Educational and stakeholder outreach activities will be tracked and periodically
evaluated to ensure their effectiveness in reaching targeted audiences on specific topics.
Possible alternative activities and approaches will be considered as part of each periodic

evaluation. These evaluations will also include the educational material provided via the
FMC website.

20


e Percentage of cruise line operators examined during the year that have the full
financial coverage required by regulation to protect against loss from non-
performance or casualty. .

OBJECTIVE 3: Enhance public awareness of agency resources, remedies and
regulatory requirements through education and outreach.

Protection of the public requires knowledge on the part of regulated parties and
users of their services as to FMC regulatory requirements. As well, the public needs to
be well informed of the services offered by the FMC and the remedies available in the
event of noncompliance, injury or unresolved disputes.

1. Strategies

e Maintain an accessible presence in local regulated communities

e Proactively educate regulated parties of regulatory requirements through
educational presentations.

e@ Maintain VOCC and NVOCC tariff location information on the agency website.
e Emphasize OTI requirements to new licensees by letter.

e Promote awareness of FMC licensing and financial requirements by conference
participation and seminars.

e Make available to the public key documents in all Commission formal
proceedings through the Commission website.

e Create and produce brochures to educate industry and public about FMC
requirements and services.

e Promote general awareness of resources available through Commission’s website.

e Continuously expand and update information available to the public through the
website, including list of licensed OTIs.

2. Six-Year Performance Measures

e Percentage of attendees at agency sponsored outreach presentations that rate the
program as “Useful” or “Extremely Useful” in their compliance efforts.


a Protecting the shipping public against economic harm by investigating
rates, charges, classifications, and practices of common carriers, MTOs,
and OTIs operating in the foreign commerce of the U.S.

r] Taking action to address unfavorable conditions arising out of foreign
government or business practices in the U.S. foreign shipping trades.

Organization

The Commission is composed of five commissioners appointed by the President
with the advice and consent of the Senate. Commissioners serve five-year, staggered
terms, and no more than three members of the Commission may belong to the same
political party. The President designates one of the commissioners to serve as chairman.
The chairman is the chief executive and administrative officer of the agency.

The Commission’s organizational units consist of: Office of the General Counsel;
Office of the Secretary (including the Library and the Office of Consumer Affairs and
Dispute Resolution Services); Office of Administrative Law Judges; Office of Equal
Employment Opportunity; Office of the Inspector General; Office of Administration
(including the Offices of Financial Management. Human Resources, Information
Technology, and Management Services); and Office of Operations (including the
Bureaus of Certification and Licensing, Enforcement, Trade Analysis and the
Commission’s Area Representatives.


Factors Affecting the Achievement of Goals

The FMC is a small agency that has established considerable in-house expertise in
the legal, economic and organizational aspects of international liner shipping and the
inter-modal movement of ocean cargo. That expertise allows the FMC to effectively
pursue its goals of maintaining a competitive international ocean transportation system
and protecting the public from unlawful, unfair and deceptive practices efficiently at a
very modest cost to the taxpayer and with a minimum regulatory burden on stakeholder
industries.

To continue to accomplish its goals, the agency will need to maintain its relevant
expertise through the recruitment, training and retention of highly qualified attorneys,
economists, industry specialists, and information technology experts. The importance of
the recruitment and retention issue is likely to increase as the agency’s experienced
personnel reach retirement age, and in the face of competition from other federal agencies
seeking to replace their retiring personnel.

Expanding and enhancing the use of information technologies is one way in
which the FMC is able to do more with less. The increasing importance of information
technologies results not only from its contribution to the agency’s ability to collect and
process information more efficiently and accurately, but also because of the agency’s
need to keep up with the electronic-business practices of the industries it regulates.
Greater use of information technology also helps make many of the aspects of licensing,
certification and information filing simpler and easier to accomplish for the agency’s
stakeholders. IT is critical to the maintenance and effective use of various key agency
databases.

The security of agency databases and confidential business reports and associated
documents filed with the FMC has received increasing attention in recent years.
Enhanced and extended applications of information technologies helps ensure that
security.

