FEDER

C

ANNUA

TABLE OF C

LETTER OF TRANSMITTAL

MEMBERS OF COMMISSION 

SENIOR COMMISSION OFFICIALS 

I THE COMMISSION

A History

B Functions 

C Organization 

II THE YEAR IN REVIEW 

A Trade Developments 

B Restrictive Trade Practic

C Enforcement 

D Surveillance 

E Tariff Automation 

III SURVEILLANCE AND ENFOR

A Surveillance 

B Enforcement 

IV DEVELOPMENTS IN MAJOR 

A Transatlantic 

B Mediterranean 

C Middle East 

D Africa 

E Latin America and the C

F Transpacific

G Worldwide 

V AUTOMATED TARIFF FILIN

A Introduction and Backgr

B Early Studies on Tariffs 

C First Step in Tariff Auto

D The Shipping Act of 198

E The Tariff Automation T

F ATFI Feasibility Study 

The ATFI Advisory C

G Benefit Cost Analysis an

Procurement Authorit

H Inquiry on the Function

Presolicitation Confer

I Remote Retrieval 
J Contract Award and 

K Docket No 9023 

L Batch Filing Guide 

M Miscellaneous Milest

N Update on Remote A

VI THE FOREIGN SHIPPING 

A General 

B Top Twenty USLin

Trading Partners 

VII SIGNIFICANT OPERATIN

ORGANIZATIONAL UNIT

A Office of the Secreta

B Office of Administrat

C Office of the Genera

D Office of Equal Emp

E Office of Inspector G

F Office of the Managi

G Bureau of Trade Mo

H

Bureau of Tariffs Ce

I

Bureau of Hearing C

J Bureau of Investigati

K Bureau of Administra

APPENDIXES

A Organization Chart 

B Commission Proceed

C Agreement Filings an

D Tariff and Terminal F

E Civil Penalties Collect

F Investigations 

G Statement of Appropr

and Receipts 


FEDERAL MARITIME 

WASHINGTON DC

To the United States S

Representatives

Pursuant to section 1e

Plan No 7 of 1961 and sec

Marine Act 1936 as amende

the thirtyird annual repo

Federal Maritime Commissi

Additionally section VN 

an Update on Remote Acce

comply with the request o

informed on developments 

on remote access to the 

Tariff Filing and Information 

MEMBERS OF C

Ming C Hsu

Commissioner

Appointed 1990

Term Expires 1996

Delmond JH Won

Commissioner

Appointed 1994

Term Expires 1997

William D H

Chairm

Appointed 

Term Expir

SENIOR COMMISS

Secretary 

Chief Administrative Law Judg

General Counsel 

Director Office of

Equal Employment Opportu

Inspector General 

Managing Director 

Deputy Managing Director 

Director Bureau of

Trade Monitoring

and Analysis 

Director Bureau of

Tariffs Certification

and Licensing 

Director Bureau of

Hearing Counsel 

Director Bureau of

Investigations 

Director Bureau of

Administration 

I

THE COM

A HIS

The Federal Maritime C

FMC was established as an ind

Reorganization P an No 7 effec

that time the Federal Maritime 

the regulation of ocean comme

United States US

Merc

reorganization pan the shipp

separated into two categories 

The responsibilities associated w

and efficient US Merchant M

Maritime Administration now 

of Transportation DOT 

charged with the administration 

the shipping laws

The Commission is now re

oceanborne transportation in th

domestic offshore trade of th

Shipping Act of 1984 brought 

regulatory regime facing shippi

foreign commerce of the US

B FUNC

The principal statutes or 

statutes administered by the C

of 1984 1984 Act the Shipp

Intercoastal Shipping Act 19

Shipping Practices Act of 1988 

Merchant Marine Act 1920 19
During 1990 the 1984 

the bonding of non vesselop

VesselOperating Common 

1990 Amendments and 

amended to provide for 

authorities

The Commission sreg

Protecting shipp

foreign commerc

nonmarket orien

governments and

carriers that h

commerce of the 

Protecting the 

companies to tra

oceanborne and 

Reviewing and m

carriers and oth

foreign commer

conference pooli

agreements

Receipt and rev

regulation of ra

engaged in the US

Regulating rates 

regulations and 

ensure that such 
Regulating rates cha

and tariffs of ocea

domestic offshore tra

Licensing internation

Bonding of non vess

NVOCCs

Issuing passenger 

financial responsib

charterers to pay jud

death or to repay fare

voyage or cruise

Investigating disc

classifications and 

carriers terminal op

operating in the fore

commerce of the US

The Commission is authori

the 1920 Act and section 1b5

action to ensure that the foreig

burdened by non market barr

Commission may take coun

unfavorable shipping conditions 

may impose penalties to addres

governments that adversely affec

in the USforeign oceanborne t

USflagvessels to ocean trade 

The 1984 Act is applicable 

carriers and other persons enga

It exempts agreements that hav

Act from the USantitrust laws 

3
and Clayton Acts The C

agreements to ensure that 

antitrust immunity and to 

otherwise violate the 1984 

increase in transportation c

service

In addition to monitorin

Commission is also respon

carriers as well as those p

concert fairly treat shippers 

public The 1984 Act 

discriminating among shipp

shipping public The 1984 A

their rates charges and pra

that must be on file with the 

assess the rates and charges 

Commission The Commis

authority to approve or disa

individual commodity rate le

except with regard to ce

carriers

The 1916 and 1933 Acts 

carriers and other persons 

trades of the US In genera

protect against unduly disc

similar to the 1984 Act In a

a more comprehensive schem

minimum and maximum rate

in the domestic offshore trad

The Commission carrie

by conducting informal and f

hearings considers evidence 

appropriate orders and im
Commission also adjudicates dis

community the general shippin

individuals or interest groups

C ORGAN

The Commission is comp

appointed for fiveyear terms by 

and consent of the Senate Not 

the Commission may belong to 

President designates one of the 

Chairman The Chairman i

administrative officer of the age

The Commission sorganiza

of the Managing Director Office 

General Counsel Office of Adm

of Equal Employment Opportu

General Bureau of Trade Monit

Tariffs Certification and Licensin

Bureau of Administration and B

Managing Director assists the C

and administrative direction to 

Bureaus These Offices and Bu

Commission sregulatory progra

support

In fiscal year 1994 the Com

of 225 fulltime equivalent 

appropriation

personnel are

of

located

18900 0

in Washin

Th

New York San Francisco Los A

Houston and Hato Rey Puerto 

from the Bureau of Investigatio

5

II

THE YEAR IN 

The Commission vigorous

transportation and trade respons

Special emphasis was placed 

reasonable treatment of all US

the protection of US trades f

practices

Developments in major 

assessed to identify trends a

enforcement initiatives Rest

governments were pursued under 

potential commercial malprac

addressed A broad enforcemen

the activities of the major conf

trades Additionally the Commis

and Information System ATF

operational with the conversion 

their paper tariffs and service c

electronic format

This Annual Report essent

byoffice basis and contains a sy

and accomplishments Special s

particular interest This secti

summary of the Commisss 

accomplishments during the yea

7
A TRADE 

The international oc

between the US econom

Commission continually as

discern all commercial an

oversight role

The transatlantic 

overcapacity and fierce com

growth and a slight drop in 

Projections are for positive 

Agreement TAX propo

agreement which received 

and the European Union E

The EU published draft re

a block exemption from the 

Rome The Commission 

essentially advising that the

to protect industry membe

could create conflicts of law 

liner operator long establish

TAA and will operate in th

from two existing carriers

The international eco

unfavorable to shipping in 

year Liner operators forg

vessel space and rationalize 

services Trade conditions 

established carriers but ope

entering the Mediterranean 

a tradewide self policing a

neutral body to police carrie
In the Mideast the optimi

Conflict did not materialize 

problem and freight rates wer

those existing at the end of the G

to individually reorganize their 

vessel capacity more efficientl

sharing space chartering joint s

working agreements throughou

increase efficiency and enhance 

The African trade cont

significant external debt which s

several new services were init

others although two carriers did 

operations

Trade continued to grow 

Americathe Caribbean in ligh

which removed certain trade 

average tariffs Service to t

shippers with more options to 

rates remained relatively stab

again was a problem in favor o

these trades continued to be pla

problems and insufficient por

agreements were filed basica

service rationalization

In the transpacific inbou

while there was a lowerthan 

cargo There continued to be a 

the trades as evidenced by th

increases formation of a shipp

large shippers and rumors that 

offer service through Vancouve

also an extensive amount of in

9
both directions Nonetheles

and cooperated with othe

economies of scale in ord

availability inbound Addit

agreement similar to othe

Commission was initiated d

types of rationalisation an

throughout the year

B RESTRICTIVE 

One of the Commissis

and eliminate protectionist 

favor their domestic interes

trade interests in ocean ship

extremely successful in attain

trade obstacles and issues to 

parties

The Commission ende

fiscal year 1994 involving the 

The Commission previously 

restrictions by the ROK th

engaging in trucking operatio

with railroads The final rule 

fee on ROKflag vessels callin

suspended temporarily in 

eliminate or adjust the involve

the progress achieved by the 

the Commission withdrew th

involved formal proceeding

Corrective actions by 

enabled the Commission to 

the Japan Taiwan and Peo

trades The Commission con
on commitments by these foreign 

outstanding issues are resolved 

practices in the Japan trade also 

fiscal year to determine if spec

the FSPA was warranted A

Commission was prepared to 

necessary to protect US trades 

restrictions

Further the Commission 

fiscal year updating its regulation

section 19 The rule impleme

clarified and expanded the Cos

conditions affecting intermoda

transportation activities and 

gathering and discovery tools

C ENFOR

The Commission smost 

during the fiscal year involved its 

of the TAA TAA scompetitive 

power upon shippers was a ma

agreement became effective in 

Commission initiated a fullsca

and commercial consequences 

transportation specialists and at

effort to evaluate conditions in 

reports of alleged unlawful a

sources including the Commisss

and inquiries and petitions f

Commission launched a fo

Investigation No 21 into the ac

lines Fact finding hearings were 

information and evidence about 

shippers The TAA carriers als
future hearings At fisca

assessing an interim report 

considering whether form

injunctive action was warran

The Commission also c

terminate malpractices in th

highly successful programs i

trades the Commission ins

No 22 into possible rate mal

US and Europe the Fa

America and the Caribbea

encourage strong neutral b

enhancing fair competition 

During the year in addition 

in the transatlantic tradesw

implemented by carrier gr

transpacific trades

Notwithstanding indust

Commission continues to i

activity that results in unfair 

on competition The Comm

penalties in fiscal year 1994 a

that were widespread or co

given trade Our enforceme

the dual goals of obtaining s

equitable trading conditions
D SURVE

This Commission activity m

carrierconference behavior in th

continued compliance with 

requirements These surveilla

unreasonable or discriminatory t

addressed by some form of 

aforementioned the practices 

Commission focus in fiscal year 

previously described fact finding 

service contract independent 

activities was developed so as to 

on US exporters and import

including a proposed name 

Conference Agreement TACA 

as the Commission was launchi

No 21 These amendments com

complaints raised further qu

anticompetitive impact Subseq

economic analysis Commission 

agreed to adopt a number of p

Commission was scheduled to co

their relationship to the fact find

In addition to the extensi

other major monitoring and res

fiscal year 1994 included vario

Transpacific Stabilization Ag

agreement covering the inbound 

a Department of Agriculturespo

the maritime regulatory policy o

review of the cargo handling an

vessel operators NVOs a 

semiannual report on marine 

agreements a review of the 

13
Agreement sfirst six mont

concerning bunker fuel and 

the transpacific trades and 

for various trades

E TARIFF 

The ATFI System bec

1994 and the Conunission h

tariff environment The 

implementation schedule w

converted to electronic form

tariff filers petitioned for 

electronic tariff filing requi

willing to grant extensions o

December 31 1993 A num

with the implementation sch

temporary exemption The 

of proceedings that ordered 

their paper tariffs should no

to electronic format Approx

their tariffs canceled in fisca

additional show cause orde

fiscal year to cancel all rem

During fiscal year 1994 

the majority of which were 

fiscal year end there were 37

System All essential term

required to be filed in AT

service contract information 

any of the almost 300 orga

ATFI access capability

Seven firms were ce

during the fiscal year bringin
And three additional firms 

accountingcollection systems 

submission of secondary user f

scheduled to expire at the end 

Commission is conducting a re

future action

The Commission also nego

to maintain the System through 

for fiscal year 1996 At the 

continued the process for the re

ensure the operation of a viab

system in future years

15

III

SURVEILLA

ENFORCE

A SURVEI

The systematic surveillanc

commercial conditions in the US 

part of the Commission srespon

and the 1984 Act Such surveillan

operating in the UStrades comp

of the applicable Acts and th

Commission regulations To tha

Monitoring and Analysis BTM

monitoring programs and other re

keep the Commission informed 

emerging commercial trends an

activities

The importance the Commi

monitoring activities is a direct c

under the 1984 Act of the Cs

discretion to disapprove agreeme

that unless rejected under re

agreements filed with the Commiss

the 45th day after filing or the 3

Federal Register whichever is later 

for technical reasons or for f

provisions in the agreement lang

may extend the original 45 day pe

if necessary to obtain additional in

Finally if the Commission determ

virtue of a reduction in competit

17
increase transportation cost

it may seek injunctive relie

District of Columbia

As a consequence of 

to block agreements from t

and timely evaluation ofpos

has increased considerab

provides such an evaluation 

competition including ma

conditions general rate a

pricing trends vessel utiliz

shipper complaints and the 

programs

In fiscal year 1994 

involved a variety of econo

pricing and service behavio

trades Projects included 

filed by the Trans Atlantic 

conditions in the North A

TAA and the Transpacific 

capacity management and 

the inbound AsiaUStrad

of the impact of TAA ame

Atlantic Conference Agree

TAA 4 an analysis of a U

of maritime regulatory polic

semiannual report on m

agreements 6 a review 

requirements of the Inter 

7 a market share report o

8 a section 15 order 

information and documen

activities by the member l
bunker fuel and currency ad

transpacific trades

In addition to its regular m

participated in the preparation fo

Finding Investigation No 21 a mu

pricing and service behavior of T

lines In particular BTMA prov

extent and competitive conse

arrangements undertaken by 

reviewed documents submitted i

order on independent action T

ordered an adjudicatory investi

restraints on the rights of TA

independent action A fina

Investigation No 21 is scheduled 

During the first quarter of f

Investigations BOI NVOCC 

end This program was in

understanding of industry pract

whether lawful or not The areas 

of issues but were specifically a

thancontainerload and fullco

coloading of such cargoes by be

This program resulted in a rulema

the evolving practices of NVOCC

shipments which they handled

B ENFORC

The 1984 Act establishes 

regulation of the shipping and rel

of the statutory declaration 

nondiscriminatory efficient and e

system for the benefit of internat

19
The enforcement pro

Commission activity under 

program is to achieve com

1984 Act Compliance in 

statutory objectives of th

traditional means to achiev

The Commission con

terminate malpractices in 

highly successful programs 

trades the Commission in

No 22 into possible rate ma

US and Europe the F

America and the Caribbea

On July 27 1994 th

comprehensive inquiry in

conference and the impact 

history This unparalleled 

investigation into the activ

lines The Commission has 

to report on additional C

necessary

The enforcement p

malpractices in a particu

practices There is also a n

adherence to the 1984 

conditions in those trade

previously occurred Thus 

competitive conditions in t

In furtherance of 

enforcement program 

perpetrators of systematic 

and the dedication of resou
to take administrative action a

court for enforcement

BOI liaison and enfo

cooperation and coordination w

Ajoint support program betwee

Customs Service Customs 

coordination of effort on matte

fiscal year 1994 the Comms

increased the level of inform

Customs Automated Commer

Access to Customs ACS da

Commission scapability in 

malpractices at early stages in t

Although the Commission 

laying the necessary groundwo

ACS in fiscal year 1994 this e

until fiscal year 1995 In fiscal 

significantly expand cooperatio

include access to the Automated 

new source of information will 

investigative personnel to targe

connection with ocean transpor

The expanded access to th

with online access to the Coms

significantly increase the amoun

groundwork that we will be 

electronic database manipulatio

BOI began a comprehens

enforcement to ensure complia

adherence requirements of the 

been designed to include not on

practices of common carrier

2
improper shipper practice

commodity and misdeclaratio

tariff integrity

The Commission senfo

resulted in the collection of 

870 464 See Appendix E 

enforcement activity will have 

malpractices in the shipping 
IV

DEVELOPMEN

