FEDERAL MARITIME COMMISSION

STRATEGIC PLAN

FISCAL YEARS 2014-2018

November 20, 2013

Updated: April 25, 2017
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Table of Contents

Overview............................................................................................................................. 3

Summary of Strategic Goals, Objectives, and Performance Measures .............................. 6

FMC Strategic Plan Fiscal Years 2014-2018...................................................................... 7

STRATEGIC GOAL 1 - Maintain an efficient and competitive international ocean 

transportation system. ..................................................................................................... 7

OBJECTIVE 1: ENHANCE EFFICIENCY IN THE TRADES THROUGH THE USE OF ASSET 

SHARING AUTHORITY UNDER THE SHIPPING ACT OF 1984........................................... 7

STRATEGIC GOAL 2 – Protect the public from unlawful, unfair and deceptive ocean 

transportation practices and resolve shipping disputes................................................. 10

OBJECTIVE 1: IDENTIFY AND TAKE ACTION TO END UNLAWFUL, UNFAIR AND 

DECEPTIVE PRACTICES............................................................................................... 10

OBJECTIVE 2: PREVENT PUBLIC HARM THROUGH LICENSING AND FINANCIAL 

RESPONSIBILITY REQUIREMENTS. ............................................................................... 11

OBJECTIVE 3: ENHANCE PUBLIC AWARENESS OF AGENCY RESOURCES, REMEDIES 

AND REGULATORY REQUIREMENTS THROUGH EDUCATION AND OUTREACH. .............. 12

OBJECTIVE 4: IMPARTIALLY RESOLVE INTERNATIONAL SHIPPING DISPUTES 

THROUGH ALTERNATIVE DISPUTE RESOLUTION AND ADJUDICATION. ......................... 13

Administrative Strategies in Support of Agency Objectives........................................ 15

Factors Affecting the Achievement of Goals.................................................................... 17

Program Evaluation .......................................................................................................... 18
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Overview

The Federal Maritime Commission (FMC) is pleased to issue this revision of its

2014-2018 Strategic Plan. This revision replaces one of the existing performance 

measures under Strategic Goal 2, Objective 4: Impartially resolve international shipping 

disputes through alternative dispute resolution and adjudication, with a new measure for 

FY 2017 – 2018. The current measure in place since FY 2010, captures the number of 

cases opened and closed each fiscal year using ombuds and ADR services assisting

consumers to recover goods or funds. Such matters are opened upon the request of the 

public for assistance and are subject to the normal fluctuations in consumers seeking help 

from the Commission. The new measure will more accurately reflect the FMC’s 

performance assisting the public through its ombuds and ADR services. 

This updated plan retains previous strategic goals one and two, as well as a section on the 

Administrative Strategies in support of Agency Objectives. This latter section was 

established for administrative support functions such as human resources, information 

technology and financial management. Each of these important functions is subject to its 

own stringent planning and measuring regimes pursuant to various laws and executive 

mandates. Those related plans support this updated strategic plan and are referenced and 

described herein. This plan sets goals and objectives for each fiscal year through 2018

and contains targets and measures linked to objectives via strategies. These objectives, 

strategies, targets, and measures drive the agency’s budgetary process. This strategic plan

conforms with the spirit and letter of the GPRA Modernization Act of 2010; OMB 

Circular A-11 Preparation of Submission of Strategic Plans, and Annual Program 

Performance Reports; and Executive Order 13450 – Improving Government Program 

Performance.

Mission 

To foster a fair, efficient and reliable international ocean transportation system 

and to protect the public from unfair and deceptive practices. 

Strategic Goal 1

Maintain an efficient and competitive international ocean transportation system.

Strategic Goal 2

Protect the shipping public from unlawful, unfair and deceptive ocean 

transportation practices and resolve shipping disputes.

History

The FMC was established as an independent regulatory agency by Reorganization 

Plan No. 7, effective August 12, 1961. Prior to that time, the Federal Maritime Board 

was responsible for both the regulation of ocean commerce and the promotion of the 
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United States Merchant Marine. Under the reorganization plan, the shipping laws of the 

U.S. were separated into two categories — regulatory and promotional. The 

responsibilities associated with the promotion of an adequate and efficient U.S. Merchant 

Marine were assigned to the Maritime Administration, now located within the 

Department of Transportation. The newly created FMC was charged with administering

the regulatory provisions of the shipping laws.

