15

ANNUAL 

of 

EvAerat t

Qtomm

FISCAL YEAR END

an

TRANSITION QUARTER JULY 1 

FEDERAL MARITIME CO

WASHINGTON DC

SEPTEMBER 30 1

KARL E BAKKE CHAIRM

CLARENCE MORSE VICE 

ASHTON C BARRETT M

BOB CASEY MEMBER

JAMES V DAY MEMBER

airs of tip Etpatnnan

beral aaritime 

IlEasbingtntt I

O

TO THE SENATE AND HOUSE OF REP

Pursuant to section 10e2

No 7 of 1961 and section 208 

Act 1936 as amended I respe

Annual Report of the Federal M

report includes Fiscal Year 19

quarter July 1 1976 through S
SCOPE OF AUTHORITY AND BASIC 

HIGHLIGHTS 

U S OCEANBORNE COMMERCE IN 

Intermodalism 

Containerization 

Trends in Trade by Geo

Freight Rates and Surch

Terminal Growth 

SURVEILLANCECOMPLIANCEENFO

Agreements Review 

Tariff Review 

Foreign Commerce 

Domestic Commerce 

Dual Rate Contract Syst

Terminals 

Ocean Freight Forwarder

Passenger Vessel Financ

Water Pollution Financi

Informal Complaints 

Enforcement Activities 

SPECIAL STUDIES AND PROJECTS 

FORMAL PROCEEDINGS 

FINAL DECISIONS OF THE COMM

RULEMAKING 

ACTION IN THE COURTS 

LEGISLATIVE DEVELOPMENT 

Significant Legislation 

Proposed Legislation 

Other Legislative Activ

ADMINISTRATION 

Statement of Appropriat

Year Ended June 30 1

Ended September 30 1

APPENDIX A

Statistical Abstract of 

APPENDIX B

Organization Chart 
ScQPEOF AUTHORITY AND 

The Federal Maritime Commission was 

pendent agency by Reorganization Plan N

1961 Its basic regulatory authorities 

Act 1916 Merchant Marine Act 1920 In

1933 Merchant Marine Act 1936 Public 

1966 and Public Law 91 224 approved A

The Commission is composed of five 

the President with the advice and conse

missioners are appointed for 5year term

of the Commissioners being appointed fro

The President designates one of the Com

man who also serves as the chief execu

of the agency

The statutory authorities and fun

the following principal areas 1 Reg

practices and agreements of common car

persons engaged in the foreign commerce 

ceptance rejection or disapproval of 

engaged in the foreign commerce of the 

of rates fares charges classificatio

practices of common carriers by water in 

of the United States 4 licensing ind

warders 5 investigation of discrimin

fications and practices of common carr

and domestic offshore commerce termina

warders 6issuance of certificates ev

of vessel owners or charterers of Ameri

accommodations for fifty or more passen

at United States ports to pay judgments 

or to indemnify passengers holding tick

of voyages or cruises 7 issuance of 

responsibility of vessel owners charte

vessel over three hundred gross tons u

United States to meet the liability to 

charge of oil and hazardous substances 

issuing orders making rules and regula

common carriers by water terminal ope

other persons subject to the Commissios

1 Executive Order 11548 dated July 

Federal Maritime Commission the respon

to Public Law 91 224 Water Quality 

issue regulations concerning requiremen

Commission of proof of financial respo

meet the liability to the United States 

1
The Commission sheadqua

Washington DC 20573 Ther

Atlantic District

Pacific District

Gulf District

Puerto Rico District
ENFORCEMENT PROGRAM

An aggressive enforcement program 

3

REBATING AND OTHER MALPRACTICES

In April 1976 a major carrier in

disclosure of its rebating practices 

the FMC obtained the names of hundreds 

rebates and has opened separate cases 

shippers A large number of these sh

disclosed receiving rebates from othe

investigative cases have been opened 

It is now evident that these pra

it is necessary for the Commission to 

the entire scope while continuing to 

vidual investigations as evidence turn

During the period a comprehensiv

policing systems currently used by th

reporting violations under the terms 

The Commission sGeneral Order No 9 

contain a provision for the expulsion 

the terms and conditions of their agr

the strength and weaknesses of these 

which the self policing system might 

The Commission also initiated a 

an indepth survey of the matter of m

HIGHLIGTS

During the year the shipping indu

of illegal rebates and other malpracti

severe rate competition from non confe

as cross traders in the US liner tra

ment of containerization intermodalis

improvements The Commission has atte

these conditions and the problems inhe

the Commission undertook several initia

period in the areas of enforcement S

in resolving problems attendant to int

In addition progress has been m

reform In this connection various 

Commission srules of practice and pro

increase the effectiveness of the hea

reduce delay progress has been made 

to improve the use of economic analys

an assessment of a means of improving 

the Commission was undertaken

The highlights of the activities 

below

226255 0 76 2
malpractices was initiated 

imposed the heaviest malpra

197 000

In May 1976 Chairman 

Enforcement In announcing 

Mr Bakke impressed upon the 

ance of facing head on the m

The Bureau is under a m

effectively with these prob

of payment of illegal rebate

flag as well es American fla

foreign trades

Recent disclosures alre

have paid illegal rebates of 

evidence of varying degrees 

over a hundred US companie

rebates

The Bureau of Enforceme

program of investigation of 

history of the Federal Marit

allow the Bureau intends to 

foreign trades of the United 

and forwarders handling ship

EX PARTE NO 261

On January 30 1976 th

a decision in Ex Parte No 2

Joint Rates and Through Rout

between Points in the United 

This latest decision in a ru

on July 31 1969 formalized 

the Interstate Commerce Com

the inland US portion of j

Subsequent to the decision o

Federal Maritime Commission 

had been made under Section 

against the prior assertion 

regulatory jurisdiction over 

rate Ex Parte No 261 decid

by the Interstate Commerce C

factory regulatory environme

in the furtherance of the int

that the Congress must event

appropriate regulatory form 

by developing transport tech

LENINGRAD AGREEMENT ON FREIG

It has been the traditio
carriers to band together in conferences 

diminish competition and establish a pa

reasonable profits In 1916 Congress fo

steamship practices carried on by indepe

States foreign commerce continued it wo

able prejudice against the small shippe

passed the Shipping Act of 1916 which a

to the Federal Maritime Commission to rev

carriers and approve only those that wer

discriminatory or unfair In its regula

has approved conference agreements in mo

trades

Historically these agreements have 

and nonconference carriers to exist side 

1970 s however a new element has appea

to upset this traditional balance This 

number of Communist Bloc merchant ships 

new trades the Soviets in particular ha

at a level that will attract sufficient 

currency earnings The Commission in its 

has found that the Soviets in each major 

patterns which enable them to achieve th

by generally operating outside the frame

have caused an uneasiness on the part of 

sources indicate that this situation has 

operators to resort to a variety of tact

sufficient cargoes for their own vessels

This competitive situation continue

Pacific with non Soviet conference carr

practices as necessary to attract cargo 

that were frequently alleged to be below 

non Soviet carriers and Soviet carriers 

levels merely reflected the effective n

into account alleged rebates or other m

The confrontation appeared to be out of 

the Commission to act In the course of 

of the major conferencecarriers in the 

owners meeting in Japan in April 1976 

particularly rebates had been prolifera

for rededication to a policy of corporat

and procedures for effective conference 

and the prompt good faith steps taken s

on the part of Soviet carriers to renewe

membership in the US liner trades

At our meeting in July 1976 in Le

of Merchant Marine agreement was reache

govern participation of Soviet common c

cargo trades The Federal Maritime Com

of Merchant Marine mutually agreed to u

respective agencies to achieve the follow

1 All ocean cargo rates contained 

5
now engaged as independe

States shall as promptl

level no less than that 

commodity of any other in

2 Thereafter prompt a

to maintain the foregoing 

of Soviet carriers engage

of the United States and 

commodity contained in th

in those trades

3 Discussion shall pro

terms and conditions for 

in the North Atlantic lin

particular attention to 

entials for Soviet carrie

in the services offered 

in those trades such rat

related to the degree of 

promptly eliminated as th

able degree of comparab

4 Discussions shall pro

terms and conditions for 

in the inbound and outbou

trades of the United Stat

now conference members w

of temporary rate differe

in paragraph 3 above

The parties hereto have a

must be closer working relatio

concerning exchange of factual 

that the necessary steps shall 

This Memorandum Agreement 

mercial solution to what is es

the months from July to Septem

formed to establish working ar

to their attention rates that 

force took the following steps 

meaningful data

1 Each Soviet tariff wa

2 Each trade area of ea

3 A list of every carri

prepared

4 Each tariff from this 

determine which were 

5 A list of meaningful 

6 Rate comparisions wer

7 Assistance from carri

commodities requiring 
8 Each Soviet rate action taken 

was recorded

By the end of September 1976 the

the Soviets were acting in good faith 

ating conference membership in certain 

filings were being made to bring thei

At a meeting on September 20 1976 h

from Morflot America we were advised 

actions would be taken as a result of 

REGULATORY REFORM

The Commission had made diligent 

its regulatory processes A Committee 

has been operational for quite some ti

committee

procedural

that

regulations

maintains a continuous 

As a result of this committee s

have been made in the Commission sru

to reduce the length of evidentiary h

evidentiary hearings To this end r

eliminate ambiguities where they have 

clarify the authority of the presiding 

establish alternative remedied proced

have fostered the narrowing of issues 

the Commission to file prehearing stat

lations

The Commission has also amended 

in Docket No 76 27 Miscellaneous Am

and Procedure to provide for a spec

rate proceedings to allow completion 

the record no later than four months 

effective date of the rate changes a

Administrative Law Judge to delineate 

instituted by order of the Commission 

or interpreting the order This latte

reduce delay from parties asking the 

