.S. interests. Through the Permanent Task Force 

on International Affairs, OGC will monitor foreign laws and practices to determine whether there are 

any unjust non-market barriers to trade. The OGC will recommend appropriate action to the 

Commission. 

Designated Agency Ethics Official

The Designated Agency Ethics Official is administratively within the Office of the Chairman, but the 

position’s functions are performed presently as a collateral duty by an attorney in the OGC. 

The Commission's Ethics Official is responsible for administering public and confidential financial 

disclosure systems in order to prevent conflicts of interest from arising in the execution of the 

agency's regulatory functions. The Ethics Official conducts annual ethics training and provides dayto-day advice and guidance to ensure compliance with the standards of ethical conduct that apply to 

Executive Branch officials. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 39 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Ethics 0.00 0.00 0.00

Cost: Salaries & Benefits $0.00 $0.00 $0.00

Non‐Personnel Expenses $1,015.95 $3,932.82 $3,723.54

Total Cost $1,015.95 $3,932.82 $3,723.54

Federal Maritime Commission

$1,241.18 $1,241.18 $1,241.18

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 0.00 0.00

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Formal Proceedings

Ethics

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 40 

Office of Administrative Law Judges (“OALJ”)

Administrative Law Judges regulate the course of proceedings, conduct hearings, approve 

settlements, and render decisions in adjudicatory proceedings held after receipt of a private complaint 

or when instituted by the Commission. ALJs have authority to administer oaths and affirmations; 

issue subpoenas; rule upon motions and offers of proof; receive evidence; authorize depositions; 

regulate the course of hearings; hold pre-hearing conferences for the settlement or simplification of 

the issues involved; refer matters to mediation when appropriate; dispose of procedural requests; act 

as settlement judges in particular cases; and take any other action authorized by agency rule or the 

Administrative Procedure Act. 

The case load of the Office is governed by the number of complaints and applications filed, the 

number of formal proceedings instituted by the Commission on its own motion, and other matters 

assigned in furtherance of the Commission's regulatory functions. Proceedings which come before 

the Office include, but are not limited to, the adjudication of discriminatory or unfair and 

unreasonable practices between various parties subject to the Shipping Acts, and adjudication of 

shipper complaints. ALJs also can process special docket applications on an as-needed basis. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Administrative Law Judges 2.00 2.25 3.00

Cost: Salaries & Benefits $271,356.00 $310,326.69 $429,847.72

Non‐Personnel Expenses $96,618.77 $173,444.46 $126,011.19

Total Cost $367,974.77 $483,771.15 $555,858.91

Federal Maritime Commission

Formal Proceedings

Office of Administrative Law Judges

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$79,376.65 $317,728.96 $158,753.30

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.43 1.71 0.86

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 41 

At the beginning of fiscal year 2008, 18 formal proceedings were pending before the OALJ. During 

the year, five formal proceedings were added. The Office dismissed three respondents in two formal 

proceedings and two formal proceedings were settled. The Office also dismissed one case that the 

Commission reinstated on appeal. The ALJs entered an Initial Decision in one case that the 

Commission approved and entered a Partial Summary Judgment in one other case.

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 42 

Equal Employment Opportunity Program

In fiscal year 2008, the Office of EEO (“EEO”) provided support and assistance to managers and 

supervisors in maintaining and effectively managing a diverse workforce. Counseling was provided 

to employees and managers, and refresher training courses for the “No FEAR Act” and Sexual 

Harassment Prevention were coordinated to keep the Commission staff informed. The Office was 

successful in providing interesting commemorative programs including a documentary on American 

Indians, video clips promoting diversity awareness, and a Volunteer Poetry Slam in honor of Black 

History Month, as well as retaining its presence within the Federal Women's Program Interagency 

Council (“FWPIC”). 

Also, during fiscal year 2008, EEO counseled employees and managers, and assisted managers and 

supervisors in maintaining a diverse workforce. Refresher training courses were provided to all FMC 

employees and Commissioners, commemorative programs were held to further raise diversity 

awareness. 

During fiscal years 2009 and 2010, EEO will continue to provide support and assistance to managers 

and supervisors in maintaining and effectively managing a diverse workforce. Diversity training will 

be provided for all staff, EEO commemorative programs will be used to further raise diversity 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Headquarters 0.15 0.75 1.00

Cost: Salaries & Benefits $59,534.00 $116,890.72 $165,685.43

Non‐Personnel Expenses $104,280.15 $65,022.31 $72,850.97

Total Cost $163,814.15 $181,913.03 $238,536.40

0.29

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

Equal Employment Opportunity Program

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$34,063.00 $136,347.40 $68,126.00

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.14 0.57
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 43 

awareness to the entire Commission. The Office is committed to maintaining its strong presence in its 

current programs including the FWPIC, while working to evaluate other programs such as the 

Emerging Leaders Program, and exploring the possibility of bringing new programs to the 

Commission. 

The Office will continue, and strive to improve, all of its counseling and education programs, while 

exploring new opportunities for training, diversity programs, and new outlets to increase EEO 

awareness at the Commission. 

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 44 

Inspector General Program

The Office of Inspector General (“OIG”) operates pursuant to the Inspector General Act of 1978 

(“1978 Act”) (5 U.S.C. App. 3) as amended in 1988. The 1988 amendments created additional 

statutory offices of inspector general at various designated Federal entities, including the FMC. 

The purpose of the 1978 Act, as amended, and as applicable to the FMC, is to create an independent 

and objective unit to conduct audits; review operations and programs; investigate possible fraud, 

waste, and mismanagement of Commission resources; and promote economy, efficiency and 

effectiveness in programs and operations administered by the FMC. 

The OIG is staffed by an Inspector General (“IG”), an Assistant Inspector General for audit, and an 

administrative assistant. 

The IG works independently under the general supervision of the Chairman. The IG does not report 

to, and is not subject to supervision by, any other officer or employee of the FMC. The OIG has 

MOUs with Inspector General Offices at the Social Security Administration for criminal investigative 

assistance and the Federal Trade Commission for legal counsel and audit quality assurance support. 

In addition, the Office utilizes the expertise of private sector accountants and information security 

analysts to assist it in performing specialized audits and reviews. 

During fiscal year 2008, the Office issued an audit of the agency’s fiscal year 2007 financial 

statements and a companion report to management containing financial-related findings and 

recommendations resulting from the audit. The OIG also issued reports to management on agency 

compliance with Federal Information Security Management Act of 2002 (“FISMA”), based, in part, 

on its review of FMC’s three major IT systems/applications, a vulnerability scan of the agency’s 

wireless network and an assessment of the agency’s maintenance and protection of personally 

identifiable information (“PII”). 

In fiscal year 2008, the OIG reviewed processes used by the agency to establish user fees for agency 

activities that convey special benefits to recipients beyond those accruing to the general public, 

assessed controls in place to monitor Congressional limitations on redecorating the offices of 

Presidential appointees, and performed an evaluation of how well the agency manages telephone 

services. The latter audit identified $24,000 of potential cost savings through implementation of OIG 

recommendations. Additionally, the OIG audited the agency’s budget execution practices for the 

fiscal year 2007 budget and assessed how well the agency manages its personal digital assistant 

(“PDA”) program. 

The OIG did not open any formal investigations into allegations of wrongdoing by FMC staff and/or 

individuals doing business with the agency. However, it forwarded several “hotline” complaints to 

FMC bureaus/offices, maritime and/or law enforcement agencies for disposition. 

The OIG also worked with the agency’s webmaster to enhance the utility of the OIG’s webpage and to 

comply with legislative requirements, began work on revising the Office’s investigative manual, 

responded to a request from the Chairman, House Committee on Oversight and Reform for 

information on recommendations made by the OIG dating back to 2001, and met with staff from the 

Senate Committee on Commerce, Science and Transportation, Subcommittee on Surface 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 45 

Transportation and Merchant Marine to discuss agency operations and administration. The Office also 

prepared a narrative summary of management challenges facing the FMC for inclusion in the Fiscal 

Year 2007 PAR. The OIG contracted with an independent public accounting firm to assist the IG in 

issuing an opinion on the agency’s fiscal year 2007 financial statements. Finally, the OIG issued two 

semiannual reports to Congress discussing the Office’s audit and investigative activity for the fiscal 

year. 

During fiscal years 2009 and 2010, the OIG will continue to place high priority on audits and reviews 

with the objective of improving agency programs and operations. The OIG will complete statutorilyrequired reviews to include an audit of the agency’s annual financial statements and an evaluation of 

the agency’s information security program and privacy assurance controls as required by FISMA. 

We will visit FMC AR offices to assess operations and begin to focus on audits and reviews of 

agency mission-based programs. 

The OIG will continue to actively participate in IG community activities and maintain membership in 

the Executive Council of Inspectors General on Integrity and Efficiency (“ECIE”) and the Federal 

Audit Executive Council (“FAEC”). The OIG will continue to work with the OMB, ECIE and FAEC 

on joint projects which affect the IG community. The Office will also continue to keep the FMC 

Chairman, Commissioners, OMB and the Congress fully informed regarding its audit and 

investigative activities. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Inspector General 2.45 2.60 2.60

Cost: Salaries & Benefits $328,474.00 $349,756.80 $364,737.81

Non‐Personnel Expenses $247,061.80 $222,357.12 $219,041.51

Total Cost $575,535.80 $572,113.92 $583,779.32

Federal Maritime Commission

Inspector General Program

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$0.00 $0.00 $583,779.32

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 0.00 2.60

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 46 

Operations Program 

Office of the Director

The Director of Operations is responsible to the Chairman for the management and coordination of 

the: 

Bureau of Trade Analysis; 

Bureau of Certification and Licensing; 

Bureau of Enforcement; and 

Area Representatives. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 4.32 3.62 4.00

Area Representatives 8.00 8.08 8.00

Bureau of Trade Analysis 18.38 19.40 19.90

Bureau of Certification and Licensing 17.45 17.70 18.90

Bureau of Enforcement 9.69 12.00 11.90

Total FTEs 57.84 60.80 62.70

Cost: Salaries & Benefits $6,980,764.38 $7,665,710.00 $8,161,260.33

Non‐Personnel Expenses $2,752,768.16 $2,912,374.93 $2,744,590.94

Total Cost $9,733,532.54 $10,578,084.93 $10,905,851.27

$2,609,449.26 $7,189,312.74 $1,107,089.27

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

Operations

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

14.90 42.21 5.59
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 47 

The Office of Operations (“OPs”) oversees the development and operation of various Commission 

programs and recommends new programs and necessary changes in staff objectives. The Director of 

Operations has been designated as the agency’s Performance Improvement Officer (“PIO”). Subject 

to the direction of the Chairman, the PIO supervises the Commission’s performance management 

activities, including development of the goals, plans and performance reports. 

In the PIO capacity, in fiscal year 2008, OPs led the development and draft of the agency Strategic 

Plan for Fiscal Years 2010-2015. The new strategic plan revises the agency’s mission statement and 

strategic goals. The plan reflects a more streamlined and mission-focused description of the agency, 

its functions, and direction to achieve these goals. It highlights the Commission’s primary program 

activities and sets performance goals designed to measure the impact of those activities on the 

shipping public. The Office of Management and Budget reviewed the plan, and after opportunity for 

public comment, the plan was submitted to Congress in December 2008. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 4.32 3.62 4.00

Area Representatives 8.00 8.08 8.00

Total FTEs 12.32 11.70 12.00

Cost: Salaries & Benefits $1,696,244.00 $1,708,995.16 $1,810,307.98

Non‐Personnel Expenses $795,392.80 $865,280.34 $825,395.10

Total Cost $2,491,636.80 $2,574,275.50 $2,635,703.08

Federal Maritime Commission

Operations

Office of the Director (Including Area Representatives)

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$447,412.47 $2,009,288.93 $179,001.68

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.92 9.35 0.73

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 48 

In fiscal year 2008, OPs led the operational bureaus through oversight and guidance towards the 

accomplishment of many programmatic achievements. In particular, the Office worked with the 

bureaus and other agency offices to review and report to the Commission on emerging industry 

changes in all sectors. This fiscal year saw a rise in the number of OTI licenses sought and granted as 

well as a significant increase in the number of MTO agreements filed. In fiscal year 2008, the 

Commission considered some notable agreements including the Los Angeles/Long Beach/Terminal 

Operator Administration and Implementation Agreement, and the Los Angeles and Long Beach Port 

Infrastructure and Environmental Programs Cooperative Working Agreement. The Office 

coordinated and assisted in the bureaus’ recommendations and consideration of these high-profile 

agreements. 