The Commission is responsible for the regulation of oceanborne transportation in 

the foreign commerce of the United States. The passage of the Shipping Act of 1984 

(Shipping Act) brought about major change in the regulatory regime applicable to 

shipping companies operating in the U.S. foreign commerce. The subsequent passage of 

the Ocean Shipping Reform Act of 1998 (OSRA), with its deregulatory amendments and 

modifications to the Shipping Act, further signaled a significant shift in shipping 

regulation. 

Functions

The principal statutes administered by the Commission are the Shipping Act, the 

Foreign Shipping Practices Act of 1988 (FSPA), section 19 of the Merchant Marine Act,

1920 (1920 Act), and Pub. L. No. 89-777. Most of these statutes were amended by 

OSRA and are now codified in Title 46 of the U.S. Code at sections 40101 through 

44106.

The Commission’s principal regulatory responsibilities include:

■ Reviewing agreements among ocean common carriers and marine terminal 

operators (MTOs) relating to service in the U.S. foreign oceanborne 

trades, to ensure that they do not cause substantial increases in 

transportation costs or decreases in transportation services.

■ Maintaining the service contracts database and reviewing service contracts 

between ocean common carriers and shippers to guard against detrimental 

effects to shipping in the U.S. foreign trades.

■ Providing a forum for exporters, importers and other members of the 

shipping public to obtain relief from ocean shipping practices or disputes 

that impede the flow of commerce and otherwise cause economic harm.

■ Ensuring that common carriers’ tariff rates and charges are accessible to 

the shipping public in private, electronically accessible systems. 

■ Monitoring rates, charges, and rules of foreign government-owned or 

controlled carriers to ensure that they are just and reasonable.

■ Issuing passenger vessel certificates evidencing financial responsibility of 

vessel owners or charterers to pay judgments for personal injury or death, 

or to refund passenger fares for the nonperformance of a voyage or cruise.
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■ Licensing ocean transportation intermediaries (OTIs) in the U.S. to protect 

the public from unqualified, insolvent, or dishonest companies.

■ Ensuring that OTIs maintain sufficient financial responsibility to protect 

the shipping public from financial loss.

■ Protecting the shipping public against economic harm by investigating 

rates, charges, classifications, and practices of common carriers, MTOs, 

and OTIs operating in the foreign commerce of the U.S, and acting to stop 

unjust or unlawful practices.

■ Taking action to address unfavorable conditions arising out of foreign 

government or business practices in the U.S. foreign shipping trades.

Organization

The Commission is composed of five commissioners appointed by the President 

with the advice and consent of the Senate. Commissioners serve five-year, staggered 

terms, and no more than three members of the Commission may belong to the same 

political party. The President designates one of the Commissioners to serve as Chairman. 

The Chairman is the chief executive and administrative officer of the agency.

The Commission’s organizational units consist of: the Offices of the General 

Counsel, Secretary (including the Library), Consumer Affairs and Dispute Resolution 

Services, Administrative Law Judges, Equal Employment Opportunity, Inspector 

General, Managing Director, Budget and Finance, Human Resources, Information 

Technology, and Management Services; the Bureaus of Certification and Licensing, 

Enforcement, and Trade Analysis; and the Commission’s Area Representatives.
Summary of Strategic Goals, Objectives, and Performance Measures

STRATEGIC GOAL 1: Maintain an Efficient & Competitive International Ocean Transportation System

OBJECTIVE 1: Enhance efficiency in the trades through the use of asset sharing authority under the Shipping Act 

of 1984.

Performance Measure: Percentage share of U.S. 

containerized cargo moving on other agreement parties’ 

vessels in major U.S. trades.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

N/A1 39% 39.5% 40% 40.5% 41% 41.5%

STRATEGIC GOAL 2: Protect the public from unlawful, unfair and deceptive ocean transportation practices and 

resolve shipping disputes.

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

Performance Measure: Percentage of enforcement 

actions taken under the Shipping of 1984 Act successfully resolved through favorable judgment, settlement, 

issuance of default judgment, or compliance letter or 

notice.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

88% 76% 76.5% 77% 77.5% 77.5% 77.5%

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

Performance Measure: Percentage of decisions on 

completed OTI license applications rendered within 60 

calendar days of receipt, facilitating lawful operation of 

OTIs with the appropriate character and experience.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

90.2% 75% 75% 75% 75% 75% 75%

Performance Measure: Percentage of cruise line 

operators examined during the year that have the full 

financial coverage required by regulation to protect 

against loss from non-performance or casualty.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

100% 93% 94% 95% 95% 95% 95%

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

education and outreach.