The FMC regulates international ocean liner transportation, and is also involved,
through its regulation of marine terminal operators, with aspects of the intermodal
movement of ocean cargo in the U.S. In addition, foreign-based ocean transportation
intermediaries are subject to statutory bonding requirements under FMC jurisdiction. To
the extent that there are changes in the regulatory treatment of international liner
operations by foreign governments, as will be the case in Europe beginning in late 2008,
the FMC will need to conduct research to determine the likely affect of such changes on
U.S. trades. Over time, and depending on their actual impacts, regulatory changes in
other regions could also provide a possible impetus for a review of U.S. statutes or
regulations on liner shipping. Consequently, FMC analyses of possible future proposals
for statutory revisions may be required.


parties — depending on the authorities sought in the agreement; and (c) submit special
informational reports, if the FMC requires them, once the agreement comes into effect.
These reporting requirements, and the economic data and information about agreement
activities they provide, allow the FMC to initially evaluate, and continue to monitor on an
on-going basis, the conduct of the parties to VOCC and MTO agreements with limited
antitrust immunity.

Under the Foreign Shipping Practices Act of 1988 (“FSPA”) the Commission can
address adverse conditions affecting U. S. carriers in the U.S. oceanborne trades, when
such conditions do not exist for foreign carriers or others providing maritime or
maritime-related services in the U.S. Section 9 of the Shipping Act also charges the
Commission with regulating the rates, charges, and rules of government-owned or —
controlled carriers to ensure that they are just and reasonable.

1. Strategies

e Review initial agreements and amendments, including any additional information
requested by the FMC, to determine the likelihood that the agreement parties
could engage in substantially anti-competitive conduct with respect to
transportation costs or services.

e Review, on a regular, on-going basis, the data and information provided in
standard reports and special reporting measures to assess the existence or
likelihood of substantially anti-competitive conduct or unfavorable trade
conditions.

e Initiate meetings with representatives of the FMC’s various stakeholder industries
to help determine whether anti-competitive behavior or unfavorable trade
conditions exist in U.S. trades.

e Conduct research studies on current competition issues with respect to U.S.
trades.

e Actively monitor for and record the presence of all foreign controlled carriers in
U.S. trades, and regularly review their pricing practices.

e Obtain information via inquiries and/or complaints about conduct or conditions
that impede the efficient movement of cargo.

e Assure competitive conditions in the U.S. foreign oceanborne trades by working
with agreement parties on an informal basis to negotiate changes in agreements
that raise competitive concerns.

e Preserve competition in ocean transportation by seeking appropriate injunctive
relief under section 6 of the Shipping Act for agreements likely, by a reduction in

10


Strategic Goal Objective | Performance | 2010 | 2011 | 2012 | 2013 | 2014 | 2015
Measures Target | Target | Target | Target | Target | Target
Percentage of 90% |91% | 92% |93% | 94% | 95%
cruise line
operators
examined during
the year that
have the full
financial
coverage
required by
regulation to
protect against
loss from non-
performance or
casualty.
OBJECTIVE 3: | Percentage of 70% | 75% | 80% | 85% |90% | 95%
Enhance public attendees at
awareness of agency
agency sponsored
resources, outreach
remedies and presentations
regulatory that rate the
requirements program as
through “Useful” or
education and “Extremely
outreach. Useful” in their
compliance
efforts.
Percentage of 70% |72% | 74% | 76% | 80% | 85%
key Commission
issuances, orders
and reports are
available
through the
Commission’s
website within 5
working days of
receipt.
OBJECTIVE 4: | Number of 550 625 700 800 900 1000
Impartially cases opened and
resolve closed each
international fiscal year using
shipping disputes | ombuds and
through ADR services
alternative assisting
dispute consumers to
resolution and recover goods or
adjudication. funds.



Summary of Strategic Goals, Objectives, and Performance Measures

Strategic Goal Objective Performance | 2010 | 2011 2012 | 2013 2014 = | 2015
Measures Target | Target | Target | Target | Target | Target
STRATEGIC OBJECTIVE 1: | Percentage share | 18% 18.5% | 19% 19.5% | 20% 20.5%
GOAL 1: Maintain | Identify and take | of total U.S.
an Efficient & action to address | international
Competitive substantially oceanborne trade
International anti-competitive | moved by
Ocean conduct or containership, as
Transportation unfavorable an indicator of
System conditions in liner shipping
US. trades. efficiency.
STRATEGIC OBJECTIVE 1: | Percentage of 70% |72% |74% | 76% | 78% | 80%
GOAL 2: Protect Identify and take | enforcement
the public from action to end actions taken
unlawful, unfair unlawful, unfair | under the
and deceptive and deceptive Shipping Act of
ocean practices. 1984
transportation successfully
practices and resolved through
resolve shipping favorable
disputes. judgment,
settlement,
issuance of
default
judgment, or
compliance letter
or notice.
OBJECTIVE 2: | Percentage of 55% |57% |59% | 61% | 63% | 65%
Prevent public decisions on
harm through completed OTI
licensing and license
financial applications
responsibility rendered within
requirements. 90 business

