Budget 

Request for 

Fiscal Year 2015

F e d e r a l M a r i t i m e C o m m i s s i o n

March 10, 2014

 Submitted to the Appropriations Committees

 (Subcommittees on Transportation, Housing and Urban Development and Related Agencies)

Mario Cordero

Chairman
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

Table of Contents

INTRODUCTION ................................................................................................................................. 1

FY 2015 BUDGET REQUEST ............................................................................................................. 3

Competition and Foreign Practices............................................................................................. 8

Enforcement and Alternative Dispute Resolution....................................................................... 9

Licensing and Certification....................................................................................................... 10

Reducing Regulatory Burden.................................................................................................... 11

Applying Innovative Technologies........................................................................................... 11

FY 2013 ACCOMPLISHMENTS ....................................................................................................... 13

Competition and Foreign Practices........................................................................................... 13

Trade Oversight and Industry Research................................................................................ 13

Agreements, Contracts, and Tariffs...................................................................................... 15

Enforcement and Alternative Dispute Resolution..................................................................... 15

Investigations and Enforcement Proceedings....................................................................... 15

Ombuds Services and Educational Outreach........................................................................ 17

Ocean Transportation Intermediaries........................................................................................ 17

Passenger Vessel Operators ...................................................................................................... 18

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

Representative Rulemakings, Adjudications, and Litigation.................................................... 19

APPENDICES ..................................................................................................................................... 23

Appendix A: Resource Allocation by Program................................................................... 24

Appendix B: FTE Allocation by Program........................................................................... 25

Appendix C: Obligations by Object Class........................................................................... 26

Appendix D: Relationship of Obligations to Outlays.......................................................... 27

Appendix E: Performance Measures by Strategic Goals.................................................... 28

Appendix F: Workload Summary ........................................................................................ 30

Appendix G: OIG Certification ........................................................................................... 31
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INTRODUCTION

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

regulates oceanborne transportation in the foreign commerce of the United States. The bipartisan 

Commission is composed of five Commissioners appointed for staggered five-year terms. The 

President designates one Commissioner to serve as Chairman, the Chief Executive, and 

Administrative Officer of the agency.

The FMC’s mission is to foster a fair, efficient, and reliable international ocean transportation 

system, and to protect the public from unfair and deceptive practices. It administers the Shipping 

Act of 1984 (1984 Act, 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 sections 2 and 3 of Public Law (P.L.) 89-777 (46 U.S.C. §§ 

44102 and 44103).

The FMC’s major responsibilities include:

monitoring the activities of ocean common carriers, marine terminal operators (MTOs), 

ports, and ocean transportation intermediaries (OTIs) who operate in the U.S. foreign 

commerce to ensure just and reasonable practices;

reviewing competitive activities, such as rate discussion agreements, carrier alliances,

and other agreements among common carriers and/or MTOs;

licensing qualified OTIs in the U.S. and ensuring that all OTIs (including foreign OTIs) 

are bonded or maintain other evidence of financial responsibility;

maintaining trade monitoring, enforcement and dispute resolution programs to assist 

regulated entities in achieving compliance and to detect and remedy malpractices and 

violations of the prohibited acts set forth in section 10 of the 1984 Act;

providing dispute resolution services to the industry and consumers;

monitoring the laws and practices of foreign governments for discriminatory or otherwise 

adverse impact on shipping conditions in U.S. trades, and impose appropriate remedial 

action pursuant to section 19 of the 1920 Act or FSPA;

enforcing special regulatory requirements applicable to carriers owned or controlled by 

foreign governments;

ensuring that passenger vessel operators (PVO) demonstrate adequate financial 

responsibility to indemnify passengers in the event of nonperformance of voyages or 

passenger injury or death pursuant to 46 U.S.C. §§ 44102 and 44103;

processing and reviewing agreements, service contracts, and service arrangements 

pursuant to the 1984 Act for compliance with statutory requirements; and

reviewing common carriers’ privately published tariff systems for accessibility, accuracy, 

and reasonable terms.
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COMMISSIONER

Rebecca F. Dye

2014 2015 

2 2

 

COMMISSIONER 

Richard A. Lidinsky, 

Jr.

2014 2015 

1 2

 

COMMISSIONER

 William P. Doyle

2014 2015 

2 2

CHAIRMAN

Mario Cordero

2014 2015 

3 3

Office of the 

Inspector General

2014 2015 

2 3 

Office of Equal 

Employment 

Opportunity

2014 2015 

1 1

Office of the 

Managing 

Director

2014 2015 

9 9

 

COMMISSIONER

Michael A. Khouri

2014 2015 

2 2

Office of the 

General 

Counsel

2014 2015 

10 10

Office of the 

Secretary

2014 2015 

8 8

Office of 

Administrative 

Law Judges

2014 2015 

3 3

Office of

Consumer 

Affairs & 

Dispute 

Resolution 

Services

2014 2015 

8 8

Office of 

Budget and 

Finance

2014 2015 

4 4

Office of 

Human 

Resources

2014 2015 

4 4

Office of 

Management 

Services

2014 2015 

4 4

Office of 

Information 

Technology

2014 2015 

8 8

Bureau of 

Certification 

and Licensing

2014 2015 

15 16

Bureau of 

Enforcement

2014 2015 

10 10

Bureau of Trade 

Analysis

2014 2015 

16 16

Area Representatives

Houston 

Los Angeles 

New Orleans 

New York 

Seattle 

South Florida

2014 2015 

8 9

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

Total FY 2014 Enacted: 120 FTEs 

Total FY 2015 Request: 124 FTEs

Administrative

Direction Technical

Direction
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FY 2015 BUDGET REQUEST

Appropriation Language, Salaries , and Expenses

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. 307), 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, $24,669,000 $25,660,000: Provided, That not to exceed $2,000 shall be available for 

official reception and representation expenses: Provided further, That, notwithstanding any other 

provision of law, the Federal Maritime Commission is authorized to collect user fees in this 

fiscal year and each fiscal year thereafter and may retain up to $300,000 per fiscal year of such 

fees for necessary and authorized expenses under this heading.

(Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 

2014.)
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FY 2013 FY 2014 FY 2015

Actual Enacted Request

FTE: Headquarters & Field 119 120 124

Cost: Salaries & Benefits $17,254,028.67 $17,717,000.00 $18,387,000.00

Non-Personnel Expenses $5,575,145.33 $6,952,000.00 $7,273,000.00

Total Cost $22,829,174.00 $24,669,000.00 $25,660,000.00

$18,937,727.14

Strategic Goal 1

$6,722,272.86

Strategic Goal 2

Federal Maritime Commission

FY 2015 Cost by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

92

Strategic Goal 1

Maintain an efficient and competitive international 

ocean transportation system

32

Executive Summary

FY 2015 FTE by FMC Strategic Goal

The FMC’s budget is focused on achieving the two strategic goals identified in its 2014-2018 

Strategic Plan. Summary information regarding the Strategic Goals, Objectives and Performance 

Measures can be found on Appendix E. 
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

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The FMC’s Fiscal Year (FY) 2015 Budget Request is $25,660,000 to support 124 fulltime 

equivalents (FTEs). This is an increase of $991,000 over the Commission’s 2014 appropriation 

level. A new provision would allow user fee collections up to $300,000 to be used for necessary 

and authorized agency expenses. 

Approximately 70% of the increase is comprised of non-discretionary items such as automatic 

salary and benefit increases, rent, building security, and contracted services for accounting and 

payroll and 1% is needed for supplies and legal publications. The remaining 29% of the increase 

is to implement mission-critical technology improvements and maintain critical maintenance and 

security of key databases. The Commission is in the midst of a delayed multiyear enhancement 

of its Information Technology (IT) systems which would dramatically streamline internal 

business processes, expand research and analysis capabilities, and make FMC information more 

accessible to the public. This transition to Enterprise Content Management (ECM) technology 

will drastically improve turnaround times and reduce application processing/registration errors 

due to current business processes which are labor and paperwork intensive. The new technology 

will enable instant access to documents, data, and the real-time status of applications, licenses, 

and registrations. It will also provide a modern and efficient business process for applicants and 

staff, saving time and money while also enabling the FMC to keep pace with the electronicbusiness practices of the industries it regulates.