The Commission is making an effo

analysis in its decision making The 

and continues to be pieced on the data 

improve our use of economic analysis 

and sufficiency of the data available 

made to this end during the report pe

In Docket No 7315 von vessel 

Balance Sheet and Income Statements R

rules and regulations currently in e

requirements upon Non Vessel Operating 

the

ability

domestic

to judge

trades

the financial

This regulation

condit

which they sustain and the reasonable

for their service

7
US OC N1 

Containerization of car

onflat car and containershi

forceful impetus and as a 

sideration in ocean shipping 

Container services are offere

when two US carriers filed 

intermodalism has grown to t

modal tariffs and 11 intermo

account of more than 35 ocea

In decades to come our 

expanded to accommodate our 

modal technology is availabl

existing physical transport 

regulation of international 

plementation of more efficie

some ten years of discussion 

An important point is t

transportation agency which 

dominant part of most interm

tation Consequently the F

rule or regulation which af

concerned that progress in i

inaction There is consensu

although it is not agreed wh

agency or a combination of 

The lack of intermodal 

sion of containerized US e

routes No effective regula

the predatory and disruptive 

cargoes by carriers operating 

petition has increased the v

portation network and our po

substantial amount of US m

railroads and ports several 

direct intermodal service wi

US cities to European ports 

radical departure from the m

is a port served by the ocea

TARIFFS

In fiscal year 1975 29 

modal authority and six confe
the Commission During the report per

ments with intermodal authority increase

conference and rate agreement intermoda

six to 13 The intermodal tariffs are 

Continent Mediterranean Japan Korea 

Only the two inbound Far East trad

rates to US East Coast ports and the 

West Coast ports thence overland to Eas

intermodal conference or rate agreement 

trade to and from the United Kingdom an

service covered thereby is to and from 

There is no conference or rate agr

and in effect with the Commission which 

inland points

AGREEMENTS

The Commission approved the Latin 

Conference Agreement No 86605 on May 

innovation and its provisions have sinc

to obtain approval of intermodal autho

establish for itself a through movement 

bill of lading is required first to pre

Only in the event the conference is una

to establish a through movement rate r

the proposing line shall the line be f

conference at any time has the power an

ment provisions and thereafter to requ

member line to the conference action 

conference intermodal rates to be equa

ber line which are being cancelled

LASHSEABEE SERVICES

LighterAboard Ship LASH operato

vices between US South Atlantic and G

between the Pacific Coast and the Far E

LASH encompasses the use of contai

envisages a complement of barges or ligh

ocean ports on board a mothership The 

ocean ports served by the mothership an

ports on inland waterway systems here a

types of vessels require regular berths 

anchorages while insuring that cargo c

pective of whether the facility is adeq

tions This system allows shippers to 

cargo has been loaded since each barge 

as such permits the issuance of on boa

cargo is placed in the barges

9
CONT

CONTAINER INTERCHANGE AGREEMEN

In a continuing effort to 

to a minimum carriers entered 

agreements during the reporting 

number of such agreements to tw

approved authorizing the partie

chassis andor related equipm

ments have been entered into w

containers and related equipme

charge A total of six such a

TARIFFS

Containerization has enab

shipments by means of more than 

sea shipping routes have becom

rates having much greater geog

toport rates They include p

house rates House means a 

or inland beyond the port of d

SPACE CHARTERING

The Japanese carriers file

tainership for operation under 

ment in the trade between Japan 

Prior thereto the agreement a

of seven containerships pursua

of space chartering arrangeme

for accounting for the spaces 

each vessel is available to ea

reduce the overall cost of ope

participant and benefit the sh

their cargoes The Japanese li

between Japan and the West Coa

Coast

EQUIPMENT INTERCHANGE AND LEAS

The membership of the Far 

Agreement No 10032 increased 

case of the leasing of empty c

formation on the per diem charg

request
On March 6 1976 the Commissio

Nippon Yusen Kaisha NYK and Matson 

agreement covers an arrangement whe

nate all NYK Inventory Equipment Co

nications and supporting services in 

Coast operations The ability of an 

control and identify the status of c

is directly related to economical an

operations reliable inventory cont

This is an example of the new and in

are frequently being entered into as 

become more prevalent

UNITED STATESCANADIAN FEEDER SERVIC

A carrier that has maintained 

and Canadian East Coast ports filed 

sion for approval seeking authority 

a similar feedership service on the 

new operation are to include San Di

San Francisco Oakland Portland Se

Columbia It is planned that opera

year with two containerships and ult

purpose replacement ships each hav

capacity for the transshipment of 

companies

CONTAINER LEASING AVV BARGE INTERCHA

Another source of containers is 

carriers by water who own and lease 

shippers For a fee generally on 

containers to supplement its own su

involved the common carrier is su

transactions are not subject to Com

Because of the limited number 

tion relative to container vessels 

containers only two new barge inter

with and approved by the Commission 

agreement in effect

IUTERNATIONAL COUNCIL OF CONTAINERS

The International Council of C

bership consists of common carriers 

tainer vessels in the US foreign 

under a discussion agreement is co

industry planning with respect to a 

mental controls intermodal regula

226 255 0 76 3

1
energy requirements monetary 

and other governmental program

The minutes and reports filed 

this agreement are among the 

any minutes filed

TRENDS IN 

AUSTRALIA

Frozen meat continues to 

to the United States The Au

ocean rate on meat through ne

ences thereof and requires tha

ports be at the same rate irr

handling cargo and the econom

regions of Australia

The AMB is a governmental 

its authority to determine the 

export or sell meat for expo

of increasing the quantity of 

When recent shipping cost

behalf of shippers in the trad

in the demise of the northboun

ference Specifically during 

the AustraliaUS East Coast 

135 percent increase due to t

the AMB s intervention The A

pay the new rate and in the a

individually to carry meat at 

lines accepted the AMB s offer 

days notice Subsequently o

member line resigned therefrom 

terminated the conference agre

lines have independent tariffs 

on frozen meat acceptable to t

The Commission approved A

10250 Abetween carriers in t

These agreements authorized pr

to Refrigerated Express Line f

west Australian ports destined 

dination of railings the Aus

gerated Express Line as the ca

service for the carriage of m

Coast ports and provided that 

Container Transport Australia 

Atlantraffik Express Services 

Line for any shortfall in carg

concerted activities agreed to 

conference agreement will agai
NORTH ATLANTIC

The Commission has under considera

tal North Atlantic Westbound Conference 

nental Freight Conference to modify the

for two classes of membership for the p

tier rate system based on differences i

istics of the two classes of membership 

set up standards for conference member

Under these standards one class m

the other class members rates the firs

the otherclass srates after the first 

class as a member

USEUROPE

A number of conferences in the US

and received Commission approval of sp

uniform rules and practices in Europe r

and positioning of containers and relat

of the carrier This authority is in a

these conferences to establish intermod

to bring these activities under the co

policing systems Without such contro

the conference system ie to regulat

member lines and to maintain stable rat

In fact without control over inland p

porttoport practices becomes meaning

SHIPPERS COUNCILS

Shippers councils exist in almos

foreign commerce of the United States 

wherein shippers collectively negotiat

rates and other matters of mutual inter

riers serving various trades Conseq

considered inasmuch as they are direct

determining ocean freight rates

In Australia Britain Japan and 

powerful institutions of long standing 

Shippers Council is derived by governm

ocean carriers in the foreign trade of 

tiate with it rates on all commodities 

Shippers Council has sought anree ient 

conferences to amend the conferences 

to clarify and reduce the amount of dam

where a shipper has breached the terms 

Indian trades are under constant press

Council concerning rate levels

13
Shippers councils do not 

however shippers councils wer

Institute Shipper sDialogue he

American Importer sAssociation 

ties of forming such a national 

regulatory control over the act

must consider and carefully we

activities of carriers and conf

FREIGHT R

IN F

GENERAL RATE INCREASES

Most of the trade routes i

States were exposed to the ins

rate

authority

increase

over

during

freight

the

rates

report

is 

general increases do not exceed 

addition conferences and carri

unexpected and added expenses c

in the form of temporary surcha

tation services are exposed to 

sures as those generally preva

worldwide basis

SURCHARGES

During the reporting perio

various forms of surcharges tha

published by both conferences a

a genuine need for additional r

of the right of carriers and co

goes moving to or from specific 

unforeseen situations or condit

vessel operating costs Howev

levels in excess of the need to 

carriers are exposed by the inv

the past that the majority of t

difficulties port congestion 

and increases in bunker prices

The Commission is charged 

maintaining close surveillance 

warranted by factual economic c

surcharges resulting from cong

detention has been quite succe

been reduced or cancelled and o

as their need was valid
During the past several years th

bility in world currencies Due to 

found it necessary to file currency 

This action became necessary when the 

for freight payments resulted in fina

money market At the present time 

cancelled or incorporated into the t