The Commission’s ARs act as liaisons with the shipping industry at a local level and as a resource to 

all bureaus and offices in the Commission. The Commission maintains a presence in Los Angeles, 

South Florida, New Orleans, New York, Houston and Seattle, through ARs based in each of those 

cities. These ARs serve other major port cities and transportation centers within their respective 

areas. In addition to monitoring and investigative functions, ARs represent the Commission within 

their jurisdictions, provide liaison between the Commission and the maritime industry and the 

shipping public, collect and analyze information of regulatory significance, and assess industry 

conditions. Liaison activities involve cooperation and coordination with other governmental agencies 

and departments, providing regulatory information and relaying Commission policy to the shipping 

industry and the public, and handling informal complaints within each representative's area of 

responsibility. ARs also work on Commission outreach through seminars, participation at various 

conferences and trade shows, presentations, and local community contacts. 

In fiscal year 2008, hundreds of informal complaints were handled by the ARs. These complaints 

often involved unlawful activity that could not be resolved and compliance achieved informally. In 

other cases as required, investigations were opened by the Office of Operations. If a potential 

violation remains unresolved, a proceeding will be referred to the Bureau of Enforcement for further 

action as described later in this report. 

The ARs were instrumental in the development and distribution of public service announcements 

issued by the Office of Operations for each major port area in fiscal year 2008, warning against the 

use of unlicensed OTIs. The ARs led this effort through selection of appropriate local publications. 

These warnings led to numerous inquiries and reports to ARs regarding licensed and unlicensed OTI 

activity and an apparent decrease in complaints about the activities of unlicensed entities in 

communities in which they were published. 

In fiscal year 2008, ARs made presentations with the assistance of BCL on OTI licensing 

requirements and compliance for recently licensed companies, current applicants and persons 

interested in becoming licensed, to audiences in Florida and Hawaii. ARs also briefed or addressed 

key officials of the New York and New Jersey Port Authority, the New Jersey State Police, the 

Houston Air Cargo Association, the Houston Maritime Area Safety and Security Team, the Houston 

Maritime Awareness Security Terrorism Training Conference, the Memphis Multi-Modal Conference 

and U.S. Customs and Border Patrol. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 49 

Area Representatives participated in task forces and initiatives sponsored by local law enforcement 

agencies, the U.S. Department of Justice, the Department of Homeland Security, Customs and Border 

Patrol or Immigration and Customs Enforcement, and the Department of Commerce. This 

participation facilitates sharing of information on illegal activities primarily involving export. 

During fiscal year 2008, the Office continued to lead BOE and BCL in review and coordination of 

compliance and enforcement policy. The Office worked with other Commission offices toward the 

integration and modernization of agency databases and the automation of key agency forms to 

facilitate ease of access and efficiency of agency processes. 

The Office’s key objectives for fiscal years 2009 and 2010 include enhancing agency programs and 

operations. In particular, OPs will build upon the agency’s outreach efforts and raise public 

awareness of agency regulations and services. Through the ARs, OPs will use investigative, liaison 

and outreach functions to continue to increase protection of the shipping public from unlawful 

practices in the marketplace. OPs will review agency policies and regulations and focus on 

automating certain processes for the convenience of the public. OPs will continue to refine the 

Commission’s strategic and annual performance planning and reporting process, working to focus 

performance goals and measures. Finally, OPs will continue to refine cooperation and integration of 

the three agency bureaus. 

Bureau of Trade Analysis (“BTA”)

The BTA plans, develops, and administers the following activities: (1) monitoring general trade 

conditions and economic developments in liner shipping; (2) overseeing individual and concerted 

carrier and MTO activity; (3) developing economic studies and analyses in support of the 

Commission's regulatory responsibilities; (4) processing and analyzing carrier and marine terminal 

agreements; (5) providing expert economic testimony and support in formal proceedings, particularly 

regarding unfair foreign shipping practices; (6) processing, reviewing, and monitoring confidential 

service contracts and amendments filed by ocean common carriers, conferences, and agreements and 

NSAs filed by NVOCCs; (7) reviewing requests to correct clerical or administrative errors in service 

contracts; (8) ensuring that statements of certain essential terms associated with service contracts are 

published in tariffs and made available to the public; (9) auditing tariff publishing systems to ensure 

that tariffs are accessible and accurate; (10) processing FMC-1 registration forms submitted by 

carriers and conferences and posting and updating the location of carrier tariffs on the Commission’s 

website; (11) acting on special permission applications to deviate from tariff publishing rules; (12) 

monitoring the activities of state-controlled carriers; and (13) supporting other Commission 

components with regard to the Commission’s regulatory requirements.
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 50 

The three operating offices under the supervision of the Bureau Director are: the Office of Service 

Contracts and Tariffs, the Office of Economics and Competition Analysis, and the Office of 

Agreements. The Office of Service Contracts and Tariffs is responsible for processing, reviewing, 

and monitoring confidential service contracts and NSAs and ensuring that the statements of certain 

essential terms associated with service contracts and NSAs are published and made available to the 

public. Further, the Office ensures that carrier tariffs are accessible and accurate; that the location of 

carrier tariffs as submitted in FMC-1 registration forms is correct; and that those locations are 

published on the Commission’s website and updated on a periodic basis. 

The Office of Economics and Competition Analysis develops and administers programs overseeing 

individual and concerted carrier activities, carriers' dealings with shippers and intermediaries, 

activities of state-controlled carriers in U.S. foreign commerce, foreign shipping practices, and 

overall U.S. liner trade conditions. The Office of Agreements is responsible for processing and 

analyzing carrier and marine terminal agreements filed with the Commission and maintaining various 

agreement databases. 

Office of Service Contracts and Tariffs

The Shipping Act allows ocean common carriers, either individually or through agreements, to 

negotiate and execute service contracts with one or more shippers or shippers’ associations. Under 

service contracts, shippers make a commitment to provide a certain volume or portion of cargo over a 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 4.42 4.00 3.90

Cost: Salaries & Benefits $685,089.92 $584,630.80 $578,011.52

Non‐Personnel Expenses $791,951.20 $852,648.97 $824,811.78

Total Cost $1,477,041.12 $1,437,279.77 $1,402,823.30

Bureau of Trade Analysis

Office of the Director

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$736,482.23 $420,846.99 $245,494.08

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.05 1.17 0.68

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 51 

fixed period of time, and carriers commit to a specified rate and a defined service level. These 

contracts are filed confidentially with the Commission. 

Contract flexibility enables carriers to tailor their transportation services to the specific commercial 

and operational needs of shippers. Overall, service contracts continue to be the predominant pricing 

mechanism due primarily to their efficiency, flexibility, and confidentiality. 

 

On December 4, 2008, the Commission’s automated SERVCON system received the two millionth 

service contract filing. During fiscal year 2008, the Bureau received 44,438 service contracts and 

294,880 contract amendments. There were 64 new service contract filing registrations in fiscal year 

2008. 

In fiscal years 2009 and 2010, the Bureau will continue to assess and evaluate the efficiency of the 

SERVCON system. 

 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: OSCT 5.02 5.40 6.00

Cost: Salaries & Benefits $482,127.50 $557,933.61 $658,055.59

Non‐Personnel Expenses $3,654.24 $0.00 $0.00

Total Cost $485,781.74 $557,933.61 $658,055.59

Federal Maritime Commission

$307,092.61 $252,254.64 $98,708.34

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.80 2.30 0.90

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Bureau of Trade Analysis

Office of Service Contracts & Tariffs ("OSCT")

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 52 

NVOCC Service Arrangement Program Activities

In January 2005, the Commission permitted NVOCCs to enter into NSAs with their shipper 

customers. Since NSAs were first allowed, more than 730 entities have registered to file NSAs. 

During fiscal year 2008 alone, 990 original NSAs and 1,434 amendments were filed by 63 NVOCCs. 

Tariff Program Activities

The Shipping Act requires carriers and conferences to publish their tariffs electronically. Tariffs are 

to be made available, typically through Internet access, to any person, without time, quantity, or other 

limitation. Carriers are permitted under law to charge a reasonable fee for providing public access to 

their tariffs. The Bureau reviews and monitors the accessibility and accuracy of these private systems, 

and reviews published tariff material for compliance with the Shipping Act’s requirements. 

The Bureau evaluates applications for special permission to deviate from tariff publishing rules and 

regulations. During fiscal year 2008, the Bureau received and processed seven special permission 

applications. 

Unlike carriers, MTOs have the option of publishing or not publishing schedules of their rates, 

regulations, and practices, including limitations of liability for cargo loss or damage. Last year, 152 

MTOs made their schedules available to the public. 

 

The Bureau monitors the tariff activity and the service contracts of controlled carriers. Under the 

Shipping Act, no controlled carrier (that is, a carrier whose majority ownership is controlled by a 

foreign government) may maintain rates or charges in its tariffs or service contracts that are below a 

level that is just and reasonable, or establish or maintain unjust or unreasonable classifications, rules, 

or regulations in those tariffs or service contracts. In addition to monitoring the activities of known 

controlled carriers, the Bureau reviews trade publications to identify carriers that might be controlled 

by a foreign government. 

The Bureau also collects and processes information provided by carriers, MTOs, and OTIs 

concerning, among other things, the Internet location of their tariffs and schedules. These Internet 

locations are made available to the shipping public via the Commission’s website. Last year, the 

Bureau posted on the agency’s website 4,543 active/current tariff/schedule Internet addresses. Also, 

the Bureau posted the historical tariff addresses for 2,456 inactive/cancelled tariffs. 

In fiscal year 2008, the Commission received, processed and reviewed 1,625 Form FMC-1 filings. 

At the end of the year, there were 4,061 NVOCCs, 324 VOCCs, 6 conferences and 152 MTOs with 

FMC-1 forms on file indicating the location of their tariffs or MTO schedule publications. 

Formal Proceedings

The Bureau furnishes support in formal Commission proceedings arising in the areas of its expertise. 

The Bureau provides analyses and recommendations on petitions, information demand orders, and 

Commission-initiated rulemakings, and provides expert witness testimony in investigations of 

potential statutory violations and unfair foreign shipping practices. Further, the Bureau prepares 

economic testimony in Commission investigations. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 53 

In fiscal year 2008, the Bureau participated in the following matters: (1) providing cost data for, and a 

regulatory impact analysis of, a draft proposed rule to update the FMC’s filing and service fees to 

reflect 2007 costs; (2) conducting semi-annual meetings with agreement representatives pursuant to 

the settlement terms of the Fact Finding Investigation No. 25, Practices of Transpacific Stabilization 

Agreement Members Covering the 2002-2003 Service Contract Season; and (3) issuance of Section 

15 Orders to vessel-operating common carriers in the U.S.-Australia and New Zealand northbound 

and southbound trades. 

BTA's support of formal proceedings during fiscal years 2009 and 2010 will depend on the number 

and subject matter of the proceedings initiated over the period. The Bureau anticipates the need for a 

rulemaking to modify the Commission’s regulations for agreements in 46 CFR part 535 to provide 

for an electronic filing system and revise the Information Form and Monitoring Report requirements. 

In addition, the Bureau will support the Commission’s continuing efforts to address unfair foreign 

shipping practices under 46 U.S.C. 42101-42307 and the pricing practices of controlled carriers. 