As reflected in the chart on page 6, 96% of the Commission’s FY 2015 Budget Request is 

needed to meet payroll expenses, mandatory rent, telephones, interagency services, and critical 

commercial services. The remaining 4% is comprised of supplies and equipment (including IT 

hardware and software) and official travel. Funding resources needed for fiscal years 2013 

through 2015 by object class are provided on Appendix C. To the extent possible, costs have 

been straight-lined. However, additional funding is needed for investments in mission-critical, 

technologies (both software and hardware) for the Commission to effectively and efficiently 

carry out its statutory duties.
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While the first strategic goal concerning competition encompasses two key programs, most of 

the Commission’s programs are covered by the second strategic goal which is protecting the 

shipping public. As reflected on page 7, of the total FY 2015 request, $6,722,273 and 32 FTEs

are needed to support Strategic Goal 1, Maintain an efficient and competitive international ocean 

transportation system, and $18,937,727 and 92 FTEs are needed to support Strategic Goal 2, 

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve 

shipping disputes. 

This FY 2015 Budget Request includes a number of charts to explain the funding and FTE 

resources needed to meet our Strategic Goals, specifically Appendices A and B provide detailed 

funding and FTE requirements at the program level. Appendix D provides funding by program 

areas and the relationship of the Commission’s obligations to outlays by fiscal year. Appendix F

provides the Commission’s Workload Summary statistics, and Appendix G is the Certification of 

the Office of the Inspector General’s FY 2015 Budget Request.

Salaries & Benefits, 

72%

Travel & 

Transportation, 1%

Rent & 

Communications, 

Interagency 14%

Services, 5%

Commercial 

Services, 5%

Supplies & 

Equipment, 3%

Allocation of Requested Funds
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Strategic Goal 

#1 

$6,722,272.86 

Strategic Goal 

#2 

$18,937,727.14 

Funding Request by Strategic Goal

Maintain an efficient and 

competitive international 

ocean transportation 

system

Protect the public from unlawful, 

unfair and deceptive ocean 

transportation practices and resolve 

shipping disputes

Strategic Goal 

#1 

31.97

Strategic Goal 

#2 

92.03

FTE Request by Strategic Goal

Protect the public from unlawful, 

unfair and deceptive ocean 

transportation practices and resolve 

shipping disputes

Maintain an efficient and 

competitive international 

ocean transportation 

system
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

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The FMC’s activities are driven by the goals and objectives of its Strategic Plan. Accomplishing 

our strategic goals is essential to ensuring a competitive ocean transportation system, facilitating 

America’s international commerce, and encouraging reliable liner service for U.S. exporters and 

importers. The implementation of those goals also directly supports the President’s commitment 

to economic growth and job creation. Commission programs related to monitoring international 

oceanborne trade conditions directly and indirectly advance the President’s National Export 

Initiative by promoting access to foreign markets for American exports and efficient supply 

chains for the importation of goods for domestic production and consumption.

The Commission consistently reaches out to the shipping industry and other government entities 

to educate these groups on the statutes it implements, as well as to address any issues that may 

arise. Commissioners and staff address various industry groups as speakers and panelists to 

provide information on the latest trends and issues related to Commission activities.

Competition and Foreign Practices

The focus of the Commission’s program of reviewing and monitoring carrier and MTO 

agreements is part of Strategic Goal 1 (maintaining an efficient and competitive international 

ocean transportation system and the objective of enhancing trade efficiency through the use of 

various types of agreement authority). Agreement filings in 2014 and 2015 are expected to reach 

approximately 150 per year (see Appendix A for these and other workload statistics). During FY 

2015, the Commission will continue to monitor key U.S. trade lanes, and review and analyze the 

competitive impact of agreements. In particular, the Commission will exercise close oversight of 

the increasing operational cooperation occurring among ocean carriers as the global liner trades 

continue to rapidly evolve. With increasing pressure on consolidation in the industry, 

environmental concerns, port congestion, and rising energy costs, the Commission is particularly 

sensitive to the impact on the nation’s exporters and their need for efficient, and competitive

ocean transportation in reaching foreign markets. 

The Commission monitors foreign laws and practices to determine whether there are any unjust 

non-market barriers to trade, and takes action where appropriate. It also classifies controlled 

carriers subject to section 9 of the Shipping Act of 1984. Common carriers that are owned or 

controlled by foreign governments are required to adhere to certain requirements under the 1984 

Act, and their rates are subject to Commission review. The Commission is particularly 

concerned with foreign restrictions that unjustly disadvantage U.S. interests.

Vessel-operating common carrier (VOCC) service contracts and non-vessel-operating common 

carrier (NVOCC) Negotiated Service Arrangements (NSAs) are required to be filed with the 

Commission. Under service contracts and NSAs, shippers make a commitment to provide a 

certain volume or portion of cargo over a fixed period of time, and carriers and NVOCCs 

commit to a specified rate and a defined service level. These confidential contracts and 

arrangements are filed into the Commission’s automated Service Contract Filing System 

(SERVCON). 

During fiscal years 2014 and 2015, the Commission expects to receive SERVCON filings of

50,000 service contracts and 565,000 contract amendments, 1,650 original NSAs, and 2,400 

amendments.
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In fiscal years 2014 and 2015, the FMC will continue to monitor service contracts and tariffs in 

key trades as barometers of market cycles and shifts in the balance of supply and demand. This 

information is important in helping the Commission carry out its statutory responsibility of 

prohibiting unreasonable increases in rates or unreasonable reductions in service by parties to 

agreements. 

Enforcement and Alternative Dispute Resolution

The first objective of Strategic Goal 2 is to identify and take action to end unlawful, unfair and 

deceptive practices. In fiscal years 2014 and 2015, the FMC will continue enforcement actions 

against those who pursue market-distorting, fraudulent, and anti-competitive practices harmful to 

the industry and the public. The Commission will advance initiatives aimed at 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. 

The FMC will continue to promote its compliance-focused program to monitor and audit ocean 

common carrier, NVOCC, and ocean freight forwarder (OFF) operations. This program 

conducts up to 130 OTI audits each year, and is well received by the regulated industry. It 

emphasizes correction of routine tariff matters and prompt compliance with reporting, licensing, 

and bonding requirements. The FMC annually audits for compliance approximately 2.5% of the 

nearly 6,000 licensed and bonded OTIs currently registered with the Commission. 

The FMC’s regional area representatives (ARs) will continue to facilitate the resolution of 

informal complaints and disputes, and investigate unlawful practices by carriers, MTOs, and 

OTIs. In their outreach role, the ARs will continue, together with the Office of Consumer 

Affairs Dispute Resolution Services (CADRS), to educate maritime transportation users and 

providers on FMC statutes and regulations, assist shippers with access to transportation services, 

and help address any transportation disputes that may arise.

The Commission entered into a memorandum of understanding (MOU) with the Federal Motor 

Carrier Safety Administration (FMCSA) in March 2012 to address fraud in the movement of 

household goods. Pursuant to the MOU, complaints received by FMCSA involving international 

ocean shipments are referred to the FMC. The MOU also provides mechanisms for joint 

educational initiatives such as placement of information on the FMCSA’s protectyourmove.gov

website regarding international moving. 

The FMC will continue to expand its participation in security initiatives as they relate to U.S. 

ocean commerce. Specifically, the Commission is working to coordinate the use of available 

database systems with other agencies engaged in homeland security to improve identification of 

entities providing and utilizing maritime transportation services. To facilitate these activities, an 

MOU between Customs and Border Protection (CBP) and the FMC was recently updated and 

expanded to provide more efficient utilization of existing systems and services. During FY

2013, the FMC also completed its first full year under a formal MOU with the Census Bureau, 

U.S. Department of Commerce, providing the FMC with access to the Census’ Automated 

Export System (AES) database. The MOU accommodates and respects Census’ ongoing 
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concerns for data security in any subsequent handling and use of otherwise confidential U.S. 

export shipment data. 

The FMC anticipates that requests for facilitation and commercial arbitration will increase in 

fiscal years 2014 and 2015 due to outreach efforts, as well as to revisions to the Commission’s 

procedural rules, which may encourage parties to seek the assistance of CADRS to reach 

settlement of a dispute.

Efforts to further expand awareness of the Commission’s Alternative Dispute Resolution (ADR)

services will continue through internal and external education programs, training, and other 

appropriate methods. Use of mediation will be promoted to assist in resolving formal 

proceedings, service contract matters, and other significant disputes. 

Further, the Commission is working to launch an educational webinar series to educate 

consumers and regulated entities regarding regulations, shipping trends, best practices, and the 

effective use of FMC services to resolve shipping disputes.

