FEDERA

C

ANNUAL 

F

TABLE O

LETTER OF TRANSMITTAL 

MEMBERS OF COMMISSION 

SENIOR COMMISSION OFFICIA

I THE COMMISSION

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW 

A Ocean Shipping Refo

B Developments in US

C Restrictive Trade Pra

D Trade Oversight 

E Enforcement 

F TariffAutomation 

III MONITORING AND ENF

A Monitoring 

B Enforcement 

IV DEVELOPMENTS IN MA

A Transatlantic 

B Mediterranean 

C Middle East 

D Africa 

E Latin America and the 

F Transpacific 

G Worldwide 

V AUTOMATED TARIFF F

INFORMATION SYSTEM 

VI THE FOREIGN SHIPPIN

A General 

B Top Twenty USLin

Trading Partners 
VII SIGNIFICANT OPERATING 

ORGANIZATIONAL UNIT

A Office of the Secretary 

B Office of Administrative 

C Office of the General Cou

D Office of Equal Employm

E Office of Inspector Gener

F Office of the Managing 

G Bureau of Economics and 

H Bureau of Tariffs Certif

I Bureau of Enforcement 

J Bureau of Administratio

APPENDIXES

A Organization Chart 

B Commission Proceeding

C Agreement Filings and St

D Tariff and Service Cont

Special Permission Ap

E Civil Penalties Collected 

F Investigations 

G Statement of Appropriatio

and Receipts 
FEDERAL MARI

WASHINGTO

To the United States Senate 

Pursuant to section 103 e

of 1961 and section 208 

1936 as amended I am plea

Report of the activities 

Commission for fiscal year 

MEMBERS OF 

Ming C Hsu

Commissioner

Appointed 1990

Term Expired 1996

Harod

C

Appo

Term 

Delmon

Com

Appoi

Term E

One vacancy as of Februar

SENIOR COMMI

Counsel to the Chairman 

Secretary 

Chief Administrative Law J

General Counsel 

Director Office of

Equal Employment Oppo

Inspector General 

Managing Director 

Director Bureau of

Economics and

Agreement Analysis 

Director Bureau of

Tariffs Certification

and Licensing 

Director Bureau of

Enforcement 

Director Bureau of

Administration 

THE CO

A H

The Federal Maritime 

FMC was established as an 

Reorganization Plan No 7 effe

time the Federal Maritime B

regulation ofocean commerce a

US Merchant Marine U

shipping laws of the US 

categories regulatory and 

associated with the promotion 

Merchant Marine were assigned 

located within the Department o

FMC was charged with the 

provisions of the shipping laws

The Commission is no

oceanborne transportation in the 

passage ofthe Shipping Act of 1

brought about a major chang

shipping companies operating 

subsequent passage of the Oce

OSRA as a series ofderegula

to the 1984 Act further signa

shipping regulation

B FU

The principal statutes or 

the Commission are the 1984 Ac

of 1988 FSPA section 19 
1920 Act and Pub L No 8

amended and modified by OSRA 

The Commission sregulat

Protecting shippe

foreign commerce 

unfair foreign l

practices that ha

ocean trade

Reviewing opera

among ocean c

terminals to en

excessively antico

Reviewing and m

contracts betwee

shippers and usin

anticompetitive 

prohibited acts

Ensuring that co

and charges are ac

private electroni

Regulating rate

governmentowne

ensure that they 

not unfairly unde

Issuing passenge

financial respon

charterers to pay 

death or to repay 

a voyage or cruis
Licensing ocea

OTIs to pro

insolvent or dis

Ensuring that O

the shipping pu

Investigating 

classifications a

terminal opera

foreign commer

The Commission is autho

1920 Act and section 13b6

ensure that the foreign commerce 

market barriers to ocean ship

countervailing action to correct 

USforeign commerce and may 

by carriers or foreign governmen

the USforeign oceanborne trad

vessels to ocean trade between f

The 1984 Act is applica

carriers and other persons enga

exempts agreements that have be

from the USantitrust laws as co

Acts The Commission reviews 

that they do not exploit the grant 

that agreements do not otherwise 

unreasonable increase in tran

reduction in service

In addition to monitoring 

Commission is also responsible f

as well as those permitted by agr

3
shippers and other members of t

prohibits carriers from unduly d

other members of the shipping p

carriers to make their rates charg

that must be open to public inspe

published rates and charges Th

authority to approve or disapprove 

commodity rate levels in the US 

regard to certain foreign governm

Ocean common carriers also are r

all service contracts negotiated w

developed an Internetbased syste

contracts Pursuant to the 1984 A

confidential treatment by the Co

Pub L No 89777 require

with 50 or more berths who em

establish financial coverage to 

death injury or nonperformance 

certifies such operators upon the 

of financial responsibility The 

operating in the foreign comme

bonded to protect shippers from 

Commission licenses all USint

The Commission carries o

conducting informal and formal 

considers evidence and renders 

orders and implementing regu

adjudicates disputes involving th

shipping public and other affecte

C ORGA

The Commission is co

appointed for fiveyear terms by 
consent of the Senate Not mo

Commission may belong to the sa

designates one of the Commission

Chairman is the chief executive a

agency

The Commission sorganiza

the Managing Director Office ofthe 

Counsel Office of Administrative 

Employment Opportunity Office o

Economics and Agreement Analysi

and Licensing Bureau of E

Administration The Managing D

bureaus

providing executive

These offices

and administrat

and bu

Commission sregulatory programs o

In fiscal year 1999 the Com

180 fulltime equivalent positions 

1433 000 That appropriation sup

139 fulltime equivalent positions 

majority of the Commission sperso

DC with area representatives in 

Angeles Miami and Seattle

5

I

THE YEAR I

The Commission sfiscal y

Shipping Reform Act of 1998 OS

October 1998 the new law becam

Commission completed implement

and assisted the industry in comp

regulatory requirements

Notwithstanding the extens

implement OSRA the Commission 

the full breadth ofits statutory mand

investigation was commenced to 

transpacific trade where refusals 

increases were alleged during pe

Investigation of widespread malpr

South and Central American trade

targeted so as to deter market disto

And special attention continued t

practices of foreign governments A

the People s Republic of China 

scrutiny by the Commission while 

Japan to eliminate its restrictive p

Additionally the Commission rece

number of filings as the industry t

environment created by OSRA

This Annual Report essentia

office basis and contains a synops

accomplishments Special sections a

interest This section of the repo

Commission smajor activities and ac

7
A OCEA

REFORM 

Ocean shipping reform 

year when the President signe

completed a nearly fouryear 

aspects of the USocean shipp

The primary objective

ocean shipping industry with 

business remove certain regu

trade via more reliance on t

include eliminating tariff f

requiring carriers and confere

their own private automated sy

expanding the list of commod

contract requirements removi

obtain exemption from a st

Commission sauthority to add

governments and state cont

expanding bonding and licens

OSRA became effectiv

the effort to implement it took 

was required to complete fina

statutory requirements by Mar

Commission did accomplis

rulemakings were initiated e

The Commission benefitted 

suggestions received from al

those views necessitated a sign

proposals particularly regardi

service contract filing all fin

provided the industry with cle

operating under the new regu
Subsequent to completing n

was quite active assisting all s

compliance efforts and explainin

uncertainty The Commission also 

overall industry conformance with a

requirements and assessing OSRs

Both of those efforts will continue 

B DEVELOPMENT

The Commission actively 

oceanborne

economic conditions

commerce

so as to enhan

An overall imbalance of 

continued to affect liner shipping in 

year 1999 Carriers worked to meet 

equipment inbound while coping wi

capacity utilization levels outbound 

created by OSRA sreforms caused 

traditional conference system in favo

more loosely structured discussion a

in the ocean liner industry accelera

additional assets for potentially great

the acquisition of Sea Land sintern

sets an industry benchmark that oth

against in the years to come

In the transatlantic sluggish 

Europe and the euro sdepreciation a

trade imbalance USliner exports fe

grew moderately OSRA sreform

objections raised by the European 

changes both in the Trans Atlantic Co

and the trade TACA revised its con

9
its members authority to col

rates and to allow members to 

service contracts outside the c

TACA dropped to eight ca

conference scollective marke

and 49 percent inbound T

increases over the fiscal yea

direction and proposed signi

year Most of the TACA mem

levels negotiated under servic

trade eleven transatlantic carr

NAA a more loosely stru

replacing TACA NAA was w

both the FMC and the EC 

impact

US liner exports to 

while liner imports of hom

countries were strong due to 

market Future trade with the 

weak euro and a softer dem

Competition among carriers re

Europe Conference realized n

in the fiscal year

USliner exports to M

to the region ssluggish econo

a peace settlement could pro

liner imports from the regio

such goods as plastic product

matters carriers outside the I

agreement choosing to coo

discussion agreements
Economic growth stalled 

conditions ofpolitical unrest arme

during the fiscal year Among As

exports of construction materials 

modernized its infrastructure Als

Africa increased significantly as a 

industrial productivity and output 

depressed

Throughout Latin America 

liner cargo shifted in favor ofUS

fell in response to regional econo

flows freight rates for imported goo

exports correspondingly sent rates 

direction Agreement activity wa

conferences in the trades were disba

agreements The trades also exper

carrier consolidation most notably 

Crowley American Transport Inc i

of Columbus Line

Sustained growth in USim

the carrier members of the Trans

TSA to effectuate a sizable incre

peak season surcharge TSA also an

the upcoming fiscal year TSA real

the admission of China Ocean S

favorable inbound conditions also 

additional vessel capacity and line

outbound direction conditions rema

fiscal year with freight rates and ca

levels Agreement activity centered 

of major conferences as carriers co

voluntary discussion agreements lik

addressed a number of major issues 
fact finding investigation con

season capacity shortages is

service contract guidelines a

Shipowners Forum

C RESTRICTIVE 

One ofthe Commissios

eliminate protectionist practic

domestic companies or discrim

ocean shipping The Commiss

in this regard It is authorized 

practices that create conditio

general It may institute co

foreign laws or policies that ad

initiate appropriate action in in

unfair barriers in entering a fo

The Commission co

important restrictive practices 

situations were addressed mos

PRC Brazil and Japan

The Commission d

regulations unfairly disadvant

variety of maritimerelated 

Commission indicated that US 

faced restrictions in establishi

offices and in performing a 

freight forwarder services fo

required to obtain governmen

operations The Commissio

proposals for action to addr

proposals will be noticed 

effectuated
As for Brazil the Commis

tax and duty exemption the Brazil

nationalflag carriers along with 

carriers access to Brazilian gov

considering all current informatio

initiating formal action to addres

calendar year 1999 the Brazilian 

commitments that would resolv

Therefore the Commission has 

responsive action The Comm

situation to ensure that the Brazilia

its commitments and refrains from 

And regarding Japan th

removing a final rule that had be

restrictive port practices the rule 

The Commission observed that som

had been overtaken by evolving c

supportable The Commission d

conditions facing US shipping 

Japanese carriers to file semiannua

efforts The Commission cautio

reflected satisfaction with the cu

indicated a number of further steps 

take to ensure that its market ope

effective The Commission will co

Japan in the upcoming fiscal year

D TRADE O

The Commission maintains 

conditions and prevalent practices 

efforts help to uncover unreasonabl

identify potentially unfavorable 

governments

13
During the fiscal year t

information

US

from NAA when 

North Europe trade was f

