FEDERAL MARIT

COMMISSION

25th

Annual Rep

for

Fiscal Year

1986

TABLE OF C

LETTER OF TRANSMITTAL

MEMBERS OF THE COMMISSION 

I THE FEDERAL MARITIME COMMISS

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW

A Introduction 

B Surveillance 

C Tariffs and Service Co

D FiveYear Report to Con

E Countervailing Sanction

III SURVEILLANCE

A General 

B Agreements and Trade Co

C Service Contracts 

D Freight Forwarders 

E Non Vessel Operating Co

IV DEVELOPMENTS IN MAJOR DS 

A Transatlantic 

B Mediterranean 

C Africa 

D Transpacific 

E Latin America and The C

F Middle East 

G Worldwide 

H Marine Terminals 

V TARIFF AUTOMATION
VI SECTION 18 STUDY

TABLE OF CONTE

A Section 18 The Mandate 

B The Data Collecting Tas

C Consultation With Other 

D Analysis of the Impact 

E FMC Progress To Date 

VII SIGNIFICANT OPERATING ACT

A Office of the Secretary 

B Office of Administrativ

C Office of the General C

D Office of the Managing 

E Bureau of Agreements an

F Bureau of Tariffs 

G Bureau of Economic Ana

H Bureau of Hearing Coun

I Bureau of Investigation

J Bureau Of Administratio

APPENDICES

A Organization Chart 

B Commission Proceedings 

C Agreement Filings and S

D Tariff Filings and Stat

E Civil Penalties Assesse

F Field Investigations 

G Statement of Appropria

Receipts for the Fisca

September 30 1986 

H Example of MarketShare 

I Outline of Survey Ques

J Conference Proceedings 
Met of tht Outman

Jgeberal Maritim

3ashingtun 

To the United States Senat

House of Representatives

Pursuant to section 

Plan No 7 of 1961 and s

Marine Act 1936 as amen

the twentyfifth annual re

Federal Maritime Commissio

ending September 30 198

MEMBERS OF TH

Edward V Hickey Jr

Chairman

Appointed 1985

Term Expires 1991

R Virginia

Eduard J Philbin

Commissioner

Appointed 1985

Term Expires 1989

R California

Francis 

Comm

Appoin

Term Ex

D 

THE FEDERAL MA

A H

The Federal Maritime Co

independent regulatory agency 

effective August 12 1961 

Commission sregulatory fun

Federal Maritime Board wh

regulation of ocean commerce 

Merchant Marine As succe

Board the Commission was cha

the regulatory provisions of 

shipping laws of the United 

two categories regulatory 

responsibilities associated 

and efficient US Merchant 

Maritime Administration now 

of Transportation The Fede

responsible for the regulatio

United States as required by 

subsequently enacted Shipping 

B FU

The Federal Maritime Com

Federal statutes Chief amo

of 1984 and 1916 the Interc

the Merchant Marine Acts of 1

of 1984 represents a major c

facing shipping companies 

commerce of the United States
The Commission sregulat

Reviewing and mo

carriers and other 

foreign commerce 

conference poolin

charter agreements

Receipt and review 

regulation of rate 

engaged in the OS 

Protecting shipper

foreign commerce 

restrictive or n

regulations of fo

practices of foreig

adverse effect on 

States

Protecting the r

companies to transp

foreign trades

Regulating rates 

tariffs and practic

the domestic offsho

Licensing of in

forwarders

Issuing passenger 

financial respons

charterers to pay ju

death or to repay f

a voyage or cruise

Investigating dis

classifications a

carriers termina

forwarders operati

domestic offshore c

Rendering decisions 

rules and regulation

US foreign and 

terminal operators 

persons subject to 

States
The Shipping Act of 1984 

become effective under the Ac

as contained in the Sherm

Commission reviews and evalu

they do not exploit the grant 

ensure that agreements do not 

Act or result in an unreason

cost or unreasonable reduction

In addition to monitoring 

the Commission is also re

individual carriers as well 

to act in concert fairly tr

of the shipping public Th

unduly discriminating among 

the shipping public The Act 

their rates charges and pr

tariffs that must be on file 

may only assess the rates an

file with the Commission T

have the authority to appro

increases or individual com

foreign commerce except wit

government owned carriers

The Commission car

responsibilities by condu

investigations It also hold

and renders decisions and 

implementing rules and regu

adjudicates disputes involvin

general shipping public and 

interest groups
C ORG

The Federal Maritime C

Commissioners appointed for f

with the advice and consent 

three members of the Comm

political party The Pre

Commissioners to serve as C

chief executive and administ