sion surveillance in this activity 

that the carriers were not overly co

surcharges

The behavior of bunker fuel pric

the majority of the carriers and con

as a normal part of their operating 

War risk surcharges also receive 

hostilities and warlike activities f

world carriers and conferences pub

on increases in insurance rates and 

received valuable assistance from th

Department of Commerce in furnishing 

mination as to justification for the 

ever costs are reduced the Commissi

conference seeking a reduction or c

PROPOSED RULEMAKING SUBMISSION OF RE

Despite the general effectivenes

Commission has determined that in vie

a need exists for the promulgation o

tain revenue and cost data by confer

and independent carriers operating i

States Accordingly a Notice of Pr

that would require common carriers b

indicate the circumstances of their 

changing circumstances into justifica

being sought in the form of general 

ments from carriers and other intere

review

FREIGHT RATE DISPARITIES

Rate disparities both recipro

a matter of Commission concern Do

ocean freight rates in the North Atl

adjudication of the issues in this p

with established criteria and a form

permit us to effectively deal with f

sion found that the burden of justify

rate shifted to the carrierconferen

export rate and the ability of the 

15
formula applies where the US 

which applies on the same com

direction of the same trade o

market for which our exporter 

Other formal proceeding

Two dockets 73 28 and 73 29 

the Far East trade Recently 

ceedings on the condition tha

the date of the Order the pro

been implemented by the respo

The Commission sexperie

the institution of a new prog

ties The new program will f

a higher export rate for a pa

exporters ability to market 

determine whether sufficiently 

involved to warrant Commissio

conference publishing the hig

to justify same based upon va

The program will utilize 

available to the Commission o

data at the initial stages of 

greatly assist in identifying 

sufficiently similar and the 

The Commission will inc

of a uniform commodity classi

basis While both government 

toward uniform commodity clas

efforts to the extent feasibl

greatly in the elimination of 

Our disparity program will als

ment sources to help us ident

American exporter

Aside from providing the 

ling breakbulk and bulk cargo

tal point of landsea interfac

which the inherent technologic

dalism over traditional shipp

point it appears that the fir

modernization to accommodate 

systems is about completed 

construction of new berths and 

tainer cranes and supporting 

mobile cranes and assembly are

ized berths for loading and u
interchange facilities either have bee

being constructed at virtually every m

It now appears that some ports ar

capacity in terms of container facilit

Commission approved an agreement betwe

tors to coordinate the future developm

deemphasize further construction of c

and focus their combined efforts on th

ties for other types of cargo

The involvement of our vast inlan

foreign commerce continues to grow due 

and miniship systems Not only is car

coastal ports and inland destinations 

American heartland but the impetus to

exportoriented industry is growing as 

direct ocean transportation

17
SURVFIIIANCFCOM

AGREEM

Section 15 of the Shipping 

approval shall not be permitted 

fails to provide certain terms a

readmission to conference memb

without penalty It further pro

disapprove any such agreement a

ing of inadequate policing of th

failure to adopt and maintain re

and fairly hearing shippers req

also clearly indicates criteria 

approved or permitted continued 

denying approval is an agreemen

Act

In Docket No 75 56 the Co

for Reconsideration on February 

American working Arrangement et 

are price fixing agreements and 

antitrust laws As such these 

public interest unless they are 

transportation need necessary t

or in furtherance of a valid reg

Act that is justified FMC

Amerika Linien et al Svensk

burden of adducing the evidence 

is on the proponents of the agre

data submitted by persons other 

data of which the Commissioners 

evidence does not include the ar

opinions of the proponents of th

of this order the Commission has 

substantive justification in co

agreements Guidelines for such 

the case itself and the precede

Space Enclosures Inc v FMC 

577 DC Cir 1969

During the reporting perio

processed under Section 15 46 d

percent increase over agreements 

statistical table of receipts an

as Appendix A

The surveillance of approv

of the basic agreement and mod

mine that it continues to meet t

applicable Commission sGeneral 

18 23 and 24 and is in conform

Court decisions If the agreem
with the above criteria corresponde

agreement parties in an attempt to 

bring it into conformity Occasion

comply only after the implementation 

The Commission is the recipie

to agreements which are analyzed to 

are being committed by the parties 

engaged in activities beyond the sc

to assess the impact of their activ

shippingReports publicfiled by parties to S

MINUTES OF MEETINGS

It is the responsibility of t

parties to Section 15 conference an

all times complying with the Shippi

approved agreement In order to di

Commission must be fully and curren

which conference operations are bei

requires that meaningful and timely 

furnished it As more discussion a

its orders approving same the Com

that minutes of meetings among the 

exchanged among the parties be filed 

During the reporting period 29

ratemaking and discussion agreement

reviewed by the staff 678 during t

SHIPPERS REQUESTS AND COMPLAINTS

The phrase shippers request

nication requesting a change in ta

objecting to rate increases or othe

erroneous billings due to an incor

weight or measurement of cargo or 

The Commission sGeneral Order 13 

file quarterly reports of shippers 

and to advise the disposition made 

During the year July 1975 thr

received and acted upon 6551 requ

granted 3708 in whole or in part 

total of 1261 requests and compla

For the quarter July 1976 thr

received and acted upon 1857 requ

were granted in whole or in part w

pending decision

The grand totals for the 15m

October 1976 are as follows 840

4654 were granted in whole or in 

1564 are pending

226255 O 76 4
During the period being 

requests and complaints were f

by the staff 88 during the tr

SELF POLICING

Most self policing repo

received from those conference

policing system In the Far E

Services Inc FCS is the n

self policing services for fou

Japan ie the Trans Pacific 

and the JapanKorea Atlantic 

from the Hong KongTaiwan area 

Conference Hong Kong and the 

addition FCS conducts self po

10107 and 10108 which are agre

Kong conferences named above a

in those trades Outbound bo

the Pacific Westbound Conferen

FCS as their neutral body It 

policing reports submitted by 

show much improved self policin

The Associated North Atl

under Agreement No 9978 police

member conferences Thereunde

his duly authorized represent

self policing activities based 

investigations as he considers 

self policing and investigative 

conferences the agreement aut

to perform cargo inspection se

that the contents of a shipmen

of lading and that the proper 

The agreement further provides 

that any carrier participating 

Director as its agent for colle

applicable tariff charges

The Commission condition

on September 1 1976 the inte

Executive Director of ANAFC to 

inspection or collection of ta

any non member carriers or con

scope of the agreement Eleven 

in the US foreign commerce h

Executive Director of ANAFC 

that all such arrangements betw

or conferences thereof must be 

for approval pursuant to Sectio

During the reporting per

were filed with the Commission 

the transition quarter
POOLING STATEMENTS

Pooling statements are filed with 

apprised of the activities of the part

the most anticompetitive type of agre

on the financial settlements made betw

the terms of the pool formula in the b

are usually filed on a semiannual and o

is needed when followups are required 

to ensure compliance by the parties wi

The majority of pool agreements cover 

usually require the approval of the La

in addition to Commission approval bef

The policy of the foreign government i

desired by the participating Latin Am

government owned have to be given due 

processing of such agreements Fiftvthree pooling statements w

audit by the staff during the reportin

quarter There have been several occ

the due date and the actual filing of 

caused to a large degree by the fact 

pool must be agreed to by all particip

flag participant s

OPERATING REPORTS

Reports being submitted by confe

by parties to such new agreements as s

primarily in the Japanese trade by 

arrangements and sailing agreements a

Reports In view of technological ch

expected that such reports will contin

These reports in many instances requ

that the Commission be aware of the a

assured that their operations do not 

agreements One hundred twenty two o

with the Commission and reviewed by th

period 23 during the transition qua

NONEXCLUSIVE TRANSSHIPMENT AGREEMENTS

General Order 23 exempts nonexc

agreements which do not prohibit eith

similar agreements with other carrier

Section 15 However such agreements 

outlined in the General Order and the 

contain language required by the Orde

21
of reviewing such filings as th

provided in General Order 23 

Order through September 30 19

agreements have been filed with 

1976 446 such agreements were 

DOMESTIC AGREEMENTS

During the reporting perio

9 during the transition quarte

TAR

FOREIG

FILINGS

The tariffs which are sub

in their rates rules and regu

program to insure that the rates 

operating in the foreign commer

with the Shipping Act 1916 an

applicable Commission general o

is not limited to the requireme

Section 18b and Gener

filing rules and regula

Section 15 as to whethe

thereunder or whether ra

might extend beyond thos

Section 14b and the v

contract systems as app

Sections 14 16 and 17 

and undue or unfair pre

General orders of the C

compensation import an

During the reporting peri

tariffs while 354 tariffs were 

of 187 tariffs on file This in

active tariffs on file as of Se

During FY 1976 339 893 t

resulting in a 31 increase ove

STATISTICAL ABSTRACT

Tariff Filings Received 

Tariff Filings Rejected 

Tariff Filings Accepted 

Special Permission Applications

Received 
SPECIAL PERMISSION APPLICATIONS

Under Section 18b of the Sh

the authority in its discretion an