Licensing and Certification

The second objective of Strategic Goal 2 is to prevent public harm through licensing and 

financial responsibility requirements. The two major programs under this objective are licensing 

of OTIs as mandated by the Shipping Act, and certification of passenger vessel operators 

(PVOs). OTIs are transportation middlemen for oceanborne cargo moving in the U.S.-foreign 

trades. To become licensed by the Commission, an OTI must establish that it has the necessary 

character to render OTI services as well as establish its financial responsibility by means of a 

bond, insurance, or other instrument, and demonstrate a minimum of three years of experience in 

ocean transportation intermediary activities in the U.S. 

Presently, there are approximately 6,000 domestic and foreign OTIs regulated by the 

Commission. Nearly 700 licensing transactions were processed in 2013. This number is 

projected to increase at an average rate of approximately 5% through 2015. In FY 2013, the 

Commission required foreign-based unlicensed NVOCCs to register every three years. 

Currently, there are over 1,200 of these foreign-based registered entities. The FMC is currently 

working with contracted IT developers to create a more robust and efficient electronic OTI 

licensing system. Current databases will be assimilated into the new system, which will not only 

be more technologically efficient, but also will remove the stovepipes between all existing 

systems, thus eliminating the current need for duplicate data entry. The enterprise platform 

solution’s foundation, the enterprise store, was completed in FY 2013, which will be the 

repository for the Commission’s critical data. Future development initiatives can then be added 

on to the existing foundation. Once established the system will virtually eliminate the need to 

generate thousands of paper copies of applications, and associated documents, as well as 

mailings associated with them. The application process itself will be both less burdensome and 

speedier for the regulated public.

With regard to PVOs, evidence of financial responsibility is required for vessels which have 

berth or stateroom accommodations for 50 or more passengers, and embark passengers at U.S. 

ports and territories. Certificates of performance cover financial responsibility for the 
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indemnification of passengers for nonperformance of transportation. This requirement also helps 

prevent unscrupulous or financially weak operators from serving U.S. ports. The current PVO 

program encompasses 204 vessels and 40 operators with aggregate evidence of financial 

responsibility coverage in excess of $326 million for nonperformance and over $712 million for 

casualty. The FMC 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.

The number of PVOs in the program is expected to remain constant in fiscal years 2014 and 

2015. The Commission recently changed its PVO rules by adjusting the coverage amounts and 

implementing five-year expiration on PVO performance certificates. The Commission will 

continue to seek ways to enhance PVO monitoring procedures during 2014 and 2015. 

Coincident with the accomplishment of these objectives, the Commission will focus on reducing 

direct and indirect regulatory burdens, and introducing innovative information technologies for 

greater operational efficiency and transparency. 

Reducing Regulatory Burden

The FMC’s regulatory processes are under constant review. As economic conditions alter the 

state of our trades, regulations are revised to respond to new conditions. As part of an ongoing 

Plan for Retrospective Review of Existing Rules (initiated in FY 2012), the FMC will review, 

evaluate and make recommendations concerning the filing and processing of agreements, 

quarterly monitoring reports, and agreement meeting minutes. A review of the regulations 

governing service contracts and NVOCC service arrangements commenced in FY 2013. A

review of Marine Terminal Operator Schedule regulations is planned to begin in FY 2015.

In fiscal years 2014 and 2015, the Commission will: (1) implement the recent rule changes to 

the passenger vessel program and seek alternative ways to enhance PVO monitoring procedures; 

(2) review suggested amendments to the regulations regarding OTI licensing and financial 

responsibility requirements in light of changed industry circumstances; (3) continue efforts to 

develop and implement an improved electronic application process for both OTIs and PVOs; 

(4) review industry suggestions regarding service contract and NVOCC service arrangement

regulations intended to make the rules more efficient and less burdensome; and (5) launch an 

initiative to evaluate potential changes to the agreement processing, review and monitoring 

regulations, and develop recommendations for improvement, including possible electronic filing 

of agreements. 

Applying Innovative Technologies

In fiscal years 2014 and 2015, the FMC must continue the multiyear enhancement of its IT 

systems. As indicated previously, much of this work will involve a transition to the use of ECM 

technology. In connection with increasing the public’s accessibility to FMC information, the 

Commission will begin implementing a plan to upgrade the website and document repository in 

fiscal year 2015.
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Planned FMC IT actions for FY 2014 and 2015 include efforts to:

continue to develop and deploy the Enterprise Content Management or ECM technology, 

which will consolidate all OTI applications and renewal processes, enhancing the ability 

of applicants to file electronically, reducing errors and enabling staff to significantly 

increase efficiency in processing applications and renewals for approximately 6,000

licensed/registered OTIs;

build and deploy a new Service Contract Filing System for ease of filing, and optimize 

the internal architecture of SERVCON, particularly the search functionality needed to 

keep pace with the rapid accumulation of records;

modernize and expand the Regulated Persons Index (RPI), a critical database that 

contains up-to-date records of licensed OTIs (ocean freight forwarders and NVOCCs), 

ocean common carriers, MTOs and other entities, which is used by both FMC staff and 

the shipping public;

develop and implement an updated CADRS case tracking system for responsive handling 

of consumer complaints;

design and deploy an updated Automated Tariff Registration System (Form-1) for 

VOCCs, NVOCCs, conferences, and MTOs; 

migrate IT security standards from the Certification and Accreditation (C&A) process to 

the FedRAMP process for all applicable systems;

modernize the FMC IT infrastructure to enhance the user experience and availability of

mission-critical software applications;

enhance IT systems with respect to agreement filing and trade monitoring programs in 

order to streamline internal business processes;

develop a partnership to establish shared services with other Federal agencies to provide 

disaster recovery and continuity of operations support; and

develop and implement a plan to upgrade the FMC’s current internet hosting, 

maintenance, and public document repository solution.
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FY 2013 ACCOMPLISHMENTS 

Competition and Foreign Practices

Under Strategic Goal 1, the Commission is committed to maintaining an efficient and 

competitive international ocean transportation system and enhancing trade efficiency through the 

use of various types of agreement authority. Competitive ocean transportation facilitates 

commerce, economic growth, and job creation. Competition among participants in U.S. liner 

trades fosters competitive rates and encourages a variety of service offerings for the benefit of 

U.S. exporters and importers, and ultimately, consumers. The 1984 Act grants ocean carriers 

and MTOs’ limited antitrust immunity for activities pursuant to agreements they file with the 

Commission. Carrier and MTO agreements are subject to competition analyses and subsequent 

monitoring of their activities to guard against possible abuse of that limited immunity, to avoid 

unreasonable increases in transportation costs or decreases in transportation services, and to 

guard against other activities prohibited by the 1984 Act. 

Trade Oversight and Industry Research 

In fiscal year 2013, FMC major agreement oversight activities included: 

conducting a competition impact analysis of an agreement relating to the Port of Lake 

Charles, Louisiana’s changes to local stevedoring services;

researching and drafting a competition analysis of the G6 Alliance Agreement involving 

operational cooperation among the members of two major global alliances serving the 

Asia/U.S. East Coast trade;

preparing a formal Request for Additional Information (RFAI) to facilitate an economic 

analysis of a proposed Transpacific Stabilization Agreement (TSA) amendment to 

incorporate the transpacific westbound trade into the existing eastbound TSA agreement; 

reviewing monthly vessel data in the U.S. – Australia/New Zealand trade submitted under 

a previous Commission Order and revised related capacity charts for data through 2012

to ensure that the activities of carrier agreements in the trade did not create anticompetitive conditions; 

conducting a review of data and meeting minutes provided by three global alliances 

under the Commission’s January 2011 Order, and evaluating the extent of the Order’s 

reporting requirements to ensure adequate data is obtained for competition analyses;

conducting semi-annual information meetings with representatives of the TSA and 

Westbound Transpacific Stabilization Agreement (WTSA) to closely monitor the 

activities of these major agreements in the largest U.S. trade;

preparing an impact analysis of the Los Angeles and Long Beach Port Infrastructure and 

Environmental Programs Cooperative Working Agreement and establishing reporting 

requirements to monitor activities under the agreement;

preparing an RFAI on an amendment to the Consolidated Chassis Management Pool 

Agreement (CCM), which was subsequently withdrawn by the agreement members; and
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conducting annual meetings with representatives of the West Coast MTO Agreement to 

monitor and review the PierPass program and other relevant matters relating to the 

agreement.

