December 6, 2022 

The Honorable Peter A. DeFazio 

Chairman 

The House Committee on Transportation and 

Infrastructure 

U.S. House of Representatives 

2165 Rayburn House Office Building 

Washington, DC 20515 

The Honorable Salud O. Carbajal 

Chairman

The House Subcommittee on Coast Guard and 

Maritime Transportation 

U.S. House of Representatives 

2165 Rayburn House Office Building 

Washington, DC 20515 

The Honorable Sam Graves 

Ranking Member 

The House Committee on Transportation and 

Infrastructure

U.S. House of Representatives 

2165 Rayburn House Office Building 

Washington, DC 20515 

The Honorable Bob Gibbs 

Ranking Member 

The House Subcommittee on Coast Guard and 

Maritime Transportation 

U.S. House of Representatives

2165 Rayburn House Office Building 

Washington, DC 20515 

Dear Chairman Peter A. DeFazio, Chairman Salud O. Carbajal, Ranking Member Sam Graves

and Ranking Member Bob Gibbs, 

We write in support of an effort to significantly enhance the Federal Maritime 

Commission’s (FMC or Commission) oversight of predominantly foreign-based ocean common 

carriers and marine terminal operators and the process of evaluating cooperative working 

agreements under the Shipping Act of 1984. The views expressed herein are the individual views

of the undersigned and may not represent those of the Commission. 

While the Ocean Shipping Reform Act of 2022 provided the Commission with important 

additional authorities, there is more that can be done to assist U.S. shippers. We strongly believe 

that modifying the process by which the Commission reviews agreements under 46 U.S.C. § 

41307(b) would substantially strengthen the Commission’s oversight of potentially anticompetitive agreements. Such modifications would be consistent with recent amendments to 

bolster Commission authority and would complement the extensive monitoring process applicable 

to the major shipping alliance agreements.

Currently, the Commission cannot sua sponte enjoin an agreement that the Commission, 

as the expert independent regulatory agency, determines to be unreasonably anti-competitive. The 

Commission must file an action in the U.S. District Court for the District of Colombia and persuade 

the court to do so. Fed. Mar. Comm’n v. City of Los Angeles, 607 F. Supp. 2d 192, 197-98 (D.D.C. 

2009). If the Court does not determine that the agreement is unreasonably anti-competitive, then 
the agreement automatically becomes effective. Experience has shown that this process is 

cumbersome and time-consuming; and some would even argue designed to impede the 

Commission’s oversight of agreements.

We believe the Commission should have the authority to disapprove agreements between 

or among ocean common carriers and marine terminal operators. Specifically, we urge legislation 

to amend the existing statutory review process to allow the Commission to determine that an 

agreement violates 46 U.S.C. § 41307(b) and to prohibit the parties from operating pursuant to the 

agreement. The FMC’s determination could then be subject to appeal to the United States Court 

of Appeals for the District of Columbia Circuit. The parties who are seeking to operate pursuant 

to the agreement would have the opportunity of demonstrating that the agreement is not

unreasonably anti-competitive. 

Such key statutory changes to the agreement review process would greatly enhance the 

Commission’s oversight of the competitive aspects of the maritime industry and ensure that we 

are able to implement the intended purposes of OSRA 2022. 

We stand ready to provide any assistance needed to strengthen the Commission’s 

agreement review process. 

Sincerely, 

/S/ /S/

_______________________________

Max M. Vekich 

Commissioner 

Federal Maritime Commission 

800 North Capital Street, NW

Washington, DC 20573

mvekich@fmc.gov

_______________________________

Carl W. Bentzel

Commissioner 

Federal Maritime Commission 

800 North Capital Street, NW

Washington, DC 20573

cbentzel@fmc.gov

cc: The Honorable John Garamendi 

The Honorable Dusty Johnson 

Members of the House Subcommittee on Coast Guard and Maritime Transportation

Chairman Maffei, Commissioner Dye and Commissioner Sola, Federal Maritime Commission