USFOREIG

A TRANS

Ship operators offering se

have historically encountere

competition Principal confer

transatlantic trades reported co

1992 and 150 million in 199

capacity utilization and depress

year 1994 several major t

improvements iv their financia

carrier reporting a return to p

improved vessel capacity utiliz

rationalization among carriers c

financial positions

These relatively impro

encouraged ship operators to 

transatlantic trade over the pas

the new entrants have been a

During the fiscal year a

independent services entered t

in attracting sufficient cargo a

One liner operator long est

trades joined the transatlantic c

It will begin operations in conc

established conference carriers 

During fiscal year 1994 i

to grow while the outbound t

2
from Europe grew 11 perc

exports to Europe were down 

year

The European recessio

European currencies were th

demand for USexports to E

positive growth during the se

to Europe It is anticipated 

augmented by rising industri

promote further growth for US

A substantial amount o

to be focused on the activitie

TAA No 202011375 a

1994 Originally filed in 1992 

15 carriers in the trade betwee

replaced two former conferen

eastbound and westbound se

Europe Rate Agreement No 2

USA RateAgreement No 202 

AP Moller Maersk Line M

AB Cho Yang Shipping Co 

Hapag Lloyd AG Hapag Llo

Med Shipping Nedlloyd L

Orient Lines Ltd NOL 

Line Orient Overseas Cont

PO Containers Limited P

Lines SeaLand Service In

Maritima Mexicana SAde V

de CV Tecomar In Au

Hanjin entered the tran

member of TAA The Agree

TAA permits the carrier

charges and conditions of se
filed with the Commission on Apr

in form and format The origina

corrected version was refiled on 

thoroughly TAA s overall impa

formal Request for Additional In

After an analysis of the carrier

informed TAA that it was prep

enjoining certain restrictive pr

contracts and membership with

offending provisions and the C

action to prevent it from becom

1992

As originally filed TAA 

conference because it provided 

and a Capacity Management 

westbound trade Europe to US 

permitted six former independent 

members to charge different rate

rate committee members Also 

could initiate individual service 

conference contracts

Because of TAA smarket s

the Commission subjected TAA 

when it was initially filed and co

TAA is required to submit qua

service activities capacity utilizat

and other data relevant to its 

monitors this information on an 

impact of TAA on market condit

and to ensure that the Agreemen

section 6g and other provisions 

25
In July 1994 based 

activity by the TAA fro

Commission sown monito

Commission instituted an ex

Fact Finding Investigation 

and some or all of its memb

engaged in activities violat

Act In addition to docu

specific questions under Fac

and its members were re

documents relevant to tw

Commission Section 15 Or

as oral testimony from indu

The first round of publi

Massachusetts August 

testimony in Chicago Illi

September and Washing

In the meantime the 

the Agreement The amen

and expand the Agreemes

membership system 3 red

independent action on tar

contract voting procedur

commitments required for s

Agreement the TransA

TACA

provisions

Due

would

to unresolved

be implem

co

have on competition the C

for Additional Informatio

Commission sRequest for 

develop more information 

effect on rates and services 
As the result of deliberatio

these matters the parties modifie

the capacity regulation program 

15day window to allow a memb

service contracts 3 delete any 

previously required of shippers 

4 clarify the number of votes ne

a service contract 5 reduce t

period to three business day

authorized members collectively 

European inland segments of 

7 delete authority that could p

other unnamed persons and eng

exchange of information for th

entering into other agreemen

scheduled to consider the accepta

1994 The Agreement ssc

October 24 1994

The Directorate General of 

European Union EU also is c

DG IV was scheduled to determ

criteria under which liner confere

from the EUscompetition laws 

that a conference should have a 

than two levels DG IV also was 

and stated that it was not an ap

conference under the EUs co

DG IV has cited TAA sprovisio

agree on charges for inland tran

that the conference exemption fr

is limited to porttoport transpo

The EU reportedly was to 

in fiscal year 1995 The most re

the EU is currently reviewing TAs

27
not reached a decision as t

exemption from the EUsc

In March 1994 the E

establish a block exemption 

agreements from the otherw

the Treaty of Rome These 

agreement among ocean 

agreements not only tra

arrangements but other vess

or rationalization agreemen

Commission submitted comm

on shipping consortia

In its comments the C

requirements for a block e

necessary to protect indust

injury The Commission poi

covered by the draft re

arrangements pose less o

conferences nevertheless 

restrictive than the EUslaw 

it was noted that the regs

conflicts of law with third co

restrictions

The Commission

on consortia

called

ma

that these limits could cau

consequences These con

proscribing specific antico

regulating comparable mark

It was urged that gove

agreements that limit compe

be proportional to the likelih

shippers using ocean transpo

EU consortia regulations is 
Other agreements filed in fi

Hanjin entered the t

TAATACA and is scheduled to 

January 1995 Hanjin will not int

into the trade but instead will ch

Lines and Cho Yang Under theT

232011475 DSR Senator Lines 

TEUs vessel slots per week 

transport of cargoes in the trans

In July 1994 members of 

Flag Liner Operators and the A

filed a discussion agreement 

Agreement No 203 011462 tha

and discuss through intermodal v

charges for services and other ma

trades between USports and p

Europe Adherence to any agre

B MEDITER

Two major conferences in 

dominant market positions for m

has been served by the South Eur

SEUSA No 202 010676 T

served by the USAtlantic andGW

Agreement AGWM No 202 

agreements were merged into 

Conference Agreement SEAL 

year A pooling agreemen

USASouth Europe Pool A

authorizes the parties to pool 

space The USPacific Mediterr

29
Mediterranean North Pacif

008090 in the inbound and 

The international eco

unfavorable to shipping in th

and elsewhere during the 

European and Japanese e

fragile USeconomic recov

commerce in the region Li

whereas major dry bulk co

more depressed The ove

industry reflected the unsat

the prior year Liner ope

improve market shares freq

continuing overcapacity in m

severe competition exerted 

rates Strategic partnership

liner shipping sector where 

offered in the trade while 

excessive expansion The c

was on vesselsharing agree

The USMediterrane

overcapacity and excessive c

resulted in the withdrawal o

the trade However liner op

US have begun entering 

Mediterranean market to 

service routes between 

Mediterranean the Middle 

rationale for this service is th

discharge cargoes in the 

transport empty containers 

freight rate levels in the tra
USexports to Mediterran

affected by the recession in Euro

the dollar last year which priced 

of the European market Prior t

SEUSA into the SEAC SEUS

percent of the westbound trade 

of the market is expected to 

competition from independent 

AGWM Conference share of 

approached 70 percent The c

includes SeaLand Nedlloyd PO 

Line Evergreen Line Lykes and 

Rationalization of shipping 

major factor underlying the type

in the Mediterranean during the 

Transport Agreement No 203 0

charter and sailing authority for 

Lines Compagnie Maritime dAff

the USAtlanticMediterranean 

Agreement also provides for 

authority in the Middle East tra

The CMA Tecomar Space 

No 232 011459 authorizes the p

other rationalize sailings jointly 

arrangements and lease equipm

between ports and points in the 

Mexican Spanish Portuguese a

points

TheUSMediterranean P

011447 authorizes the 15 mem

upon matters related to self polic

of their obligations in the eastbo

of the USMediterranean trade

31
were filed to four confere

Puerto RicoMediterranea

010676 202010984 and 

agreement will be policed i

theUSMediterranean Pol

C MID

In the Middle East 

strategies of rationalizatio

services Despite earlier for

the trade following the Gu

failed to materialize Rep

approaching 40 percent prev

depressed between 20 and 

at the end of hostilities in t

Several carriers in the 

the situation of extensive ov

a discussion agreement wit

preparatory step to forming 

the agreement was amende

Agreement USEast Coast

CoastMiddle East Agreeme

agreement was to permit ca

other common issues in the 

individual ship operators 

operations in the Middle E

capacity in the trade more 

liner trade with the Indian S

that region sclose proxim

carriers operating in the G

bound for Karachi Bombay 

The prevalence of mainhaul 

between the USEurope 

Mediterranean Middle Eas
The dominant trend 

restructuring of liner shipping 

appears to be continuing A ves

SeaLand PO Containers and 

Agreement No 203011403 wh

has been upgraded recently to 

Persian Gulf

The NOSACYKJoint 

No 203 011441 established 

between USports and points 

and ports and points in the Med

Sea Gulf of Aden Arabian Gu

joint service has entered into c

with NOSAC ANS No 232 01

No 232 011443 The two 

respective parties to charter spa

upon vessel capacity spac

interchanges and to rationalize 

The NSCSA UASCAgree

the National Shipping Compa

United Arab Shipping Compan

other interchange container eq

in the trade between US Atla

and ports and points in the Mid

Subcontinent the Far East an

The 8900 Lines Rate 

expanded its geographic scope 

exports from the US Pacific 

and the Indian Subcontinent

The Neptune Orient Lines 

Space Charter and Sailing Agree

the parties to charter space o

3
rationalize services in the 

Australasia South West Asia 

Coast trades

D A

Africa sexternal debt re

than double the 1980 total of 

debt is one of the factors res

US exports to Africa 

54billion Major items we

data processing and related 

parts and other industria

approximately 32 billion c

ore and other materials such 

Republic of South Africa So

part 44 percent of Africa s

Several new services we

Three carriers Lykes Line S

cooperated in a joint service 

South Africa and another se

started a new service betwee

Africa and Mauritius Wilhe

US Gulf Coast to West Afric

Company COSCO added 

East Coast of South America 

Carriers that withdrew 

were Wilhelmsen Line canc

Coast Service and Safmarin

Europe service
The major agreements tha

during fiscal year 1994 were 

Agreement No 203 011453 an

Atlantic Lines Agreement No 

discussion agreements The U

PortsEastern Mediterranean 

Conference No 202 009548 w

points in Romania to its scope 

E LATIN AMERICA A

Trade between the US 

Caribbean continued to grow 

The growth in trade was faci

average tariff from 56 percent i

addition regional trade agre

exchange rates and free access 

many barriers to trade

USexports to Brazil inc

percent to Argentina Howeve

in the trade with Venezuela 

Coast US exports to Chile 

increased by an average of 

countries on the East Coast o

approximately 12 percent on a

an increase of 165 percent 

countries of the West Coast 

averaged more than 15 percen

Trade imbalance was a c

containers moving southward t

accounting for containers was 

for carriers Other problems a

congestion labor problems a

such as cranes

3
Many carriers added 

services or by joint ventures 

region not only by increasi

entering into agreements w

between the USAtlantic a

of South America SeaLan

agreement with Transroll N

weekly service SeaLand als

Maersk to serve in the trad

and the West Coast of Sou

fixed dayofthe week fortnig

SeaLand under the agreeme

Andean fortnightly service lin

the West Coast of South Ame

SeaLand and Maersk inclu

Maersk on Sea Land sweekl

Coast and the West Coas

provision of space to Maers

service between the US G

Central America

Independently SeaLa

between the USAtlantic Co

America It also added anot

USPacific Coast and the W

Maersk also added cap

three vessel US Atlantic 

America Service and a US G

The company also added a fo

Atlantic Coast and the East 

In the trade with the 

additions were made throug

Nedlloyd and Compania Chi

The carriers deployed seven v
the USAtlantic Coast and the Pa

Grancolombiana also added three 

theUSAtlantic Coast and the Pa

Pan American Independent Line 

the USAtlantic and Gulf Coast

Atlantic Coast to West Coast of 

connecting Savannah Miami and 

Carriers that left the trad

Empresa Lineas Maritimas Argen

and Linebol The Venezuelan 

carrier went out of business

The overall increase in se

shippers more options to penetra

freight rates remained relatively 

Freight Conference sought to est

board increase Several non conf

follow the conference thus offeri

alternative

Among other developments 

integration in Latin America a

during the year Since the im

American Free Trade Agreement 

Canada and Mexico other count

of a wider NAFTA to include So

New agreements implem

reflecting the general trend in t

included FMG Lykes Cooperative 

011470 Crowley American Tran

Space Charter and Sailing Agree

Coast North America to West 

Caribbean Cooperative Working 

South America Pacific Coast S

37
011464 Pacific CoastLatin

203 011458 CMA Tecom

Agreement No 23201145

No 203 011448 Space C

Line Ltd NavimarLines CA

ServicesKirk Line Agreeme

Joint Service NorthSouthA

Shipping Company LimitedL

Agreement No 207 0114

agreements were filed in 

Coast Conference Agreeme

Central America Agreem

agreements were amended 

Hornet Shipping Company L

Service Agreement No 2

DSRStinnes West Indies Se

No 202011371

F TRA

Most US exports to 

paper and paperboard wa

chemicals hay and lumber 

finished goods U S impo

goods including shoes toy

automobile parts and sp

therefore tend to be highe

In response to the incr

by the growth in the US 

improved USeconomy the 

Stabilization Agreement TS

general rate increase set to c

end however as intra confe

the Asia North America East

No 202 010776 the me
members inbound rates on footwa

parts began to fall Nor could the 

for toys shipped by large shippe

favorable service contracts Kaw

Line Mitsui OSKLines Ltd 

were identified as being particul

Transpacific Freight Conference 

000150 also experienced rate er

flag carriers American Presiden

announced discounts on commod

US Midwest

The major indicator of wha

be in the inbound Pacific trades 

contracts are signed covering th

independent carriers began offeri

to capture premium accounts 

independent Korean carrier Han

signed contracts at rates well b

conference Another South Ko

signed another major contrac

speculation that this aggressive b

Korean lines concern about fill

coming into the trade this year 

four 1600 TEU vessels into servi

1994 and Hyundai recently acce

TEU vessels Nevertheless s

increased their volume commitm

19941995 service contracts

To secure lower freight 

formed a shippers association 

Association The willingness of l

indicates that a strong level of co

during 1994 Another indicator o

39
the Pacific was the lowerin

inbound carriers

The TFCJ also face

reduce rates NOL a confe

rates in the spring of 1994 

conference to lower their 

manufacturers of electroni

annual shipping volumes u

rate increases These sh

appreciation of the yen and 

to present a strongly united 

Additional competitiv

TFCJ is evidenced by the 

are offering US shippers 

Columbia From there sh

arrange their own inland a

savings compared with di

varies but could in some c

offering a Canadian gatewa

by ANERA to USports

The outbound rate inc

of strong competitive stress 

Agreement TWRA No 

wastepaper and hay fell in 

commodities Perhaps of m

was the aggressive solicitat

carrier Yangming In mid

Westbound Transpacific Stab

203 011325 and began offe

either the conference or oth

a major commodity in the P

5 to 8 percent of the outbo

commands a higher freigh
cargoes To protect themselves 

as Evergreen and Hyundai quic

The conference subsequently f

volume rate covering cotton

It is common in the westb

drop during the summer when As

purchases of American raw ma

picks up in the late fall when As

cycle held in 1994 although the 

the largest US trading partne

lowerthannormal demand for 

despite the reduced cargo flow 

that they were able to maint

capacity utilization rates

By spring 1994 anticipa

increase in demand the TWRA 

rate levels and proposed rate inc

1994 Yet by the end of April m

been largely eroded through co

Cotton once again played a b

proposed rate levels to hold T

a repeat of Yangming s 1993 

broadened its time volume d

response offered even lower ra

downward rate shift matched 

revenues correspondingly declin

had a beneficial impact on c

response to the lower rates fo

cooperative signed a roughly 

contract with a Chinese impo

national flag carrier of China i

the cargo most carriers wonder 

to handle all the cargo amou

in a timely fashion

4
The financial picture in 

of the yen s appreciation 

Japan scontinuing recessio

forced to restructure their o

K Line have all been forc

denominated costs K Lin

Hong Kong and the US 

percentage of borrowing fro

banks

As the higher valued 

dominates the transpacific tr

their transit times The tre

cargo coming from Southeas

Maersk started another strin

to and from Singapore to th

from Hong Kong in 12 days 

North Asia countries of Kore

main source of high valued g

Southeast Asia countries w

facility costs have been entic

Significantly the demand fo

the Northern Asian coun

Southeast Asia has increase

To meet the increased d

have increased their availab

American President Lines A

agreed to coordinate ship 

cooperation APL MOL an

UStranspacific trade and w

to Europe trade This gives 

presence in two of the worls

become a foothold in Europ

transatlantic service
Other carriers have lost 

sharing agreements According 

MOL lost almost half of its share 

trade when it pulled all of its ow

space from the NYK Line NOL 

This in part shows one of the d

on chartered space to maint

According to MOL the redu