Performance Measure: Percentage of key 

Commission issuances, orders and reports are 

available through the Commission’s website 

within 5 working days of receipt.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

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

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

adjudication.

Performance Measure: Number of cases opened and 

closed each fiscal year using ombuds and ADR services 

assisting consumers to recover goods or funds.2

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

893 800 825 825 825 N/A N/A

Performance Measure: Percentage of ombuds and 

ADR matters closed within 6 months of request for 

assistance.3

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

N/A N/A N/A N/A N/A 60% 60.5%

Performance Measure: Percentage of formal 

complaints or Commission initiated orders of 

investigation completed within two years of filing or 

Commission initiation.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

73% 56% 58% 58% 60% 62% 64%

 

1 This is a new Objective and Measure for FY 2013, therefore there is no actual FY 2012 performance data.

2

 This Measure was replaced in FY 2017.

3 This is a new Measure for FY 2017 and 2018 that more accurately reflects the FMC’s performance in this area.
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FMC Strategic Plan

Fiscal Years 2014-2018

STRATEGIC GOAL 1 - Maintain an efficient and competitive international ocean 

transportation system.

The Federal Maritime Commission (FMC) or (Commission) is responsible for the 

regulation of oceanborne transportation in the foreign commerce of the United States pursuant 

to the provisions of the Shipping Act of 1984 (Shipping Act). A stated policy objective of the 

Shipping Act is “to promote the growth and development of United States exports through 

competitive and efficient ocean transportation and by placing a greater reliance on the 

marketplace.” The Commission’s oversight of carrier and terminal operator antitrust 

immunity, as part of a non-discriminatory regulatory process, works to provide an efficient 

and economic transportation system in the ocean commerce of the United States. In addition,

the Commission addresses unfavorable conditions affecting U.S. carriers in U.S. oceanborne 

trades when such conditions do not exist for foreign carriers. 

Following the global economic downturn and during this time of recovery, the 

Commission’s oversight is of key importance. Efficiency and competition in the 

transportation system are essential to the re-growth of trade and the creation of jobs.

OBJECTIVE 1: ENHANCE EFFICIENCY IN THE TRADES THROUGH THE USE OF ASSET 

SHARING AUTHORITY UNDER THE SHIPPING ACT OF 1984.

The agency will achieve this objective through a number of strategies (as indicated 

below) aimed at using its statutory authority in a fair and expeditious manner to readily permit 

use of asset sharing agreements.

The FMC is also charged with protecting the shipping public, and ultimately American 

exporters and consumers, from possible abuse of the limited antitrust immunity granted by 

Congress to international liner carriers and domestic marine terminal operators under the 

Shipping Act. In addition, the FMC is responsible, under the Foreign Shipping Practices Act 

of 1988, for investigating whether laws, rules, regulations or practices of foreign 

governments, or the practices of foreign carriers result in the existence of unfavorable 

conditions in U.S. trades.

The Shipping Act requires that vessel operating common carriers (VOCCs) and 

marine terminal operators (MTOs) that wish to establish agreements that would benefit from 

antitrust immunity file copies of their agreements with the FMC. FMC staff review these 

proposed agreements when they are initially filed, and before they take effect. The FMC 

allows agreements to proceed when they do not cause competitive harm. The FMC is 

authorized, pursuant to section 6(g) of the Shipping Act, to seek appropriate injunction relief 

against any agreement which is likely to result in a reduction in competition of the sort that 

could be expected to unreasonably raise transportation costs or reduce transportation service.

The Shipping Act and implementing regulations also authorize the FMC to require 

that agreement parties (a) provide accompanying information needed to assess certain 
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categories of agreements upon request; (b) file certain standard types of reports —including 

quarterly economic data and/or minutes of meetings held by the agreement parties —

depending on the authorities sought in the agreement; and (c) submit special informational 

reports, if the FMC requires them, once the agreement comes into effect. These reporting 

requirements, and the economic data and information about agreement activities they provide, 

allow the FMC to initially evaluate, and continue to monitor on an on-going basis, the conduct 

of the parties to VOCC and MTO agreements with limited antitrust immunity.