sought further clarification of 

information to fully assess its p

the Commission sconcerns as 

withdrawn prior to the submiss

Request for Additional Inform

TSA svoluntary service contra

pricing effects Upon review of

allowed to take effect Addit

certain carrier activities under 

subject to the Shipping Act o

subject carriers to file an agreem

minutes of future meetings

Other specific monitorin

fiscal year 1999 included a 

discussion agreements in the m

rate trends in major liner trade

the South American trades foc

updated analysis of the freigh

controlled carrier

E ENF

The Commission is c

commerce so that a nondiscri

system is maintained for the 

trade Our aim is to identify a

and to initiate any action ne

applicable USshipping statu

The Commission ma

Miami New Orleans New 
representatives These representa

cities and transportation centers 

providing liaison between the Comm

collecting and analyzing intellig

conditions and practices During f

continued its investigation of malp

interests and middlemen in the So

of malpractice activity also were 

Caribbean trades As the year pro

passage of new legislation and th

regulations added to the uncertaint

requirements and appropriate t

Commission made every effort to as

efforts while dealing appropriate

marketplace

As previously mentioned the 

fact finding investigation to addr

eastbound Pacific trade Shippers a

carriers NVOCCs complained 

and demands for abrupt and signific

holiday shipping season An initia

issued and certain activities were id

or enforcement action by the Burea

The Commission collected 

past fiscal year These collecti

malpractices in several of our majo

segments ofthe industry Continued 

surveillance remain essential to d

foster compliance with new statutory 

continually evaluates its enforcem

OSRA to ensure that its goals and 

policy direction of this statute

15
F TARIFF 

Until April 30 1999 

Filing and Information System 

essential terms of service cont

computer and transmitted to th

retrieval OSRA put an en

Commission as of May 1 

required to publish such inform

systems Service contracts are r

the Commission

Enactment of OSRA 

Commission s ATFI system T

with the vendor who had operat

inception However arrang

availability of historical ATFI 

OSRA charged the Com

to the accessibility and acc

modifying its initial approach 

final rule was established to 

information With similar sug

the Commission developed rule

service contracts So as to fac

carriers initially were provided 

based system or a dialup syste

ATFI system This latter optio

filings would be via Internet a

The Commission rece

contracts and amendments to c

Specifically approximately 20

through September ie since 

7435 contracts had been subm

through April The Commiss
system to determine refinements a

filing and enhance the agency s 

information it contains Additi

reviewing carriers automated ta

OSRA srequirements for access

17

I

MONITOR

ENFORC

A MONI

The systematic monitor

commercial conditions in the US

the Commission sresponsibilities u

OSRA Such monitoring helps en

UStrades comply with the statut

the requirements of relevant Com

the Commission administers a va

other research activities designed t

conditions emerging commercial 

service activities

The importance the Com

monitoring activities is a direct co

the 1984 Act of the Commissis

disapprove agreements The 1984 

under relevant statutory author

Commission shall become effective 

30th day after notice in the Fede

Agreements can be rejected for te

include statutory provisions in the 

Commission may extend the origin

information from filing parties is de

Finally ifthe Commission determin

a reduction in competition is 

transportation costs or decrease tra

19
injunctive relief in the US 

Columbia

As a consequence of th

block agreements from taking ef

evaluation of post implementat

considerably The Commissios

an evaluation through its ex

including market share concen

and service conditions as well 

service contracting activity and 

In fiscal year 1999 the B

Analysis prepared a variety of e

activities and practices of carrie

trade Projects included 1 p

on information contained in the 

updated monitoring report of co

individual controlled carrier pr

authority of discussion agreem

analysis of two major agreemen

section 6gof the 1984 Act 5 

6 an updated analysis of r

controlled carrier 7 a review 

American trades especially th

quarterly

agreement

monitoring

reporting requireme

reports sub

B ENFO

The 1984 Act establis

regulation ofthe shipping and r

statutory declaration of polic

efficient and economic ocean t

international trade ofthe US 

a major area of Commission ac
is to achieve compliance with t

Compliance in turn provides the p

of the 1984 Act Enforcement is 

compliance through deterrence

The Commission maintain

Miami New Orleans New Yor

representative based in each of tho

also serve the other major port cities 

their respective areas Local pres

enhances the Commission sability 

and improves communications wi

customers

Cooperation between the Cs

and the US Customs Service C

exchange ofinvestigative informat

area representatives are now co

respective port districts and have 

relationships which contribute to t

both agencies

During 1999 the Commissi

malpractices particularly unlawfu

trades Other trades were als

investigations including the transpa

investigations included improper 

forms of secret discounts and abso

substitution as well as carriage of 

unbonded NVOCCs

In September 1998 the Com

Investigation No 23 Ocean Com

Transpacific Trades a nonadjudica

and collective practices of ocean ca

which shippers and NVOCCs of 

21
refused service andor charged 

cargo exceeded available vess

Investigative Officer issued a 

Commission That Report was 

before the House Judiciary Co

need for antitrust immunity fo

Commission extended Fact 

designated the Director of t

Investigative Officer to follow 

Act The Investigative Offic

Commission with a report on 

fiscal year

During fiscal year 1999 

in civil penalties Settlement

segments of the industry eg 

NVOCCs operating in the US
IV

DEVELOPMEN

USFOREIG

A TRANSA

While liner imports from N

during the fiscal year the pace slow

period s16 percent growth Stron

resilient dollar facilitated doubled

from North Europe through the 

consumer demand for higher price

housing related goods and other 

Nearly all new growth came in pr

which enjoyed a substantial increa

result ofthe decline in the currencs

Liner imports from Eastern Europe 

levels through the second quarter 

competitive East European goods 

this region growing at a strong pac

The fall in the euro should 

through the last three quarters of th

US economy and a shift in dema

furniture caused the inbound ex

North Europe to slow further Mor

some of the ground previously lost 

to make imports from Europe les

Therefore while healthy growth in i

through the end of 1999 import tra

to slow in 2000

23
During fiscal year 1999 

lost significant ground and cont

quarters A large amount ofthe 

in Russia that suppressed deman

as the weak euro and stagnatin

shipments were down througho

inputs such as synthetic re

wastepaper fell due to weak 

construction activity contribute

USexport to North Europe 

US liner imports outp

TEUs during fiscal year 1999 

exports to North Europe cau

operational difficulties for 

Throughout the fiscal year car

especially in the eastbound di

added costs of repositioning 

imbalanced North Atlantic trad

250 per container equipment 

shipments The surcharge main

rates which represents less tha

in the trade

The TransAtlantic 

underwent a number of majo

response to regulatory changes 

oversight by the EC and incr

Following the ECs Septemb

carriers 318 million for abus

1994 and 1996 TACA filed a 

Agreement The changes were 

to both the ECs proposed a

regulatory changes under OSR

members ended collective rat

which were part of a through 
TACA for its past joint inland pri

decision it warned that it may im

future While no court decision ha

ended the practice pursuant to the 

TACA also amended its ser

with OSRA and EC requirement

OSRA took effect TACA sSecret

entered into over 1000 individual a

and that less than 30 service cont

framework This illustrates the de

North Atlantic trade has increas

cohesion TACA also reduced 

independent action IA from 10 

In addition to these agreeme

continued to decline through the 

competitive market pressures PO

leave TACA resigned from the co

financial difficulties Over a

membership declined from a high o

end of fiscal year 1999 TACA sth

eastbound cargo remained unchang

while its collective market share f

slipped to an estimated 49 percent d

On February 12 1999 follo

members the remaining TACA m

North Atlantic carriers collectively 

trade filed the North Atlantic Agre

agreement formed to replace T

Commission with a new form of ca

contemplate the collection exchan

operational information within on

encourage the implementation of c

activities through underlying agreem

25
chartering agreements The 

conference agreement promp

information from the Agreemen

formally requested additional in

NAA members subsequently 

FMC s concerns over the poten

sought by the Agreement

Against the backdrop 

increased competitive market 

regarding the competitive effe

TACA members proposed 

January 1 1999 The propo

container and 50 per 40foot 

foot container and 100 per 40

much of these rate increases r

regulatory environment and he

westbound trade volumes gain

westbound tariff rates two add

general rate increase of 120 p

foot container took effect on J

for cargo moving under TACA 

not change

Under its 2000 Busine

raise rates effective January 

and 750 per 40foot containe

container and 200per 40 foo

and Gulf From the Pacific ra

240 per 20foot container an

increases for westbound cargo 

westbound only equipment 

September 1 1999 The rate i

percent rise in average westb

eastbound rates Accordin

increases would bring rates b
erosion in the North Atlantic trade 

historically low levels over the las

rate increases are said to be a start

contracts The competitive trade co

to which these rate increases hold

In addition to the FMC s

members activities TACA contin

EC Following its publication of 

public comment the EC receive

European Shippers Council ES

objections the EC decided to co

revised TACA arrangements reg

TACA s practices and proced

individual members commercia

procedures may affect competiti

individual service contracts Indu

now considers the inland rate ma

TACA representatives to resolve th

exchange under the Agreement

TACA has appealed the ECs

and the imposition of318 million 

rebuttal arguments but it is expect

three years before it renders a dec

appeals against the EC on the legal

and the removal of immunity from 

European Court

B MEDITER

The Mediterranean countrie

year 1999 after recovering from a b

Economic growth during fis

forecast throughout the region The 

27
Product GDP will remain 

Union EU while the Spa

growth Imports from the reg

strong growth due to the streng

The larger economies o

and Spain saw exports from 

respectively a slowdown from 

moving into the region remain

lumber with imports of the regs

for over half of the TEU grow

should continue its strong grow

in the area

Imports from the Med

booming UShousing market 

furniture tile and other home f

housing sector is slowing wea

slide in trade from the Mediter

The United States So

011587 has been unable to incr

carriers that originally formed 

competitive economic environ

though the conference has atte

the inbound trade during the fi

C MID

Israel GDP growth ha

last year seconomic crisis in R

is heavily exposed The elect

Minister has increased the c

reduction in uncertainty may 

revival of the economy Saud
have benefitted from an increas

economies remain mired in slow 

reforms have not been implemen

Growth in exports to the 

1 percent in fiscal year 1999 A 

growth to the region is expected d

economies of the region Export

exports to Saudi Arabia and Kuwa

decline in exports included a wide 

Imports from the Middle E

the biggest contributor to the g

continued to be positive though 

UShousing market may have pa

rest of the region were also stron

and furniture

The 8900Lines Agreeme

during the fiscal year This con

implemented in 1965 The agre