because while they are filling a

the amount of space available h

In contrast to MOL H

conference carrier began a rapi

introduction of six new vessels a

that includes direct calls outbou

Singapore Hyundai is positionin

trade According to Hyund

repeatedly experienced limitatio

The addition of the new vessels 

rail service permits Hyundai to 

conferencestyle premium servic

OOCL is adding six of th

built to its fleet The vessels 

TEUs are part of a trend to b

large to transit the Panama Can

Pacific The vessels are due for 

are being characterized as rep

fleet expansion Route deployme

amount of actual capacity adde

transit time effectively adds m

slower transit times OOCL also 

services including a substantial 

using vessels in the 100150 TEU 

increases OOCL may deploy la

its worldwide service to act 

43
replacing them with vessels 

In anticipation of these cha

OOCL signed a slot sharing 

APL which lasts until the ye

Lauritzen Reefers the 

vessels began a weekly servi

Coast of South America to 

The service will also carry 

from Japan Although prima

vessels making up the servic

each Operating under the 

service will price itself as an 

Carriers are meeting th

by expanding their networks 

other carriers to be able to 

scope and scale in marketing 

include theAPL MOLOOC

No 203 011468 which gran

sailing authority as well 

agreement on rates and serv

into the APLTMM Discus

which permits the parties to 

other matters of mutual c

subtrades between ports an

Subcontinent Middle East 

In 1994 ANERA exp

Indian

Indian

Subcontinent

Subcontinent

permitt

Section 

common tariff and common 

US East Coast originating 

Agreement No 202 008900 

the basic Agreement to includ

Yemen and the Indian Su
Agreement spendulum service t

canals

Two policing agreements h

The Trans Pacific Policing Disc

011434 authorizes the parties to 

information on matters relating to 

policing of the parties obligatio

ports and points and ports an

discussion agreement came the T

No 203 011452 with 17 partic

entire Far East trade This A

policing agreements filed with th

A final group of agreement

cooperation already existing betw

the range of their cooperation 

cross chartered MaerskSeaLan

011321 has been amended to p

a voluntary basis on rates term

the Agreement trade The amen

party may not withdraw from 

December 31 1995 Along the

Lines Ltd and Nippon Yusen Ka

Agreement No 232 011431 in t

Australasia South West Asia and 

trades permits the parties to c

vessels and to rationalize service 

Finally the Blue StarColumbus

Agreement No 203 011433 p

common terminals and stevedor

jointly or in parallel negotiate a

etc or terminal facilities or con

coordinate with each other to 

terminal stevedoring and other 

45
In other parts of the 

Eastern Shipping Co of Rus

from the Commission slist 

decision means FESCO is no 

regulation Since it was p

former Soviet Union FESC

services from the US West 

a USPacific Northwest to 

year it expanded that service 

to California During fiscal 

carrier to offer direct service 

carriers such as APL SeaL

Japan service Russia sFar E

hubs in Asia While the volu

institution of a regular servi

to consider Russia as an op

Two agreements affec

The first Safbank Line Ltd 

SA No 202 011454 is a c

between the US and Aust

these companies to wo

AfricaOceania Agreement N

AustraliaNew Zealand D

ANZDL No 207 01114

parties to the joint service a

organization Pacific Contai

Commerciale Armoricaine 

Zealand Containerline SA 

Navigation par Contontene

Commerciale is replaced by 

Competition in the US

has been stronger in recen

AustraliaNew Zealand 

ANZECS conference dec
place they have started a ne

agreement six carriers one 

independent operate a 24vesse

of which has a roundtheworld 

The new agreement is less r

individual carriers are to be give

individual marketing of their se

One of the largest volume 

AustraliaNew Zealand to US

two major rate reductions rece

Blue Star Line Columbus Lin

Direct Line cut rates for the se

TheAustralia United States Cont

011407 announced the new ra

response to the entry of Sca

Scaldis enters as a breakbulk ca

rigged to carry reefer containe

container traffic is into rather th

the reefer business is for northbo

this problem by sharing equipm

cargo westbound from the US 

Australian carriers then pick 

transport them often empty bac

the northbound journey Co

threatens to disrupt the c

established to do this

Since trade with Vietnam 

APL have formally entered 

Evergreen which has an estab

service and K Line which has 

enter the trade Vietnam ther

whose increasing maritime cont

position it for rapid growth

47
G WO

Worldwide liner shippin

by unbalanced traffic flows in 

to economic recessions 

overtonnaging As a result 

their profitability eroded Th

rationalization through coo

sharing arrangements and th

in all major trades

Cooperation among c

electronic data interchange 

Logistics Agreement No 20

ACL Blue Star North Ame

to discuss exchange documen

in the development and us

systems in accounting inland 

handling of containers AT

documentation and equipme

ports and points Similarly t

011457 provides for its mem

of technological innovation a

development and utilizatio

information systems to facilit

third parties in Europe to the 

between all US ports and 

points

One area of especially 

size of containerships being o

fleet Vessels considered lar

those being launched each m

newly completed ships was ap

vessels larger than 4000 TE
Vessel size growth will have signif

inland networks and shippers for 

49

V

AUTOMATED TARI

INFORMATION S

A INTRODUCTION AN

The Commission administer

the 1984 Act which apply to dome

between the mainland and Haw

foreign commerce respectively fo

waterborne transportation The s

carriers by water in these trades 

inspection their tariffs Also 

service contracts be filed and that 

available to the public in tariff 

817 and 1707

A freight tariff filed at the 

of a carrier or conference and c

charges and rules applicable to its 

service contract is a special agreem

carrier sthat applies in lieu of 

commitments are made in a servic

guaranteeing the carrier a minim

period of time in consideration 

carrier to a certain rate and servic

Additionally terminal tariffs 

persons engaged in carrying on 

wharfage dock warehouse or 

A Customs tariff is a publication 

schedule of Customs duties

51
connection with a common 

domestic offshore commer

The statutes and im

Commission to ensure c

standards before tariff m

example a tariff or an 

unclear or indefinite and 

other tariff provisions alrea

contain effective date provis

eg a minimum of 30 day

filing is defective in any of 

filer must file again in the 

go into effect Similarly s

the Commission if they d

regulatory requirements S

581

In order to facilitate 

substantial penalties for no

adhering to the provisions 

a service contract See eg 

1708 and 1709

In addition to enforc

uses the filed tariff and se

and investigatory purposes 

related issues raised by 

proceedings as well as in 

contract provision on file 

official evidence of the app

certified by the Conuniss

information is used for 

scheme is primarily designe

shipping public to promot
flow of USexports and imports 

with and maintained at the Com

While the first US ma

established in 1916 it was not u

USforeign commerce were req

all the rates charges and rules a

In the ensuing years the Comm

million pages per year

The enormous amount of p

process with a limited number o

modem technology as a means 

burdens on both the government 

systematic exploration of this sub

commenced with a series of stud

B EARLY STUDIE

In 1981 the Commission c

the validity of the premises u

requirements of the 1961 amend

based The study contained thre

The first part concerned the 

the effectuation of non tariff pr

formal decisions enforcement et

October 1 1981 was based upon a

It concluded that tariffs are of 

Commission statutory functions 

effectively used if the data were 

2 A relatively small number of 

commerce have been required to file tar

Act

53
The second part of th

1981 evaluated the impact 

users shippers and freig

interviews with 25 impor

forwarders It revealed tha

that publicly available tarif

maintained at the Comm

however agreed that the 

could be simplified by imple

system of rates computeri

upon the US Foreign Trade 

of Domestic and Foreign Co

States Schedule B

The third part of the 

focused upon ten liner ope

segment of the maritime in

publicly available and main

those interviewed for the ea

carriers and conferences sta

the contents of tariffs A m

of tariffs might be a necessa

that any program to simpl

tariff automation

The overall conclusio

retention of the requirem

support in the maritime in

need of modernization 

computerization

While conducting this 

also began an internal study 

the Commission itself The 

a six month period JulyD

permanent filings were rece
of several hundred filers account

volume The internal study also 

quarter fiscal year 1982 actual ex

cost of examining and maintaini

major filers was 158 000

With the results of these 

Commission explored the issue 

particular interest to the Commis

on the feasibility of possible met

of an automated tariff system In 

interviewed seven carriers fiv

forwarders twelve shippers an

firms

The report of this survey w

revealed the overall belief of thes

the tariff system be automated b

automated system was overdue 

that there was a likelihood that t

system if it were more efficient a

to be less costly than the existing 

The various respondents w

stages of automation A few ca

and a number of conferences and 

commitments to automation T

automated to some degree gene

tariffs would fit well into their sy

55
C FIRST STEP IN 

Recognizing that ther

support for tariff automati

to determine if any parties 

appropriate system On No

published in the Commerce 

entitled Sources Sought 

Commission Electronic Filin

Tariffs Of the 31 replies 

responsive or partly respo

interest in being considere

system andor described th

also raised questions of bo

needed to be resolved befor

leading to the eventual ado

The major questions raised 

1 Does the filing a

a private contractor off Co

statutory requirement that t

2 Can the Commis

compliance with electronic 

3 What is an appo

vendor developed softwar

database requirements

4 What copyrights 

5 What will be th

filing the data electronica

either filed or produced fro
storage be required To what exte

be required

6 Will the contractor hav

use of the tariff information filed 

7 What will be the finan

carriers and other firms that alrea

8 What is the minimum t

with an appointed outside vendo

9 What is the economi

Commission as a free system use

10 What will be the numb

will be ultimately selected

11 What will be Commiss

on the contractor

12 To what extent will the

tariff data into the electronic syste

data

13 How will a system pro

14 To what extent would 

with other format standardization

D THE SHIPPING 

On March 20 1984 the 19

though the continued need for va

been questioned by certain gove

private sector during hearings on 

57
the requirements to file an

were authorized as an alt

contracts were required 

Commission their essent

Commission in tariff form

public

E THE TARIFF AU

In August 1984 Com

appointed Vice Chairman 

Tariff Automation Task 

additional information and 

to 17 ocean carriers 10 N

forwarders and 20 shippers 

use of tariff data and sugge

three entities responded S

are synthesized as follows

Tariffs were use

basis and mos

Most with the 

with the curren

indicated a des

Most of the 

commercial ta

carrierconferen

predominant u

large number o

shippers wen

representatives 

indicated that 

however those 
favored automation 

timely and accurate d

A majority of the 

available standardized 

eg ScheduleA Tariff

Annotated Standa

Classification Sche

Transportation Commo

did not use standardize

nor did they see a nee

Freight forwarder and 

the greatest degree of 

one type of coding sys

Practically all ocea

respondents believed th

to file data with the C

fashion The NVOCC 

be too expensive

At about the same time as t

inhouse survey was conducted at 

its needs for tariff automation 

concept The survey results includ

Most respondents in 

bureaus felt that auto

the quality of their 

productivity

Sixtytwo percent of th

copy was unnecessary 

machine readable form 

copies were the need fo

59
for enforcemen

case of compute

Forty percent 

classification c

efficiency and q

21 percent resp

their efficiency 

Responses wer

geographic cod

In August 1985 the 

Tariff Automation A Fun

describing the results of the 

the report described the pr

review and the Commisss

retrieval of tariff data The 

were described to be as fo

The automated 

sector to the ex

The system will 

the assessment 

information

Access by the C

The integrity o

Commission t

ownership of so

the system

A means will 

monopolistic co

the system and 
existing satellite co

dissemination of tariff 

Contractual arrangem

not curtail the ability o

tariff documents now 

document rooms or ot

The report recommended the 

which would evaluate the technic

their costs including a market ana

information and the likelihood 

could be recaptured The Task 

primary options to be evaluated i

1 Multiple privatesect

require Commission control o

acceptance of tariff filing within 

prevent tampering with the da

information in the database to 

public through the Commissios

Tariff Control Center This 

certification process This option 

least cost to the Commission 

involvement but legislative change

implement it

2 Single database o

operates a single database of tarif

review and acceptance of the da

then be made available to users 

would offset the cost of the co

Rather than grant the contractor 

information however the report 

more advisable for the contractor 

perhaps on a subscription basis 

61
would save on input costs 

access to the information 

Each purchaser could purc

software for providing the 

data to other users Hard 

also be made available for 

The report concluded 

the technical expertise the f

out

Because the Commis

future studies were unbias

an industry consultant in A

The contract provided t

independent of the feasib

become the contractor for 

F ATFI FEA

TARIFF AU

THE ATFI ADV

The Commission nex

Administration GSA for 

and entered into an interage

with GSA on August 1 198

were transferred to a GSA 

the development of a feasi

a contract for this task with 

Early in 1985 the Co

importance of not only s

public arena the opinions o

by the automation of tar

pursuant to the provisions 
Act 5 USC app I 115 the C

Advisory Committee was establis

The Commission sfirst ste

Advisory Committee was to draft 

GSA Advisory Committee Secre

the need for the Committee an

obtain a balanced membership 

membership on the Committee 

Register notice of April 12 19

Nominees were required to wa

services and acknowledge that the

procurement solicitations result

Committee

On November 11 1985 the 

Federal Register 50 Fed Reg 

Formation of the ATFI Advisory C

first meeting on December 6 1985 

Commissioner Edward J Philbin 

the Committee The nineteen in

three ocean carriers three s

NVOCCs three freight forwarde

Brokers and Forwarders Assoc

California Association of Port A

importers and the American As

Importers two information servic

Industry Association

FMC Chairman Edward V 

Advisory Committee meeting on J

guidance on the following policy q

automated system

63
Is it desirable 

Can it be stru

sufficient throu

for access to th

Is it possible 

system for the 

Can the integr

Commission 

ownership of so

the system

What means 

possibility of m

company that 

minimize inte

commercial co

dissemination o

Can the system 

public access t

made availabl

otherwise

Can system ope

public access 

Act

Can a system 

imposed upon 

technical requ

automated syst
Chairman Hickey explained that 

assure the integrity of the Comms

The Commission is to 

filings that do not com

and is to determine 

information pursua

Information Act and 

The system must p

historical records tha

and reproduced for le

to comply with req

government records

The system must obvia

or tampering with da

and authorized correc

All fees for the use of 

data reproduction a

prevent deter or imp

The critical objectives of the 

established as follows

To allow each segmen

formulate and specif

process of automating 

To educate each segm

about the needs and g

such a process

65
To investigate th

and foreseeabl

technology to ac

Then if feasi

compromises o

industry segme

acceptable and b

The Commission dire

make an indepth and critica

theATFI Feasibility Study a

implementation plan which 

of the ATFI Feasibility Stud

The ATFI Advisory 

sessions from January to N

provided input to and revie

Study Contractor The fina

Comprehensive Study of the 

System Federal Maritime Co

the basic functionality for 

assumptions the concept o

operation policy assumptio

funding This report was ap

Committee with a few sug

tariff automation requireme

were

1 Key Tariff Filing R

a Electronically c

Commission

b Provide fault tol
c Provide compatibility 

extent possible

2 Key Commission Tariff 

a Accept electronically 

essential terms amendments

b Provide tickler capabi

on a letter of criticism

c Perform computerass

filings egsyntactic validity as

d Provide workload tra

status of new tariff filings

e Generate Commission 

of rejection

f Route tariff filings

g Collect workload sta

tariffs filed in a week

3 Key Tariff Retrieval Re

a It is expected that any 

this system will be for Commisss

Thirdparty vendors will provide 

public

b Retrieve current tari

keys egorigin and destinatio

67
c Retrieve historic

keys egcommodity code

e Retrieve curren

formats egpage

f

Retrieve histori

formats egentire tariff

g Provide comput

egsubscription service

h Retrieve tariff in

egrerating

i

indices

d Link tariff inform

Retrieve tariffs t

4 Key Functionality 

a Accuracy ega

the database

b Timeliness eg

rates

c Security egus

d Special analyses 

