FY 2013 Budget Estimates submitted to the Appropriations Committee

+ 

SUBMITTED TO THE APPROPRIATIONS COMMITTEE 

(Subcommittees on Transportation, Housing and Urban Development,

And Related Agencies)

February 13, 2012 

FEDERAL MARITIME COMMISSION 

BUDGET ESTIMATES 

Fiscal Year 2013
FY 2013 Budget Estimates submitted to the Appropriations Committee

T A B L E O F C O N T E N T S

 Alphabetical Listing of Abbreviations .................................................... 1 

 Justification Materials: 

 Core Functions and Organization ........................................................ 5 

 Organization Chart .............................................................................. 6 

 Fiscal Year 2013 Policy and Funding Priorities .................................. 7 

 Highlights and Planned Activities Statements ..................................... 9 

 FMC Mission ..................................................................................... 18 

 FTEs and Positions by Program ......................................................... 19 

 Obligations by Object Class ............................................................... 20 

 Average Salary and Grade ................................................................. 21 

 Request by Strategic Goal and Program ............................................ 22 

 Summary of Changes ......................................................................... 23 

 Appropriation Language .................................................................... 24 

 Fiscal Year 2013 Budget Request by Strategic Goal ......................... 25 

 Fiscal Year 2013 Budget Request by Program/FTE Request by 

 Program ........................................................................................... 26 

 Relationship of Obligations to Outlays .............................................. 27 

 Budget Justifications:

 Formal Proceedings Program ............................................................. 29 

 Office of the Chairman ................................................................. 31 

 Office of the Commissioners ........................................................ 33 

 Office of the Secretary ................................................................... 35 

 Library ...................................................................................... 38 

 Office of Consumer Affairs and Dispute Resolution Services ..... 39 

 Office of the General Counsel ...................................................... 43 

 Designated Agency Ethics Official .......................................... 50 

 Office of Administrative Law Judges ........................................... 51 
FY 2013 Budget Estimates submitted to the Appropriations Committee

Equal Employment Opportunity Program .............................................. 53 

Inspector General Program ..................................................................... 55 

Operational and Administrative Program ............................................... 59 

 Office of the Managing Director ............................................... 61 

 Area Representatives ................................................................. 63 

 Bureau of Trade Analysis .......................................................... 67 

o Office of the Director ......................................................... 68 

o Office of Service Contracts and Tariffs ............................. 69 

o Office of Economics and Competition Analysis ................ 70 

o Office of Agreements ......................................................... 72 

 Bureau of Certification and Licensing ....................................... 77 

o Office of the Director ......................................................... 78 

o Office of Passenger Vessels and Information Processing .. 78 

o Office of Transportation Intermediaries ............................. 81 

 Bureau of Enforcement .............................................................. 83 

 Office of Information Technology ............................................. 87 

 Office of Human Resources ....................................................... 89 

 Office of Budget and Finance .................................................... 93 

 Office of Management Services ................................................ 95 

Fiscal Year 2013 Strategic Goals ............................................................ 97 

 Factors Affecting the Achievement of Goals ............................... 97 

 Strategic Goal Number 1 .............................................................. 99 

 Strategic Goal Number 2 ............................................................ 103 

Appendix A – Workload Statistics ....................................................... 111 

Appendix B – Inspector General Budget Certification ......................... 119 

Appendix C – Employee Satisfaction and Wellness ............................ 121 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

1 

 Alphabetical Listing of Abbreviations

 -#- 

1920 Act Section 19 of the Merchant Marine Act, 1920 

1978 Act Inspector General Act of 1978 

1984 Act Shipping Act of 1984 

 -AACE Automated Commercial Environment 

ACE/ITDS Automated Commercial Environment/International Trade Data System 

ADR Alternative Dispute Resolution 

AED Automatic External Defibrillator 

 agency Federal Maritime Commission 

ALJ Administrative Law Judge 

AR Area Representative 

 -BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BSC Building Security Committee 

BTA Bureau of Trade Analysis 

 -CCADRS Consumer Affairs and Dispute Resolution Services 

CBP U.S. Bureau of Customs and Border Protection 

CCIG Council of Counsels to Inspectors General 

CFR Code of Federal Regulations 

CIGIE Council of Inspectors General on Integrity and Efficiency 

CIO Chief Information Officer 

COOP Continuity of Operations 

 -D- 

 DEEO Director of EEO 

 DFI Director of Field Investigations 

 DOC Department of Commerce 

-EECM Enterprise Content Management 

EC European Commission 

EEO Equal Employment Opportunity 

EEOC Equal Employment Opportunity Commission

eOPF Electronic Official Personnel Folder 

EU European Union 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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-FFAEC Federal Audit Executive Council 

FBI Federal Bureau of Investigation 

FEHB Federal Employees Health Benefits 

FEVS Federal Employee Viewpoint Survey 

FF Fact Finding 

FISMA Federal Information Security Management Act 

FMC Federal Maritime Commission 

FMCSA Federal Motor Carrier Safety Administration 

FPS Federal Protective Service 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full-time Equivalent 

FY Fiscal Year 

 

 -GGPO Government Printing Office 

GSA Government Services Administration 

 

-HHQ Headquarters (FMC) 

HSPD-12 Homeland Security Presidential Directive 12 

 -IIAG Interagency Agreement 

ICE Immigration and Customs Enforcement 

ID Initial Decision 

IG Inspector General 

IPP Internet Payment Platform 

IT Information Technology 

ITA International Trade Administration 

 

 -M- 

 MD-715 Management Directive 715 

MD&A Management’s Discussion and Analysis 

MOU Memorandum of Understanding 

MTO Marine Terminal Operator 

 -NNFC National Finance Center 

No Fear Act Notification and Federal Employee Antidiscrimination 

 and Retaliation Act of 2002 

 NOI Notice of Inquiry 

 NPRM Notice of Proposed Rulemaking 

 NRA Negotiated Rate Agreement 

NSA NVOCC Service Arrangement 

NVOCC Non-Vessel-Operating Common Carrier 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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 -OOAGR Office of Agreements 

OALJ Office of Administrative Law Judges 

OBF Office of Budget and Finance 

OECA Office of Economics & Competition Analysis 

OEP Occupant Emergency Plan 

OFF Ocean Freight Forwarder 

OGC Office of General Counsel 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMD Office of the Managing Director 

OMS Office of Management Services 

 OPM Office of Personnel Management 

OPVIP Office of Passenger Vessels and Information Processing 

OS Office of the Secretary 

OSCT Office of Service Contracts & Tariffs 

OSRA Ocean Shipping Reform Act of 1998 

OTCnet Over the Counter Channel Application 

OTI Ocean Transportation Intermediary 

 -P- 

 PAAT Performance Appraisal Assessment Tool 

PAR Performance and Accountability Report 

PAST Performance Appraisal System Taskforce 

PCC Paper Check Conversion 

PIO Performance Improvement Officer 

P.L. Public Law 

PSA Public Service Announcement 

PVO Passenger Vessel Operator 

 -QQI Qualifying Individual 

 

 -R- 

 Reform Act Inspector General Reform Act of 2008 

RPI Regulated Persons Index 

 -SSAC Small Agency Council 

SERVCON Service Contract Filing System 

SES Senior Executive Service 

Shipping Act Shipping Act of 1984 

SSE Shanghai Shipping Exchange 

SWAT Rapid Response 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

4 

 -TTober Tober Group, Inc. 

TRS Transaction Reporting System 

TSA Transpacific Stabilization Agreement 

 -U- 

 UPR Unearned Passenger Revenue 

 U.S. United States of America 

U.S.C. United States Code 

 -VVOCC Vessel-Operating Common Carrier 

 -WWTSA Westbound Transpacific Stabilization Agreement 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

5 

FMC Core Functions

The Federal Maritime Commission (FMC, agency or Commission) is an independent agency 

which regulates oceanborne transportation in the foreign commerce of the United States. The 

Commission administers the Shipping Act of 1984 (1984 Act) as amended by the Ocean 

Shipping Reform Act of 1998 (OSRA); section 19 of the Merchant Marine Act, 1920 (1920 Act); 

the Foreign Shipping Practices Act of 1988 (FSPA); and sections 2 and 3 of Public Law (P.L.) 

89-777 (46 U.S.C. §§ 44102 and 44103). The Commission monitors the activities of ocean 

common carriers, marine terminal operators (MTOs), ports and ocean transportation 

intermediaries (OTIs) (non-vessel-operating common carriers and freight forwarders) who 

operate in the U.S. foreign commerce to ensure that they maintain just and reasonable practices; 

maintains trade monitoring, enforcement and dispute resolution programs designed to assist 

regulated entities in achieving compliance and to detect and appropriately remedy malpractices 

and violations of the prohibited acts set forth in section 10 of the 1984 Act; reviews competitive 

activities of common carrier alliances and other agreements among common carriers and/or 

terminal operators; monitors the laws and practices of foreign governments which could have a 

discriminatory or otherwise adverse impact on shipping conditions in U.S. trades, and imposes 

remedial action, as appropriate, pursuant to section 19 of the 1920 Act or FSPA; enforces special 

regulatory requirements applicable to carriers owned or controlled by foreign governments; 

processes and reviews agreements, service contracts, and service arrangements pursuant to the 

1984 Act for compliance with statutory requirements; and reviews common carriers’ privately 

published tariff systems for accessibility, accuracy, and reasonable terms. The FMC also issues 

licenses to qualified OTIs in the U.S., ensures that all OTIs are bonded or maintain other 

evidence of financial responsibility, and, pursuant to 46 U.S.C. §§ 44102 and 44103, ensures that 

passenger vessel operators (PVO) demonstrate adequate financial responsibility to indemnify 

passengers in the event of nonperformance of voyages or passenger injury or death. 

FMC Organization

 

The FMC is composed of five Commissioners appointed for five-year terms by the President 

with the advice and consent of the Senate. No more than three members of the FMC may belong 

to the same political party. The President designates one Commissioner to serve as Chairman, the 

Chief Executive and Administrative Officer of the agency. Effective January 31, 2010, the 

FMC’s organizational units consist of: Offices of the Commissioners; Office of the General 

Counsel (OGC); Office of the Secretary (OS); Office of Consumer Affairs and Dispute 

Resolution Services (CADRS); Office of Administrative Law Judges (OALJ); Office of Equal 

Employment Opportunity (EEO); Office of the Inspector General (OIG); Office of the Managing 

Director (OMD), including the Bureaus of Certification and Licensing (BCL), Enforcement 

(BOE), and Trade Analysis (BTA); the Offices of Budget and Finance (OBF), Human Resources 

(OHR), Information Technology (OIT), Management Services (OMS), and Area Representatives 

(ARs). The majority of FMC personnel are located in Washington, D.C., with ARs stationed in 

New York, New Orleans, Los Angeles, Seattle, Houston and South Florida. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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 COMMISSIONER 

Rebecca F. Dye 

2012 2013 

2 2 

COMMISSIONER 

Joseph E. Brennan 

2012 2013 

2 2 

COMMISSIONER 

Mario Cordero 

2012 2013 

2 2 

CHAIRMAN 

Richard A. Lidinsky, Jr. 

2012 2013 

3 3 

Office of the 

Inspector General 

2012 2013 

3 3 

Office of Equal 

Employment 

Opportunity 

2012 2013 

1 1 

Office of the 

Managing 

Director 

2012 2013 

9 9 

COMMISSIONER 

Michael A. Khouri 

2012 2013 

2 2 

Office of the 

General 

Counsel 

2012 2013 

11 11 

Office of the 

Secretary 

2012 2013 

9 9 

Office of 

Administrative 

Law Judges 

2012 2013 

3 3 

Office of 

Consumer 

Affairs and 

Dispute 

Resolution 

Services 

2012 2013 

8 8

Office of 

Budget and 

Finance 

2012 2013 

5 5 

Office of 

Human 

Resources 

2012 2013 

5 5 

Office of 

Management 

Services 

2012 2013 

5 5 

Office of 

Information 

Technology 

2012 20 13 

8 8 

Bureau of 

Certification and 

Licensing 

2012 2013 

16 16 

Bureau of 

Enforcement 

2012 2013 

10 10 

Bureau of Trade 

Analysis 

2012 2013 

19 19 

Area Representatives 

Houston 

Los Angeles 

New Orleans 

New York 

Seattle 

South Florida 

2012 2013 

9 9 

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

as of JANUARY 30, 2010 

(Positions on September 30) 

Administrative Direction 

Technical Direction 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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Fiscal Year 2013 Policy and Funding Priorities

In fiscal year (FY) 2013, the Commission’s policy and funding priorities will continue to center 

on fostering a viable and vibrant liner shipping environment critical to the nation’s international 

trade and economic growth. The FMC has a twofold strategic focus, as reflected in our Strategic 

Plan for 2010-2015, in both maintaining an efficient and competitive international ocean 

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

transportation practices. The accomplishment of these strategic goals is critical to the President’s 

goals to encourage economic growth, invest in the future, and responsibly govern the nation. 

The smooth flow of international commerce is vital to the national economy in both providing 

access to foreign markets for our exports and ensuring the availability of imported goods for 

domestic production and consumption. The Commission is especially concerned that the ocean 

transportation system fully supports the President’s National Export Initiative. 

 

The regulatory scheme now in place at the FMC is under constant review, and as economic 

conditions alter the state of our trades, the FMC’s regulations must continue to respond to those 

conditions. Soon the Commission will complete its study of the impact of the European Union’s 

(EU) removal of its block exemption of antitrust immunity for ocean carriers. We have initiated 

a review of Commission regulations to ascertain their continued need and relevance to changing 

market conditions while also responding to public requests for review of regulations on issues 

such as tariff publication and agreements. This review will continue into fiscal year 2013. 

Evolving business models requiring Commission attention in the coming years are likely to 

include the increased use of MTO discussion agreements and OTI freight networks, and their 

impact on the shipping public. In protecting the public from harm, we will use an integrated 

approach, stressing industry compliance with licensing and other requirements, providing a 

variety of services for quick, fair resolution of disputes, and, where necessary, vigorously 

enforcing the Commission’s governing statutes and regulations. The use of technology and 

dissemination of public information is of major importance; web-based and social media-based 

accessibility to Commission services and information will increasingly facilitate public 

interaction, while adding greater efficiencies to internal business processes. Overall emphasis 

will be placed on facilitating the commercial flow of exports and imports, and the FMC will 

continue to provide services and outreach to the shipping public to assist in the implementation 

of industry practices that can improve the ocean transportation system. These actions and more 

will provide the means for the FMC to accomplish its stated mission to foster a fair, efficient, 

and reliable international ocean transportation system and to protect the public from unfair and 

deceptive practices. 

The Commission proposes to continue three important initiatives in fiscal year 2013 to address 

matters identified through recent fact finding (FF) investigations into capacity and equipment 

constraints and household goods shipping issues. Investigations into both areas were completed 

and recommended actions initiated during fiscal year 2011. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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The first initiative will provide increased consumer protection by integrating the use of various 

tools in order to address shipping difficulties and malpractices in the ocean transportation system 

that are encountered by importers and exporters. The Commission will provide a variety of 

alternative dispute resolution (ADR) services to resolve disputes without encumbering 

commercial relationships with the time, expense, and acrimony of litigation or enforcement 

activity. Significantly, the Commission’s ombuds program and Rapid Response Teams provide 

opportunity for quick resolution of transportation impediments. At the same time, we will 

strengthen our enforcement activity to provide deterrence by penalizing those who pursue 

unlawful malpractices. Through the administrative process, the Commission will also continue 

to provide a forum for adjudication of Shipping Act violations and redress through reparations. 

Finally, we will focus on achieving compliance with OTI licensing requirements. 

The second initiative will target operating efficiencies for the Commission and users of 

Commission services through improved technology. Our goal will be to continue implementing 

technological advances that will increase Commission productivity and provide for electronic 

submission of license applications, agreements, and other filings. 

The third initiative will see the Commission provide increased public and international trade 

presence. Not only will we continue striving for a more open government, but we will also 

continue to openly dialogue with U.S. trading partners to ensure U.S. trade is not hampered by 

regulatory or other actions of those trading partners. By statute, the Commission is charged with 

identifying, investigating, and addressing unfavorable conditions in foreign trade as well as 

foreign practices that harm the U.S. maritime industry.

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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Highlights and Planned Activities Statements

Key Accomplishments in Fiscal Year 2011 

The commercial ocean transportation system returned to a more normal state in fiscal year 2011, 

as vessel capacity was returned to service in the U.S. inbound and outbound trades, reflecting the 

recovery begun in fiscal year 2010 from the industry’s worst recession in over 60 years. As 

additional vessel capacity was brought back on line, foreign container manufacturers also began 

to produce containers again, after being shut down as a result of the recession. The shortage of 

both vessel capacity and containers in fiscal year 2010 had severely impacted U.S. importers and 

exporters who as a result of the shortage encountered difficulty arranging for shipment of their 

cargo. In addition, shippers frequently faced substantial increases in transportation costs, often 

with little advance warning. Throughout the first three quarters of fiscal year 2011, carriers 

relieved that strain on our transportation system with additional vessels and containers. By the 

end of the fourth quarter of fiscal year 2011, however, carriers began again to scale back vessel 

capacity, stating that existing capacity exceeded demand. At the same time, alarms were 

sounded that soon shippers would again encounter significant container shortages. To more 

closely monitor concerted activity, the Commission in 2010 imposed additional reporting 

requirements on the major outbound and inbound transpacific rate discussion agreements and in 

early 2011 imposed additional reporting requirements on global alliances. The Commission then 

extended the reporting requirements for the transpacific rate discussion agreements through April 

2012. 

The Federal Maritime Commission’s mission is to foster a fair, efficient and reliable 

international ocean transportation system, and to protect the public from unfair and deceptive 

practices. The highlighted actions provide an overview of agency activities in pursuit of its 

mission. Central to all of these actions is recognition of the ever changing economic 

environment and avoiding reoccurrence of capacity issues and shipping difficulties encountered 

during the recovery from the severe maritime industry recession of fiscal year 2009. 

Strategic Goal 1

Maintain an efficient and competitive international ocean transportation system

Competition in U.S. trades helps to foster competitive rates and encourage diverse service 

offerings for the benefit of U.S. exporters and importers, and ultimately consumers. The 

Shipping Act of 1984 grants ocean carriers and marine terminal operators limited antitrust 

immunity for activities pursuant to agreements they file with the Commission. The carriers and 

terminal operators are subject to the FMC’s monitoring of their activities to guard against 

possible abuse of that limited immunity, to avoid unreasonable increases in transportation costs 

or decreases in transportation services, and to guard against other activities prohibited by the 

Shipping Act. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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Fiscal year 2011 was an active year for the Commission, which continued to concentrate on 

facilitating U.S. exporters’ access to foreign markets via ocean transportation, supporting the 

economic recovery, protecting American consumers, encouraging a sustainable ocean 

transportation industry, enhancing safety and security, and monitoring foreign practices to 

protect American jobs. The Commission’s Bureau of Trade Analysis focused on collecting and 

analyzing data for the Commission’s study of the impact of the October 2008 European Union 

repeal of its block competition law exemption for liner conferences. Data analyzed included 

information regarding changes in carrier market structures, competition, services, vessel 

capacity, rates, and surcharges. The Commission also established a dialogue with officials of the 

European Commission (EC), Directorate-General for Competition. 

The Commission increased its monitoring of concerted activities of carriers, particularly in the 

transpacific trades, to ensure that agreement members did not cause unreasonable increases in 

rates or unreasonable reductions in service. In addition, the Commission assessed the impact of 

slow steaming practices in reducing carbon emissions, as well as the question of whether fuel 

costs savings accrued from slow steaming were passed on to the shipping public. 

Supporting U.S. exports and the economic recovery: Following the worst year in the 

maritime industry since the invention of the containership, fiscal year 2010 began with a 

recovery in ocean trade that was stronger than many anticipated. Demand for cargo space and 

containers outstripped supply, and American exporters and importers saw supply chain 

disruptions such as abruptly cancelled bookings, cargo rolled to the next sailing, and successive 

surcharges and price increases. Early in the year 2010, President Obama also announced his 

National Export Initiative to double exports over the next five years, directing agencies "to use 

every available Federal resource" in pursuit of that goal. During fiscal year 2011, exports in 

goods continued to show strong growth, on pace to meet the National Export Initiative’s goal, 

while vessel capacity and container availability met or exceeded demand. 

The FMC conducted an aggressive search for solutions to supply chain problems that threatened 

to impede the growth of exports and the continued recovery. In fiscal year 2010, the 

Commission initiated Fact Finding Investigation No. 26, Vessel Capacity and Equipment 

Availability in the United States Export and Import Liner Trades, with the investigation 

continuing into fiscal year 2011. The fact finding team held more than 170 interviews with a 

wide variety of companies and organizations involved in international ocean shipping, led a 

series of best-practices discussion meetings between shippers and carriers, and began internetbased collaborative efforts to develop solutions to container availability issues. During fiscal 

year 2011, the fact finding officer issued the final report with recommendations. As a result, the 

Commission took several steps to implement the recommendations: 

o Rapid Response Teams: The Commission established ongoing Rapid Response 

Teams to provide prompt solutions for commercial disputes between carriers and 

their customers. Major ocean carriers named high-level liaison officials to work with 

the Rapid Response Teams to cut through red tape and respond to specific shipper 

concerns within 24 hours. The Commission strongly encourages shippers, ocean 

transportation intermediaries, and ocean carriers to contact the Commission’s Rapid 

Response Teams with commercial issues or disputes that need immediate attention. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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o Working Groups: The Commission adopted the recommendation of the fact finding 

officer in Fact Finding 26 to form working groups to increase dialogue between 

shippers and carriers. 

 

o Service Contract Enhancement Project: The Commission also determined to assist 

small U.S. exporters and importers to improve their service contracting practices 

through education and outreach. 

o Increased TSA and WTSA oversight: Throughout fiscal year 2011, the 

Commission closely monitored activities of the rate discussion agreements in the 

United States’ largest trade lane -- the inbound Transpacific Stabilization Agreement 

(TSA) and the outbound Westbound Transpacific Stabilization Agreement (WTSA). 

Verbatim transcripts of agreement meetings were required and reviewed by 

Commission staff. This transcript requirement enabled the Commission to better 

evaluate assertions by many shippers that member carriers were improperly 

discussing issues not authorized by their agreements. 

o Increased carrier alliance oversight: In fiscal year 2011, the Commission increased 

its oversight of global vessel alliances, which have authority to set capacity 

collectively. The Commission required the major alliances to submit minutes of 

certain meetings, monthly capacity reports, and advanced notice of capacity changes. 

Staff reviewed the submissions for potential capacity shortages and to ensure 

compliance with agreement authority.

 

In addition to implementing these recommendations, the Commission has been assisting the U.S. 

Department of Agriculture’s Agricultural Marketing Service with its exporters’ pilot project to 

give more transparency and visibility to the chronic problem of locating empty containers for 

exports. The Agricultural Marketing Service completed its pilot project to show container 

availability at 18 U.S. port and inland locations. Beginning in February 2012, the Agricultural 

Marketing Service plans to collect container availability data from at least ten leading ocean 

carriers, which will assist U.S. exporters in determining container availability each week, along 

with projections two weeks in the future. 

Economic Assistance to Small Businesses: In fiscal year 2011, the Commission approved a 

rule change to conditionally exempt more than 3,300 licensed non-vessel-operating common 

carriers (NVOCCs) from the costs and burdens of publishing in tariffs the rates they charge for 

cargo shipments. Most NVOCCs are small businesses who could see significant savings from 

such exemptions. 

Marine Environmental Committee and Clearinghouse: The FMC has seen environmental 

issues become increasingly central to the agreements and shipping practices it monitors. The 

Commission’s Marine Environmental Committee reviews filings at the agency for best 

environmental practices which can be put forward as models for adoption by other ports and 

companies. The Commission also has created a webpage to serve as an environmental issues 

clearinghouse for information on maritime environmental issues, news, resources, laws and 

regulations, and best practices. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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EU Study: The Commission was actively engaged in gathering and analyzing data for its study 

of the impact of the October 2008 EU repeal of its block competition law exemption for liner 

conferences. Data include information regarding changes in carrier market structures, 

competition, services, vessel capacity, rates and surcharges. A dialogue also was established 

with officials of the European Commission, Directorate-General for Competition. 