The Commission s orga

Office of the Managing Dire

Office of the General Couns

Judges Bureau of Economic A

Trade Monitoring Bureau o

Counsel Bureau of Adm

Investigations The Managing 

in providing executive and a

Commission sOffices and Bure

are responsible for the Coms

provide administrative suppo

In fiscal year 1986 th

total of 214 fulltime equiv

appropriation of 11360 00 

Commission spersonnel are lo

District Offices in New Yor

New Orleans Miami and Hato 
THE YEAR 

A INTR

During fiscal year 198

the Federal Maritime Comm

independent regulatory agency 

1984 continued to dominate th

shipping industry Most o

involved implementation of 

innovative commercial com

opportunity to compete for 

commercial cargo

This part of the An

synopsis of the Commission s

year 1986

B SUR

In keeping with the re

of 1984 the Commission 

combinations such as joint v

designed to meet technologic

These innovative shipping c

eliminating uncertainty as 

arrangements may become effe

preemptive review of new 

Commission has significantly 

enforcement efforts See a

Commission s emphasis from 

agreements to posteffective 

coordinated effort between 

Trade Monitoring Investigat
1 Agreements and Trade M

A major reason for the 

of 1984 was to expedite th

Commission has been very su

provisions The Commissio

statutory requirement of rev

competitive effects within 4

streamlined procedures rev

thorough but much prompter 

agreements which result in be

The Commission has

agreement processing and

the operational impact of

program of trade monitoring 

review individual agreements 

significant number of Commi

entire trade routes which m

several agreements The a

backdrop of maritime indus

individual agreements can be 

of relationships between ag

uncover violations of the sh

be targeted for enforcement a

2 Enforcement

In exchange for redu

Shipping Act of 1984 has giv

authority to assess civil pe

the new legislative scheme 

compete is assured through 

wrongdoing

Enhancing the enforceme

major initiatives of fiscal 

Commission has increased

training consolidated

enforcement staff with

Commission

fiel

oth

has also ente

also 

tow

agre

its 

Understanding with the US C
two agencies will exchange i

trade activity These effort

uncover the major substan

rebating which undermine 

carriage scheme contemplated b

The role of Hearing Co

of the statute sviolators 

emphasis By enhancing th

increasing training and 

relationship with other agen

confident that the improved 

will significantly deter viola

Specific activities duri

Of the 538 new agreeme

the Commission 137 w

review and only 4 requi

for review beyond the 45

All conference agreeme

with the form and conte

1984 Act

The Commission develo

monitoring report T

Report

Seventeen investigation

resulting in civil pena

An industry expert on 

as a consultant to deve

better uncover major ma

The first service contr

C TARIFFS AND 

1 Foreign and Domestic Ta

The Commission has co

increasing number of foreign 

annually During fiscal yea

pages were filed represent

rate charges Independent a

these filings In several 
information proved invaluab

grow it is becoming incr

retrieve the necessary info

others the Commission is 

filings as described more fu

2 Service Contracts

During fiscal year 

Contracts was formed to recei

and provide input into 

proceedings During the firs

the number of service contra

rapid rate but leveled off 

the decision by several con

members service contracts a

significant portion of ca

contracts particularly in t

and Japan

3 Tariff Automation

The Commission is pro

filing with the goal of even

environment Recently th

committee representing 19 

feasibility

tariff automation

study

presente

See a

Commission proceed with auto

for a prototype system awarde

Specific activities duri

Processing and analyzing 

Issuing a comprehensive 

filing of service c

essential terms based 

since the 1984 Act becam

Rulemakings involving 

Hawaii the OS Virgin 

and domestic terminal ex
D FIVETEAR RE

The Commission also has 

on the effects of the 198

regulate The 1984 Act repre

of foreign oceanborne commerce 

Act 1916 and as such Cong

in closely monitoring the Acs 

Congress on an ongoing ba

correspondence and hearings 

comprehensive fiveyear repo

Commission sBureau of Econo

gathering and processing the 

maintaining an open door 

information and this has i

During fiscal year 1986 se