5 Key Policy Assump

a Commission will 

via terminals in a public t
Commission will make copies of th

party vendors who could then re

services on a retail basis

b Commission would no

valueadded services directly to th

provided by third party services 

provided by the system would be 

users egfor enforcement purp

c Commission would no

rights to the database as a creativ

The functions and require

identified in the study have not c

backbone of subsequent efforts t

The system concept developed 

Commission by the Contractor h

73 million and an estimated imp

months The cost estimate was 

calculation for the fiveyear per

time frame consisted of design 

including training data convers

estimates were considered conse

were the costs for complete deve

scratch Some of the commerc

existing systems which could be a

the functional requirements of AT

The Feasibility Study conclu

Tariff automation appears to 

the maritime industry and 

automation appears to be 

potential costs of tariff auto

the reasonable range when b

69
that would accrue and 

process

The ATFI Advisor

Feasibility Study in 

recommendations which th

First the Comm

automation as d

Second the 

costbenefit stud

the perceived b

costs of the impa

G BENEFIT 

PROCURE

In October 1987 a Be

a commercial contractor 

feasibility of the project 

Office of Management and 

In December 1987 a 

for the project was obtaine

H INQUIRY ON THE 

and PRESOLICIT

In December 1987 t

draft request for proposals 

from the vendor communit

the Commission sought 

functionality of the system 
The purpose of this outreac

the regulated community and th

fully aware of the Commission s

Comments were requested from o

the basic functionality of the p

functionality as set forth in the N

constant throughout the project

The electronic AT

Commission is seeking a pr

the contractor scentral 

terminals at the Commissio

and retrieval The for

electronically filed is being d

the industry Transportation D

and will emphasize tarifflin

as under the present syst

basically equivalent to com

paper tariffs and can be ame

to issue an entire revised pa

As recommended by 

Committee standardized co

will not be mandated at th

must have the capability to 

the appropriate time The 

essential terms of service co

Full implementation o

to allow commercial firms ti

Exemptions at least tempo

types of tariff filers who are 

the electronic system

The system will be as 

existing computer equipmen

71
for full connectibilit

primarily by usin

microcomputers dia

Commission sdataba

online edit checks to 

correct and that basi

with before the tariff 

checks for example w

improper effective da

than 30days notice 

is warranted such 

provisions will still h

staff and if necessar

The system compute

this process also

The ATFI sys

mechanisms to prote

Tariff filers wi

tariff materials by r

system by carriers or 

The carrier or confe

tariff so that the a

Commercial tariff se

carriers and confere

into the database aft

their clients or tra

electronic form 

commercial tariff se

find it difficult to file 

Once the tar

Commission will do

files formatted ont

to any person at the 
of

statutory

dissemination

duty of providing

This 

charge In order to keep u

rapidly changing freight r

however interested perso

database tapes frequentl

subscription service to pro

The Commission wil

processing of the tariff data 

in competition with com

expected that those services 

tapes to facilitate their 

Commission must howev

tariff data internally for inv

purposes and will continu

available valueadded serv

for this purpose

In order to carry out 

making tariffs and essent

available for public insp

continue to have a pu

headquarters in Washing

persons can access a termin

particular tariff will be br

scanned to find the neces

copies of tariff data will s

request especially for cer

tribunals for proceedings inv

tariff rates Inquiry on Tar

1987 52 Fed Reg 48504

Explained in the Notice of 

draft RFP was remote access to 

73
modem almost any time o

information by any intereste

October 28 1986 Feasibility 

b Retrieval and 

Commission would 

a member of the g

automated tariff syste

example the system w

Coast to retrieve data 

using a terminal or mic

ie a modem to e

public telephone lines

However membe

be able to perform re

essentially no analysis 

of the public would on

a time in its full form

user would have to 

particular carrier that 

not be able to sea

community

Commission has 

a careful analysis o

precedents Commiss

thirdparty services f

retrieval and analysis 

and others in the priv

tariff automation ie

make available copies 

only if they can spec

user fee is assessed f

not expand these s
implemented How

ensure that thirdparty serv

Pages IV8 and 9

While the Commission was 

the proposed features and funct

system a draft RFP was issue

Firms and individuals on the b

submit their questions on the pro

and to attend a presolicitation co

facetoface questioning

In April 1988 the Commis

Automation Inquiry 53 Fed R

rationale for the features and fun

I REMOTE R

While the Commission was 

RFP it became aware of conce

Subcommittee on Information J

OMB Their concerns revolved 

remote retrieval As noted ea

to allow the shipping public to ob

to an individual tariff of a carrie

access to one tariff at a time 

sophisticated searches Questions 

on an apparent perception that th

with existing or intended valuead

sector firms In June 1988 the C

conmiitment to tariff automation 

of the system on hold to resolve 

53 Fed Reg 22048

During the period June Dec

reassessed the functionality of th

75
the area of remote retrieva

with officials of Congress an

revisions were made to t

exigencies and legal requ

Commission issued to som

draft RFP for comment on 

the Commission remained 

remote retrieval and stated i

draft RFP

The remote retrieval 

Accordingly this draf

retrieval question still 

the final RFP

After much analysis an

decided in December 1988 

system with remote retriev

Automation Inquiry the Co

The controlling 

functionality of its A

properly considered a

such as 1 the syste

other members of the 

role of private sect

Commission believes 

In October 198

heard of any compla

privatesector contrac

of the Feasibility of a

report accurately desc

the ATFI system in te

sector firms to fully 

submitting proposals 
and discussed by the Co

s

Committee at the time an

remote retrieval

More importantly 

Commission and the Advis

Study Report suboptimiz

functions as an accom

information firms

Commission does no

party services for the provi

and analysis of tariff data fo

in the private market Pag

Accordingly the se

allow the general public 

rudimentary retrievals of ta

of the data

In consideration of 

Commission and the availa

to properly perform t

accommodation appeared r

The shipping public s

modern technology by being 

tariff data on a limited ba

services the utilization of 

filing and retrieval contin

efficient tariff filing and re

fair competition and facilita

Accordingly and af

Commission believes that it 

policies and conflicting inter

77
system and has struck 

functionality of ATF

Feasibility Study and 

December 23 1988 5

With respect to retriev

No 102582 46 USCapp 

established new criteria fo

Section N Update on Remo

J CONTRACT AWA

After receiving many t

RFPs and after resolving 

Commission issued a final 

potential offerors on the b

received in March 1989 and 

cost effectiveness

On August 8 1989 t

Phase I System Conc

requirements and Phase 

Research Corporation PR

Virginia teaming with Data 

Pittsburgh Pennsylvania w

as the best cost proposal

The contract for the 

options for each subsequ

Testing Prototype Opera

Operation The contract is 

exercise of all options

Work on Phase I bega

fiscal year 1990 the Contra

as Phase III Developme
year Commissioner Donald R 

of the Commission sCommittee 

ADP Committee and the AT

The system Prototype Ph

1990 As required by Clauses C3

contract the Contractor resurv

developed by private industry to 

be incorporated into the ATFI 

The survey identified only one 

being developed by DXI 

requirements of the system Ana

that it would be a decided impro

At about the same time as 

the contract the Contractor an

some other changes mostly from 

improve the system One suc

substitution of a new model m

planned mainframe computer T

sufficient capacity but significant

interface screen navigation and 

submitted a proposed modifica

changes and Delegation ofProcur

from GSA for the modification

Since DXI contemplated a 

for its proprietary software it co

donate the software to the Com

agree to a cosponsor approach u

Regulation FAR at 48 CFR 24

its enhancement and relinquish

Commission Thus the new con

protect DXI srights in this sof

escrow arrangements The Com

oneyear warranty after it forma

79
complete access to the under

thereafter

Under the license agr

copyright notice as follow

Internationa4 Inc Unpublis

copyright laws of the United 

and 5222714 The Commi

this or any other commercia

prime contract requires 

performed by an affiliate o

separate from contract p

cosponsored approach allo

27408 and as implemente

arrangements complied wit

101st Cong 1st Sess 56 19

in establishing the ATFI s

steps to ensure that the pr

gaining an unfair advantage 

provision of valueadded s

contract was modified to in

The last optional phas

towards the end of fiscal 

negotiated an extension o

include ongoing maintenan

Commission also intends to 

a view towards making AT

including enhancements res

K DOC

On August 1 1990 the 

9023 in which it issued 

NOI Advanced Notice o

further public comment on 
considered for ATFI and how th

tariff practices

On September 5 1990 a 

system was held After being pro

the system 22 firms submitted pu

October 1990 On December 26 

a first Interim Report Firs

considered the comments and res

NOI

On March 25 1991 the C

Interim Report Second Interim 

concerns of four Electronic Tar

raised their concerns in testimon

year 1992 authorization hearing h

Merchant Marine of the Hous

Marine and Fisheries on Februa

were submitted to the Commiss

Second Interim Report clarified th

a schedule to the extent possi

Batch Filing Guide is all that 

immediate development of its ow

The Commission sThird Int

Report in this proceeding was is

notice of availability appearing on 

35847 and finalized most of the 

August 1990 NOI so that a Noti

could be issued The additional co

commenters in this proceeding w

comments were invited on the on

modified approach to the Harmoniz

transition plan

81
The proposed rule in 

Contracts was issued on S

46044 as a new Part 514 

for comments being Octob

information to the propos

where the Commission sre

major policy issues listed i

current CFR of portions of 

matter is being filed in elec

sole allinclusive CFR p

contracts Other CFR part

tariffs and service contracts 

Parts 515 520 550 580 and 

The proposed new Pa

traditional regulatory policy 

new electronic system 

functionality the proposed 

features

The Harmonized 

modified for AT

and codifying co

The essential te

tariffs themselve

database forma

Assessorial ch

algorithm math

In order that the pub

of ATFI for filing andor 

important materials the 

portions of the proposed r
1991 56 Fed Reg 61164 at a

comments to the entire proposed 

As suggested by the 199

comments were invited and an 

conducted by the full Commiss

consideration of all the comments 

proposed rule in an interim rule 

Reg 36248 The interim rule 

issues as follows

The Harmonized Cod

was changed from 

preferred without pre

As suggested by the co

of service contracts co

vis the database forma

some degree of standa

and with the final fo

another round of com

Algorithms need not c

possible assessorial ch

pre determinable Th

algorithm requirement 

for linking textual r

TLI ie the du

linkage Under the f

terms no algorithmiza

Further comments were in

publication especially on sugges

essential terms As a result of thes

ATFI Amendments were issued o

Reg 25 effective on February 3 

83
rounds of comments in 199

Interim ATFI Amendmen

electronically filing essentia

in fulltext format W

retained such as the numb

required terms the new pr

filing and therefore made 

other hand the fulltext fo

retrieval more difficult for 

decision may have to be re

The two 1993 rounds 

rules addressed almost so

rather technical or operatio

addressed and resolved to t

L BATCH 

The proposed refine

issues contained in the fisc

also required revision of th

Reference Tables Transac

1990 The NOI in Docke

Conunission would not mak

software but would distrib

reference tables in a batch 

and transfer of tariff data 

the development of their o

Accordingly the Firs

in Docket No 9023 appen

containing inter alia trans

dictionary and code refere

the Batch Filing Guide 

reflect major system impro

attempting to provide the 
of such changes as possible O

Guides such as the ATFI Fund

revised when necessary and 

subscribers This process is ex

the life of the system

M MISCELLANEO

Information Bulletins I

containing Technical Questions 

April 10 1991 and September 

1991 technical meeting for the 

year 1992 three more technical 

0692 and 0792

Upon Commissioner Qus

Commission in early fiscal year 

Hsu was appointed by Chairman 

charge of the Conunission sAD

project

Certifications of firms for b

late fiscal year 1992 There no

many of which are assisting carri

their tariff matter to electronic f

On February 11 1992 IB 

implementation previously sched

to be postponed as a result of 

FMC headquarters offices Whe

would take place in August 199

and Order in Docket 9023 issue

a new implementation schedule w

in by tradeareasoperations of 

1993

85
The implementation 

December 17 1992 at 5

republished on May 28 199

schedule provided that the o

at different times in cale

conferences operating in the 

trades were scheduled to fi

European trades the Afri

AmericanCaribbean trades 

trades Terminal operato

offshore trades filed last Fin

beginning of the electronic 

service contracts Many filer

extensions of time A tota

carriersconferences were 

enabling carriers to extend t

extensions however the 

December 31 1993 as being 

be in compliance Those 

Conunission schedule found 

show cause why their tariffs 

to timely file in ATFI form

ultimately had their paper 

An additional Show Cause O

year for issuance early in fi

anticipates canceling all rem

The Commission achi

environment during fiscal 

electronic tariffs filed durin

were conversions from pape

were 3763 effective tariffs in 

essential terms of servic

November 22 1993 are ele

them available on a 24hou
1000 new organizations were g

during the fiscal year bringing t

Meanwhile new Part 514 

established by the rulemaking in 

sufficiently finalized to provid

especially the new filers along w

ATFI User Guides Batch Filin

and ATFI System News One 

change involves the addition to 

locations

Additionally 46 CFR Par

tariffs and service contract 

implementation of ATFI has be

nonATFI related purposes such 

AntiRebate Certifications in Do

not directly involving electronic f

of Part 514 include Dockets Nos 

Contracts 57 Fed Reg 46318 

Regulations Exemption Under S

1916 57 Fed Reg 44697 

Requirement for TariffIncreases in 

Exemption Under Section 35 of

Reg 44504 and 9237 Financia

Operating Common Carriers 58 

New rules directly related 

requirements are the Electronic F

No 93 01 of May 17 1993 a

Implementation of Section 502 o

No 9303 of May 27 1993 at 

more detailed analysis of the lat

87
N UPDATE O

SEPTE

Since the 1986 Feasibi

above the Commission sA

accommodate remote filing 

modems to and from the offs

However to avoid comp

services the design origin

remote retrieval such as the 

information onetariffata

A similar restriction w

No 10192

The Commission 

on the system to limi

person

Congress explained this pro

Concern has be

accessibility of the AT

In particular the remo

public to dial into the 

Additionally subsections 

August 16 1989 46 App USC 

Federal Maritime Commission 

electronic copies of the Automate

are made available in bulk in a 

the Commission shall assess reas

section 552 of title 5 United States 

shall provide that any informatio

Information System that is made 

or disseminated by any person w

additional fees or royalties
particular carrier srates on 

given trade

At the present time 

reasonable controls in the 

offered because the system 

implemented However t

possibilities are reasonable 

could be limited to retrievin

full format and the use woul

tariff of the particular carr

alternative specific limitatio

imposed and automatic logo

limitation or a combinatio

requirement discussed herei

101st Cong 1st Sess

While the ATFI sys

developed the Committee 

built into the design These 

of a limitation on access at 

the total amount of time on 

logoff feature Some fo

assist in preventing circu

features and prevent a mono

single entity S Rep No 7

Both the House Merchant M

Committees also requested t

developments on reasonable re

Update on Remote Access 

89
Commission s28th Annua

1989 and the practice has 

In addition to the 

contained in HR Rep 1

162 the Commission sfis

In implementing 

the Commission to 

that ATFI will not c

of information serv

Feasibility Study re

system should be o

analysis of the da

governing the system 

to access the system 

automatic logoff

S Rep No 

added the word 

language is ide

The ATFI Contra

staff had developed rea

governing remote access 

Congress as described abo

further modification as re

after experience during p

regulatory requirements w

December

The Update

1990 Interim

on Remote

Report

Re

Ocean Freight Tariffs in Foreign a

ATFI Notice of Inquiry with ap

1991 through 1993 the Commiss

public comment as well as pub

Prototype Phase
enactment of Pub L No 102582 

below

It is still intended however 

off for any kind of modem access 

inactivity This is similar to many 

access services

For remote retrieval of tar

particular tariff desired to be acce

help tables at logon To identify 

also are various help functions 