Office of Economics and Competition Analysis

To keep the Commission apprised of current trade conditions, emerging commercial and economic 

trends, and the impact of regulations affecting ocean liner transportation, the Bureau prepares studies 

and profiles of major trades, monitoring reports, economic analyses, and agreement/carrier profiles, 

and undertakes special projects to identify and track relevant competitive and economic activity in 

major U.S. trade lanes. The Bureau’s monitoring activities include surveillance programs to identify: 

(1) concerted activity without an effective agreement on file with the Commission, or concerted 

activity exceeding the scope or authority of an effective agreement; (2) activity contravening the 

mandatory conference agreement provisions required under 46 U.S.C. 40303; (3) the potential for, or 

emergence of, unreasonable service reductions/cost increases that contravene the general standard in 

46 U.S.C. 41307(b)(1); (4) controlled carrier activity in accordance with the statutory requirements in 

46 U.S.C. 40701-40706; (5) the occurrence of prohibited activities as proscribed in 46 U.S.C. 41101-

41106; (6) economic harm associated with unfair trade practices of foreign governments; and 

(7) whether the continued operation of an effective agreement in its present form is consistent with 

the statutes and current Commission decisions, rules, and policies. Activities conducted under certain 

types of operational agreements among MTOs, particularly those with rate authority, also are 

monitored. The efficiency claims of these latter agreements are reviewed regularly. The Bureau also 

develops profiles of major trade areas to assess carrier behavior under agreements, to determine 

compliance with regulatory requirements, and to ascertain the competitive posture of carriers, 

shippers, and shippers’ associations within each trade. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 54 

In fiscal year 2008, BTA administered its oversight activities of agreements and prepared various 

reports and analyses. These included: (1) an initial analysis and list of questions for the 

Commission’s Request for Additional Information on the Los Angeles/Long Beach/Terminal 

Operator Administration and Implementation Agreement, a review of the parties’ responses, and an 

impact analysis of the agreement; (2) the close monitoring of the parties’ activities under the Los 

Angeles and Long Beach Port Infrastructure and Environmental Programs Cooperative Working 

Agreement regarding the CTP and related activities; this involved, inter alia, increasing the parties’ 

reporting requirements, reviewing minutes of the parties’ meetings, meeting with interested parties 

and groups, responding to Congressional inquiries, requiring amendment filings to the agreement, 

analyzing agreement amendments and recommending any necessary action under the Shipping Act; 

(3) an initial impact analysis of the Port of NY/NJ Sustainable Services Agreement between MTOs to 

discuss port-related environmental and security matters; (4) the initiation of a study to gauge the 

impact on the U.S. trades of the repeal by the European Union (“EU”) of the block exemption 

[Council Regulation (ECC) No. 4056/86] for liner shipping conferences in the EU trades, with data 

spanning several years before and after the repeal; (5) an analysis of data and information for the 

Commission on the market variables currently affecting the availability of containers and vessel 

space, especially in the U.S. trades to Asian countries, for shippers of U.S. exported goods in 

response to informal complaints; (6) a study with recommendations to the Commission on conditions 

affecting competition created by carrier agreements in the U.S. trade with Australia/New Zealand; 

and (7) the development and implementation of a secured electronic filing system with search and 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: OECA 4.94 6.00 6.00

Cost: Salaries & Benefits $614,414.62 $737,692.43 $781,870.44

Non‐Personnel Expenses $7,588.50 $0.00 $0.00

Total Cost $622,003.12 $737,692.43 $781,870.44

Federal Maritime Commission

$469,122.26 $267,139.07 $45,609.11

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

3.60 2.05 0.35

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Bureau of Trade Analysis

Office of Economics & Competition Analysis ("OECA")

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 55 

retrieval functions for reports of data and information filed by agreements pursuant to the 

Commission’s agreement reporting regulations. 

Other Bureau projects and initiatives completed or begun in fiscal year 2008 included: (1) 

competitive impact analyses of agreements and agreement modifications and ongoing analyses of 

periodic data and information of effective agreements to ensure their compliance with the Shipping 

Act; (2) continued efforts to correct compliance issues and problems with the Monitoring Reports and 

minutes of agreement meetings filed by parties to agreements subject to the Commission’s reporting 

regulations; (3) the development and implementation of modified Monitoring Report requirements 

for a number of rate discussion agreements between carriers; (4) a review of service contract and 

tariff data in response to informal complaints about emergency bunker fuel surcharges implemented 

by the carrier parties to the TSA due to the escalating cost of fuel; (5) a review of the effectiveness, 

after three years of operation, of the PierPASS program implemented under the West Coast MTO 

Agreement to relieve congestion at the Ports of Los Angeles/Long Beach; (6) an initial analysis 

assessing the competitive impact of capacity changes caused by membership and service 

modifications to the U.S. Pacific Coast – Oceania Agreement; (7) a report to the Commission, with 

updated data, assessing the competitive impact of the revenue pooling arrangement under the 

Southern Africa/Oceania Agreement; (8) an initial impact analysis of the Port of Seattle/Port of 

Tacoma Puget Sound Air Quality Discussion Agreement permitting the parties to discuss and address 

environmental matters relating to port and marine terminal operations; (9) an evaluation of the 

guidelines of the European Commission (EC) applying the competition laws of the EU to maritime 

transport; (10) monitoring of developments on the EC’s review of its block exemption regulations for 

consortia agreements between carriers [Commission Regulation No. 823/2000]; (11) assistance with 

data and information on agreements and trade conditions for the Commission’s hearings before 

Congress and the official speaking engagements of FMC Commissioners; and (12) responses to 

requests, inquiries, and informal complaints on carrier agreements and related agreement trade 

matters. 

During the fiscal year, BTA received 1,016 sets of agreement meeting minutes and 199 monitoring 

reports containing market share, cargo volumes, revenue, and service data for agreement parties, 

including capacity and capacity utilization data for certain types of agreements. Monitoring reports 

are filed quarterly by agreements classified as potentially anticompetitive, such as conference 

agreements and agreements with rate and/or capacity rationalization authority. The Bureau reviews 

these reports for filing compliance and uses the data to support its monitoring activities. In fiscal year 

2008, several carrier agreements began using, on a voluntary basis, the Bureau’s new web-based 

system for filing meeting minutes, monitoring reports and voluntary service contract guidelines. A 

majority of such documents are now being received in this manner. In addition, in fiscal year 2008, 

five applications for waivers to the minutes and/or monitoring report filing requirements were 

reviewed and processed. 

In fiscal years 2009 and 2010, the Bureau will continue to monitor agreement activities and trade 

conditions, to prepare reports and economic analyses on developments and issues in key U.S. trades, 

to report on the activities of controlled carriers, and to respond to inquiries and informal complaints. 

The Bureau also will focus on: (1) conducting research in support of the statutory standards and the 

requirements of relevant Commission regulations overseen by this Bureau, as well as other bureaus 

and offices in the agency; (2) assessing the impact and effectiveness of the regulations governing 

agreements in 46 CFR part 535; (3) expanding the Port Import Export Reporting Service (“PIERS”) 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 56 

interactive system to incorporate additional data at the level of individual bills of lading and the 

representation of data cartographically; (4) improving the Commission’s monitoring program of 

agreements designed to address such supply-chain and operational issues as port congestion, security, 

air pollution and environmental concerns that affect local communities and the industry; (5) 

conducting a thorough analysis of how vessel operators and MTOs are using antitrust immunity 

under the Shipping Act in the current market environment; and (6) completing major sections of the 

Bureau’s impact study on the repeal of the European Union’s block exemption for liner shipping 

conferences, especially those sections pertaining to historic periods prior to the repeal. In addition, 

the Bureau will continue to assist the Commission’s investigative and enforcement initiatives, and 

oversee international trade issues, such as unfair foreign shipping practices. As a Commission 

representative, the Bureau will continue to participate with the U.S. Customs and Border Protection 

in development of the Automated Commercial Environment/International Trade Data System 

(“ACE/ITDS”). The Bureau also will participate in the Maritime Data Working Group and the 

Interagency Action Team for the National Committee on the Marine Transportation System dealing 

with data collection and information management issues. 

Office of Agreements 

The focus of BTA's Agreements Program is to analyze what impact carrier or terminal agreements 

will have on competition, in particular whether it is likely that agreements will result in an 

unreasonable increase in transportation cost or decrease in service. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 57 

During fiscal year 2008, BTA received 183 agreement filings. The Bureau reviewed, evaluated, and 

processed 176 filings, including three pending from fiscal year 2007. Agreement filings in 2008 were 

only down by eight from 2007. 

In 2008, there were 226 effective carrier agreements on file, an increase of three from fiscal year 

2007. The number of carrier agreements on file has remained relatively stable since fiscal year 2003, 

when there were 231 agreements on file. Operational agreements, those involving the sharing of 

vessel space, continued to be the predominant type of agreement on file, accounting for 70% of 

agreements on file in 2008. Conferences, once the dominant pricing forum, accounting for 28% of all 

effective carrier agreements in 1983 and 12% in 1998, have lost much of their influence over the last 

ten years, amounting to just 3% of all effective agreements in 2008. 

The number of marine terminal agreements on file continues to fall as terminal operators take 

advantage of the Commission’s filing exemption for terminal leases and terminal services 

agreements. In 2008, there were 182 terminal agreements on file, down from 255 at the end of 2007. 

Although the fall in the number of agreements can be attributed mostly to the filing exemptions, BTA 

contacted various ports and ascertained that a number of older agreements that were on file had been 

terminated. The foregoing notwithstanding, the Bureau has seen an increase in the number of new 

discussion agreements among MTOs, especially those concerning environmental issues. Since fiscal 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Agreements 4.00 4.00 4.00

Cost: Salaries & Benefits $341,496.57 $393,548.55 $421,182.62

Non‐Personnel Expenses $6,488.25 $0.00 $0.00

Total Cost $347,984.82 $393,548.55 $421,182.62

Bureau of Trade Analysis

Office of Agreements

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$263,239.14 $131,619.57 $26,323.91

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.50 1.25 0.25

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 58 

year 2005, the number of MTO discussion agreements on file has increased by 85 percent, from 7 to 

13. This increase represents the largest percentage gain by any class of MTO agreements during that 

period. During that same time frame, the number of MTO conferences dropped by 33%, from 15 to 

10. 

BTA also receives and reviews minutes of meetings and reports filed by various agreement parties. 

As discussed below, in fiscal year 2008 the Bureau received 1,016 sets of minutes, 199 monitoring 

reports, 197 Voluntary Contract Guidelines (“VSCGs”), 24 ad hoc reports, and 5 applications for 

waivers to the minutes and/or monitoring report filing requirements that were reviewed and 

processed. 

Agreement regulations enacted in fiscal year 2005 allow for low market-share agreements without 

pricing or capacity rationalization authorities to become effective upon filing. From fiscal year 2005 

through fiscal year 2007, the percentage of new agreements filed that qualified for the low market 

share exemption increased from 12% to almost 30%. In 2008, the percentage of agreement filings 

that qualified for the exemption dipped to 19%. 

During the year, BTA analyzed the potential impacts of a number of significant agreement filings, 

including: a discussion agreement among MTOs in the Port of New York/New Jersey (Port of NY/NJ 

Sustainable Services Agreement); a non-compete agreement between vessel-operating common 

carriers related to a corporate acquisition (Hoegh/Maersk Ancillary Agreement); a cooperative 

working agreement between the cities of Los Angeles and Long Beach, acting through their 

respective boards of harbor commissioners, and the members of the West Coast MTO Agreement to 

collect and exchange information, engage in discussions, and reach agreement with respect to the 

administration and operation of environmental programs beneficial to the Los Angeles/Long Beach 

port community (Los Angeles/Long Beach/Terminal Operator Administration and Implementation 

Agreement); an information exchange agreement among carriers serving the European trades (The 

Container Trades Statistics Agreement) which replaced the conference that was in effect in the trade, 

and five marine terminal joint venture, cooperative working agreements that established joint 

ventures to operate marine terminal facilities in the Gulf, South Atlantic, and Pacific Northwest 

regions. 