The CCM filed an amendment in 2013 to change its model for governance of its regional chassis 

pools which elicited comments from maritime labor, motor carrier associations, and others. 

Given potential concerns regarding the impact of the CCM amendment, the Commission issued a 

formal RFAI to CCM. In addition, the Commission is continuing to monitor the availability of 

chassis, as carriers move away from providing them to their shippers.

Related research and reports included: 

preparing internal quarterly economic and trade reports, as well as non-restricted versions 

for use by the interagency Committee on the Marine Transportation System; and

researching agricultural export data for use in Docket No. 12-07 regarding Container 

Freight Rate Indices and participating in the Container Freight Derivatives Association’s 

annual forum.

Following up on its FY 2012 Study of the 2008 Repeal of the Liner Conference Exemption from 

European Union Competition Law, the FMC has continued to update data useful for evaluating

the impacts, if any, of the European Union’s repeal of its block competition law exemption for 

liner conferences. In connection with this, the validity of difference-in-differences methodology 

for expanding the study was evaluated. In 2014 and 2015, the Commission will assess the 

concerted activities of carriers, particularly in the transpacific trades, to ensure that agreements 

are not likely to lead to unreasonable increases in rates or unreasonable reductions in service. In 

particular, the Commission will exercise close oversight of the increasing operational 

cooperation occurring among ocean carriers as the global liner trades continue to rapidly evolve. 

In addition, the Commission will continue to monitor developments under the CCM and the 

availability of chassis and equipment as more carriers discontinue providing chassis service to 

shippers.

Further, potentially restrictive activities of foreign governments may create conditions 

unfavorable to U.S. oceanborne trade and are monitored by the Commission to determine 

whether any action is necessary to remedy such activities. In fiscal year 2013, the Commission

informally pursued several matters that involved potentially restrictive foreign practices 

including new legislation, new interpretations of existing legislation, and new regulations of nondomestic carriers’ terminal handling charges. The FMC continued to monitor and participate, 

both formally and informally, in international agreement negotiations that could affect foreignborne cargo shipments to the U.S. In addition, the Commission tracked consumer inquiries 

regarding possible foreign restrictive shipping practices.

The FMC continues its international outreach efforts by attending and coordinating events with 

foreign embassies and counterparts, and monitoring foreign laws and practices to determine

whether there are any unjust non-market barriers to trade. 
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Agreements, Contracts, and Tariffs

During fiscal year 2013, the FMC received 127 agreement filings, including amendments to 

existing agreements. One hundred thirty-one filings were reviewed, evaluated, and processed 

during the year, including those pending at the end of the prior fiscal year. (See Appendix A for 

these and other workload statistics.)

In addition, 48,802 service contracts and 556,285 contract amendments were filed into

SERVCON. The Commission processed 1,635 original NVOCC Service Arrangements, and 

2,019 NSA amendments filed by 95 NVOCCs. 

The Commission received, processed, and reviewed 2,279 Form FMC-1 filings, making the 

locations of those tariffs available to the public through the website. By the end of the fiscal 

year, 5,356 active/current tariff locations were posted to the website.

Compliance audits of NVOCC tariffs were conducted and NVOCC tariff rules were monitored in 

connection with the Commission’s regulations allowing NVOCCs to “opt out” of publicly 

posting rate tariffs on the internet so long as they use NRAs exclusively, maintain their rules 

tariffs free of charge, and comply with other requirements. At the end of the fiscal year, 525 

NVOCCs had filed prominent notices or a rule in their respective tariffs indicating that they have 

invoked the NRA exemption, which reduced the regulatory burden on these OTIs. 

Enforcement and Alternative Dispute Resolution

Pursuant to Strategic Goal 2, the FMC engages in a variety of activities that protect the public 

from financial harm, including assisting in the resolution of disputes related to the shipment of 

goods or the carriage of passengers; investigating and prosecuting unreasonable or unjust 

practices, and ruling on formal complaints alleging violation of the 1984 Act. This contributes to 

the integrity and security of the nation’s import and export supply chains and the ocean 

transportation system by identifying unlicensed operations. In addition, the FMC ensures 

financial coverage of passenger vessels to indemnify passengers in the event of nonperformance. 

Pursuant to these regulatory responsibilities, the Commission undertook a number of significant

actions during fiscal year 2013 to address issues affecting American consumers who ship their 

personal goods overseas or take cruises.

Investigations and Enforcement Proceedings

During fiscal year 2013, Area Representatives handled hundreds of informal complaints typically 

alleging unlawful activity. When possible, compliance with statutory and regulatory 

requirements was achieved informally. In other instances, investigative cases were opened and 

the Area Representatives conducted investigations to determine any unlawful activity. Most of 

these investigations were resolved informally, some with compromise settlements and civil 

penalties.
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Major investigations completed during the fiscal year were directed at household goods movers 

operating as unlicensed OTIs, including those VOCCs and licensed NVOCCs that unlawfully 

provided service to unlicensed movers. In Docket No. 12-01, the Commission remanded an 

Initial Decision for further proceedings to determine whether respondents violated section 

10(a)(1) of the 1984 Act by allowing access to service contracts by an unlicensed, unbonded 

NVOCC. Also in 2013, the Commission issued an Order of Investigation to determine whether 

respondent violated section 10(a)(1) of the 1984 Act by unlawfully accessing service contracts to 

which it was neither a signatory nor an affiliate. 

Commission investigations regarding the car carrier trades between Japan and the U.S. (and in 

other U.S. trades inbound as well as outbound) culminated in two separate settlements relating to 

unfiled carrier agreements, netting $2,325,000 in penalty payments. Cumulatively, the 

Commission successfully collected more than $3 million in penalties, exceeding the recent high 

collections of $2,187,500 registered in FY 2011. 

At the beginning of fiscal year 2013, nine enforcement cases were pending final resolution by the 

Bureau of Enforcement (BOE). The Bureau was party to five formal proceedings, and there were 

12 matters pending which BOE was monitoring or for which it was providing legal advice. 

During the fiscal year, 17 new cases were referred for enforcement action or informal 

compromise; 13 were compromised and settled, administratively closed, or referred for formal 

proceedings; and 13 enforcement cases were pending resolution at fiscal year’s end. Also, one

formal proceeding was initiated; three formal proceedings were completed, and three were 

pending at the end of the fiscal year. Additionally, BOE opened six matters involving 

monitoring or legal advice during the fiscal year, completed or closed two such matters, and 16 

were pending on September 30, 2013.

There were 14 formal proceedings pending before the administrative law judges (ALJs) at the 

beginning of the fiscal year. During the year, six new formal proceedings were added and two

formal proceedings were remanded by the Commission. The ALJs issued 13 initial decisions or 

orders subject to review by the Commission in 10 proceedings. 

The FMC continued to address and implement the recommendations of Fact Finding 

Investigation No. 27, Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices 

Related to the Movement of Household Goods or Personal Property in U.S.-Foreign Oceanborne 

Trades. Pursuant to an MOU, the FMC continued to cooperate with FMCSA to provide 

enhanced protection and assistance for consumers who move their household goods overseas. 

Also in cooperation with other agencies, the Area Representatives participated in various 

enforcement initiatives sponsored by local law enforcement, the U.S. Department of Justice, the 

Department of Homeland Security (including CBP and Immigration and Customs Enforcement), 

the Department of Commerce, and the FMCSA. This participation and sharing of information 

contributed positively to the investigation of a wide range of unlawful activities.
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Ombuds Services and Educational Outreach

During fiscal year 2013, 1,211 requests for ombuds services were received. These included 116

passenger complaints about cruise line issues, 857 complaints with respect to household goods 

shipments, and 229 complaints involving other cargo shipment matters. Cargo shipment 

complaints continued to be of increasing complexity. Problems involving OTIs with 

overextended finances and inability to complete the ocean transportation continued to be a 

source of complaint. In addition, many household goods complaints pertained to initial charges 

quoted, vis á vis the actual charges billed, often due to measurement discrepancies. The 

Commission also convened 13 mediation matters. It is anticipated that the number of mediation 

matters handled by CADRS will increase due to a revision in the Commission’s procedural rules 

that requires an initial mediation conference at the outset of formal private complaint 

proceedings. The large increase in household goods matters was related to the failure of a single 

large ocean transportation intermediary that began in the reporting period.