before bringing up the item on th

Because tariffs will continu

sections governing the applicability 

the same tariff also may be acce

tariff filer has a separate Rule

instead of an allinclusive sectio

types of governing tariffs also ma

the same session There is no artif

atatime other than that dictated 

the system itself

The original design had inten

automatically loggedoff a session 

as 30 minutes The period of ti

sufficient exploration of all the a

another TLI if there was a mista

After experience it was intended 

adjusted upward or downward

Software and instructional m

many problems as possible before 

minimize errors and rejections 

determine that a filing session has 

91
will be allowed free acce

consult a special message 

The fewer the errors the 

The ATFI system 

identification and monitori

taken to prevent access ab

The Commission sin

1992 and January 4 1993 

Contracts have addressed r

submitted by the public

On November 2 19

Pub L No 102582 sect

1707a repeals section 2 of 

USC llllc see abo

restrictions on public retrie

the ATFI system

Accordingly on Febr

a notice of proposed r

Implementation of Section 

public comments were subm

was issued on May 27 19

1993 In addition to re

retrieval the new law a

contained the following ma

Electronic filing 

September 1 19
The Commission ma

data electronically to 

quantity or other limn

A fee of 46 cents a mi

1 Direct remote 

the lowering of 

of 50 cents per m

2 Subsequent co

of ATFI data m

tariff service for 

Commission sim

thirdparty vend

ATFI database 

approval a plan 

fee from their c

monthly to the 

1994 six suc

accounticollectio

Because not al

effective by the 

however initially 

access to ATF

otherwise This 

carriers complet

format

S The original ATFI design had 

automatically loggedoff a session after a 

The period of time established would al

applicable rules and perhaps another TL

the first TLI After experience it was int

adjusted upward or downward The new 

not allow such a limitation

93
The statutory fees ar

on October 1 1995 Th

remote retrieval issue dur
VI

THE FOREIGN 

PRACTICES AC

A GENE

The Omnibus Trade and C

enacted by Congress and effective 

on August 23 1988 contains at Tit

Shipping Practices Act of 1988 F

The FSPA directs the Com

conditions affecting US carriers 

trades which conditions do not ex

USeither under USlaw or as a 

or others providing maritime or ma

US

Although the Commission 

proceedings in the last two yea

Docket No 9119 and one in th

9144 the Commission continues 

commitments made to resolve issu

Commission can institute new proc

sufficient progress is not being 

adversely affecting UScarrier op

B TOP TWENTY US

TRADING PA

Section 10002 gof t

Competitiveness Act of 1988 requi

annual report to Congress a list o

95
that generated the largest v

the most recent calendar y

States

list of

The

top

data

twenty

which

partners

the s

Census Census The C

tramp tanker and dry c

service as that type of serv

of vessels on berth The 

vessels in liner service are 

supplied to the Commissio

all nonliner shipments in 

The export data are 

Export Declarations while 

the import entry and ware

of documents are require

These data are subsequent

and import statistics exc

possessions shipments of 

imports of vessels themse

military household goods 

supplies intransit shipmen

The most recent y

available to the Commissi

on the next page gives 

generated the largest vol

bilateral trade with the US

represent each country sto

thousands of long tons
Top Twenty US

Trading Part

Rank Country 

1 Japan 

2 Taiwan 

3 China PRC 

4 South Korea 

5 Germany 

6 United Kingdom Incl N Irel

7 Hong Kong 

8 Italy 

9 The Netherlands Holland 

10 Brazil 

11 Indonesia 

12 France 

13 Thailand 

14 Belgium 

15 Australia 

16 Spain 

17 Venezuela 

18 India 

19 Malaysia 

20 Philippines 

Source US Department of Commerce 

above are based on monthly data pro

revision

97
For calendar year 19

in the ranking order of the 

partners as compared to th

seven countries remained un

to lead as the number one US

volume far exceeding other 

tons Liner trading with oth

as well Taiwan China P

their respective ranks as th

UStrading partners

The changes that did 

ranks of Italy from 9th to 8

to 9th Also Brazil and Ind

in rank to 10th and Ilth re

and Belgium each fell by tw

and 14th respectively In

displacing the Philippines 

Philippines dropped to the 2

of the top twenty USliner 
V

SIGNIF

OPER

ACTIV

B

ORGANIZAT

A OFFICE OF TH

1 General

The Office of the Secretary 

all matters submitted to and ema

the Conunission Accordingly t

preparing and submitting regul

matters for consideration by the C

maintaining the minutes of actions 

these items receiving and proc

complaints involving violations o

other applicable laws receiving a

applications and applications 

administrative errors in service c

notices of actions of the Commis

and records of all formal 

communications petitions notice

legal instruments in administrativ

served on the Commission or mem

administering the Freedom of Inf

Sunshine and Privacy Acts respo

from the Commission staff marit

issuing publications and auth

documents of the Commission co

volumes of Commission decisio

copies of the Commission sreg

responsible for approving or deny

The Secretary s Office 

development of rules designed 

complexity of formal proceedin

implementation of legislative cha

During fiscal year 1994

101
The Commissio

formal proceed

were discontinu

while 5 initial 

Judge became 

Commission r

concluded 246 

informal docke

against carriers 

period the Co

rulemaking pro

rules

Seven rulemak

petitions were p

end of the yea

are anticipated 

Special Docket 

proceedings du

2 Office of Informal 

Informal Dockets

This Office coordinat

system throughout the Com

and information requests 

Recoveries to the general 

other savings attributable 

amounted to 115 634 S

complainants recover over

The Office facilitated 

industry representatives and 

materials and information 

During fiscal year 1994 t
telephone requests and inquiries T

with members of the President sC

which it participated throughout t

In addition the Office is 

adjudication of reparation claims u

shippers against common carrier

foreign and domestic offshore co

claims must be predicated upon v

1984 Act or the 1933 Act Many 

this program constitute shipp

adjustments arising from alleged o

a significant number pertain to 

effects shipments During fiscal ye

while 10 pending cases were car

year During the same period 36 

concluded by the Office while 1 o

There were 2 pending cases at th

During fiscal year 1994

The Office continued it

discussions designed t

and complaint reso

discussions included 

hotline technology 

methodologies

The Office completed 

number of reparation c

violations on the par

specializing in auto tra

carrier commanded a 

resources and involved 

of individual shipp

consumers

103
The Office en

general public 

consumers of it

wider use of th

against interna
B OFFIC

ADMINISTRATIV

1 General

Administrative Law Judges 

the receipt of a complaint or ins

Commission sown motion

Administrative Law Judg

administer oaths and affirmatio

offers of proof and receive rele

depositions to be taken wheneve

served thereby regulate the 

conferences for the settlement o

consent of the parties dispose of 

matters make decisions or recom

other action authorized by age

Administrative Procedure Act

At the beginning of fiscal 

were pending before Administra

year eighteen cases were ad

proceedings remanded to Admini

proceedings The judges held five 

three formal oral hearings includ

the final phase of the Guam case 

settled eight proceedings dism

proceedings and issued three 

proceedings and one initial de

One formal proceeding was remo

Judges and consolidated with a p

Commission

105
2 Commission Action

The Commission ado

informal decision and parti

3 Decisions of Adm

proceedings not yet 

Marlyn Menitt AMG 

Maritime Group andArie

Javelin Line Trans Afric

Buccaneer Line and Uni

Violations of Sections 

ShippingAct of 1984 Do

This proceeding is 

Commission has investigate

companies he created and o

his companies were found 

failed to adhere to their file

violation of sections 10a

its predecessor statute In 

84 38 Ariel Maritime Grou

were assessed a penalty of 

instant proceeding Merritt 

by the Commission After 

Appeals for the Second Cir

Commission to determine M

and the proper amount of a 

Because Mr Merrit

penitentiary after his convic

it was necessary to develop t

deposition at the prison and 

the question of his abili
investigators Mr Merritt was 

rebutting the evidence adduced 

On the basis of the evide

Decision served April 18 1994 

had access to and control over fu

and that under applicable law h

in that amount because all of his 

committed knowingly and willfu

that in the 1984 Act Congress 

Commission to raise penalties to 

willful violation of law rather tha

per violation which it had been t

of the violations

4 Pending Proceedings

At the close of fiscal year 19

proceedings of which two were 

Commission The remaining proc

filing of complaints or applicat

water shippers conferences p

terminal operators trade associa

107

C OFFI

THE GENERA

The General Counsel pr

Commission This includes revie

recommendations for Commiss

rules to implement Commission 

decisions orders and regulation

In addition the Office of the Gen

or oral legal opinions to the 

general public in appropriate c

detail below the General C

Commission before the courts and 

Commission sinternational affai

1 Decisions and Rulemak

The following are adju

representative

Office

of matters prepar

Coloading Practices by Non 

Carriers Shipper Affiliate Ac

Docket No 9322 58 Fed 

1993

The Commission issued a 

coloading regulations to remove a

and reflect developments in colo

proposal would redefine the ter

combined pursuant to an agr

NVOCCs and to exclude cargo fo

issues its own bill of lading T

comment on whether full co

109
coloaded The proposed 

agreements to be put in w

Commission prohibit coload

a service contract and lim

service contracts The Com

the more fundamental issue 

prohibited altogether

Upon review of the 58 

the proposed rule the Com

proceeding in abeyance and 

coloading practices are cons

Therefore on November 4 

new proceeding Docket No 

for Coloading Practices and 

Coloading in which it serve

contravene statutory tariff 

94 26 also solicits comment 

initiate a proceeding unde

exempt some aspect of c

applicable requirements if no 

can be identified Comment

of the year

Regulations toAdjust or M

Shipping in the Foreign 

Docket No 9320 58 F

1993

Following publication 

and receipt of a single com

final rule updating its regula

section 19 of the 1920 Act 4

The revised rule reflects the 

19 made by section 103 of P

Section 19 Amendments 
clarified and expanded the po

address unfavorable shipping 

which affect intermodal sh

transportation activities and 

gathering and discovery tools 4

The rule also included some edi

added a number of new sections 

statutory authorities and restru

logical presentation

Waterman Steamship Corpor

Inc Docket No 93 15 26

1993

In July 1993 Waterman S

complaint against General Found

Foundries fraudulently induced 

possessory lien on six shipme

stopping payment on checks tend

violation of section 10a 

administrative law judge ALT 

ID on December 9 1993 fin

conduct amounted to an unjust 

obtain ocean transportation at le

violation of section 10aand 

Foundries filed exceptions to th

should have dismissed the pro

doctrine offorum non conveniens 

exception to the ALJ sfinding th

device or means in violation of 

issued June 13 1994 the Comm

respects and awarded 53610 4
Service Contracts Dock

4885 February 2 1994

The Commission initiat

proposed rule to amend the 

contained in its service contr

a group of shippers would 

association if it met certa

proposal clarified the terms c

as used in the subject defin

The Commission receiv

proposed rule Upon re

reevaluation of the concern

Commission concluded that 

Commission noted that the 

close and difficult questions 

resolved because of practic

against additional regulat

negotiations between carrier

Western Overseas Trade a

North America Eastboun

9206 Allstate Trading 

America Eastbound Ra

9207 Thai Agri Foods 

America Eastbound Ra

9217 Pacific Motif 

Eastbound Rate Agreem

SR 874 April 26 

February 24 1994

In February and Marc

Eastbound Rate Agreemen
contracts with several shippers i

Pursuant to each of these service 

to ship a certain minimum quantit

ANERA agreed to supply suffic

carry the cargo at certain fixed r

cargo under the service contra

contract rates therefor

None of the shippers m

Commitment MQC and A

liquidated damages dead freig

contracts When none of the s

damages ANERA sought arbitrat

contracts Rather than acced

demand the shippers initiated com

Commission

The original complaints con

first that the service contracts we

defined by section 321 of the 

initio because they did not co

commitment on the part of ANE

independent action IA rates du

contracts that were lower than the 

contracts violated sections 10b6

1984 Act and third that ANs 

liquidated damages violated sectio

The ALT granted motions 

complaints and complainants a

disposed of the appeal in its orde

forth the following conclusions w

complaints

113
The Commissi

whether a purpo

to section 8c o

Although the s

limited the shis

failed to perfo

contracts void a

The member lin

IA to establish 

corresponding r

contracts and

Section 8c of t

from hearing c

although couche

that Act sough

available in a br

were brought b

While the appeal to 

several of the complainant

ANERA and Orient Overs

Each of the amended comp

behalf of ANERA falsely 

into its service contract with 

moving pursuant to OOs 

complainant sMQC under 

contended that as a result 

sections 6g8c8d1a

of the 1984 Act Complain

order ANERA to cease and 

dead freight and to acce

made as just and reason

properly filed with the Com
contract Complainants sought 

interest received as a result of e

fees

quantity

They

requirements

also requested

of the

an orde

Ser

contribution from OOCL in the e

collection of dead freight

The ALJ granted motions 

amended complaints and compla

served February 24 1994 the 

section 8c bars the Commission 

although couched in terms of alleg

assert a common law defense to a 

liquidated damages

American President Lines L

Corporation Docket No 

President Lines Ltd v Cy

Docket No 9201 26SR

American President Lines 

complaints against Cyprus Copper 

violations of section 10aof 

alleged misdescriptions of certain 

Japan Upon APL smotion for su

motion for subpoena the presi

denying Cyprus motion but gran

reparations of 455 34 57plus i

declined to award APL the attos

Both parties filed exceptions to the 

heard oral argument

The Commission in an ord

found that the filed rate doctrine 

under the 1984 Act and therefo

other than tariff rates is irrelevan

115
found correct the ALJ sden

However the Commission 

the state of the record In 

classification of the cargo u

methodology used to c

Commission accordingly re

to resolve those limited issu

should APL ultimately pre

for attorney sfees The AL

matter during which both 

introduced additional evide

ID in which he found tha

cargo shipped according to 

used the proper methodolo

due Cyprus has subseque

but APL has yet to reply 

the exceptions and issue a 

Actions to Adjust or M

Shipping in the United SK

9124 26 SR585 N

The Commission de

proceeding pursuant to sec

on US carrier operations 

imposed by operation of R

are precluded from engagin

and from directly contra

substantial commitments m

potentially resolved mos

suspended further action 

1991 and solicited additio

February 1992 and May 

August 12 1992 were so

discussions held during the 

on the basis of those 
Government restrictions on US 

existed in the trade and accordin

fees of 100 0per voyage on R

ports Those sanctions were sus

1994 in light of ROK Governm

or adjust those restrictions US

submitting periodic reports a

developments in liberalizing Ko

rail access On May 13 1994 a

the progress achieved by 

implementing commitments to 

Commission withdrew the fina

proceeding

Burlington Northern Railro

Terminals Inc Docket N

May 21 1993

Complainant a rail carrie

Respondent a marine terminal o

the case to obtain the Coms

reasonableness of the tariff ite

operator was seeking to recove

question concerned an assessme

terminal the terminal claiming 

on the railroad in the form of 

facilities in completion of the ras

rail cars to the terminal In its 

the rail carrier challenged two 

with charges to be assessed agai

of disruption of rail service or d

the terminal

The ID of the ALJ held 

jurisdiction over the subject ma

tariff items but that the tariff ite

117
subject to publication of a 

marine terminal functions 

reversed the holdings that i

under section 10dof 

1709 dover charges fo

in the order requested for u

Complainant is not a user 

facilities insofar as these inc

supporting structures Ta

disruption and delay in deliv

Commission sjurisdiction u

deleted from the marine 

Commission also reversed th

section 33 of the 1916 A

determination of the reach 

otherwise adopted and the p

the parties to seek clarificat

Commerce Commission 

declaratory order in a pr

August 9 1994 the parties 

ICC reporting that they have 

to settle and need the time 

Application of Orient Ov

Inc for the Benefit of 

Special Docket No 

February 8 1994

The Commission revie

officer SDO denying Os

seeking a waiver of collection 

The denial stemmed from O

SDO s numerous requests 

inaccuracies in OOCL s ap

Commission following the Ss

of the shortcomings of its ori
considered the merits of OOC

s

granted some special docket re

innocent shipper for OOCL sd

present and prosecute its applica

The Commission warned how

engage in extraordinary efforts 

special docket applications and 

as well as the Commission sst

special docket caseload dictate 

timely and forthright manner to 

the denial of an application