the 30 day notice provision applicab

and those involving an increase in c

reporting period the Commission rece

applications 26 during the transitio

the tariff filing requirements for a 

special permission applications proc

and 5 withdrawn 21 5 and 0 respec

In a related area Incan Supe

water in the US Great LakesCanada 

from the tariff filing requirements 

Act pursuant to section 35 of this 

PROGRAMS AND SURVEILLANCE ACTTVITV

The examination of tariff filin

activity These documents are not a

with our tariff filing regulations 

applicable regulations At the same 

data is a vital source of informatio

Commission has to know and know tim

it regulates are doing According

is essential to satisfy the Commiss

surveillance over those it regulate

Programs are maintained to rev

any area of unjust or unfair treatm

consignees ports other carriers 

discriminatory freight rates or cha

commerce 3 watch for trends in ta

geographic areas 4 watch for the 

particularly as they affect traditio

that general rate increases and sur

trade conditions and 6 review very 

regulations to insure compliance wi

and the formation of policies which 

low cost marine transport services

RULEMAKING

The Commission sGeneral Orde

the manner in which the tariffs of 

United States foreign commerce must 

18b Shipping Act 1916 In Apri

amendment to this General Order to 

tariffs A completely revised Gene

fication and standardization is un

2
revisions represent the limit 

can reach to encourage the de

network under present regulato

been approved however Petiti

have been recieved based upon 

Marine Corp et al v United 

court in that case casts doub

Maritime Commission Interstate 

to our respective roles in the 

broader questions as to our tr

in intermodal operations

EXEMPTIONS

During the reporting pe

Thunder Bay Ontario Canada 

from our tariff filing regula

movements of cargoes in railroa

United States the rates for w

carriers and filed with the IC

Regulation of this same traffi

and unnecessary

Under consideration at t

an exemption of water carriers 

railroads in Canada with those 

moving between the United Stat

railroad tariffs listing the w

DOME

TARIFF MATTERS

The Commission sregulat

domestic commerce derive mainl

Intercoastal Shipping Act of 1

During the report period 

2583 during the transition q

quarter of which were rejected 

sion regulations as prescribe

Shipping Act 1933 and the Coms

addition 107 applications for 

of the Intercoastal Shipping A

were processed 19 during the 

29 tariffs were cancelled when 

pation in the trades

As a result of the repea

tenders on file were reviewed 

after consultation with the ca

been proposed to streamline ou

to the contemporary needs of in
AUTOMOBILE GUIDE

In August 1976 the Commission 

of the FMC Guide on Shipping Automob

Measurements containing the specifica

automobiles The current publication 

automobile manufacturers including a

GUAM MARIANAS ISLANDS

Service to Guam an unincorpora

was disrupted early in the spring of 

island is subject to the cabotage law

cargoes may only be carried by United 

essentially is served by only two suc

Matson Navigation Company Matson an

In midApril Matson advised the Comm

it uses to serve Guam were in need of 

Coast

scheduled

Guard

voyages

certifications

was delayed

could

from

be

la

r

second sailing was delayed form late 

originating

California ports

in the

to

contiguous

Seattle and

United

one s

Hawaiian service to the Guam service 

in half during the months of May and 

These operational changes requi

to accommodate the changes in equipme

some of these changes could be handle

regulations

rules Since

certain

the best

of

interests

the changes

of

r

t

alleviate this area of any regulatory 

service the tariff filing requiremen

necessary

AMERICAN SAMOA

General increases averaging 17 

Polynesia Line Ltd and Pacific Isla

to become effective in July 1976 Th

be filed in the American Samoa trade 

Islands both of whom are foreign fla

registry vessels cited rapidly esca

evolving containerized nature of the 

itable nature of the service making 

The proposed increases drew nominal p

other tangible evidence the Commiss

become effective without suspension o

25
VIRGIN ISLANDS

Trailer Ship Line TSL th

carrier formerly serving the Mia

operations on March 14 1976 sin

were removed from the trade by Ts 

St Croix and St Thomas was rep

Co Ltd who filed its initial 

Trailer Container Line TCL was 

and basically replaced TSL s Ro R

at rates approximately 15 percen

During the latter part of 

Lines Inc Interisland entere

trade Berwind Lines Inc Ber

serving this area ceased operati

its tariff publications Interis

the Crowley Maritime Corporation

ALASKA

Common carriers providing 

Alaska pipeline would ordinarily 

requirements of filing tariff pu

service By Order served Februa

Puget Sound Tug Barge Company 

Launch Tug Company and Foss A

requirements of the Shipping Act 

Act 1933 This exemption which 

applies to the carriage of genera

on navigable water in the contigu

excluding the Mississippi River 

and Prudhoe Bay Alaska

An initial joint FMCICC ta

by Artic Lighterage Company Art

from ship anchor to shore at K

both ship anchor and shore at 

points

PUERTO RICO

Rico Lines Inc Rico file

effective December 26 1976 Th

New Jersey Norfolk Virginia and 

Mayaguez and San Juan In May 

operations reportedly due to a d

Corporation Gulf

Seatrain Gitmo Inc Seat

in November offering service bet

The advent of this service adds a
to the Puerto Rico trade at rate le

Rico Maritime Shipping Authority pr

A fifteen percent across the 

Maritime Shipping Authority PRMSA 

become effective September 21 1975 

increase was placed under investiga

Commission sOrder of Investigation 

determinations to be reached since 

government owned operation raises 

Proposed increases on selecte

Marine Transport Corporation TMT 

by the Commission and the rates sus

16 1976 Docket No 7628

HAWAII

United States Lines USL and 

Matson were named as respondents 

determine whether the carrier sfor

All Kinds and Freight All Kinds e

subject any person locality or d

unreasonable prejudice or disadvan

Due to the Commission sinfor

and the cooperation of Matson and 

container yard addresses establish

bilateral competitive pressures in 

disclosed by the Commission sPac

consignees were receiving drayage 

the respective carriers of bogus 

business address of the involved s

Variable percentage increase

in December 1975 and January 1976 

investigation Effective in January 1976 M

to bulk molasses moving from Hawa

this substantial percentage increas

substantially below Matson ssystem 

while

total

projected

the

revenue

molasses

ocean

tonnage

carriage

cargo

it

will

revenue

will

acco

onl

Effective June 1 1976 Mats

than containerload rates from its 

Matson s professed purpose was to 

under utilized or which did not pr

the same time Matson served notic

public that it would no longer ab

general increase was filed but wo

increases

subsequent

at

increases

the time

in

they

drayage

incurre

ch

and delivery service on the West C

226 255 0 75 5
Matson also deleted its pub

related articles from its Pacifi

June 22 1976 These commoditie

in Matson stariff which applies 

This was done to allow Matson to 

able The deleted rates allege

marginally remunerative level i

there is no longer any significa

rates Although the deletions d

25 percent the deleted rates wer

tive if at all there was no vi

depressed rates and deletion of 

rate parity between Pacific North

Coast The Commission therefor

become effective as scheduled

DUAL RATE 

Section 14b of the Shipping 

approve dual rate contract system

such carriers in foreign commerce 

of the antritrust laws

The American West African F

system second westbound coverin

westbound was extended for a thre

the

institution

Scandinavia

of a

Baltic

dual

US

rate contra

North 

Scandinavian sector Norway Den

three year period on December 18 

The Trans Pacific Freight C

Japan Korea Atlantic and Gulf Fre

to their approved forms of dual r

would extend its contract scope t

and the latter conference would e

inland points in Japan and the U

for hearing was filed by Seatrain 

investigation and hearing was ser

76 11 Agreements Nos 150 DR7 a

pending before an Administrative 

The North EuropeUS Pacifi

contracts for general cargo and w

Commission on August 15 1973 fo

was submitted to extend the appro

thereon were received from the W

fornia and the National Associatio

The dual rate contracts had never 

justification for such extension 

investigation and hearing on Sept

Agreement No 93 DR1 Modificatio

the North EuropeUS Pacific Fre

request of the conference the pr
T

The marine terminal industr

connection between the ocean car

is also regulated by the Commis

serving common carriers by water 

the Commission tariffs specifying 

tions governing the services offe

agreements between terminal oper

are required to be filed prior to 

tion by the Commission as to whe

immunity accorded under Section 

TARIFF FILINGS

In the course of the report 

were received and orocessed on b

during the transition quarter 

quarter the Commission had a to

file

AGREEMENTS REVIEW

During the period 244 term

quarter were filed for Commissio

1976 there were 416 approved ter

CONFERENCE MINUTES

During the entire period 16

domestic offshore carrier confere

with the Commission and reviewed 

RULEMAKING

The continuing trend of mar

taneously as stevedores and opera

the tremendous increase in conta

vessels has resulted in the filin

and water carriers providing for 

services Such agreements raise 

question of jurisdiction over the 

as stevedores has never been rule

provide guidance to the industry 

requirements for these types of a

revise the proposed rules in Doc

of Agrecnents Seta Common Car

the Sipping Act 1916 The purp

A dispute between Encinal Te

the West Coast was successfully re

it considered to be excessive free 

by the Port of Tacoma and petitio

sion Order in Docket No 555 

discussions with the various part

posed and accepted which satisfied 

withdrawing its petition

This dispute is one of severa

some ports may be granting excess

resulting in situations which may 

an unfair disadvantage Commissio

personnel and in addition have 

on this matter Results of the m

received to date are presently un

On April 22 1976 the Califo

CAPA rescinded its decision to 

basis ofweightor measure whichev

officials had suggested the change 