Act s effects were sent to pa

including carriers conferenc

terminal operators See also 

Commission sponsored a sy

University in Norfolk Virg

almost 200 members of the ma

Act s impact so far The rec

responses to the survey prov

review of the almost threeyea

Specific activities duri

Three meetings were he

the government agencies 

specified by the 1984 A

and Transportation and t

A Carrier Study Group a

formed to facilitate in

1984 Act for the Ocean S
E COUNTERVAILING SANC

UNDER SECTION 19 OF THE M

SECTION 13b5 OF T

1 Section 19 of the Merc

A significant portion 

during fiscal year 1986 invo

Marine Act of 1920 which g

retaliate when an action 

commercial entity creates 

foreign ocean trades 

opportunity to compete fo

commercial cargo The Comm

latitude in forming these s

generally proposed sanctions 

or barring the carriers of th

tariff suspension Discrim

upon USflag carriers ar

practices but the Commissi

protectionism such as cargo 

problems relating to inte

services

During fiscal year 198

cargo reservation laws in 

Colombia Further the Comm

in Japan on the use of 9 12f

called highcube container

cargo than standard 8 12

constrained the efficiency 

flag which have incorporate

their operations The Japan

implementing a number of libe

to be allowing highcube con

Japanese roads

As of the end of fisca

closely monitoring activity 

determine whether formal sect

While some progress is evid

watched very carefully to in
whatever improvements are ma

lived or replaced by differen

free movement of international 

2 Section 13b5of the S

The 1984 Act gave the 

action when a foreign governme

alone or in concert with any 

access of USflag vessels to 

ports It is essential that 

serve foreigntoforeign trade

intermodal networks the ab

crosstrades can be a vital fa

carrier soperations While 

cases filed at the Commissio

have received informal expre

problems in the Asian cross 

always prepared to look int

problems should they arise

Specific activities durin

Two formal requests for 

of the 1984 Act from ca

the first concerning th

highcube containers an

impact of the liberalizin

In response to sever

concerning a Peruvian 

Commission sought inform

a FEDERAL REGISTER noti

Based upon assurances 

the Commission has place

sixmonth period at w

Peruvian measures will b

In response to a pe

concerning a Colombian 

Commission has sought 

REGISTER notice and di

State Department

of Investigations

I

SURVEI

A G

In response to the 

Commission during fiscal ye

programs to monitor and s

maritime industry These prog

detect malpractices but to mea

to amass a body of knowledg

address the changing order of 

During fiscal year 1986 

were expanded and refined foc

conditions service contracts 

non vessel operating common c

As a vital adjunct to 

programs in the latter part o

and the Bu

Monitoring began to take the 

interbureau cooperative eff

Commission with another tool 

provisions of the Shipping Act 

The goal of this eff

investigative function and t

the Commission in the common 

about the industry to enable 

effective monitoring and enfor

While this effort was s

the end of fiscal year 1986 

working relationship will ex

bureaus will exchange informa

will benefit the Commissios

program

1
B AGREEMENTS A

Under present statutor

responsible for maintaining 

activities of parties to file

to its jurisdiction in order 

with the Shipping Act 1916 

Commission rules and regu

Monitoring in the Bureau of 

is charged with the respo

activities Appendix C in

agreements filed with the Co

The drastic changes w

area of agreement processin

significant impetus for trad

statute it is clear that 

subject to rejection for tec

the standards of Section 6g 

should be permitted to tak

maintaining surveillance ove

order to satisfy this statuto

possible violations of othe

Act the Bureau of Agreemen

its surveillance activities 

monitoring area

In the previous fiscal 

to the expanded commercial f

Act formed several of the l

the history of the Commissi

Pacific trades the Transp

and the AsiaNorth Ameri

encompass the trading areas 

trade of sixteen previous 

all of the major carriers se

Accordingly in fisca

Agreements and Trade 

monitoringsurveillance progr

indepth review of selecte
covered by the super con

surveillance reports includin

cargo tonnages of majorm

identification relevant tari

use of service contracts 

analysis as well as an a