2 Litigation

The General Counsel re

litigation before courts and o

Although the litigation work Larg

Commission upon petition for re

US Courts of Appeals the Ge

in actions for injunctions enfor

actions to collect civil penaltie

Commission sinterest may be a

The following are represe

the Office

All State Trading Co et a

941165

The complainants in W

Development Corp v Asia No

Agreement Docket No 9206 A

v Asia North America Eastbound 

9207 Pacific Motif Inc v Asia 

Agreement Docket No 9218 d

for review of the Commission s

11
dismissing their claims Af

petition to stay the Comms

petitioners settled their disp

settlement they have petition

with prejudice

Universal Fixture Manufac

Cir No 941623

Universal Fixture Man

filed a complaint against AN

the 1984 Act The dispute c

between Universal and A

shipped less cargo than it had 

the Commission issued a 

violations of sections 321 

remanding the proceeding to 

was warranted Subsequent

to dismiss the remaining alleg

granted on November 18 19

to the Commission

allegations

On appeal

of misrepresenta

the Com

court or arbitrator and n

Commission found that Us 

misrepresentations waiver 

common law contract action

claims under the 1984 Act T

that there was no common so

and that the filed rate doctrin

also found that Universal did 

that it did not have to resolv

costs at that time Univers

review with the US Court o
Best Homeware Inc v FMC 

This proceeding was initiate

by Best Homeware Inc Be

Overseas Container Line USA 

violations of various sections of 

arose out of a service contract e

ANERA under which ANERA 

from Best for its failure to me

ANERA subsequently filed a mo

to which Best replied On May 

order granting ANERA s moti

Commission

The Commission in an ord

upheld the ALPs dismissal of the 

concluded that such a course of 

treatment of similar issues in 

Commission further concluded th

those cases were on appeal did no

be stayed Best subsequently file

Commission sorder with the US 

Circuit However Best and ANE

and Best spetition was dismissed

USA FMC v Marlyn C 

88Civ 6253 TPG

Martyn Merritt appealed the 

District Court for the Southern Di

the Commission sdecision in 

Commission had assessed penalt

Merritt individually and jointly 

Maritime Group Inc and other M

companies charged with multiple 

1916 Act The US Court of Ap

121
affirmed the District Cou

s

the Commission sorder cou

to the US Courts of App

Court of Appeals affirmed 

the Commission that substa

in defense of an action to 

under the 1984 Act In the 

continuing orders of garnis

assets were entered on June 

entered on March 3 1994

FMC v Wilfredo Garcia 

W Garcia Forwarding 

District Court Middle 

Action Number 3 CV9

On December 7 199

seeking a preliminary injun

violations of the 1984 A

Commission administrative 

The defendants had alleged

in freight forwarding service

as an NVOCC without a 

willfully using an unfair d

transportation for less tha

unfair practices in the adjus

failing to establish observ

regulations and practices 

receiving handling storin

defendants had also allege

other unlawful conduct in b

with ocean common carrier

licensed freight forwarde

consent and assuming fict

identities
TheUSDistrict Court gran

Upon information that defendants 

the Commission filed a Motion 

Alleged Contempt for Violatio

District Court entered a Stipula

March 8 1993 which among oth

from violating any provisions of t

permanently enjoins defendants f

trucking transportationrelated ac

to injured shippers and termina

telephone numbers Defendants 

allegations and violations in FM

Court ordered a public defender 

A hearing was held on July 6 1

months of imprisonment The Co

Garcia sarrest on July 14 1994

3 Legislative Activities

interests

The

in

General

all matters

Counsel

before

re

commenting on proposed legis

preparing testimony for Commis

to Congressional requests for as

On December 20 1993 Pre

the Coast Guard Authorization 

103206 Section 320 of this Act a

No 89777 pertaining to nonperfo

indemnification of passengers 

amendment allows the Commiss

necessary bond amount for passe

123
During fiscal year 

Congressional inquiries wer

comments The Office 

testimony for four Congress

4 Significant Ongoin

Fact Finding Investigation 

Atlantic Agreement and 

On July 27 1994 th

commenced an extensive inv

Trans Atlantic Agreement 

order instituting Fact Fi

Commission announced tha

the TAA lines have engage

Act including

Unreasonably in

reducing compe

Operating unde

filed or in a m

terms of its filed 

Retaliating again

threatening to re

or by resortin

discriminatory m

Subjecting parti

traffic to unreaso

or unreasonable 
Knowingly and willf

account of untariffed 

entering into service 

Boycotting or takin

resulting in unreason

Allocating shippers 

prohibiting TAA me

from particular shipp

Charging demanding 

less or different com

property than the app

The investigation was laun

alleged unlawful activity by TAA 

the Commission sown monitorin

petitions filed by the National Ind

and by Container Freight Inte

Consolidation Services DCS 

included in the scope of the fact 

To augment the fact findin

two compulsory orders directin

provide information and docum

restrictions on the exercise of the 

TAA members and 2 TA

transshipment agreements and 

agreements The Commission i

use of such agreements constitu

circumvent otherwise applicable 

125
The purpose of th

Commission to determine w

of violations of the 1984 Act 

the institution of injunction 

The Director Bureau of H

attorneys in that Bureau w

Officers with continuous 

Commission sother Bureau

directed to conclude this p

advise the Commission if 

action particularly injunctiv

hearings were conducted in 

Washington DC

Petition for Investigatio

Actions of the TransAtla

P394 26 SR1312 

On December 30 199

filed a Petition requesting 

certain allegedly unlawful a

alleged inter alia that TA

contracts with them on term

entitled The petitioners 

calculated their service con

set forth in TAA s 1994 Bus

been applied to other sh

petitioners argued constitu

refusal to deal in violation 

asked the Commission to in

to seek an immediate injun

of the 1984 Act

The FMC took a thre

petition First it declined t

TAA salleged discriminatio
petition appeared to have a num

weaknesses However the Co

judgment with regard to the 

petitioners were reminded that th

complaints with the FMC

Second the FMC held in a

petition which urged the Commi

federal court The Commissio

determine whether to act on 

regarding section 6 more info

Accordingly the Commission sBu

Analysis requested from both 

carriers additional material re

injunctive relief

Finally the FMC directed 

provide information about othe

which were mentioned but not f

and in TAA sreplies In the factu

contract claims the petitioner

repeatedly refused to book car

contracts in an effort to forc

renegotiate their contract rates 

separate order pursuant to sectio

TAA and its member lines to pro

and documents relevant to these d

section 15 order were received by 

1994 and are currently being co

Commission sbroad fact finding 

Finding Investigation No 21

127
Petition for Further Inqui

the TransAtlantic Agree

SR June 8 199

On June 8 1994 the 

petition from CFI and 

discrimination and refusal 

1994 service contract offer 

show that TAA rigidly appli

ceiling for all shippers excep

to this second petition on Ju

and providing data purpo

situations similar to CFI and 

petitioners with regard to th

currently being investigated 

Investigation No 21 procee

Petition ofthe National In

for Investigation and Re

Activities ofthe TranAtln

P694 26SR Ju

On July 11 1994 the 

P694 Petition of the Nation

for Investigation and Relieffr

the TransAtlantic Agreemen

that TAA has unreasonab

unreasonably decreased t

generally abused its domin

The NITL Petition requeste

investigation into TAA sac

under section 6gof the 19

anticompetitive agreement 

that the Commission comm

Court to enjoin certain of Ts
Included in the NI TL 

prepared by shippers and othe

transportation services These s

purportedly anticompetitive act

NTTL Petition and its accompa

within the scope of Fact Findin

Section 6gof the Shipping 

9323 58 Fed Reg 6216 

The Commission initiated 

Rulemaking concerning sectio

purpose of the Advance Noti

whether the Commission should 

that would describe its enforce

and if so what form such guid

round of comments the Comm

broad range of comments on the 

of the possible 6g guideline 

invited and received reply comm

government agencies On Nov

voted to discontinue this procee

methodology was best develope

application

On the same date the 

proposed rule to revise its in

requirements This new rulem

various meritorious suggestions 

No 9323

12
5 Foreign Shipping 

Matters

The Commission has th

foreign shipping practices und

the FSPA These statutory t

make rules and regulations g

to adjust or meet conditions 

address adverse conditions 

trade which conditions do n

US

During fiscal year 1994 

prepared and submitted seve

rules to the Commission on m

the ROK trade See Docket 

corrective action by fore

Commission to discontinue tw

two years one in the Japan tr

Address Adverse Conditions Af

do not Exist for Foreign Ca

Trade and one in the Taiwan 

to Address Adverse Conditions 

the United States Taiwan Tra

monitor the progress on 

outstanding issues The 

proceedings regarding these 

sufficient progress is not be

adversely affecting UScarri

The Office of the Gen

interagency groups and inte

particularly as technical advis

Policy Group whose other m

the US Departments of Tran

Justice and the Office of the 
Office also coordinated and par

visitors

Another responsibility of 

and verification of controlled c

1984 Act Common carriers tha

foreign governments are requir

filing requirements under the 19

and makes appropriate recomm

regarding the status ofpotential 

in conjunction with other C

monitors the activities of cont

1994 the Office reviewed docum

to the controlled carrier status o

13

D OFFIC

EQUAL EMP

OPPORT

The Office of Equal Empl

applies knowledge of Federal EE

concepts procedures and regulat

comprehensive program of equal 

Office works independently u

Chairman to provide advice to th

in improving and carrying out its 

discrimination and affirmative p

The Office is responsib

planning special emphasis pr

processing and adjudication with 

assigned EEO counselors and 

Coordinator

The Office works closely w

Personnel managers and superv

Improve recruitment 

minorities and p

conditions in the wo

Provide adequate car

Facilitate early reso

problems

Develop program pla

13
The Director Office 

employees who raise allega

the investigation hearing 

resolution of such compla

rejects formal complaints of 

decisions for resolution of fo

evaluates the program simp

Significant accomplish

following

1 Provided briefings to s

the Civil Rights Act of 1991 

2 Resolved all complai

program which had a pote

settlement costs of approxim

3 Provided extensive co

supervisors and employees

4 Assisted in manageme

5 Continued to utilize o

the agency to upgrade the s

EEO staff

6 Developed workshop 

executives district directors 

7 Planned and develope

participation

8 Continued to improve 

Federal agencies and the co

programs in the special em
9 Continued to chair the Sm

Directors

During fiscal years 1995 and 

all existing programs and initiate 

to increase an understanding of E

135

E OFFI

INSPECTOR 

The Office of Inspecto

Conunission was established pur

Act of 1978 which was ame

additional statutory inspectors 

entities including the Commiss

It is the duty and respons

Provide policy dire

supervise and coordi

relating to the Cs 

operations

Review existing an

regulations relating t

and operations and 

concerning the imp

regulations on the ec

the prevention and de

the administration o

and operations

Recommend policies 

or coordinate othe

financed by the Com

promoting economy 

administration of or p

and abuse in the C

operations

Recommend policies f

or coordinate relations

137
and other Fed

governmental a

agencies with res

promotion of e

administration o

of fraud and ab

administered or 

the identification 

any fraud or abu

Keep the Chairm

currently inform

other reports co

problems abuse

administration 

administered o

recommend cor

problems abuse

the progress mad

action

In fiscal year 1994 the 

draft audit and two ope

completed two extensive su

number of formal and i

conducted during the fiscal 

In January of 1994 the 

principles under which the

management in their depa

their mandate to attack 

principles encompassed in 

all senior managers at the 
The Inspector General par

of the Executive Council on Inte

and serves on a number of comm

In fiscal year 1995 the OIG 

of significant audits as well as op

followup reviews Investigat

necessary The Commission sIn

his participation in the ECIE w

exchange of views for the inspec

The General Accounting 

November 1993 titled Inspectors 

Strengthen OIGs at Designated F

principal recommendation in th

develop strategic plans that ass

risks and problems and describe t

the risks The DIG supports the 

to make this a priority project in 

The National Performance 

also have an impact on the 

completes and the manner in w

The OIG will continue its efforts 

establish a full collaborative wor

139

F OFFICE 

MANAGING 

The Managing Director 

responsible to the Chairman 

coordination of Commission pro

is Bureau of Trade Mon

in Bureau of Tariffs Ce

Bureau of Hearing C

Bureau of Investigati

Bureau ofAdministra

and thereby implements the 

Commission and the administrat

the Chairman

Also the Managing Dire

guidance to the

Office of the Secretar

Office of the General 

Office of Administrativ

and administrative assistance to t

Office of Equal Emplo

Office of the Inspecto

This has been established to 

achievement of Commission goals 

In addition the Managing D

and Management Internal 

Commission and the Office man

141
Managing Director is the 

Executive its Designated 

Management Official and t

Officer

At the beginning of fis

Director supervised the d

Contracting Officer for the 

his untimely death the C

Bureau of Administration 

Additionally the Chairman 

Commission as the Chairm

responsible for ATFI overs

A significant achievem

1994 was the Office scoordi

program involving all oper

effort was the achievemen

number of vesseloperatin

USNorth Mediterranean 

Additionally the Commissio

investigation into the activi

late in the fiscal year wh

bureaus Hearings were he

fiscal year 1995

The Office is current

1 Guiding both the imp

system under Commissione

for future ATFI contract re

2 Overseeing all enforce

3 Managing the Comm

s

respect to the President s
streamlining government strate

reform and

4 Directing all staff efforts 

practices of foreign governmen

The Office skey objectives 

are the continued coordination 

implementation and maintenan

development of the new A

development of the Commiss 

organization of staff action to im

with respect to streamlining strat

reform and continuing oversig

restrictive practices of foreign g

143

G BUREAU 

MONITORING A

1 General

The primary function of the 

and Analysis is to plan develo

related to the oversight of concerte

by water under the standards of 

The Bureau smajor program acti

Administering compr

programs to identify an

commercial and econ

UStrade in order to 

staff apprised of curren

trends and regulat

waterborne liner trans

Conducting systemat

activity

administration

in areas

of statu

rele

Developing economic 

responsibilities

support of the 

Processing and analy

marine terminal agree

Providing expert econom

formal proceedings pa

foreign shipping pract

rateofreturn cases

145
2 Surveillance

An integral part of the 

1916 Act and the 1984 A

carrier activity and comm

trades The goal of Burea

that carriers operating in 

statutory standards of the 

regulations To that end 

monitoring programs and 

apprise the Commission of 

commercial trends and ca

For a description of th

fiscal year 1994 see Sectio

3 General Economic 

In addition to researc

to its monitoring program

expertise for a variety o

economists prepare testimo

fact finding section 19 an

assistance in formulating C

speeches and briefings for 

Projects the Bureau 

included 1 an advanc

concerning section 6gof 

the financial reporting 

methodology in the dome

seeking investigation and re

the TAA 4 a fact fin

activities of TAATACA a

updating the Commission s

new fees 6 section 15 in
independent action activities an

currency adjustment surcharges b

conferences 7a proposed rulem

reporting requirements for agree

8 a rateofreturn analysis of a 

Hawaii trade 9 reports on the a

10 handling a variety of inq

members of Congress and shipper

and issues including antitrust 

surcharges accessorial charges 

service and 11 research for and 

briefings for senior Commission o

4 Types of Agreements

a Conference and Interc

Conference agreements p

discussion agreement and establi

and practices by groups of ocean 

are limited to a geographic

Interconference agreements ar

conferences

During fiscal year 1994 

processed 80 conference and 

including modifications to existing 

Act There were 47 confer

interconference agreements in ef

year

b Pooling and Equal Acc

Pooling agreements are com

carriers in given trades that pr

apportionment of cargo andor 

147
increased efficiencies throug

These agreements often set 

requirements aimed at im

Equal access agreements ser

access to cargo that is c

reciprocal trading partners u

quotas or other restrictions

There were 21 agreem

of the fiscal year

c Space Charter a

Space charter agreem

cross chartering of vessel s

among vessel operators 

agreements are to facilitate 

operations and to reduce ex

These agreements general

sailings and to exchange eq

conferences and discussion 

charter and sailing auth

agreements

During fiscal year 1

agreements and modificatio

and 145 were in effect at th

d Joint Service Ag

Joint service agreeme

agreements generally es

operated as a joint ventur

own rates and issues its ow