The Bureau maintains an agreements database and e-library containing up-to-date information 

pertaining to, and copies of, effective agreements. In fiscal year 2008, the Bureau completed links in 

its database to copies of its marine terminal agreements in its e-library, giving the public direct access 

to copies of such agreements through the agency’s website. The number of hits on the agreements 

library on the agency’s website averaged 706 per month during fiscal year 2008, a 45% increase from 

last year. 

In fiscal years 2009 and 2010, the Bureau, in conjunction with the agency’s Office of the Secretary 

and the Office of Information Technology, expects to enhance public access to agreements and to 

develop and implement procedures for the electronic filing of agreements. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 59 

Bureau of Certification and Licensing (“BCL”) 

The BCL licenses U.S.-based OTIs, including ocean freight forwarders and NVOCCs; receives surety 

bonds and processes registrations for foreign-based (unlicensed) NVOCCs; issues certificates to 

owners and operators of passenger vessels that have evidenced financial responsibility to satisfy 

liability incurred for nonperformance of voyages or for death or injury to passengers and other 

persons; manages programs assuring financial responsibility of OTIs and PVOs by developing 

policies and guidelines, and analyzing financial documents; and develops and maintains information 

systems that support the Bureau’s programs and those of other Commission entities. 

The Bureau is composed of two offices: the Office of Transportation Intermediaries, which has 

responsibility for reviewing and approving applications for OTI licenses, and maintaining and 

updating records about licensees; and the Office of Passenger Vessels and Information Processing, 

which has responsibility for reviewing applications for certificates of financial responsibility with 

respect to passenger vessels, managing all activities with respect to evidence of financial 

responsibility for OTIs and PVOs, and for developing and maintaining all Bureau databases. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 4.14 4.00 3.90

Cost: Salaries & Benefits $601,315.00 $574,374.02 $589,924.65

Non‐Personnel Expenses $589,151.99 $638,283.39 $602,890.48

Total Cost $1,190,466.99 $1,212,657.41 $1,192,815.13

Bureau of Certification and Licensing

Office of the Director

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$0.00 $902,257.60 $290,557.53

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 2.95 0.95

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 60 

Office of Passenger Vessels and Information Processing

The Commission administers 46 U.S.C. §§ 44102-44103, which requires evidence of financial 

responsibility for vessels which have berth or stateroom accommodations for 50 or more passengers 

and embark passengers at U.S. ports and territories. The program now encompasses 203 vessels and 

48 operators, which have evidence of financial responsibility coverage in excess of $339 million for 

nonperformance and over $725 million for casualty. Certificates of performance cover financial 

responsibility for indemnification of passengers for nonperformance of transportation. This 

requirement helps prevent unscrupulous or financially weak operators from entering or operating 

from U.S. ports. Some potential operators with unfavorable histories may find it difficult or 

impossible to obtain a bond from a reputable surety company. The financial responsibility 

requirement ensures that liability will be met even after an operator has ceased operations and 

dissolved its corporate existence because the evidence of financial responsibility is still valid and 

available to claimants against the guarantor. Certificates of casualty are required to meet any liability 

that may occur for death or injury to passengers or other persons on voyages to or from U.S. ports in 

the amounts established by the statute. The certificates issued pursuant to this program are necessary 

for U.S. Customs and Border Protection’s clearance of thousands of passenger vessel sailings 

annually. During fiscal year 2008, the Commission approved and issued 30 casualty certificates and 

37 performance certificates, an increase of 20% and 6%, respectively, from the previous fiscal year. 

In conjunction with CADRS, the Bureau offers information and guidance to the cruising public 

throughout the year on passenger rights and obligations regarding monies paid to cruise lines that fail 

to perform voyages. Over the past few years, a number of cruise operators discontinued operations or 

filed for bankruptcy. When cruise lines fail to perform because of bankruptcies or other failures, the 

Commission works closely with the cruise line and the financial responsibility provider, if necessary, 

to facilitate the refund process. The public is kept informed through press releases posted on the 

Commission’s website and advice given to passengers who contact FMC staff. During fiscal year 

2008, one cruise operator under the Commission’s PVO program ceased operation and none filed for 

bankruptcy. Staff continued to assist passenger vessel operators and financial responsibility providers 

to resolve passenger claims for several cancelled cruises. 

The Bureau examines PVO activities and operations by monitoring current industry events and 

reviewing cruise lines’ financial records. Oversight of cruise line operators’ operations and activities 

ensures compliance with applicable statutes and Commission regulations. One component of the 

Bureau’s PVO monitoring program is to perform on-site reviews of PVOs’ financial responsibility. 

The on-site review confirms the passenger vessel operator’s compliance with the Commission’s 

reporting requirements relating to unearned passenger revenue and the appropriate amount of 

coverage required to ensure adequate financial responsibility. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 61 

During fiscal year 2008, staff conducted an on-site review of a cruise line which established its 

financial responsibility with an escrow account; developed PVO procedures to assist staff review of 

the monitoring process; and completed two internal reviews of the PVO files to assess the internal 

control practices implemented to ensure cruise line operators provide timely and accurate information 

with respect to the submission of reports and records. 

In fiscal years 2009 and 2010, BCL will continue to accomplish the Commission’s goal related to 

assuring that the PVO program meets the contemporary needs of the cruising public. The Bureau will 

enhance the PVO monitoring program by performing one on-site review of a cruise line’s unearned 

passenger revenue each year; conduct quarterly reviews of the PVO monitoring files to ensure cruise 

line operators provided timely and accurate information with respect to the submission of reports and 

records; and make appropriate corrections in staff procedures and monitoring schedules, and follow 

up to ensure that the new procedures are timely implemented. 

Automated Database Systems

During fiscal year 2008, BCL continued to modernize and expand the RPI, a Commission database 

containing up-to-date records of licensed OTIs, ocean common carriers and other entities. Among 

other data uses, the RPI is used to post on the Commission’s website a list of OTIs which are 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: OPVIP 5.38 5.59 6.00

Cost: Salaries & Benefits $589,349.00 $643,522.75 $664,972.08

Non‐Personnel Expenses $2,903.53 $0.00 $0.00

Total Cost $592,252.53 $643,522.75 $664,972.08

Federal Maritime Commission

$0.00 $604,016.31 $60,955.77

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 5.45 0.55

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Bureau of Certification and Licensing

Office of Passenger Vessels & Information Processing ("OPVIP")

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 62 

compliant with OTI requirements so that carriers and others can ascertain whether an OTI is properly 

licensed, bonded, and if required, has posted the location of its automated tariff. The OTI list also 

indicates whether an NVOCC has filed an optional rider for additional proof of NVOCC financial 

responsibility. Also, in conjunction with the agency’s OIT, BCL developed a plan to automate the 

PVO Application Form FMC-131, Application for Certificate of Financial Responsibility, and 

conducted a corresponding requirements analysis to facilitate the filing of PVO applications. 

In fiscal years 2009 and 2010, the Bureau also will continue to work with the OIT to initiate a 

redesign of the OTI list maintained on the Commission’s website to increase accessibility to 

information, facilitate public search capability, and make it more interactive for users. 

Office of Transportation Intermediaries

OTIs are transportation middlemen for oceanborne cargo moving in the U.S.-foreign trades. There 

are two types: NVOCCs and ocean freight forwarders. NVOCCs are common carriers who do not 

operate the vessels by which transportation is provided. Ocean freight forwarders in the U.S. arrange 

for the transportation of cargo with a common carrier on behalf of shippers and process documents 

related to those shipments. Both NVOCCs and ocean freight forwarders must be licensed by the 

Commission if they are located in the U.S. NVOCCs doing business in the U.S. foreign trades but 

located outside the U.S. (foreign NVOCCs) may choose to become licensed, but are not required to 

do so. Whether licensed or not, foreign NVOCCs must establish financial responsibility. All 

NVOCCs must publish electronic tariffs which contain the NVOCC’s rates, charges, rules and 

practices. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 63 

To become licensed by the Commission, an OTI must establish that it, through its Qualifying 

Individual (“QI”), has a minimum of three years of experience in ocean transportation intermediary 

activities in the U.S. and the necessary character to render OTI services as well as establish its 

financial responsibility by means of a bond, insurance, or other instrument. An investigation of the 

applicant’s qualifications addresses such issues as accuracy of information provided in its 

application; integrity and financial responsibility of the applicant; character of the applicant and its 

QI; and length and nature of the QI’s experience handling OTI duties. Licensed ocean freight 

forwarders must establish financial responsibility in the amount of $50,000, and licensed NVOCCs, 

$75,000. An additional $10,000 of coverage is required for each unincorporated branch office in the 

United States other than the one used to establish a presence. If an OTI is a licensed NVOCC, it must 

file a Form FMC-1 and publish a tariff. Furthermore, non-U.S.-based NVOCCs that do not wish to 

be licensed must provide the Commission with proof of financial responsibility in the amount of 

$150,000, file a Form FMC-1, and ensure a tariff is published at the site listed on the Form FMC-1. 

A non-U.S.-based NVOCC must list in its tariff an agent for service of process in the United States, 

and it must use a licensed OTI for any OTI services performed on its behalf in the United States. The 

financial instrument must be available to pay claims against the OTI arising from its transportationrelated activities, any order of reparation assessed under the Shipping Act, and any judgments for 

damages against an OTI arising from its transportation-related activities under the Shipping Act. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Transportation Intermediaries 7.93 8.11 9.00

Cost: Salaries & Benefits $723,018.00 $823,133.20 $879,969.16

Non‐Personnel Expenses $12,737.32 $0.00 $0.00

Total Cost $735,755.32 $823,133.20 $879,969.16

Bureau of Certification and Licensing

Office of Transportation Intermediaries

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$0.00 $811,527.11 $68,442.05

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 8.30 0.70

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 64 

During fiscal year 2008, the Commission received 502 new OTI applications and 236 amended 

applications, issued 474 OTI licenses, revoked 227 licenses, and reissued 13 licenses. At the end of 

the fiscal year, 1,136 ocean freight forwarders, 1,720 U.S. NVOCCs, 1,367 joint NVOCC/ocean 

freight forwarders, and 49 foreign NVOCCs held active OTI licenses. An additional 1,032 foreign 

NVOCCs maintained proof of financial responsibility on file with the Commission, but chose not to 

be licensed. Overall, there has been a gain of 254 licensed and/or bonded OTIs, representing a 5% 

increase from 5,050 OTIs in fiscal year 2007 to 5,304 in fiscal year 2008. U.S. NVOCCs may file 

riders to their existing NVOCC bonds to meet financial responsibility requirements imposed by the 

Chinese government. The Commission received 103 riders providing optional proof of financial 

responsibility for NVOCCs serving in the U.S.-China trade. 

The Bureau continues to experience a backlog of applications. Much of the delay in processing 

occurs because data provided with the initial submission is incomplete. This requires the staff to 

contact the applicant and request the necessary information before making a determination to issue a 

license. BCL continues to work diligently with OTI applicants, seeking to promote accurate and 

complete submissions and to process such applications within 90 business days of receipt. 

In fiscal year 2008, the Bureau implemented electronic filing of an automated Form FMC-18, 

Application for an Ocean Transportation Intermediary License, permitting filers to complete an OTI 

application on-line, scan and attach required documents, and submit the application electronically. 

The filing system incorporates significant security features for the purpose of protecting applicant 

data, and detecting and preventing unauthorized system intrusions. At the present time, 

approximately 80% of all incoming OTI applications received are from the electronic system. The 

FMC continued its outreach program and promoted awareness of OTI licensing requirements. 

Specifically, in conjunction with the efforts of Hawaii State Representative John Mizuno’s office, 

FMC personnel addressed the interests and needs of Representative Mizuno’s constituents by 

presenting a general information session to those involved in OTI activities which necessitate 

licensing. Further, staff participated at the Florida Customs Brokers and Forwarders Association 

Seminar, How to Obtain an OTI License/Responsibilities of an OTI under the Shipping Act and 

Regulations. 