The Commission published nine on-line consumer alerts regarding complaints against certain 

household goods movers and what cruise passengers can expect by way of compensation for 

cruise line service disruptions. These alerts provide useful public information and increase 

awareness of available FMC assistance services.

The Area Representatives made several educational presentations to industry audiences, 

explaining OTI licensing requirements and compliance with the new NRA Tariff Rate 

Exemption. They also worked closely with a number of law enforcement agencies, including 

local jurisdictions such as the Federal Bureau of Investigation, the Houston Police Department, 

New Jersey State Police, New York City Police Department, and other Federal agencies. The 

South Florida Area Representatives continued to provide valuable expertise and assistance to the 

Export-Import Bank of the United States (Ex-Im Bank) to facilitate the investigation by Ex-Im 

Bank’s IG Office of several cases of fraud against the U.S. government.

The FMC improved the quality, clarity, and accessibility of information provided to the shipping 

public via its redesigned website. A new website search engine was implemented that 

significantly improved the site’s usability for online searches – this initiative had no associated 

cost, as an existing GSA contract was leveraged. In addition, a new ZIP code geo-search tool 

was developed and launched to help the shipping public locate FMC-licensed and bonded ocean 

transportation intermediaries.

Ocean Transportation Intermediaries 

There are approximately 6,000 licensed/registered and bonded OTIs (domestic and foreign) 

regulated by the Commission. Nearly 700 licensing transactions were processed during the year. 

As part of its continuing outreach effort, the FMC also responded to over 6,800 inquiries 

regarding licensing and related OTI issues during this period.

In FY 2013, the Commission received 336 new OTI applications and 259 amended applications, 

issued 267 new OTI licenses, 129 amended licenses, and revoked 263 licenses. As of 

September 30, 2013, 994 ocean freight forwarders (OFFs); 1,764 U.S. NVOCCs; 1,918 joint 

NVOCC/OFFs; and 75 foreign NVOCCs held active OTI licenses. An additional 1,259 foreign-
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based NVOCCs are registered and maintain proof of financial responsibility on file with the 

Commission, but choose not to be licensed. Over the last three years, the number of licensed and 

registered OTIs has increased by nearly 9%.

U.S. NVOCCs may file riders to their existing NVOCC bonds to meet financial responsibility 

requirements imposed by the Chinese government. By the end of FY 2013, 326 of these riders

were received, providing optional proof of financial responsibility for NVOCCs serving the 

U.S.-China trade; and 35 riders were terminated. 

The OTI licensing process was streamlined, and the time needed to reach a licensing decision

was reduced. The goal was to complete 75% of all OTI license applications within 60 calendar 

days during fiscal year 2013. Despite reduced staffing, the Commission completed over 87% of 

all OTI applications within 60 business days, exceeding that goal. 

The compliance audit program continued as a major focus. This program reviews the operations 

of licensed OTIs to assist them in complying with statutory requirements and the Commission’s 

rules and regulations. The audit program also reviews entities holding themselves out as 

VOCCs, where there is no indication of actual vessel operations. During the fiscal year, 82 

audits were commenced and 74 audits were completed (including those carried over from fiscal 

year 2012). 

On May 31, 2013, the Commission issued an Advance Notice of Proposed Rulemaking 

(ANPRM) on OTI licensing and financial responsibility requirements in accordance with the 

Plan for Retrospective Review of Existing Rules. 

A Final Rule, imposing registration requirements on foreign-based unlicensed NVOCCs and 

extending the NRA tariff publication exemption to such NVOCCs, became effective on July 19, 

2013.

Passenger Vessel Operators

The Commission approved and issued eight casualty certificates and 11 performance certificates

during fiscal year 2013. The program encompassed 204 vessels and 40 operators, which had 

aggregate evidence of financial responsibility coverage in excess of $326 million for 

nonperformance and over $712 million for casualty. On February 21, 2013, the Commission

issued a final rule increasing the maximum coverage requirement from $15 million to $30 

million per cruise line, and required that this cap be adjusted every two years based on the 

Consumer Price Index for All Urban Consumers (CPI-U). This increase reflects the effects of 

inflation and the growth of the cruise industry since the current $15 million cap was set in 1990. 

Further, the Commission initiated a 5-year expiration date for all passenger vessel certificates. 

Information Technology

During the fiscal year, the Commission prepared a 2014-2018 Information Resources 

Management (IRM) Strategic Plan in support of the FMC’s Strategic Plan covering the same 

time period. The IRM plan, per OMB Circular A-11, describes how IRM “activities help 

accomplish agency missions, and ensure IRM decisions are integrated with organizational 
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planning, budget, procurement, financial management, human resources management, and 

program decisions.” A major element of the plan is to significantly upgrade internal IT systems

through the implementation of an ECM solution to improve data support for all Commission 

programs and research projects, as well as to simplify stakeholder filing processes.

The Commission continued to enhance its information technology capabilities in a number of 

areas, including undergoing a multiyear transition to use ECM technology for managing its 

business activities and information needs. Important IT activities included: 

completing a requirements review and planning to determine technology requirements for 

the adoption of an ECM solution to consolidate the FMC’s fractured information 

applications and technology systems; 

completing the initial components of the FMC-18 Application System enhancements and

enterprise data store, which is integral to the Commission’s ECM solution; 

migrating/converting staff to a new cloud-based email and collaboration service; and

completing a business process reengineering assessment to identify requirements for the 

transition to ECM-based tools for records/document management, workflow and content 

management, and collaboration.

Additionally, the MOU with CPB was updated to allow data from CPB’s Automated 

Commercial Environment (ACE) to be accessed directly to the FMC for use in fulfilling its 

statutory and regulatory duties and responsibilities, including trade data that facilitates the 

Commission’s oversight of carrier agreement filings. This direct transfer of data will conserve 

resources of both agencies and ensure greater trade compliance with the SAFE Port Act.

Representative Rulemakings, Adjudications, and Litigation

PVO Financial Responsibility Requirements for Nonperformance of Transportation

[Docket 11-16]

Effective April 2, 2013, the cap was adjusted for PVO financial coverage requirements to 

$30 million over a two-year period, thereafter to be subject to adjustment based on the CPI-U

every other year.

NVOCC Negotiated Rate Arrangements [Docket 11-22]

On July 18, 2013, the Commission issued a Final Rule revising the Commission's rules with 

respect to NVOCC negotiated rate arrangements. 78 Fed. Reg. 42886 (Jul 18, 2013). While 

the Final Rule imposes registration requirements on foreign-based unlicensed NVOCCs, it 

extends, effective July 19, 2013, the exemption from the Shipping Act's tariff publication 

requirement to foreign-based unlicensed NVOCCs that agree to negotiated rate 

arrangements.
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Amendments to OTI Licensing and Financial Responsibility Requirements [Docket 13-

05]

An ANPRM was issued to evaluate whether certain rules governing the licensing, financial 

responsibility requirements and duties of OTIs should be amended. A 30-day extension for 

public comments was granted, and comments were due on or before August 30, 2013. A 

number of comments were received, and are now being reviewed.

EuroUSA Shipping, Inc., Tober Group, Inc., and Container Innovations, Inc. – Possible 

Violations of Section 10 of the Shipping Act of 1984 and the Commission’s Regulations at 

46 C.F.R. § 515.27 [Docket No. 06-06]

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 1984 Act and regulations 

at 46 C.F.R. § 515.27, by knowingly and willfully accepting cargo from or transporting cargo 

for the account of an OTI that did not have a tariff and bond, as required by sections 8 and 19 

of the Act. Commission decisions with respect to respondents EuroUSA and Container 

Innovations became administratively final in 2009 and 2010, respectively. With regard to 

respondent Tober, in an Initial Decision on Remand issued December 31, 2012, the ALJ 

determined (1) that the entities from which respondent Tober accepted shipments did not act 

as non-vessel-operating common carriers in connection with the involved shipments, and 

therefore Tober did not violate section 10(b)(11) of the Shipping Act; and (2) Tober violated 

section 10(b)(2)(A) of the Act in connection with 279 shipments. The ALJ imposed a civil 

penalty of $433,000 for 279 violations. In an Order Affirming in Part, Reversing in Part, and 

Vacating in Part Initial Decision on Remand, issued September 10, 2013, a majority of the 

Commission determined that Tober violated sections 10(b)(11) and 10(b)(2)(A) of the 

Shipping Act, and imposed a civil penalty of $1,500,000 for 255 violations of section 

10(b)(11), and 279 knowing and willful violations of section 10(b)(2)(A).