Coordination with the International Trade Administration (ITA), U.S. Department of 

Commerce: Commission staff coordinated with the ITA regarding the economic impact of 

shippers’ inability to obtain containers or vessel space for their shipments and to discuss means 

of addressing container availability issues. 

Assessing Container Freight Rate Indices and Derivatives: In fiscal year 2011, the 

Commission began receiving service contracts with rates that adjusted based on container freight 

rate indices, and some players in the industry began engaging in derivative transactions based on 

those indices. In response, the Commission launched a Container Freight Index and Derivatives 

Working Group that studied how index-based contracts and derivatives impact the ocean 

transportation industry and comport with Commission statutes and regulations. 

Strategic Goal 2

Protect the public from unlawful, unfair and deceptive practices and resolve shipping 

disputes

The FMC has a wide variety of responsibilities to protect the public from financial harm, 

including assisting in the resolution of disputes related to the shipment of goods or the carriage 

of passengers, investigating and prosecuting unreasonable or unjust practices, and ruling on 

formal complaints alleging violation of the Shipping Act. The FMC contributes to the integrity 

and security of the nation’s supply chain and transportation system by identifying unlicensed 

operations and licensing only those ocean transportation intermediaries with appropriate 

character and financial responsibility. The FMC also ensures financial coverage of passenger 

vessels to indemnify passengers in the event of non-performance. Pursuant to these regulatory 

responsibilities the Commission undertook a number of significant actions during fiscal year 

2011 to address issues affecting American consumers who ship their personal goods overseas or 

take cruises. 

Household Goods Shipments: The Commission conducted Fact Finding Investigation No. 27, 

Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices Related to the 

Movement of Household Goods or Personal Property in U.S.-Foreign Oceanborne Trades, to 

determine issues that individual consumers have experienced when shipping their personal 

household goods overseas. Each year, the FMC receives a substantial number of complaints 

from individuals who have experienced problems with their international household goods 

shipments. Between 2005 and 2009, the Commission received over 2,500 such consumer 

complaints related to household goods moving companies transporting personal effects and 

vehicles. In fiscal year 2011, the fact finding officer concluded the investigation with a report 

containing a number of recommendations, which were adopted by the Commission, including: 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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o Consumer education: The Commission determined to upgrade its website to better 

assist customers shopping for international shipping options; engage in formal 

cooperation with other governmental agencies that protect consumers moving 

household goods; enhance cooperation with trade associations representing household 

goods movers; develop information for ocean transportation intermediaries to 

distribute to consumers moving household goods; target outreach to local 

communities that regularly ship household goods overseas; and encourage household 

goods movers to link their websites to the FMC’s website for consumer information.

o Industry best practices and model forms: The Commission also voted to work with 

industry groups and consumers to develop a set of best practices and model shipping 

forms that address issues consumers have encountered when shipping household 

goods.

o Licensing issues: As the Commission works to update its licensing regulations, it 

will include recommendations for adjustments that specifically address issues 

affecting household goods shipments. 

o Enforcement: Commission staff worked to enhance joint law enforcement efforts to 

protect consumers and address problem household goods movers. An interagency 

memorandum of understanding (MOU) was negotiated with the Federal Motor 

Carrier Safety Administration (FMCSA) to address household goods issues. The 

Commission also voted to develop enforcement strategies targeted to entities offering 

services related to household goods shipments.

 

o Alternative Dispute Resolution (ADR): The Commission determined to move 

forward with initiatives to better promote its ombuds and other ADR services to assist 

consumers who experience problems when moving their household goods overseas. 

 

Cruise Lines: After considering extensive input from cruise lines, the Commission issued a 

proposed rule to increase protections available to passengers, while reducing the burden of 

Commission coverage requirements on smaller vessel operators. The Commission also worked 

to ensure compensation of passengers affected by the demise of Cruise West, a cruise line which 

had significant sailings from the Pacific Northwest to Alaska. 

Encouraging an efficient, sustainable ocean transportation system: In fiscal year 2010, the 

Commission allowed TSA’s member lines to work together to implement slow steaming and 

other environmental initiatives. Slow steaming, or operating at reduced speeds, allows vessels to 

save fuel, which reduces their emissions and affords substantial cost savings during this period of 

financial stress. In fiscal year 2011, the Commission reviewed the impact of these practices to 

ensure that they do not cause unreasonable constraints on the supply chain, and to determine 

whether fuel cost savings were passed on to shippers. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

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Preventing fraud and enhancing safety and security: The Commission’s Bureau of 

Enforcement and Area Representatives continued their efforts to investigate and prevent 

practices that are unfair and deceptive. The targeted violations included misdescription of cargo, 

which also poses a serious safety and security risk because it could prevent vessel operators and 

port officials from knowing if dangerous goods are being transported on vessels into the United 

States. During 2011, the Commission collected $2.2 million in penalties for such violations. 

 

Monitoring foreign practices to protect American jobs: The Commission also was vigorous 

in carrying out its charge to monitor and prevent practices by foreign governments or entities that 

adversely affect American commerce. Following concerns raised by U.S. shippers, the Chairman 

visited the Shanghai Shipping Exchange (SSE) to seek and obtain assurances regarding 

protections for confidential information of U.S. companies that must be filed with the Exchange. 

The Commission followed up by raising these issues and the concerns of U.S. NVOCCs in 

October 2010, as part of the U.S. delegation to bilateral consultations with the Chinese Ministry 

of Transport under the U.S.-China Maritime Agreement. A reciprocal visit of the SSE to the 

FMC is planned for early fiscal year 2012. The Commission will continue to follow 

developments in China closely to ensure that no unreasonable conditions exist that would impair 

U.S. commerce. 

Dispute Resolution: During fiscal year 2011, 565 complaints were received that necessitated 

the opening of cases to provide dispute resolution services. This was a 33 percent increase over 

the volume of cases in fiscal year 2010 and included 127 passenger complaints about cruise line 

issues, 250 complaints with respect to household goods shipments, and 188 complaints involving 

other cargo shipment matters. 

Participation of the parties in confidential ADR services can provide a means for immediate, 

cost-effective resolution through cooperation between parties. Confidentiality is essential to the 

success of such efforts, especially considering the confidential nature of service contracts. Cargo 

shipment complaints continued to be of increasing complexity. Problems involving ocean 

transportation intermediaries with overextended finances and inability to complete the ocean 

transportation continued to be an issue. In addition, many household goods complaints pertained 

to initial charges quoted vis á vis the actual charges billed, often due to measurement 

discrepancies. 

Enforcement Actions to Address Market Distorting Activities: The Commission concluded a 

compromise agreement with a major Japanese-flag shipping line, resolving alleged violations 

affecting more than 1,000 shipments. Violations included providing transportation services to 

intermediaries that did not have the required tariff, license, or bond; misdescribing cargo on 

shipments; allowing shipment under service contracts by persons who were not parties to those 

contracts; and providing transportation that was not in accordance with the rates and charges set 

forth in published tariffs or a service contract. Two major, formal investigations were concluded 

during fiscal year 2011 when formal settlement agreements were approved in Docket Nos. 10-

09, Sinicway International Logistics Ltd. and 11-04, Worldwide Logistics Co., Ltd. The 

investigation addressed whether certain Shanghai-based NVOCCs utilized intentional 

misdescriptions of commodities as an unfair device or means to obtain ocean transportation at 

less than the rates that would otherwise apply, in violation of section 10(a) of the 1984 Act. The 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

15 

settlement resulted in payment of substantial civil penalties by the NVOCC, and termination of 

alleged violative practices. In conjunction with formal proceedings instituted against an 

unlicensed freight forwarder in FMC Docket No. 11-06 (Indigo Logistics LLC, et al), the 

Commission also sought and obtained a Federal court order enjoining the Indigo Logistics 

defendants from further unlawful activities. 

Technology and Stewardship of Resources: Strategic management of the FMC’s human 

resources, property management, financial and procurement practices and other vital support 

activities is essential to meet the agency’s regulatory and programmatic goals. The FMC realizes 

the need to use new information technology (IT) as a means of improving agency business 

processes and augmenting the accessibility of the public conducting licensing or legal business 

with the agency. In fiscal year 2011, it became apparent that significant systems are outdated 

and need substantial updating and revision to comply with government-wide standards and 

improve efficiency of operations. These systems are critical to the Commission’s ability to carry 

out its mission, especially in an era of increasing demands but declining human resources. After 

reviewing its IT needs, the Commission determined to terminate an existing major IT contract 

and proceed to recompete to meet more defined needs, considering improved technologies. In 

addition, the Commission designed a new performance appraisal system for NON-Senior 

Executive Service (SES) personnel, obtained approval from OPM, provided training to all 

employees, and implemented the new system for the appraisal period beginning September 1, 

2011. The revised system demands greater communication between staff and managers, 

explicitly identifying at least twenty standards of performance for each employee. It was 

developed by an internal taskforce composed of supervisory and non-supervisory personnel, 

equally distributed. 

Fiscal Year 2012 and Beyond

In fiscal years 2012 and 2013, the Commission’s policy and funding priorities will continue to 

center on fostering a viable and vibrant liner shipping environment critical to the nation’s 

international trade and economic growth. Fiscal year 2011 ended with increasing signs that 

diminished capacity and equipment availability may again present difficulties in the transpacific 

trades. Some vessel capacity had already been removed. The Commission will monitor this 

situation closely, with particular emphasis on availability of service to exporters. We will 

emphasize the recently established Ready Response Teams and the Commission’s role as an 

honest broker to resolve those and other issues faced by exporters and importers alike. The 

Commission will complete its review and issue a report on the impact of the October 2008 EU 

repeal of its block exemption for liner conferences. The report will most certainly result in an 

evaluation of current antitrust exemption authority for liner carriers. We will continue to 

evaluate industry OTI practices and their impact on the shipping public. We will use myriad 

tools in order to protect the shipping public, stressing voluntary dispute resolution techniques to 

resolve issues quickly with minimal cost, but vigorously enforcing the Commission’s governing 

statutes and regulations when necessary. In the current climate of budgetary constraints, the 

Commission is mindful of the importance of investing in information technology that can 

improve efficiency and provide greater public access, while reducing costs over time. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

16 

Key objectives for fiscal years 2012 and 2013 include: (1) increase assistance to importers and 

exporters through the Commission’s ARs and CADRS; (2) modernize the Commission’s 

technology to enhance the efficiency of Commission operations; (3) implement the agency’s 

Human Capital Management Plan, particularly with respect to succession planning for the 

departure of highly skilled personnel; (4) increase the use of enhanced dispute resolution 

mechanisms to quickly address industry disputes; (5) continue to refine and enhance agency 

administrative programs and operations, and (6) review and update Commission regulations 

governing OTIs and passenger vessel operators (PVO). 

Overall, the Commission will focus on actions that will facilitate efficient international 

transportation of the nation’s exports and imports, to provide goods to U.S. consumers, while 

enabling the nation’s exporters to compete in global markets. Those actions will include: 

o Continued Availability of Rapid Response Teams: The Commission will continue 

to provide Rapid Response Teams to quickly resolve issues affecting the nation’s 

importers and exporters. These teams have been highly effective, and in a number of 

instances have successfully resolved matters that were affecting the receipt and 

delivery of cargo, without the impact of extensive costs on the parties.

o Continue increased TSA, WTSA and carrier alliance oversight: The requirement 

for verbatim transcripts of TSA and WTSA meetings will continue at least through 

the first half of fiscal year 2012, as will the increased reporting requirement on the 

major alliances. 

 

o International Ocean Transportation Working Group and Intermodal Container 

Availability Working Group: The Commission plans to establish the International 

Ocean Transportation Working Group and the Intermodal Container Availability 

Working Group to develop best practices to facilitate the smooth flow of ocean 

transportation. 

Dispute Resolution: In fiscal years 2012 and 2013, the Commission will further expand 

awareness of its ADR program through education, training and other efforts. We will promote 

and encourage the use of ADR and its various processes as alternatives to more formal litigation 

processes, and encourage service contract dispute resolution clauses that provide for quick, 

effective resolution of disagreements among the parties. Further efforts will be made to increase 

shipping industry awareness of this less adversarial, more cost-effective and time efficient means 

of resolving disputes in a manner that enables the parties to control the outcome. Use of 

mediation, in particular, will be promoted to assist in resolving formal proceedings, service 

contract matters, and other significant disputes. CADRS will continue to make consumer 

protection information available and will expand its outreach with other Federal agencies 

through various websites and media sources. The value of these efforts will be the number of 

consumers that are forewarned and thereby avoid problems. Through this means, assistance may 

be provided to many more consumers than could be possible through post-shipment problem 

resolution. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

17 

Technology Improvements: For fiscal years 2012 and 2013, major technological improvements 

will be explored to (1) develop new Enterprise Document Management technology; (2) adopt 

new cloud computing technology solutions where appropriate; (3) implement Pay.gov to enable 

electronic collections processing using Internet technologies; (4) upgrade the Service Contract 

Filing System (SERVCON) system that receives service contracts, (5) automate much of the 

licensing review process to achieve greater efficiencies; (6) utilize technology for greater 

outreach and communication with the public; and (7) upgrade the FMC Continuity of Operations 

(COOP) site to be a reliable, mirror image of the Commission’s technology infrastructure for 

agency mission-critical applications and technology. 

OHR Work Plans: The Commission will revise and update its Human Capital Plan, Workforce 

Plan, Accountability System, and Succession Management Plan in light of limited fiscal 

resources and a workforce with increasing numbers of skilled staff eligible for retirement. These 

will be accomplished in accordance with the Office of Personnel Management’s (OPM) Human 

Capital Assessment and Accountability Framework and coordinated with OPM, OMB, and the 

Small Agency Human Resources Council on human capital and related initiatives. 

Regulatory Review: We will continue to review Commission regulations to ensure their 

continued relevancy to economic conditions and other factors affecting our trades. This 

systematic review will continue through fiscal years 2012 and 2013. Initial focus of review will 

be proposed changes of Commission regulations governing OTI licensing and Cruise Line 

protection for passengers. In addition, the Commission’s Rules of Practice and Procedure will be 

modified to improve the ability of the public to interact with the Commission and clarify and 

update existing rules. Also, proposed changes to Commission rules will reduce restrictions in the 

case of rate increases in service contracts. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

18 

FMC Mission

To foster a fair, efficient, and reliable international 

ocean transportation system and to protect the public 

from unfair and deceptive practices 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

19 

Program/Office FTE Positions* FTE Positions* FTE Positions* FTE Positions*

Headquarters 118.79 117.00 117.95 123.00 122.60 123.00 3.94% 0.00%

Area Representatives 9.00 9.00 8.57 9.00 9.00 9.00 5.02% 0.00%

Agency Total 127.79 126.00 126.52 132.00 131.60 132.00 4.02% 0.00%

Formal Proceedings

     Office of the Chairman 2.71 2.00 2.38 3.00 3.00 3.00 26.05% 0.00%

     Office of the Commissioners 6.32 7.00 7.33 8.00 8.00 8.00 9.14% 0.00%

     Office of the Secretary 7.54 7.00 6.93 8.00 7.60 8.00 9.67% 0.00%

          Library 1.00 1.00 1.00 1.00 1.00 1.00 0.00% 0.00%

     Office of Consumer Affairs and Dispute Resolution Services 6.27 7.00 7.33 8.00 8.00 8.00 9.14% 0.00%

     Office of the General Counsel 10.98 10.00 10.52 11.00 11.00 11.00 4.56% 0.00%

     Office of Administrative Law Judges 3.00 3.00 3.00 3.00 3.00 3.00 0.00% 0.00%

Formal Proceedings Total 37.82 37.00 38.49 42.00 41.60 42.00 8.08% 0.00%

Office of Equal Employment Opportunity 1.00 1.00 1.00 1.00 1.00 1.00 0.00% 0.00%

Office of the Inspector General 3.00 3.00 3.00 3.00 3.00 3.00 0.00% 0.00%

Operational and Administrative

     Office of the Managing Director 9.12 8.00 8.69 9.00 9.00 9.00 3.57% 0.00%

          Bureau of Trade Analysis

               Office of the Director 4.06 4.00 3.33 3.00 3.00 3.00 ‐9.91% 0.00%

               Office of Service Contracts and Tariffs 5.00 5.00 4.58 5.00 5.00 5.00 9.17% 0.00%

               Office of Economics  and Competition  Analysis 4.15 5.00 6.34 7.00 7.00 7.00 10.41% 0.00%

               Office of Agreements 3.73 3.00 3.36 4.00 4.00 4.00 19.05% 0.00%

          Bureau of Certification and Licensing

               Office of the Director 3.00 3.00 2.33 2.00 2.00 2.00 ‐14.16% 0.00%

               Office of Passenger Vessels and Information Processing 5.96 6.00 6.00 6.00 6.00 6.00 0.00% 0.00%

               Office of Transportation Intermediaries 8.17 8.00 7.82 8.00 8.00 8.00 2.30% 0.00%

          Bureau of Enforcement 10.00 10.00 10.00 10.00 10.00 10.00 0.00% 0.00%

          Area Representatives 9.00 9.00 8.57 9.00 9.00 9.00 5.02% 0.00%

          Office of Information Technology 8.42 9.00 8.01 8.00 8.00 8.00 ‐0.12% 0.00%

          Office of Human Resources 5.00 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

          Office of Budget and Finance 4.97 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

          Office of Management Services 5.39 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

Operational and Administrative Total 85.97 85.00 84.03 86.00 86.00 86.00 2.34% 0.00%

Total FTEs and Positions 127.79 126.00 126.52 132.00 131.60 132.00 4.02% 0.00%

* Denotes positions on September 30.

Actual Estimate Request From FY 12

FTE and Positions by Program

FY 2011 ‐ FY 2013

FY 2011 FY 2012 FY 2013 Percent Difference
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

20 

FY 2011 FY2012 FY2013

Category Actual Estimate Request

     (11.9) Full‐time Permanent Employment 14,066,051.42 $    $   14,167,000.00 $   14,902,000.00

     (11.3) Part‐time and Temporary Employees 85,006.48 $            $           74,000.00 $           60,000.00

     (11.7) Performance Awards $          ‐ 214,175.00 $                         ‐ $                        

     (12.1) Civilian Personnel Benefits $     3,519,647.07 $     3,617,000.00 $     3,978,000.00

Total Personnel Compensation and Benefits 17,884,879.97 $    $   17,858,000.00 $   18,940,000.00

     (21.0) Travel and Transportation of Personnel $         208,289.99 $         240,000.00 $         230,000.00

     (22.0) Transportation of Things (Express Mail) 15,063.21 $            $           22,000.00 $           22,000.00

          (23.1) Rental Payments to GSA 3,124,241.38 $      $     3,190,000.00 $     3,317,000.00

          (23.2) Rental Payments to Others 27,893.06 $            $           30,000.00 $           11,000.00

          (2.35) Telephones (Local, Long Distance, and Cellular) $         267,000.00 $         276,000.00 $         295,000.00

          (28.3) Postage $             5,035.11 $             9,000.00 $           10,000.00

     (24.0) Printing $         136,966.17 $         116,000.00 $         151,000.00

     (25.1) Consulting 92,927.19 $            $         122,000.00 $         135,000.00

     (25.2) Purchase of Goods and Services from Commercial Accounts 733,862.70 $          $         611,000.00 $     1,076,000.00

     (25.3) Purchase of Goods and Services from Government Accounts 1,209,985.56 $      $     1,250,000.00 $     1,413,000.00

     (25.7) Equipment Maintenance 56,970.81 $            $           56,000.00 $           62,000.00

     (26.0) Supplies and Materials $         173,892.04 $         195,000.00 $         221,000.00

     (31.0) Furniture and Equipment (Includes IT Hardware and Software) 124,347.71 $          $         125,000.00 $         117,000.00

Travel and Administrative Expenses 6,176,474.93 $      $     6,242,000.00 $     7,060,000.00

Spending Authority 24,061,354.90 $    $   24,100,000.00 $   26,000,000.00

Obligations by Object Class

FY 2011 ‐ FY 2013

Travel and Administrative Expenses

Personnel Compensation and Benefits

     Rent, Communications and Utilities
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

21 

FY 2011 FY 2012 FY 2013

Actual Estimated Request

$10,582,947.42 $11,003,800.00 $11,582,072.00

$136,771.00 $136,771.00 $137,455.00

$85,006.48 $74,396.00 $60,000.00

$3,346,333.00 $3,026,033.00 $3,182,473.00

$112,309.98 $107,886.36 $113,348.48

     GS‐04 0.00 0.00 0.00

     GS‐05 1.00 2.00 1.00

     GS‐06 0.00 1.00 1.00

     GS‐07 3.00 2.00 3.00

     GS‐08 6.00 6.00 5.00

     GS‐09 0.00 1.00 2.00

     GS‐10 0.00 0.00 0.00

     GS‐11 3.00 1.00 1.00

     GS‐12 21.00 25.00 24.00

     GS‐13 29.00 28.00 28.00

     GS‐14 23.00 26.00 27.00

     GS‐15 23.00 23.00 23.00

12.87 12.79 12.83

     GM‐14 1.00 1.00 1.00

     ES 9.00 9.00 9.00

     AL‐3 2.00 2.00 2.00

     Presidential Appointees (EX) 5.00 5.00 5.00

126.00 132.00 132.00

Average Salary and Grade                                                 

(Excludes Benefit Costs)

FY 2011 ‐ FY 2013

Average Grade (Includes Part‐time and Temporary Employees)

Salaries

Category

     Full‐time Permanent GS

     Full‐time Permanent GM

     Part‐time and Temporary

     Other (Schedule‐C, AL‐3, ES, EX)

Overall Average Salary

Average GS Grade

Total Employees

General Schedule/Schedule‐C Employees
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

22 

Strategic Goal # 1 Strategic Goal # 2

Maintain an

efficient and

competitive

international

ocean

transportation

system

Protect the public

from unlawful,

unfair and

deceptive

practices and

resolve shipping

disputes

Formal Proceedings

     Office of the Chairman $543,063.34 $608,232.13 $150,606.07 $602,424.28 $753,030.35 $209,967.01 $144,798.22

     Office of the Commissioners $1,577,368.10 $1,829,825.67 $392,568.25 $1,570,273.02 $1,962,841.27 $385,473.17 $133,015.60

     Office of the Secretary $1,330,306.15 $1,223,853.71 $249,563.13 $1,058,491.89 $1,308,055.02 ($22,251.13) $84,201.31

          Library $328,729.73 $337,574.16 $142,091.76 $213,137.65 $355,229.41 $26,499.68 $17,655.25

     Office of Consumer Affairs and Dispute Resolution Services $1,083,749.64 $1,199,790.80 $0.00 $1,333,841.12 $1,333,841.12 $250,091.48 $134,050.32

     Office of the General Counsel $2,102,016.33 $2,038,316.90 $1,230,166.91 $970,131.63 $2,200,298.54 $98,282.21 $161,981.64

          Ethics $1,260.65 $0.00 $2,042.55 $1,671.17 $3,713.72 $2,453.07 $3,713.72

     Office of Administrative Law Judges $621,522.16 $626,813.88 $0.00 $667,628.87 $667,628.87 $46,106.71 $40,814.99

Formal Proceedings Total $7,588,016.10 $7,864,407.25 $2,167,038.68 $6,417,599.62 $8,584,638.30 $996,622.20 $720,231.05

Office of Equal Employment Opportunity $198,988.81 $196,915.07 $0.00 $212,193.42 $212,193.42 $13,204.61 $15,278.35

Office of the Inspector General $690,961.18 $727,321.82 $76,412.73 $687,714.60 $764,127.33 $73,166.15 $36,805.51

Operational and Administrative

     Office of the Managing Director $2,004,971.84 $1,842,286.08 $583,560.09 $1,398,342.09 $1,981,902.18 ($23,069.66) $139,616.10

          Bureau of Trade Analysis $2,828,730.91 $3,021,544.36 $1,952,723.32 $1,306,540.58 $3,259,263.90 $430,532.99 $237,719.54

          Bureau of Certification and Licensing $2,550,101.49 $2,431,578.42 $0.00 $2,429,391.57 $2,429,391.57 ($120,709.92) ($2,186.85)

          Bureau of Enforcement $1,853,604.01 $1,868,343.09 $0.00 $1,959,710.63 $1,959,710.63 $106,106.62 $91,367.54

          Area Representatives $1,843,413.52 $1,777,555.99 $0.00 $1,856,094.48 $1,856,094.48 $12,680.96 $78,538.49

          Office of Information Technology $2,211,256.24 $2,104,765.38 $522,112.29 $2,088,449.14 $2,610,561.43 $399,305.19 $505,796.05

          Office of Human Resources $729,597.05 $759,795.33 $156,553.64 $626,214.57 $782,768.21 $53,171.16 $22,972.88

          Office of Budget and Finance $706,334.34 $774,488.43 $159,554.47 $638,217.87 $797,772.34 $91,438.00 $23,283.91

          Office of Management Services $855,379.41 $730,998.78 $152,315.24 $609,260.97 $761,576.21 ($93,803.20) $30,577.43

Operational and Administrative Total $15,583,388.81 $15,311,355.86 $3,526,819.05 $12,912,221.90 $16,439,040.95 $855,652.14 $1,127,685.09

Totals $24,061,354.90 $24,100,000.00 $5,770,270.46 $20,229,729.54 $26,000,000.00 $1,938,645.10 $1,900,000.00

Federal Maritime Commission

Request by Strategic Goal and Program

FY 2013

Program/Office FY 2011 Actual FY 2012 Estimate

FY 2013 Request

FY 2013 Request

Changes Over      

FY 2011 Actual

Changes Over      

FY 2012 Estimate
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

23 

FY 2012 FY 2013 Net

Estimate Request Change

Spending Authority $24,100,000.00 $26,000,000.00 $1,900,000.00

Full‐time Equivalents * 126.52 131.60 5.08

Positions * 132.00 132.00 0.00

Amount

$56,000.00

$513,000.00

$109,000.00

$57,000.00

($14,000.00)

$0.00

$361,000.00

$1,082,000.00

($10,000.00)

$0.00

$127,000.00

($19,000.00)

$19,000.00

$1,000.00

$35,000.00

$13,000.00

$465,000.00

$163,000.00

$6,000.00

$26,000.00

($8,000.00)

$818,000.00

$1,900,000.00

* Includes part‐time and temporary employees.