In recent years, the FMC has seen an increase in operational VOCC and MTO 

agreements, many of which allow cooperation to improve efficiency, allow sustainable 

growth, or respond to new or imminent environmental regulations. The FMC gives 

consideration to likely efficiency, sustainability, and environmental benefits when evaluating 

their net impact on competition, transportation cost, and transportation service. 

Under the Foreign Shipping Practices Act of 1988 (FSPA), the Commission can 

address adverse conditions affecting U.S. carriers in the U.S. oceanborne trades, when such 

conditions do not exist for foreign carriers or others providing maritime or maritime-related 

services in the U.S. Section 9 of the Shipping Act also charges the Commission with 

regulating the rates, charges, and rules of foreign government-owned or -controlled carriers to 

ensure that they are just and reasonable.

1. Strategies

The Commission’s performance measure tracking the use of asset sharing agreements 

will be achieved through the following strategies. These strategies cover a broad range of 

Commission activities, all using agency resources to foster the purposes of the Shipping Act,

particularly with regard to the asset sharing agreements under this objective:

 Review initial agreements and amendments, including any additional information 

requested by the FMC, to determine the likelihood that the agreement parties could 

engage in substantially anti-competitive conduct with respect to transportation costs or 

services.

 Review, on a regular, on-going basis, the data and information provided in standard 

reports and special reporting measures to assess the existence or likelihood of 

substantially anti-competitive conduct or unfavorable trade conditions.

 Initiate meetings with representatives of the FMC’s various stakeholder industries to 

help determine whether anti-competitive behavior or unfavorable trade conditions 

exist in U.S. trades.

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

 Actively monitor for and record the presence of all foreign controlled carriers in U.S. 

trades, and regularly review their pricing practices. 

 Obtain information via inquiries and/or complaints about conduct or conditions that 

impede the efficient movement of cargo.
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 Ensure competitive conditions in the U.S. foreign oceanborne trades by working with 

agreement parties on an informal basis to negotiate changes in agreements that raise 

competitive concerns.

 Preserve competition and efficiency in ocean transportation by seeking appropriate 

injunctive relief under section 6 of the Shipping Act for agreements likely, by a 

reduction in competition, to produce an unreasonable reduction in transportation 

service or an unreasonable increase in transportation cost.

 Assess, acknowledge and promote environmentally sustainable shipping practices and 

environmentally protective agreement activities.

 Address disruptions in the ocean transportation marketplace by investigating carrier 

and marine terminal operator violations of the Shipping Act.

 Take action under the FSPA to address adverse conditions affecting U.S. carriers in 

the U.S. oceanborne trades, when such conditions do not exist for foreign carriers or 

others providing maritime or maritime-related services in the U.S.

 Make rules and regulations, pursuant to the 1920 Act, affecting shipping in the foreign 

trade not in conflict with law in order to adjust or meet general or special conditions 

unfavorable to shipping in the foreign trade.

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

 Maintain an electronic library, accessible from the FMC’s website, of agreement 

documents so as to allow interested parties to easily search for and download those 

documents.

2. Five-Year Performance Measure

 Percentage share of U.S. containerized cargo moving on other agreement parties’ 

vessels in major U.S. trades.
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STRATEGIC GOAL 2 – Protect the public from unlawful, unfair and deceptive ocean 

transportation practices and resolve shipping disputes.

The FMC has jurisdiction over activities of ocean carriers and marine terminal 

operators in a variety of their commercial activities in international ocean commerce. The 

FMC has a wide variety of responsibilities in protecting the shipping public from financial 

harm. 

Those responsibilities include the licensing of ocean transportation intermediaries that 

serve U.S. trades; assisting the public in the resolution of informal complaints related to the 

shipment of goods or to passenger vessel cruises; the identification and prosecution of 

unreasonable or unjust practices by carrier or marine terminals; and the investigation and 

satisfaction of formal complaints alleging violation of the Shipping Act. To carry out its 

broad mission, the FMC uses various means including monitoring, investigation, education, 

enforcement, and ombuds services. 