members preferred to operate in a 

East Indian Subcontinent Agreem

11 AF

Economic growth rates of 

low in fiscal year 1999 The Wor

had GDP rates of 5 percent or m

than 5 percent while others fail

highest average GDP rate 5 per

the West Africa Monetary Union 

Senegal Mali Burkina Faso Ni

Bissau and Benin As in previous y

Africa Development Community 

2
and 13 other countries maintain

severely restricted by political 

countries In others factors su

and inadequate education and tra

Nonetheless there were some e

the return ofNigeria to civilian 

Leone and the maintenance of 

The World Bank and its 

in Africa in calendar year 19

International Development Age

resources went into the develo

human resources and public se

Bank sSpecial Program ofAssis

were committed for the r

performance

African institutions s

Organization of African Unit

African Development Bank and 

Southern Africa participated 

promoting economic growth T

SADC and other institutions w

that endorsed and encouraged 

Many countries made reasonab

nontariff barriers to trade

UStrade with Africa flu

trade with South Africa and 

increased imports by 7 perc

infrastructure development pr

modernize areas such as transp

goods and medical supplies an

exports to theUS mainly glas

South Africa on the other hand 

percent to over 700 TEUs It 
currency the Rand and implem

revived investment and output op

Shipping rates in all sector

in calendar year 1999 Rates had 

actions by members ofthe Americ

were taken prior to the conferencs

The US Southern and East 

introduced a surcharge of 150 p

40foot container for the reposit

USEAC also imposed a general r

With few exceptions ship

Safbank Line upgraded its USs

at Miami Houston and New Orle

service by including calls at Sav

acquired by the Bailer Group

Significant agreement act

ensure compliance with the provi

E LATIN AMERICA A

The Caribbean grew stead

the top five carriers posting modes

of this growth came from Ha

northbound trade growth in the ap

and fruits and vegetables particula

problem was storm damage to the 

sector particularly its cocoa crop

In calendar year 1999 the 

of South America and the US E

from 1998 In 1998 US expo

dominated the trade by an almost 

was true with imports leading ex

3
Southbound rates from 

West Coast of South America fe

northbound rates grew modes

southbound there were rate 

increased yet overall rates dec

Despite their increased 

commodities face highly comp

to bear large rate increases Ex

competitive circumstances includ

and Columbia coffee from Per

The turnaround in the trade fr

therefore had a dramatic negati

Trade between the US 

South America faces different 

and Gulf Coast trade USexp

from 49299 TEUs in calendar y

year 1 999 Imports actually incr

contrast to the increase in impo

trade Much of this increase ca

from Chile and Peru necessary 

USfor construction materials

The East Coast ofSouth 

the largestUSto Latin America 

trading partner This trade also 

primarily an export trade from 

mostly import trade in calendar y

in January 1999 when Brazil d

real by almost 40 percent 

eliminated the ability ofBrazilia

yet lowered the cost of exports 

footwear and lumber were thr

showed strong increases in volu

parts paper and paperboar
precipitously Overall exports fe

27 percent in the second quarter 

over 1998 totals Imports howev

quarter 15 percent in the second 

quarter

The increased volume of 

problem for carriers repositioning 

these issues the carriers initiated 

in March ofup to 700 per contain

After a significant outcry from s

either largely had been incorporate

altogether

In an effort to address 

conditions in the Caribbean and C

new carrier alliances formed 

disbanded The first conference 

South America Agreement No 2

from Asian goods withUSconsu

Chile and with South American f

to the USthe conference disba

November 30 1998

The Inter American Freig

009648 in October 1998 file

members to retain their individua

the conference This cleared the 

November 1998 Maersk and S

response to those activities in 

complete revision of its agree

sections allowing for individua

notice to 24 hours removing the A

geographic scope and changing 

America Association By spring 

had ceased to be effective and th

3
While the IAFC was str

American Maritime Associatio

amended its agreement to allow 

each other or independent carri

members to enter into service 

groups permit IA with respect to 

notice period on tariff items from 

efforts the VAMA disbanded in 

conferences and seven discuss

American Trades

Among the most significa

agreements is the TMMCP 

Transportacion Maritima Mexi

subsidiary liner companies TM

Holdings Inc with its subsid

Lykes filed a joint venture agre

carrier services under the name 

The other major alliance

in the trade Maersk Lines was s

SeaLand HamburgSud Co

Transroll Navegacao and Cro

American services Finally CS

MontemarPanAmerican Indep

Maersk Columbus CSA

PO Nedlloyd have joined in a

Coast and the East Coast ofSout

Coast South America Vessel Sh

This agreement permits the car

vessels as needed in order to effe

of capacity from the trade As a 

weekly strings using 11 vessels 

vessels that had been run sepa

Maersk SeaLand and Columbu

3
The ColumbusCrowley a

largest carriers in the USto Sou

in strong working agreements w

joint venture brings Columbus 

cooperation with these carriers o

and with Companhia Chilena 

CSAV on the West Coast of Sou

strong market share in both the 

coasts and the Europe to South 

CSAV along with its who

Container Line Braztrans and M

which CSAV holds a controll

working agreement the CSA

Agreement No 203 011672 to 

share vessels market services 

functions with the aim of reducin

F TRAN

On November 2 199

Agreement TSA No 2

01

among 13 conference and non 

eastbound trades from the Far 

announced a 900 to 1000 gene

contract and tariff rates to take e

TSA announced that a peak seas

FEU would be levied between Jun

Owing to continued high demand 

and equipment and despite the 

lines into the transpacific trad

implement the announced GRI a

exceptions the PSS as well

TSA sability to impleme

aided by the decision of COS

3
discussion agreement on Februa

of approximately 7 percent ga

approximately 90 percent which 

addition Mediterranean Shippin

entrants to the transpacific trade 

1999 It subsequently withdrew 

By October 1999 curre

space in the eastbound trades w

announced a new annual GRI of

2000 and another 300 PSS sch

remain in effect until October 3

In the USto Asia export 

Stabilization Agreement No 

implement even relatively mino

despite evidence ofthe beginning

and Thailand including an incre

to Asia trades the westbound 

weak with vessels reportedly ope

levels of approximately 50 perce

Between April 30 and 

transpacific conferences the As

Agreement ANERA No 

Westbound Rate Agreement TW

JapanUnited States Eastboun

011528 were either suspen

dramatically demonstrated that 

under OSRA did indeed signal t

the transpacific trades and th

agreements as the key carrier pri

The transpacific trades a

major Commission oversight act

1 Fact Finding Investigation N

3
price increases in the eastbou

September 21 1998 2 a Marc

information related to TSA s 

voluntary

review of activities

service contract

of the Stabil

guide

Asian Shipowners Forum ASF

The Commission sMarch 

Information was issued to aid th

proposed amendment to TSA 

establish and confidentially file 

service contract guidelines as p

Commission srequest focused 

confidential guidelines governi

concerned possible pricing effects 

and the current and expected ec

trades The authority to establis

effect in early May and shortly t

public including the text of TSs 

clauses

On October 5 1999 in res

certain activities of ASF sStabi

subject to the 1984 Act ASF me

antitrust immunity under the 1984 

Shipowners ForumStabilization 

No 203 011679 was sched

November 19 1999

G WOR

For fiscal year 1999 an 

excess of exports continued to pla

But by fiscal year end signs o

foretold of a possible improvem

imports outpaced liner exports b

3
UShousing market fed consum

as furniture housewares and ce

computers from Asia and Europ

fiscal year at a growth rate of 

period Conversely total US 

worldwide foreign demand suf

1997 financial crisis and the eus

under theEUsnewly integrated 

the Federal Reserve sefforts to 

should temper consumer spendin

trade imbalance

The effects of OSRA s

were readily apparent as carriers 

new business environment that 

part OSRA s deregulation o

conference system ineffectual i

seeking to coordinate their act

more compatible with OSRA ab

loosely structured discussion 

authority As OSRA took effe

UStrades were terminated or s

agreements as ANERA TWRA 

the IAFC

As the conference syste

to strengthen theirpositions in th

assets to achieve potentially grea

efficiencies Most notably Ma

international liner assets ofSeaL

business as AP Moller Maersk 

the world slargest liner carrier 

Moller Maersk SeaLand as the 

of 250 vessels totaling over 50

1999 Maersk also purchased 
Other acquisitions during the fisca

South American services of Crow

HamburgSud Columbus Line 

Triestino and CP Ships purchas

New Zealand Direct Line

The move toward greate

industry is viewed as inevitable 

setting the standard The trend is 

several years as carriers struggle 

3

V

AUTOMATED TAR

INFORMATION S

Prior to the enactment of 

common carriers by water in the for

with the Commission and keep 

tariffs applicable to ocean tran

required that service contracts b

Commission and that essential te

available to the public in tariffform

1707 Additionally terminal tari

persons engaged in carrying on the 

dock warehouse or other termina

common carrier by water in the US

and service contract information is 

primarily is intended to keep the s

promote competition and facilitate 

imports

The Commission historical

paper pages of tariff matter per y

amount of paper with a limited 

Commission to consider modern tec

the paperwork burdens on both th

industry A systematic exploration 

with a series of studies beginning in 

A Feasibility Study conclu

electronic filing was viable An 

provided suggestions and advice 

Benefit Cost Analysis confirmed th

41
A contract was awar

development of an automated f

completed in 1992 The Comm

the advice of Congress through

friendly features in the syste

information industry sability 

Commission also provided all 

apprised the industry of rele

system

After a delay for reason

became operational in 1993 t

from paper to electronic fili

schedule ATFI was fully ope

required tarifffiling and remote 

Commission also entered into a 

the US Surface Transporta

accommodate the filing of do

filed with the STB The C

guidance and assistance to the 

dealings with the contractor

As explained more f

dramatically altered the regulat

shipping industry Tarifffiling 

essential terms with the Comm

with a system calling for the 

carriers private automated s

serving as the system for tariff 

1999 The Commission term

May 31 1999 allowing one m

system A separate contract 

availability of historical ATFI 

The ATFI system wa

information industries as a sig
It received processed and made a

information in an extremely effi

thanks those in the industry for the

of ATFI The Commission also w

PRC Inc forits technical compete

overall excellence in managing thi

43

V

THE FOREIG

PRACTICES 

A GE

The Omnibus Trade and 

enacted by Congress and effectiv

August 23 1988 contains at Title 

Practices Act of 1988 FSPA

The FSPA directs the 

conditions affecting UScarriers 

which conditions do not exist for 

under US law or as a result o

providing maritime or maritime r

During fiscal year 199

potentially restrictive practices o

Republic of China PRC which 

proceedings under the FSPA o

included limitations on non Ch

intermodal services freight forw

services in China That investigat

The Commission also reviewed 

including unfair tax treatment of n

their ability to carry certain types o

these issues subsequently were add

agreement negotiated byUSand B

The Commission also continued to 

legal and operational reforms in Js

45
B TOP TWENTY 

TRADING 

Section 10002 g 

Competitiveness Act of 1988 

annual report to Congress a lis

generated the largest volume o

recent calendar year in bilatera

The Journal of Comms