Summary of Changes

FY 2012 ‐ FY 2013

Category

2013 Estimated Pay Raise  @ .5%

2013 Promotions and WIGs for Eligible Staff

Annualization of 2012 Salaries

     (31.0) Furniture and Equipment (Includes IT Hardware and Software)

     Total Travel and Administrative Expenses

Explanation of Changes:

Total Changes

     (21.1) Travel and Transportation of Personnel

     (25.2) Purchase of Goods and Services from Commercial Accounts

     (25.3) Purchase of Goods and Services from Government Accounts

     (25.7) Equipment Maintenance

     (26.0) Supplies and Materials

Additional Compensable Day

Costs Associated with Employee Benefits

     Total Personnel Compensation and Benefits

Performance Awards

Part‐time and Temporary Employees

          (28.3) Postage

     (24.0) Printing

     (25.1) Consulting

Travel and Administrative Expenses

     Rent, Communications and Utilities

     (22.0) Transportation of Things (Express Mail)

          (23.1) Rental Payments to GSA

          (23.2) Rental Payments to Others

          (23.5) Telephones (Local, Long Distance, and Cellular)
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

24 

Appropriation Language 

For necessary expenses of the Federal Maritime Commission as authorized by section 201(d) of 

the Merchant Marine Act, 1936, as amended (46 U.S.C. 307), including services as authorized by 

5 U.S.C. 3109; hire of passenger motor vehicles as authorized by 31 U.S.C. 1343(b); and 

uniforms or allowances therefore, as authorized by 5 U.S.C. 5901-5902, [$24,100,000] 

$26,000,000: Provided, That not to exceed $2,000 shall be available for official reception and 

representation expenses. (Transportation, Housing and Urban Development, and Related 

Agencies Appropriations Act, 2012.) 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

25 

FMC Fiscal Year 2013 Budget Request by Strategic Goal 

The mission of the Federal Maritime Commission is to foster a fair, efficient and reliable 

international ocean transportation system and to protect the public from unfair and deceptive 

practices. The FMC is responsible for the regulation of oceanborne transportation in the foreign 

commerce of the United States pursuant to the provisions of the Shipping Act. The FMC has 

oversight of certain commercial activities of ocean common carriers, MTOs, ports, and OTIs 

operating in the U.S. foreign commerce. These activities include the filing of agreements, 

licensing of qualified OTIs, and overseeing the financial responsibility of both OTIs and PVOs. 

The FMC’s oversight responsibilities have a direct impact on the financial well-being of every 

American who purchases goods which arrive in the United States through our ports. 

The FMC’s budget is focused on achieving the goals and objectives identified in its strategic 

plan. The FMC’s fiscal year 2013 budget request totals $26,000,000 and funds 131.6 full-time 

equivalents (FTEs). This is an increase of $1,900,000 over the agency’s fiscal year 2012 

appropriation level. 

 Strategic Goal # 1: Maintain an efficient and competitive international ocean transportation 

 system 

 Strategic Goal # 2: Protect the public from unlawful, unfair and deceptive practices and 

 resolve shipping disputes 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

26 

FY 2013 Budget Request by Program

Formal Proceedings IG EEO Operational & Administrative

41.60

3.00

1.00

86.00

FY 2013 FTE Request by Program

Formal Proceedings IG EEO Operational & Administrative
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

27 

 

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operational and Administrative

Unobligated

                                           Budget Authority

                                           Obligations

                                           Outlays*

                                           Outlay Rate (Obligation to Outlay)**

                                           Obligation Rate

Total outlaysforfiscal year 2006 disbursed in fiscal year 2011

Total outlaysforfiscal year 2007 disbursed in fiscal year 2011

Total outlaysforfiscal year 2008 disbursed in fiscal year 2011

Total outlaysforfiscal year 2009 disbursed in fiscal year 2011

Total outlaysforfiscal year 2010 disbursed in fiscal year 2011

Total outlaysforfiscal year 2011

                                           Outlays

* Represents Outlays for FY 2011 only

** Represents the percentage of FY 2011 obligations that were disbursed during FY 2011

$0.00

$0.00

$24,086,730.00 $24,100,000.00 $26,000,000.00

$24,086,730.00 $24,100,000.00 $26,000,000.00

Grosss Outlays for FY 2011

$21,865,587.62 $21,877,980.00 $23,602,800.00

$288,804.02

$25,036,292.71

$270,935.34

$2,610,965.73

$21,865,587.62

$198,988.81 $196,915.00 $212,194.00

$690,961.18 $727,322.00 $764,127.00

$7,588,016.11 $7,864,407.00 $8,584,638.00

Relationship of Obligations to Outlays

FY 2011 ‐ FY 2013

FY 2011             

Actual

FY 2012         

Estimate

FY 2013              

Request

$15,583,388.80 $15,311,356.00 $16,439,041.00

90.78% 90.78% 90.78%

100.00% 100.00% 100.00%

$25,375.10 $0.00 $0.00
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

28 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

29 

Formal Proceedings Program

The Offices of the Commissioners, Secretary, Consumer Affairs and Dispute Resolution 

Services, General Counsel and Administrative Law Judges comprise the Formal Proceedings 

Program. Within this program, the Commission conducts hearings, renders formal decisions in 

the disposition of docketed cases, maintains all official documents arising from proceedings, 

provides an ADR program to facilitate dispute resolutions, and conducts external representation 

activities before the Congress, courts of law, and other agencies. 

 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Chairman 2.71 2.38 3.00

Commissioners 6.32 7.33 8.00

Secretary 7.54 6.93 7.60

     Library 1.00 1.00 1.00

CADRS 6.27 7.33 8.00

General Counsel 10.98 10.52 11.00

Administrative Law Judges 3.00 3.00 3.00

Total FTEs 37.82 38.49 41.60

Cost: Salaries & Benefits $5,773,708.54 $5,966,398.89 $6,546,284.29

Non‐Personnel Expenses $1,814,307.56 $1,898,008.36 $2,038,354.01

Total Cost $7,588,016.10 $7,864,407.25 $8,584,638.30

Federal Maritime Commission

FY 2013 FTE by FMC Strategic Goal

Formal Proceedings

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

30.60

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

10.00

Strategic Goal 1

$2,167,038.68

FY 2013 Cost by FMC Strategic Goal

Strategic Goal 2

$6,417,599.62
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

30 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

31 

Office of the Chairman

The Chairman of the Commission is designated by the President of the United States and serves 

as the agency's Chief Executive and Administrative Officer. As a result, the Chairman has 

exclusive authority over agency personnel matters, organization and supervision, distribution of 

business and use of funds for administrative purposes.

Throughout fiscal year 2011, the Chairman sought to make the Commission more nimble and 

responsive to the millions of Americans who work in or rely on international trade and 

transportation. The Chairman recognized work accomplished and staff contributions during the 

Commission's fifty year history. Through the past five decades, the Commission has adapted to, 

and evolved with, the dramatic changes in international ocean transportation, while continually 

playing a crucial role in protecting America’s ocean commerce. 

 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Chairman 2.71 2.38 3.00

Cost: Salaries & Benefits $414,411.25 $443,350.65 $566,861.66

Non‐Personnel Expenses $128,652.09 $164,881.48 $186,168.69

Total Cost $543,063.34 $608,232.13 $753,030.35

$150,606.07

FY 2013 Cost by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

Strategic Goal 2

$602,424.28

Strategic Goal 1

Federal Maritime Commission

Formal Proceedings

Office of the Chairman

FY 2013 FTE by FMC Strategic Goal

1.60

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

0.40
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

32 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

33 

Office of the Commissioners

The Chairman and four Commissioners are responsible for making decisions and determinations 

in the disposition of docketed cases, and ensuring the efficient, equitable and expeditious 

resolution of all matters arising under statutes administered by the Commission. The 

Commission promulgates rules and regulations and issues decisions which interpret, enforce and 

assure compliance with the 1984 Act, as amended by OSRA, the 1920 Act, FSPA, and Sections 

2 and 3 of P. L. 89-777 (46 U.S.C. §§ 44102 and 44103). 

In 2011, the Commission implemented two significant initiatives into major areas of concern 

affecting shipping industry consumers. Fact Finding Investigation No. 26, Vessel Capacity and 

Equipment Availability in the United States Export and Import Liner Trades, led by 

Commissioner Dye, was initiated to determine then existing conditions and practices in the U.S. 

liner trades and impediments to U.S. oceanborne imports and exports. A final report and 

recommendations for action by the Commission were accepted at the December 8, 2010 

Commission meeting. Activities conducted under Fact Finding 26 as well as actions adopted by 

the Commission also support President Obama’s directive to use Federal resources to increase 

U.S. exports over the next five years. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Commissioners 6.32 7.33 8.00

Cost: Salaries & Benefits $1,227,265.09 $1,422,905.33 $1,565,749.34

Non‐Personnel Expenses $350,103.01 $406,920.34 $397,091.93

Total Cost $1,577,368.10 $1,829,825.67 $1,962,841.27

Strategic Goal 1

FY 2013 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of the Commissioners

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.40

Strategic Goal 2

$1,570,273.02

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.60

$392,568.25
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

34 

Fact Finding No. 27, Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices 

Related to the Movement of Household Goods or Personal Property in U.S.-Foreign Oceanborne 

Trades, led by Commissioner Khouri, sought to develop a record of the nature, scope and 

frequency of potentially unlawful, unfair or deceptive ocean transportation practices by 

household goods movers. This investigation will further the Commission's Strategic Goal to 

protect the public from unlawful, unfair or deceptive ocean transportation practices and resolve 

shipping disputes. A final report with recommendations for the Commission was unanimously 

approved at its May 11, 2011 meeting. Subsequently, staff teams were assigned to follow up on 

each motion. Substantial activity has taken place, including initial meetings and discussions with 

industry members, commencing development of best practices and model documents, enhancing 

community outreach, and strengthening relationships with other governmental entities involved 

in the transportation of household goods. The teams collectively provided the Commission with 

a progress report on September 30, 2011. 

Also during the fiscal year ending September 30, 2011, the Commission issued 86 orders and 

notices in docketed proceedings. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

35 

Office of the Secretary (OS)

The Office of the Secretary (OS) serves as the focal point for matters submitted to and emanating 

from the Commission. It is the public’s main contact point with the FMC. The Office receives 

and processes a variety of documents filed by the public, including: formal and informal 

complaints initiating adjudicatory proceedings for alleged violations of the shipping statutes and 

other applicable laws; special docket applications and requests to correct clerical or 

administrative errors in service contracts or NVOCC Service Agreements (NSAs); all 

communications, petitions, notices, pleadings, briefs, or other legal instruments in administrative 

proceedings; and subpoenas served on the FMC, its members, or employees. 

The Office is responsible for organizing Commission Sunshine Act meetings, oral arguments and 

public hearings; preparing and submitting regular and notation agenda matters for consideration 

by the Commission, and preparing and maintaining the minutes of actions taken by the 

Commission on these matters; issuing orders and notices of actions of the Commission; 

maintaining official files and records of all formal proceedings and Commission regulations; 

maintaining historical Commission decisions; issuing publications; and authenticating 

instruments and documents of the Commission. The Office also responds to information 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Secretary 7.54 6.93 7.60

Cost: Salaries & Benefits $1,005,473.11 $919,119.44 $980,507.58

Non‐Personnel Expenses $324,833.04 $304,734.27 $327,547.44

Total Cost $1,330,306.15 $1,223,853.71 $1,308,055.02

Strategic Goal 1

$249,563.13

FY 2013 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of the Secretary

FY 2013 FTE by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.15

Strategic Goal 2

$1,058,491.89

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

1.45
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

36 

requests from Commission staff, the maritime industry, press, and the public; processes and 

administers the Freedom of Information, Government in the Sunshine, and Privacy Acts. The 

Office also maintains a public reference/law library and a Docket Activity Library; oversees the 

maintenance, organization, and content of the Commission’s Internet website; develops, 

monitors, and reports on the agency’s Strategic Plan; develops and implements the agency’s 

Plain Writing Plan; manages the agency’s document scanning program; and participates in the 

development and coordination of agency-wide public relations/education strategies and 

initiatives. 

During fiscal year 2011, the OS continued to administratively process and direct all filings 

addressed to the Commission and its component offices, including agreements filed under 

section 5 of the 1984 Act. The Office also issued 86 orders and notices in docketed proceedings 

on behalf of the Commission. 

The Office serves as the Commission’s public information/press office. Accordingly, it prepares 

or coordinates the preparation of Commission news releases; responds to public and press 

inquiries or directs inquiries to the appropriate Commission bureau/office; and monitors the trade 

press for matters of agency interest for referral to the Chairman, Commissioners and staff. 

During fiscal year 2011, the Secretary served as the agency’s Performance Improvement Officer 

(PIO), and helped implement revisions to the 2010-2015 Strategic Plan. These revisions 

streamlined the Commission’s plan to focus more clearly on mission oriented goals. The impact 

of potential budgetary reductions on the agency’s ability to achieve annual performance targets 

was assessed by the PIO. While some reductions and shifts in contractor and staff resources 

occurred during the fiscal year, the Commission was able to meet its fiscal year 2011 

performance targets. 

The Office is significantly involved with the Commission’s ongoing objective to enhance public 

awareness of the agency. The Office promotes transparency and accountability on behalf of the 

Commission by evaluating, developing and implementing improvements to the Commission’s 

website. During fiscal year 2011, the Office increased the amount of information available on 

specific topics and agency related issues. The Office worked with other Commission 

components and other agencies to provide information on such hot topics as moving personal 

household goods, cruise passenger information, passenger vessel financial responsibility, U.S. 

export and import capacity issues, China’s new shipping policies, maritime environmental issues, 

and Negotiated Rate Agreement guidance. These informative online resources provide easy 

public access to useful information and resources, increase public awareness of how the FMC is 

involved with daily events and help to underscore our mission to oversee oceanborne 

transportation in the foreign commerce of the U.S. 

In late fiscal year 2011, the Office began working with an outside vendor to redesign the 

Commission’s website. This will include a new graphic design and layout for the Homepage and 

interior pages, significantly improve content organization to render a more citizen-centered 

website, enhanced navigation, more social networking/communications capabilities, and further 

improvements in search engine optimization to improve public visibility of the Commission’s 

website and services. During the latter part of fiscal year 2011, the Office developed and 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

37 

implemented the Commission’s Plain Writing Plan, trained key Commission staff in best 

practices for plain writing and lead an agency-wide team to begin systematic review and 

enhancement of website content. These efforts will continue during fiscal year 2012. 

The process of electronically scanning/imaging Commission records is an ongoing function of 

the Office. The Office electronically converts all official Commission files (both current and 

historical); and is responsible for planning, scheduling and systematically scanning documents 

for other agency components. This Document Management Program helps support the agency’s 

initiatives for COOP by: improving preservation of, and staff access to Commission documents, 

improving staff response time to public inquiries, and providing direct public access to electronic 

files. As a result of its scanning program, the Office continued to make key documents filed in 

formal proceedings available through its website. 

During the fiscal year, the Office continued to electronically compile contents of 28 bound 

volumes of historical Commission decisions issued between the years 1919 and 1987 into 

“electronic volumes.” It is anticipated that these electronic volumes will be completed and ready 

for posting to the Commission’s website during late fiscal year 2012. These historical decisions 

are no longer in publication in bound volume form, however with the completion of this project, 

the entire body of historical Commission decisions will be available on the FMC website. 

Making this information readily available to the public in electronic form has proven to be a 

useful and cost effective resource, especially for attorneys practicing before the Commission. 

During fiscal year 2011, the Office also completed scanning of FMC Annual Reports from 1917 

to 1999, and they are now available to the public via the FMC website. 

During fiscal years 2012 and 2013, the Office will work to develop an electronic, searchable 

database for the Commission’s historical Informal Docket proceedings. The database will 

provide a more efficient research tool for historical cases and decisions related to informal 

docket proceedings filed with the Commission. The database will initially be available to staff 

attorneys, settlement officers, and the Office of Administrative Law Judges. 

In support of the Commission’s strategic goal to protect the public from unlawful, unfair and 

deceptive ocean transportation practices and resolve shipping disputes, during fiscal year 2011 

the Office led an agency-wide team to begin the process of reviewing the Commission’s Rules of 

Practice and Procedure. Emphasis is on evaluating the Commission’s procedures against current 

Federal Rules of Civil Procedure and updating procedures where appropriate. A final rule was 

published in February 2011 which relieved some filing burdens on the public and parties to 

Commission proceedings, reduced the Commission’s reliance on paper submissions, and 

enhanced privacy protections for the public. The team continued to meet and further develop 

revised rules for the Commission’s consideration during the fiscal year 2012. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

38 

Library

The OS also oversees the Commission’s Library. The Library serves the research and 

information needs of staff, and is a specialized repository of current and basic materials primarily 

covering the shipping industry, the history of shipping, and regulations covering all phases of 

shipping in the U.S. foreign trade. It contains a variety of books, directories, encyclopedias, 

journals, magazines, reports, microforms, videos, law encyclopedias, legal treatises, legislative 

materials, and selected titles of the National Reporter system. The Library also contains material 

on several related fields such as engineering, economics, political science, and a collection of 

legal publications. The Library’s holdings consist of approximately 8,700 volumes and 

numerous microfiches, CD-ROMs, and on-line services. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Library 1.00 1.00 1.00

Cost: Salaries & Benefits $110,150.86 $110,621.04 $114,984.39

Non‐Personnel Expenses $218,578.87 $226,953.12 $240,245.02

Total Cost $328,729.73 $337,574.16 $355,229.41

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

0.60

Strategic Goal 2

$213,137.65

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.40

Federal Maritime Commission

Formal Proceedings

Library

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$142,091.76

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

39 

Office of Consumer Affairs and Dispute Resolution Services (CADRS)

CADRS is responsible for developing and implementing the Commission's ADR program. 

Through this program, the Commission provides services to assist parties in resolving shipping 

disputes. The Office provides a range of services designed to avoid the expense and delay 

inherent in litigation, and to facilitate the flow of U.S. ocean commerce. With respect to matters 

already in litigation, or moving toward litigation, parties to disputes are encouraged to avail 

themselves of mediation or other ADR processes to resolve their disputes. The Commission 

makes trained neutrals available to facilitate resolution at all stages. Outside neutrals also may 

be employed as needed. During fiscal year 2011, Commission mediators provided services in a 

number of matters, especially assisting parties in overcoming obstacles to delivery of transported 

goods. 

CADRS also provides ombuds services to participants in ocean shipping transactions. Typical 

complaints include situations in which an NVOCC or vessel-operating common carrier (VOCC) 

has placed a hold on cargo in its possession, often for sums owed under a different contract of 

carriage. Other cases occur when an NVOCC has received cargo from its customer and taken 

payment for the transportation of the cargo, but failed to deliver the cargo. Urgent resolution may 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: CADRS 6.27 7.33 8.00

Cost: Salaries & Benefits $863,944.75 $958,995.86 $1,053,989.77

Non‐Personnel Expenses $219,804.89 $240,794.94 $279,851.35

Total Cost $1,083,749.64 $1,199,790.80 $1,333,841.12

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

8.00

Strategic Goal 2

$1,333,841.12

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Federal Maritime Commission

Formal Proceedings

Office of Consumer Affairs and Dispute Resolution Services

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$0.00

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

40 

facilitate delivery of shipments to avoid the accrual of additional demurrage/detention/storage 

charges. With respect to household goods shipments, consumers often use unlicensed entities 

that demand additional payment and/or abandon the goods and refuse to communicate with the 

consumer. Tracking the whereabouts of a shipment can be difficult, and often additional charges 

have accrued, necessitating payment of additional funds to obtain release of the shipment. 

CADRS also receives a significant number of complaints involving issues with cruise lines. 

Another function of CADRS includes the adjudication of small claims through informal 

proceedings under 46 Code of Federal Regulations (CFR) Part 502, Subpart S. Office personnel 

serve as Settlement Officers in such cases, which involve complainants seeking reparations up to 

$50,000 for violations of the shipping statutes. Those claims generally involve alleged prohibited 

acts in connection with the international transportation of goods, or the failure to establish, 

observe, and enforce just and reasonable regulations and practices. 

During fiscal year 2011, 565 complaints were received that necessitated the opening of cases to 

provide dispute resolution services. These included 127 passenger complaints about cruise line 

issues, 250 complaints with respect to household goods shipments, and 188 complaints involving 

other cargo shipment matters. Cargo shipment complaints continued to be of increasing 

complexity. Problems involving ocean transportation intermediaries with overextended finances 

and inability to complete the ocean transportation continued to be an issue. In addition, many 

household goods complaints pertained to initial charges quoted vis á vis the actual charges billed, 

often due to measurement discrepancies. 

The Commission concluded and issued a report of Fact Finding Investigation No. 26 regarding 

current conditions and practices in the U.S. liner trades, and into potential impediments to the 

flow of oceanborne import and export trades. This inquiry generated a number of complaints 

and concerns from both the import and export communities. CADRS has been involved in 

seeking resolution to individual concerns regarding booking cancellations, and equipment and 

space limitations. The Fact Finding resulted in the formation of the “Rapid Response” program. 

Twenty ocean carriers have designated contacts to respond within 24 hours to CADRS inquiries 

and issues raised by shippers regarding transportation services to better facilitate the resolution 

of problems. CADRS involvement in resolving service contract issues also has been promoted 

to further facilitate more responsive transportation services. 

CADRS has also participated in the Commission’s Fact Finding Investigation No. 27 involving 

the review of potentially unlawful, unfair, or deceitful practices of the international shipment of 

household goods by water. A final report was issued which included many proposals for 

improvements with regard to the education of the public and the regulation of entities providing 

transportation services of household goods and package services. Complaints to CADRS were 

the basis for initiating the matter and CADRS is necessarily involved in efforts to resolve further 

disputes and to educate the public and industry with regard to appropriate practices and 

activities. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

41 

In fiscal years 2012 and 2013, CADRS intends to further expand awareness of the ADR program 

through education internally and externally, training and other outreach efforts. CADRS 

promotes and encourages the use of ADR and its various processes as alternatives to more 

formal litigation processes. Further efforts will be made to increase shipping industry awareness 

of this less adversarial, more cost-effective and time efficient means of resolving disputes in a 

manner that enables the parties to control the outcome. Use of mediation, in particular, will be 

promoted to assist in resolving formal proceedings, service contract matters, and other significant 

disputes. CADRS will continue to make consumer protection information available and will 

expand its outreach with other Federal agencies through various websites and media sources. The 

value of these efforts will be the number of consumers that are forewarned and thereby avoid 

problems. Through this means, assistance may be provided to more consumers than could be 

possible through post-shipment problem resolution. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

42 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

43 

Office of the General Counsel (OGC)

The OGC provides legal counsel to the Commission. This includes reviewing staff 

recommendations for Commission action for legal sufficiency, drafting proposed rules to 

implement Commission policies, and preparing final decisions, orders, and regulations for 

Commission review. In addition, the OGC provides written and oral legal opinions to the 

Commission, its staff, and the general public in appropriate cases. As described in more detail 

below, the OGC also represents the Commission before the courts and Congress and administers 

the Commission’s international affairs program. 