inequities currently existing with 

certain types of cargoes Partic

cargoes cargoes whose weight to m

complaints were filed with the Co

cussions between the Commission an

resolve this controversy Inasmuc

been withdrawn no further action 

The Commission has instituted 

problems Seatrain Gitmo Inc has 

container terminal facilities at S

cause proceeding intended to deter

Sections 15 and 16 of the Shipping 

tration and use of certain contain

Isla Grande portion of San Juan H

and hearing arising out of a prote

Commission approval of four termin

portion of San Juan Harbor The 

whether the Puerto Rico Ports Aut

and or 17 of the Shipping Act 19

to berths at Isla Grande San Jua

Authority the Puerto Rico Ports A

Section 16 First or Section 17 of 

Seatrain access to the container c

OCEAN FREIG

The Commission under the pro

as amended is charged with the li

ocean freight forwarders The Cos

the criteria which must be met by 

to be licensed and governs the co
LICENSING

To date approximately 190

licensed after having been found 

carry on the business of freigh

1976 there were 1217 active forw

maintained by those forwarders 

surveillance over their activiti

current basis carry forward th

During the report period t

received 219 new applications 4

of which 187 37 were licensed 

branch offices of licensees wer

In 1975 a new program was 

whereby investigation of freigh

is conducted by the freight forw

by correspondence and telephone 

was sent to the Commission sfie

for the most part was an expen

The type of investigation now c

within the Washington office ha

the majority of instances In 

are problems which arise and do 

Out of the total of 219 applica

period 21 cases were sent out 

the complexities involved

Nevertheless the program 

utilization of the Commission s

the time between the filing of 

license from an average of nea

weeks

DENIALS AND REVOCATIONS

During fiscal year 1976 an

ending September 30 1976 the 

licenses for various reasons an

revoked

SIGNIFICANT PROCEEDINGS

During the 15 month period 

initiated andor decided by the 

forwarder applicants and licens

Docket 75 37 Independent Ocean 

International Air Services Ltd 

denied

license

the

because

application

it found

for

the

an

ap

i

the experience of applicant so
carry on the business of forwarding 

Shipping Act 1916

Docket 75 47 Independent Ocean Frei

Korea Express USA Inc This pro

investigation of the application rev

which appeared to be disqualifying u

however was dismissed upon the withd

Docket 76 48 Independent Ocean Frei

JT Steel a Co Inc This procee

determination that a purchase of Stes

an unlawful shipper connection barre

is now pending

Docket 74 31 Independent Ocean Frei

Lesco packing Co Inc The Commi

the applicant for an independent oce

unfit and denied the application

Docket 75 17 rndepcndent Ocean Free 

Cleto Hernandez dha panrnter Th

of an export shipper who was also a 

freight forwarder The Commission f

by the employer was sufficient groun

Docket 75 11 Independent Ocean Fre

Sequoia Frwarders Company The Co

to determine whether the applicant w

shipper control and without benefic

The application was approved after 

AUTOMATIC DATA PROCESSING SVSTEV

The Commission has continued to 

processing system for maintaining c

with respect to licensed freight fo

industry is a dynamic and changing 

constantly entering the field and o

and branch offices are constantly 

Therefore it is essential that we 

record keeping system regarding lice

RULEMAKING PROCEEDINGS

The Commission is reviewing en

to the licensing and regulation of 

in the process of major revision of 

has demonstrated some of the rules 

3
circumstances and should be 

experience has shown that r

in an effort to make the Cs

in carrying out its regulat

regulations more directly r

regulated forwarders

PASSENGER VESS

The Commission is char

istering Sections 2 and 3 o

charterers and operators of 

accommodations and embarkin

required to establish their 

liabilities for death or in

voyages to and from United 

in the event of nonperforma

CERTIFICATES ISSUED

During the reporting p

for certificates of financi

quarter Eighty five app

tion quarter consisting of 

Financial Responsibility fo

formance of Transportation 

Financial Responsibility to 

and 53 applications for ame

changes in ownership chart

revision of corporate owner

financial responsibility

CERTIFICATES REVOKED

Nineteen certificates 

8 during the transition qua

sold or withdrawn from the 

ENFORCEMENT

Fiscal Year 1976 was o

the passenger lines The e

cessations of operations co

consequence of heavy losses 

was faced with numerous 30d

by guarantors The passeng

to reevaluate their respec

WATER POLLUTION 

The Federal Maritime C

of the provisions of section 

Control Act

Section 311 p1of th

over 300 gross tons includi

using any port or place in t

of the United States includi

maintain with the Federal M

responsibility to meet the l

such vessels could be subjec

substances discharged into o

The financial responsi

have been in effect since Ap

requirements with respect to 

cannot become effective unti

establishes necessary regula

substances the quantities o

a

proposed

harmful

rulemaking

discharge

to

etc

estab

T

December 1975 and final pub

LEVEL OF RESPONSIBILITY

The evidence of financia

Water Pollution Control Act m

ton of a subject vessel or 1

Such evidence usually in the 

reimburse the United States G

removal of oil which has been 

The Commission sregulat

financial responsibility requ

for the certification of vess

financial responsibility requ

whereby the owners or operato

the required evidence of fina

the qualifications required b

certificates as well as the 

or suspension of certificates 

States waters without carrying 

such document to authorized e

ENFORCEMENT PROGRAM

The Federal Water Pollut

enacted on October 18 1972 

compliance with the financial 

subject to a fine not to excee

States waters and detainment 

clearance from United States w
These enforcement provisions are adm

involving the United States Coast Gu

Service and the Federal Maritime Co

Company also is involved with enforce

with the Commission

Because the statutory enforceme

the financial responsibility requirem

but completely separate field functio

Customs Service and the Panama Canal 

the Commission to coordinate the enfo

the agencies themselves on the one h

industry ie the vessel owners st

and the three enforcement agencies o

All four involved agencies FMC 

been continuously improving upon the 

assure that the interests of the Unit

but that no vessel is detained longe

because detainment costs could run as 

could result from a simple case of a 

the year the Commission expanded its 

program by providing regularhour du

seven day perweek program has result

program known worldwide

During the period the Commission 

inquiries 437 during the transition q

ranging from Alaska to the Panama Ca

Virgin Islands Of that number of c

a few hours to two days resulted for 

transition quarter Without the joi

all 1723 vessels would have been de

involved matters such as changing a v

obtain an amended certificate and mis

detainment

immediate confirmation

resulted in such

to the

cases

enforce

bec

the involved vessels were in complian

provisions of the Act

HAZARDOUS SUBSTANCES

The Federal Water Pollution Con

provide for the eventual addition o

a class of pollutants for which vesse

evidence financial responsibility T

substances will not become effective 

Protection Agency issues necessary re

of hazardous substances

At that time all vessels previo

as having evidenced financial respon

be recertified to indicate that they 

bility requirements for hazardous su

37
Commission sregulations implem

31 have been approved by the 

and completely replace General 

Protection Agency sregulations 

becomes effective

INSURERS EXAMINED

Generally vessel owners a

responsibility by submission o

is written not only by American 

throughout the world

The Commission must analyz

capabilities of a particular in

executed by such insurer Dur

six foreign underwriters for th

additional foreign insurers we

CERTIFICATES ISSUED

During the period applica

vessels 902 in transition qua

3996 vessels 839 in the trans

2926 vessels 517 during the t

various reasons including sale 

applications covering 214 vess

transition quarter

At the close of the report 

by valid certificates and app

of 715 additional vessels were 

were covered by special certific

ie a type of blanket certific

as shipyards and scrappers whic

the next as to the vessels for 

The workload does not dim

In fact it increases due to ch

vessel operators substitution 

responsibility by another annu

self insurers transfer of own

and similar situations which n

servicing of records as well as 

of numerous certificates

AUTOMATIC DATA PROCESSING

An automated record retent

of vessels is operational Th

lists of vessels vessel partic
certificate number etc owners and 

covering each vessel This system is 

source of initial reference with resp

inquiries from Coast Guard Customs 

Further if a previously approve

acceptable to the Commission due to a 

or other reason the vessel owners an

insurer must immediately be identifie

substitute coverage in order to prote

certificates The automatic data sys

identification During the year a re

system was developed in connection w

substances recertification

INFORMAL COM

This function of the Commission 

public as well as the regulated ind

to air grievances and secure prompt 

of problems on an amicable and coope

Through its informal complaints 

1 examines informal complaints or p

methods and operations of common car

or domestic offshore commerce of the 

of such carriers ocean freight forw

other persons subject to the regulato

Maritime Commission and 2 takes a

by resolution through voluntary agree

that the complaint or protest be reje

shipping statutes or rules or orders 

to the Bureau of Enforcement for inv

During the reporting period inf

and foreign except foreign complain

problems continued to be handled by 

Bureau of Compliance

There were 73 informal complain

fiscal year 1976 and during the yea

52 during the transition quarter 

period 64 complaints were carried for

final action having been concluded o

quarter Of the new complaints rec

period 275 83 percent related to 

the foreign and domestic offshore tra

practices of marine terminal operato

the activities of independent ocean 