malpractices was planned 

issued its first indepth surv

the MediterraneanUnited State

provided an overall assessmen

and suggested areas of focus 

shipping act violations Dat

the USBrazil trades has bee

will be completed in early 198

Indepth surveillance re

trades have been schedule

Notwithstanding the Bureau h

program for monitoring the cur

key trades each quarter T

commence in 1987 and is inten

with timely trade informa

effectively trade problems as 

Other activities of th

during the past fiscal year i

analysis of proposed equal a

Section 6g of the 1984 Act 

for a USJapan trade profi

the first quarter of fiscal 

Bureau

of economic

of Hearing

interrogatories

Counsel in a

Additional activities p

year include preparation of 

topics of regulatory imp

anticipation of congression

Bureau s monitoring office w

impact under the 1984 Act of 

by carriers within a confe

Other topics will be developed 
C SERV

The Shipping Act of 19

a contract between a shippe

conference in which the shi

to a certain rate and def

carrier commits a certain 

period of time to that 

contracts was immediate and 

year 1986 The Bureau 

Investigations jointly in

service contracts

The Bureau of Inve

reviews of selected serv

carriers and conferences a

contracts and to ensure that 

Act of 1984 are treated app

audits provide the Commissio

service contracts upon the m

During the fiscal yea

written by more than 50 ocea

scheduled for audit The c

chosen to provide a broad p

commodities and trade route

the service contract audit 

major activity of the Bureau 

D FREIG

Although the ocean 

program has been ongoing 

fiscal year 1986 the Bure

Office of Freight Forwarde

streamlined the program 

participation given the lim

This streamlining permitted 

conducted during the fiscal 
E NON VESSEL OPERA

Until the passage of th

Vessel Operating Common Carrie

their existence they were cre

the Commission After the pa

1984 and its enactment unto law 

some form of oversight was in 

Common Carriers

Thereafter an audit p

Non Vessel Operating Common Ca

those that maintain active tar

Non Vessel Operating Common 

program are contacted for 

commission field personnel 

shipment files processed unde

1986 was the first full fiscal 

Although manhours dev

limited 22 audits were co

continue at an increased level 

1

I

DEVELOPMENTS IN MAJOR 

A TRAN

No significant conferenc

took place in these trades d

US AtlanticNorth Europe Co

Atlantic Conference installed 

control over the use of servic

However since neither conf

service contracts prior to es

individual contracts were a

between the two conferences a

Ocean Lines respectively w

year and appear to have had s

trades since these lines rep

conference operators in the 

provide for voluntary discussi

service contracts

A two party rate agree

trade between North Europe 

This agreement faces substan

and is not expected to have a 

By and large the US 

including the United Kingdom 

have experienced the least am

any of the major US fore

tonnaging is still a problem 

the conference lines and the 

prevail and has contributed to 

the trade enjoys A signific

and other major trades is the 

have worked within the system 

and no individual service c

rationalization and cooperat

1
rates at remunerative le

committed themselves to e

beginning

A new joint containe

010823 between Canadian T

was established in the Euro

agreement authorizes the o

1700 TEU capacity

The Atlantic Contai

Agreement No 207 009848 

the GulfEuropean trade 

AtlanticEuropean operation

authority by 5 vessels 

subsequently split off i

Container Lines and ACL G

entered into Agreement No 

operation of up to 20 ve

GulfEurope trade

Agreement No 217 0108

Liners AS to charter vess

the Northern Europe to US 

to the operation of up to si

vessels per month in the tra

Agreement No 2070108

Lines Joint Venture with a

956 4000 TEU vessels in the 

Agreement No 207 01

Transport Line in the US 

The agreement which is betw

Automar VI Corporation is 

vessels in the trade and 

first joint service to be 

operators since the 1984 Act 

Agreement No 203 0

rationalization and ratema

operations of up to 20 Ne

vessels in the USUK Ire
B MEDIT

Competition in the At

trades has been unusually dis

due to excessive overtonnagin

carriers serving adjacent trad

the conferences to deal effect

US Atlantic and GulfItaly 

Conference terminated its agre

several attempts failed to ho