Rulemaking and Decisions 

The following are rulemakings and adjudications representative of matters prepared by the OGC: 

(a) Rulemakings 

NVOCC Negotiated Rate Arrangements [Docket No. 10-03], 31 S.R.R. 1724 (March 2, 2011) 

A notice of proposed rulemaking was published in the Federal Register on May 7, 2010. 75 FR 

25150, Commission Docket 10-03. A public meeting was requested and held on May 24, 2010. 

Written comments were received through June 4, 2010. The final rule was posted on the 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: General Counsel 10.98 10.52 11.00

Cost: Salaries & Benefits $1,659,616.88 $1,613,912.46 $1,742,324.43

Non‐Personnel Expenses $442,399.45 $424,404.44 $457,974.11

Total Cost $2,102,016.33 $2,038,316.90 $2,200,298.54

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.85

Strategic Goal 2

$970,131.63

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

6.15

Federal Maritime Commission

Formal Proceedings

Offie of the General Counsel

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$1,230,166.91

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

44 

Commission’s website on February 25, 2011 and published in the Federal Register on March 2, 

2011. On April 8, 2011, the Commission published a correction to the final rule in the Federal 

Register. The correction clarified that a negotiated rate agreement (NRA) could be agreed to on 

the day of receipt of the cargo and also eliminated the requirement that NVOCCs indicate on 

their Form FMC-1 that they were moving cargo pursuant to an NRA. The final rule became 

effective on April 18, 2011. 

The regulation allows licensed NVOCCs to enter into NRAs with their shipper customers. An 

NRA is defined as “a written and binding arrangement between a shipper and an eligible 

NVOCC to provide particular transportation service for a particular shipment at a particular rate 

prior to the receipt of the cargo by the common carrier or its agent (including originating carriers 

in the case of rates for through transportation).” The regulation exempts licensed NVOCCs who 

enter into NRAs from the following requirements of the Shipping Act: the requirement in 

Section 8(a), codified at 46 U.S.C. §§ 40501(a)-(c) that each common carrier keep open to public 

inspection in an automated tariff system tariffs showing all its rates; Section 8(b), codified at 46 

U.S.C. § 40501(d)(time volume rates); Section 8(d), codified at 46 U.S.C. § 40501(e) (tariff rate 

increase may not be effective on less than 30 days' notice but decrease effective immediately); 

Section 8(e), codified at 46 U.S.C. § 40503 (carrier application to grant refunds); and Section 

10(b)(2)(A)'s requirement of adhering to the published tariff rate, codified at 46 U.S.C. § 

41104(2)(A). Licensed NVOCCs entering into NRAs must still comply with the prohibitions 

contained in Section 10(b)(4) of the Shipping Act, codified at 46 U.S.C. § 41104(4)(prohibiting 

common carriers from unfair or unjustly discriminatory practices in service pursuant to a tariff), 

and Section 10(b)(8), codified at 46 U.S.C. § 41104(8)(prohibiting common carriers from undue 

or unreasonable preference or advantage or undue or unreasonable prejudice or disadvantage for 

tariff service). The Commission determined not to extend the ability to enter into NRAs to 

foreign-based NVOCCs who are unlicensed but bonded pursuant to 46 C.F.R. § 515.21(a)(3) but 

intends to issue a Notice of Inquiry requesting further information on ways to make the tariff 

filing exemption provided to licensed NVOCCS in 46 C.F.R. Part 532 more useful, including its 

possible extension to foreign-based NVOCCS not licensed by the Commission.

(b) Decisions 

EuroUSA Shipping, Inc., Tober Group, Inc., and Container Innovations, Inc. – Possible 

Violations of Section 10 of the Shipping Act of 1984 and the Commission’s Regulations at 46 

C.F.R. § 515.27 [Docket No. 06-06], 31 S.R.R. 1131 (January 7, 2010) 

This proceeding was instituted by Order of Investigation and Hearing served May 11, 2006, to 

determine whether respondents violated section 10(b)(11) of the Shipping Act and the 

Commission’s regulations at 46 C.F.R. § 515.27, by knowingly and willfully accepting cargo 

from or transporting cargo for the account of an OTI that did not have a tariff and bond as 

required by sections 8 and 19 of the Act. With regard to EuroUSA, the Administrative Law 

Judge (ALJ) approved a Settlement Agreement between EuroUSA and the BOE on October 9, 

2009. With regard to Tober Group (Tober), the ALJ issued an Initial Decision (ID) in which he 

concluded that BOE did not prove that the unlicensed intermediaries with whom Tober did 

business operated as NVOCCs, and therefore Tober did not violate section 10(b)(11) of the 

Shipping Act. The ALJ also concluded that Tober violated section 10(b)(2)(A) of the Act by 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

45 

providing service in the liner trade that was not in accordance with the rates and charges in its 

published tariff, but did not assess a penalty for these violations. BOE filed exceptions to the 

ALJ’s ID, and the Commission’s decision is pending. Finally, with regard to Container 

Innovations, the ALJ concluded that it violated section 10(b)(11) and should be subject to a civil 

penalty of $390,000 for 13 knowing and willful violations of the Shipping Act. The ALJ’s 

decision regarding Container Innovations became administratively final on January 7, 2010. 

The case is currently pending before the Commission. The date for issuance of the 

Commission’s final decision has been extended to February 29, 2012.

Parks International Shipping Inc., Cargo Express International Shipping Inc., et al. – 

Possible Violations of Sections 8(a) of the Shipping Act and the Commission’s Regulations at 

46 C.F.R., Parts 515 and 520 [Docket No. 06-09], 31 S.R.R. 1166 (February 5, 2010) 

This proceeding was instituted by Order of Investigation and Hearing served September 19, 

2006, to determine whether respondents violated sections 8(a) and 19 of the Shipping Act and 

the Commission’s regulations at 46 C.F.R. Part 520 and 46 C.F.R. Part 515. On February 5, 

2010, the Administrative Law Judge issued an Initial Decision finding that on twelve shipments, 

Parks International Shipping, Inc. violated section 8(a) by operating as a common carrier without 

publishing tariffs showing all of its active rates and charges, and violated section 19 by operating 

as an ocean transportation intermediary without obtaining a license from the Commission and 

without providing proof of financial responsibility. The ALJ also found that on fourteen 

shipments, Cargo Express International Shipping, Inc. violated section 8(a) by operating as a 

common carrier without publishing tariffs showing all of its active rates and charges and violated 

section 19 by operating as an ocean transportation intermediary without obtaining a license and 

without providing proof of financial responsibility. The ALJ imposed civil penalties on both of 

these parties, and ordered them to cease and desist from violating the Shipping Act. The ALJ 

dismissed Bronx Barrels & Shipping Supplies Shipping Center, Inc. and Ainsley Lewis a.k.a. 

Jim Parks from the proceeding. On April 6, 2010, the Commission filed a notice indicating its 

intention to review the ALJ’s Initial Decision. The case is currently pending before the 

Commission. The deadline for issuance of the Commission’s final decision has been extended to 

February 29, 2012. 

 

Anderson International Transport and Owen Anderson – Possible Violations of Sections 8(a) 

and 19 of the Shipping Act [Docket No. 07-02], 31 S.R.R. 1232 (February 23, 2010) 

 

This proceeding was instituted by Order of Investigation and Hearing served March 22, 2007, to 

investigate whether respondents violated sections 8, 19(a), and 19(b) of the Shipping Act and the 

Commission’s regulations at 46 C.F.R. Part 515 and Part 520. On August 28, 2009, the 

Administrative Law Judge issued an Initial Decision finding that respondents violated section 

19(a) of the Shipping Act by operating as an ocean transportation intermediary without obtaining 

a license, and also violated section 19(b) by operating as an ocean transportation intermediary 

without providing proof of financial responsibility. The ALJ ordered respondents to cease and 

desist from violating the Shipping Act. The ALJ did not impose a penalty, finding that the 

Bureau of Enforcement failed to introduce evidence regarding respondents’ ability to pay a civil 

penalty. On December 8, 2009, the Bureau of Enforcement filed a petition to reopen the 

proceeding for the purpose of taking further evidence regarding respondents’ ability to pay. The 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

46 

Commission granted this request and remanded the case to the ALJ for further consideration. On 

February 23, 2010, the ALJ issued an order on remand imposing a penalty on respondents. On 

March 9, 2010, the Commission filed a notice to review the ALJ’s decision, and on March 15, 

2010, the Bureau of Enforcement filed exceptions to the ALJ’s decision. The case is currently 

pending before the Commission. The deadline for issuance of the Commission’s final decision 

has been extended to February 29, 2012. 

Litigation

The General Counsel represents the Commission in litigation before courts and other 

administrative agencies. Although the litigation work largely consists of representing the 

Commission upon petitions for review of its orders filed with the U.S. Courts of Appeals, the 

General Counsel also participates in actions for injunctions, enforcement of Commission orders, 

actions to collect civil penalties, and other cases where the Commission’s interest may be 

affected by litigation. 

The following is representative of matters litigated by the Office: 

Federal Maritime Commission v. Indigo Logistics, LLC; Liliya Ivanenko; and Leonid 

Ivanenko, U.S. District Court for the Northern District of Georgia, Case No. 1:11-cv-01134-

TCB 

On April 8, 2011, the Commission filed a Complaint and Motion for a Preliminary Injunction 

against Indigo Logistics, LLC; Liliya Ivanenko; and Leonid Ivanenko (Defendants) in U.S. 

District Court for the Northern District of Georgia requesting that the court enjoin Defendants 

from violating the Shipping Act by acting as an ocean freight forwarder without a Commission 

license and without providing proof of financial responsibility. In connection with a 

Commission investigation, the Commission is authorized by 46 U.S.C. § 41307 to bring a civil 

action to enjoin conduct in violation of the Shipping Act. Any injunction brought under this 

section remains in effect for a period not to exceed 10 days after the Commission has issued an 

order disposing of the issues under investigation. The basis for the Commission’s injunction is 

Docket No. 11-06, Indigo Logistics, LLC; Liliya Ivanenko; and Leonid Ivanenko – Possible 

violations of Section 19 of the Shipping Act of 1984 and the Commission’s regulations at 46 

C.F.R. Part 515. The Order initiating Docket 11-06 alleges that Indigo Logistics, LLC has been 

providing services as an ocean freight forwarder since at least 2008 without a license issued by 

the Commission and without furnishing evidence of financial responsibility to the Commission. 

On April 15, 2011, an order was issued granting the Commission’s motion for a preliminary 

injunction. The order provides that Defendants, their agents, servants, employees, and attorneys, 

and those in active concert or participation with them, are restrained and enjoined from violating 

46 U.S.C. §§ 40901(a) and 40902(a) by acting and operating as an ocean transportation 

intermediary without a valid Commission ocean freight forwarder license and without furnishing 

a bond, proof of insurance or other surety in the amount of $50,000. On October 20, 2011, the 

Administrative Law Judge assigned to Docket 11-06 approved a settlement agreement between 

the Commission’s Bureau of Enforcement and the Defendants. On December 2, 2011, the 

Commission issued a notice not to review the Administrative Law Judge’s decision and, in 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

47 

accordance with the settlement agreement, also issued a cease and desist order barring 

Defendants from acting as an ocean transportation intermediary, or as an agent of an ocean 

transportation intermediary, for a period of five years. On December 6, 2011, the District Court 

dissolved the preliminary injunction. 

Federal Maritime Commission v. All-In-One Shipping, Inc., et al., U.S. District Court for the 

Southern District of Florida, Case No. 06-60054 

On January 12, 2006, the Commission filed a Complaint for Injunctive Relief with the U.S. 

District Court for the Southern District of Florida to enjoin four household goods moving 

companies and three individuals from operating as NVOCCs in violation of the Shipping Act of 

1984 by accepting cargo for transportation, and for advertising for or soliciting cargo while 

operating as an ocean transportation intermediary without a valid license, bond or other security 

on file with the Commission. The District Court issued the requested preliminary injunction by 

order dated January 17, 2006. Specifically, the companies and individuals that are named and 

subject to the injunction are: All-In-One Shipping, Inc.; Around The World Shipping, Inc.; 

Boston Logistics Corp.; Global Direct Shipping; Daniel Cuadrado; Elizabeth F. Hudson; Joshua 

Morales. Injunctive relief remains in force pending conclusion of agency enforcement 

proceedings in FMC Docket No. 06-01. 

 

On August 16, 2010, the ALJ issued an Initial Decision in Docket No. 06-01 finding violations 

of the Shipping Act and imposing civil penalties on the corporate and individual parties. No 

parties filed exceptions to the Initial Decision. The Commission determined to review the Initial 

Decision, and its final decision is pending. 

Legislative Activities

The OGC represents the Commission’s interests in all matters before Congress. This includes 

preparing testimony for Commission officials, responding to Congressional requests for 

information, commenting on proposed legislation, and responding to the OMB requests for views 

on proposed bills and testimony.

During fiscal year 2011, 105 bills, proposals, and congressional inquiries were referred to the 

OGC for review or comment. OGC prepared and coordinated testimony for the agency’s fiscal 

year 2012 budget authorization hearing held before the U.S. House of Representatives’ 

Committee on Transportation and Infrastructure’s Subcommittee on Coast Guard and Maritime 

Transportation. In addition, OGC helped prepare two nominees for confirmation hearings before 

the Senate Committee on Commerce, Science and Transportation. On April 14, 2011, the Senate 

confirmed those nominees. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

48 

In fiscal years 2012 and 2013, OGC will continue to lead in providing assistance and technical 

advice to Congress regarding issues for possible legislative consideration. The Office may also 

recommend legislative amendments as necessary to ensure uniformity with other Federal 

initiatives to promote efficient and secure flow of ocean transportation. 

Foreign Shipping Restrictions and International Affairs

The OGC is responsible for the administration of the Commission's international affairs program. 

The OGC monitors potentially restrictive foreign shipping laws and practices, and makes 

recommendations to the Commission for investigating and addressing such practices. The 

Commission has the authority to address restrictive foreign shipping practices under section 19 

of the 1920 Act and the Foreign Shipping Practices Act. Section 19 empowers the Commission 

to make rules and regulations governing shipping in the foreign trade to adjust or meet 

conditions unfavorable to shipping. The FSPA directs the Commission to address adverse 

conditions that affect U.S. carriers in foreign trade and that do not exist for foreign carriers in the 

U.S. 

In fiscal year 2011, the Commission continued to monitor potentially restrictive shipping 

practices of the Government of Japan, including the effects of amendments to the Port 

Transportation Business Law enacted in 2000 and 2005. On January 26, 2011, the Commission 

discontinued its proceeding and semi-annual reporting requirements from United States-flag and 

Japanese-flag vessels operating in the trades with Japan in Docket No. 96-20, Port Restrictions 

and Requirements in the United States/Japan Trade. 

The OGC also pursued informally several matters that involved potentially restrictive foreign 

practices including new legislation, new interpretations of existing legislation, new regulations of 

non-domestic carriers’ terminal handling charges and implementation by the People’s Republic 

of China of new requirements on carriers to file tariff and service contract rates with a quasigovernmental entity and for that entity to establish a freight index based upon information 

received. OGC served as a technical advisor to the U.S. delegation regarding rate filing at the 

quasi-governmental entity and related issues at the 4th U.S. - People’s Republic of China 

Consultations on the Maritime Bilateral Agreement held in Dalian, China in October 2010. The 

OGC also presented at a maritime experts group workshop relating to guidelines for the 

regulation of non-ratemaking agreements among vessel-operating common carriers for the 

purpose of discussion on behalf of the United States’ delegation at the Asian-Pacific Economic 

Cooperation meeting of the Maritime Experts Group at the Transportation Working Group 

meeting in Japan in October 2010. 

Another responsibility of the OGC is the classification of controlled carriers subject to section 9 

of the Shipping Act. Common carriers that are owned or controlled by foreign governments are 

required to adhere to certain requirements under the Act, and their rates are subject to 

Commission review. The OGC investigates and makes appropriate recommendations to the 

Commission regarding the status of potential controlled carriers. The OGC, in conjunction with 

other Commission components, also monitors the activities of controlled carriers. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

49 

The OGC continues to take the lead in accomplishing the agency's performance goals relating to 

eliminating restrictions that unjustly disadvantage U.S. interests. OGC monitors foreign laws 

and practices to determine whether there are any unjust non-market barriers to trade. Where 

appropriate, the OGC will recommend Commission action. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

50 

Designated Agency Ethics Official

The Ethics Official is designated by the Chairman and located in the OGC. The position is 

performed as a collateral duty by the attorney designated as Ethics Official. 

The Commission’s Ethics Official is responsible for administering public and confidential 

financial disclosure systems in order to prevent conflicts of interest from arising in the execution 

of the agency’s regulatory functions. The Ethics Official also conducts annual training and 

offers day-to-day advice and guidance to ensure compliance with the standards of ethical 

conduct that apply to Executive Branch officials. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Ethics 0.00 0.00 0.00

Cost: Salaries & Benefits $0.00 $0.00 $0.00

Non‐Personnel Expenses $1,260.65 $0.00 $3,713.72

Total Cost $1,260.65 $0.00 $3,713.72

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Formal Proceedings

Ethics

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

0.00

Strategic Goal 2

$1,671.17

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$2,042.55
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

51 

Office of Administrative Law Judges (OALJ)

OALJ regulates the course of proceedings, conducts hearings, approves settlements, and renders 

decisions in adjudicatory proceedings held after receipt of a private complaint or when instituted 

by the Commission. ALJs have authority to administer oaths and affirmations; issue subpoenas; 

rule upon motions and offers of proof; receive evidence; authorize depositions; regulate the 

course of hearings; hold pre-hearing conferences for the settlement or simplification of the issues 

involved; refer matters to mediation when appropriate; dispose of procedural requests; act as 

Settlement Judges in particular cases; and take any other action authorized by agency rule or the 

Administrative Procedure Act. 

The case load of the Office is governed by the number of complaints and applications filed, the 

number of formal proceedings instituted by the Commission on its own motion, and other 

matters assigned in furtherance of the Commission's regulatory functions. Proceedings that 

come before the Office include, but are not limited to, the adjudication of discriminatory or 

unfair and unreasonable practices between various parties subject to the shipping acts, and 

adjudication of shipper complaints. ALJs also can process special docket applications on an asneeded basis. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Administrative Law Judges 3.00 3.00 3.00

Cost: Salaries & Benefits $492,846.60 $497,494.11 $521,867.12

Non‐Personnel Expenses $128,675.56 $129,319.77 $145,761.75

Total Cost $621,522.16 $626,813.88 $667,628.87

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

3.00

Strategic Goal 2

$667,628.87

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Federal Maritime Commission

Formal Proceedings

Office of Administrative Law Judges

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$0.00

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

52 

At the beginning of fiscal year 2011, thirteen formal proceedings were counted as pending (on 

hand) before OALJ (07-01, 08-03, 08-04, 08-06, 09-01, 09-08, 10-01, 10-05, 10-06, 10-07, 10-

09, 1896(F), and 1898(F)). During the year, twelve new formal proceedings were added (10-10, 

10-11, 11-04, 11-06, 11-07, 11-08, 11-11, 11-12, 11-13, 11-14, 11-15, and 1923(F)) and one 

formal proceeding was remanded pursuant to Commission Rule (08-04). 

OALJ issued initial decisions or orders subject to review by the Commission in twelve 

proceedings: Initial decisions resolving three contested proceedings (08-04, 1896(F), and 

1898(F)); initial decisions approving settlements in four proceedings (10-01, 10-09, 10-10 (two 

initial decisions approving two settlements), and 11-04); issued orders of voluntary dismissal of 

claims against respondents in two proceedings (10-07 (three respondents) and 10-10 (one 

respondent)); an order granting partial summary judgment for respondent in one proceeding (08-

03); an order granting summary judgment for respondent in one proceeding (10-07); an initial 

decision on attorney’s fees in one proceeding (08-04); an order granting a motion for leave to 

appeal an interlocutory order denying a motion to dismiss based on sovereign immunity in one 

proceeding (09-08); an order dismissing a claim for double damages in one proceeding (10-06); 

and an order dismissing a counterclaim in one proceeding (11-07). 

During fiscal years 2012 and 2013, the Office will conduct hearings and render decisions on 

adjudicatory proceedings and on such rulemaking proceedings as may be referred to the Office. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

53 

Equal Employment Opportunity Program (EEO) 

The Federal Maritime Commission Office of EEO follows Federal EEO and personnel 

management laws, concepts, procedures and regulations to develop, implement and manage a 

comprehensive program of equal employment opportunity. The program is statutorily mandated 

with required activities in complaints processing, adjudication, affirmative employment program 

planning, workforce diversity management, special emphasis programs, community outreach, 

monitoring and evaluation. 

The Chairman of the Federal Maritime Commission is responsible for ensuring equal opportunity 

in the Commission. The Chairman has delegated this authority to the Director of Equal 

Employment Opportunity. Operational responsibility for compliance with EEO policies and 

programs lies with the Commission's front line managers. The Director of EEO (DEEO) works 

independently under the direction of the Chairman to provide advice to the Commission's senior 

staff and management in improving and carrying out its policies and programs of nondiscrimination, workforce diversity and affirmative employment planning. The DEEO arranges 

for EEO counseling or ADR for employees who raise allegations of discrimination; provides for 

the investigation, hearing, fact-finding, adjustment, or early resolution of such complaints of 

discrimination; accepts or rejects formal complaints of discrimination; prepares and issues 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters 1.00 1.00 1.00

Cost: Salaries & Benefits $158,383.63 $152,859.72 $154,927.81

Non‐Personnel Expenses $40,605.18 $44,055.35 $57,265.61

Total Cost $198,988.81 $196,915.07 $212,193.42

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.00

Strategic Goal 2

$212,193.42

FY 2013 Cost by FMC Strategic Goal

Federal Maritime Commission

Equal Employment Opportunity Program

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

54 

decisions for resolution of formal complaints; and monitors and evaluates the program’s impact 

and effectiveness. In addition, the DEEO represents the agency on several intergovernmental 

committees, coordinates all affirmative program planning efforts, directs programs of special 

emphasis, and coordinates the activities of the Selective Placement and Federal Equal 

Opportunity Recruitment Coordinators. The DEEO also supervises two collaterally-assigned 

EEO counselors. 

The Office works closely with senior management and OHR to: (1) monitor affirmative 

employment programs; (2) expand outreach and recruitment initiatives; (3) improve the 

representation, career development and retention of women, minorities and persons with 

disabilities; (4) provide adequate career counseling; (5) facilitate early resolution of 

employment-related problems; and (6) develop program plans and progress reports. 

Significant accomplishments include the following: (1) provided “No FEAR Act” (Notification 

and Federal Employees Antidiscrimination and Retaliation Act of 2002) training for all current 

employees; (2) provided EEO and non-EEO related guidance to Commissioners, managers, 

supervisors and employees in addressing issues that arose; (3) collaborated with managers and 

supervisors in striving to maintain and effectively manage a diverse workforce; (4) continued to 

administer an effective EEO complaint process that strives to attempt resolution of issues 

informally through collaborative ADR techniques at the lowest possible level; (5) held 

commemorative programs for all FMC employees for National Black History Month and 

Hispanic Heritage Month and while also recognizing National Women’s History Month, Native 

American Indian Heritage Month, National Disability Awareness Month, and Gay and Lesbian 

Pride Month through electronic announcement; (6) conducted monthly Brown Bag Diversity 

sessions featuring guest speakers, educational documentaries, and round table discussion on 

various EEO and diversity related subject matter; (7) prepared all required EEO and Affirmative 

Employment Program accomplishment reports and plans; (8) collaborated with the Equal 

Employment Opportunity Commission (EEOC) management staff to discuss more effective 

approaches for meeting the Management Directive 715 (MD-715) goals and objectives; and (9) 

continued to administer the EEO process in support of the FMC goal of achieving and 

maintaining a model work environment in accordance with Federal EEO policy and affirmative 

employment goals and objectives. 