days, facilitating
lawful operation
of OTIs with the
appropriate
character and
experience
requirements.



Finally, in recent years the FMC has witnessed the filing of new types of
agreements -- especially marine terminal agreements -- that address nontraditional issues
such as traffic congestion, environmental mitigation proposals, terminal operational
efficiencies, and infrastructure funding. These nontraditional agreements tend to involve
industries (drayage trucking and rail service), operations (pooling of chassis), and issues
(air pollution, public health, infrastructure finance) that require the development, by
agency staff, of additional information sources and areas of expertise. Not infrequently,
these nontraditional agreements have potentially significant pricing and service
consequences. To the extent that the filing of nontraditional agreements increases in
coming years — which seems to be the likely trend — they will continue to weigh heavily
on the agency’s limited resources.

Program Evaluations

In general, the FMC will continue to evaluate its programs, both that address
industry competition and those designed to protect the public from unlawful, unfair and
deceptive practices, to ensure that they focus on the areas of greatest concern as
determined by the analysis of required and special reporting requirements, stakeholder
outreach discussions, and informal complaints. In addition, the agency will evaluate the
extent to which its compliance activities are effectively addressing identified problem
areas, and will implement any changes needed to improve compliance targeting.

The FMC will periodically review its initial agreement review process and on-
going monitoring programs to determine whether the current reporting requirements
continue to provide adequate information in light of changing industry conduct and new
types of agreements being filed. In particular, the process for monitoring non-traditional
agreements, and ensuring oversight of agreement implementation activities, will be
assessed.

Taking into account the discussions with stakeholder industries, the agency will
regularly assess which research study topics likely will best address the competitive
effects, in the U.S. trades, of changing industry operations and business practices, foreign
government regulatory changes, and controlled carrier activity.

The agency will, on an on-going basis, continue to assess the effectiveness of its
auditing, investigatory and information gathering procedures with respect to unlawful,
unfair and deceptive transportation practices. Particular attention will be given to ways to
efficiently and accurately identify, and take appropriate compliance action with respect
to, unlicensed ocean transportation intermediaries, including _ foreign-based
intermediaries.


Federal Maritime Commission
Strategic Plan
Fiscal Years 2010-2015

STRATEGIC GOAL 1- Maintain an efficient and competitive
international ocean transportation system.

The Federal Maritime Commission (“FMC”) or (“Commission”) is responsible
for the regulation of oceanborne transportation in the foreign commerce of the United
States pursuant to the provisions of the Shipping Act of 1984 (“Shipping Act”). A stated
policy objective of the Shipping Act is “to promote the growth and development of
United States exports through competitive and efficient ocean transportation and by
placing a greater reliance on the marketplace.” The Commission’s oversight of carrier
and terminal operator antitrust immunity as part of a non-discriminatory regulatory
process works to provide an efficient and economic transportation system in the ocean
commerce of the United States. In addition the Commission addresses unfavorable
conditions affecting U.S. carriers in U.S. oceanborne trades when such conditions do not
exist for foreign carriers.

OBJECTIVE 1: Identify and take actions to address substantially anti-
competitive conduct or unfavorable trade conditions in U.S. trades.

The FMC is charged with protecting the shipping public, and ultimately American
exporters and consumers, from possible abuse of the limited antitrust immunity granted
by Congress to international liner carriers and domestic marine terminal operators under
the Shipping Act. In addition, the FMC is responsible, under the Foreign Shipping
Practices Act of 1988, for investigating whether laws, rules, regulations or practices of
foreign governments, or the practices of foreign carriers result in the existence of
unfavorable conditions in U.S. trades.