Service PIERS database wa

of top twenty partners The P

exclude all nonliner shipments 

two ways 1 tapes of import 

Automated Manifest System A

2 data transcribed manually 

manifests not necessarily filed e

data obtained from AMS are e

data are manually transcribed a

with Customs by ship lines P

company names coding of ship 

assignments The Journal of 

artificial intelligence software 

The most recent comple

available is 1998 The table on 

countries that generated the larg

in bilateral trade with the US 

represent each country stotal 

thousands ofTEUs
Rank Country

Top Twenty US

Trading Par

1 China PRC 

2 Japan 

3 Hong Kong 

4 Taiwan 

5 South Korea 

6 Germany 

7 United Kingdom Incl N Ire

8 Italy 

9 Belgium Luxembourg 

10 Brazil 

11 Thailand 

12 The Netherlands 

13 Indonesia 

14 France 

15 Malaysia 

16 Dominican Republic 

17 India 

18 Costa Rica 

19 Philippines 

20 Venezuela 

On July 1 1997 Hong Kong rev

administrative region However PIERS 

Hong Kong due to its status as a major t

Source All data are aggregatedfrom th

ServiceJournal ofCommercedatabase 

manifests and bills ofladingfor all vesse

4
The only changes to the 

to 1997 are the addition of 

countries replaced Honduras 

traditional place among the top 

revival of its manufacturing s

with the USincreased substa

conditions for its agricultural e

of investment projects and rene

In terms of ranking or

with an increase in volume o

volume Only minor changes 

other top countries
V

SIGNIF

OPER

ACTIV

B

ORGANIZAT

A OFFICE OF T

1 General

The Office of the Secreta

matters submitted to and eman

Commission Accordingly the O

and submitting regular and n

consideration by the Commission 

minutes ofactions taken by the Co

and processing formal and inform

of the shipping statutes and othe

processing special docket applica

clerical or administrative errors i

and notices of actions of the Com

and records ofall formal proceedi

petitions notices pleadings brie

regulatory and quasi judicial proce

Commission or members and emp

Freedom of Information Governm

Acts responding to information re

maritime industry and the p

authenticating instruments and 

compiling and publishing bound v

and maintaining and promulg

Commission sregulations The 

approving or denying special dock

The Secretary sOffice also 

rules designed to reduce the le

proceedings and participates in t

changes to the shipping statutes D

The Commissi

six formal pro

5
proceedings 

without dec

an admin

administrati

review The 

special dock

dockets whic

carriers for 

period the C

rulemaking 

Special Doc

proceedings 

Seven rulemaking proce

pending before the Commissi

decisions in these matters are a

2 Office ofInformal I

Informal Dockets

This Office coordinate

system throughout the Commis

information requests were proce

to the general public of over

attributable to the complain

206 140 Since 1990 this Off

over1600 0

The Office facilitated 

industry representatives and C

materials and information requ

fiscal year 1999 this Office 

requests and inquiries
In addition the Office 

adjudication ofreparation claims 

be predicated upon violations of 

received under this program cons

adjustments arising from alleged 

significant number pertain to th

shipments During fiscal year 199

pending cases were carried over f

three pending cases at the close o

During fiscal year 1999

The Office co

the Bureau o

activities of s

These efforts 

concerned fir

and contribu

in several no

The Office c

activities est

and relations

private secto

individuals 

available ser

5

B OFF

ADMINISTRATIV

1 General

Administrative Law Judge

ofan evidentiary record through ru

for the litigating parties rule upo

at hearings held after the receipt 

proceeding on the Commission s

ALJs have the authority to 

issue subpenas rule upon offe

evidence take or cause depositio

justice would he served thereby 

hold conferences for the settleme

consent of the parties dispose 

matters make decisions or recom

action authorized by agency rule 

Procedure Act

At the beginning of f

proceedings were pending before 

were added The ALJs formally s

discontinued three proceedings a

formal proceedings a dismissal a

one proceeding

2 Commission Action

The Commission adopte

initial decision in part nine ord

two dismissals of complaints oft

5
two orders approving settlem

consideration by the Commissio

3

Decisions of Adm

proceedings not yet 

Rose International Inc v 

International Ltd et al D

In this proceeding an NVO

entities engaged in moving hous

a service contract as a purported 

entities did not operate with the 

or were otherwise not a bona f

means respondents allegedly ob

operating carriers at less tha

Complainant therefore alleged th

10aof the 1984 Act which 

respondent had received freig

shipments in which it had a benef

19d4of the 1984 Act Th

respondents had obtained access 

without fraud or deceit and had 

than applicable rates that the 

payment of forwarder compensa

that the complaint should be dism

Saeid B Maralan aka Sam 

Violations ofSections8a1

ofthe Shipping Act of1984 

This proceeding was an i

respondents Sam Bustani and se

The presiding ALJ found that res

5
violations of various laws cited 

Specifically respondents had kn

NVOCC without having the requi

even after filing a tariff respond

rates Furthermore in several insta

forwarder without having the licen

Respondents were assessed 10 

additional penalties suspended pro

Respondents were also ordered to 

laws cited

4 Pending Proceedings

At the close of fiscal yea

proceedings before the ALJs o

initiated by the Commission 

instituted by the filing of compla

shippers conferences port author

trade associations and stevedore

5

C OFF

THE GENER

The General Counsel 

Commission This includes rev

recommendations for Commissio

implement Commission policie

orders and regulations for Comm

Office ofthe General Counsel pro

to the Commission its staff and 

cases As described in more deta

represents the Commission bef

administers the Commission sin

1 Rulemakings and De

The following are 

representative of matters prepare

a Rulemakings

The Content of Ocean Co

Terminal Operator Agreem

Act of 1984 Docket No 99

The Commission issued a

from interested parties rega

Commission srules governing t

and marine terminal operator M

with the Commission in acco

proceeding was initiated in resp

rulemaking proceeding in Dock

Commission sagreement regula

5
OSRA Those comments reque

content standards for agreem

Interested parties were given 60 

Notice of Inquiry which was p

August 3 1999

Ocean Common Carriers 

1984 Docket No 9910 

As a result ofcomments 

to implement OSRA the Com

amend various regulations to 

common carrier contained ther

the Commission scurrent interp

only ocean common carriers tha

trade would be subject to these ru

days to comment on the propose

Amendments to Regulations 

ConductStandards the Fe

General Public Informa

Analysis Monetary Pen

Nondiscrimination on the B

Vessel Financial Respon

Policies andEfforts to Com

09 28 SR721 April 

The Commission issued 

April 28 1999 The purpose o

certain ministerial changes requi

clarify the rules generally Amon

Commission squorum require

governing the filing of anti re

several outdated references and 

6
Service Contracts Docket 

March 1 1999 and 28SR

This rulemaking proceed

changes made by OSRA to sec

Commission issued a Notice 

December 17 1998 an Interim F

confirmed the rule as final on A

effective on May 1 1999

There were significant cha

the final rule the most notable of 

Internetbased filing system whic

commerciallynegotiated contract

from the industry prompted the 

based filing option to the proposed 

up filing system which was dev

favorable reception of the In

Commission phasedout the dialu

The final rule also addre

including the Commission sres

service contract filings the inclus

in service contract filings the im

requirement for carriers to provide 

contract information upon requ

publication of certain essential te

treatment of non conference a

contracts

6
CarrierAutomated TariffS

SR 670 February 2

April 26 1999

In response to changes 

Commission proposed new reg

tariff systems of common carri

carriers no longer have to file t

required to publish their rates 

The Commission was charge

requirements for accessibility an

can prohibit their use ifthey fai

The Commission receive

from all segments of the oce

comments proved to be pa

Commission in determining 

Accordingly on February 26 1

Wile establishing requirements 

that would go into effect on May 

In addition the Commission ad

motor vehicle However bec

in the proposed rule the Comm

an interim final rule and gave 

comment on it The Comm

comment and on April 26 199

modified definition of motor v
Licensing Financial Resp

GeneralDutiesfor Ocean Tr

Docket No 9828 28SR

and 28SR667 April 2

This proceeding added ne

to implement changes made by O

ocean freight forwarders and NVO

OSRA amended section 19 

OTIs in the USbe licensed OTI

NVOCCs as defined by the 1984 A

Commission determined who sho

States for the Licensing requirem

response to comments received 

procedure whereby foreignbase

presence in the USand obtain a 

The Commission estab

responsibility requirements comme

engaged in by the different OTIs a

claims against an OTI s financia

Reconsideration of the limited is

related issue in the surety bond fo

before the Commission In add

definitions of NVOCC servi

activities to ensure that the fina

used to pay for claims arising out 

activities

Finally the Commissio

responsibilities of OTIs Some ar

however apply only to ocean freig

the inherently different nature ofth

their customers

63
Commenters to the 

American Surety Association 

Companies filed a Petition for 

aspects of the final rule The P

the procedures for collecting on 

OTI the consents to be sued l

the definitions of freight forwa

and transportationrelated act

an administrative oversight to 

term judgments in 5123b

Marine Terminal Operato

Docket No 9827 28SR

This rulemaking was 

changes made by OSRA to 

information on their operation

for the publication ofterminal s

their terminal schedules ava

publication Any terminal sched

be enforceable in court as an im

requires all MTOs whether 

schedules to file an FMC1 form 

notification

Ocean Common Carrier a

Agreements Subject to the 

No 9826 28SR655 

1999

In this proceeding the 

governing agreements among o

reflect changes made by OSR

Commission established new 

collectively agreeing to prohibit
negotiations or requirements for 

negotiations but permitting lines 

guidelines Also to implement O

ofmarine terminal agreements sub

agreements on freight forward

mandatory notice period for carr

other conforming changes In add

the Commission also deleted mu

filed agreements

Amendments to Regulatio

Foreign Shipping Practic

Governing Controlled Carr

SR626 February 10 1

In order to implement statu

the Commission issued a propo

addressing its regulations gover

practices and controlled carriers 

comments to the proposed rule the 

February 10 1999 Major changes 

OSRA include the addition of 

remedy to address restrictive forei

of pricing practices as a po

shipping Furthermore the Co

scattered regulations governing 

section at 46 CFR Part 565

6
b Decisions

Petition of National Cu

Association ofAmerica fo

in the Alternative for a D

P598 28SR1042 J

The National Customs 

America NCBFAA petitio

rulemaking proceeding or in t

to address the scope ofthe term 

of the 1984 Act as amended 

Commission amend its Rule

515 42ato eliminate the 

forwarder sprincipal be identif

The Rule also permits the ocea

after the name of the shippe

received from the Council o

Shipowners Associations a 

carrier conference and discus

Industrial Transportation Leag

the NCBFAA Petition provided 

legal argument for reversing the 

proceedings in which the issue 

denied the Petition In its Ord

occasions on which it previousl

be considered a shipper for purp

Act including participation in s

this issue is best left for determ

casebycase basis
ANERA and its Members 

Contracts Docket No 990

1999

The Commission issued an 

North America Eastbound Rate 

members to show cause why the p

contract rates does not violate sect

Act and 514 17c2of the 

regulations The practice initiated 

contract year permitted individual 