During fiscal years 2012 and 2013, the Office of EEO will continue all existing programs and 

initiate additional activities designed to increase an understanding of EEO concepts and 

principles, including monitoring workforce diversity, outreach, retention, career development 

initiatives, updating current status of barrier analysis goals and objectives as part of MD-715 

requirements, and continue to provide interactive Brown Bag Diversity sessions for all interested 

FMC employees. MD-715 is the policy guidance which the Equal Employment Opportunity 

Commission provides to Federal agencies for their use in establishing and maintaining effective 

programs of equal employment opportunity under Section 717 of the Civil Rights Act of 1964 

(Title VII), as amended, 42 U.S.C. 2000e et seq., and Section 501 of the Rehabilitation Act of 

1973 (Rehabilitation Act), as amended, 29 U.S.C. 791 et seq. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

55 

Inspector General Program (OIG)

The OIG operates pursuant to the Inspector General Act of 1978 (1978 Act) (5 U.S.C. App. § 3), 

as amended in 1988, and by the Inspector General Reform Act of 2008 (Reform Act) ( 5 U.S.C. 

app. § 8G). The 1988 amendments created additional statutory Offices of Inspector General at 

various designated Federal entities, including the FMC. The Reform Act further enhanced the 

independence of Office of Inspectors General by adding Inspector General (IG) compensation, 

staffing and removal provisions. 

The purpose of the 1978 Act, as amended, and as applicable to the FMC, is to create an 

independent and objective unit to conduct audits; review operations and programs; investigate 

possible fraud, waste and mismanagement of resources; and promote economy, efficiency and 

effectiveness in programs and operations administered by the FMC. 

The OIG is staffed by an IG, an Assistant Inspector General for Audit and an OIG Counsel / 

Chief Investigator. 

The IG works independently under the general supervision of the FMC Commissioners. The IG 

does not report to, and is not subject to supervision by, any other employee of the FMC. The 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Inspector General 3.00 3.00 3.00

Cost: Salaries & Benefits $488,987.73 $496,067.70 $531,726.74

Non‐Personnel Expenses $201,973.45 $231,254.12 $232,400.59

Total Cost $690,961.18 $727,321.82 $764,127.33

Maintain an efficient and competitive international

ocean transportation system

0.30

Strategic Goal 1

$76,412.73

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

2.70

Strategic Goal 2

$687,714.60

FY 2013 Cost by FMC Strategic Goal

Federal Maritime Commission

Inspector General Program

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

56 

OIG has Memorandums of Understanding with the Office of Inspector General at the U.S. Social 

Security Administration for investigative assistance and the Federal Trade Commission for audit 

quality assurance support. In addition, the Office utilizes the expertise of private sector 

accountants and information security analysts to assist in performing specialized audits and 

reviews. 

During fiscal year 2011, the OIG issued an audit of the FMC’s fiscal year 2010 Financial 

Statements and a companion report to management on financial-related findings and 

recommendations resulting from the audit. The OIG also issued an evaluation of information 

security pursuant to the Federal Information Security Management Act (FISMA), a review of 

agency implementation of the Privacy Act, an evaluation of informal docket processing in the 

Office of Consumer Affairs and Dispute Resolution Services and a review of the agency’s 

financial responsibility (bond) program in the Bureau of Certification and Licensing. The OIG 

also began fieldwork on the fiscal year 2011 financial statement audit and the annual information 

security evaluation pursuant to FISMA. 

The OIG investigations unit received 59 complaints in fiscal year 2011. The OIG responded to 

31 of the complaints and forwarded 23 complaints to the appropriate FMC program area for 

disposition. Five complaints were forwarded to other agency OIGs or programs with jurisdiction 

over the subject matter of the complaint. The OIG opened no new investigations and referred no 

matters to prosecutorial authorities during this period. 

In addition to these audit and investigative activities and outcomes, the OIG performed a peer 

review of the audit operations at another Federal OIG. OIG also began meetings with House and 

Senate staff with jurisdiction over the FMC to establish new relationships and maintain existing 

ones and continued to respond to consumers victimized by an internet scam operation using 

FMC indicia, assisted another Federal OIG to select financial statement auditors and FISMA 

evaluators, worked with the agency’s OGC to develop coordination guidelines for investigation 

of ethics matters and to amend two Commission Orders dealing with OIG activities, and 

consulted with the agency about its proposed actions in response to an employee who alleged a 

privacy breach. Also, during the reporting period, in accordance with the Inspector General 

Reform Act, the OIG provided legal services, on a reimbursable basis, to both the Architect of 

the Capitol OIG and the United States Capitol Police OIG, pursuant to a Memorandum of 

Understanding. 

The OIG responded to an OIG community-wide request for information from the Chairman of 

the House Committee on Oversight and Government Reform, regarding open (unimplemented) 

OIG recommendations, and a request from the Government Accountability Office pertaining to 

OIG independence and effectiveness. The OIG Counsel/Chief Investigator participated in an 

OIG-community working group to develop and present training on IG legal authorities, which 

was sponsored by the Council of Inspectors General on Integrity and Efficiency (CIGIE) 

Training Institute to provide training to OIG attorneys to address the unique legal needs of the 

OIG community. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

57 

OIG staff participated in several activities associated with the CIGIE, including actively serving 

on the (1) Legislation Committee where OIG staff reviewed and commented on several 

legislative initiatives affecting the OIG community; and (2) Integrity Committee, which reviews 

allegations of administrative (non-criminal) misconduct against inspectors general and 

designated senior staff members of the OIG. 

During fiscal years 2012 and 2013, the OIG will continue to place a high priority on audits and 

reviews with the objective of improving agency programs and operations. The OIG will 

complete statutorily-required reviews to include separate audits of the FMC’s 2012 and 2013 

Financial Statements and an evaluation of the agency’s information security program and privacy 

assurance controls, as required by the FISMA, continue site visits to FMC area offices to better 

understand regulatory and program issues and concerns from a field office perspective and 

continue to focus on reviews of FMC mission-based programs. 

The OIG will continue to actively participate in IG community activities and maintain 

membership in the CIGIE, the Council of Counsels to Inspectors General (CCIG) and the 

Federal Audit Executive Council (FAEC). The OIG will continue to work with the OMB, 

CIGIE, CCIG and FAEC on joint projects which affect the IG community. The Office will also 

continue to keep the Chairman, Commissioners, OMB and the Congress fully informed 

regarding its audit and investigative activities. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

58 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

59 

Operational and Administrative Program

 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Managing Director 9.12 8.69 9.00

Bureau of Trade Analysis 16.94 17.61 19.00

Bureau of Certification and Licensing 17.13 16.15 16.00

Bureau of Enforcement 10.00 10.00 10.00

Area Representatives 9.00 8.57 9.00

Office of Information Technology 8.42 8.01 8.00

Office of Human Resources 5.00 5.00 5.00

Office of Budget and Finance 4.97 5.00 5.00

Office of Management Services 5.39 5.00 5.00

Total FTEs 85.97 84.03 86.00

Cost: Salaries & Benefits $11,464,742.19 $11,242,673.69 $11,707,061.16

Non‐Personnel Expenses $4,118,646.62 $4,068,682.17 $4,731,979.79

Total Cost $15,583,388.81 $15,311,355.86 $16,439,040.95

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

68.35

Strategic Goal 2

$12,912,221.90

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

17.65

Federal Maritime Commission

Operational and Administrative

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$3,526,819.05

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

60 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

61 

Office of the Managing Director (OMD)

As the Commission’s Chief Operating Officer, the Managing Director (MD) is responsible for 

the management, direction and coordination of the Commission’s operating programs and 

administrative functions. The following agency components report directly to the Managing 

Director: Bureau of Certification and Licensing, Bureau of Enforcement, Bureau of Trade 

Analysis, ARs, Office of Budget and Finance, Office of Human Resources, Office of 

Information Technology, and Office of Management Services. The Managing Director also 

provides administrative direction to the Offices of the General Counsel, Secretary, CADRS and 

ALJ. OMD now also has responsibility for the Commission’s strategic plan; the agency’s PIO is 

located within the office. The MD works closely with the Chairman and the PIO to develop the 

Commission’s strategic plan.

 

The Managing Director also serves as the agency’s Chief Financial Officer, Chief Acquisition 

Officer, Senior Agency Official for Privacy, Audit Follow-up and Management (Internal) 

Controls Official, Forms Control Officer, and acts as the Commission’s representative to the 

Small Agency Council (SAC). The Deputy Managing Director is the Commission’s 

Competition Advocate. The Director of Field Investigations (DFI) is also located within OMD. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Managing Director 9.12 8.69 9.00

Cost: Salaries & Benefits $1,448,173.84 $1,329,083.05 $1,397,006.36

Non‐Personnel Expenses $556,798.00 $513,203.03 $584,895.82

Total Cost $2,004,971.84 $1,842,286.08 $1,981,902.18

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.35

Strategic Goal 2

$1,398,342.09

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

2.65

Federal Maritime Commission

Operational and Administrative

Office of the Managing Director

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

$583,560.09

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

62 

The OMD oversees activities of the ARs and the DFI provides oversight, coordination, direction 

and monitoring of Commission investigative activities. The latter responsibility includes 

extensive coordination among ARs and the Bureau of Enforcement, determining investigative 

priorities and goals and directly supervising all investigative cases. 

In managing the day-to-day operations of the Commission, the OMD provides direction and 

coordination among Commission administrative and program components to assure synergism 

and cohesive efforts to achieve the Commission’s strategic goals. The OMD initiates 

recommendations for long-range plans, new or revised policies and standards, and rules and 

regulations, while issuing internal directives to Commission staff. 

During fiscal year 2011, the OMD coordinated with CADRS to explain compliance with reduced 

tariff publication requirements and implement Rapid Response Teams to quickly resolve 

shipping problems. 

OMD staff participated directly in Fact Finding Investigation No. 27, Potentially Unlawful, 

Unfair or Deceptive Ocean Transportation Practices Related to the Movement of Household 

Goods or Personal Property in U.S.-Foreign Oceanborne Trades, and OMD developed plans for 

implementation of the report’s recommendations. The MD approved civil penalty compromises 

in a number of cases and established a system of Managing Directives to guide staff operations. 

Also, the OMD established an Information Technology Advisory Board and initiated an 

assessment of the agency’s IT program. The assessment was deemed necessary after reduced 

funding impeded the development of efforts to improve efficiency through the use of information 

technologies. The Chief information Officer (CIO), OIT and the Commission’s operating 

programs will work closely together to plan IT initiatives. 

The OMD’s key objectives for fiscal years 2012 and 2013 include: (1) increasing the impact and 

availability of ARs in providing assistance to importers and exporters; (2) exploring ways to 

modernize technology with limited funds to enhance the efficiency of Commission operations; 

(3) implementing the agency’s Human Capital Management Plan, particularly with respect to 

succession planning for the departure of highly skilled personnel; (4) increasing utilization of 

enhanced dispute resolution mechanisms to quickly address industry disputes; (5) continuing to 

refine and enhance agency administrative programs and operations, and (6) reviewing and 

updating Commission regulations governing OTIs and PVOs. 

The MD will continue to provide leadership to all Commission programs and activities, directing 

Commission staff in accomplishing the agency’s strategic goals using the appropriated funds. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

63 

Area Representatives (ARs)

The Commission’s ARs represent the FMC in their respective areas. The Commission maintains 

a presence in Los Angeles, South Florida, New Orleans, New York, Houston and Seattle through 

ARs based in each of those cities. These representatives also serve other major port cities and 

transportation centers within their respective areas. In representing the Commission, ARs 

resolve complaints and disputes between parties involved in international oceanborne shipping 

(often coordinating with CADRS), investigate alleged violations of the shipping statutes, act as 

liaisons to the shipping public, provide information to the maritime industry, and function as an 

intelligence resource to Commission headquarters. They provide advice and guidance to the 

shipping public, collect and analyze information of regulatory significance, and assess industry 

conditions. The ARs frequently cooperate and coordinate with other governmental agencies and 

departments, including Federal, state and local, providing regulatory information and relaying 

Commission policy. The ARs inform the public about Commission requirements and services 

through activities such as seminars, participating in various conferences and trade shows, making 

presentations, and through various local community contacts. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Area Representatives 9.00 8.57 9.00

Cost: Salaries & Benefits $1,332,059.63 $1,300,373.08 $1,377,409.25

Non‐Personnel Expenses $511,353.89 $477,182.91 $478,685.23

Total Cost $1,843,413.52 $1,777,555.99 $1,856,094.48

Federal Maritime Commission

Operational and Administrative

Area Representatives

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

9.00

Strategic Goal 2

$1,856,094.48

FY 2013 Cost by FMC Strategic Goal
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

64 

In fiscal year 2011, hundreds of informal complaints were handled by the ARs. These 

complaints often involved unlawful activity. Where possible, compliance with statutory and 

regulatory requirements was achieved informally. In other instances, investigative cases were 

opened and the ARs conducted thorough investigations to determine the extent of unlawful 

activity. The ARs conducted a large number of investigations in 2011 of unlawful shipping 

practices, including unlicensed OTI activities, misdescription of commodities by shippers, and 

improper service contract rate application by ocean carriers. The investigative actions by the 

ARs led to the development of several enforcement cases that were referred to the Bureau of 

Enforcement and resulted in civil penalties. Investigative activity by the ARs assists the FMC in 

ensuring fair competition by all participants in the trades to and from the United States. 

The ARs were instrumental in the publication of public service announcements (PSAs) for each 

major port area in fiscal year 2011, warning consumers against the use of unlicensed OTIs. The 

ARs identified appropriate local publications, including those that would reach various ethnic 

communities that have been particularly vulnerable to fraudulent activity by unlicensed entities. 

The PSAs resulted in numerous inquiries and reports to the ARs regarding improper activity by 

both licensed and unlicensed OTIs, and appear to have helped educate consumers to be more 

alert to unlawful operators, saving many from potential losses. 

During fiscal year 2011, the ARs made a number of presentations to interested industry 

audiences in their areas, explaining OTI licensing requirements and compliance with the new 

NRA tariff rate exemption. ARs also worked closely with a number of law enforcement 

agencies, including local jurisdictions such as the New York City Police Department, New 

Jersey State Police, and Houston Police Department, as well as Federal agencies, including the 

Federal Bureau of Investigation (FBI) in South Florida. In addition, the South Florida ARs 

provided valuable expertise and assistance to the Export-Import Bank of the United States (ExIm Bank) to facilitate the investigation by Ex-Im Bank’s IG Office of several cases of fraud 

against the U.S. government. 

The ARs participated in taskforces and initiatives sponsored by local law enforcement agencies, 

the U.S. Department of Justice, the Department of Homeland Security including U.S. Customs 

and Border Patrol (CBP) and Immigration and Customs Enforcement (ICE), the Department of 

Commerce (DOC) and the FMCSA. This assistance and sharing of information contributed to 

the investigation of a wide range of unlawful activities. 

ARs provided valuable assistance in Fact Finding Investigation No. 27, Potentially Unlawful, 

Unfair or Deceptive Ocean Transportation Practices Related to the Movement of Household 

Goods or Personal Property in U.S.-Foreign Oceanborne Trades. In the FF No. 27 proceedings, 

ARs assisted the Fact Finding Officer in arranging for the appearance of impacted witnesses, 

answered inquiries from shipping industry participants, and provided advice and suggestions 

through the Managing Director with respect to the conduct of the proceedings. The ARs have 

also been actively involved in carrying out the recommendations of FF No. 27 by reaching out to 

the public, consumer groups, trade associations, and other government agencies in efforts to 

achieve regulatory compliance and protection for the shippers of household goods and personal 

effects. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

65 

In fiscal years 2012 and 2013, the ARs will continue to function in several key roles for the FMC 

by representing the agency, conducting liaison and activities to educate and assist the shipping 

public, facilitating the resolution of informal complaints and disputes, and investigating unlawful 

practices by carriers, OTIs and shippers. All of these activities by the ARs contribute to the 

FMC’s objectives of ensuring that ocean transportation in the foreign trades of the United States 

is characterized by fair competition and the free flow of cargo. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

66 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

67 

Bureau of Trade Analysis (BTA)

BTA reviews agreements and monitors the concerted activities of ocean common carriers and 

marine terminal operators under the standards of the Shipping Act of 1984. The Bureau also 

reviews and analyzes service contracts, monitors rates of government-owned and controlled 

carriers, reviews carrier published tariff systems under the accessibility and accuracy standards 

of the Shipping Act of 1984 and responds to inquiries or issues that arise concerning service 

contracts or tariffs. The Bureau also is responsible for competition oversight and market analysis, 

focusing on activity that is substantially anti-competitive under the standards of sections of 6(g) 

of the Shipping Act of 1984. BTA strives to be an expert organization on the economics of 

international liner shipping and maritime agreements, especially with respect to issues of 

competition and unfair trade practices as they may affect the interests of the shipping public and 

U.S. international trade according to the Foreign Shipping Practices Act of 1988 and Section 19 

of the Merchant Marine Act. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Director 4.06 3.33 3.00

OSCT 5.00 4.58 5.00

OECA 4.15 6.34 7.00

Agreements 3.73 3.36 4.00

Total FTEs 16.94 17.61 19.00

Cost: Salaries & Benefits $2,145,511.05 $2,287,402.98 $2,470,109.29

Non‐Personnel Expenses $683,219.86 $734,141.38 $789,154.61

Total Cost $2,828,730.91 $3,021,544.36 $3,259,263.90

Federal Maritime Commission

Operational and Administrative

Bureau of Trade Analysis

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

8.60

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

10.40

Strategic Goal 1

$1,952,723.32

FY 2013 Cost by FMC Strategic Goal

Strategic Goal 2

$1,306,540.58
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

68 

As part of these responsibilities, BTA plans, develops, and conducts the following activities: 

(1) monitoring general trade conditions and economic developments in liner shipping; 

(2) overseeing individual and concerted carrier and MTO activity; (3) developing economic 

studies and analyses in support of the Commission's regulatory responsibilities; (4) processing 

and analyzing carrier and marine terminal agreements; (5) providing expert economic testimony 

and support in formal proceedings, particularly regarding unfair foreign shipping practices; 

(6) processing, reviewing, and monitoring confidential service contracts and amendments (filed 

by ocean common carriers, conferences, and agreements), and NSAs; (7) reviewing requests to 

correct clerical or administrative errors in service contracts; (8) ensuring that statements of 

certain essential terms associated with service contracts are published in tariffs and made 

available to the public; (9) auditing tariff publishing systems to ensure that tariffs are accessible 

and accurate; (10) processing FMC-1 registration forms submitted by carriers and conferences 

and posting and updating the location of carrier tariffs on the Commission’s website; (11) acting 

on special permission applications to deviate from tariff publishing rules; (12) monitoring the 

activities of state-controlled carriers; and (13) supporting other Commission components with 

regard to the Commission’s regulatory requirements. 

The three operating offices under the supervision of the Bureau Director are: the Office of 

Service Contracts and Tariffs (OSCT), the Office of Economics and Competition Analysis 

(OECA), and the Office of Agreements (OAGR). 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Director 4.06 3.33 3.00

Cost: Salaries & Benefits $637,438.02 $499,363.09 $467,102.28

Non‐Personnel Expenses $683,219.86 $734,141.38 $789,154.61

Total Cost $1,320,657.88 $1,233,504.47 $1,256,256.89

Strategic Goal 1

$837,504.59

Strategic Goal 2

$418,752.30

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of the Director

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

2.00
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

69 

Office of Service Contracts and Tariffs

OSCT oversees the process by which service contracts between shippers and carriers are filed 

with the Commission. Under service contracts, shippers make a commitment to provide a certain 

volume or portion of cargo over a fixed period of time, and carriers commit to a specified rate 

and a defined service level. These confidential contracts are filed with the Commission in the 

automated SERVCON system. Beginning in January 2005, the Commission permitted NVOCCs 

to enter into NSAs with their shipper customers. NSAs also are filed in the SERVCON system. 

Additionally, OSCT is responsible for maintaining an up-to-date electronic listing of tariff 

locations where carriers publish their publicly-available rules and rates for cargo carriage. 

During fiscal year 2011, there were 49,103 service contracts and 467,169 contract amendments 

filed into the SERVCON system. OSCT also processed 1,264 original NSAs and 3,460 

amendments filed by 83 NVOCCs. In fiscal year 2011, OSCT received, processed and reviewed 

1,399 Form FMC-1 filings, making the locations of those tariffs available to the public through 

the FMC website. At the end of the fiscal year, OSCT had posted 5,043 active/current tariff 

locations to the agency’s website. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: OSCT 5.00 4.58 5.00

Cost: Salaries & Benefits $566,515.58 $511,567.06 $526,461.21

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $566,515.58 $511,567.06 $526,461.21

Strategic Goal 1

$105,292.24

Strategic Goal 2

$421,168.97

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Service Contracts and Tariffs (OSCT)

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.00
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

70 

The Commission implemented 46 C.F.R. Part 532 – NVOCC Negotiated Rate Arrangements on 

April 18, 2011 which allows NVOCCs to “opt out” of having to file rate tariffs so long as they 

use NRAs exclusively. NVOCCs are required to keep NRAs, which must be memorialized in 

writing, for a period of five years. Additionally, NVOCCs are required to maintain rules tariffs 

which must be made available free of charge. It is expected that many NVOCCs will take 

advantage of this opportunity, thereby significantly reducing the number of rate tariffs that will 

have to be checked to ensure compliance with all applicable regulations. 

Despite releasing NVOCCs from the requirement to make available rate tariff locations through 

the Commission if they use NRAs only, OSCT does not predict a significant decrease in its work 

load through 2012 and 2013. NVOCCs will be required to publish, and OSCT will need to 

verify, the rules tariffs that will continue to be required under FMC regulations. Further, the 

continued entrance and exit of various OTIs to and from the market will require follow-up on the 

part of OSCT staff to ensure an accurate listing of tariff publication locations on the 

Commission’s website. 

Office of Economics and Competition Analysis

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: OECA 4.15 6.34 7.00

Cost: Salaries & Benefits $534,934.76 $903,003.98 $1,025,765.99

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $534,934.76 $903,003.98 $1,025,765.99

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Economics and Competition Analysis (OECA)

FY 2013 FTE by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.80

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

5.20

Strategic Goal 1

$761,997.59

Strategic Goal 2

$263,768.40

OECA analyzes and oversees the competitive impact of agreements on file at the Commission to 

ensure that the activities of the agreement parties remain in compliance with the U.S. shipping 

statutes and regulations, and advises the Commission on such economic matters accordingly. In 

this regard, OECA reviews agreement monitoring reports, prepares economic analyses, studies 

and profiles on agreements, carriers and market conditions, and conducts special projects to 

identify and track relevant competitive and economic activity in the U.S. liner trades. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

71 

In addition, OECA receives and reviews minutes of agreement meetings and reports filed by 

parties to agreements that are classified as potentially anti-competitive, such as agreements that 

contain authority to discuss and agree on rates, service contracts, the pooling of cargo or revenue, 

and/or capacity rationalization. During the fiscal year, OECA received 797 sets of minutes, 365 

monitoring reports and related reports, 104 voluntary service contract guidelines, and 3 

applications for waivers to the minutes and/or monitoring report filing requirements.

In fiscal year 2011, OECA administered its agreement oversight responsibilities regarding ocean 

common carriers and marine terminal operators and prepared various reports and analyses. 