The Shipping Act requires that vessel operating common carriers (“VOCCs”) and
marine terminal operators (“MTOs”) that wish to establish agreements that would benefit
from antitrust immunity to file copies of their agreements with the FMC. FMC staff
review these proposed agreements when they are initially filed, and before they take
effect. The FMC is authorized pursuant to section 6(g) of the Shipping Act to seek
appropriate injunction relief against any agreement which is likely to result in a
significant reduction in competition of the sort that could be expected to unreasonably
raise transportation costs or reduce transportation service.

The Shipping Act and implementing regulations also authorize the FMC to
require that agreement parties (a) provide accompanying information needed to assess
certain categories of agreements upon request; (b) file certain standard types of reports --
including quarterly economic data and/or minutes of meetings held by the agreement


Federal Maritime Commission
Strategic Plan

Fiscal Years 2010-2015

December 3, 2008


respect to their rights and/or responsibilities under the Shipping Act — including
informing them of available Commission resources that might be of use to them.

OBJECTIVE 1: Identify and take action to end unlawful, unfair and
deceptive practices.

The FMC is responsible for ensuring that individual carriers and marine terminal
operators, as well as those permitted by agreement to act in concert, treat shippers and
other members of the shipping public fairly by not engaging in prohibited acts set out in
the Shipping Act. In the effort to identify such practices, the FMC maintains a visible
presence amongst regulated entities, collects intelligence in a variety of ways and
exchanges intelligence with other regulatory and law enforcement agencies.

In order to ensure compliance with laws and regulations under the jurisdiction of
the FMC, various formal and informal actions may be taken by the Commission. Formal
investigations are initiated when violations are discovered, though often the Commission
enters into settlement agreements ending violative activities.

1. Strategies

e Gather intelligence through visible and accessible presence in the regulated
community in order to identify unlicensed OTIs and other violations.

e Monitor advertising in print, television, radio and online to identify illegal
practices.

e Gather information related to potential unlicensed OTIs.

e Receive and respond to complaints regarding egregious violations and practices.

e Identify subjects who offer, advertise or provide passage on vessels having berths
or staterooms to accommodate 50 or more passengers and have not met FMC

financial requirements.

e Audit ocean carriers and OTIs based upon information received and on a random
basis.

e Exchange information and liaise with other federal, state and local investigative
and regulatory agencies and bureaus.

e Review tariffs for accessibility and accuracy.

e Investigate allegations of unlawful, unfair and deceptive practices.


competition, to produce an unreasonable reduction in transportation service or an
unreasonable increase in transportation cost.

e Address disruptions in the ocean transportation marketplace by investigating
carrier and marine terminal operator violations of the Shipping Act.

e Take action under the FSPA to address adverse conditions affecting U.S. carriers
in the U.S. oceanborne trades, when such conditions do not exist for foreign
carriers or others providing maritime or maritime-related services in the U.S.

e Make rules and regulations affecting shipping in the foreign trade not in conflict
with law in order to adjust or meet general or special conditions unfavorable to
shipping in the foreign trade.

e Ensure timely action on formal proceedings undertaken to protect competition.

e Maintain and keep up to date an electronic library, accessible from the FMC’s:
website, of agreement documents so as to allow interested parties to easily search
for and download those documents.

2. Six-Year Performance Measure

e Percentage share of total U.S. international oceanborne trade moved by
containership, as an indicator of liner shipping efficiency.

STRATEGIC GOAL 2- Protect the public from unlawful, unfair and
deceptive ocean transportation practices and resolve shipping disputes.

The FMC has jurisdiction over activities of ocean carriers and marine terminal
operators in a variety of their commercial activities in international ocean commerce.
The FMC has a wide variety of responsibilities in protecting the shipping public from
financial harm.

Those responsibilities include the licensing of ocean transportation intermediaries
that serve U.S. trades; assisting the public in the resolution of informal complaints related
to the shipment of goods or to passenger vessel cruises; the identification and prosecution
of unreasonable or unjust practices by carrier or marine terminals; and the investigation
and satisfaction of formal complaints alleging violation of the Shipping Act. To carry out
its broad mission, the FMC uses various means including monitoring, investigation,
education, enforcement, and ombuds services.