The Commission, and its regional area representatives, also have a role in the 

education of the public and of industry groups involved in U.S. international trade with 

respect to their rights and/or responsibilities under the Shipping Act – including informing 

them of available Commission resources that might be of use to them.

OBJECTIVE 1: IDENTIFY AND TAKE ACTION TO END UNLAWFUL, UNFAIR AND DECEPTIVE

PRACTICES. 

This objective will be met through agency strategies including gathering intelligence, 

monitoring OTI activity, audits, effective prosecution and dealing with complaints on 

violations.

The FMC is responsible for ensuring that individual carriers and marine terminal 

operators, as well as those permitted by agreement to act in concert, treat shippers and other 

members of the shipping public fairly by not engaging in prohibited acts set out in the 

Shipping Act. In the effort to identify such practices, the FMC maintains a visible presence 

amongst regulated entities, collects intelligence in a variety of ways and exchanges 

intelligence with other regulatory and law enforcement agencies.

In order to ensure compliance with laws and regulations under the jurisdiction of the 

FMC, various formal and informal actions may be taken by the Commission. Formal 

investigations are initiated when violations are discovered, though often the Commission 

enters into settlement agreements ending violative activities. 

1. Strategies

The following strategies are specifically aimed at achieving the five year performance 

measure of successfully resolving enforcement actions through various means.

 Gather intelligence through visible and accessible presence in the regulated 

community in order to identify unlicensed OTIs and other violations.
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 Monitor advertising in print, television, radio and online to identify illegal practices.

 Gather information related to potential unlicensed OTIs. 

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

 Identify subjects who offer, advertise or provide passage on vessels having berths or 

staterooms to accommodate 50 or more passengers and have not met FMC financial 

requirements.

 Audit ocean carriers and OTIs based upon information received and on a random 

basis.

 Exchange information and liaise with other federal, state and local investigative and 

regulatory agencies and bureaus.

 Review tariffs for accessibility and accuracy.

 Investigate allegations of unlawful, unfair and deceptive practices.

 Efficiently prosecute alleged violations of the Shipping Act.

 Reach voluntary agreement with alleged violators to cease unlawful, unfair and 

deceptive practices.

 Respond to inquiries regarding complaint history of transportation providers and 

advise consumer of means to protect themselves.

2. Five-Year Performance Measures

 Percentage of enforcement actions taken under the Shipping Act successfully resolved 

through favorable judgment, settlement, issuance of default judgment, or compliance 

letter or notice.

OBJECTIVE 2: PREVENT PUBLIC HARM THROUGH LICENSING AND FINANCIAL 

RESPONSIBILITY REQUIREMENTS.

To prevent public harm the Commission has developed the following four strategies:

OTI licensing, issuing PVO certificates, monitoring PVO unearned passenger revenue and 

updating bond and coverage amounts. 

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

ocean freight forwarders and NVOCCs, and ensures that OTIs have sufficient financial 

responsibility. As well, the FMC issues certificates to owners and operators of passenger 

vessels (PVOs) that have evidenced financial responsibility to satisfy liability incurred for 

nonperformance of voyages and for death or injury to passengers and other persons. 
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1. Strategies

The following strategies support the Commission’s five year performance measures of 

tracking the expeditious review of OTI licensing applications and assuring cruise line operator 

compliance with FMC financial responsibility requirements. 

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

 Issue PVO certificates to cruise line operators that have met regulatory requirements 

for proof of financial responsibility.

 Monitor PVO unearned passenger revenue (UPR) reports and conduct on-site review 

of PVOs’ UPR receipts.

 Review and update OTI bonds and coverage amount.

2. Five-Year Performance Measures

 Percentage of decisions on completed OTI license applications rendered within 60 

calendar days, facilitating lawful operation of OTIs with the appropriate character and 

experience requirements.

 Percentage of cruise line operators examined during the year that have the full 

financial coverage required by regulation to protect against loss from non-performance 

or casualty.

OBJECTIVE 3: ENHANCE PUBLIC AWARENESS OF AGENCY RESOURCES, REMEDIES AND 

REGULATORY REQUIREMENTS THROUGH EDUCATION AND OUTREACH.

The Commission developed various educational and outreach strategies in support of 

this objective in assuring that the public is fully aware of their regulatory responsibilities and 

how the agency can be of service to them.