3 percent related to shippers

In addition to the foregoing t

and Intermodalism handled informal c

rate problems andor protests The 

39
designed to have maximum effective

achieve this effectiveness the 

corresponds both with the compla

carrierconference that the comp

to resolve the complaint on an in

At the close of fiscal year 

this nature were pending During 

complaints were received 30 duri

making a total of 334 cases to be 

reporting period 162 cases had b

transition period leaving 172 t

year 1977

The Commission sDistrict O

complaints which fall within the

ENFORCEMENT 

The Commission sBureau of E

office in Washington DC with 

Offices on the Atlantic Gulf and 

The Atlantic District office is lo

District office in New Orleans a

San Francisco with a sub office 

the port areas of Los AngelesLon

scheduled for establishment at Sa

These offices represent the Comm

areas and provide liaison between 

in Washington DC Primarily th

action violations of the shipping 

Commission These investigations 

with the activities of common car

operators ocean freight forwarde

addition another important funct

passenger vessel audits underlying 

responsibility as a protection to 

also furnish information advice 

documents for interested persons 

FIELD INVESTIGATIONS

New field investigations for 

the transition quarter Of thes

quarter were malpractice cases w

freight charges and misdescriptio

and misweighing of shipments to o

at less than the applicable freigh

agreement violations numbered 268 

The remainder of the cases include 

quarter forwarder applicants for 

transition quarter other forwarde
At the beginning of the year 5

New cases added totaled 894 Thus 

investigation Completed investiga

transition quarter leaving 662 pe

period

FINES AND PENALTIES COLLECTED

During the reporting period fi

39607 21 were imposed on 37 com

nonvessel operators ocean freight 

half this amount was collected as a 

case which the Commission had refer

for penalty action Thirty six pe

the Commission sauthority under PL 

Collection Act of 1966 The remain

court imposed fines in cases which 

Department of Justice for penalty 

CARGO LOSS AND DAMAGE

On July 1 1974 the Commission 

effective August 5 1974 requiring 

file quarterly reports of cargo lo

As a result of almost total oppos

the Commission stayed the effective 

withdrew the rules altogether

The Commission is now conside

collecting cargo loss and damage d
SPECIAL STUD

SECTION 19 ACTION

On July 1 1975 Delta Ste

against the further approval of 

working arrangement in the Miam

Mercante Grancentroamericana a 

American Mail Line a US flag 

agreement was in furtherance of 

Delta maintained prevented it 

access to cargoes moving in the 

to Delta s protest a Section 2

on July 25 1975 on all liner 

United States Atlantic and Gulf 

the Commission in determining w

US flag shipping in the foreig

been created by Guatemalan Decr

action should be taken pursuant 

Act 1920

On December 4 1975 the C

Decree No 41 71 had created co

commerce of the United States i

that the Secretary of State se

diplomatic channels In a lette

ment was requested to obtain fro

February 14 1976 a withdrawal 

failing which the Commission wo

the Department sdiplomatic eff

intended to issue regulations p

Marine Act 1920 designed to o

in the trade between the US a

earthouake which struck Guatema

postponed issuance of such regu

the close of the fiscal year me

conferring with Guatemalan offic

to restrictions on the access o

lines to the transportation of 

TIMELY FILING OF REPORTS

General

The

Orders

timely

7

filing

14 18

of

and

repor

oth

orders of approval or Section 1

in a number of instances Such 

Commission sregulatory functio

subjects as self policing ship

of meetings pooling statements 
includes spacecharter sailing and 

April 23 1976 Circular Letter No 

by water in the foreign commerce of 

of such carriers Therein the repor

The addressees were requested to tim

Reports filed in fiscal year 19

filed for the period from July 1 19

2904 Some of this increase is dire

circular letter More timely report 

fiscal year 1977 If such is not the 

be implemented

CURRENCY EXCHANGE RATES

The continued pattern of volat

has led to the establishment of a st

of international currency relationsh

current data are maintained daily on 

tions and disseminated monthly on se

NVOCC REPORTS OF RATE BASE AND INCOM

The data accumulation and evalu

The first reports were received and 

General Order 11 relating to NVOCCs 

of identification of common errors o

the objective of permitting early re

of further guidance as necessary 

effort was utilized in obtaining com

ance to these firsttime data repor

FIELD AUDITS

A long desired objective of pe

rier financial and statistical data 

companies data were reviewed on sit

other issues and one company was se

audit program Six additional comp

the period end

STANDARD COST INFORMATION AND REPOR

The joint project with the Ma

a recurring standard cost informa

cost and statistical information by 

several milestones The programmin

on data developed by the team the 

interested parties a portpair mile

4
pairs has been developed and is i

carrier evaluation and several c

testing with actual financial and 

servecarriers MARAD and FMC Co

of unit cost data to be used in t

GO 29
FORT L PROC

ADJUDICATORY PROCEEDINGS BEFORE 

Administrative Law Judges pres

of a complaint or institution of a 

motion

Administrative Law Judges have 

and affirmations issue subpenas r

relevant evidence take or cause de

ends of justice would be served the

hearing hold conferences for the s

issues by consent of the parties d

similar matters make decisions or 

other action authorized by agency r

trative Procedure Act

At the beginning of fiscal yea

before Administrative Law Judges 

were added 18 during the transition 

reopened and remanded to Administra

ings During the reporting period 

ferences conducted hearings in 33 

quarter and issued 46 initial dec

quarter in formal proceedings and 

the transition quarter in special 

otherwise disposed of involved 47 f

transition quarter

COMMISSION ACTION

The Commission adopted 9 forma

sions and remanded 2 formal procee

DECISIONS OF ADMINISTRATIVE LAW JUD

BY THE COMMISSION

Docket No 73 17 SeaLand S

Lines Inc Proposed Rules on Co

Rico Maritime Shipping Authority 

Rico Maritime Shipping Authority wa

water operating between the East an

and Puerto Rico but it was also fou

containers are unlawful and that it 

containers which are lawful under t

Docket Nos 73 42 73 61 73 6

of the Port of New Orleans et al 

rail water service between New Orle

and ports in Europe and the United 

ton was found not unlawful unfa

45
within the meaning of sections 

nor violative of section 8 of 

Docket No 74 Freigh

at United States Ports Possibl

and General Order 4 The Gen

have required bids for ocean f

instances violated section 16 

have required the rendering of 

compensatory rates in violatio

freight forwarder services un

relief agencies or charitable 

avoid giving unreasonable pref

Docket No 74 Dow Ch

President Lines Ltd et al 

lishing conditions under which 

reasonably construed Howeve

resolved against the carrier a

where resolution of the ambig

able interpretation of the ta

Docket No 74 SeaLan

in the US West CoastPuerto 

ness reasonableness and lawfu

of the Shipping Act 1916 and 

ping Act 1933 was discontinue

of a ratemaking proceeding is 

the future and the rates under 

having been canceled and super

effective after the commenceme

Docket No 74 Agreem

Docket No 74 Pouch Term

York and New Jersey Terminal 

handling storing or delivery 

plainant terminal to undue or 

establish unjust and unreasona

of sections 16 and 17 of the S

Docket No 74 Agreem

between the Pacific Westbound 

interconference agreement whic

ated arbitrary 6 differentia

record information be modifie

the conferences that reflect d

Docket No 74 Pacifi

Pacific Marine Transport Inc 

was found that while responden

was not carrying on the busine

Docket No 74 Agreem

East Conference for Intermodal 

imposed by the proposed agreem

not necessitated by a serious 
Docket No 75 Chevron Chemica

Ltd It was found that product OLOA 2

Additive Non Hazardous NOS Lubrica

rate was assessed on one of three ship

Docket No 75 Puerto Rican Fo

Possible Violations of the Shipping A

Shipping Act 1933 It was found that 

owning common carrier without a tariff 

lation of section 18a of the Shippin

Intercoastal Shipping Act 1933 and a

transportation by water at less than t

violation of section 16 of the Shippin

Docket No 75 The Carborundu

Steamship Company Antilles NV It 

failed to meet the heavy burden of pro

reparation

Docket No 75 Abbott Labora

found that respondent stariff provisi

modities shipped by trade name was va

Docket No 75 Agreements No

that respondents containership servic

ing multiple solicitation and spacin

become through doubling the aggregate 

invasion of antitrust polici bs as wel

and therefore approval was accorded u

fleet operating thereunder be reduced

Docket No 7531 CSC Internati

ship Corporation It was found that 

by limitations

Docket No 75 Agreement Nos 

Between the City of Anchorage and Sea

No T3130 Between the City of Anch

Inc Terminal agreements were approv

clarity that the annual tonnage fees 

fied number of annual preferential ca

pend preferential berthing rights whe

sitate that space will be made avail

space be available for off loading ce

be made for off loading petroleum pro

Docket No 75 ESB Incorp

Reparation denied because complainant 

burden of proof

Docket No 75 Commercial So

Inc v tloore McCormack Lines Inc 

improperly described

Docket No 75 Perry s Crane 

of Harris County Texas Respondens

operating on its facilities was held 

4
and renters and its requirement 

jobs and its right to bump pr

pleted constitute violations of 

Act Termination of these prac

Docket No 76 2 Borden In

Reparation denied because compl

burden of proof

Docket No 76 NSA Inte

denied because complainant faile

proof

Docket No 76 30 Paz Ame

Lines Inc Reparation awarded 

Docket No 76 Caterpi

Marine Corporation NY Com

not a common carrier by water an

of the Commission

Judges also issued initial 

71 8 71 26 71 34 7511 75 12 

468 on remand 471 472 473 

Decisions of the Commission 

Special Docket Nos 476 478 48

Commission

PENDING PROCEEDINGS

At the close of the repo

of which 34 were investigations 

remaining proceedings were instit

common carriers by water shippe