 In fiscal years 2009 and 2010, BCL will carry on efforts to design additional enhancements to the 

electronic Form FMC-18 system to expedite licensing, including the functionality for electronic 

payments, e-signature capability, electronic filing of bond information and further explore integration 

of FMC databases. Also, in fiscal year 2009, the Bureau will continue its outreach and programs to 

promote awareness of OTI requirements. 

Bureau of Enforcement (“BOE”)

The BOE has primary responsibility for ensuring compliance with the shipping statutes administered 

by the Commission, principally the Shipping Act. The Bureau is actively involved in the 

Commission=s outreach activities and interacts regularly with all segments of the ocean transportation 

industry. The Bureau is also active in maritime security and works closely with the agency=s BCL to 

promote prompt licensing of all qualified OTIs, and with the Department of Homeland Security=s 

(“DHS”) CBP to ensure submission of complete and accurate shipping data. Bureau attorneys also 

serve as legal advisors to the Director of OPs and to other bureaus and offices, and may be designated 

as Investigative Officers in nonadjudicatory fact finding proceedings. Additionally, Bureau attorneys 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 65 

work closely with the Commission=s investigatory personnel and participate as trial counsel in formal 

adjudicatory proceedings. The Bureau monitors all other formal Commission proceedings and 

relevant court actions in order to identify major regulatory issues and to advise the Director of OPS 

and the other bureaus and offices. The Bureau also participates with other bureaus and offices in 

committees and task forces in the development of Commission policies, rules, and regulations. The 

Bureau also intervenes in formal complaint proceedings where appropriate. 

With investigative personnel, the Bureau monitors and conducts investigations into the activities of 

ocean common carriers, OTIs (NVOCCs and freight forwarders), shippers, ports and terminals, and 

other persons to ensure compliance with the statutes and regulations administered by the 

Commission, thereby providing maximum protection to all participants in the ocean transportation 

shipping industry. Monitoring activities include: (1) service contract and NSA reviews to determine 

compliance with applicable statutes and regulations; (2) reviews of VOCC and OTI operations, 

including monitoring OTI compliance with bonding requirements and post-licensing and routine 

compliance checks of licensees to determine whether operations conform with regulatory 

requirements; and (3) monitoring operation of carrier and MTO agreements, including review of 

minutes and quarterly reports. Investigations are conducted into alleged violations of the full range of 

statutes and regulations administered by the Commission, including: illegal rebating, misdescriptions 

or misdeclarations of cargo, illegal or unfiled agreements, abuses of antitrust immunity, unlicensed 

OTI activity, untariffed cargo carriage, unbonded passenger vessel operations, unlawful MTO 

activity and various types of consumer abuses, such as failure of carriers or intermediaries to carry 

out transportation obligations, resulting in cargo delays and financial losses for shippers. Through 

these activities, the enforcement program supports the agency=s objectives of obtaining statutory 

compliance and ensuring equitable trading conditions and focusing enforcement efforts on activities 

which have market-distorting effects and those which impact most directly on the shipping public. 

BOE prepares and serves notices of violations of the shipping statutes and Commission regulations 

and may compromise and settle civil penalty demands arising out of those violations. If settlement is 

not reached, Bureau attorneys act as prosecutors in formal Commission proceedings that may result 

in settlement or in the assessment of civil penalties. The Bureau participates, in conjunction with 

other bureaus, in special enforcement initiatives, fact finding investigations, ADR processes, 

rulemaking efforts, and homeland security issues. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 66 

During fiscal year 2008, BOE worked to obtain statutory compliance in all major trades and with all 

segments of the transportation industry, i.e., carriers, carrier agreements, MTOs, PVOs, and OTIs. 

The Bureau also initiated actions to address and seek compliance for market-distorting activities such 

as various forms of secret rebates and absorptions, misdescriptions of commodities and 

misdeclarations of measurements, illegal equipment substitution, unlawful use of service contracts, as 

well as carriage of cargo by and for untariffed and unbonded NVOCCs and joint carrier activities 

outside the authority of existing agreements or pursuant to unfiled agreements. Particular emphasis 

was placed on industry service contracting activities to ensure fair trading conditions and protection 

of the public. Most of these malpractice investigations result in compromise settlements of civil 

penalties or are treated as compliance matters and closed without action. However, certain 

investigations of carrier and MTO practices have required the institution of formal adjudicatory 

proceedings in order to pursue remedies under the 1984 Act. 

A major investigation was initiated late in fiscal year 2008 into the respective Clean Truck Programs 

of Los Angeles and Long Beach, CA, including the ports’ operations and practices under several 

agreements filed with the Commission. The Bureau also continued its ongoing investigation of 

household goods movers operating as unlicensed OTIs, including investigation of the VOCCs and 

licensed NVOCCs that provide service to the unlicensed movers. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 9.69 12.00 11.90

Cost: Salaries & Benefits $1,247,709.77 $1,641,879.48 $1,776,966.29

Non‐Personnel Expenses $542,900.33 $556,162.23 $491,493.58

Total Cost $1,790,610.10 $2,198,041.71 $2,268,459.87

Federal Maritime Commission

2.03 9.39 0.48

Bureau of Enforcement

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

$386,100.55 $1,790,362.52 $91,996.80

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 67 

In fiscal year 2008, the compliance audit program continued as a major focus of BOE. This program, 

conducted from headquarters primarily by mail and telephone, reviews the operations of licensed 

OTIs to assist them in complying with the statutory requirements and the Commission=s rules and 

regulations. The audit program also reviews entities holding themselves out as VOCCs, but with no 

indication of actual vessel operations. At the beginning of fiscal year 2008, six audits were pending. 

During the fiscal year, 117 audits were commenced, 116 audits were completed, and 7 were pending 

in the Bureau on September 30, 2008. 

At the beginning of fiscal year 2008, 18 enforcement cases were pending final resolution by the 

Bureau, 7 formal proceedings were pending, and there were 78 matters pending legal advice. During 

the fiscal year, 21 new enforcement actions were commenced; 14 were compromised and settled, 

administratively closed, or referred for formal proceedings; and 25 enforcement cases were pending 

resolution at fiscal year's end. Also, four formal proceedings were initiated; two formal proceedings 

were completed, and nine were pending at the end of the fiscal year. Additionally, 77 matters 

involving investigation or legal advice were received during the fiscal year, 62 such matters were 

completed, and 93 were pending in the Bureau on September 30, 2008. 

In fiscal years 2009 and 2010, the Bureau will continue to take steps against market-distorting, 

fraudulent, and anticompetitive practices harmful to the industry and the public and to monitor U.S. 

trades and the implementation of the Commission=s revised regulations, including those resulting 

from OSRA, to the extent that resources permit. The Bureau will continue to take action against 

VOCCs and NVOCCs engaged in unfair service-contracting practices, particularly those which 

permit improper entities to compete unlawfully with carriers and OTIs operating in compliance with 

U.S. laws, and will expand the OTI monitoring and audit programs. The enforcement and monitoring 

activities will include focusing on the unlawful operations of household goods carriers - both licensed 

and unlicensed - which have increasingly caused economic harm to individual consumers, as well as 

competitive injury to those carriers operating lawfully. 

BOE will continue to review the operations of MTOs and, together with other Commission bureaus 

and offices, will monitor MTO-filed agreements to ensure compliance with the Shipping Act and the 

Commission’s regulations. The Bureau will also continue its monitoring of NVOCC activity 

involving NSAs. Public outreach efforts will continue to educate maritime transportation users and 

providers with regard to FMC statutes and regulations, and the program will continue to improve 

participation in security issues as they relate to U.S. ocean commerce, specifically to include efforts 

to coordinate the use of available database systems with other agencies or government groups 

engaged in homeland security to improve identification of entities providing and utilizing maritime 

transportation services. 

 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 68 

Administration Program

Office of Administration (“OA”) 

Office of the Director

The OA provides administrative support to the program operations of the Commission. OA interprets 

governmental policies and programs and administers these consistent with Federal guidelines, 

including those involving procurement, information technology, financial management and human 

resources. OA initiates recommendations, collaborating with other elements of the Commission as 

warranted, for long-range plans, new or revised policies and standards, and rules and regulations, 

with respect to its program activities. The Director is responsible for the direct administration and 

coordination of the: 

Office of Information Technology; 

Office of Human Resources; 

Office of Financial Management; and 

Office of Management Services. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 3.82 3.31 4.00

Office of Information Technology 5.92 7.00 7.00

Office of Human Resources 4.12 6.29 4.00

Office of Financial Management 5.00 5.00 5.00

Office of Management Services 4.77 5.00 5.00

Total FTEs 23.63 26.60 25.00

Cost: Salaries & Benefits $2,720,931.00 $2,838,078.04 $3,136,771.18

Non‐Personnel Expenses $2,748,679.46 $1,837,704.11 $1,678,158.37

Total Cost $5,469,610.46 $4,675,782.15 $4,814,929.55

14.10

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Administration

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$715,492.99 $1,331,914.83 $2,767,521.73

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

3.70 7.20
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 69 

Many of the functions and achievements of OA are reflected below in the narratives for these offices. 

The Director provides administrative guidance to the Offices of the Chairman, Commissioners, 

Secretary, General Counsel, Administrative Law Judges and Operations, and administrative 

assistance to the Offices of the Inspector General and Equal Employment Opportunity. The Director 

is the FMC=s Chief Acquisition Officer, Audit Follow-up and Management (Internal) Controls 

Official, Senior Agency Official for Privacy, and Forms Control Officer. The Director also represents 

the FMC as Principal Management Official on the Small Agency Council (“SAC”). As the Chief 

Financial Officer, the Director provides program oversight for the agency=s budget and financial 

management responsibilities, and ensures agency compliance with the Financial Integrity Act, the 

Antideficiency Act, and the Debt Collection Improvement Act of 1996. OA staff act as the point of 

contact for the Small Business Administration=s E-forms initiative. 

The Deputy Director of Administration is the FMC’s Chief Information Officer (“CIO”). The CIO 

oversees the Office of Information Technology operations and activities administered under the 

Clinger-Cohen Act of 1996, as well as other applicable laws which prescribe responsibility for 

operating the program. The Deputy Director also serves as the FMC’s Competition Advocate and as 

Records Management Officer. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of the Director 3.82 3.31 4.00

Cost: Salaries & Benefits $621,546.00 $458,674.62 $639,783.91

Non‐Personnel Expenses $228,922.97 $133,500.28 $164,355.59

Total Cost $850,468.97 $592,174.90 $804,139.50

Administration

Office of the Director

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$120,620.93 $201,034.87 $482,483.70

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.60 1.00 2.40

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 70 

During fiscal year 2008, the Office of the Director guided the agency=s continuing efforts to enhance 

its information technology (“IT”) program. The agency received an unqualified opinion in its fiscal 

year 2008 financial statement audit. The Office engaged in the orderly transition to the Office of 

Operations of responsibility for preparation of the Annual Performance Plan, the Annual Program 

Performance Report, and the agency Strategic Plan, as required by the Government Performance and 

Results Act (“GPRA”). The Office prepared the Federal Activities Inventory Reform Act report, and 

the PAR (which included the MD&A and the Federal Managers Financial Integrity Act report). Also 

during the fiscal year, the Office directed the update of internal Commission issuances that specify 

procedures for a variety of programs and activities, guided Commission efforts to comply with the 

Government Paperwork Elimination Act (“GPEA”) and FISMA, and responded to Congressional 

inquiries. Additionally, the Office guided the development of the fiscal year 2010 baseline documents 

to OMB and the fiscal year 2009 President=s Budget submission, and directed the audit of the 

Commission=s fiscal year 2008 financial statements. The Office also provided primary support for 

the OMB clearance and records management programs, and guided the further development of the 

agency=s COOP. 