Protection of the public requires knowledge on the part of regulated parties and users 

of their services as to FMC regulatory requirements. As well, the public needs to be well 

informed of the services offered by the FMC and the remedies available in the event of 

noncompliance, injury or unresolved disputes.

1. Strategies

The following strategies aimed at enhancing public awareness include a specific focus 

on the performance measure of posting certain actions on the agency website within 5 days.

 Maintain an accessible presence in local regulated communities.

 Proactively educate regulated parties of regulatory requirements.
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 Maintain VOCC and NVOCC tariff location information on the agency website.

 Emphasize OTI requirements to new licensees by letter.

 Promote awareness of FMC licensing and financial requirements.

 Make available to the public key documents in all Commission formal proceedings 

through the Commission website.

 Create and produce brochures to educate industry and public about FMC requirements 

and services.

.

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

 Continuously expand and update information available to the public through the 

website, including list of licensed OTIs.

2. Five -Year Performance Measures

 Percentage of key Commission issuances, orders and reports that are available through 

the Commission’s website within 5 working days of receipt.

OBJECTIVE 4: IMPARTIALLY RESOLVE INTERNATIONAL SHIPPING DISPUTES THROUGH 

ALTERNATIVE DISPUTE RESOLUTION AND ADJUDICATION.

The following strategies carry out this objective of fostering ADR and adjudication as 

an efficient and least costly and contentious means of resolving shipping disputes. These 

strategies concern ombuds services, facilitating ADR, arbitration, and timely conduct of 

proceedings.

The Commission has several means by which the public or entities in the shipping 

industry may seek resolution of disputes or complaints. The Commission provides ombuds

services to assist parties in resolving complaints informally through its office of Consumer 

Affairs and Dispute Resolution Services and its Area Representatives. Formal complaints of 

alleged Shipping Act violations may be filed for adjudication by an administrative law judge. 

Parties may seek the assistance of a trained neutral at any stage in a formal proceeding or in 

the first instance for resolution using ADR processes. 

1. Strategies

The following strategies were developed to timely resolve international shipping 

complaints using both formal and informal options at the Commission. 

 Provide ombuds services to informally and timely resolve passenger vessel, household 

goods, and other shipper complaints.
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 Provide facilitative ADR services to parties who request services of a trained neutral 

in timely resolving disputes and shipping problems that affect international ocean 

shipping.

 Adjudicate disputes under the jurisdiction of the agency through the administrative 

law judge (ALJ), with the possibility of appeal to the Commission, use of settlement 

officers and through arbitration.

 Timely conduct Commission proceedings so that litigants and industry can adjust 

behavior accordingly.

2. Five -Year Performance Measures

 For FY 2012 - 2016: Number of cases opened and closed each fiscal year using 

ombuds and ADR services assisting consumers to recover goods or funds.

 For FY 2017 - 2018: Percentage of ombuds and ADR matters closed within 6 months 

of request for assistance. 

 Percentage of formal complaints or Commission initiated orders of investigation will 

be completed within two years of filing or Commission initiation.
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Administrative Strategies in Support of Agency Objectives

In pursuing its strategic goals of maintaining an efficient and competitive international 

transportation system and protecting the shipping public from unlawful, unfair and deceptive 

ocean transportation practices, the FMC recognizes the critical importance of providing 

effective, performance-oriented management and of ensuring that all resources allocated to its 

mission are wisely employed. Separate but linked plans and measurement mechanisms are in 

place for human capital, information technology and financial management at the 

Commission.

The Commission’s ability to carry out its mission and serve its customers depends on 

having a well-trained, highly skilled, and flexible workforce. Critical to accomplishing the 

agency mission is a commitment to the principles of Equal Employment Opportunity (EEO), 

diversity and the implementation of EEO policies and objectives to enhance the quality of our 

work life and productivity of our workforce. The Commission’s Office of Equal Employment 

Opportunity effectively carries out this mission.

The Commission’s Human Capital Plan (for FY 2012 – 2017) aligns our human 

capital with our operational, information technology, and support processes in order to 

develop a performance-based organization. FMC’s Human Capital Accountability Plan 

guides human capital decisions using data-driven information and results-oriented planning 

techniques. It will ensure human capital needs are carefully considered as part of the 

Commission’s strategic planning and budgeting processes and will contribute to our mission 

success by monitoring and evaluating the progress and results of human capital goals, 

programs, and activities.