of a service contract but to charge 

effect at time of shipment rather 

contract The practice came to th

Fact Finding Investigation No 23 O

In the Trans Pacific Trades in wh

Fact Finding Officer investigated s

allocated vessel space during the 1

on the basis of carrier profit and 

cargo unless shippers made signific

ofthe 1984 Act The Commission r

arguments in response to the Show 

the Commission sBureau of Enf

under consideration

Kin Bridge Express Inc 

USAInc Possible Vio

10band 23 of the Shipp

08 28SR604 April 8 

The Commission on its ow

ALJ s decision that Kin Bridge E

should be subject to a suspension 

comply with discovery orders F

with discovery undermines the Coms

67
and responsibilities the Commi

Express Inc s tariff until it 

appropriate sanction In complia

Act the Commission transm

President for review As th

suspension from the President 

Notice ofTariff Suspension on 

Kin Bridge Express Inc stari

Compania Sud American

American Freight Confere

28SR12 March 19 

This proceeding was 

Compania Sud Americana de 

Respondents Inter American 

Section C ofthe IAFC CSAV 

sections 10a2and 10a3

1709 a2and 3 by chargi

authorized by the IAFC Agree

damaged by the IAFC saction i

ofcredit to pay for a portion ofth

entity known as the Sociedad

Conferencias de Frete Sobrac

Respondents submitted a Moti

Judgment CSAV then filed a 

Judgment The presiding ALJ i

the Respondents Motion for Su

complaint

The Complainant had a

section I0a2by failing to file 

to dissolve Sobracon a Brazilian 

the Respondents conference act

as a matter of law the Responde

6
in their filed FMC Agreement 

requirements Disagreeing with t

issued an order in which it determin

filed the agreement to dissolve the 

to file produced a violation of sectio

the Commission issued its Order th

Reconsideration and several outsid

brief in support of the Petition for R

currently being reviewed by the Co

River Parishes Company 

Aluminum Corporation Doc

751 February 3 1999

This proceeding was initiate

Parishes Co Inc RIVCO ag

Corp Ormet RIVCO allege

10b1b12d1and d3

exclusive contract to Bisso Towbo

at the Burnside Terminal on the Mi

On April 30 1998 the p

Decision in which he found that t

over Ormet but also found that RIV

proof on the merits Both partie

Decision

On February 3 1999 the C

Order adopting the ALJ sultimate 

had jurisdiction over Ormet and tha

of proof on the merits

69
Total Fitness Equipment 

Worldlink Logistics Inc 

Application of Total Fit

Professional Gym for th

Docket Application N

December 10 1998

This proceeding arose 

Equipment Inc a shipper aga

Total Fitness alleged that Worl

ofthe 1984 Act by refusing to f

bar cargo by quoting an unified 

to the USby charging a high

and by refusing to release the 

paid In his Initial Decision 

violated sections 10b6and 

that Worldlink pay Total F

Worldlink filed Exceptions to t

filed a Reply On December 

Report and Order in which it up

Worldlink had violated section 

Total Fitness schrome track 

double billing Total Fitness and 

the second billing was paid W

of the Commission sdecision 

District of Columbia Circuit on 

2 Litigation

The General Counsel re

before courts and other adm

litigation work largely consists 

petitions for review of its or

Appeals the General Couns
injunctions enforcement of Comm

civil penalties and other cases whe

be affected by litigation

Office

The following are represen

Worldlink Logistics Inc 

Commission and United State

981622

This case was initiated in t

District of Columbia Circuit by 

Petition for Review of the Comms

Equipment Inc dba Professional 

Informal Docket No 1831 F 

Equipment Inc dba Professiona

Special Docket No 3110 Worldlin

arguing that the Commission sde

Commission and the USjointly 

arguing that the court should uph

Intervener Total Fitness filed a No

1999 indicating that it agrees w

Commission sbrief On Octobe

judgment upholding the Comms

Worldlink sPetition for Review

71
American President Lin

Commission DC Cir N

SeaLandService v Fede

Cir No 981272 Gover

v FederalMaritime Com

These cases arose from 

No 8926 Government of t

Service Inc andAmerican Pre

Guam GovGuam alleged t

Lines APL had violated se

1916 1916 Act by chargin

between Guam and the mainlan

Guam and Hawaii The ALJ 

1996 in which he found that th

unreasonable he therefore d

exceptions to the Initial De

Commission issued an order f

Act and remanding the procee

damages as well as a determina

whether certain containers mo

FMCfiled tariffs were subject 

SeaLand and APL 

Commission sdecision in the 

of Columbia Circuit on Jun

consolidated by the court Gov

Commission sdecision in th

petition was not consolidated 

On July 13 1998 the C

for lack of subject matterjurisd

arguing that the Commissios

under the Hobbs Act and thus n
September 14 1998 the Commissi

981354

motions

On

to

November

dismiss The

24

remanded

1998 the

p

had been held in abeyance pend

resumed on December 7 1998

Maryland Port Administrat

Commission 4th Cir No 97

This proceeding sought revi

in Docket No 9401 Ceres Marin

Maryland Port Administration M

violations ofsections 10b1b1

Act and sections 16 and 17 of th

engaged in unjust preference an

discrimination by failing to grant 

terminal facilities that it provided to 

lease with the Port MPA argued 

MTOs are not similarly situated and 

not unjust or unreasonable

On October 10 1997 the Co

failed to consider or address the evid

standards for his decision Therefo

Initial Decision and decided the c

found that respondent MPA had vio

of the 1984 Act by relying on a 

granting more favorable lease terms 

refusing those same or substantially 

because of its status where the vess

to the port any more security or assu

provided and further violated sect

MTO rates and charges that were ex

received particularly where the de

73
greatly disfavored the party co

cargo The Commission also f

10b1and 12 by refusin

service that were comparabl

operator unless the MTO drop

paid amounts allegedly due a

imposing on the MTO rates fo

in comparison to the rates pro

service forthe same service an

legitimate goal of the port

Respondent appealed 

Court of Appeals for the Four

Ceres intervened in the pro

February 19 1998 and argum

October 13 1998 the Court is

it affirmed in part reversed 

Commission The Court affi

Ceres barge traffic counts tow

with MPA However the Co

failed to fully consider MPA s

challenging

decision rejected

the terms

MPA s

of

claim

its l

the Court ssatisfaction theref

Commission for its considera

the Commission determine tha

merit the Commission is enco

respect to the measure of dam

On October 23 1998 

Petition to Establish a Chines

discovery regarding communi

Maritime Commission sta

November 10 1998 On Apr

Report and Order denying 

participation of agency staff in 
conflicts with the Administrative 

considerations On May 26 1999 

establishing a procedural schedule 

issue Opening briefs were filed on 

on July 20 1999 In its reply MPA 

Supreme Court decisions it is imm

under the 11 Amendment ofthe US 

1999 MPA filed a response in w

motion but also filed a motion for 

request for a briefing schedule on th

September 10 1999 the parties f

Stipulation in which they sought to 

issues for resolution in a future 

Commission granted the Motion on 

3 Legislative Activities

The General Counsel represe

all matters before Congress This in

legislation proposing legislati

Commission officials responding 

assistance and preparing agency 

Office of Management and Budget 

testimony

During fiscal year 199

Congressional inquiries were ref

comments The Office also worked 

on proposed legislation that affecte

the Office monitored the progress 

aspects of S 414 OSRA that 

Commission sstatutory mandates 

October 14 1998 Pub Law No 10

May 1 1999

75
4 Significant Ongoi

Port Restrictions and 

StatesJapan Trade Doc

February 26 1997

The Commission had 

100 0 per voyage on Japa

1997 in response to unfavor

Japanese ports The impositio

on November 6 1996 pursuan

extensive FMC investigation i

rule was originally scheduled 

postponement to allow diplom

took effect on September 4 1

In its decision the Co

conditions involving the domin

Japan by the Japan Harbor Tra

association ofJapanese waterfro

that shipping lines in the US

operational changes major o

JHTA That organization 

administration of the prior 

process of negotiations and pre 

and waterfront unions No wr

for appeal were given for JHs 

control over access to the p

competition and allocate work 

Commission also found that J

business operations of its detra

fees and impose operational re

As a result of these condition

were burdened with unreasona
The Commission found th

ultimate responsibility for JHTA s

permission of and under the reg

guidance of the Ministry of Tra

member companies are subject to M

their rates and business plans are s

that the imposition offees was warr

repeated diplomatic efforts over the 

other major trading nations have 

reforms

The sanctions were origin

April 14 1997 however bilateral 

Commission sconcerns were held 

the Government of Japan con

Memorandum ofConsultation by 

In the Memorandum of Consult

committed to a framework for 

system by July 31 1997 Based o

Commission postponed the effecti

on April 13 until September 4 

however no reform plans for the p

agreed upon or implemented Th

action to further stay the sanctions 

On October 15 1997 unde

in the final rule the payment of 4 

month of September was due by th

October 16 the Commission was i

did not intend to pay the am

Commission announced its intentio

of the final rule addressing non 

provisions liner vessels operated 

barred from or detained in US 

clearance until their debts to the US 

77
The likelihood of shi

urgency to ongoing USJapa

Maritime Administration of 

together with the Department o

proved successful On Octob

actually detained US and 

documents which would con

reaching commitment to reform 

these developments the Comm

Japanese shipping lines on fees 

accepting 15 million in com

In November once the d

were formally ratified by all 

leaders the Commission suspe

assessing sanctions The Com

executed a compromise agre

recognition ofthe substantial s

case and the signing of the port 

those fees assessed on Japanes

November 1997 The Commis

open however to monitor com

by the negotiators and to e

actually implemented

On May 28 1999 the C

the final rule and requiring 

semiannual status reports rega

Commission observed that som

example findings regarding of

been overtaken by evolving circ

the current record thus it was a

rule while the Commission ree

USshipping in Japan The C

the final rule in no way reflect

with the current status of this 
further steps that the Government 

to ensure that its market opening co

The Commission directed that the c

the status of reform efforts regar

non Japanese carriers into Japas 

Government of Japan proposals 

deregulation

5 Foreign Shipping Res

Affairs

The General Counsel is res

the Commission sinternational affa

monitors potentially restrictive for

and makes recommendations to the 

addressing such practices

The Commission has the 

foreign shipping practices under s

FSPA Section 19 empowers the 

regulations governing shipping in 

conditions unfavorable to ship

Commission to address adverse co

foreign trade which conditions do 

US

In fiscal year 1999 in addi

to Japan the Commission investig

potentially unfavorable or discri

foreign governments in Brazil and 

On August 12 1998 the C

9814 Shipping Restrictions Re

People s Republic of China w

Demand Orders to vesseloperating 

79
for information on Chinese p

access the licensing of multi

establishment of representative 

The Commission met 

information collected in this d

the Commission stated that 

indicated that Chinese laws an

disadvantage UScarriers and 

regard to a variety of maritime 

carriers are barred from openin

offices in the PRC in locations 

monthly calls thus US ca

affiliates of the stateowned 

business book space accept g

many port cities and inland loc

high minimum capital require

from performing a number o

themselves such as arranging f

consignment transshipment 

Commission also expressed co

UScarriers freight forwardi

that ocean carriers obtain gove

or changing intemational vess

could require the disclosure of 

terms and further restrict no

multimodal transport servic