OA=s key objectives for fiscal years 2009 and 2010 are: continuing to refine and enhance agency 

administrative programs and operations by reviewing, developing and/or updating internal 

Commission Orders and Standard Operating Procedures; assessing agency records disposition 

requirements in accordance with the National Archives and Records Administration guidelines; 

monitoring the accomplishment of agency performance goals, particularly those related to the 

implementation of Pay.gov and General Services Administration’s (“GSA”) Smart Pay Program for 

agencywide and industry acceptance of electronic payments; initiating further information technology 

improvements, including the replacement, integration or update of agency database systems, the 

upgrading of network and desktop operating systems, and the implementation of VoIP; and working 

with senior managers to ensure effective strategic succession planning. The Office also will take the 

lead in assuring that the agency-wide computer security program is effective, that the agency=s 

financial management system receives an unqualified opinion in annual financial audits, and that the 

agency complies fully with the government-wide HSPD-12 initiative. 

Office of Information Technology (“OIT”) 

OIT provides management support and services with respect to IT systems facilitating the program 

and administrative operations of the Commission, and thus is responsible for ensuring that the 

Commission’s IT program is administered in a manner consistent with applicable rules, regulations 

and guidelines. OIT receives program guidance from the agency’s CIO. 

The Director, OIT serves as the Commission’s Information Technology Officer, Telecommunications 

Manager, and Help Desk and Database Administration Manager, and oversees the IT security 

program. The OIT Director plans, coordinates, and facilitates the use of automated information 

systems. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 71 

During fiscal year 2008, significant OIT activities included the following: (1) developed the internal 

side of the automated Form FMC-18, Application for a License as a Ocean Transportation 

Intermediary; (2) redesigned the Commission’s RPI system; (3) converted all databases from 

Structured Query Language (“SQL”) 2003 to SQL 2005; (4) reported to OMB that the FMC is in full 

compliance with the Federal Desktop Core Configuration (“FDCC”); (5) reported to OMB that the 

FMC is in full compliance with the IPv6 implementation mandate; (6) updated policies and 

procedures associated with technical assistance provided to FMC staff and changes in the IT 

infrastructure; (7) administered the agency’s IT technical support and assistance contracts; (8) 

initiated a contract with Verizon, through GSA, to upgrade the FMC’s phone system to VoIP; (9) 

furnished agency-wide advice and coordination on electronic records; (10) reviewed and completed 

security assessments for all FMC systems; (11) coordinated and monitored the FMC’s IT Security 

Awareness training; (12) improved compliance with FISMA and other Federal IT initiatives; (13) 

relocated the data held at the FMC’s COOP site in San Antonio, TX to a new COOP site in 

Germantown, MD; (14) worked with OMS and GSA regarding renovations to the FMC’s data center 

and air conditioning requirements; (15) coordinated with OMS to initiate a technology upgrade of the 

Commission’s hearing room and conference areas; and (16) commenced a study of current databases 

maintained by the FMC to begin the process of creating enterprise-wide interconnection between all 

applicable FMC databases. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of Information Technology 5.92 7.00 7.00

Cost: Salaries & Benefits $669,785.00 $831,757.70 $888,887.03

Non‐Personnel Expenses $2,082,634.45 $1,242,245.57 $1,080,784.89

Total Cost $2,752,419.45 $2,074,003.27 $1,969,671.92

Federal Maritime Commission

$295,450.79 $492,417.98 $1,181,803.15

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.05 1.75 4.20

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Administration

Office of Information Technology

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 72 

For fiscal years 2009 and 2010, major initiatives include plans to: (1) become fully compliant with 

FISMA requirements; (2) complete implementation of VoIP; (3) create an FMC Enterprise 

Architecture Plan; (4) subject to adequate funding, upgrade the existing desktop operating system, 

software applications, and equipment; (5) improve the Virtual Private Network security 

infrastructure; (6) incorporate the Pay.gov initiative; (7) subject to adequate funding, complete the 

technology upgrade of the Commission’s hearing room and conference rooms; and (8) complete the 

entire Form FMC-18, so that the Commission can not only receive applications but also process the 

applications electronically. 

Office of Human Resources (“OHR”)

OHR plans and administers a complete human resources management program including: recruitment 

and placement, position classification and pay administration, occupational safety and health, 

employee assistance, workforce discipline, performance management and incentive awards, 

employee benefits, retirement, employee development and training, and personnel security. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of Human Resources 4.12 6.29 4.00

Cost: Salaries & Benefits $425,527.00 $463,355.97 $475,102.73

Non‐Personnel Expenses $134,574.49 $140,974.34 $130,719.82

Total Cost $560,101.49 $604,330.31 $605,822.55

Administration

Office of Human Resources

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$90,873.38 $151,455.64 $363,493.53

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.60 1.00 2.40

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 73 

Major accomplishments during fiscal year 2008 include the following: (1) monitored activities of the 

agency’s payroll/personnel service provider, the National Finance Center (“NFC”), and worked with 

OA staff to ensure security, continuity and accuracy of payroll and personnel services; (2) 

coordinated with senior management in administering certain employee development programs and 

activities to address succession planning, i.e., Senior Executive Service (“SES”) Candidate 

Development Program and the Emerging Leaders Program; (3) conducted a comprehensive training 

program in accordance with the agency’s budget and strategic and performance plans, promoting elearning and on-line training opportunities, continuing the college tuition reimbursement program, 

ensuring training for new employees on the No Fear Act, and participating in the SAC Training 

Program; (4) planned, implemented, and promoted new programs for Personal Financial Literacy 

Education and Volunteer/Community Service Awareness and issued newsletters highlighting 

appropriate information and activities; (5) conducted a comprehensive personnel and information 

security program, including initiating and adjudicating security investigations for new and 

reinvestigated employees, and collaborating with the CBP to gain access to the ACE/ITDS; (6) 

coordinated with the Office of Personnel Management (“OPM”) in administering the Federal Human 

Capital Survey and worked with senior management to identify areas needing improvement; (7) 

implemented provisions of the Federal Workforce Flexibility Act and contracted for development of 

a Human Capital Plan, Workforce Succession Plan, and Accountability System Policy and Plan in 

accordance with OPM’s Human Capital Assessment and Accountability Framework; (8) conducted a 

comprehensive performance management and incentive awards program; (9) conducted a 

comprehensive recruitment program; (10) coordinated with OPM, OMB, and others on human capital 

initiatives related to the President’s Management Agenda; (11) maintained the partnership for 

acquisition of assistive devices through the Department of Defense’s Computer/Electronic 

Accommodations Program; (12) continued to work with the SAC, OPM and NG Integic officials to 

complete program activities to implement e-OPF; (13) promoted the Preventive Health and 

Awareness Program and OPM’s Healthier Feds initiatives and hosted wellness seminars sponsored 

by the Employee Assistance and Federal Occupational Health Programs; (14) managed and 

conducted employee benefit and charitable contributions programs and Open Seasons, such as the 

Combined Federal Campaign, Long-Term Care Insurance Program, Flexible Spending Accounts, the 

annual Benefits Open Season and FMC Health Fair, etc.; (15) oversaw preparation for 

implementation of the Enterprise Human Resources Integration Project, and administered other eGov initiatives such as Recruitment One-Stop, e-payroll, e-clearances, and e-learning; (16) conducted 

a proactive retirement program that included computing benefits, providing retirement seminars, 

related training and one-on-one counseling, and processing all retirements; (17) coordinated with 

other administrative units and GSA to implement pertinent provisions of HSPD-12 and meet OMB 

requirements related to issuance of Federal employee credentials; (18) evaluated contractor 

performance in the area of classification/position management; and (19) worked with contractors to 

facilitate agency-wide implementation of the automated training data management reporting system 

required by OPM. 

In fiscal years 2009 and 2010, OHR plans to: (1) advise agency management and staff on all human 

resources matters and maintain a sound and progressive human resources program; (2) implement 

pertinent portions of the agency’s strategic, training and related performance plans, particularly 

performance goals related to the management of human resources; (3) explore and implement 

simplification, flexibility, and accountability of human resources management programs, including 

investigating automated solutions to address program requirements; (4) in conjunction with 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 74 

administrative components and the GSA, evaluate the implementation of e-OPF and conversion of 

HR records to electronic format to address program requirements and meet agency business needs; 

(5) complete implementation of HSPD-12 and the credentialing of all employees; (6) monitor the 

processes and database modernization activities of the NFC in conjunction with the government-wide 

e-payroll initiative and ensure timely and accurate payroll and personnel services; and (7) implement 

and evaluate agency Human Capital, Workforce Planning and Accountability Plans and associated 

metrics to assess progress in meeting strategic and performance goals and to determine necessary 

modifications. 

Office of Financial Management (“OFM”)

OFM administers the Commission's financial management program and is responsible for offering 

guidance on optimal use of the Commission's fiscal resources. OFM's main responsibilities are to: 

(1) produce, submit and support annual budget justifications and estimates to OMB and the Congress; 

(2) execute annual budgets to ensure that appropriated funds are properly expended; (3) review 

audited financial reports; (4) administer the control system over workyears of employment; (5) 

collect and deposit all fees and forfeitures due the Commission and pursue collections of debts; (6) 

process accounts payable documents; (7) verify financial, accounting and payroll reports generated 

by the agency’s fiscal services agents; (8) process travel orders and vouchers; and (9) manage the 

Commission’s Travel Charge Card and Cash Management Programs. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 75 

The Commission has an interagency agreement (“IAG”) with the Bureau of Public Debt (“BPD”) to 

provide such services as general ledger accounting, travel, procurement, and financial reporting. 

OFM serves as the Commission’s primary contact with BPD and verifies all accounting transactions, 

oversees the timely submission of quarterly financial statements to OMB, and works to ensure that an 

unqualified opinion is received on the annual financial statement audit. The NFC provides the 

Commission with payroll services via an IAG. OFM serves as the primary contact with NFC 

regarding time card transmission and verifies all payroll disbursement costs. NFC transmits 

documentation of payroll costs directly to BPD for inclusion in the agency’s accounting records. 

During fiscal year 2008, OFM’s important accomplishments include: (1) managed the Commission’s 

Cash Management Program and collected and deposited $489,446 to the U.S. Treasury from fines 

and penalty collections, publications, reproductions, and user fees; (2) coordinated and prepared 

budget justifications and estimates for the fiscal year 2009 Congressional budget and fiscal year 2010 

baseline budget documents for OMB; (3) prepared required external reports; (4) prepared monthly 

status reports on budget matters; (5) maintained procedures for forecasting the cost of performance 

goals; (6) pursued delinquent receivables and referred applicable debts to the Treasury Department 

for collection; (7) worked with BPD staff and independent auditors regarding the Audit of the Fiscal 

Years 2007 and 2008 Financial Statements (resulting in unqualified opinions for both years); (8) 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of Financial Management 5.00 5.00 5.00

Cost: Salaries & Benefits $476,618.00 $515,755.09 $534,351.55

Non‐Personnel Expenses $140,272.89 $150,230.66 $140,292.88

Total Cost $616,890.89 $665,985.75 $674,644.43

Federal Maritime Commission

$94,450.22 $296,843.55 $283,350.66

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.70 2.20 2.10

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Administration

Office of Financial Management

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 76 

worked with the Director of Administration to finalize FMC’s 2007 MD&A and 2007 PAR and to 

initiate work on the 2008 versions of those documents; (9) worked with Office of the Director of 

Administration to complete the FAIR Act Report and post results to OMB’s MAX database; (10) 

updated the agency’s internal control forms (Form FMC-29 and Form FMC-30) in compliance with 

OMB A-123; (11) implemented the transfer of invoice processing and function from OMS; (12) 

participated in the development of the agency’s new strategic plan; (13) assisted in the preparation of 

materials requested by the Congressional Oversight Subcommittee; and (14) prepared detailed 

responses to Questions for the Record submitted by the House Committee on Appropriations, 

Subcommittee on Transportation, and Urban Development, and Related Agencies. 