has yet been filed to replace 

In the westbound trad

Conference has been similarly 

membership and to boost its 

space chartering among its m

some subtrades and short n

drastic action was the rec

conference in the Mediterrane

obviously not the start of a 

Act trend of conference merg

certain situations a more loca

suited to dealing with the pa

trade

The US Pacific CoastM

contrasts sharply with that o

Coasts Membership and 

MediterraneanNorth Pacific C

been fairly stable and the co

institute some modest genera

year The reasons for this c

However it probably has some

the West Coast trade is a l

suffered from as much 

competition as the other trad

providing minilandbridge serv

discourages many foreign flag 

basis

2
The scope of the M

agreement between Italian L

No 207 010737 was expande

to serve ports on the Blac

and adjacent waters the Re

all ports on the African co

Agreement No 203 010

USA Freight Conference 

North Atlantic Pool auth

matters of mutual concern in 

effective An accompanying 

North Atlantic Pool Agreem

the parties to discuss rate 

to MEDUSA

Agreement No 213 

Trasatlantica Space Cha

authorizes the operation of 

the US AtlanticMediterra

This agreement was subsequ

parties to agree upon rates 

members of a conference or r

Agreement No 213 01

Charter and Sailing Agreeme

up to eight linehaul RoRo 

GulfItaly Spain and France 

C 

The only significant 

African trades during the y

geographic scope of the 

Conference to include rate 

at ports and points on the US 

and Hawaii The primary 

regard is to be able to 

service from the Pacific 

established a 48 hour indepe

on cargoes originating at p
Washington Oregon California 

contrasts with a 10 day notice 

Although the American 

experienced some fluctuation 

nothing to indicate any seriou

trade

The CAMSHIPBWAL Westbo

217010858 between Cameroo

West Africa Line was the su

additional information pursuan

Act The agreement was u

effective

Agreement No 2170108

Charter Agreement authorizes 

charter space on Safmarine 

USAfrica trade Safmarine to 

operating in its USEurope 

Europe to Southern Africa an

space for on carriage of carg

which is moving in the 

Agreement No 217010882 a s

USL Safmarine and the Sou

Service SEACS authorizes t

vessels for USL and Safmarine 

and Southern Africa and comp

trade contemplated under Agree

D TRAN

Severe overtonnaging and 

to plague the Transpacific tra

Depressed rates and chaotic 

HapagLloyd and Lykes Bros S

from the various rate groups 

Evergreen Line also withdre

Westbound Rate Agreement TWR

Rate Agreement ANERA but 

independent thus providing str

for these groups

23
All rate groups introd

level of rates and to stab

TWRA which encompasses all 

East removed the right of 

forwarder compensation and 

over the use of individual s

of phasing out such contrac

ANERA which serves 

authorized its members to 

collective rate reductions 

established central contro

established authority to 

members to container and c

required the managing dire

discuss a proposed indepen

period and 5 required e

publication costs of its ind

The Japanese eastbo

authority for its members 

of another member without 

introduced intermodal rate 

3 established central au

contracts 4 required m

contracts extending beyond 

those contracts for confe

introduced a provision whic

on commodities during the f

negotiations The Commissio

the last amendment to be co

Shipping Act of 1984 and 

agreement

The Neptune Orient 

LineKawasaki Risen Kaisha S

Agreement Agreement No 21

addition of Yamashita Shin

containerships in the agrees
As a result of Hapag 

trade the Sea LandHapagLloy

and Sailing Agreement 21701

effective on November 1984 te

Agreement No 203010852 

Agreement in the Far EastUS 

made the subject of a for

information pursuant to sect

December 1985 This agree

parties who filed Agreem

authorized them to enter 

understandings and agreement

rationalization arrangements in 

Agreement No 2170

Reciprocal Space Charter Agre

to make vessel capacity availa

available or dedicated capacity 

Agreement No 213 010879 

Corporation and Japan Line to 

maximum of 18 vessels with an 

TEU s in the USFar East tra

Agreement No 2250108

operate as Hanjin s general ag

New Jersey for the carriage 

Far EastUS trade

Agreement No 217 01089

Islands LineGearbulk Contain

Sailing Agreement in the Japan

The AustraliaUnited Sta

010894 authorizes the partie