The Commission, and its regional area representatives, also have a role in the
education of the public and of industry groups involved in U.S. international trade with


Strategic Goal

Objective

Performance
Measures

2010
Target

2011
Target

2012
Target

2013
Target

2014
Target

2015
Target

Percentage of
formal
complaints or
Commission
initiated orders
of investigation
will be
completed
within two years
of filing or
Commission
initiation.

50%

52%

54%

56%

58%

60%

STRATEGIC
GOAL 3: Advance
Agency Objectives
Through High-
Performance
Leadership and
Efficient
Stewardship of
Resources.

OBJECTIVE 1:
Ensure
performance of
agency programs
through
performance-
oriented
management and
planning.

Attain an
“unqualified”
audit opinion on
financial and
performance
monitoring
systems through
FY 2015.

Unqualif
ied Audit
Opinion

Unquali?
ied Audit
Opinion

Unqualif
ied Audit
Opinion

Unqualif
ied Audit
Opinion

Unqualit
ied Audit
Opinion

Unqualit
ied Audit
Opinion

OBJECTIVE 2:
Allocate
technological,
financial and
human resources
efficiently and
effectively
toward support
of agency
programs.

Improve
information
technology
infrastructure to
increase to 80
percent forms,
applications and
payments
received
electronically by
regulated
concerns versus
receipt of paper-
driven processes.

30%

40%

50%

60%

70%

80%

Percentage of all
recruitment
actions for GS
positions are
completed
within OPM’s 45
day hiring model
and within 30
days for SES
positions.

60%

65%

70%

75%

85%

95%



Department of Transportation. The newly-created FMC was charged with the
administration of the regulatory provisions of the shipping laws.

The Commission is responsible for the regulation of oceanborne transportation in
the foreign commerce of the U.S. The passage of the Shipping Act of 1984 (“Shipping
Act”) brought about major change in the regulatory regime applicable to shipping
companies operating in the U.S. foreign commerce. The subsequent passage of the
Ocean Shipping Reform Act of 1998 (“OSRA”), with its deregulatory amendments and
modifications to the Shipping Act, further signaled a significant shift in shipping
regulation.

Functions

The principal statutes administered by the Commission are the Shipping Act, the
Foreign Shipping Practices Act of 1988 (“FSPA”), section 19 of the Merchant Marine
Act, 1920 (1920 Act’), and Pub. L. No. 89-777. Most of these statutes were amended
by OSRA and are now codified in Title 46 of the U.S. Code at sections 40101 through
44106.

The Commission’s principal regulatory responsibilities include:

a Reviewing agreements among ocean common carriers and marine terminal
operators (“MTOs”) relating to service in the U.S. foreign oceanborne
trades, to ensure that they do not cause substantial increases in
transportation costs or decreases in transportation services.

a Reviewing service contracts between ocean common carriers and shippers
to guard against detrimental effects to shipping in the U.S. foreign trades.

a Ensuring that common carriers’ tariff rates and charges are accessible to
the shipping public in private, electronically accessible systems.

a Regulating rates, charges, and rules of government-owned or -controlled
carriers to ensure that they are just and reasonable.

r Issuing passenger vessel certificates evidencing financial responsibility of
vessel owners or charterers to pay judgments for personal injury or death,
or to refund passenger fares for the nonperformance of a voyage or cruise.

a Licensing ocean transportation intermediaries (‘OTIs”) in the U.S. to
protect the public from unqualified, insolvent, or dishonest companies.

a Ensuring that OTIs maintain sufficient financial responsibility to protect
the shipping public from financial loss.


e Percentage of key Commission issuances, orders and reports that are available
through the Commission’s website within 5 working days of receipt.

OBJECTIVE 4: Impartially resolve international shipping disputes through
alternative dispute resolution and adjudication.

The Commission has several means by which the public or entities in the
shipping industry may seck resolution of disputes or complaints. The Commission
provides ombuds services to assist parties in resolving complaints informally through its
office of Consumer Affairs and Dispute Resolution and its Area Representatives. Formal
complaints of alleged Shipping Act violations may be filed for adjudication by an
administrative law judge. Parties may seek the assistance of a trained neutral at any stage
in a formal proceeding or in the first instance for resolution using ADR processes.