 

Goals for fiscal years 2009 and 2010 include: (1) facilitating implementation of Pay.gov and GSA’s 

Smart Pay Program for agencywide and industry acceptance of electronic payments; (2) continuing to 

pursue initiatives leading to economy and efficiency in budget and financial operations; and (3) 

improving the Cash Management Program, including migrating to updated platforms for the 

Paperless Check Conversion through the Federal Reserve Bank in Cleveland. 

Office of Management Services (“OMS”) 

OMS is responsible for procuring and furnishing all services, office equipment and supplies 

necessary to support the day-to-day operations and performance goals of the Commission. To 

accomplish this responsibility, OMS administers a variety of management service functions, 

including: (1) administering Commission procurement and contracting; (2) controlling and 

administering the Commission's property utilization, maintenance, inventory and disposition 

programs; (3) planning and administering programs for improvement of the workplace environment 

and other space utilization operations for all Commission locations, including office space and 

provision of office furnishings; (4) managing the receipt, storage, distribution and inventory of all 

supplies, forms and accessories; (5) coordinating and fulfilling all printing, copying, and graphic 

service requirements; (6) coordinating the use of the building's physical facilities with respect to 

maintenance, security, and parking; (7) conducting safety inspections and coordinating the 

Commission's emergency planning and evacuation plan; and (8) directing the Commission's 

participation, development and goal-setting efforts under the Small Business Act. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 77 

During fiscal year 2008, OMS: (1) coordinated with the Small Business Administration (“SBA”) and 

OIT to use SBA’s 8(a) procurement preference program to award contracts for Technical Writing 

support to address agency FISMA concerns, and for Laserfiche maintenance service in support of the 

agency’s scanning program; (2) provided OA and OIG with detailed procurement information and 

material to address questions and concerns expressed by the House Oversight Subcommittee; (3) 

arranged for HQ building-wide Emergency Response Team (“ERT”) training through the Federal 

Protective Service (“FPS”) in connection with the building’s Occupant Emergency Plan (“OEP”) on 

threat assessments; (4) coordinated with OS and BPD to resolicit and award a new five-year contract 

for scanning services; (5) established an HQ-wide annual shredding services program; (6) hosted a 

“Meet and Greet” meeting with BPD’s Deputy Director for Procurement to discuss the agency’s 

procurement support requirements and how BPD could better assist the agency in this area; (7) 

worked with the CIO to develop a full scale FISMA support package of required support services and 

coordinated with BPD to solicit pricing information to establish an acquisition plan to acquire the 

support in the near future; (8) continued to work with FPS and the HQ building’s Security Force 

Contractor (“ASPI”) on the day-to-day guard services operations as required, and meet with the new 

FPS Operations Officer on the building security issues and concerns; (9) worked with GSA to address 

office space concerns in the FMC’s field office locations; (10) reviewed the agency’s Transit Subsidy 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Office of Management Services 4.77 5.00 5.00

Cost: Salaries & Benefits $527,455.00 $568,534.66 $598,645.96

Non‐Personnel Expenses $162,274.66 $170,753.26 $162,005.19

Total Cost $689,729.66 $739,287.92 $760,651.15

Administration

Office of Management Services

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$114,097.67 $190,162.79 $456,390.69

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.75 1.25 3.00

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 78 

Benefits program for HQ and revised the Commission Order to increase the monthly subsidy amount, 

arranged for staff to enroll in Metro’s SmarTrip program, and took over the responsibility for 

quarterly metro-check distribution to staff from the Department of Transportation; (11) coordinated 

with OFM and arranged for the smooth and orderly transfer of the invoice processing tasks and 

function to their control; and (12) worked with GSA on the installation of auto door openers for the 

9th and 10th floors at HQ to ensure handicap accessibility. 

In fiscal years 2009 and 2010, OMS’ objectives include: (1) continuing to work with GSA, FPS, and 

other tenant agencies at our HQ facilities and field locations to upgrade and/or improve the buildings’ 

security measures and emergency preparedness; (2) in conjunction with the agency’s other 

administrative offices, continuing the research methods and practices for the enhancement and 

improvement in support services; (3) continuing to work with BPD on streamlining the FMC’s 

acquisition and procurement program for better efficiency; and (4) continuing to provide advice and 

assistance regarding innovative support-service approaches to FMC activities. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 79 

FY 2010 Strategic Goals 

Factors Affecting the Achievement of Goals 

The FMC is a small agency that has established considerable in-house expertise in the legal, 

economic and organizational aspects of international liner shipping and the intermodal movement of 

ocean cargo. That expertise allows the FMC to effectively pursue its goals of maintaining a 

competitive international ocean transportation system and protecting the public from unlawful, unfair 

and deceptive practices efficiently at a very modest cost to the taxpayer and with a minimum 

regulatory burden on stakeholder industries. 

To continue to accomplish its goals, the agency will need to maintain its relevant expertise through 

the recruitment, training and retention of highly qualified attorneys, economists, industry specialists, 

and information technology experts. The importance of the recruitment and retention issue is likely 

to increase as the agency’s experienced personnel reach retirement age, and in the face of competition 

from other Federal agencies seeking to replace their retiring personnel. 

FY 2008 FY 2009 FY 2010

Actual Enacted Request

FTE: Headquarters & Field 114.54 124.02 130.50

Cost: Salaries & Benefits $14,268,961.38 $15,819,000.00 $17,770,000.00

Non‐Personnel Expenses $7,355,459.35 $6,981,000.00 $6,788,000.00

Total Cost $21,624,420.73 $22,800,000.00 $24,558,000.00

Executive Summary

FY 2010 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission

$4,557,753.75 $13,992,163.28 $6,008,082.97

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

24.54 76.48 29.48

FY 2010 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 80 

Expanding and enhancing the use of information technologies is one way that the FMC is able to 

improve its efficiencies. The increasing importance of information technologies results not only from 

its contribution to the agency’s ability to collect and process information more efficiently and 

accurately, but also because of the agency’s need to keep up with the electronic-business practices of 

the industries it regulates. Greater use of information technology also helps make many of the 

aspects of licensing, certification and information filing simpler and easier to accomplish for the 

agency’s stakeholders. IT is critical to the maintenance and effective use of various key agency 

databases. 

The security of agency databases, confidential business reports and associated documents filed with 

the FMC has received increasing attention in recent years. Enhanced and extended applications of 

information technologies helps ensure that security. 

Although the FMC primarily regulates international ocean liner transportation, it is also involved, 

through its regulation of marine terminal operators, with aspects of the intermodal movement of 

ocean cargo in the U.S. In addition, foreign-based ocean transportation intermediaries are subject to 

statutory bonding requirements under FMC jurisdiction. To the extent that there are changes in the 

regulatory treatment of international liner operations by foreign governments, as will be the case in 

Europe beginning in late 2008, the FMC will need to conduct research to determine the likely effect 

of such changes on U.S. trades. Over time, regulatory changes in other regions could also provide an 

impetus for a review of U.S. statutes or regulations on liner shipping. Consequently, FMC analyses 

of possible future proposals for statutory revisions may be required. 

Finally, in recent years the FMC has witnessed the filing of new types of agreements, especially 

marine terminal agreements, which address nontraditional issues such as traffic congestion, 

environmental protection, terminal operational efficiencies, and infrastructure funding. These 

nontraditional agreements tend to involve industries (drayage trucking and rail service), operations 

(pooling of chassis), and issues (air pollution, public health, infrastructure finance) which require the 

development by agency staff of additional information sources and areas of expertise. Not 

infrequently, these nontraditional agreements have potentially significant pricing and service 

consequences. To the extent that the filing of nontraditional agreements increases in coming years, 

which seems to be the likely trend, they will continue to weigh heavily on the agency’s limited 

resources. 

 
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e the 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 83 

agreement goes into effect. These reporting requirements, and the economic data and information 

about agreement activities they provide, allow the FMC to initially evaluate, and continue to monitor 

on an on-going basis, the conduct of the parties to VOCC and MTO agreements with limited antitrust 

immunity. 

Under the FSPA the Commission can address adverse conditions affecting U.S. carriers in the U.S. 

oceanborne trades, when such conditions do not exist for foreign carriers or others providing 

maritime or maritime-related services in the U.S. Section 9 of the Shipping Act also charges the 

Commission with regulating the rates, charges, and rules of government-owned or –controlled 

carriers to ensure that they are just and reasonable. 

Strategy for accomplishing Strategic Goal #1, Objective #1 

• Review initial agreements and amendments, including any additional information requested 

by the FMC, to determine the likelihood that the agreement parties could engage in 

substantially anticompetitive conduct with respect to transportation costs or services. 

• Review, on a regular, on-going basis, the data and information provided in standard reports 

and special reporting measures to assess the existence or likelihood of substantially anticompetitive conduct or unfavorable trade conditions. 

• Initiate meetings with representatives of the FMC’s various stakeholder industries to help 

determine whether anti-competitive behavior or unfavorable trade conditions exist in U.S. 

trades. 

• Conduct research studies on current competition issues with respect to U.S. trades.

• Actively monitor for and record the presence of all foreign-controlled carriers in U.S. trades, 

and regularly review their pricing practices. 

• Obtain information via inquiries and/or complaints about conduct or conditions that impede 

the efficient movement of cargo. 

Strategic Goal 1:

Objective 1:

Target

19.00%

Performance Measure 1: Percentage share of total U.S. international oceanborne trade moved by containership, as an

indicator of liner efficiency

Identify and take action to address substantially anticompetitive conduct or unfavorable trade conditions in U.S. trades

FY 2010

Plan

18.00%

FY 2011

Target

18.50%

FY 2012

Maintain an efficient and competitive international ocean transportation system
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 84 

• Assure competitive conditions in the U.S. foreign oceanborne trades by working with 

agreement parties on an informal basis to negotiate changes in agreements that raise 

competitive concerns. 

• Preserve competition in ocean transportation by seeking appropriate injunctive relief under 

section 6 of the Shipping Act for agreements likely, by a reduction in competition, to produce 

an unreasonable reduction in transportation service or an unreasonable increase in 

transportation cost. 

• Address disruptions in the ocean transportation marketplace by investigating carrier and 

marine terminal operator violations of the Shipping Act. 

• Take action under the FSPA to address adverse conditions affecting U.S. carriers in the U.S. 

oceanborne trades, when such conditions do not exist for foreign carriers or others providing 

maritime or maritime-related services in the U.S. 

• Make rules and regulations affecting shipping in the foreign trade not in conflict with law in 

order to adjust or meet general or special conditions unfavorable to shipping in the foreign 

trade. 

• Ensure timely action on formal proceedings undertaken to protect competition. 

• Maintain and keep up-to-date an electronic library, accessible from the FMC’s website, of 

agreement documents to allow interested parties to easily search for and download those 

documents. 

 
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public from u

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1,914.83

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5,334,588

36,347.41

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8.33

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Fiscal Year 201

 

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s taken under t

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ssfully resolved

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s
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 87 

Strategy for accomplishing Strategic Goal #2, Objective #1 

• Gather intelligence through visible and accessible presence in the regulated community in 

order to identify unlicensed OTIs and other violations. 

• Monitor advertising in print, television, radio and online to identify illegal practices. 

• Gather information related to potential unlicensed OTIs. 

• Receive and respond to complaints regarding egregious violations and practices. 

• Identify subjects who offer, advertise or provide passage on vessels having berths or 

staterooms to accommodate 50 or more passengers and have not met FMC financial 

requirements. 

• Audit ocean carriers and OTIs based upon information received and on a random basis. 

• Exchange information and liaise with other Federal, state and local investigative and 

regulatory agencies and bureaus. 

• Review tariffs for accessibility and accuracy. 

• Investigate allegations of unlawful, unfair and deceptive practices. 

• Efficiently prosecute alleged violations of the Shipping Act. 

• Reach voluntary agreement with alleged violators to cease unlawful, unfair and deceptive 

practices. 