OC International Freight, Inc.; OMJ International Freight, Inc.; and Omar Collado 

[Docket No. 12-01]

This proceeding was instituted by an Order of Investigation and Hearing served on April 2, 

2012, to determine whether respondents knowingly and willfully obtained ocean 

transportation at less than the rates and charges that would otherwise be applicable by 

permitting unrelated entities to unlawfully access OMJ’s service contracts; operated as an 

OTI without a license and bond; and whether to affirm the denial of the application of OC for 

an OTI license. On March 26, 2013, the ALJ issued an initial decision finding violations of 

section 19, but finding no violation of section 10(a)(1). On July 22, 2013, an Order 

Remanding for Further Proceedings was issued. The Commission affirmed the section 19 

violations, the issuance of a cease and desist order, and denial of OC’s license application. 

The Commission vacated the determination that Respondents did not violate section 10(a)(1) 

and the civil penalty. On October 30, 2013, the ALJ issued an initial decision on remand.

On November 21, 2013, Respondents filed Exceptions. On December 13, 2013, the 

Commission's Bureau of Enforcement reply was filed. A decision from the Commission is 

pending.
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Parks International Shipping, Inc., Cargo Express International Shipping, Inc. Bronx 

Barrels & Shipping Supplies Shipping Center Inc., and Ainsley Lewis aka Jim Parks

[Docket No. 06-09]

This proceeding was instituted by Order of Investigation and Hearing served September 19, 

2006, to determine whether Respondents provided transportation services as an NVOCC 

without obtaining an OTI license from the Commission and operated as a common carrier 

without publishing a tariff showing all of its active rates and charges. On February 26, 2013, 

the BOE filed exceptions to the Initial Decision on Remand. A final decision was issued 

September 16, 2013, affirming in part and reversing in part the ALJ’s Initial Decision on 

Remand. The Commission ordered Respondents to pay substantial civil penalties for 

violations of sections 8 and 19 of the Shipping Act.

Mitsui O.S.K. Lines Ltd. v. Global Link Logistics, Inc., Olympus Partners, L.P., Olympus 

Growth Fund III, L.P., Olympus Executive Fund, L.P., Louis J. Mischianti, David 

Cardenas, Keith Heffernan, CJR World Enterprises, Inc. and Chad J. Rosenberg [Docket 

No. 09-01]

On May 5, 2009, Mitsui filed a complaint alleging that Global Link, a licensed NVOCC, 

violated sections 10(a)(1) and 10(d)(1) by engaging in a practice it called “split routing” on 

multimodal shipments by issuing a bill of lading to a land carrier in the U.S., directing 

shipments to a destination other than the destination on the Mitsui through bill of lading. 

Mitsui alleged that as a result, Global Link used an unjust or unfair device or means to obtain 

ocean transportation for property at less than the rates or charges that would otherwise apply. 

Global Link filed crossclaims against the other respondents. On July 9, 2013, the ALJ issued 

an initial decision finding that Mitsui knew about the split routing practice. Therefore, 

Global Link had not used an unfair device or means to obtain the lower rates. The 

crossclaims were dismissed. On January 30, 2014, the Commission served an Order 

Adopting Initial Decision, in which it affirmed the ALJ's conclusion that Mitsui knew of the 

practice of split routing. The Commission, therefore, affirmed the ALJ's dismissal of Mitsui's 

Amended Complaint.

Anderson International Transport and Owen Anderson – Possible Violations of Sections 

8(a) and 19 of the Shipping Act [Docket No. 07-02]

This proceeding was instituted to investigate whether respondents violated sections 8, 19(a), 

and 19(b) of the 1984 Act and the Commission’s regulations at 46 C.F.R. Part 515 and Part 

520. The ALJ issued an Initial Decision finding that respondents violated section 19(a) of 

the 1984 Act by operating as an OTI without obtaining a license, and also violated section 

19(b) by operating as an OTI without providing proof of financial responsibility. On 

December 31, 2012, the ALJ issued an Initial Decision on Remand in which he determined 

that respondents violated section 19 of the Shipping Act, and imposed a civil penalty of 

$40,500 for 22 knowing and willful violations. On June 25, 2013, the Commission issued an 

Order Affirming in Part, Reversing in Part, and Vacating in Part Initial Decision on Remand, 

in which a majority determined that respondents acted as a non-vessel-operating common 
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carrier on the shipments involved, and violated sections 8 and 19 of the Act. The 

Commission imposed a civil penalty of $132,000 for 22 knowing and willful violations. 

City of Oakland v. Federal Maritime Commission [Docket No. 09-08]

On February 9, 2012, the City of Oakland filed a petition for review of the Commission’s 

Order in Docket 09-08, SSA Terminals, LLC and SSA Terminals (Oakland,) LLC (SSA 

Terminals) v. the City of Oakland, upholding the ALJ’s denial of its motion to dismiss on the 

ground of Eleventh Amendment sovereign immunity. The court granted SSA Terminals’ 

Motion to Intervene on March 29, 2012. Oral argument was held on April 9, 2013. On July 

26, 2013 the court denied the petition and affirmed the FMC. On July 31, 2013, a Notice of 

Voluntary Dismissal in Commission Docket 09-08 was signed and stipulated to by both 

parties pursuant to 46 C.F.R. section 502.72(a)(1). On August 20, 2013, the Commission 

determined to review the Notice. On September 23, 2013, the Commission's Administrative 

Law Judge issued an Initial Decision approving the settlement. On November 1, 2013, the 

Commission issued a Notice not to review the Initial Decision.
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APPENDICES

Appendix A: Resource Allocation by Program

Appendix B: FTE Allocation by Program

Appendix C: Obligations by Object Class

Appendix D: Relationship of Obligations to Outlays

Appendix E: Performance Measures by Strategic Goals

Appendix F: Workload Summary

Appendix G: OIG Certification
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Appendix A: Resource Allocation by Program

Strategic Goal # 1 Strategic Goal # 2

Maintain an 

efficient and 

competitive 

international 

ocean 

transportation 

system

Protect the public 

from unlawful, 

unfair and 

deceptive 

practices and 

resolve shipping 

disputes

Formal Proceedings

 Office of the Chairman $381,455.69 $470,426.09 $116,152.54 $464,610.16 $580,762.70 $110,336.61

 Office of the Commissioners $1,583,214.53 $1,818,371.86 $392,452.49 $1,569,809.96 $1,962,262.45 $143,890.59

 Office of the Secretary $1,119,800.74 $1,254,774.75 $258,524.48 $1,075,795.44 $1,334,319.92 $79,545.17

 Library $244,808.88 $213,903.76 $39,258.10 $58,887.14 $98,145.24 ($115,758.52)

 Office of Consumer Affairs and Dispute Resolution Services $1,237,340.16 $1,386,869.06 $0.00 $1,462,011.37 $1,462,011.37 $75,142.31

 Office of the General Counsel $2,103,480.09 $2,050,263.61 $2,067,922.21 $0.00 $2,067,922.21 $17,658.60

 Ethics $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

 Office of Administrative Law Judges $646,685.61 $637,773.32 $129,135.30 $516,541.20 $645,676.50 $7,903.18

Formal Proceedings Total $7,316,785.70 $7,832,382.45 $3,003,445.12 $5,147,655.27 $8,151,100.39 $318,717.94

Office of Equal Employment Opportunity $187,487.91 $190,159.93 $38,308.89 $153,235.56 $191,544.45 $1,384.52

Office of the Inspector General $571,981.27 $673,398.78 $75,133.74 $676,203.63 $751,337.37 $77,938.59

Operational and Administrative

 Office of the Managing Director $2,248,456.41 $2,304,979.23 $503,404.50 $1,654,043.34 $2,157,447.84 ($147,531.39)

 Bureau of Trade Analysis $2,776,979.11 $2,729,397.04 $1,648,636.76 $1,155,875.25 $2,804,512.01 $75,114.97

 Bureau of Certification and Licensing $2,139,673.83 $2,297,270.09 $0.00 $2,416,160.06 $2,416,160.06 $118,889.97

 Bureau of Enforcement $1,841,068.51 $1,880,073.28 $0.00 $1,921,178.62 $1,921,178.62 $41,105.34

 Area Representatives $1,807,257.78 $1,763,039.06 $374,308.31 $1,497,233.24 $1,871,541.55 $108,502.49

 Office of Information Technology $1,859,579.42 $2,971,986.64 $670,571.63 $2,682,286.53 $3,352,858.16 $380,871.52

 Office of Human Resources $627,042.06 $648,305.34 $132,182.26 $528,729.03 $660,911.29 $12,605.95

 Office of Budget and Finance $696,686.13 $689,393.58 $132,835.47 $531,341.86 $664,177.33 ($25,216.25)

 Office of Management Services $756,175.87 $688,614.58 $143,446.19 $573,784.74 $717,230.93 $28,616.35

Operational and Administrative Total $14,752,919.12 $15,973,058.84 $3,605,385.11 $12,960,632.68 $16,566,017.79 $592,958.95

Total Cost $22,829,174.00 $24,669,000.00 $6,722,272.86 $18,937,727.14 $25,660,000.00 $991,000.00

The FMC’s FY 2015 budget request includes a proposed provision allowing user fee collections of up to $300,000 to be used for necessary and authorized agency expenses.