restrictions the Commission 

proposal for action under s

Commission may take action

suspension of tariffs suspensio

exceed 100 0per voyage 

appropriate to address the unf

measures would upon Commis

for comment by interested part
The Office of the Gener

monitor certain maritime policies 

Commission has had serious c

providing unfair tax and duty exe

second ships register the Registro 

Commission also was troubled by 

deny US ocean carriers access t

cargoes and to levy discriminato

carried by US shipping lines 

observed that such matters ma

including imposition of sanctions 

Act However in early 1999 the 

Brazilian authorities in US Br

February 24 and 25 made a num

address the Commission sconcern

reportedly agreed to prepare a leg

REB tax preference provisions 

agreement to resolve longter

government impelled cargoes T

developments to ensure that the 

implemented

The Office of the Gene

interagency groups and internat

coordinated and participated in br

Another responsibility of 

verification of controlled carriers 

Common carriers that are ow

governments are required to 

requirements under the 1984 Act 

appropriate recommendations to th

ofpotential controlled carriers Th

Commission components also m

carriers OSRA expands the de

currently defined under the 1984 A

8
reviewed documents and inform

status of a number of carriers
D OFF

EQUAL EMP

OPPOR

The Office of Equal Em

applies knowledge of Federal E

concepts procedures and regula

comprehensive program of equa

Office works independently unde

provide advice to the Commissios

carrying out its policies and pro

affirmative program planning

The Office is responsible 

special emphasis programing 

adjudication with the assistanc

counselors and a Special Emphasi

The Office works closely 

Personnel managers and supervis

Improve recruitm

women minorities 

conditions in the w

Provide adequate 

Facilitate early re

problems

Develop program 

The Director Office of E

employees who raise allegations o

8
investigation hearing fact find

such complaints of discrim

complaints of discrimination 

resolution of formal complain

program simpact and effective

Significant accomplishm

following

1 Provided briefings to s

2 Provided workshops o

3 Provided counseling a

and employees

4 Reviewed and assessed 

resource activity and actions

5 Developed information 

executives area representativ

6 Planned and develope

FMC employee participation

7 Continued to improve 

Federal agencies and the com

programs in the special emph

8 Continued non discrim

response to Pub L No 103 12

During fiscal year 2000 

programs and initiate additiona

understanding of EEO concepts 
E OFFI

INSPECTOR 

The Office of Inspector Ge

was established pursuant to the Insp

was amended in 1988 to provide f

general at designated Federal entit

It is the duty and responsib

Provide policy 

supervise and coor

relating to the 

operations

Review existing a

regulations relating 

and operations an

concerning the im

regulations on the 

the prevention and 

in

programs

the administ

and ope

Recommend policie

or coordinate oth

financed by the C

promoting econo

administration of 

fraud and abuse in 

and operations

Recommend policie

or coordinate 

85
Commission an

local governme

agencies with r

promotion of 

administration 

of fraud and a

administered o

the identificati

in any fraud o

Keep the Cha

currently infor

other reports c

problems abu

administration 

administered 

recommend c

problems abus

the progress ma

action

During fiscal year 19

review were completed in fina

corrective actions the Comms

program the agency sReprese

At the request of the Chairman 

the feasibility of contracting 

addition the Office monitor

addressing Year 2000 Y2K 

During the year a n

received and various investiga

opened and pursued Two fo

review by the Department of Ju

was completed and another 
Integrity Section at the Departme

returned to the agency for appropria

In fiscal year 2000 the Offi

program of conducting program e

agency operations OSRA broug

changes and the Office will exa

implementing that statute In addit

will be handled as the Office carries 

to combat waste fraud and abuse i

and reviews are tied to both the age

The Office will initiate investigatio

warranted

The IG as an active memb

Integrity and Efficiency will contin

on joint projects which affect the IG 

87

to the

F OFFICE 

MANAGING 

The Managing Director as s

to the Chairman for the management 

programs managed by the

Bureau of Economi

Bureau of Tariffs C

Bureau of Enforce

Bureau ofAdminis

and thereby implements the regula

and the administrative policies and 

Also the Managing Director 

Office of the Secre

Office of the Gener

Office of Administr

and administrative assistance to the

Office of the Inspec

Further the Office ofInformation R

directly to the Office of the Managi

This management structure h

timely and proper achievement ofC

In addition the Managing Di

Management Internal Controls Off

89
Office manages those progra

agency s Senior Procureme

Information Officer and the C

During fiscal year 199

the Contracting Officer for th

ATFI Contracting Officer the 

responsibility for administrati

was terminated in the third 

implementation of OSRA w

carriers to file tariffs electron

A significant achieve

1999 was oversight ofthe orde

transition to new systems des

as well as to maintain histori

necessitated these major chang

to the public by the Commiss

to coordinate implementation 

year Strategic Plan and agency 

by the Government Performan

The Office skey obj

continued development or re

modifications in the Comms

implementation of an agenc

agency suser fee schedule for 

the passenger vessel opera

implementation ofthe Comms

including modifying the as 

Performance Plan in light of t

objectives to the new regulato

staff efforts to address restric
Office of Information 

The Office ofInformation R

administers the Commission sinfo

IRM program under the Paper

amended as well as other ap

responsibility for operating the IRM 

include conducting IRM managem

data telecommunications developi

applications coordinating reco

administering IRM contracts and d

Act clearances for submission t

responsible for managing the comp

forms programs The Director of 

Manager Forms Control Officer 

Records Management Officer

During fiscal year 1999 the 

Modified and enh

Intranet and optic

Upgraded the Coms

capability to T1 co

system and installe

Network

Conducted Informa

meetings to share 

Commission emplo

Coordinated techn

worldwide

security issues

service

r

database systems c

by the Commissio

91
Monitored the 

until terminat

Furnished age

records mana

of informatio

assistance and 

obtaining OM

prompted by 

Compiled a 

emergency fun

Developed spe

design deve

automated sy

the dialup se

Major initiatives for fi

and updating old hardware 

technology and software 2 

3 upgrading hardware and s

4 maintaining liaison with the 

that FMC sGovernment Inform

current 5 developing plans 

with the Paperwork Eliminatio

electronic records managemen

Records Administration 7 

assistance for program office

systems and 8 providing te

electronic filing of service con
G BUREAU OF 

AND AGREEME

1 General

The primary function of th

administer programs related to the 

common carriers by water under 

amended by OSRA The Bureau s

Administering co

programs to id

competitive comm

each major US 

Commission and 

conditions emerg

affecting waterbo

Conducting syste

activity

administration

in areas

of 

Developing econo

support of the 

responsibilities

Providing expert e

in formal proc

regarding unfair f

Processing and a

marine terminal a

93
2 Monitoring

The goal ofthe Bureau s

carriers operating in USocea

statutory standards and Comm

Bureau administers a variety 

research efforts designed to app

conditions emerging commer

service activities

For a description of th

fiscal year 1999 see Section II

3 General Economic 

In addition to research a

monitoring programs the Bure

variety ofCommission initiative

Bureau economists prepare tes

and cases of unfair shipping p

Act and the FSPA They also 

briefings for senior agency offi

Key projects the Bure

included 1 profiles of the m

contained in the monitoring rep

ofcontrolled carrier activities a

profiles 3 an update of the 

including a compendium entit

Oceanborne Trades 4 a re

discussion agreements in major 

adequacy of FMC minutes filin

major agreements under the 6g

major trade lanes 8a regulato

for the rulemakings impleme
agreements to determine each 

requirements for 1999 10 dev

requirements for the Inland 

11 responses to informal com

agreements in various trades 1

charged by COSCO a major con

shipping conditions in the South 

Brazil trade 14 participation in 

standard of electronically publ

15 semiannual Trans Atlantic 

meetings to discuss trade condi

16 meetings with Transpacific Sta

Transpacific Stabilization Agreeme

conditions in the Pacific 17 pre

trade for use in Congressional t

section 15 demand order concernin

19 a review ofdata submissions u

reporting requirements and 20 

policy at a US Department of 

Workshop

4 Agreement Analysis

Under sections 4 and 5 of th

among ocean common carriers to 

pool cargo or revenue allot ports or 

the volume or character of cargo o

or prevent competition or enga

arrangements are required to be file

for certain exempted categories agr

one or more MTO and one or mor

required to be filed with the Comm

Generally an agreement b

filing unless rejected by the Com

formal Commission request for ad

95
by a US district court unde

showing by the Commission 

transportation costs or unreaso

already in effect can also be e

Commission Under the Comms

nonsubstantive agreements a

period and are effective upon 

the 1984 Act empowers the Co

disapproval cancellation or m

it finds to be in violation o

Commission may seek to enjo

violates the Act

There are several cate

Commission They range fro

common conditions for ser

agreements under which any d

parties What follows is a brie

categories

a Conference 

Conference agreements 

agreement and establishment 

groups of ocean common car

limited to a geographical area 

During fiscal year 199

filings which include mo

agreements as well as new ag

processed 100 filings last fisca

there were 25 conference ag

agreements in the inbound tra

suspension at the end of the fis
b Pooling and Eq

Pooling agreements are c

carriers in a given trade providing 

of cargo or revenues or both in th

through stabilizing competitive co

set forth sailing and other require

service efficiency Equal acces

nationalflag carrier access to c

governments of reciprocal trading 

laws import quotas or other restr

There were eight pooling a

at the end of the fiscal year

c Space Charter 

Space charter agreements 

space or container slots betwee

operators Sailing agreements pro

parties sailing schedules Throug

vessels and the space on thos

agreements are able to provide a 

operating costs These agreements 

exchange equipment A numbe

agreements also have included s

within the scope of their agreemen

During fiscal year 1999 

agreements and modifications in 

filings At the end ofthe fiscal yea

and sailing agreements on file

97
d Joint Service 

Parties to joint service 

under a single name in a spec

issues its own bills of lading a

entity

Ten newjoint service ag

filed during fiscal year 1999 Th

the year Seventeen joint ser

conclusion of the fiscal year

e Cooperative W

Cooperative working 

discussion agreements which 

competitively sensitive trade 

operational undertakings that 

agreement categories This g

discussion agreements as w

equipment interchange agreem

Carriers filed 107 agree

these categories in fiscal year 

filings There were 122 of thes

fiscal year

t Marine Term

Marine terminals opera

provide facilities services and 

passengers between land and o

delivery of cargo from shippe

responsible for reviewing and 

marine terminal industry
During fiscal year 1999 

agreements relating to port and 

facilities Certain terminal agreem

under Commission rules that exe

terminal agreements from the wa

1984 Act Terminal agreements 

processed under applicable statuto

fiscal year 460 terminal agre

Commission

The number of marine 

decreased drastically since fiscal y

regulatory burden on the indus