strictly confined to the au

underlying agreement
Ten joint service agreeme

during fiscal year 1994 and 41 j

effect at the conclusion of the f

e Cooperative Workin

Cooperative working agree

from discussion agreements w

discuss competitively sensitive 

inter carrier operational undert

arrangements that do not p

categories mentioned This ca

ratemaking agreements Fiftyse

existing CWAs were filed in fis

CWAs in effect at the end of th

t Marine Terminal Ag

Marine terminals operate

entities provide facilities s

interchange of cargo and passe

carriers and for the receipt and 

and consignees The Bureau is 

processing of certain agreements 

industry

During fiscal year 1994 

agreements and agreement mod

marine terminal services and fac

became effective upon filing 

exempt certain classes of marine 

waiting period requirements of 

requirements of the 1916 Act 

Commission sexemption prov

applicable statutory requiremen

1006 terminal agreements were 

14
5 Future Plans and P

The Bureau soverall m

focus on systematic oversight 

an emphasis on developing n

methods to enhance the 

administering the 1984 Act s

The Bureau will contin

issues facing the industry to 

trades and to analyze agreem

the standards of the 1984 Ac

the public interest standard o

The Bureau will continu

in key conference trades U

track trends in the various tra

closer scrutiny

The Bureau will con

monitoring program which a

degree of anticompetitiveness 

the context of their commerc

The Bureau anticipates 

section 19 cases will continue 

the Bureau participated in 

FSPA cases in the PRC and 

The Bureau anticip

rulemakings during fiscal ye

the Bureau participated in r

requirements and rateofret

offshore trades section 6g 

existing user fees and propos
The Bureau will continu

newly filed agreements to deter

raise issues and specific questio

of the 1984 Act or raise genera

will continue to prepare recom

on more complex agreements 

agreement matters internally u

Commission

The Bureau will continue 

agreement filings under the p

1916 Act and make appropr

Commission for approval or dis

15

II BUREAU O

CERTIFICATION A

1 General

The Bureau of Tariffs Cer

develops administers and analyz

connection with pricing by c

conferences of such carriers and 

the foreign and domestic offsh

reviews and maintains both new 

regulations

rejecting those

approves

which fail

or

to

disa

co

applications involving requests to 

administers the NVOCC financ

setting policies and guideline

instruments that evidence finan

service contracts and essential ter

common carriers and conferenc

notices of intent to reject service c

which fail to conform to Comm

recommendations on requests 

administrative errors in the essen

and initiates recommendations 

offices of the Commission as war

proceedings by the Commission

The Bureau is also respons

freight forwarders under the provi

Act and under Pub L No 8977

and operators of passenger vesse

to the financial responsibility of 

satisfy any liability incurred for n

death or injury to passengers or o

Bureau assists in the planning a

153
primary responsibility for 

Commission sATFI system

Thus the Bureau is 

common carriers and ma

responsibility for NVOCCs 

ocean freight forwarders a

operators of passenger vess

The Bureau develops 

policies and standards and 

to its program activities 

other Commission compon

the Commission sregulator

2 Foreign Commerce

a Service Contrac

The 1984 Act perm

conferences of such carriers 

of the USto enter into se

shippers associations A se

Act as

A contract between 

carrier or conferenc

commitment to provi

cargo over a fixed tim

carrier or conference 

schedule as well as 

assured space trans

service features the c

in the event of nonp

party
Each contract entered into 

Act must be filed confidentially 

the same time a concise stateme

be filed with the Commission and 

public in tariff format The esse

all similarly situated shippers

The essential terms of a se

The origin and destin

geographic area

The commodity involv

The minimum volume

The linehaul rate

The duration

Service commitments 

Liquidated damages f

The variables which can be p

are almost infinite thereby g

significant freedom to tailor 

suitable to their commercial need

an alternative to transportatio

therefore can be negotiated 

accommodate the participants 

operational needs Service con

during the contract term should 

needs change

155
Shippers associations 

under the 1984 Act as 

transportation They are d

shippers which on a nonpr

to secure volume rates or 

1984 Act expressly requir

negotiate with shippers a

associations can enter into 

members Shippers ass

antitrust immunity under th

13 contracts were filed on b

significant reduction from L

received 65 contracts on be

During fiscal year 19

14839 service contract filin

shippers 27 conferences 

carriers which involved th

commerce both inbound 

1994 the Commission rece

8 percent increase over last 

contract amendments were 

full fiscal year during which 

permitted under the Comms

Early in fiscal year 1

changeover to ATFI for 

Essential terms for contrac

1993 are electronically fi

corresponding service cont

ten days essential terms fil

maintained in paper form

terms to be immediately a

ATFI user at any location i

the fiscal year the Comm
order against those carriers which 

cancellation of their paper essen

Service contracts are rev

necessary statutory and regulator

fail to contain mutually binding se

or which contain meaningless liq

are subject to rejection During 

also worked toward more explic

service contract commodity descr

preparation of a circular letter s

fiscal year 1995 to common carr

carriers in the foreign commerce 

Substantial effort was inves

supporting the Commission sef

various classes of shippers are tre

their service contract dealings wit

conferences and investigating relat

practices To this end the Bureau 

Commission of the Report of the 

Finding Investigation No 20 Serv

Shippers Associations and No

Carriers FF20 prepared the Cos

Service Contract Negotiations whic

Investigative Officer srecommend

series of carrier and conference re

15 Order and provided extens

support to the staff working grou

Investigation No 21 Activities of 

and its Members

b Controlled Carriers

A controlled carrier is an o

operating assets are directly or in

157
by the government under 

common carrier are opera

USC app 1708 provide

maintain rates or charges in 

that are below a level that 

such carrier establish or 

classifications rules or regu

such rates charges classi

controlled carrier may not 

Commission become effec

the date of filing with the 

proscriptions include rates 

whose vessels are entitled 

most favored nation treatm

The Bureau monito

carriers to assure that the re

decreases is given The Bu

special permission from c

1994

c Common Carrie

Every common carrie

of the USand licensed oc

section 15b of the 1984 

46 CFR Part 582 to file 

Policies andEfforts to Comb

of the United States This 

Secretary of the Commissio

even numbered calendar y

Executive Officer of the 

forwarder Section 15bo

provide that failure to file 

in a civil penalty of5000 

In addition to the civil p
regulations provide upon 45day

of the tariffs of those carriers 

licenses of those ocean freight f

certification Furthermore any ap

forwarder license or initial tariff f

antirebate certification in accord

rejected

Aprogram supported by the 

is in place to ensure that co

forwarders file their certifications 

not due to be renewed during 

approximately 600 certifications w

freight forwarders registering with 

d Foreign Tariffs

Section 8 of the 1984 Act 4

the filing of tariffs by all comm

foreign waterborne commerce of 

Fiscal year 1994 marked the 

Commission sATFI system Duri

received 2679 new complete 

conferences operating in the 

Additional statistics concerning fi

in the ATFI section below A 

filings represents the conversion o

format The pages that are canc

being stored and will be transferr

funds permit In connection wit

filings the Bureau received and p

permission applications which allow 

tariff

statutory

filing

provisions

regulations

of the 1984 A

159
e NVOCC Bondin

During fiscal year 199

the 1984 Act imposing a 

operating in the foreign 

Commission issued regulat

bond in the amount of 500

the foreign waterborne com

During fiscal year 1

regulations in response to 

Carrier Act of 1991 1991 

amended section 23 of the 

permit the Commission 

insurance or other surety 

responsibility The amende

coverage

Evidence of financia

this requirement is used 

transportation related acti

Commission pursuant to se

program approximately 210

currently on file

3 Domestic Commer

a Domestic Tariff

Common carriers ope

commerce are required pu

Act 46 USC app 817 

46 USCapp 844 to fil

with the Commission T

tariffs comply with applic

Commission sregulations 
reports of financial and oper

common carriers in the domest

During fiscal year 1994 

domestic offshore trades like c

trades were required to file 

Commission received 90 new ta

year The Bureau also receive

permission applications to devia

rules

b Financial Analysis

In compliance with 46 C

common carriers in the domest

to file annual reports of financi

Commission The Bureau prov

expertise to help ensure the re

transportation of cargo and othe

carriers in the domestic offshore 

US During the year the Burea

in rates for the transportation of 

Coast and Hawaii

4 Marine Terminal Activ

Marine terminals operate

entities provide facilities se

interchange of cargo and passen

carriers and for the receipt and d

and consignees The Commissio

of tariffs related to the marine t

The Bureau carried out its 

marine terminal tariffs by revie

terminal tariffs that were filed int

161
fiscal year By the end o

operators were in full 

requirements Those operato

being made respondents in a 

5 Freight Forwarders

The ocean freight for

persons who in effect hold th

departments for hire Ocean 

foreign commerce of the 

transportation of cargo by c

the paperwork legal requi

other incidentals related to 

freight forwarders receive a 

an export shipment as well 

carrier whose vessel is selec

During fiscal year 199

applications were received 

approved 178 applications 

applications were returned 

requests for a license were w

request was denied Fifty ap

of the fiscal year One h

issued while 91 licensees ha

to their failure to maintain 

Commission At the end 

forwarders were operating u

Onsite compliance inv

the Commission seffort to 

forwarders comply with the 

and the Commission sreg

investigative reports were r

these reports resulted in t
licensees other reports concer

were referred to the Bureau 

assessment of appropriate civil 

pending review at the year s en

6 Passenger Vessel Cert

The Commission administ

No 89777 46 USC817d and 

by the Commission sregulation

the Protection of the Public 

evidence of financial responsibil

other persons for death in

transportation for vessels whi

accommodations for 50 or m

passengers at USports

Upon the submission of sa

responsibility in accordance with 

Commission issues a Certificate 

Indemnification of Passenger

Transportation Upon the subm

accordance with Subpart B of 

issues a Certificate of Financial 

Incurred for Death or Injury to P

Voyages The program now enco

42 operators which have evide

coverage in excess of 330 millio

1 billion for casualty The cert

program are necessary for the 

thousands of passenger vessel sa

During fiscal year 1994 

applications for passenger vessel 

1994 31 casualty certificates an

were approved and issued to pa

16
The Bureau prepared 

9406 Financial Responsibility 

of

responsibilities

Transportation

under

which

section 

app 817e This proceeding 

greater degree of financia

approximately 700 million o

prepaid fares which are no

proposed rule in this proceed

unearned passenger revenue 

applicable to vessel operat

instead provide for a sliding 

rulemaking would also remo

evidencing financial respons

for states or federal entities

7 Automated Databas

The Bureau maintains s

other than its ATFI syste

Contract System 2 Regula

System and 4 Ocean Freig

Contract System contains ce

as geographics and shipper n

The Regulated Persons Inde

person the Commission reg

telephone number and tra

Microfiche System provides 

which have been microfiche

System contains certain i

including surety bond inform

8 ATFI

The Bureau has near

respect to the industry s us
computerbased system designed 

processing time and enhance se

filing processing and retrieval of 

tariffs marine terminal tariffs se

and amendments thereto The 

eight components which can be v

other providing carriers and confe

in establishing price and service 

containing those offerings wit

Conunission launched the ATFI 

with conversion tests conducted u

systems modifications to ensure th

fullscale implementation Bu

thoroughly trained in all aspects o

in faster turnover time for review

Through the use of the A

essentially achieved a paperles

achieve this objective the Burea

timeline for conversion based on 

with complete conversion to the 

December 31 1993 The schedu

frame window for each trad

electronic format Anumber of ca

they could not convert and file th

contract essential terms by the clo

These carriersconferences filed p

for temporary exemption from 

requirements and requested perm

the period of extension Du

Commission received 36 p

carriersconferences The Conuni

denied 3 petitions One petition w

that were granted allowed carrier

filing deadline to no later than 

petitions filed after this date were 

165
A number of carriers 

tariff sin electronic form

window also failed to file 

with the Conunission Co

1993 the Commission initi

ordered these carriers to 

should not cancel their pap

to ATFI format The Co

Docket No 93 19 Cancell

with Automated Tariff Filin

Filing Requirements on Se

the Worldwide Asian and 

seven carriers failed to res

ATFI Their paper tariffs 

issued on January 4 1994

During fiscal year 

initiated Docket No 932

to Comply with Automated 

ATFI Filing Requirement

December 23 1993 to 35 

the European trade area 

were canceled by order se

9404 Cancellation of T

Automated Tariff Filing and 

Requirements was issued o

paper tariffs on file in the 

trade areas The tariffs of 

order issued on July 29 

prepared at the end of fis

fiscal year 1995 The Co

remaining paper tariffs wi

only remaining non electro

of service contract essentia

will end in early fiscal yea
During fiscal year 1994 

database components were filed 

Organization Record 

Tariff Record 

Location Groups 

Inland Rate Tables 

Rules 

Commodity Descriptio

Tariff Line Items 

Essential Terms Docu

9 Support Activities

The Bureau acts as one of 

data sources for other Commissio

Investigative activities requ

and supporting documentation w

staff Automated databases suc

Index and the Service Contract S

data identification purposes 

material is retrieved and pro

Investigations andor the approp

The Commission sdistrict o

general data lists of regulated 

district office jurisdictions Inform

licensed ocean freight forward

passenger vessel owneroperators 

offices This data assists not only 

serves public needs for informat

regulated entities

167
10 Rulemaking and D

The Bureau initiates 

Commission docketed proc

Bureau participated in dev

matters

Cancellation of Tarifjrs 

Automated Tariff Fili

ATFI Filing Require

The Commission issu

Worldwide Asian and Sou

why their paper tariffs sh

register and file a tariff in 

Commission canceled the p

respond to the show cause 

Cancellation of Tanffr 

Automated Tariff Fil

ATFI FilingRequirem

No 9325

The Commission issu

European trade areas to 

should not be canceled for 

ATFI by the required da

paper tariffs of carriers tha

order andor file a tariff in 
Cancellation of Tanfjs for 

Automated Tariff Filing 

ATFI Filing Requirement

The Commission issued an 

Worldwide Asian and South Pa

why their paper tariffs should 

register and file a tariff in AT

Commission canceled the paper 

respond to the show cause orde

Financial Responsibilit

Nonperformance of Transp

Docket No 9406

The Commission issued a N

passenger

NPR59

vessel

Fed

operator

Reg 1549

financ

under section 3 Pub L No 897

NPR was instituted to provide fo

responsibility coverage for the a

the traveling public sdeposits an

now covered To this end the pr

would remove the 15 million 

nonperformance coverage ceiling 

under 46 CFR 540 9jand inste

of increased coverage This rulem

insurance as an option for eviden

nonperformance except for state

169
Financial Reporting Requ

Methodology in the Domes

Rule Docket No 9407

The Commission issued 

amend the Commission sfin

rateofreturn methodology r

trades

Service Contract Negotiati

and Non Vessel Operat

Finding Investigation N

This nonadjudicatory 

develop a factual record on 

process including the pra

associations and NVOCCs in 

service contracts The Bur

Commission of the Report o

Service Contract Negotiat

The Commission iss

implement certain of 

recommendations in FF20 w

information concerning the s

The Bureau subsequently a

conference reports pursuant 
Activities of the TransAtla

Members Fact Finding Inve

The Bureau provided exte

staff working group involved 

investigation into whether a c

carriers andor individual ocean 

Atlantic trade are engaging in a

Act

171

I BURE

HEARING C

The Bureau of Hearing 

counsel in formal adjudicato

non adjudicatory investigations 

designated by Commission or

initiated by the Commission B

attorneys where intervention is 

formal complaint proceedings ins

1916 Act 46 USC app 821 

46 USCapp 1710 and in inve

FSPA 46 USCapp 1701 B

designated Investigative Officers 

proceedings The Bureau monito

in order to identify major regula

Managing Director and the othe

Bureau also participates in the 

rules and regulations On occasio

in court litigation by or against t

The Bureau also furnishes 

Director and other Bureaus B

with the Bureau of Investigations 

review enforcement reports com

Bureau prepares and serves notice