common negotiating position 

Livestock Corporation concerni

in the Australia to US trade

Agreement No 203 010905 

Far EastUnited States Discus

major JapaneseFlag operators 

2
E LATIN AMERI

Conferences and rate 

Central America and 

traditionally affected by 

resulting in relatively uns

freight rates Fiscal Year 

historic condition Almost 

areas experienced problems 

competition which manifeste

constant membership changes 

activity in these trades w

agreement among the regu

Atlantic and GulfNetherland

Bonair Curacao Liner Associ

Other conference 

liberalization of indepen

FloridaCaribbean Liner Ass

day and the US Atlan

Association from ten days 

addition of intermodal a

GulfSouth Eastern Caribbean 

Agreement No 20701

joint service in the GulfCa

Agreement No 20301

SeaLand Agencies to provide 

general agency and intermod

USSouth and Central Ame

Several of the Argenti

revenue pooling agreements 

the fiscal year to accommo

service of Gulf ports throug

Agreement No 217 01

authorizes SeaExpress to ch

SeaEscape cruise vessels op

Bahamas
A new carrier rate a

Association 202010982 

FloridaBahamas trade

The Hispaniola Discussi

established in the US A

USVIHaitiDominican Repu

Agreement No 203 0109

Agreement in the US A

U SVIMexicoCaribbean Cen

This agreement was the sub

request for additional inform

of the 1984 Act

Agreement No 2020109

Shipowners Association a ra

FloridaCaribbean trade

The Island Ocean Term

which authorizes the partie

accessorial services at Puert

the 1984 Act with regard to 

commerce The Commission s

under the Shipping Act 1916 

domestic offshore commerce wa

the fiscal year

Agreement No 204 01098

Access and Sailing Agreemen

review under the Shipping Act 

the fiscal year

F MIDD

Conference activity in 

minimal during the year 

place the merging of the Re

8900 Lines Rate Agreement a

CoastMiddle East and West A

India Bangladesh and Burma

2
Agreement No 20

NedLloydBarber Blue Sea 

Reciprocal Space Charter and 

the agreement on rates and p

G W

Agreement No 203 01

Commission Study Agreement f

FMC in developing informati

international shipping issue

Act

Agreement No 226 0109

Global Equipment Managemen

controls 17 carriers em

equipment on a worldwide ba

Agreement No 2070109

joint service in US trade

to 12 vessels Agreem

ScanCarriers and the Barbe

cooperative working arrangem

rationalization of services 

H MARIN

The Port of New York 

Agreement authorizes six 

establish rates charges a

clearance and inspection o

Service at the Port of New Y

Agreement No 224 010

Ports Talking Agreement was 

review at the conclusion of 
TARIFF A

Tariff filings continue 

processed by the Commission 

operation is proposed to 

utilizing modern data process

Tariff Filing and Informat

consideration to be the o

Commission Such a system wo

capture review process re

type information in an autom

responsive to the needs of 

users and other Governmen

automate the existing manual 

and the public receives and u

presumed that such a system 

and provide its users with 

filed and accepted tariff 

locations It is envisione

largely financially self su

incurring only the costs 

utilization of the system 

Congress in the shipping statu

During Fiscal Year 198

Industry Advisory Committee 

Advisory Committee Act com

steamship industry includ

shippers freight forwarders 

carriers ports and terminals 

Committee was to advise and m

towards tariff automation 

Committee were scheduled to 

sponsored feasibility study 

by a private sector contracto

study is that tariff automat

the needs of the industry 
recommended the utilization 

for tariff automation the s

computers competitive pro

operations and the inclus

uniform commodity coding

The Advisory Commit

feasibility study has b

supportive It was a Com

project continue to involve 

planning process and for th

attention to the costs an

effort The Commission int

study and the Advisory Comms

second quarter of fiscal yea
V

SECTION 

A SECTION 18 THE MANDAT

THE IMPACT OF THE S

Section 18a of the Sh

referred to as the Act di

five years following the ena

information concerning the 

international ocean shipping 

that the information the FMC 

1 increases or decreases 

2 changes in the frequency 

services available to specifi

3 the number and strength 

various trades and 4 the 

cost of major types of reg

Commission

Section 18b of the A

shall consult with the Dep

Department of Transportation 