terminal lease agreements from 

Commission was receiving appro

a year Last fiscal year the Comm

agreements

5 Overview of Agreeme

In fiscal year 1999 the B

including modifications to existin

increase 17 percent over the p

processed 385 agreement filings 

almost 12 percent Appendix C co

processing categories for the fisca

At the end of fiscal year 1

carrier agreements and 460 termina

also provides a breakdown by vari

6 Future Plans and Pro

The Bureau s overall mo

systematic oversight ofcarrier and 

9
analyzing information contain

monitoring reports submitted 

reporting requirements review

monitoring current developme

publicly available sources of tra

be employed in a planned study 

also will assess the impact of k

to monitor developments in ma

The Bureau also will co

economic testimony in formal C

areas of its expertise provide 

petitions information demand 

rulemakings perform preeffe

agreements to determine wheth

specific questions under section

raise general policy question

Commission on the more comp

that raise policy issues and 

internally under authority delega

Bureau will take action necessa

changes brought about by a reo

pursuant to OSRA

1
H BUREAU O

CERTIFICATION 

1 General

The Bureau of Tariffs 

responsible for administering the 

filing system ensuring that NVOC

appropriate evidence of financial 

ocean freight forwarders and NV

certification of owners and ope

financial responsibility and monito

of all tariffs published by commo

carriers and MTOs In meeting th

Ensures that shi

publications are n

unreasonably dis

movement of cargo 

Approves or dis

applications involv

tariff publishing ru

Administers the 

program by settin

reviewing financia

financial responsib

Reviews and proce

contract amendm

publications filed b

conferences of such 

10
Prepares recom

clerical or adm

terms of servic

Licenses ocean 

the USas OT

Act as amende

Certifies own

vessels in US

responsibility 

satisfy any liab

of voyages or 

other persons

As part of its program 

Initiates recom

proceedings by 

with other offic

Cooperates wi

with regard 

regulatory req

Processes Com

electronically

home page a

carrier sor ma

Maintains seve

the Regulated 

names addres

and other pert

Commission re
Information concerning reg

administers is available to the indus

the Commission shome page on 

information are the regulations t

requirements under 46 CFR Part 

responsibility requirements under 

responsibility requirements for O

Additionally electronic download

used in support of the Bureau sreg

the home page eg the carrier st

Applicationfor a License as an Oce

form FMC18 and the Applicatio

Responsibility form FMC131

In fiscal year 1999 th

Commission sefforts toward comp

Debt Collection Improvement Act 

whose purpose is to maximize the co

to the Federal Government

2 Foreign Commerce

a Foreign Tariffs

Before May 1 1999 section 

1707 required the filing of tar

system These tariffs set forth the ra

of common carriers operating in the 

May 1 1999 OSRA mandates the p

conference tariffs in private automat

and monitors the accessibility and a

prescribed under OSRA and revie

compliance with the Act srequireme

upon applications for special permis

rules and regulations the Bureau 

103
Commission action on tariffpub

maintain records of NVOCC fi

The Bureau is also 

Commission sform FMC1 w

the Commission shome page 

carrier sor marine terminal st

During fiscal year 199

238 foreign commerce specia

from the statutory provision

Commission stariff publishing 

b Service Cont

Service contracts offer 

tariff terms Their flexibility 

transportation services to acc

operational needs

The 1984 Act permitte

VOCCs and conferences 

shippers or shippers associat

under section 8c of the 1984 

filed confidentially with the Co

the contract sessential terms wa

made available to the genera

situated shippers could obtain 

Effective May 1 199

treatment of service contracts 

changed to include a certain vo

the 1984 Act previously speci

negotiated and signed by mul

individual ocean common carr

ocean common carriers on the 
could enter into a contract and ac

carriers so permitted Essential term

carrier published tariffs have been 

commodities involved 2 minimum 

and 4 origin and destination port 

confidential as are the carrier scom

geographic areas served under the 

right as previously existed for 

containing the same terms as a simil

global contracts covering foreignto

filed with the Commission althou

subject to the Commission sjurisd

which the UStrade matters are aff

on foreigntoforeign movements t

duty and jurisdiction to obtain relev

essential terms published for such 

contract includes matter outside the 

OSRA also prohibits the for

disputes from being affiliated wit

carrier or by the government which 

addition parties to collective barga

Commission for disclosure of oth

under certain specified conditions

The Commission determin

required to be filed electronically In 

the Bureau was responsible for dev

such filing Two systems initially 

Internetbased and another which us

system was predicated on the Comms

was provided as an option to fac

transition to OSRA requirements T

end ofthe fiscal year and all service 

filed in the Internetbased system 

designed for flexibility It does not 

105
in any prescribed order and 

contracts in WordStar Word

formats

During the first seven 

April 30 1999 the Commisss

terms publications 7435 n

amendments Under OSRA f

fiscal year 1999 the Bureau r

and 32256 amendments

c Controlled C

A controlled carrier i

operating assets are directly or 

government under whose regis

are operated Section 9 of th

provides that no controlled ca

its tariffs filed with the Commi

and reasonable nor may any su

or unreasonable classification

In addition such rates charge

carrier may not without spe

become effective sooner than t

the Commission The 1984 A

excepted the following from co

of controlled carriers of a state 

ofthe USto receive most favo

carrier of a state which subscri

Cooperation and Developmen

when members ofan agreemen

USand the controlled carries

exception removed the last thr

served exclusively by controlle
The 1984 Act previously de

whose assets are owned or controlle

registry the carrier svessels operat

controlled by a government coul

carrier status by registering its vess

the one which owned or operated 

providing simply that a carrier is c

or controlled by a government Add

rates and charges of controlled ca

Commission now is directed to ta

below a level that is fully compe

suspend a controlled carrier srates 

120 days to determine whethe

unreasonable

By Order on March 27 19

controlled carrier COSCO a lim

notice period applicable to controll

or exceed the filed rates of com

Petition No P1 98 Petition of 

Company for a Limited Exemption 

Act of 1984 In fiscal year 1999 

granted by the Commission sOrde

d Common Carrie

Program

Prior to OSRA every comm

commerce oftheUSas well as all 

were required by section 15bo

1714 and 46 CFR Part 582 t

Company Policies and Efforts to C

Commerce ofthe United States Th

Commission on or before Decem

calendar year and was signed by th

10
common carrier or ocean frei

requirement Given OSRA s

Commission waived the filing 

1998

3 Ocean Transporta

Ocean freight forwarde

combined by OSRA into a new 

1999 OTIs in the United 

Commission and must establis

and character to act as an OTI 

NVOCCs in the US Also n

furnishes a bond proof of ins

determined by the Commissi

The Commission sstatutory a

contained in section 19 of the 

amended by OSRA The Bs

enables the Commission to m

technical qualifications and fin

in the US foreign commerc

increased financial responsibi

follows freight forwarders 50

unlicensed foreign NVOCCs 

offices 10000

During fiscal year 199

and amended freight forw

Commission approved 365 

deficient and returned and 17 

The Commission also issued 

licenses At the end ofthe fisca

operating under the Commiss

forwarders 1905 were reiss

required to file riders amendm

OTI provisions of OSRA 
grandfathered as OTINVOCC lice

NVOCCs that added freight for

licenses At the end ofthe fiscal y

surety bonds were on file The 

inquiries on surety bond matters w

OTI applicants use revised form F

as an Ocean Transportation Interm

Commission shome page

4 Domestic Commerce

a

Domestic Tariff

The regulatory responsib

commerce was transferred to the 

pursuant to the ICC Termination 

109 Stat 803 1995 The F

Memorandum of Understanding t

jurisdiction

ATFI system

of the

The

STB

Bureau

to continu

main

support of the STB sreceipt and r

filed in the ATFI system through 

the STB with advice on the opera

ATFI administrative changes repo

domestic offshore tariff filings A

longer used for filing purposes afte

access to the historical data mainta

b

Marine Termin

Until May 1 1999 MTOs 

their rates charges rules and prac

ofthe Commission sregulations an

forth in section 10 of the 1984 Ac

fiscal year 1999 the Bureau recei

10
new terminal tariffs along w

filed in the ATFI system throu

OSRA effective May 1 1999 

public schedules of their rates 

limitations of liability for carg

shall be enforceable in an app

without proof of actual knowle

OSRA the Commission has p

525 the form and manner 

electronically published

5 Passenger Vessel C

The Commission admin

89777 46USC 817d and 

Commission sregulations in 

Protection ofthe Public Pub L 

to present the Commission wit

to indemnify passengers and 

nonperformance of transporta

stateroom accommodations fo

passengers at USports and te

Upon the submission 

responsibility in accordance w

Commission issues a Certific

Indemnification of Passe

Transportation Upon the 

accordance with Subpart B of 4

Certificate ofFinancial Respo

Death or Injury to Passengers 

program now encompasses abo

have evidence of financial re

310 million for nonperforman

The certificates issued pursuan

Customs clearance ofthousands 
During fiscal year 1999 the Comm

for passenger vessel certificates D

certificates and 78 performance ce

to passenger vessel applicants

The Bureau was involved 

Rulemaking aimed at protecting 

deposits and prepaid fares D

Responsibility Requirementsfor No

At the end of the fiscal year a 

reviewed for this proceeding

6 Automated Database 

The Bureau currently m

automated database systems 

2 Service Contract System 3 M

and 5 the tariff and service contr

System The Regulated Persons I

each person the Commission reg

things the address telephone num

bonding information The Service 

key service contract data some 

Commission sstaff since it is m

Microfiche System provides a mea

amendments which have been micr

certain information concerning 

information The FMC Imagin

provides for document storage a

contracts These databases pr

Commission sprograms Certa

databases is also available to the p
7 Rulemaking and D

The Bureau recommen

rulemakings and Commissio

alleged violations of the 1984 

In fiscal year 1999 the 

other agency components in d

implement OSRA Specific

rulemakings dealing with 46 C

515 Ocean Transpo

9828

520 Carrier Automat

530 Service Contrac

525 Marine Termin

98 27

The Bureau also answ

concerning the implementat

Commission snew rules

Financial Responsi

Nonperformance ofTrans

In Docket No 9406 

Notice of Proposed Rulemaki

passengers deposits and prepa

comments filed to the propose

being reviewed

1
Fact Finding Investigation 

Carrier Practices in the Tran

The Bureau conducted tarif

this investigation

Petition No P1 98 Petition 

Group Companyfor a Limit

9c ofthe Shipping Act of1

The Bureau is responsible 

filed pursuant to the authority gran

8 Enforcement Activitie

The Bureau supports the 

enforcement efforts by furnishin

Enforcement and the Bureau ofEc

with regard to tariffs service contr

and OTI licensing The Bureau als

data from its record systems to sup

the Bureau refers apparent violatio

it to the Bureau of Enforcement 

support of the prosecution of appa

1

I BUREAU OF E

The Bureau ofEnforcemen

prosecutorial arm ofthe Commissi

as trial attorneys in formal procee

of the 1984 Act and in investigat

Bureau attorneys serve as legal advi

other bureaus and also may be de

nonadjudicatory fact finding proce

other formal proceedings in order t

and to advise the Managing Direc

Bureau also participates in the deve

regulations On occasion under the 