statutes and Commission regulatio

settle civil penalty allegations aris

settlement is not reached the B

formal Commission proceedings 

or in the assessment of civil 

participates in conjunction with 

enforcement initiatives

173
The Commission cont

terminate malpractices in 

highly successful programs i

trades the Commission on 

Finding Investigation No 

Specified United States Fore

initiated to investigate possi

between the US and Euro

Central America and the C

are available at this time

On July 27 1994 

comprehensive inquiry int

conference and the impact 

unprecedented initiative be

into the activities of the Tran

its member lines Activities 

restrictions on the statutory 

independent action on rat

agreements operating unde

not in accordance with filed 

acts against shippers and us

inland container pools Atto

Counsel were designated 

investigation was launched 

unlawful activity by TAA f

Commission sown monito

petitions filed by the Nationa

and by Container Fre

Consolidation Services The 

to advise the Commission 

action particularly injunctiv

At the beginning of fis

were pending final resolutio

year 31 new enforcement a
four cases were compromised 

closed or referred for form

enforcement cases were pendin

1994

At the start of fiscal year 

formal proceedings During 

participated in 9 new formal pro

which the Bureau participated w

formal proceedings were pendin

At the beginning of fiscal year 1

legal advice pending in the Bure

advice were received during the 

projects were completed Acco

were pending in the Bureau on 

As a result of enforcem

collected 870 464 in civil pe

Settlements were reached with m

industry eg carriers shippers 

USforeign trades

In fiscal years 1995 and 19

in a much enhanced caseload o

finding investigations The B

enforcement programs with othe

the 1984 Act are developed the 

and negotiate settlements of thes

provide legal advice to the M

Bureaus The Bureau will conti

policy decisions through formal p

regulatory and enforcement pr

formal complaint cases with 

jurisdictional issues

175

J BURE

INVESTIGA

The Bureau of Investigation

and conducts investigations of 

common carriers NVOCCs freig

and terminals and other persons t

statutes and regulations administe

The Bureau maintains 

Washington DCand district offi

New York Miami Hato Rey 

Houston Los Angeles and San 

investigative functions each di

Commission within its jurisdiction 

Commission and the maritime ind

collects and analyzes intelligence o

assesses industry wide conditions 

The Bureau investigates sig

pursuant to major Commissionapp

In addition the Bureau investigate

a local level These activities 

conjunction with fact finding form

The following practices 

investigations conducted by the B

Illegal rebating by ca

rebates by shippers 

associations

Misdescriptions and m

other malpractices of c

and other persons

177
Activities of ocea

to agreements 

agreements a

implemented pr

are being carrie

acts

Failure by com

tariffs covering 

rates that are 

Commission

Operating as an 

license issued b

statute or regu

The Bureau saudit a

Audits of service 

with statute and 

Audits of NVOC

Post licensing 

licensed freigh

their operatio

requirements

Audits of passe

financial protec

Bureau liaison ac

coordination with other 

regulatory information an

shipping industry and t

complaints within a distric
The Bureau assists the Bu

formal proceedings before the C

and surveys for use in program 

revision reports trade informatio

action

During fiscal year 1994 

investigate malpractices in the S

initiative involved all seven distric

review of shipments in both the 

trades to and from all major poi

Bureau also continued to investig

key trade routes including the 

Mediterranean Central American 

Bureau continued to conduct a 

investigations in the transpacific 

efforts of the major carriers to fo

mechanism In addition the Bure

investigate conditions in the North 

Transatlantic Enforcement Initiati

The Bureau conducted 118 

inquiries and 278 compliance chec

service contract audits and audits 

summarizes the Bureau of Investig

26 investigations were referred fo

Section III Surveillance and Enfor

During fiscal year 1994 t

comprehensive program of tariff int

compliance with the tariff filing and 

the 1984 Act This program has b

only the tariff filing and adhere

carriers particularly NVOCCs but 

such as misdescription of commo

measurement as well as those tha

179
This program became criti

from paper to electronic ta

scrutinize ATFI tariffs to e

their commodity rates as re

The Commission ha

sophisticated and deceptiv

allegedly fraudulent Conne

major trades including the 

malpractice widespread on 

steamship lines entering in

with NVOCCs that pose as 

order to receive lessthant

the Bureau s efforts a m

transpacific has pledged t

Carrier Agreements with 

continue to monitor closely 

this serious malpractice

Coordination betwee

and the US Customs reg

year 1994 as a part o

Understanding between 

exchange of investigative i

there was a significant in

retrieval activities from 

System ACS database 

installation of new ACS s

The Bureau of Inve

Customs to obtain onlin

Interface ABI module 

provide investigators wit

available without great d

gap in the investigator sa

through very extensive o
malpractices in ocean shipping 

investigative personnel from eith

routinely exchanged with the oth

use for the information Th

information should continue to in

1996 These efforts will be furth

both agencies advance in au

electronic filing of regulatory inf

During fiscal year 1994 the 

its staff with training in the use 

system Additional training in AT

provided at headquarters to Bure

offices as well as headquarters 

examination of significant nu

transactions in substantially less 

continued to receive refresher tra

of the ACS to obtain online 

These tools permit Bureau inve

analyze large numbers of ocea

violations of statute or agency 

trends and significant shifts in ca

cargo carriage in the inbound US 

Bureau resources in fiscal 

continue to be directed toward 

major trade routes and the develo

unlawful shipping practices The 

numerous activities involving serv

vessel audits freight forwarder c

tariff audits and bonding complia

analysis of intelligence on industry 

The Bureau senhanced cap

analysis of intelligence provides 

efficient programs to uncove

181
sophisticated and disguised 

continue to seek to enhance 

in the increasingly automa

industry by the use of auto

investigations
IC BUREAU OF A

Office of the 

The Bureau of Admin

administrative support to the 

Commission The Bureau interp

programs and administers these 

Federal guidelines including 

management procurement f

personnel The Bureau 

collaborating with other elem

warranted for Longrange plans 

standards and rules and regulatio

activities The Director BOA 

administration and coordination 

Office of Administrat

Office of Budget and 

Office of Information 

Office of Personnel

Many of the functions an

reflected in the narratives for the

The Director is the C

representative

Commission s

to

ATFI

the Small

system

Agenc

as 

training and development functio

the Office The Training 

development assistance and care

agency provides technical assistan

Board and coordinates the activ

Service SES Candidate De

Training Officer also serves as a 

Committee During the past year 

183
of costfree training opportu

and the Department of Just

arrangement with the Natio

training courses were made a

headquarters site The Offic

directing and administering 

Security Program which i

security education program t

of Executive Order 12356 

the National Performance R

Office of the Director

1 Office of Administr

a General Office R

The Office of Adm

administers a variety of ma

principally provide adminis

program operations of the 

Office is the Commission s

The Office ssupport p

telecommunications procur

services property manageme

copying management mail 

graphic designs facilities a

transportation The Office s

furnish all necessary supplie

in support of the Comms

regulations policies procedu

and provision of these supp

Federal Acquisition Reg

Management Regulations t

Management Regulation 

guidelines
b Objectives

The objectives of the Office 

Develop execute an

procurement actions a

Government to an exp

utilization

Control and

maintenan

adm

of property

Develop and coordin

telecommunications p

locations to include i

of telecommunications 

Plan and administer p

the workplace envi

utilization operations 

including the assign

provision of office fur

Manage the receipt st

of all supplies forms 

support of Commissio

Coordinate and fulfi

copying and graphic s

Regulate the receipt d

mail

Coordinate the use 

facilities with respect 

parking

185
Arrange transpo

locations

Conduct safety 

Commission sem

plan

Manage the tran

records

Direct the Comms

and goal setting 

Act

c Achievements

During fiscal year 199

Completed a mu

requirements fo

Conducted a co

new automated 

Arranged the re

Office for better 

annual rent cost 

Negotiated with 

Office and arra

employees at sig

Developed and 

Procedure SO

commercially lea
Arranged for the inst

volume copiers in 

locations

Completed the fiscal 

Coordinated with the 

security and shared i

measures at FMC he

Established a Mem

between FMC and 

Agriculture sCooper

Program for the disp

Provided expert cont

Contracting Officer

d Future Plans

In fiscal year 1995 the Os 

following 1 automation of 

program 2 complete the coord

with GSA to relocate the Los 

Houston District Offices 3revis

SOP and Commission order an

procurement system to include 

Commission

2 Office of Budget and F

a General Office Respo

The Office of Budget 

administers the Commission sfin

including fiscal accounting ac

187
collections and payments e

and expenditures of approp

annual budget justifications 

OMB develops and adminis

provide accountability for 

Commission stravel and cas

the Commission sImprest 

official passports and assis

levels of user fees The 

Commission sChief Financ

b Objectives

The objectives of the 

Submit annual b

to OMB and the 

Execute the bud

are properly exp

Prepare regula

management dec

Administer the 

employment

Collect all fees an

Process paymen

accordance with 

Process travel 

established time 

Federal Travel R
Administer the Co

s

program and manag

management program

Ensure resources are 

waste error and abus

Continually review fin

controls and accounti

they conform to exist

procedures to correct 

c Achievements

During fiscal year 1994 the 

Collected and deposit

fines and penalty co

forwarder applicatio

certification fees O

related to ATFI user fe

collected under sectio

Davis Law

Coordinated and prep

estimates for the fis

budget and the fiscal 

Participated in OMB 

hearings

Worked with GSA 

division FBX on the 

Credit Card System 

Government Credit C

189
Prepared a varie

Civil Monetary 

report on obli

Technology Syste

Report Office o

the Annual Rep

Health Program 

on Financial M

Financial Manag

Annual Prompt P

on Workyears an

Report on Cash M

Provided manage

on workyears fu

in Managed the 

management pro

Prepared the Cu

certification FY 

Prepared fiscal y

for OMB

Assisted with th

Commission

Developed Volunt

and Voluntary E

Prepared an FT

response to OMB 
d Future Plans

During fiscal years 1995 

1 pursue initiatives leading to 

budget and financial operation

payments 3 prepare OMB 

submissions 4 in conjunc

Administrative Services develo

commerce to automate the pro

5 implement the use of travel c

6 develop a tracking system on p

to provide information to ma

expenditures for their respectiv

7 begin testing on a pilot b

management software The trave

integrated with the administrative 

fund control accounting updates 

travel

3 Office of Information R

a General Office Respo

The major function of 

Resources Management IRM 

information resources manage

Paperwork Reduction Act of 198

applicable laws which prescribe 

the Commission sIRM program 

management studies 

telecommunicationsdatabase m

development records man

administration and development 

clearances for submission to 

responsible for the computer se

management programs The Di

191
Contracting Officer sTech

Project Senior IRM M

Computer Security Officer 

ADP Coordinator for the A

b Achievements

During fiscal year 199

On ATFI co

procedural and 

Commission sw

database system

with the ATFI co

remained in a v

useful to the Co

the system serv

programs for the 

ongoing ATFI 

coordinated 

demonstrations 

and maritime 

industry acco

compliance with 

access capabili

bringing the tota

ATFI to 3295

Engaged in vario

enhance the Cs

technology 

Commission sL

improve its int

located ATFI hos

technology and 

environment co
technologies in the F

a Wide Area Netw

implemented interage

the National Per

Additionally the Of

technology in a LAN 

Commission saccess 

currently stored on p

implement a Wind

Commission

Furnished advice an

information mana

components Also pr

and guidance for t

Commission sinform

fully comply with the 

Reduction Act of 1

liaison with external 

National Archives 

GSA and Washingto

Provided extensive 

training in the 

application softwar

records managemen

Interagency Email 

Served as members 

working groups

Furnished ongoing te

to Commission com

19
c Future Plans

In addition to impleme

providing extensive technic

mentioned above major in

1996 include 1 developin

and inter and intraagenc

Internet capability 3develo

multiuser database syste

information and to prov

Commission databases 4 

transaction sets to UNE

technical expertise for the re

6 designing an improved 

emerging hardware and 

incorporate lessons learne

7 completing installation o

FMC Wide Area Network 8

to decrease costs associated 

headquarters for meetings a

a computer security program

4 Office of Personnel

a General Office R

The Office of Personne

personnel management pro

placement position classif

occupational safety and hea

employee relations workforce 

incentive awards retiremen
b Achievements

During fiscal year 1994 th

Implemented a com

throughout the Com

Implemented severa

statute such as the E

Advanced Earned Inc

garnishment of an 

commercial indebted

of contributions to p

Worked with the Coms

Board to prepare th

years 19967 SES 

OPM and conduct

program

Played

streamlining

a major

plan

role

t

Performance Review 

Provided mandatory 

training to all emplo

and reissued the Cos

Made significant prog

reducing the num

regulations and dele

and managers

Revised and reissued 

and incentive awards 

19
categories of aw

time off with pay

Revised and reis

dismissal policy

Maintained the C

all agencies in 

targeted disabilit

to clerical empl

York Florida an

Monitored emplo

throughout the 

employees of ser

and distributed 

newsletter to all 

Conducted a He

sponsored an a

Savings Plan Ope

Employment Pro

Continued to ad

responsibilities to 

problems and wo

ensure that emp

were accorded th

Continued to op

transfer program

Completed work 

requests to OP

authorities and 

their staffs of the
Conducted a succ

Campaign by raising 

c Future Plans

During fiscal year 1995 the 

the Commission on all major pers

maintenance of a sound and progre

program while fully implemen

Commission sstreamlining plan 

review of personnel policies as re

Performance Review with the g

regulations in accordance with st

197

APPEND

w

w

N

0

O

0

0

z

0

N

0O

H0

H

APPEN

ORGANIZATI

WW

W H VI

U448

W H

WZS 0

4

201

W 

0 

W
Formal Proceedings

APPE

COMMISSIO

Fisca

Decisions 

Discontinuances Dism

Initial Decisions Not Rev

Rulemaldngs Final Rule

Withdraw

Total 

Special Dockets 

Informal Dockets 
APPEN

AGREEMENT FILIN

Fiscal Yea

Carrier Agreements Filed in FY 1994

including modifications

Foreign and Domestic Commerce 

Carrier Agreements Processing Categor

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon Filing 

Rejection of Filing 

Formal Extension of Review Period 

Approved Under Shipping Act 1916 

Carrier Reports Submitted for Commiss

Minutes of Meetings 

Operating and Ad Hoc Reports 

Carrier Agreements on File as of Septem

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Cooperative Working Agency Equipm

Terminal Agreements including amendm

Received 

On Hand 1093 

On Hand 1094 

203
APPE

TARIFF AND TERMIN

Fisca

TariffFilings Pages

Foreign Filings 

Domestic Filings Term

Filings

TOTAL 

Electronic Tariffs in Effect 

Electronic Tariff Filings

Rules 

Commodity Descriptions 

Tariffs Line Items 

Inland Tables 

Tariff Records 

Organization Records 

Special Pennission Applications

Total Received Foreign 

Granted 

Denied 

Withdrawn 

Total Received Domestic 

Granted 

Denied 

Withdrawn 

Domestic Investigation and Suspe

Completed 

Pending 

Service Contracts Filed 
APPEN

CIVIL PENALTIES 

Fiscal Yea

Ariel Maritime Group Inc 

Banfi Products Corp 

Black Sea Shipping Co 

Bordelon Bros Towing Co I

Coastal Transportation Inc 

Direct Container Line Inc 

Empresa Lineas Maritimas A

Laufer Group Int lLtd 

PaoPao Plastics Corp 

Scan Shipping Inc 

Shoe City Inc 

CAVenezolana de Navegac

Vincent Shipping Ltd 

Total Civil Penalties Collec

205
APP

INVE

Fisc

InvestigationsSpecial I

Compliance Chec

Service Contract A

NVOCC Audits

Compliance Chec

Service Contract A

NVOCC Audits

Total AuditsComplian

InvestigationsSpecial I

Total AuditsComplian

Reports Referred for E
APPEN

STATEMENT OF AP

OBLIGATIONS AND 

THE FISCAL Y

SEPTEMBE

APPROPRIATIONS

Public Law 103121 approved Octobe

the Federal Maritime Commission as 

Merchant Marine Act of 1936 as amen

services as authorized by 5 USC31

authorized by 31 USC1343 b and 

authorized by 5USC590102 Provid

available for official reception and re

OBLIGATIONS AND UNOBLIG

Net obligations for salaries and ex

September 30 1994 

STATEMENT OF RECEIPTS 

the Treasury for the Fiscal Year Ended 

Publications and reproductions

Fees and Vessel Certification

and Freight Forwarder Applications 

ATFI user fees 

Davis Law fees 

Fines and penalties 

Total general fund receipts 

207