Resource Allocation by Program

FY 2015

Program/Office

FY 2013 

Actual

FY 2014 

Enacted

FY 2015 Request

FY 2015 

Request

Difference 

From FY 2014 

The Request by Strategic Goal and Program chart identifies the funding level requested for FY15 broken out by program office and strategic goal. The chart identifies FY15 changes over 

both the FY2013 actual and FY2014 estimated funding requirements.
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Appendix B: FTE Allocation by Program

Program/Office FTEs* Positions** FTEs Positions** FTEs Positions* FTEs Positions**

Headquarters 110.50 111.00 111.26 115.00 115.00 115.00 3.74 0.00

Area Representatives 8.44 8.00 8.25 9.00 9.00 9.00 0.75 0.00

Agency Total 118.94 119.00 119.51 124.00 124.00 124.00 4.49 0.00

Formal Proceedings

 Office of the Chairman 1.98 2.00 2.50 3.00 3.00 3.00 0.50 0.00

 Office of the Commissioners 6.45 7.00 7.42 8.00 8.00 8.00 0.58 0.00

 Office of the Secretary 6.82 7.00 7.50 8.00 8.00 8.00 0.50 0.00

 Library 0.98 1.00 0.98 0.00 0.00 0.00 -0.98 0.00

 Office of Consumer Affairs and Dispute Resolution Services 7.72 7.00 7.88 8.00 8.00 8.00 0.12 0.00

 Office of the General Counsel 10.77 10.00 10.13 10.00 10.00 10.00 -0.13 0.00

 Office of Administrative Law Judges 3.16 3.00 3.00 3.00 3.00 3.00 0.00 0.00

Formal Proceedings Total 37.88 37.00 39.41 40.00 40.00 40.00 0.59 0.00

Office of Equal Employment Opportunity 0.98 1.00 1.00 1.00 1.00 1.00 0.00 0.00

Office of the Inspector General 2.35 2.00 1.81 3.00 3.00 3.00 1.19 0.00

Operational and Administrative

 Office of the Managing Director 9.56 9.00 8.80 9.00 9.00 9.00 0.20 0.00

 Bureau of Trade Analysis

 Office of the Director 2.91 3.00 3.00 3.00 3.00 3.00 0.00 0.00

 Office of Service Contracts and Tariffs 3.80 3.00 3.50 4.00 4.00 4.00 0.50 0.00

 Office of Economics and Competition Analysis 6.84 7.00 6.35 6.00 6.00 6.00 -0.35 0.00

 Office of Agreements 2.26 3.00 2.58 3.00 3.00 3.00 0.42 0.00

 Bureau of Certification and Licensing

 Office of the Director 2.61 2.00 2.87 3.00 3.00 3.00 0.13 0.00

 Office of Passenger Vessels and Information Processing 4.89 6.00 5.50 6.00 6.00 6.00 0.50 0.00

 Office of Transportation Intermediaries 6.84 7.00 7.00 7.00 7.00 7.00 0.00 0.00

 Bureau of Enforcement 9.77 10.00 9.75 10.00 10.00 10.00 0.25 0.00

 Area Representatives 8.44 8.00 8.25 9.00 9.00 9.00 0.75 0.00

 Office of Information Technology 6.62 7.00 7.65 8.00 8.00 8.00 0.35 0.00

 Office of Human Resources 3.83 4.00 4.00 4.00 4.00 4.00 0.00 0.00

 Office of Budget and Finance 4.49 5.00 4.25 4.00 4.00 4.00 -0.25 0.00

 Office of Management Services 4.89 5.00 3.79 4.00 4.00 4.00 0.21 0.00

Operational and Administrative Total 77.74 79.00 77.29 80.00 80.00 80.00 2.71 0.00

Total FTEs and Positions 118.94 119.00 119.51 124.00 124.00 124.00 4.49 0.00

* Reflects reduced FTE levels due to agency-wide furlough necessitated by 2013 funding level.

** Denotes positions on September 30. 

FTE Allocation by Program

FY 2013 - FY 2015

FY 2013 FY 2014 FY 2015 Difference

The FMC’s FY 2015 budget request includes a proposed provision allowing user fee collections of up to $300,000 to be used for necessary and authorized agency 

expenses.

The FY 2015 request does not include any future legislative changes that could vest the FMC with additional statutory responsibilities.

The FTE and Positions by Program chart denotes the Commission's actual on board strength for FY2013 and estimates the FTEs and positions required for FY2014 

and FY2015.

Actual Enacted Request From FY 2014
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Appendix C: Obligations by Object Class

FY 2013 FY2014 FY2015

Category Actual Enacted Request

 (11.9) Full-time Permanent Employees $13,611,933.00 $14,002,000.00 $14,449,000.00 $447,000.00

 (11.3) Part-time and Temporary Employees $37,585.00 $0.00 $0.00 $0.00

 (11.7) Performance Awards $0.00 $0.00 $0.00 $0.00

 (12.1) Civilian Personnel Benefits $3,604,510.00 $3,715,000.00 $3,938,000.00 $223,000.00

Employees Total Personnel Compensation & Benefits $17,254,028.00 $17,717,000.00 $18,387,000.00 $670,000.00

 (21.0) Travel and Transportation of Personnel $103,511.00 $200,000.00 $200,000.00 $0.00

 (22.0) Transportation of Things (Express Mail) $11,500.00 $22,000.00 $22,000.00 $0.00

 (23.1) Rental Payments to GSA $3,189,345.00 $3,270,000.00 $3,323,000.00 $53,000.00

 (23.2) Rental Payments to Others $2,357.00 $0.00 $0.00 $0.00

 (23.5) Telephones (Local, Long Distance and Cellular) $221,760.00 $229,000.00 $232,500.00 $3,500.00

 (28.3) Postage $5,020.00 $5,000.00 $5,500.00 $500.00

 (24.0) Printing $106,047.00 $139,000.00 $139,000.00 $0.00

 (25.1) Consulting $157,763.00 $716,000.00 $808,000.00 $92,000.00

 (25.2) Purchase of Goods and Services from Commercial Accounts $437,820.00 $536,000.00 $565,000.00 $29,000.00

 (25.3) Purchase of Goods and Services from Government Accounts $1,069,175.00 $1,119,000.00 $1,181,000.00 $62,000.00

 (25.7) Equipment Maintenance $72,790.00 $55,000.00 $60,000.00 $5,000.00

 (26.0) Supplies and Materials $86,660.00 $112,000.00 $124,000.00 $12,000.00

 (31.0) IT Hardware and Software $111,398.00 $549,000.00 $613,000.00 $64,000.00

Travel and Administrative Expenses $5,575,146.00 $6,952,000.00 $7,273,000.00 $321,000.00

Total Expenses $22,829,174.00 $24,669,000.00 $25,660,000.00 $991,000.00

The FMC’s FY 2015 budget request includes a proposed provision allowing user fee collections of up to $300,000 to be used for necessary and 

authorized agency expenses.

The FY 2015 request does not include any future legislative changes that could vest the FMC with additional statutory responsibilities.

The Obligations by Object Class chart identifies the Commission's actual funding expenses for FY 2013, the estimated funding requirements for the 

FMC to complete its mission for FY2014 and FY2015. Costs are reported by object codes.