Planning is ongoing for use of information technology (IT) resources necessary to 

drive accomplishment of the Commission’s strategic goals. Upon the publication of this plan 

in final, the Commission will have in place a 2014-2018 IRM Strategic Plan. The 

Commission is committed to an integrated approach to IT capital planning and investment 

control — both of which are driven by the Commission’s Strategic Plan and its need to meet 

mission objectives in an efficient, transparent, and effective manner. Information technology 

planning is driven by programmatic needs of the Commission.

Financial systems are monitored and audited annually as required by the Federal 

Manager’s Financial Integrity Act of 1982, the Chief Financial Officers Act of 1990 (CFO 

Act), as amended, and the Government Management Reform Act (GMRA) of 1994 and 

reported annually through the Performance and Accountability Report. The Federal 

Managers’ Financial Integrity Act (FMFIA) of 1996 requires that agencies establish controls 

that reasonably ensure that obligations and costs comply with applicable law; assets are 

safeguarded against waste, loss, unauthorized use, or misappropriation; and revenues and 

expenditures are properly recorded and accounted for. It requires the agency head to provide 

an assurance statement of the adequacy of management controls and conformance of financial 

systems with Government standards. As well, the CFO Act mandates annual audits of the 

Commission’s internal controls systems. The Commission is committed to maintaining an 

unqualified audit opinion on audits of its Annual Financial Statements. Further, the 

Commission is committed to addressing matters identified through the Financial Statement 

Audits involving internal controls and operations considered material weaknesses. By 

carefully and closely monitoring all of its operational programs, personnel needs, planning 
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processes, financial and procurement practices, and vital support activities, the agency strives 

to ensure that its strategic goals are not only being met – but being advanced in ways that 

make the most productive, efficient, and sustainable use of the scarce resources with which it 

has been entrusted. 

1. Strategies

The FMC realizes the critical importance of the administrative component of the 

agency in support of agency strategic goals, objectives and performance measures. The 

following strategies addressing budget, planning, human resources, procurement and IT were 

developed to assure an effective administrative support program within the FMC.

 Develop annual budget directly linked to strategic and annual performance plans for 

submission to the Congress and OMB.

 Annually measure performance as established in the strategic plan and assess the 

efficacy of performance measures for preparation of the annual performance plan.

 Identify and alleviate current and future skill gaps by fostering human resources 

management principles, including recruitment and placement, position classification 

and pay administration, occupational safety and health, employee assistance, 

employee relations, workforce discipline, performance management and incentive 

awards, employee benefits, career transition, retirement, employee development and 

training, personnel security, and equal employment opportunity.

 Promote economy and efficiency by detecting waste, fraud and abuse in the agency’s 

programs via auditing agency operations.

 Increase energy efficiency by implementing environmental programs throughout 

agency operations, including reducing green house gases, recycling waste and 

conservation of resources.

 Ensure program compliance with various rules and regulations regarding such areas as

forms clearance, Paperwork Reduction, Small Business Paperwork Reduction Act, and 

other federally required reports and submissions. 

 Execute financial management policies and programs, manage agency appropriations, 

administer internal control systems for agency funds, travel and cash management, and 

coordinate with contractors who provide accounting and payroll services.

 Monitor performance to ensure the agency’s program operations are effectively, 

efficiently, and sustainably supported via telecommunications, procurement of 

administrative goods and services, property management, space, printing and copying, 

mail and records services, facilities and equipment maintenance, and transportation.

 Provide guidance to staff regarding administrative matters, including procurement, 

personnel and contracting issues.
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 Utilize technology and IT expertise to streamline the agency’s work processes and 

enhance the productivity and efficiency of the workforce to support the needs of the 

Commission.

Factors Affecting the Achievement of Goals

The FMC is a small agency that has established considerable in-house expertise in the 

legal, economic and organizational aspects of international liner shipping and the inter-modal 

movement of ocean cargo. That expertise allows the FMC to effectively pursue its goals of 

maintaining a competitive international ocean transportation system and protecting the public 

from unlawful, unfair and deceptive practices efficiently at a very modest cost to the taxpayer 

and with a minimum regulatory burden on stakeholder industries. 

A significant challenge facing the agency is the potential reduction in its operating 

budget. Given that the predominant portion of the agency’s costs is salaries, reductions in 

payroll through attrition or furloughs (as is the case in FY 2013) may be inevitable. The 

agency will continue to be seriously hampered in making necessary IT improvements.