These included: (1) assisting in the preparation of Commission Orders for special reporting 

requirements from strategic discussion and alliance agreements in connection with FMC Fact 

Finding Investigation No. 26, Vessel Capacity and Equipment Availability in the United States 

Export and Import Liner Trades; (2) reviewing and monitoring the compliance of special reports 

submitted by agreements subject to the Commission's Orders; (3) providing presentations and 

reports to the Commission on the activities of the agreement parties subject to the Orders for 

special reports; (4) providing a memorandum and presentation to the Commission on whether to 

extend the special reporting from parties to certain discussion agreements past the initial deadline 

of the Commission's Order; (5) preparing a Notice of Inquiry (NOI) to invite public comments 

on the impact of slow steaming vessels by carriers in the U.S. liner trades and a memorandum to 

the Commission on the responses; (6) completing an NOI to invite public comments on the 

repeal by the EU of its block exemption regulations for liner conferences and a memorandum to 

the Commission on the responses; (7) completing a draft report on the Bureau's study of the 

repeal of the EU block exemption regulations, A Study of the 2008 Repeal of the Liner 

Conference Exemption from European Union Competition Law; (8) providing presentations to 

the Commission on the proposed increase in the fees of the PierPASS program under the West 

Coast MTO Agreement and participating in a public forum on the issue; (9) preparing any 

necessary competitive impact analyses, along with requests for additional information, of new 

agreement filings and amendments to agreements, including the Port of NY/NJ - Port 

Authority/Marine Terminal Operators Agreement to implement of a RFID system at the marine 

terminal facilities and an amendment to the Consolidated Chassis Management Pool Agreement

to restructure the chassis pool operations of the parties; (10) conducting research for, and 

providing a presentation to, the Commission on the formulation and use of certain container 

freight indices; (11) providing the Commission with data and information on the extent of the 

diversion of U.S. container cargo through Canadian ports; (12) updating and expanding the BTA 

intranet website with trade and agreement profiles and other relevant information; (13) assisting 

with the computer programming of the SERVCON operating system to index and search service 

contracts; (14) participating in the Automated Commercial Environment (ACE) under the U.S. 

Customs and Border Protection; and (15) providing data and information on liner trade 

conditions and agreement matters in response to requests from within and outside the 

Commission. 

In fiscal years 2012 and 2013, OECA plans to continue to review and analyze the competitive 

impact of agreements and monitor the activities of agreement parties, particularly in what are 

likely to be rapidly changing economic circumstances. In addition, OECA will continue to be a 

major contributor to the Commission’s examination of trade conditions resulting from the EU’s 

repeal of its block exemption to endeavor to assess the impact of the repeal on industry 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

72 

stakeholders and evaluate market conditions in the international liner shipping trades. With the 

increasing use of container freight rate indices in service contracts and index-based derivative 

transactions, OECA expects to play a key role in assessing the potential impact of this new 

commercial development on market structure, conduct and performance. 

Office of Agreements

OAGR is responsible for analyzing incoming carrier and terminal agreements to determine if 

they meet the guidelines set out in the FMC’s regulations and to determine if their effect would 

be substantially anti-competitive as set out under section 6(g) of the Shipping Act. 

During fiscal year 2011, OAGR received 159 agreement filings, including amendments to 

existing agreements. OAGR reviewed, evaluated, and processed 158 filings. Breaking a fouryear downward trend, fiscal year 2011 saw a 19 percent increase in agreement filings. This 

increase can be attributed to the uptick in the demand for ocean services in late 2010 and 2011 

after the recessionary period in 2008 and 2009. The carriers have responded to the increase in 

shipments through new operational partnerships and increasing capacity and services under 

existing operational agreements. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Agreements 3.73 3.36 4.00

Cost: Salaries & Benefits $406,622.69 $373,468.85 $450,779.81

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $406,622.69 $373,468.85 $450,779.81

Strategic Goal 1

$247,928.90

Strategic Goal 2

$202,850.91

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Agreements (OAGR)

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.80

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

2.20
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

73 

OAGR also analyzed a number of significant agreement filings during fiscal year 2011. The Port 

of NY/NJ Sustainable Services Agreement, a discussion agreement among marine terminal 

operators at the Port of New York and New Jersey, filed an amendment to allow the parties to 

enter into a separate agreement with the Port Authority of New York and New Jersey to discuss 

and agree on matters relating to the Port Authority’s implementation of its clean air strategy. The 

OAGR provided the Commission an extensive analysis of the potential competitive implications 

of the amendment and, based on the staff’s finding of no adverse impact, the Commission 

allowed the amendment to become effective. After the foregoing amendment became effective, 

the Sustainable Service Agreement parties and the Port Authority of New York and New Jersey, 

as anticipated, filed a discussion agreement regarding implementation of the Port Authority’s 

clean air strategy as well the ability to discuss operational issues in complying with Federal, 

state, and local regulations. In view of OAGR’s position that the agreement would have no 

immediate competitive impact, the Commission allowed the discussion agreement to become 

effective. The parties to the South Africa/Oceania Agreement, a vessel-sharing, service 

rationalization, rate discussion, and revenue pooling agreement, filed an amendment to remove 

the rate discussion and revenue pooling authorities from the agreement. The amendment 

significantly reduced the likelihood that the agreement would be a source of highly anticompetitive behavior. Later in the year, the parties terminated the agreement and replaced it with 

a simple vessel-sharing agreement. The parties to the Consolidated Chassis Management Pool 

Agreement filed an amendment to change their business model and provide for the participation 

of non-regulated entities in the agreement’s chassis pools. The Commission had various concerns 

with the proposed changes and formally requested additional information from the agreement 

parties. This action prevented the amendment from becoming effective until after the parties 

responded to the Commission’s request for additional information. At the close of the fiscal year, 

the agreement parties had not responded to the information request, consequently the amendment 

remained pending final action. The parties to the South America Independent Lines Association, 

an ocean freight conference agreement in the West Coast of South America trades, terminated 

their agreement. With this termination, there remain only three ocean freight conference 

agreements on file, all of which are restricted to the movement of government cargoes. 

While resources remain tight and are shared with other Bureau projects, the average processing 

time per agreement filing decreased slightly and remains comfortably under the statutory 45-day 

time frame. During fiscal years 2012 and 2013, OAGR will be pursuing IT initiatives aimed at 

reducing the average time spent on agreements. These include overhauling the existing 

agreement database to make it more useful for analysts and providing for the electronic filing of 

agreements. 

Formal Proceedings

The Bureau furnishes support in formal Commission proceedings arising in the areas of its 

expertise. The Bureau provides analyses and recommendations on petitions, information demand 

orders, and Commission-initiated rulemakings, and provides expert witness testimony in 

investigations of potential statutory violations and unfair foreign shipping practices. Further, the 

Bureau prepares economic testimony in Commission investigations. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

74 

In fiscal year 2011, Bureau staff: (1) assisted in the preparation and implementation of the 

Commission's final rule exempting licensed NVOCCs that enter into negotiated rate 

arrangements from the tariff rate publication statutes and regulations, FMC Docket No. 10-03, 

Non-Vessel-Operating Common Carrier Negotiated Rate Arrangement; (2) assisted in preparing 

Commission Orders subjecting the Transpacific Stabilization Agreement, the Westbound 

Transpacific Stabilization Agreement, and certain global Alliance agreements to special 

reporting requirements; (3) prepared Commission NOI to invite public comments on the impact 

of slow steaming vessels by carriers in agreements in the transpacific trade; (4) completed a 

Commission NOI to invite public comments on the impact of the repeal of the EU block 

exemption regulations for liner shipping conferences; and (5) met with representatives of the 

TSA pursuant to the terms of previous Commission investigations and the TSA Shipper 

Advisory Board. 

BTA Program Objectives for Fiscal Years 2012 and 2013

In fiscal years 2012 and 2013, the Bureau will continue to monitor service contract, tariff and 

agreement activities, prepare reports and economic analyses on developments and issues in key 

U.S. trades, review the activities of controlled carriers, and respond to inquiries and informal 

complaints. At the start of fiscal year 2012, the Bureau was in the final phase of the EU study. 

The Bureau will continue to assist the Commission’s investigative and enforcement initiatives, 

and oversee international trade issues, such as unfair foreign shipping practices. As a 

Commission representative, the Bureau will continue to participate with the U.S. Customs and 

Border Protection in development of the Automated Commercial Environment/International 

Trade Data System (ACE/ITDS). The Bureau also will continue to participate in the Maritime 

Data Working Group and the Interagency Action Team for the National Committee on the 

Marine Transportation System. 

BTA's support of formal proceedings during fiscal years 2012 and 2013 will depend on the 

number and subject matter of the proceedings initiated over the period, though staff will continue 

to monitor some of the more concerning trade lanes and report their findings to the Commission 

as appropriate. 

In fiscal year 2013, the Bureau has several program initiatives that are either directly related to 

newly automated functions and procedures or that involve the improvement or enhancement of 

current automation. These program initiatives must be accomplished in conjunction with OIT. 

OAGR expects to continue to enhance public access to agreements and to develop and 

implement procedures for the electronic filing of agreements and reports. OAGR also intends to 

upgrade its agreements database and develop links to other data sources to make it more useful in 

the review and analysis of agreements. Further, OAGR will undertake a review of the existing 

filing requirements in an effort to make the filing process more efficient and less burdensome, 

resulting in the issuance of a notice of proposed rulemaking during fiscal year 2013. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

75 

OECA plans to continue developing database integration solutions to facilitate in-depth analysis 

of issues concerning U.S. maritime commerce. It will, for example, refine its tracking of operator 

capacities, ship deployments, and changes in services by linking data made available by different 

providers, such as AXS Alphaliner, PIERS and IHS Fairplay Sea-Web, depending on budget 

constraints. 

Subject to the availability of resources, OSCT plans to work with OIT to optimize the internal 

architecture of the SERVCON system to allow the search functionality to keep pace with the 

rapid accumulation of records in the system. OSCT also will continue to maintain an accurate 

record of tariff publication locations by conducting periodic compliance audits of NRAs and of 

the operating status of VOCCs engaged in the U.S. liner trades. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

76 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

77 

Bureau of Certification and Licensing (BCL)

BCL licenses U.S.-based OTIs, including ocean freight forwarders (OFFs) and NVOCCs; 

receives surety bonds and processes registrations for foreign-based (unlicensed) NVOCCs; issues 

certificates to owners and operators of passenger vessels that have evidenced financial 

responsibility to satisfy liability incurred for nonperformance of voyages or for death or injury to 

passengers and other persons; manages programs assuring financial responsibility of OTIs and 

PVOs by developing policies and guidelines, and analyzing financial documents; and develops 

and maintains information systems that support the Bureau’s programs and those of other 

Commission entities. 

The Bureau is organized into two offices: the Office of Transportation Intermediaries and the 

Office of Passenger Vessels and Information Processing. The former reviews and approves 

applications for OTI licenses, and maintains and updates records about licensees. The latter 

reviews applications for certificates of financial responsibility with respect to passenger vessels, 

manages all activities with respect to evidence of financial responsibility for OTIs and passenger 

vessel owner/operators, and develops and maintains all Bureau databases and records of OTI 

applicants and licensees. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Director 3.00 2.33 2.00

OPVIP 5.96 6.00 6.00

OTI 8.17 7.82 8.00

Total FTEs 17.13 16.15 16.00

Cost: Salaries & Benefits $2,056,318.00 $1,949,421.26 $1,946,823.17

Non‐Personnel Expenses $493,783.49 $482,157.16 $482,568.40

Total Cost $2,550,101.49 $2,431,578.42 $2,429,391.57

Federal Maritime Commission

Operational and Administrative

Bureau of Certification and Licensing

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

16.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

FY 2013 Cost by FMC Strategic Goal

Strategic Goal 2

$2,429,391.57
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

78 

Office of Passenger Vessels and Information Processing 

The Commission administers 46 U.S.C. §§ 44102 and 44103, which requires evidence of 

financial responsibility for vessels which have berth or stateroom accommodations for 50 or 

more passengers and embark passengers at U.S. ports and territories. The program now 

encompasses 199 vessels and 41 operators, which have aggregate evidence of financial 

responsibility coverage in excess of $321 million for nonperformance and over $656 million for 

casualty. Certificates of performance cover financial responsibility for the indemnification of 

passengers for nonperformance of transportation. This requirement also helps prevent 

unscrupulous or financially weak operators from operating from U.S. ports. The required levels 

of coverage for nonperformance are determined by Commission regulation, which do not 

currently require coverage exceeding $15 million per entity. 

Even after an operator has ceased operations and dissolved its corporate existence, the evidence 

of financial responsibility is still valid and available to claimants against the guarantor. 

Certificates of casualty are required to meet liability that may occur for death or injury to 

passengers or other persons on voyages to or from U.S. ports in the amounts established by the 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: OPVIP 5.96 6.00 6.00

Cost: Salaries & Benefits $686,594.13 $700,671.01 $722,588.27

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $686,594.13 $700,671.01 $722,588.27

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of Passenger Vessels & Information Processing (OPVIP)

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$722,588.27

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Director 3.00 2.33 2.00

Cost: Salaries & Benefits $490,995.88 $369,461.28 $318,673.95

Non‐Personnel Expenses $493,783.49 $482,157.16 $482,568.40

Total Cost $984,779.37 $851,618.44 $801,242.35

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of the Director

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

2.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$801,242.35
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

79 

statute. The law provides for $20,000 coverage per person for the first 500 passengers, and the 

scale decreases to $5,000 per person for passengers in excess of 1,500. U.S. Customs and Border 

Protection is directed to refuse clearance to any vessel which does not comply with the FMC’s 

evidence of financial responsibility requirements for casualty and nonperformance. During fiscal 

year 2011, the Commission approved and issued 22 casualty certificates and 24 performance 

certificates. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: OPVIP 5.96 6.00 6.00

Cost: Salaries & Benefits $686,594.13 $700,671.01 $722,588.27

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $686,594.13 $700,671.01 $722,588.27

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of Passenger Vessels & Information Processing (OPVIP)

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$722,588.27

In conjunction with CADRS, the Bureau offers information and guidance to the cruising public 

throughout the year on passenger rights and obligations regarding monies paid to cruise lines that 

fail to perform voyages. Over the past few years, a number of cruise operators discontinued 

operations or filed for bankruptcy. When cruise lines fail to perform because of bankruptcies or 

other failures, the Commission works closely with the cruise line and the financial responsibility 

provider, if necessary, to facilitate the refund process. The public is kept informed through press 

releases posted on the Commission’s website and advice given to passengers who contact staff. 

During fiscal year 2011, one operator, West Travel, Inc. doing business as Cruise West (Cruise 

West) ceased operations in September 2010 with unperformed cruises and filed for bankruptcy in 

December 2010. BCL and CADRS worked closely with Cruise West’s claims processor and the 

United States Tour Operators Association to oversee the disbursement of funds to Cruise West 

passengers and addressed concerns from the public regarding this situation. Staff also continued 

to assist passenger vessel operators and financial responsibility providers during the fiscal year to 

resolve passenger claims for several cancelled cruises of other cruise operators. 
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80 

The Bureau reviews PVO activities and operations by monitoring current industry events and 

examining cruise lines’ unearned passenger revenue (UPR) information. Oversight of cruise line 

operators’ operations and activities ensures compliance with applicable statutes and Commission 

regulations. One component of the Bureau’s PVO monitoring program is to perform on-site 

reviews of PVOs’ financial responsibility. The on-site review confirms the passenger vessel 

operator’s compliance with the Commission’s reporting requirements relating to UPR and the 

appropriate amount of coverage required to ensure adequate financial responsibility. 

During fiscal year 2011, staff was involved in analyzing comments and testimonies received in 

response to a Notice of Inquiry and a March 3, 2011 hearing on PVO matters. Based on the 

information received, the Commission voted on July 14, 2011 to initiate a rulemaking to 

strengthen protections for cruise line customer deposits and prepayments and to reduce financial 

responsibility requirements for small cruise lines. The Notice of Proposed Rulemaking (NPRM) 

was issued on September 13, 2011 with a deadline of November 21, 2011 to submit comments. 

The NPRM would double the maximum coverage requirement for larger cruise lines from $15 

million to $30 million, with a two year phase-in period; adjust the maximum coverage 

requirement automatically to account for inflation, give relief to smaller vessel operators by 

reducing their coverage requirements to account for alternative forms of financial protections 

available to their customers, revise the application form, add an expiration date to the Certificate 

(Performance); and make some technical adjustments to the regulations. BCL will provide its 

analysis of the comments and present options for the Commission’s consideration in early fiscal 

year 2012. 

Automated Database Systems

During fiscal year 2011, BCL continued to modernize and expand the Regulated Persons Index 

(RPI), a database containing up-to-date records of licensed OTIs, ocean common carriers, and 

other entities. Among other data uses, the RPI is used to post on the Commission’s website a list 

of compliant OTIs so that carriers and others can ascertain whether an OTI is properly licensed, 

bonded, and if required, has posted the location of its automated tariff. The OTI list also 

indicates whether an NVOCC has filed an optional China bond rider. Additional report 

capabilities were implemented during the fiscal year to facilitate management of the OTI 

licensing program. 

In fiscal year 2012, BCL will continue to work towards automating the PVO Application Form 

FMC-131, Application for Certificate of Financial Responsibility, and to gather requirement 

analysis to facilitate the filing of PVO applications and to increase accessibility to information, 

facilitate public search capability, and to make it more interactive for users. BCL will make 

further refinements to the OTI list as part of the FMC website redesign process in fiscal year 

2012. 

 
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Office of Transportation Intermediaries

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: OTI 8.17 7.82 8.00

Cost: Salaries & Benefits $878,727.99 $879,288.97 $905,560.95

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $878,727.99 $879,288.97 $905,560.95

Strategic Goal 1

$0.00

Strategic Goal 2

$905,560.95

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of Transportation Intermediaries (OTI)

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

8.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

OTIs are transportation middlemen for oceanborne cargo moving in the U.S.-foreign trades. 

There are two types: NVOCCs and ocean freight forwarders. NVOCCs are common carriers who 

do not operate the vessels by which transportation is provided. Ocean freight forwarders in the 

U.S. arrange for the transportation of cargo with a common carrier on behalf of shippers and 

process documents related to those shipments. Both NVOCCs and ocean freight forwarders 

must be licensed by the Commission if they are located in the U.S. NVOCCs doing business in 

the U.S. foreign trades but located outside the U.S. (foreign NVOCCs) may choose to become 

licensed, but are not required to do so. Whether licensed or not, foreign NVOCCs must establish 

financial responsibility. All NVOCCs must publish electronic tariffs which contain the 

NVOCC’s rates, charges, rules and practices. 

To become licensed by the Commission, an OTI must establish that it has the necessary character 

to render OTI services as well as establish its financial responsibility by means of a bond, 

insurance, or other instrument and through its Qualifying Individual (QI), has a minimum of 

three years of experience in ocean transportation intermediary activities in the U.S. An 

investigation of the applicant’s qualifications addresses such issues as accuracy of information 

provided in the application; integrity and financial responsibility of the applicant; character of 

the applicant and its QI; and length and nature of the QI’s experience handling OTI duties. 

Licensed ocean freight forwarders must establish financial responsibility in the amount of 

$50,000, and licensed NVOCCs, $75,000. An additional $10,000 of coverage is required for 

each unincorporated branch office in the United States other than the one used to establish a 

presence. 
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During fiscal year 2011, the Commission received 496 new OTI applications and 277 amended 

applications, issued 506 OTI licenses, and revoked 310 licenses. At the end of the fiscal year, 

1,042 OFFs, 1,737 U.S. NVOCCs, 1,670 joint NVOCC/OFFs, and 60 foreign NVOCCs held 

active OTI licenses. An additional 1,190 foreign NVOCCs maintained proof of financial 

responsibility on file with the Commission, but chose not to be licensed. Overall, there has been 

a gain of 187 licensed and/or bonded OTIs, representing approximately a 3.4 percent increase 

from 5,512 OTIs in fiscal year 2010 to 5,699 in fiscal year 2011. U.S. NVOCCs may file riders 

to their existing NVOCC bonds to meet financial responsibility requirements imposed by the 

Chinese government. The Commission received 96 riders providing optional proof of financial 

responsibility for NVOCCs serving the U.S.-China trade. 

During fiscal year 2011, the Bureau worked diligently to streamline the ocean transportation 

intermediary licensing process and reduce the time needed to reach a licensing decision. The 

Commission’s goal was to complete 60 percent of all OTI license applications within 60 calendar 

days during fiscal year 2011. In spite of reductions in staffing, the Bureau completed over 75 

percent of all OTI applications within 60 business days, exceeding the goal set by almost 20 

percent. Additionally, BCL made significant progress in reducing the number of applications 

processed with incomplete data submissions from applicants. 

The automated Form FMC-18, Application for an Ocean Transportation Intermediary License, 

permits filers to complete an OTI application on line, scan and attach required documents, and 

submit the application electronically. The filing system incorporates significant security features 

for the purpose of protecting applicant data, and detecting and preventing unauthorized system 

intrusion. The Bureau seeks additional efficiencies in its OTI licensing program through future 

improvements in the automated Form FMC-18 system. At the present time, approximately 93 

percent of all incoming OTI applications received are from the electronic system. 

In fiscal year 2012 and 2013, BCL will continue to review its procedures in order to improve the 

timeliness of licensing determinations. BCL will also work to update the OTI regulations in 46 

CFR Part 515 

 
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Bureau of Enforcement (BOE)

The BOE has primary responsibility for ensuring compliance with shipping statutes administered 

by the Commission, principally the Shipping Act. The Bureau is actively involved in the 

Commission’s outreach activities and interacts regularly with all segments of the ocean 

transportation industry. The Bureau is also active in maritime security and works closely with 

BCL to promote prompt licensing of all qualified OTIs, and with the CBP to ensure submission 

of complete and accurate shipping data. Bureau attorneys may be designated as Investigative 

Officers in nonadjudicatory fact finding proceedings. Additionally, Bureau attorneys work 

closely with the Commission’s investigatory personnel and participate as trial counsel in formal 

adjudicatory proceedings. BOE monitors all other formal Commission proceedings and relevant 

court actions in order to identify major regulatory issues and to advise the Managing Director 

and the other Bureaus and Offices. The Bureau participates with other Bureaus and Offices in 

committees and taskforces in the development of Commission policies, rules, and regulations, 

and also intervenes in formal complaint proceedings where appropriate. 

Through investigative personnel, the Bureau monitors and conducts investigations into the 

activities of ocean common carriers, OTIs (NVOCCs and OFFs), shippers, ports, MTOs, and 

other persons to ensure compliance with the statutes and regulations administered by the 

Commission, thereby providing maximum protection to all participants in the ocean 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of the Director 10.00 10.00 10.00

Cost: Salaries & Benefits $1,490,068.59 $1,494,783.36 $1,539,470.14

Non‐Personnel Expenses $363,535.42 $373,559.73 $420,240.49

Total Cost $1,853,604.01 $1,868,343.09 $1,959,710.63

Federal Maritime Commission

Bureau of Enforcement

Operational and Administrative

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

10.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

FY 2013 Cost by FMC Strategic Goal

Strategic Goal 2

$1,959,710.63
Federal Maritime Commission

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84 

transportation shipping industry. Activities include: (1) monitoring tariffs, service contracts 

and NSAs to determine compliance with applicable statutes and regulations; (2) reviewing of 

VOCC and OTI operations, including monitoring OTI compliance with bonding requirements 

and post-licensing and routine compliance checks of licensees to determine whether operations 

conform with regulatory requirements; and (3) monitoring operation of carrier and MTO 

agreements, including review of minutes and quarterly reports. Investigations are conducted into 

alleged violations of the full range of statutes and regulations administered by the Commission, 

including: illegal or unfiled agreements; abuses of antitrust immunity; unlicensed OTI activity, 

including the provision of transportation services to noncompliant OTIs; illegal rebating; 

misdescriptions or misdeclarations of cargo; untariffed cargo carriage; unbonded passenger 

vessel operations; unlawful MTO activity and various types of consumer abuses, such as failure 

of carriers or intermediaries to carry out transportation obligations resulting in cargo delays and 

financial losses for shippers. Through these activities, the enforcement program supports the 

agency’s objectives of obtaining statutory compliance and ensuring equitable and efficient 

trading conditions. Bureau enforcement efforts are typically focused upon activities which have 

market-distorting effects and those which impact most directly on the shipping public. 

BOE prepares and serves notices of violations of the shipping statutes and Commission 

regulations and may compromise and settle civil penalty demands arising out of those violations. 

If settlement is not reached, Bureau attorneys act as prosecutors in formal Commission 

proceedings that may result in settlement or in the assessment of civil penalties. The Bureau also 

participates, in conjunction with other Bureaus, in special enforcement initiatives, fact finding 

investigations, ADR processes, rulemaking efforts, and homeland security issues. 