Travel and Administrative Expenses

Obligations by Object Class

FY 2013 - FY 2015

Rent, Communications and Utilities

Personnel Compensation and Benefits

Difference 

From FY2014
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[27]

Appendix D: Relationship of Obligations to Outlays

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operational and Administrative

Unobligated

 Budget Authority

 Obligations

 Outlays*

 Outlay Rate (Obligation to Outlay)**

 Obligation Rate

Total outlays for fiscal year 2008 disbursed in fiscal year 2013

Total outlays for fiscal year 2009 disbursed in fiscal year 2013

Total outlays for fiscal year 2010 disbursed in fiscal year 2013

Total outlays for fiscal year 2011 disbursed in fiscal year 2013

Total outlays for fiscal year 2012 disbursed in fiscal year 2013

Total outlays for fiscal year 2013 (actual)

 Outlays

* Represents Outlays for FY 2013 only

** Represents the percentage of FY 2013 obligations that were disbursed during FY 2013

93.71%

$21,392,875.52 $24,045,599.98

Grosss Outlays for FY 2013

$23,116,948.79

93.71% 93.71%

The FMC’s FY 2015 budget request includes a proposed provision allowing user fee collections of up to $300,000 to be used 

for necessary and authorized agency expenses.

The FY 2015 request does not include any future legislative changes that could vest the FMC with additional statutory responsibilities.

The Relationship of Obligations to Outlays identifies the actual outlay percentage for FY2013. The chart also depicts the 

estimated outlay in expenses for FY2014 and FY2015.

99.96% 100.00% 100.00%

$4,547.41

$23,713,907.47

$70,580.63

$2,245,554.81

$21,392,875.52

$349.10

$0.00

$10,251.00 $0.00 $0.00

$7,316,786.00 $7,832,382.00 $8,151,100.00

$14,752,919.00 $15,973,059.00 $16,566,018.00

$187,488.00 $190,160.00 $191,545.00

$571,981.00 $673,399.00 $751,337.00

Relationship of Obligations to Outlays

FY 2013 - FY 2015

FY 2013 

Actual

FY 2014 

Enacted

FY 2015 

Request

$22,839,425.00 $24,669,000.00 $25,660,000.00

$22,829,174.00 $24,669,000.00 $25,660,000.00
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[28]

Appendix E: Performance Measures by Strategic Goals

Strategic Goal Objective Performance 

Measures

2012 

Actual

2013 

Actual

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

STRATEGIC 

GOAL 1: 

Maintain an 

efficient and

competitive 

international 

ocean 

transportation 

system.

OBJECTIVE 1: 

Enhance efficiency 

in the trades through 

the use of asset 

sharing authority 

under the Shipping 

Act of 1984.

Percentage share of 

U.S. containerized 

cargo moving on 

other agreement 

parties’ vessels in 

major U.S. trades.

N/A139% 39.5% 40% 40.5% 41% 41.5%

STRATEGIC 

GOAL 2: 

Protect the 

public from 

unlawful, 

unfair and 

deceptive 

ocean 

transportation 

practices and 

resolve 

shipping 

disputes. 

OBJECTIVE 1: 

Identify and take 

action to end 

unlawful, unfair,

and deceptive 

practices.

Percentage of 

enforcement actions 

taken under the 

Shipping Act of 

1984 successfully 

resolved through 

favorable judgment, 

settlement, issuance 

of default judgment, 

or compliance letter 

or notice.

88% 78.9% 76.5% 77% 77.5% 77.5% 77.5%

OBJECTIVE 2: 

Prevent public harm 

through licensing 

and financial 

responsibility 

requirements.

Percentage of 

decisions on 

completed OTI 

license applications 

rendered within 60 

calendar days of 

receipt, facilitating 

lawful operation of 

OTIs with the 

appropriate 

character and 

experience.

90.2% 87.6% 75% 75% 75% 75% 75%

 

1 This is a new Objective and Measure for 2013 so there is no actual 2012 performance data.
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[29]

Strategic 

Goal Objective Performance Measures

2012 

Actual

2013 

Actual

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

Percentage of cruise 

line operators 

examined during the 

year that have the 

full financial 

coverage required 

by regulation to 

protect against loss 

from nonperformance or 

casualty.

100% 100% 94% 95% 95% 95% 95%

OBJECTIVE 3: 

Enhance public 

awareness of agency 

resources, remedies 

and regulatory 

requirements 

through education 

and outreach. 

Percentage of key 

Commission 

issuances, orders 

and reports are 

available through 

the Commission’s 

website within 5 

working days of 

receipt.

79% 86% 76% 78% 80% 82% 84%

OBJECTIVE 4: 

Impartially resolve 

international 

shipping disputes 

through alternative 

dispute resolution 

and adjudication.

Number of cases 

opened and closed 

each fiscal year 

using ombuds and 

ADR services 

assisting consumers 

to recover goods or 

funds.

893 800 825 825 825 850 850

Percentage of 

formal complaints 

or Commission 

initiated orders of 

investigation 

completed within 

two years of filing 

or Commission 

initiation.

73% 91% 58% 58% 60% 62% 64%
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[30]

Appendix F: Workload Summary

Workload Summary

Workload Category On Hand 

9/30/2012

FY 2013 Actual FY 2014 Estimate FY 2015 Estimate

Received Output Received Output Received Output

Formal Proceedings (ALJ) 14 9 14 10 11 10 11

Decisions, Reports, in Docketed 

Proceedings Before the Commission 18 24 27 35 35 35 35

Federal Register Notices 0 160 160 140 140 140 140

FOIA Requests 16 28 16 25 20 25 25

OMBUDS 45 1,211 588* 930 1,090 930 1,090

ADR Matters 3 10 13 18 18 18 18

Legislation 0 105 105 115 115 125 125

Legal Opinions, Recommendations, 

Case Summaries, Decisions and 

Final Orders 5 150 150 155 155 160 160

Audits and Monitoring Activities 2 82 74 120 122 130 130

OTI Applicant and License Checks 0 638 638 645 645 650 650

Formal Proceedings (BOE) 5 1 3 4 5 6 6

Civil Penalty Cases 9 17 13 20 22 22 22

Agreements Filed 15 127 131 150 150 150 150

Agreement Reports 167 1,364 1,283 1,485 1,485 1,485 1,485

Service Contracts 0 48,802 48,802 50,000 50,000 50,000 50,000

Service Contract Amendments 0 556,285 556,285 565,000 565,000 565,000 565,000

NVOCC Service Arrangements 0 1,635 1,635 1,650 1,650 1,650 1,650

Arrangement Amendments 0 2,019 2,019 2,400 2,400 2,400 2,400

FMC-1 Form 0 2,279 2,279 2,300 2,300 2,300 2,300

OTI Applications – NEW 117 336 267 400 393 410 395

OTI Business Change Applications 33 259 129 260 244 275 250

OTI License Terminations 0 263 263 270 270 285 285

Passenger Vessel Applications 

(Performance) 2 9 11 15 15 17 17

Passenger Vessel Applications 

(Casualty) 2 7 8 16 16 16 16

*Several hundred complaints regarding one OTI were received near the fiscal year’s end, and are 

currently being addressed.
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[31]

Appendix G: OIG Certification

FEDERAL MARITIME COMMISSION

Washington, DC 20573

Office of Inspector General

March 6, 2014

The Inspector General Reform Act (Pub. L. 110-149) was signed by the President on October 14,

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

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

each fiscal year (FY).

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

establishment or designated Federal entity to which the IG reports specifying:

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

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

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

and

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

Integrity and Efficiency (CIGIE).

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

the President for approval, shall include:

An aggregate request for the OIG,

The portion of this aggregate request for OIG training,

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

Any comments of the affected IG with respect to the proposal.

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

A separate statement of the budget estimate submitted by each IG,

The amount requested by the President for each OIG,

The amount requested by the President for training of OIGs,

The amount requested by the President for support of the CIGIE, and
Fiscal Year 2015 Budget Estimates submitted to the Appropriations Subcommittees

[32]

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

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

duties of the OIG.

Following the requirements as specified above, the Federal Maritime Commission Inspector

General submits the following information relating to the OIG’s requested budget for FY 2015:

The aggregate budget request for the operations of the OIG is $751,337.

The portion of this amount needed for OIG training is $5,000, and

The portion of this amount needed to support the CIGIE is $1,941.

I certify as the Interim IG of the Federal Maritime Commission that the amount I have

requested for training satisfies all OIG training needs for FY 2015.

Jon Hatfield, Interim Inspector General

Federal Maritime Commission