1. Strategies

e Provide ombuds services to informally resolve passenger vessel, household goods
and other shipper complaints.

e Encourage the use of and provide facilitative ADR services to parties who request
services of a trained neutral in resolving disputes and shipping problems that
affect international ocean shipping.

e Adjudicate disputes under the jurisdiction of the agency through the
administrative law judge (“ALJ”) with the possibility of appeal to the
Commission.

e Timely conduct Commission proceedings so that litigants and industry can adjust
behavior accordingly.

2. Six-Year Performance Measures

e Number of cases opened and closed each fiscal year using ombuds and ADR
services assisting consumers to recover goods or funds.

e Percentage of formal complaints or Commission initiated orders of investigation
will be completed within two years of filing or Commission initiation


Ensure program compliance with various rules and regulations regarding such
areas as forms clearance, Paperwork Reduction, Small Business Paperwork
Reduction Act, and other Federally required reports and submissions.

2. Six-Year Performance Measure

Attain an “unqualified” audit opinion on financial and performance monitoring
systems annually through FY 2015.

OBJECTIVE 2: Allocate technological, financial and human_resources
efficiently and effectively toward support of agency programs.

1. Strategies

Execute financial management policies and programs, manage agency
appropriations, administer internal control systems for agency funds, travel and
cash management, and coordinate with contractors who provide accounting and
payroll services.

Monitor performance to ensure the agency’s program operations are effectively
supported via telecommunications, procurement of administrative goods and
services, property management, space, printing and copying, mail and records
services, facilities and equipment maintenance, and transportation.

Provide guidance to staff regarding administrative matters, including
procurement, personnel and contracting issues.

Utilize technology and IT expertise to streamline the agency’s work processes and
enhance the productivity of the workforce to support the needs of the commission.

2. Six-Year Performance Measures

°

Improve information technology infrastructure to increase to 80 percent forms,
applications and payments received electronically by regulated concerns versus
receipt of paper-driven processes.

Percentage of all recruitment actions for GS positions are completed within
OPM’s 45 day hiring model and within 30 days for SES positions.


OVERVIEW

The Federal Maritime Commission (“FMC”) is pleased to issue the following
2010-2015 Strategic Plan. This plan is different from the agency’s former 2003-2008
Strategic Plan in several ways. First, it replaces the five former strategic goals contained
in the earlier plan with three goals in an attempt to better capture the agency’s focus.
Second, it sets goals and objectives which directly link to the 2010 Annual Plan and will
continue to do so for subsequent annual plans through 2015. Third, it contains targets
and measures linked to objectives via strategies. Fourth, the plan drives the agency’s
budgetary process via an organizational linkage table. This is in conformance with the
spirit and letter of the Government Performance and Results Act of 1993; OMB Circular
A-11 Preparation of Submission of Strategic Plans, and Annual Program Performance
Reports and the recently issued Executive Order 13450 — Improving Government
Program Performance.

Mission

To foster a fair, efficient and reliable international ocean transportation system
and to protect the public from unfair and deceptive practices.
Strategic Goal 1

Maintain an efficient and competitive international ocean transportation system.
Strategic Goal 2

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

Strategic Goal 3

Advance agency objectives through high-performance leadership and efficient
stewardship of resources.

History

The FMC was established as an independent regulatory agency by Reorganization
Plan No. 7, effective August 12, 1961. Prior to that time, the Federal Maritime Board
was responsible for both the regulation of ocean commerce and the promotion of the
United States Merchant Marine. Under the reorganization plan, the shipping laws of the
U.S. were separated into two categories -- regulatory and promotional. The
responsibilities associated with the promotion of an adequate and efficient U.S. Merchant
Marine were assigned to the Maritime Administration, now located within the


Table of Contents

Overview ...
Summary of Strategic Goals, Objectives, and Performance Measures ...............000ee00e 6
FMC Strategic Plan Fiscal Years 2010-2015 ........ccscceeceeeeeeeeeeeeeeeeeeeeeeeeeneeeeeseeeee! 9

Strategic Goal 1: Maintain an efficient and competitive international ocean
SEAUS POEIEGM SYStGM <....020 sy accend-asnenanncenenelan everson eae ee eee 9

Objective 1: Identify and take action to address substantially anti-competitive
conduct or unfavorable trade conditions in U.S. trades............ccseesseeeeeeeeeenD

Strategic Goal 2: Protect the public from unlawful, unfair and deceptive
ocean transportation practices and resolve shipping disputes................... 11