districts terminal operators t

Defense and instrumentalities t
FINAL DECISIONS O

During the reporting period in 

the Commission heard twelve oral arg

terminated 23 proceedings 1 4 and 

quarter one of which was remanded 

Administrative Law Judges Ten proc

dismissed without decision and five 

Administrative Law Judges for hearin

transition quarter

The Commission also issued twe

docket applications and eight decis

claims against carriers in the amou

respectively in the transition qua

Docket No 69 57 Agreement 

Association Cooperative Working Arra

Nos 71 2 71 8 71 26 and 71 34 

Seatrain Lines Inc Daniels and K

Inc Greek Line Inc Home Line A

York Shipping Association A claim 

of twelve breakbulk lines against 

for over assessments to cover bene

period was found justified in the a

directed to satisfy the claim and n

of satisfaction Provisions were a

claims by other persons seeking a r

Docket No 72 46 Agreement 

Extension of Authority for Intermod

Pacific Westbound Conference autho

approved pursuant to section 15 of 

period of 18 months on condition th

permit the member lines to individu

interior intermodal traffic as well 

such time as the Conference impleme

Docket No 73 54 Windjammer 

cruises Ltd Respondent was found 

Public Law 89 777 and section 540 3 

in arranging and providing passage 

embarking at Mayaguez Puerto Rico 

financial responsibility requiremen

Docket No 73 73 Port of Ho

Steamship Co Inc et al Compl

demonstrate that respondent spract

Corpus Christi relating to handling 

16 17 or 18b3of the Shipping 

Docket No 74 8 European Tr

Tasin v Prudential Grace Lines 

In a complaint alleging violations 

regard to the proper classification 

both the forwarder and carrier were 

49
16 of the Shipping Act 1916 

section 17 of the Act Procee

on the issue of vioaltion of s

regarding the proper classifica

section 18b of the Act

Docket No 7414 Poss

the Shipping Act 1916 and Se

Arising From Charging Higher R

Respondent Hawaii Freight Line

non vessel operating common ca

to be liable for loss or damag

itself out to the general publ

standing its disclaimer of lia

have charged rates higher than 

Docket No 7417 Agreem

WestfalLarsen and Co AS Fre

As An agreement between car

another entity acts as the veh

conduct a joint service and s

be subject to section 15 of the 

under that section since servic

and other persons FAK rate s

practices of the joint service 

of the Shipping Act

Docket No 74 31 Indepe

tion Lesco Packing Co Inc A

ocean freight forwarder license 

was unfit in view of a long his

violations

Docket No 7511 Indepe

tion Sequoia Forwarders Compan

ocean freight forwarder slicen

or consignee interests as requ

1916 inasmuch as its affiliatio

it a purchaser within the me

Docket No 75 12 Crest

Line and Boise Griffin Steamsh

overcharge of ocean freight bas

denied where the particular pro

judgments in rating cargo was 

advise experts and laymen alike 

thereunder

Docket No 75 17 Indepe

Cleto Hernandez R dba Pan In

forwarder license was revoked w

principal and failure to pay ov

carrier demonstrate a lack of f

qualification for a license was 

Docket No 75 35 Agreem

T16856 Between the City of A

and Agreement No T3130 Betwe

Ocean Trailer Inc An agreeme
berthing rights at the Port of Anchora

that a real possibility existed that 

preclude another carrier from offering 

Port during period of severe icing con

Docket No 75 37 Independent 

International Freight services Ltd 

forwarder slicense was denied because 

ability necessary in view of applics

in its application and later to an in

lack of experience to conduct the forw

Docket 75 Filing of Mail Ra

Petition for Declaratory Order and Ap

the absence of a clear mandate to the 

Reorganization Act the requirements 

were found fully applicable to the wa

Ocean carriers were however granted 

filing requirements of section 18b

as to carriage of mail inasmuch as su

effective regulation by the Commissio

Docket No 75 Cities Servi

Brothers Steamship Co Inc A comp

overcharge was granted when complaina

rate should have been applied when sh

signatory and the cargo in question 

Docket No 75 Union Carbid

Venezuelan Line Compania Anonima Ven

No 75 Union Carbide InterAme

and Docket No 75 Union Carbide 

Line These three cases involved cla

of ocean freight The claims were gra

that misratings had occurred because 

descriptions on the bills of lading 

limiting time for bringing of claims 

before the Commission within two yea

Docket No 76 Ace Machinery 

Aktiengessellschaft A dismissal of 

overcharge of ocean freight was uphe

to timely challenge such ruling befo

overriding public interest considera

subjecting of respondent to further 

51
The following rulemaking pr

reporting period are still in pr

Docket No 75 28 Submiss

Concerning General Rate Increases 

Common Carriers Conferences an

Docket No 76 40 Filing 

Fares and Charges in the Domesti

PostingDocket No 7649 Miscella

and Procedure

The following rules were pu

as a result of rulemaking procee

General Order 36 Signific

in the Domestic Offshore Trade 

Account Docket 67 57

General Order 13 Filing o

Water in the Foreign Commerce of 

of Such Carriers Docket 7219 

reconsideration

General Order 35 Truck D

Docket 7241

General Order 33 Regulati

Unfavorable to Shipping in the Fo

Docket 72 62

General Order 13 Tariff Ci

Household Goods and Personal Effe

Operating Common Carriers Engaged 

Docket 73 4

General Order 19 Amdt 1 

Prompted by Change in Exchange Ra

Docket 73 53

General Order 22 Amdt 6 

Privacy of Individuals Identified 

General Order 16 Amdt 14 

of Practice and Procedure Docke

General Order 22 Amdt 7 

Protection of Privacy of Individu

Docket 7559

General Order 16 Amdt 15 

Rules of Practice and Procedure 

The following rulemaking pro

of Administrative Law Judges for 

Docket 72 43 Criteria for 

Rates Not Detrimental to Commerce 

18b5Shipping Act 1916

Two rulemaking proceedings w

final rules
ACTION IN T

The Federal Maritime Commission 

US Courts of Appeals at the beginn

proceedings that included twelve pe

Commission and three to review Dist

one or more parts of FMC s statutory 

ending June 30 1976 nine more petit

orders two appeals were taken from 

the FMC and the Commission participa

the appeals of two District Court de

private parties

During the reporting period Jul

18 appeal proceedings had either bee

during the transition quarter and t

briefing argument or decision One 

a Circuit Court decision involving a

Court during this period

The Commission assisted in one 

under the shipping statutes institute

SIGNIFICANT CASES

The more important cases involv

Commission included the following

Cargill Inc v Federal Maritim

DC Cir 1976 was a proceeding ch

in its Docket No 71 29 Baton Rouge 

Incorporated served January 7 197

the Commission sdeterminations tha

to impose charges against a stevedor

agreement between the terminal and a 

for the terminal to utilize a wholly

and 3 certain specific allocations 

charges against stevedores were unl

certiorari filed with the Supreme C

these issues was denied on October 4 

Pacific Maritime Association P

et al and International Longshorems

Federal Maritime Commission et a1 

were consolidated proceedings challe

Docket No 72 48 Pacific Maritime A

Arrangements Possible Violations o

Act 1916 served January 30 1975 

to its jurisdiction under Section 1

of a collective bargaining agreemen

of PMA must adhere to certain provis

agreement before they can employ lon

work force On August 27 1976 the 

holding that the agency lacked juris

53
provisions in collective barg

sought certiorari in the Supr

Wolfsburger Transport G

is a proceeding challenging t

No 73 24 Agreement No T26

June 25 1975 in which the C

its application to automobile

Maritime Association PMA us

shoremen sbenefits on the b

were reasonably related to be

not unlawfully disadvantageou

briefed and argued and is now 

Court

Federal Maritime Commiss

et al DC Cir No 75 192

dictional grounds rules prom

filing of international joint 

in by ICC and FMC regulated 

petition for review on Septem

action and issued asupplemen

Joint Rates and Through Route

that the ICC s jurisdiction u

portion of the rate relating 

carriers Thereafter on mot

the proceeding was dismissed 

In Kraft Foods v Federa

DC Cir 1976 the DC Cir

mission sOrder in Docket No 

Lines Inc and remanded the 

proceedings The Court held 

for adjustment of freight cha

weight

custody

or

are

measurement

invalid as

to

conflic

be fi

In Crowley Maritime Corp

DC Cir 1976 No 761606 

sought to have a Commisiion S

vacated on the ground that the 

Order

holding

as

companies

to the holding

Although

compa

t

was briefed The petition for 

United States v Blue Sea 

an appeal from a decision by t

of Florida dismissing a 266co

the rebating provisions of Se

District Court found that the 

August 1972 were remedial in 

sanctions are to be applied re

indictment SD Fla Cr No 

briefed and is pending argumen

Appeals
United States v Sea Land Servic

is a civil penalty action for 151 000 

compliance with a Commission order of 

in the Puerto Rican trades governing 

consolidators located within a fiftym

This case has been argued and is awa

NON ADJUDICATORY MATTERS

The Commission initiated 38 claim

compromise authority of the Federal C

Public Law 92 416 during fiscal 1976 

were compromised These claims were 

Sections 15 16 18 and 44 of the Ship

of the Intercoastal Shipping Act 19

offenses however involved infractio

under the shipping statutes Settlem

program resulted in collections excee

1975 through 30 June 1976 An additi

transition period In addition fine

Court for Shipping Act offenses totale

15 month period

55
IFAISIATIV

SIGNIFICANT LEGISLATION 

PL 94 163 ENERGY POLICY AND 

On December 22 1975 Presid

legislation designed to increase 

availability restrain energy dem

energy emergencies Of particula

Maritime Commission is Title III 

Under section 382 certain energy 

were assigned to five regulatory 

Aeronautics Board the Interstate 

Power Commission the Federal Avi

Federal Maritime Commission

On February 26 1976 this C

report to the Congress pursuant to 

summarizing the energy conservatio

the Commission had instituted sub

on April 20 1976 a 120 day repo

pursuant to subsection 382 a2

content and feasibility of propose

in energy consumption by persons 

which have as a minimum goal a 1

months of the institution of such 

from the amount of energy consumed 

120day report also discussed new 