attorneys from the Bureau may part

agency litigation to which the Com

Through investigative pers

conducts investigations into the ac

OTIs shippers ports and termin

compliance with the statutes and 

Commission Monitoring activit

reviews to determine complianc

regulations 2reviews ofOTI ope

licensing tariff and bonding requ

vessel operators to ensure the 

passengers and 4 various st

Commission programs Investiga

violations ofthe full range ofstatute

the Commission including illeg

misdeclarations of cargo illegal 

antitrust immunity unlicensed fre

carriage unbonded OTI and passen

types of consumer abuses such as f

to carry out transportation obliga

financial losses for shippers

11
The Commission ma

Miami New Orleans New 

representative based in each o

serve other major port cities a

respective areas In additi

functions area representatives 

jurisdictions provide liaison 

maritime industry and the s

intelligence ofregulatory signif

Liaison activities involve coo

government agencies providin

Commission policy to the sh

handling informal complaints

The Bureau prepares a

shipping statutes and Commiss

and settle civil penalty demand

settlement is not reached Bur

formal Commission proceeding

the assessment of civil penalti

conjunction with other bureaus 

During fiscal year 1999 

and prosecution of malpract

descriptions and measurements 

rebates in the South American 

subject of malpractice investig

Central American and Caribbean 

unlawful and discriminatory pra

rebates and absorptions mi

misdeclaration of measureme

unlawful use of service contrac

for untariffed and unbonded N

investigations have resulted i

penalties However investigat

1
common carriers have required the 

proceedings in order to pursue rem

In September 1998 the Com

Investigation No 23 a nonadjudica

and collective practices ofocean ca

which shippers and NVOCCs of 

refused service andor charged high

cargo exceeded available vessel sp

investigative and administrative 

including participation in oral heari

assisting the Investigative Officer 

Recommendations to the Comm

Commission extended Fact Find

designated the Director of the Bure

follow up on possible violations of 

In theUSNorthEurope tra

closely with the Bureau of Econo

prosecuting cases ofpossible unified 

Possible Unfiled Agreement Betw

Company Ltd and Mediterranean 

No 97 08 Possible UnfiledAgreem

Line PO Nedlloyd Limited and S

The cooperation betwe

representatives and Customs wit

investigative information continues 

Cooperation with Customs has e

operations to investigate entities sus

statutes or regulations Such coo

police and the US Immigration a

necessary

In fiscal year 1999 the Bure

program to accommodate the requi

11
is conducted from headquarte

operations of licensed OTIs t

statutory requirements and the 

This program identified sever

1984 Act and Commission re

included review ofentities hold

indication of vessel operations 

the cancellation of the tariffs o

Publication of Inactive or I

Tariffs

When the fiscal year 

pending final resolution by the 

new enforcement actions 

compromised and settled adm

formal proceedings Forty 

resolution at fiscal year send

The Bureau entered th

proceedings and participated 

the year Fifteen of these pro

remaining 16 pending at the en

At the beginning of fisc

for legal advice pending in the 

were received during the fisca

were completed Accordingly 

in the Bureau on September 30 

In fiscal years 2000 an

pursue fraudulent and anticomp

monitor US trades and the 

regulations resulting from OSR
J BUREAU OF AD

Office of th

The Bureau of Adm

administrative support to the progra

The Bureau interprets governme

administers these in a manner co

including those involving prope

financial management and per

recommendations collaborating 

Commission as warranted for lo

policies and standards and rules a

program activities The Director 

administration and coordination o

Office of Administ

Office of Budget a

Office of Personne

Many ofthe functions and a

in the narratives for these Offices b

The Director serves as the 

challenging barriers to competiti

practices as specified in the Feder

Director is the Commission s

Management Official to the Small 

Chief Financial Officer the Directo

the agency sbudget and financial m

ensures agency compliance with 

Antideficiency Act and the Debt 

1996

11
The Commission sTrain

the Director The Training Off

assistance and career counseling 

technical assistance to the Exec

Officer also serves as a memb

FMC employees took advan

programs through SAC and 

Education Institute Computer s

by statute also were offered to 

The Office of the Dire

directing and administering the 

Program which includes an ac

program to ensure effective i

12958

1 Office of Administ

a General Offic

The Office of Administ

administers a variety of ma

principally provide administrat

operations of the Commission 

Commission sContracting Off

The Office ssupport pr

procurement of administrativ

management space manageme

mail and records services form

equipment maintenance and 

functions are to secure and f

services required in support o

formulate regulations policies 
the use and provision ofthese suppo

applicable Federal guidelines

b Achievements

During fiscal year 

Assumed the role 

the FMC sATFI p

relocation of the 

FMC s Headqua

maintenance servi

and backup comp

the process to close 

Provided procurem

the award of con

Internetbased ser

Arranged for the p

FMC s3 7th Annua

Completed full im

automated prope

system

Awarded a new co

through the Depar

NationsBank

Completed the ful

automated procure

Established a defin

the Office of Th

12
accounting serv

the FMC

Arranged for 

acquisition of 

FMC sSeattle 

for the reloca

Representative

Coordinated wi

GSA and 

requirements 

telecommunica

c Future Plans

In fiscal year 2000 

following 1 continue to e

automated procurement man

Commission to provide access 

to expand the Commission s

paperless office interaction 3 

operations ofthe automated pro

4 continue to address any ne

ensure agency equipment a

5 continue to provide adviso

activities regarding innovative 

2 Office of Budget an

a General Offic

The Office ofBudget an

the Commission sfinancial ma

accounting activities fee and f
ensures that Commission obli

appropriated funds are proper deve

for submission to Congress and O

internal controls systems that provid

administers the Commission strave

as well as the Commission sImpres

official passports and assists in the 

user fees

b Achievements

During fiscal year 1999 the 

Collected and depo

and fine and pena

Coordinated and 

and estimates 

Congressional bud

to OMB participat

and testified befor

Coast Guard and M

Prepared a variety 

the Annual Leave 

Workyears and Pe

Personnel Manag

Monetary Penalty 

the Treasury Tr

Management Annu

Flow Treasury 

Travel for FY 1

transfer EFT p

FY 1999 to the EFT 

Agency Taxpayer 

12
Treasury a

accommodatio

Prepared mo

funding trave

Completed the 

effective Novem

Worked with O

implementatio

FMC travelers

c

Future Plans

Financial managemen

redesign and refinement of th

The Office also will Icontin

to automate the processing o

payments in conjunction w

procedures and controls for ca

pursue initiatives leading to e

financial operations including 

Improvement Act

3 Office of Personne

a General Offi

The Office of Personn

personnel management pro

placement position classif

occupational safety and hea

relations workforce discipli
incentive awards employee benefits 

personnel security

b Achievements

During fiscal year 1999 the 

Conducted a review 

Commission orders 

revision or revoca

conjunction with 

performance plans 

plain language 

Commission order

changes in regulatio

incorporated into o

Commission and u

Reissued guid

dismissal closurep

notifications of legi

to benefits program

Conducted the Fed

Program and Thri

including sponsorin

Benefits Fair Spo

Service Days durin

each month with em

Conducted Federal 

Transfer Open Seas

Group Life Insuran

Coordinated and 

initiatives and r

12
inquiries rega

programs

Prepared req

Voluntary Ea

Coordinated 

personnel da

requirements 

specialized co

Monitored an

Program cont

very successfu

Coordinated 

Campaign eff

Advised s

responsibilitie

performance 

milestones and 

to supervisors 

members con

process

Conducted 

recruitment a

staffing of 

conducting cy

review

Conducted a 

program coor

in connection 

and completed 
Prepared a numb

annual Employee 

annual statistical a

in connection with 

and plan certificat

programs annual 

external staffing 

interagency caree

executive and po

verification and p

annual Occupation

report of activity 

program reports 

initiatives and Os 

Guide report

c Future Plans

In fiscal year 2000 the Offic

agency management and staffon al

maintenance of a sound and p

2 implement pertinent portions of

performance plans 3continue the 

simplification flexibility and ac

management programs and 4 

Commission orders in accordance 

regulatory changes in human resou

127

APPEN

Office ofthe

Secretary

Office of the

General

Counsel

Office of the

Inspector

General

Bureau of Tariffs

Cenificadon and

Licensing

Bureau of

Admimstratiw

Bu

FEDERAL MARITIM

ORGANIZATI

Fiscal Ye

Commissioner Commissions Ch

APPEN

13
Formal Proceedings

APP

COMMISSIO

Fisca

Decisions 

Discontinuances Dismissa

Initial Decisions Not Review

Rulemakings Final Rules 

Total 

Special Dockets 

Informal Dockets 
APPEN

AGREEMENT FILI

Fiscal Y

Agreements Filed in FY 1999

including modifications

Carrier 

Terminal 

Total 

Agreements Processing Categories in 

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon Filing 

Rejection of Filing 

Formal Extension of Review Period 

Not Subject 

Withdrawals 

Total 

Carrier Reports Submitted for Comm

Minutes of Meetings and Ad Hoc Repo

Monitoring Reports 

Total 

Agreements on File as of September 

Conference 

Pooling Equal Access 

Joint Service 

Space CharteringSailing 

Cooperative Working Agency Equ

Terminal 

Total 

1
APP

TARIFF AND SERVIC

AND SPECIAL PERM

Fiscal 

Electronic Tariffs in Effect o

Electronic TariffFilings thro

Tariffs new 

Rules 

Commodity Descriptio

TariffLine Items 

Inland Tables 

TariffRecords 

Organization Records 

Essential Terms Documents

New Service Contracts 

Service Contract Amen

Special Permission Application

Granted 

Denied 

Withdrawn 

Includes essential terms publicatio

1
APPE

CIVIL PENALTI

Fiscal Y

Air Tiger ExpressUSAInc 

Alexim Trading Corporation 

American Commercial Transport In

Amerilines USA Inc and LAFCO 

Asia North America Eastbound Rate 

Best Freight International 

Best Lines Limited 

China Interocean Trans and SinoAm 

China Nat Foreign Trade dba SINO

Compania Sud Americana de Vapores 

Crowley American Transport 

Direct Container Line Inc 

Eagle Transfer Inc dba NPI Line 

Fortune Network Ltd 

Freight Line of the Americas Inc F

Giorgio Gori SRL 

Hecny Transp and Hecny South Am

Hoegh Ugland Auto Liners HUAL 

Hudson Shipping HKLtd 

International Ocean Consolidators Co

MadrigalWan Hai Lines Corp 

Mercator Shipping Ltd 

Metro Frght Serv Inc and George

NEC Logistics Ltd 

Orient Express Container Compan

Owens Refrig Freight Ltd and Coolta

PacificTrans Inc 

Prestige Forwarding Co 

Refrigerated Container Carriers 

Scanwell Container Line Ltd 

Sea Dragon Navigation Ltd 

Traffic Care International 

Total Civil Penalties Collected 

1
APPE

INVEST

Fiscal 

InvestigationsSpecial Inqu

AuditsCompliance Checks 

Compliance Chec

VOCC Audits 

Total Op

InvestigationsSpecial Inqui

AuditsCompliance Checks 

Compliance Chec

VOCC Audits 

Total Co

13
APPROPRIATIONS

APPEN

STATEMENT OF A

OBLIGATIONS AN

THE FISCAL 

SEPTEMB

Public Law 105 277 For necessary expe

as authorized by section 201 dof the M

46 App USC1111 including service

passenger motor vehicles authorized b

allowances therefor as authorized by 

exceed 2000shall be available for offic

Public Law 10651 Omnibus Consolida

Appropriations Act of 1999 

Revised Appropriation 

OBLIGATIONS AND UNOBLI

Net obligations for salaries and expense

ended September 30 1999 

STATEMENT OF RECEIPTS 

Fund of the Treasury for the Fiscal Yea

Publications and reproductions

Fees and Vessel Certification

and Freight Forwarder Applic

Fines and penalties 

Total general fund receipts 

1

U