Objective 1: Identify and take action to end unlawful, unfair and deceptive
practices

Objective 2: Prevent public harm through licensing and financial responsibility
requirements 13

Objective 3: Enhance public awareness of agency resources, remedies and
regulatory requirements through education and outreach............:::::eeeeseees 14

Objective 4: Impartially resolve international shipping disputes through
alternative dispute resolution and adjudication..............ccccceeeeeeeeeeeeeeteteeee 15

Strategic Goal 3: Advance agency objectives through high-performance
leadership and efficient stewardship of resources ...................:00seeeeeeeees 16

Objective 1: Ensure performance of agency programs through performance-
oriented managenient and planning. ...6...csssccccsecccecccsescseeessaeessszenesaee 16

Objective 2: Allocate technological, financial and human resources efficiently

and effectively toward support of agency programS..........essesseeeeseeseeeeeeeeee 17
Factors Affecting the Achievement of Goals..............:::cceeeeeeeeeeeeeeeeeeeeeeeeeeeeeee 18
Program Evaluation ..........ccccccccccccceeccccesceeeeeeeeeseseeceeeeeeeeeeeeeeeeeeeeeeeeeseeeees 19


Efficiently prosecute alleged violations of the Shipping Act.

Reach voluntary agreement with alleged violators to cease unlawful, unfair and
deceptive practices.

Respond to inquiries regarding complaint history of transportation providers and
advise consumer of means to protect themselves.

2. Six-Year Performance Measures

Percentage of enforcement actions taken under the Shipping Act successfully
resolved through favorable judgment, settlement, issuance of default judgment, or
compliance letter or notice.

OBJECTIVE 2: Prevent public harm through licensing and financial
responsibility requirements.

The FMC licenses and regulates ocean transportation intermediaries (OTIs”),

including ocean freight forwarders and NVOCCs, and ensures that OTIs have sufficient
financial responsibility. As well, the FMC issues certificates to owners and operators of
passenger vessels (“PVOs”) that have evidenced financial responsibility to satisfy
liability incurred for nonperformance of voyages and for death or injury to passengers
and other persons.

1. Strategies

°

License OTIs with the requisite character, experience and financial responsibility.

Issue PVO certificates to cruise line Operators that have met regulatory
requirements for proof of financial responsibility.

Monitor PVO unearned Passenger revenue (“UPR”) reports and conduct on-site
review of PVOs’ UPR receipts.

Review and update OTI bonds and coverage amount

2. Six-Year Performance Measures

Percentage of decisions on completed OTI license applications rendered within 90
business days, facilitating lawful operation of OTIs with the appropriate character
requirements.


STRATEGIC GOAL 3 — Advance Agency Objectives Through High-
Performance Leadership and Efficient Stewardship of Resources.

In pursuing its core strategic goals of maintaining an efficient and competitive
international transportation system and protecting the shipping public from unlawful,
unfair and deceptive ocean transportation practices, the FMC recognizes the critical
importance of providing effective, performance-oriented management and of ensuring
that all resources allocated to its mission are wisely employed.

Given the importance of maintaining agency expertise in carrying out its various
regulatory responsibilities, the strategic management of our human resources will remain
a primary concern. In addition, on-going review and streamlining of current agency work
processes, particularly through the effective use of new technologies to enhance and
improve performance is seen as a critical function.

By carefully and closely monitoring all of its operational programs, personnel needs,
planning processes, financial and procurement practices, and vital support activities, the
agency strives to ensure that its strategic goals are not only being met — but being
advanced in ways that make the most productive use of the scarce resources with which it
has been entrusted.

Objective 1: Ensure performance of agency programs through performance-
oriented management and planning.

1. Strategies

e Develop annual budget directly linked to strategic and annual performance plans
for submission to the Congress and OMB.

e Annually measure performance as established in the strategic plan and assess the
efficacy of performance measures for preparation of the annual performance plan.

e Identify and alleviate current and future skill gaps by fostering human resources
management principles, including recruitment and placement, position
classification and pay administration, occupational safety and health, employee
assistance, employee relations, workforce discipline, performance management
and incentive awards, employee benefits, career transition, retirement, employee
development and training, personnel security, and equal employment opportunity.

e Promote economy and efficiency by detecting waste, fraud and abuse in the
agency’s programs via auditing agency operations.