necessary in order to achieve the 

The Act required pursuant to sub

Commission conduct a study and su

to laws administered by the Comm

action by the Commission that it 

requiring permitting or inducin

and a statement of the purpose fo

In conjunction with developing th

consulted with the Federal Energy 

agencies and mailed a voluntary e

vessel operating common carriers 

waterborne commerce of the United 

the subject addressed in subsectio

Finally subsection 382 b o

to include in any major regulatory 

probable impact of such action on 

conservation The Commission in f

practice prior to enactment of the 

mental studies undertaken pursuan

Policy Act of 1969

The Commission is presently a

additional staffing costs

5
PL 94 409 GOVERNMENT IN THE SU

On September 13 1976 S 5 wa

This legislation is designed to ins

the fullest practicable informatio

processes of the Federal Governme

six months after enactment focuses 

Commission meetings and strict con

between Commission officials and in

Commission resolution

On July 9 1975 the Commissio

bill to the Chairman of the Senate 

Although it fully supported the ob

opposed enactment of S 5 out of co

were to be carried out The Comm

implementation of certain of the p

administrative flexibility for sch

burdensome record keeping for an a

and deter Commission officials from 

exchange on all aspects of a matte

Commission also was of the opinion 

light of the Freedom of Information 

and the Privacy Act of 1974 PL 

S 5 passed the Senate on Nov

and the House on July 28 1976 wi

the bill was cleared for White Hou

The Commission has published 

to implement the open meeting requ

to administer PL 94 409 at no ad

PROPOSED LE

MINIMUM RATE PROVISIONS FOR NON NA

FOREIGN COMMERCE

HR 7490 a bill to provide 

non national thirdflag carrie

hearings before the Merchant Marine 

testified on July 22 1975 on HR 

enactment of the bill which as in

predatory rate practices on the pa

operating in the US waterborne f

in the Senate S 868 was the suc

original third flag bill introduced 

After time for reflection and 

Bakke testified on behalf of the C

on May 26 1976 suggesting that HR 

its application to independent car

by a government entity This woul

5
real problem at hand namely p

of the Eastern Bloc stateowne

hearings a new Controlled Ca

which incorporated many of the 

thereafter following discussio

Ministry officials Chairman Ba

under which the Soviet authorit

Soviet carriers in the Pacific 

United States to take certain m

unfavorable conditions the pend

correct Further Congressional 

deferred pending careful analys

Congress of the implementation 

the guidelines of the Memorandu

appear to be carrying out their 

INTERMODAL TRANSPORTATION LEGIS

During the last several Co

mitted proposed legislation whi

of singlefactor rates under a 

transportation of property in t

commerce of the United States

In the 93rd Congress exte

intermodal bills HR 12428 an

reintroduced in the 94th Congre

respectively On September 15 

before the Merchant Marine Subc

supporting enactment of some fo

stating that intermodal legisla

allow American importers and ex

fully the benefits of containe

emphasized that if the full be

become available to the shipping 

tually have to enact legislation 

intermodal transportation and 

be a step in the right directio

the further development of inte

Committee action was taken on in

those hearings it is hoped tha

in the first session of the 95t

PROPOSED LEGISLATION TO AMEND T

Several bills were introduc

would have amended the Intercoa

the Commission sregulatory aut

offshore commerce These bills 
bills S 3260 S 3180 and S 3261 

were initiated and strongly supported 

which carries approximately 90 to 95 

West Coast Hawaiian trade While the 

differed somewhat in their approach a

significant effect on the regulatory 

sion if enacted

First the Commission would have 

promulgate rate of return or adequ

for ocean common carriers operating i

second

suspension

a limitation

authority

would

in connection

have been

w

for general rate increases and third 

authorized the Commission having fou

after hearing to be unjustified to 

shippers Chairman Bakke testified on June 

Commerce Committee sSubcommittee on 

S 3260 and S 3261 and on June 16 

Marine and Fisheries Committee sSub

HR 10841 In both appearances the 

Commission had no objection in genera

istering rate or return guidelines 

the discretion to evaluate each carr

a fair rate of return for that partic

the bills provided for this but inst

guidelines which the Commission felt 

vast array of economic geographica

conditions of each carrier

Under Section 3 of the 1933 Inte

Commission is now authorized but no

proposed increase or decrease in rat

four months whenever it orders an 

the reasonableness of any such rate 

stated before the House Subcommittee 

the Commission to suspend only when 

the justification for a proposed rate 

stressed its belief that the existing 

beneficial to the shipping public a

for its retention Nonetheless the 

severelylimited the Commission ssus

general rate increases and HR 108

have provided for across the board r

suspension based on what the Commis

numerical standards Moreover unde

a relatively short span of five year

implemented a compounded increase of 

of rates without concern about susp

59
Finally the proposed legisl

refund of overcharges to shippers 

rates by the Commission The Com

such a provision was unworkable 

the desired goal namely to reim

any charges assessed under a rate 

For these and many other rela

enactment of any of the pending b

with amendments on September 20 

amendments on September 30 1976 

by the Congress prior to its adjo

is most likely that this legislat

95th Congress

PROPOSED LEGISLATION ON HOUSEHOLD 

During the 94th Congress le

to provide for the competitive mo

and charges of household goods sh

commerce of the United States I

Forwarders Association HR 8849 

were prompted by the Department o

traditional rotational method of 

traffic among carriers through its 

Okinawa Trial experiment The 

on household goods cargo to a lim

for sixmonth periods

On October 6 1975 the Comm

Senate Commerce Committee concern

its general support of the legisl

based on the Commission sstrong 

should be precluded from competing 

household goods On November 17 

to the House Merchant Marine and 

On December 16 1975 the Senate 

hearings ordered S 2023 reported 

1976 the Senate passed the bill 

the House

Chairman Bakke testified on 

House Merchant Marine Subcommittee 

restating the position of the Com

reports The Department of Defens

strong opposition to the bills T

in his testimony most particular

government cargoes have no right 

those charged for regular commerc

conditions and facts known to the 

that there was a real threat that 

driven from the household goods m

6
appearance before the Subcommittee 

household goods movers industry wer

evidence in greater detail of the r

currently being suffered and that w

the Okinawa Trial The Subcommitte

representations of the movers indus

legislation and voted on July 20 

to the full Committee for further a

OIL POLLUTION LIABILITY LEGISLATION

On January 29 1976 Vice Chai

of the Commission in support of HR 

comprehensive system of liability f

costs and to provide the mechanics 

national Convention on Civil Liabi

and in strong opposition to HR 10

established a uniform and comprehen

and compensation for damages and cle

pollution

The financial responsibility a

Titles I and II of HR 9294 were v

requirements under the present Fede

Act which are now administered by 

Executive Order Title I involved 

and certification and Title II inv

responsibility and certification re

Convention on Civil Liability for O

administrative

Vice Chairman

expertise

Morse emphasized

in such ce

likelihood it would be called upon 

the certification provisions under 

recommendations for technical amend

opposed HR 10756 inasmuch as it 

certification responsibilities in t

rather than leaving the matter to P

Commission stestimony concluded nu

legislation and on September 9 19

reported HR 9294 with amendment

action was taken by the House how

substantive action taken in the Sen

companion measures to HR 9294 an

61
OTHER LEG

STUDY AND REFORM OF REGULATORY 

During the 94th Congress 

reform of regulatory agencies 

ranging from those calling me

reforms to those providing for 

agencies Although no request 

to testify on general regulato

period July 1 1975 through S

Maritime Commission submitted 

bills in response to requests 

Two notable bills the Com

12048 the Administrative Rul

the Interim Regulatory Reform 

enacted by the Congress before 

provisions for Congressional r

the Commission opposed as bein

impediment on the rulemaking p

rulemaking also opposed by th

was tantamount to review de no

Commission sown rulemaking pr

final disposition of issues in

S 3308 included a provision p

agency rules which the Commis

the Commission opposed that pr

required complete repromulgatio

its existing internal oversigh

updating rules now being acco

committee headed by the Vice C

meeting at regular intervals f

such matters The Commission 

bill s provisions to permit it 

own name in certain situations 

transmission of budgetary and 

Congress and the Office of Man

The Commission was also a 

regulatory reform study underta

on Government Operations and C

71 During the second session 

focused on regulatory delay an

regulatory agencies

In addition the Executive 

meetings on several occasions 

regulatory agencies on assessin

responsibilities In this con

two reports to the President o

initiated or completed
ADDITIONAL LEGISLATION STUDIED

In addition to the proposals disc

1976 and the transition quarter the C

many other bills that had been introdu

advised the Congress the Office of M

agencies and departments on various le

to it for comment

63
ADMI

Presidential action was ta

Maritime Commission in Fiscal Ye

Mr Karl E Bakke of Virgi

Ford to succeed Chairman Helen D

effective November 15 1975 On 

confirmed Mr Bakke s appointmen

June 30 1980

Mr Bob Casey of Texas was 

President Ford to serve as Comm

term of Mr George H Hearn of N

June 2 1975 Mr Casey s appo

January 21 1976 for a term ex

The current members of the 

Karl E Bakke Chairman

R Virginia

Clarence Morse Vice Chairman

R California

Ashton C Barrett

D Mississippi

James V Day

R Maine

Bob Casey

D Texas
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