In spite of the above fiscal austerity, the agency will need to maintain its relevant 

expertise through the recruitment, training and retention of highly qualified attorneys, 

economists, industry specialists, and information technology experts. The importance of the 

recruitment and retention issue is likely to increase as the agency’s experienced personnel 

reach retirement age, and in the face of competition from other federal agencies seeking to 

replace their retiring personnel.

Addressing the use of information technologies is one way in which the FMC is able 

to do more with less. The increasing importance of information technologies results not only 

from its contribution to the agency’s ability to collect and process information more 

efficiently and accurately, but also because of the agency’s need to keep up with the 

electronic-business practices of the industries it regulates. Greater use of information 

technology also helps make many of the aspects of licensing, certification and information 

filing simpler and easier to accomplish for the agency’s stakeholders. IT is critical to the 

maintenance and effective use of various key agency databases. 

The security of agency databases and confidential business reports and associated 

documents filed with the FMC has received increasing attention in recent years. Enhanced 

and extended applications of information technologies helps ensure that security.

The FMC regulates international ocean liner transportation, and is also involved, 

through its regulation of marine terminal operators, with aspects of the intermodal movement 

of ocean cargo in the U.S. In addition, foreign-based ocean transportation intermediaries are 

subject to statutory bonding requirements under FMC jurisdiction. To the extent that there are 

changes in the regulatory treatment of international liner operations by foreign governments, 

as was the case in Europe beginning in late 2008 with the FMC’s publication of its Study of 

the 2008 Repeal of the Liner Conference Exemption from European Union Competition Law, 

the agency will continue to monitor such changes and the likely effect of such changes on 

U.S. trades. Over time, and depending on their actual impacts, regulatory changes in other 
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regions could also provide a possible impetus for a review of U.S. statutes or regulations on 

liner shipping. Consequently, FMC analyses of possible future proposals for statutory 

revisions may be required.

Finally, in recent years the FMC has witnessed the filing of new types of agreements -

- especially marine terminal agreements -- that address nontraditional issues such as traffic 

congestion, environmental mitigation proposals, terminal operational efficiencies, and 

infrastructure funding. These nontraditional agreements tend to involve industries (drayage 

trucking and rail service), operations (pooling of chassis), and issues (air pollution, public 

health, infrastructure finance) that require the development, by agency staff, of additional 

information sources and areas of expertise. Not infrequently, these nontraditional agreements 

have potentially significant pricing and service consequences. To the extent that the filing of 

nontraditional agreements increases in coming years – which seems to be the likely trend –

they will continue to weigh heavily on the agency’s limited resources.

Program Evaluation

In general, the FMC will continue to evaluate its programs, both that address industry 

competition and those designed to protect the public from unlawful, unfair and deceptive 

practices, to ensure that they focus on the areas of greatest concern as determined by the 

analysis of required and special reporting requirements, stakeholder outreach discussions, and 

informal complaints. In addition, the agency will evaluate the extent to which its compliance 

activities are effectively addressing identified problem areas, and will implement any changes 

needed to improve compliance targeting.

The FMC will periodically review its initial agreement review process and on-going 

monitoring programs to determine whether the current reporting requirements continue to 

provide adequate information in light of changing industry conduct and new types of 

agreements being filed. In particular, the process for monitoring non-traditional agreements, 

and ensuring oversight of agreement implementation activities, will be assessed.

Taking into account the discussions with stakeholder industries, the agency will 

regularly assess which research study topics likely will best address the competitive effects, in 

the U.S. trades, of changing industry operations and business practices, foreign government 

regulatory changes, and controlled carrier activity.

The agency will, on an on-going basis, continue to assess the effectiveness of its 

auditing, investigatory and information gathering procedures with respect to unlawful, unfair 

and deceptive transportation practices. Particular attention will be given to ways to efficiently 

and accurately identify, and take appropriate compliance action with respect to, unlicensed 

ocean transportation intermediaries, including foreign-based intermediaries.

Educational and stakeholder outreach activities will be tracked and periodically 

evaluated to ensure their effectiveness in reaching targeted audiences on specific topics. 

Possible alternative activities and approaches will be considered as part of each periodic 

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

FMC website.