• Respond to inquiries regarding complaint history of transportation providers and advise 

consumers of means to protect themselves. 

Objective 2: 

Prevent public harm through licensing and financial responsibility requirements.

 The FMC licenses and regulates OTIs, including ocean freight forwarders and NVOCCs, and 

ensures that OTIs have sufficient financial responsibility. As well, the FMC issues certificates to 

owners and operators of PVOs that have evidenced financial responsibility to satisfy liability incurred 

for nonperformance of voyages and for death or injury to passengers and other persons. 
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 88 

Strategy for accomplishing Strategic Goal #2, Objective #2 

• License OTIs with the requisite character, experience and financial responsibility. 

• Issue PVO certificates to cruise line operators that have met regulatory requirements for proof 

of financial responsibility. 

• Monitor PVO unearned passenger revenue reports and conduct on-site review of PVOs’ UPR 

receipts. 

• Review and update OTI bonds and coverage amounts.

OBJECTIVE 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements through 

education and outreach.

Protection of the public requires knowledge on the part of regulated parties and users of their services 

as to FMC regulatory requirements. As well, the public needs to be well informed of the services 

offered by the FMC and the remedies available in the event of noncompliance, injury or unresolved 

disputes. 

Strategic Goal 2:

Objective 2:

Plan

55%

Target

57.00%

Target

59.00%

FY 2010 FY 2011 FY 2012

Performance Measure 1: Percentage of decisions completed on OTI license applications rendered within 90 business days,

facilitating lawful operation of OTIs with the appropriate character requirements

Prevent public harm through licensing and financial responsibility requirements

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 89 

Strategy for accomplishing Strategic Goal #2, Objective #3 

• Maintain an accessible presence in local regulated communities. 

• Proactively educate regulated parties of regulatory requirements through educational 

presentations. 

• Maintain VOCC and NVOCC tariff location information on the agency website. 

• Emphasize OTI requirements to new licensees by letter. 

• Promote awareness of FMC licensing and financial responsibility requirements by conference 

participation and seminars. 

• Make available to the public key documents in all Commission formal proceedings through 

the Commission website. 

• Create and produce brochures to educate industry and public about FMC requirements and 

services. 

. 

• Promote general awareness of resources available through the Commission’s website. 

• Continuously expand and update information available to the public through the website, 

including the list of licensed OTIs. 

 

Strategic Goal 2:

Objective 3:

Plan

70.00%

Target

75.00%

Target

80.00%

FY 2010 FY 2011 FY 2012

Performance Measure 1: Percentage of attendees at agency‐sponsored outreach presentations that rate the program as

"Useful" in their compliance efforts

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 90 

OBJECTIVE 4: 

Impartially resolve international shipping disputes through alternative dispute resolution and 

adjudication. 

The Commission has several means by which the public or entities in the shipping industry may seek 

resolution of disputes or complaints. The Commission provides ombuds services to assist parties in 

resolving complaints informally through its Office of Consumer Affairs and Dispute Resolution and 

its ARs. Formal complaints of alleged Shipping Act violations may be filed for adjudication by an 

ALJ. Parties may seek the assistance of a trained neutral at any stage in a formal proceeding or in the 

first instance for resolution using ADR processes. 

Strategy for accomplishing Strategic Goal #2, Objective #4 

• Provide ombuds services to informally resolve passenger vessel, household goods and other 

shipper complaints. 

• Encourage the use of and provide ADR services to parties who request the services of a 

trained neutral in resolving disputes and shipping problems that affect international ocean 

shipping. 

• Adjudicate disputes under the jurisdiction of the agency before an ALJ, with the possibility of 

appeal to the Commission. 

• Timely conduct Commission proceedings so that litigants and industry can adjust behavior 

accordingly. 

 

Strategic Goal 2:

Objective 4:

Plan

550

Target

625

Target

700

FY 2010 FY 2011 FY 2012

Performance Measure 1: Number of cases opened and closed each fiscal year using ombuds or ADR services assisting

consumers to recover goods or funds

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
S

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Fiscal Year 201

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1,10

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Funding

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1,481,5

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Fiscal Year 201

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Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 93 

career transition, retirement, employee development and training, personnel security, and 

equal employment opportunity. 

• Promote economy and efficiency by detecting waste, fraud and abuse in the agency=s 

programs via auditing agency operations. 

• Ensure program compliance with various rules and regulations regarding such areas as forms 

clearance, Paperwork Reduction, Small Business Paperwork Reduction Act, and other 

Federally required reports and submissions. 

Objective Number 2: 

Allocate technological, financial and human resources efficiently and effectively toward support of 

agency programs. 

Strategy for accomplishing Strategic Goal #3, Objective #2 

• Execute financial management policies and programs, manage agency appropriations, 

administer internal control systems for agency funds, travel and cash management, and 

coordinate with contractors who provide accounting and payroll services. 

• Monitor performance to ensure the agency’s program operations are effectively supported via 

telecommunications, procurement of administrative goods and services, property 

management, space, printing and copying, mail and records services, facilities and equipment 

maintenance, and transportation. 

• Provide guidance to staff regarding administrative matters, including procurement, personnel 

and contracting issues. 

• Utilize technology and IT expertise to streamline the agency’s work processes and enhance 

the productivity of the workforce to support the needs of the Commission. 

Strategic Goal 3:

Objetive 2:

Plan

60.00%

Target

65.00%

Target

70.00%

FY 2010 FY 2011 FY 2012

Performance Measure 2: Percentage of all recruitment actions for GS positions are completed within OPM's 45 day hiring

model and within 30 days for SES positions

Allocate technological, financial and human resources efficiently and effectively toward support of agency programs

Advance agency objectives through high‐performance leadership and efficient stewardship of resources
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 94 

Appendix A 

Workload Statistics: 

Office of the Secretary

Office of the Secretary

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

On Hand 

09/30/10

Commission Docketed 

Proceedings (Formal, 

Special & Informal) 8 22 20 10 25 25 10 25 25 10

Commission Non-Docketed 

Proceedings 0 10 1 5 6 0 5 5 0

Service Contract Correction 

Applications 0 22 0 2 2 0 2 2 0

Non-Docketed Informal 

Complaints 196 568 631 133 770 740 163 750 740 173

Docketed Informal 

Complaints 20 4 4 20 6 10 16 10 12 14

Agenda Items 0 310 310 0 320 320 0 150 150 0

Pages of Minutes 0 335 335 0 340 340 0 170 170 0

Federal Register Notices 0 247 247 0 300 300 0 300 300 0

FOIA Requests 4 10 2 12 10 12 10 20 20 10

Certifications 0 23 23 0 24 24 0 10 10 0

* Statistics for "Special Dockets" have been eliminated from this table. Information for this workload item will appear in the Office of 

Consumer Affairs and Dispute Resolution Services narrative.

Formal Proceedings Program

Statistical Workload Summary *

Workload Units FY 2008 Actual FY 2009 Estimate FY 2010 Estimate
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 95 

Office of the General Counsel

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

On Hand 

09/30/10

Litigation 2 20 4 2 2 4 2 3 3

Legislation 0 80 80 0 90 90 0 100 100 0

Legal Opinions, Case 

Summaries, Decisions and 

Final Orders 0 70 60 10 80 80 10 90 90 10

Sec. 19/sec. 13 (b)(5) FSPA 

Proceedings 1 00 1 2 1 2 1 1 2

International Affairs Reports, 

Policy Papers, Briefings, 

Controlled Carrier 

Recommendations 0 30 30 0 35 35 0 40 40 0

Speeches, Articles, 

Presentations 0 15 15 0 20 20 0 25 25 0

Interagency & International 

Group Participation 0 30 30 0 35 35 0 40 40 0

Response to Requests for 

Information (Oral & Written) 0 275 275 0 280 280 0 285 285 0

Formal Proceedings Program

Office of the General Counsel

Statistical Workload Summary

Workload Units FY 2008 Actual FY 2009 Estimate FY 2010 Estimate
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 96 

Office of the Administrative Law Judges

Workload 

Units

On Hand 

09/30/07 Receipts Output

On Hand 

9/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

On Hand 

09/30/10

Formal 

Proceedings 18 5 7 16 6 9 13 8 9 12

Special 

Proceedings 0 00 0 0 0 0 0 0 0

Informal 

Proceedings 0 00 0 0 0 0 0 0 0

Formal Proceedings Program

Office of the Administrative Law Judges

Statistical Workload Summary

FY 2008 Actual FY 2009 Estimate FY 2010 Estimate
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 97 

Bureau of Trade Analysis

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

On Hand 

09/30/10

Agreements Filed: 3 183 176 10 148 152 6 141 140 7

Rulemakings, 

Proceedings, 

Petitions,Demand 

Orders 0 00 0 11 0 10 1

Waiver Requests 0 55 0 55 0 55 0

Bureau Reports * 0 104 104 0 104 104 0 104 104 0

Agreement Reports 0 00

 Minutes 15 1,016 1,016 15 1,085 1,085 15 1,130 1,130 15

 Monitoring 0 199 199 0 225 225 0 250 250 0

 VSCG 5 197 197 5 205 205 5 215 215 5

Service Contracts 0 44,438 44,438 0 50,000 50,000 0 52,000 52,000 0

Contract Amds 0 294,880 294,880 0 275,000 275,000 0 280,000 280,000 0

Special Permissions 1 77 1 89 1 89 0

NVOCC Service 0 00

Arrangements 0 990 990 0 1,100 1,100 0 1,200 1,200 0

Arrangement Amds. 0 1,434 1,434 0 1,500 1,500 0 1,700 1,700 0

Informal Inquiries ** 0 2,559 2,559 0 2,800 2,800 0 2,900 2,900 0

* Bureau Reports - include weekly reports to Commissioners on agreements filed and weekly

Federal Register Notice reports.

** These numbers are higher than in previous years due to a change in the tracking system for

informal inquiries and the types of inquiries included in this figure.

Operations Program

Bureau of Trade Analysis

Statistical Workload Summary

Workload Units FY 2008 Actual FY 2009 Estimate FY 2010 Estimate
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 98 

Bureau of Certification and Licensing

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

On Hand 

09/30/10

OTI Applications 

New *

264 502 542 224 532 575 181 564 610 135

OTI Applications 

Amended *

79 236 212 103 250 255 98 265 260 103

OTI License 

Terminations ** 0 227 227 0 241 241 0 255 255 0

Passenger Vessel 

Applications 

(Performance) 2 29 30 1 30 30 1 30 30 1

Passenger Vessel 

Applications 

(Casualty) 18 31 37 12 30 30 12 30 30 12

* OTI application output figures primarily include the number of (1) licenses issued, and (2) approvals

for license and other changes not requiring the issuance of a license.

** Revoked or surrendered licenses not subsequently re-issued.

Operations Program

Bureau of Certification and Licensing 

Statistical Workload Summary

Workload Units FY 2008 Actual FY 2009 Estimate FY 2010 Estimate
Federal Maritime Commission

Fiscal Year 2010 Budget Estimates submitted to the Appropriations Subcommittees  Page 99 

Bureau of Enforcement

On Hand 

09/30/07 Receipts Output

On Hand 

09/30/08 Receipts Output

On Hand 

09/30/09 Receipts Output

*On Hand 

09/30/10

Audits and Monitoring 

Activities* 6 117 116 7 115 115 7 120 120 7

OTI Applicant and 

License Checks 0 605 605 0 615 615 0 625 625 0

Formal Proceedings 7 42 9 5 5 9 6 6 9

Civil Penalty Cases 18 21 14 25 20 20 25 25 25 25

Staff Legal Advice 78 77 62 93 65 75 83 70 75 78

* Category of Investigations changed to Audits and Monitoring Activities. Audits and monitoring activity

separated from investigations. Investigations are included in other categories in the Statistical

Workload Summary.

Operations Program

Bureau of Enforcement

Statistical Workload Summary

Workload Units FY 2008 Actual FY 2009 Estimate FY 2010 Estimate