During fiscal year 2011, the Bureau worked to obtain statutory compliance in all major trades 

and with all segments of the transportation industry, i.e., carriers, carrier agreements, MTOs, 

PVOs, and OTIs. The Bureau also initiated actions to address and seek compliance for marketdistorting activities such as various forms of secret rebates and absorptions, misdescriptions of 

commodities and misdeclarations of measurements, illegal equipment substitution, unlawful use 

of service contracts, as well as carriage of cargo by and for untariffed and unbonded NVOCCs, 

and joint carrier activities outside the authority of existing agreements or pursuant to unfiled 

agreements. Particular emphasis was placed on industry service contracting activities to ensure 

fair trading conditions and protection of the public. Many malpractice investigations were 

resolved informally, resulting in compromise settlements and payment of civil penalties. Other 

reviews were treated primarily as compliance matters and closed upon completion of remedial 

action by the OTI parties involved. However, certain investigations of carrier and MTO 

practices required the institution of formal adjudicatory proceedings in order to pursue remedies 

under the 1984 Act. 

Two major investigations, completed during fiscal year 2011, addressed whether certain 

Shanghai-based NVOCCs utilized intentional misdescriptions of commodities as an unfair 

device or means to obtain ocean transportation at less than the rates that would otherwise apply, 

in violation of section 10(a) of the 1984 Act. Docket Nos. 10-09 and 11-04 were discontinued 

upon approval of a formal settlement agreement, payment of substantial civil penalties by the 

NVOCC, and termination of alleged violative practices. BOE also completed a major 

investigation of an ocean common carrier in the inbound PRC-U.S. trades believed to be 
Federal Maritime Commission

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85 

providing transportation services to intermediaries that did not have tariffs, licenses, or bonds as 

required by the statute; and allowing use of service contracts by persons who were not parties to 

those contracts. The Bureau also continued ongoing investigations of household goods movers 

allegedly operating as unlicensed OTIs, including investigation of the VOCCs and licensed 

NVOCCs that provided service to unlicensed movers. BOE activities included formal 

proceedings instituted against an unlicensed freight forwarder in Docket No. 11-06 (Indigo 

Logistics LLC, et al), undertaken in coordination with efforts by the Office of General Counsel 

requesting that the Federal courts enjoin the Indigo Logistics Defendants from further illegal 

activities. Judge Timothy C. Batten, Sr. issued the preliminary injunction order in the U.S. 

District Court for the Northern District of Georgia on April 15, 2011. 

In fiscal year 2011, the compliance audit program continued as a major focus. This program, 

conducted from headquarters primarily by mail and telephone, reviews the operations of licensed 

OTIs to assist them in complying with the statutory requirements and the Commission’s rules 

and regulations. The audit program also reviews entities holding themselves out as VOCCs, but 

with no indication of actual vessel operations. At the beginning of fiscal year 2011, 15 audits 

were pending. During the fiscal year, 100 audits were commenced, 106 audits were completed 

(including audits carried over from fiscal year 2010), and 9 remained pending in the Bureau on 

September 30, 2011. 

At the beginning of fiscal year 2011, 12 enforcement cases were pending final resolution by the 

Bureau, the Bureau was party to 7 formal proceedings, and there were 11 matters pending which 

the Bureau was monitoring or providing legal advice. During the fiscal year, 17 new 

enforcement actions were referred for enforcement action or informal compromise; 16 were 

compromised and settled, administratively closed, or referred for formal proceedings; and 13 

enforcement cases were pending resolution at fiscal year’s end. Also, 3 formal proceedings were 

initiated; 2 formal proceedings were completed, and 8 were pending at the end of the fiscal year. 

Additionally, the Bureau opened 5 matters involving monitoring or legal advice during the fiscal 

year, completed or closed 4 such matters, and 12 remained pending on September 30, 2011. 

In fiscal years 2012 and 2013, the Bureau will continue to pursue market-distorting, fraudulent, 

and anticompetitive practices harmful to the industry and the public and to monitor U.S. trades, 

to the extent that resources permit. The Bureau will continue to pursue initiatives aimed at 

VOCCs and NVOCCs engaged in unfair service contracting practices, particularly those which 

permit improper entities to compete unlawfully with carriers and OTIs operating in compliance 

with U.S. laws, and will continue to expand the OTI monitoring and audit programs. The 

enforcement and monitoring activities will include focusing on the unlawful operations of 

household goods carriers - both licensed and unlicensed - which have increasingly caused 

economic harm to individual consumers, as well as competitive injury to those carriers operating 

lawfully. 

 
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86 

Additionally, the Bureau continues to support and promote its compliance-focused program to 

review and audit ocean common carrier, NVOCC and freight forwarder operations. While wellreceived by the regulated industry, this program emphasizing correction of routine tariff matters 

and prompt compliance with the Commission’s reporting, licensing and bonding requirements 

conducts roughly 120 OTI audits each year. Compliance audits thus account for less than 2.5 

percent annually of the approximately 5,400 licensed or bonded OTIs currently registered with 

the Commission. 

During fiscal years 2012 and 2013, the Bureau will continue to review the operations of 

ratemaking and rate discussion agreements, including MTOs and, together with other 

Commission Bureaus and Offices, will monitor FMC-filed agreements to ensure compliance 

with the Shipping Act and Commission regulations. The Bureau will also continue its ongoing 

monitoring of NVOCC activity involving NSAs and new authority granted to NVOCCs with 

respect to employing NRAs. Public outreach efforts will continue to educate maritime 

transportation users and providers with regard to FMC statutes and regulations, and the program 

will continue to improve participation in security issues as they relate to U.S. ocean commerce, 

specifically to include efforts to coordinate the use of available database systems with other 

agencies engaged in homeland security to improve identification of entities providing and 

utilizing maritime transportation services.
Federal Maritime Commission

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87 

Office of Information Technology (OIT)

OIT is dedicated to providing and supporting reliable information and information-based 

technology services in a timely and high-quality manner in support of the administrative 

operations of the Commission, and is responsible for ensuring that the Commission’s technology 

program is conducted in a manner consistent with applicable laws, regulations and guidelines 

and is aligned with the overall goals of the Commission. OIT receives program direction from 

the agency’s Chief Information Officer. 

The CIO serves as the Commission’s Information Technology Officer, Telecommunications 

Manager, Help Desk, Database Administration Manager, Records Management Officer, and 

oversees the IT security program. The Director/CIO plans, coordinates, and facilitates the use of 

technology within the Commission. 

During fiscal year 2011 important OIT activities included the following: (1) continued ongoing 

FMC-18 Application System and SERVCON System upgrade initiatives; (2) managed FMC’s 

technical assistance and support contracts; (3) provided ongoing advice and coordination on 

electronic document and records management system databases and applications; (4) provided 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of Information Technology 8.42 8.01 8.00

Cost: Salaries & Benefits $1,144,739.76 $1,073,314.60 $1,098,232.52

Non‐Personnel Expenses $1,066,516.48 $1,031,450.78 $1,512,328.91

Total Cost $2,211,256.24 $2,104,765.38 $2,610,561.43

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Operational and Administrative

Office of Information Technology

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.40

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.60

Strategic Goal 1

$522,112.29

Strategic Goal 2

$2,088,449.14
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

88 

security awareness training throughout the agency; and (5) continued requirements review and 

planning to determine technology requirements for the adoption of new enterprise content 

management (ECM) technologies to consolidate FMC’s fractured information applications and 

technology systems. 

For fiscal years 2012 and 2013, major initiatives include plans to: (1) adopt new enterprise 

content management technology within the Commission; (2) evaluate use of cloud computing 

technology and services, and adopt new cloud computing technology solutions where 

appropriate; (3) implement Pay.gov to enable electronic collections processing using Internet 

technologies; (4) develop an FMC COOP site solution to mirror the FMC’s technology 

infrastructure for agency mission-critical applications and technology; and (5) explore the 

possibility of leveraging an information technology shared services data center to deliver 

services across the agency. 
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Office of Human Resources (OHR)

OHR plans and administers a complete human resources management program including: 

recruitment and placement, position classification and pay administration, occupational safety 

and health, employee assistance, workforce discipline, performance management and incentive 

awards, employee benefits, retirement, employee development and training, and personnel and 

information security. 

Major accomplishments during fiscal year 2011 include the following: (1) monitored activities 

of the agency’s payroll/personnel service provider, the National Finance Center (NFC), and 

worked with administrative staff to ensure security, continuity and accuracy of payroll and 

personnel services; (2) addressed talent/leadership management and succession planning by 

initiating individual development of those recruited and selected to participate in the Senior 

Executive Service Candidate Development Program and provided technical guidance regarding 

developmental activities, special projects, and training of candidates; (3) conducted a 

comprehensive training program in accordance with the agency’s budget and strategic and 

performance plans, promoting e-learning and on-line training opportunities, continuing the 

college tuition reimbursement program, ensuring training for new employees on No Fear Act, 

participating in the SAC Training Program, and introducing more agency mission-critical 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of Human Resources 5.00 5.00 5.00

Cost: Salaries & Benefits $585,440.90 $601,851.55 $629,286.43

Non‐Personnel Expenses $144,156.15 $157,943.78 $153,481.78

Total Cost $729,597.05 $759,795.33 $782,768.21

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Operational and Administrative

Office of Human Resources

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.00

Strategic Goal 1

$156,553.64

Strategic Goal 2

$626,214.57
Federal Maritime Commission

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90 

training (e.g., Bills of Lading Workshop); (4) planned, implemented, and promoted new 

programs for Retirement-Readiness, Personal Financial Literacy Education, and 

Volunteer/Community Service Awareness and issued newsletters highlighting appropriate 

information and activities; (5) conducted a comprehensive personnel and information security 

program, including initiating and adjudicating security investigations for new and reinvestigated 

employees and incorporating new security regulations into agency policy; (6) worked with the 

Partnership for Public Service in connection with metrics and utilizing results of the Best Places 

to Work rankings; (7) coordinated with OPM in the administration of the Federal Employee 

Viewpoint Survey (FEVS), analyzed results, prepared interpretation and trend analysis, and 

worked with senior management to identify and reinforce successful activities and develop 

strategies to address areas of improvement; (8) coordinated with OPM, OMB, and the Small 

Agency Human Resources Council on human capital and related initiatives including, e.g., 

Hiring Reform, potential government shut-down and related furlough activities; Voluntary Early 

Retirement Authority, etc.; (9) conducted a comprehensive performance management and 

incentive awards program, including working with the agency Performance Appraisal System 

Taskforce (PAST) to document policy changes, obtain OPM approval, coordinate training, and 

otherwise ensure successful implementation of a revised performance appraisal system for nonSES; (10) conducted a comprehensive recruitment program; (11) maintained the partnership for 

acquisition of assistive devices through the Department of Defense’s Computer/Electronic 

Accommodations Program; (12) continued to administer E-gov initiatives and implementation 

of the Enterprise Human Resources Integration Project and worked with the Small Agency 

Human Resources Consortium, OPM and Northrop Grumman Integic officials to complete 

program activities to implement the electronic Official Personnel Folder (eOPF); (13) promoted 

the Preventive Health and Awareness Program and OPM’s Healthier Feds initiatives, publicized 

and hosted wellness seminars sponsored by the Employee Assistance and Federal Occupational 

Health Programs; (14) in concert with OPM’s hiring reform initiative, established agency Rapid 

Response (SWAT) team and undertook activities to simplify the Federal application process and 

enhance recruitment efforts, including developing streamlined vacancy announcement templates, 

mapping agency hiring processes to reduce the time-to-hire, developing an action plan to identify 

and address required activities to implement and monitor hiring reform initiatives; (15) enhanced 

workplace flexibilities and provided recommendations to OPM regarding the agency’s work/life 

program and best practices; (16) coordinated with other administrative units on matters 

pertaining to the Automatic External Defibrillator (AED) program and Health Unit (clinical) 

services; (17) managed and conducted employee benefits and charitable contributions programs 

and Open Seasons, such as the Combined Federal Campaign, Long-Term Care Insurance 

Program, Flexible Spending Accounts, the annual Benefits Open Season and FMC Health Fair, 

etc.; (18) conducted a proactive retirement program that included computing benefits, providing 

access to retirement seminars, related training and one-on-one counseling, and timely processing 

all retirements, as well as determining the need, requesting and receiving OPM approval, and 

informing the workforce regarding Voluntary Early Retirement Authority; (19) coordinated with 

other administrative units and the General Services Administration’s Managed Service Office on 

matters pertaining to Homeland Security Presidential Directive 12 (HSPD-12) and the issuance 

of Federal employee credentials, including activities to implement logical access provisions; (20) 

conducted a comprehensive classification and position management program, including 

coordinating assignments and evaluating contractor performance; (21) participated in the online 

Federal Competency Assessment Tool for managers and HR staff to update FMC’s skill gap 
Federal Maritime Commission

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91 

analysis, identify gaps in leadership competencies, support mission accomplishment, and guide 

planning for training and development; (22) revised the agency Human Capital Plan to ensure 

consistency with revisions to the agency Strategic Plan’s goals and objectives; and (23) 

continued work with information technology contractors to complete the design and agency-wide 

implementation of an automated training data management reporting system. 

In fiscal years 2012 and 2013, OHR plans to: (1) implement pertinent portions of the agency’s 

strategic, training and related performance plans, particularly performance goals related to the 

management of human resources; (2) advise agency management and staff on all human 

resources matters and maintain a sound and progressive human resources program; (3) explore 

and implement simplification, flexibility, and accountability of human resources management 

programs, and explore high-tech solutions to address program requirements, including, e.g., a 

fully automated training evaluation system and automated staffing system; (4) partner with 

agency officials in concert with the Administration’s goal to build a transparent, highperformance government specifically with respect to Federal hiring reform and improving 

employee satisfaction and wellness; (5) continue with eOPF implementation and conversion of 

performance, payroll, benefits and other HR records to electronic format, and execute action plan 

for full production and employee roll-out; (6) continue to monitor database modernization efforts 

of the NFC in conjunction with e-Governance and ensure timely and accurate payroll and 

personnel services; (7) continue to review and update various policy statements to implement 

Executive Orders and related regulatory requirements; (8) continue to administer and assess 

results from the FEVS to gauge employee satisfaction with work/life and benefits programs, 

agency leadership, developmental opportunities, etc., and use these metrics to strategically 

implement, monitor, measure, assess progress in achieving, ensure accountability, and report on 

human capital management goals pursuant to the agency’s Human Capital, Workforce, 

Succession and Accountability Plans; and (9) evaluate the revised performance appraisal system 

against OPM’s Performance Appraisal Assessment Tool (PAAT) and monitor employee 

perceptions regarding performance management through continued analysis of the FEVS. 

 
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Federal Maritime Commission

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93 

Office of Budget and Finance (OBF)

OBF administers the Commission's financial management program and is responsible for 

offering guidance on optimal use of the Commission's fiscal resources. OBF's main 

responsibilities are to: (1) produce, submit and support annual budget justifications and 

estimates to OMB and the Congress; (2) execute annual budgets to ensure that appropriated 

funds are properly expended; (3) review audited financial reports; (4) administer a control 

system over workyears of employment; (5) collect and deposit all fees and forfeitures due the 

Commission and pursue collections of debts; (6) process accounts payable documents; (7) verify 

financial, accounting and payroll reports generated by the agency’s fiscal services agents; 

(8) prepare and process travel orders and vouchers; and (9) manage the Commission’s Travel 

Charge Card and Cash Management Programs. 

The Commission has an interagency agreement (IAG) with the Bureau of Public Debt (BPD) to 

provide travel, procurement, and financial reporting. OBF serves as the Commission’s primary 

contact with BPD and verifies all accounting transactions, oversees the accurate and timely 

submission of quarterly financial statements to OMB, annual and semi-annual report submissions 

to the U.S. Treasury and works to ensure that an unqualified opinion is received on the annual 

financial statement audit. The NFC provides the Commission with payroll services through an 

IAG. OBF serves as the primary contact with NFC regarding time card transmission and verifies 

all payroll disbursement costs. NFC transmits documentation of payroll costs directly to BPD for 

inclusion in the agency’s accounting records. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of Budget and Finance 4.97 5.00 5.00

Cost: Salaries & Benefits $572,105.62 $620,627.42 $640,458.27

Non‐Personnel Expenses $134,228.72 $153,861.01 $157,314.07

Total Cost $706,334.34 $774,488.43 $797,772.34

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Operational and Administrative

Office of Budget and Finance

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.00

Strategic Goal 1

$159,554.47

Strategic Goal 2

$638,217.87
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

94 

During fiscal year 2011, OBF’s important accomplishments include the following: (1) collected 

and deposited $2,446,630 to the U.S. Treasury from fines and penalty collections, publications, 

reproductions, and user fees; (2) coordinated and prepared budget justifications and estimates for 

the fiscal year 2012 Congressional budget and fiscal year 2013 OMB budget; (3) prepared 

required external reports; (4) prepared monthly internal status reports on workyears, funding, 

travel, receivables, and budget allocation report to provide management with meaningful, timely 

expense data by program; (5) revised calculations used to estimate the cost of annual 

performance goals; (6) captured receivables by user fee type and pursued delinquent receivables; 

(7) worked with BPD staff and independent auditors regarding the audits of the fiscal years 2010 

and 2011 Financial Statements (an unqualified opinion was received for fiscal year 2010 and 

fiscal year 2011); (8) worked with the OMD to finalize the FMC’s 2010 Managements 

Discussion and Analysis/Performance and Accountability Report (MD&A/PAR); (9) updated 

Commission Orders and procedural documents; (10) prepared official travel documents in 

accordance with applicable Federal Travel Regulations; (11) processed the Commission’s 

accounts payable documents in accordance with the Prompt Payment Act; (12) began migration 

from the current Paper Check Conversion (PCC) system of depositing remittances received from 

FMC customers to the new Over the Counter Channel Application (OTCnet) and Transaction 

Reporting System (TRS); and (13) began working with BPD to implement Treasury’s Internet 

Payment Platform (IPP), which will create efficiencies in the Commission’s accounts payables. 

Goals for fiscal years 2012 and 2013 include: (1) facilitating implementation of Pay.gov for 

acceptance of electronic payments from the industry, thereby improving the agency’s Cash 

Management Program; (2) continuing to pursue initiatives leading to economy and efficiency in 

budget and financial operations; (3) updating relevant standard operating procedures, 

Commissioner Orders and procedural documents; and (4) completing migration to OTCnet and 

IPP. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

95 

Office of Management Services (OMS)

OMS procures and furnishes all services, office equipment and supplies necessary to support the 

day-to-day operations and performance goals of the Commission. To accomplish this, OMS 

administers a variety of management service functions, including: (1) administering 

Commission procurement and contracting; (2) controlling and administering the Commission's 

property utilization, maintenance, inventory and disposition programs; (3) planning and 

administering programs for improvement of the workplace environment and other space 

utilization operations for all Commission locations, including office space and provision of 

office furnishings; (4) managing the receipt, storage, distribution and inventory of all supplies, 

forms and accessories; (5) coordinating and fulfilling all printing, copying, and graphic service 

requirements; (6) coordinating the use of the building's physical facilities with respect to 

maintenance, security, and parking; (7) conducting safety inspections and coordinating the 

Commission's emergency planning and evacuation plan; and (8) directing the Commission's 

participation, development and goal-setting efforts under the Small Business Act. 

During fiscal year 2011, OMS: (1) coordinated with OHR on the close-out of the HR Consultant 

Services contract with Medlin for eOPF and other HR support; and awarded a new Inter-Agency 

Agreement with the General Services Administration (GSA) for HSPD-12, official Federal 

Government credential issuance program; (2) with support and assistance from the OMD and 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Office of Management Services 5.39 5.00 5.00

Cost: Salaries & Benefits $690,324.80 $585,816.39 $608,265.73

Non‐Personnel Expenses $165,054.61 $145,182.39 $153,310.48

Total Cost $855,379.41 $730,998.78 $761,576.21

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Operational and Administrative

Office of Management Services

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.00

Strategic Goal 1

$152,315.24

Strategic Goal 2

$609,260.97
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

96 

the OGC, terminated the ECM Integration contract with Momentum Systems Inc., for the 

convenience of the government; (3) continued coordination with GSA personnel and their 

contractor to acquire new or renew the lease for FMC’s Headquarters (HQ) office space, to 

include (a) site surveys at three locations with the GSA team to review office space and facility 

availability, and (b) initiated the informational package to reestablish HQ office space and 

support space requirements; (4) continued coordination with the OMD and arranged for various 

administrative services support for Fact Finding 27, including: court reporting services, meeting 

space for industry interviews, and supply materials; (5) obtained approval and arranged through 

OHR for the hiring of an Administrative Support Assistant to perform the mail, delivery, supply 

issuance, and transportation services activities as necessary; (6) arranged for the printing of the 

Commission’s 49th Annual Report through the Government Printing Office (GPO); (7) arranged 

for the continued expansion of the documents/materials shredding and disposal program to 

include providing service to the Area Representatives in field locations; (8) continued 

coordination with the Federal Protective Service (FPS), GSA, and the other Federal HQ building 

tenants to assess and update the building’s Occupant Emergency Plan (OEP) and arranged for a 

variety of “emergency preparedness” seminars/training for the building’s population through the 

Building Security Committee (BSC); (9) continued coordination with the other tenant 

agencies/members of the BSC to arrange for Health Services seminars and a bi-annual blood 

drive; (10) continued coordination with the Chairman and Managing Director to provide the 

logistics required for miscellaneous staff relocations and/or reassignments; (11) traveled to Los 

Angeles to facilitate the renovation of the San Pedro field office, including removal of old carpet 

and disposal of old furnishings to the installation of new carpet, furnishings and painting, as well 

as the coordination with GSA Real Estate officials on the renewal of the office space lease; (12) 

continued coordination with OMD on conducting a management evaluation & review of BTA’s 

operations; (13) coordinated and arranged for Dell monitors to be transferred from the FBI to 

FMC for staff use at no cost; (14) continued coordination with the CIO/OIT and arranged 

through GSA to expand and upgrade the Video Conferencing System at FMC’s HQ; and (15) 

continued coordination with OMD and arranged for the printing of Outreach program brochures 

for the FMC in general and the OCADRS in particular through GPO. 

In fiscal years 2012 and 2013, OMS’ objectives include: (1) continuing to work with GSA to 

provide the required information for HQ lease renewal and/or relocation effort; (2) continuing to 

work with GSA, FPS, and other tenant agencies at our HQ facilities and field locations to 

upgrade and/or improve the buildings’ security measures and emergency preparedness; (3) in 

conjunction with the agency’s other administrative offices, continuing the research methods and 

practices for the enhancement and improvement in support services; (4) continuing to work with 

BPD on streamlining the FMC’s acquisition and procurement program for better efficiency; and 

(5) continuing to provide advice and assistance regarding innovative support-service approaches 

to FMC activities. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

97 

Fiscal Year 2013 Strategic Goals 

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 intermodal 

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

maintaining a competitive international ocean transportation system and protecting the public 

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

and with a minimum regulatory burden on stakeholder industries. 

To continue to accomplish its goals, the agency will need to maintain its relevant expertise 

through the recruitment, training and retention of highly qualified attorneys, economists, industry 

specialists, and information technology experts. The importance of the recruitment and retention 

issue is likely to increase as the agency’s experienced personnel reach retirement age, and in the 

face of competition from other Federal agencies seeking to replace their retiring personnel. 

FY 2011 FY 2012 FY 2013

Actual Estimate Request

FTE: Headquarters & Field 127.79 126.52 131.60

Cost: Salaries & Benefits $17,885,822.09 $17,858,000.00 $18,940,000.00

Non‐Personnel Expenses $6,175,532.81 $6,242,000.00 $7,060,000.00

Total Cost $24,061,354.90 $24,100,000.00 $26,000,000.00

Federal Maritime Commission

FY 2013 Cost by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

102.65

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

27.95

$5,770,270.46

Federal Maritime Commission

Executive Summary

FY 2013 FTE by FMC Strategic Goal

Strategic Goal 2

$20,229,729.54

Strategic Goal 1
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

98 

Expanding and enhancing the use of information technologies is one way in which the FMC is 

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

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

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

business practices of the industries it regulates. Greater use of information technology also helps 

make many of the aspects of licensing, certification and information filing simpler and easier to 

accomplish for the agency’s stakeholders. IT is critical to the maintenance and effective use of 

various key agency databases. 

The security of agency databases, 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 to 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, the FMC will need 

to conduct research to determine the likely affect of such changes on U.S. trades. Over time, and 

depending on their actual impacts, regulatory changes in other regions could also provide a 

possible impetus for a review of U.S. statutes or regulations on liner shipping. Consequently, 

FMC analyses of possible future proposals for statutory revisions may be required. 

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. 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

99 

STRATEGIC GOAL 1 

Maintain an efficient and competitive international ocean transportation system. 

The 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. 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.

$2,167,038.68

$0.00

$76,412.73

$3,526,819.05

Strategic Goal 1

Funding Requirements by Program

Formal Proceedings EEO IG Operational & Administrative
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

100 

OBJECTIVE 1: 

Identify and take action to address substantially anticompetitive conduct or unfavorable 

trade conditions in U.S. trades. 

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

consumers, from possible abuse of the limited antitrust immunity granted by Congress to 

international liner carriers and domestic marine terminal operators under the Shipping Act. In 

addition, the FMC is responsible, under the Foreign Shipping Practices Act of 1988, for 

investigating whether laws, rules, regulations or practices of foreign governments, or the 

practices of foreign carriers result in the existence of unfavorable conditions in U.S. trades. 

10.00

0.00

0.30

17.65

Strategic Goal 1

FTE Requirements by Program

Formal Proceedings EEO IG Operational & Administrative

Strategic Goal 1:

Objective 1:

Plan Achieved

18.00% 17.40%

FY 2013

Target

19.50%

Performance Measure 1:                                                                                                                                                                                                                                                                        

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

Target

19.00%

Identify and take action to address substantially anticompetitive conduct or unfavorable trade conditions in U.S. trades

FY 2010 FY 2011

Target                              Achieved      

18.5%                                     17.9%

FY 2012

Maintain an efficient and competitive international ocean transportation system
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

101 

The Shipping Act requires that VOCCs and 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 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 ongoing 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 FSPA the Commission can address adverse conditions affecting U.S. carriers in the 

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

providing maritime or maritime-related services in the U.S. Section 9 of the Shipping Act also 

charges the Commission with regulating the rates, charges, and rules of government-owned or 

-controlled carriers to ensure that they are just and reasonable. 

1. Strategies 

 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 anticompetitive conduct with respect to transportation costs or 

services. 

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

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

substantially anticompetitive conduct or unfavorable trade conditions. 

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

determine whether anticompetitive behavior or unfavorable trade conditions exist in U.S. 

trades. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

102 

 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. 

 Assure competitive conditions in the U.S. foreign oceanborne trades by working with 

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

competitive concerns. 

 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 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 and keep up-to-date an electronic library, accessible from the FMC’s website, 

of agreement documents so as to allow interested parties to easily search for and 

download those documents. 

2. Six-Year Performance Measure 

 Percentage share of total U.S. international oceanborne trade moved by containership, as 

an indicator of liner shipping efficiency. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

103 

STRATEGIC GOAL 2 

Protect the public from unlawful, unfair and deceptive ocean transportation 

practices and resolve shipping disputes.

$6,417,599.62

$212,193.42

$687,714.60

$12,912,221.90

Strategic Goal 2

Funding Requirements by Program

Formal Proceedings EEO IG Operational & Administrative

30.60

1.00

2.70

68.35

Strategic Goal 2

FTE Requirements by Program

Formal Proceedings EEO IG Operational & Administrative
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

104 

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. 

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. 

Strategic Goal 2:

Objective 1:

Plan Achieved

70.00% 72.90%

Identify and take action to address substantially anticompetitive conduct or unfavorable trade conditions in U. S. trades

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

FY 2010 FY 2011

72%                                   82% 74.00% 76.00%

Performance Measure 1:                                                                                                                                                                                                                                                                       

Percentage of enforcement actions taken under the Shipping Act of 1984 successfully resolved through favorable judgment, settlement, issuance of default

judgment or compliance letter or notice

FY 2012 FY 2013

Target                          Achieved Target Target
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

105 

1. Strategies 

 Gather intelligence through visible and accessible presence in the regulated community in 

order to identify unlicensed OTIs and other violations. 

 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. Six-Year Performance Measures 

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

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

letter or notice. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

106 

OBJECTIVE 2: 

Prevent public harm through licensing and financial responsibility requirements.

The FMC licenses and regulates OTIs, including ocean freight forwarders and NVOCCs, and 

ensures that OTIs have sufficient financial responsibility. As well, the FMC issues certificates to 

PVOs that have evidenced financial responsibility to satisfy liability incurred for 

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

1. Strategies 

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

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

proof of financial responsibility. 

 Monitor PVO UPR reports and conduct on-site review of PVOs’ UPR receipts. 

 Review and update OTI bonds and coverage amount. 

Strategic Goal 2:

Objective 2:

Plan Achieved

55.00% 65.00%

FY 2013

Target

75.00%

Performance Measure 1:                                                                                                                                                                                                                                                                     

Percentage of decisions completed OTI license applications rendered within 60 calendar days of receipt, facilitating lawful operation of OTIs with the

appropriate character and experience requirements.

Target                          Achieved

60%                                   77%

Target

70.00%

FY 2010 FY 2011 FY 2012

Prevent public harm through licensing and financial responsibility requirements

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

Strategic Goal 2:

Objective 2:

Plan Achieved

90.00% 90.00%

FY 2013

Target

94.00%

Performance Measure 2:                                                                                                                                                                                                                                                                      

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

Target                          Achieved

91%                                    91%

Target

93.00%

FY 2010 FY 2011 FY 2012

Prevent public harm through licensing and financial responsibility requirements

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

107 

2. Six-Year Performance Measures 

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

business days, facilitating lawful operation of OTIs with the appropriate character 

requirements. 

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

coverage required by regulation to protect against loss from nonperformance or casualty. 

.

OBJECTIVE 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements 

through education and outreach.

Note: In consultation with OMB, this outcome goal was removed for FY 2011 – 2015: 

“Percentage of attendees at agency sponsored outreach presentations that rate the program as 

‘Useful’ or ‘Extremely Useful’ in their compliance efforts.” The measure is not reflective of 

current agency outreach practices. It also proved logistically difficult to execute because most 

outreach is performed by FMC staff as invitees at non-FMC sponsored events. 

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. 

Strategic Goal 2:

Objective 3:

Plan Achieved

70.00% N/A

FY 2013

Target

N/A

Performance Measure 1:                                                                                                                                                                                                                                                                               

Percentage of attendees at agency sponsored outreach presentations that rate the program as "Useful" in their compliance efforts

Target                          Achieved

N/A                                 N/A

Target

N/A

FY 2010 FY 2011 FY 2012

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach

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

Strategic Goal 2:

Objective 3:

Plan Achieved

70.00% 77.10%

FY 2013

Target

76.00%

Performance Measure 2:                                                                                                                                                                                                                                                                               

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

Target                          Achieved

72%                                   72%

Target

74.00%

FY 2010 FY 2011 FY 2012

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

108 

1. Strategies 

 Maintain an accessible presence in local regulated communities. 

 Proactively educate regulated parties of regulatory requirements through educational 

presentations. 

 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 by conference 

participation and seminars. 

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

through the Commission’s 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. Six-Year Performance Measures 

 Percentage of attendees at agency-sponsored outreach presentations that rate the program 

as “Useful” or “Extremely Useful” in their compliance efforts.

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

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

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

109 

OBJECTIVE 4: 

Impartially resolve international shipping disputes through alternative dispute resolution 

and adjudication. 

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

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 

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

other shipper complaints. 

 Encourage the use of and provide facilitative ADR services to parties who request 

services of a trained neutral in resolving disputes and shipping problems that affect 

international ocean shipping. 

 Adjudicate disputes under the jurisdiction of the agency through the ALJ, with the 

possibility of appeal to the Commission, use of settlement officers and through 

arbitration. 

Strategic Goal 2:

Objective 4:

Plan Achieved

550 556

FY 2013

Target

800

Performance Measure 1:                                                                                                                                                                                                                                                                               

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

Target                        Achieved

625                                  631

Target

700

FY 2010 FY 2011 FY 2012

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication

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

Strategic Goal 2:

Objective 4:

Plan Achieved

50.00% 56.00%

FY 2013

Target

56.00%

Performance Measure 2:                                                                                                                                                                                                                                                                               

Percentage of formal complaints or Commission initiated orders of investigation will be completed within 2 years of filing or Commission initiation

Target                          Achieved

52%                                  60%

Target

54.00%

FY 2010 FY 2011 FY 2012

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication

Protect the public from unlawful, unfair and deceptive ocean transportation practices and resolve shipping disputes
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

110 

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

behavior accordingly. 

2. Six-Year Performance Measures 

 Number of cases opened and closed each fiscal year using ombuds and ADR services 

assisting consumers to recover goods or funds. 

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

completed within two years of filing or Commission initiation. 
Federal Maritime Commission

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111 

Appendix A 

Workload Statistics: 

Office of the Secretary

 

Formal Proceedings Program

Office of the Secretary

 

Statistical Workload Summary 

 

Workload Units 

 

Fiscal 2011 Actual Fiscal 2012 Estimate Fiscal 2013 Estimate 

 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 Receipts Output 

On Hand 

09/30/12 Receipts Output 

On Hand 

09/30/13 

Decisions, 

Reports, in 

Docketed 

Proceedings 

Before the 

Commission* 15 46 41 20 46 46 20 50 50 20 

Commission 

Inquiries, 

Information 

Requests, or 

Demand Orders * 1 0 1 0 2 2 0 3 3 0 

Administrative 

Notices Issued in 

Proceedings * 0 43 43 0 45 45 0 48 48 0 

Docketed Informal 

Complaints 19 12 19 12 11 20 2 13 13 2 

Agenda Items* 0 100 100 0 100 100 0 110 110 0 

Pages of Minutes* 0 133 133 0 130 130 0 140 140 0 

Federal Register 

Notices 0 149 149 0 200 200 0 200 200 0 

FOIA Requests 20 38 23 35 40 30 30 45 32 43 

Certifications 0 25 25 0 50 50 0 60 60 0 

* Previously, Commission workload statistics for these 3 categories were reported under "Commission Docketed Proceedings (Formal, 

Special & Informal)", and "Commission Non-Docketed Proceedings". Workload statistics for this area of the Commission's Formal 

Proceeding Program have been separated into 3 categories to more efficiently track and report these Commission statistics. 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

112 

Office of Consumer Affairs and Dispute Resolution Services (CADRS)

On Hand 

09/30/10 Receipts Output

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13

Informal 

Complaints 93 565 634 24 575 575 24 575 575 24

ADR Matters 1 12 9 4 10 10 4 10 10 4

Informal Docket 

Decisions 26 12 22 16 12 18 10 12 14 8

Formal Proceedings Program

Consumer Affairs and Dispute Resolution Services

Statistical Workload Summary

Workload Units FY 2011 Actual FY 2012 Estimate FY 2013 Estimate
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

113 

Office of the General Counsel

Formal Proceedings Program

Office of the General Counsel

 

Statistical Workload Summary

 

Workload Units FY 2011 Actual FY 2012 Estimate FY 2013 Estimate 

 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 Receipts Output 

On Hand 

09/30/12 Receipts Output 

On Hand 

09/30/13 

Litigation 3 4 2 5 2 2 5 2 2 5 

Legislation 0 105 105 0 115 115 0 125 125 0 

Legal Opinions, 

Recommendations, 

Case Summaries, 

Decisions and Final 

Orders 5 172 172 5 135 135 5 130 130 5 

Sec. 19/sec. 13 

(b)(5) FSPA 

Proceedings 1 0 1 0 2 1 1 1 1 1 

International Affairs 

Reports, Policy 

Papers, Briefings, 

Controlled Carrier 

Recommendations 0 30 30 0 35 35 0 40 40 0 

Speeches, Articles, 

Presentations 0 15 15 0 20 20 0 25 25 0 

Interagency & 

International Group 

Participation 0 30 30 0 35 35 0 40 40 0 

Response to 

Requests for 

Information, Oral & 

Written 0 275 275 0 280 280 0 285 285 0 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

114 

Office of the Administrative Law Judges

 

Workload 

Units

On Hand 

09/30/10 Receipts Output

On Hand 

9/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13

Formal 

Proceedings 13 12* 13** 16*** 12 17 11 12 13 10

Special 

Proceedings 0 00 0 00 0 00 0

Informal 

Proceedings 0 00 0 00 0 00 0

A decision counted as "Output" may or may not completely resolve a proceeding.

* Includes one proceeding (08-04) returned by rule after unreview ed initial decision for decision on attorney's fees.

** Includes one proceeding (08-04) resulting in tw o initial decisions (one finding liability, one aw arding attorney's fees) 

 and one proceeding (10-10) w ith three initial decisions (one dismissing respondent, tw o approving settlements).

*** One proceeding in w hich OALJ issued an initial decision not resolving all claims (08-03) is counted as "output"

 and "on hand."

Formal Proceedings Program

Office of Administrative Law Judges

Statistical Workload Summary

FY 2011 Actual FY 2012 Estimate FY 2013 Estimate
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

115 

On Hand 

09/30/10 Receipts Output

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13

Agreements Filed 4 159 158 5 170 165 10 170 170 10

Rulemakings, 

Proceedings, 

Petitions,Demand 

Orders*

0 00 0 22 0 10 1

Waiver Requests 0 33 0 55 0 55 0

Bureau Reports ** 0 104 104 0 104 104 0 104 104 0

Agreement Reports

 Minutes 7 797 625 179 825 996 8 850 850 8

 Monitoring 9 365 308 66 382 446 2 401 401 2

 VSCG 1 104 77 28 110 133 5 116 116 5

Service Contracts 0 49,103 49,103 0 48,960 48,960 0 49,700 49,700 0

Contract Amds 0 467,169 467,169 0 391,680 391,680 0 372,750 372,750 0

Special Permissions 0 77 0 77 0 77 0

NVOCC Service 

Arangements 0 1,264 1,264 0 1,300 1,300 0 1,325 1,325 0

Arrangement 

Amendments 0 3,460 3,460 0 3,500 3,500 0 3,500 3,500 0

FMC-1 Form 0 1,399 1,399 0 1,425 1,425 0 1,450 1,450 0

Informal Inquiries *** 0 2,715 2,715 0 3,500 3,500 0 3,600 3,600 0

* Rulemakings: FY 2012 E-filing of Reports and User Fees.

FY 2013 Update of Agreement Rules and E-filing of Agreements.

** Bureau Reports - include w eekly reports to Commissioners on agreements filed and w eekly

Federal Register Notice reports.

*** These numbers are higher than in previous years due to a change in the tracking system for

informal inquiries and the types of inquiries included in this figure. 

Operational and Administrative Program

Bureau of Trade Analysis

Statistical Workload Summary

Workload Units FY 2011 Actual FY 2012 Estimate FY 2013 Estimate

Bureau of Trade Analysis
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

116 

Bureau of Certification and Licensing

 

On Hand 

09/30/10 Receipts Output

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13

OTI Applications 

New *

62 496 506 52 465 470 47 465 470 42

OTI Applications 

Amended * 27 277 262 42 285 290 37 285 290 32

OTI License 

Terminations ** 0 310 310 0 300 300 0 300 300 0

Passenger 

Vessel 

Applications 

(Performance) 3 22 22 3 15 15 3 15 15 3

Passenger 

Vessel 

Applications 

(Casualty) 10 26 24 12 20 15 17 20 15 22

*

** Revoked or surrendered licenses not subsequently re-issued.

requiring the issuance of a license. 

OTI application output figures include the number of: (1) approvals for license; 

(2) voluntary w ithdraw als; (3) closing of applications; and (4) other changes not 

Operational and Administrative Program

Bureau of Certification and Licensing 

Statistical Workload Summary

Workload Units FY 2011 Actual FY 2012 Estimate FY 2013 Estimate
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

117 

On Hand 

09/30/10 Receipts Output

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13

Audits and 

Monitoring 

Activities 15 100 106 9 130 130 9 130 130 9

OTI Applicant and 

License Checks 0 620 620 0 625 625 0 650 650 0

Formal 

Proceedings 7 32 8 6 8 6 7 7 6

Civil Penalty Cases 12 17 16 13 23 20 16 22 22 16

Staff Legal Advice 11 5 4 12 11 10 13 12 12 13

Operational and Administrative Program

Bureau of Enforcement

Statistical Workload Summary

Workload Units FY 2011 Actual FY 2012 Estimate FY 2013 Estimate

Bureau of Enforcement
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

118 

 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

119 

Appendix B 

Certification of the Office of Inspector General’s Fiscal Year 2013 Budget Request 

FEDERAL MARITIME COMMISSION

Office of Inspector General 

Washington, DC 20573-0001 

 

Office of Inspector General 

 

The Inspector General Reform Act (P. L. 110-149) was signed by the President on October 14, 

2008. Section 6(f)(1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was amended to 

require certain specifications concerning Office of Inspector General (OIG) budget submissions 

each fiscal year. 

Each inspector general (IG) is required to transmit a budget request to the head of the 

establishment or designated Federal entity to which the IG reports specifying: 

 The aggregate amount of funds requested for the operations of the OIG, 

 The portion of this amount requested for OIG training, including a certification from the 

IG that the amount requested satisfies all OIG training requirements for the fiscal year, 

and 

 The portion of this amount necessary to support the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE). 

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include: 

 An aggregate request for the OIG, 

 The portion of this aggregate request for OIG training, 

 The portion of this aggregate request for support of the CIGIE, and 

 Any comments of the affected IG with respect to the proposal. 

The President shall include in each budget of the U.S. Government submitted to Congress. 

 A separate statement of the budget estimate submitted by each IG, 

 The amount requested by the President for each OIG, 

 The amount requested by the President for training of OIGs , 

 The amount requested by the President for support of the CIGIE, and 
Federal Maritime Commission

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120 

 Any comments of the affected IG with respect to the proposal if the IG concludes that the 

budget submitted by the President would substantially inhibit the IG from performing 

duties of the OIG. 

Following the requirements as specified above, the Federal Maritime Commission inspector 

general submits the following information relating to the OIG’s requested budget for fiscal year 

2011: 

 The aggregate budget request for the operations of the OIG is $764,127 

 The portion of this amount needed for OIG training is $6,500, and 

 The portion of this amount needed to support the CIGIE is $2,000 

I certify as the IG of the Federal Maritime Commission that the amount I have requested for 

training satisfies all OIG training needs for fiscal year 2013. 

Inspector General 

Federal Maritime Commission 
Federal Maritime Commission

FY 2013 Budget Estimates submitted to the Appropriations Subcommittees

121 

Appendix C 

Employee Satisfaction and Wellness 

Over the last several surveys of employee satisfaction and engagement conducted by the U.S. 

OPM, the FMC has received overwhelmingly positive feedback. Surveys in 2008 and 2010 

resulted in FMC being recognized as one of the Federal Government’s Best Places to Work. 

Analysis of the components of employee satisfaction and wellness measured in the 2010 Federal 

Employee Viewpoint Survey (FEVS) underscored the overall high level of satisfaction among 

FMC employees. The Commission ranked fifth out of 30 small agencies in the areas of work/life 

balance and family friendly culture and benefits. However, employees noted some areas where 

continued management attention would be desirable. Based on that feedback, the FMC 

expanded its offerings of information about Federal benefits and work/life programs, and worked 

to increase organizational awareness about telework as a valuable tool to improve productivity 

and enhance work/life balance. 

 The Commission used its employee financial education plan to increase employee 

awareness about their benefits. 

o The Social Security Administration has helped educate FMC employees about 

how their benefits fit into Federal retirement planning at annual Open Season 

Benefits Fairs since 2009. 

o An information session was hosted for FMC employees about the Federal Long 

Term Care Insurance Program’s Open Season in May 2011. Attendance was 

open to other Small Agency Human Resources Council members. 

o The Commission’s Employee Assistance Program contract provides access to a 

financial consultant via telephone at no cost. 

o Membership in the U.S. Government Printing Office’s (GPO) Federal Credit 

Union is open to all FMC employees and their dependants. Credit union staff 

attended the Commission’s Open Season Benefits Fair in 2011 to discuss the 

benefits of membership and accept new applications. 

o The Commission purchases a subscription each open season for its employees to 

use Consumers’ CHECKBOOK Guide to Health Plans for Federal Employees and 

Annuitants. This online publication helps employees compare features of the 

various health plans offered through the Federal Employees Health Benefits 

Program (FEHB). 

o Asparity Design Solutions sent a representative to the Commission’s Open Season 

Benefits Fair in December 2010 and 2011 promoting PlanSmartChoice, a decision 

tool that ranks FEHB plans according to value and quality. 

o The Federal Thrift Retirement Investment Board presented a pre-separation 

briefing at the FMC’s headquarters in November 2011. Attendance was open to 

employees who were retirement eligible or would become eligible within the next 

five years. Twenty-seven FMC employees and fourteen employees from other 

agencies that share office space with the Commission attended. A Thrift Savings 
Federal Maritime Commission

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122 

Plan Overview Briefing for new and mid-career employees has been tentatively 

scheduled for March 2012. 

 The Commission offers three employee newsletters on an ongoing basis that target 

wellness and benefits information to employees at various career and life stages. Weekly 

Retirement Readiness NOW Tips prepared by OPM’s Retirement Services staff are 

distributed to FMC employees. 

 The Commission partners with Blue Cross and Blue Shield and Virginia Hospital Center 

to present lunch and learn seminars to FMC employees about health and wellness topics. 

An April 2011 seminar on strategies for naturally increasing metabolism was attended by 

20 FMC employees and 8 employees of other Federal agencies that are located within our 

headquarters building. 

The Commission’s 2011 FEVS Action Plan included a focus on increasing employee awareness 

of child care and elder care work/life programs. During fiscal year 2011, the Commission 

communicated with employees through e-mail and newsletter articles about elder care resources 

and support available through the EAP, government agencies, and other partners. The 2011 

FEVS results showed an 11 percent increase in employee satisfaction with the Commission’s 

elder care program. 

Over the last year, FMC also worked to increase organizational awareness about telework as a 

valuable tool for effectiveness and a way to enhance work/life balance by benchmarking best 

practices and adapting them to FMC’s mission and culture. The 2011 FEVS results showed that 

52 percent of employees were satisfied with the FMC’s telework program, a 5 percent increase 

from the 2010 results. 

The Commission announced a revised employee telework policy in June 2011, which 

incorporated changes required by the Telework Enhancement Act of 2010. As part of these 

policy changes, the Commission designated an executive champion for telework, established 

mandatory training for supervisors and managers, as well as employees who had never 

teleworked, and revised the Commission’s telework agreement to better clarify expectations. 

Telework has been used successfully at the Commission to maintain operations during periods of 

inclement weather and road closures along major commuting routes in the Washington, DC 

Metro Area. 

In October 2011, the Commission completed an updated needs assessment of health and wellness 

services available to employees who work at its headquarters. The assessment was conducted 

using the WellCheck online tool made available by OPM. Similar assessments were conducted 

in 2009 and 2010. WellCheck scored the Commission on each of the five elements identified by 

the U.S. Department of Health and Human Services as being part of a comprehensive worksite 

wellness program. The Commission received a rating of “very good” on four of the elements, 

including health education, supportive social and physical environments, screenings, and 

integration of the worksite wellness program into the organizational structure. The Commission 

was rated “outstanding” on the remaining element, which involved linkages between worksite 

wellness and the related program. 
Federal Maritime Commission

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The Commission will continue to participate in WellCheck or other worksite wellness program 

assessment tools provided by the U.S. Office of Personnel Management on an annual basis to 

gauge the effectiveness of its investment in worksite wellness. The Commission’s senior 

management uses the results of WellCheck in conjunction with FEVS survey responses to 

identify action items for creating a culture of worksite wellness at the FMC. 

Based on the 2010 FEVS results, the Commission also ranked fifth out of 30 small agencies in 

the area of creativity and innovation. Senior management remains committed to encouraging 

creativity and finding innovative ways to improve employee satisfaction and engagement, 

particularly in a time of fiscal restraint. About 45 percent of the FMC’s workforce will be 

eligible for voluntary retirement by September 2016. Fostering an engaged workforce is 

essential to ensure the Commission is well positioned to recruit and retain talent. 

The Commission conducted a detailed analysis of responses to the 2011 Federal Employee 

Viewpoint Survey to identify areas where the FMC should focus its improvement efforts during 

the coming fiscal year. Employees once again indicated their high level of commitment to 

achieving FMC’s mission. However, they also identified rewards and recognition as needing 

improvement. A major priority in 2012 will be to identify ways that we can better align and 

strengthen the linkage between our rewards and recognition programs with the accomplishment 

of goals and objectives identified in the FMC’s Strategic Plan. These efforts should help to 

reinforce overall employee satisfaction, commitment, and engagement.