Commission FTC annually co

that these agencies shall a

data collected under this se

comments concerning data col

Within six months afte

period of data collection t

information with an analysis 

Congress to the Advisory Com

Shipping Advisory Commission 

The Advisory Commission will 

that time The three afor

submit their own analyses on 

after the FMC submission
The Act further speci

following three topics should 

The advisability of ado

on volume and mass of s

The need for antitrust 

terminals and

The continuing need f

that tariffs be filed a

The Advisory Commission 

comprehensive study of 

concerning conferences in oc

specifically address whether 

by prohibiting conference

conferences The Advisory C

after its establishment 

Congress

From the FMC s persp

involves three major areas o

the collection of data the 

with the DOJ DOT and FTC c

the third is the analysis of 

the impact of the 1984 Ac

industry

The task of data collec

three functions The first 

specifically listed in the 

viewed as being concerned wit

shipping industry

as being concerned

levels of service

B THE DATA 

Similarl

with cha

and may 

service Section 18a3r

of the Act on competition in 

referencing 18a3the n

interpreted to mean the numbe

who are not members of a conf
the strength of independents 

the market share of cargo 

carriers as well as the nu

operated by independent carri

The second task of 

compilation of information w

the Act is nevertheless imp

of that which is specified 

which cargo moves by service 

a necessary ingredient to an 

pricing behavior in the liner 

the Act Such information is 

the extent to which tariff 

contract rates or through 

price of liner services 

independent action by confer

spread between rates filed b

contained in the conference 

assessing the impact of the A

in the liner industry

The third task of data 

which is descriptive of the 

reflects the costs to the c

service It could include sto

of the cargo a measure of sh

the average utilization rate 

rates and differences in o

different trades in many c

available to satisfy the infor

be necessary to construct ind

based upon the limited infor

directly Such data series 

reflect an accurate picture o

but when used in conjunction 

the data may assist in determ

comparison with changes 

independently of the Act 

recognized that liner tarif
among the various trade ro

differences in operating co

carried An index which c

less informative than the 

quantities carried may 

significant part of the o

levels

The first type of info

referred to as the basic d

considered by Congress to 

section 18 and the data 

information which is necessa

the section The second 

accompanying data in the s

the basic data and jointly d

the ocean shipping industry 

ancillary since they supple

in the other data sets

C CONSULTATION 

Sources of information 

include tariffs and service 

material such as exchan

International Monetary Fun

information requested from 

The choice of data to be co

years before and after the Ac

obtained from the various sou

analysis

It is expected that the 

be adopted by the FMC will d

approach of the other age

intention of Congress to allow 

forming an Advisory Commi

things is to evaluate the s

of data was clearly intended 

of activity by the separate a
Accordingly the FMC w

the data and will be gi

distributing it in an acce

form There are however 

distribution of information 

of Census data have been obta

release of information reveal

to an individual carrier o

provided by the Bureau spec

formed from three or less firm

one firm of more than 90 pe

regarded as traceable to 

evaluation of such quantities 

releasing the quantities them

the individuals to whom the q

it will therefore be necess

rather than the data

The second limitation 

maintain the confidentiality o

requests for information from 

all cases except those whic

the names of the respondent

released information and data 

individual carriers shippe

enterprises within the intern

be presented in a form which 

source

D ANALYSIS OF TH

The approach which is 

based on two major considera

be possible to provide stat

effects can be attributed s

nevertheless be possible to 

to the Act The distinction 

basic data are affected by a 

it may be difficult to sort 

3
The most that can be expected 

the more obvious and potenti

Act leaving a residual whic

Act the influence of cova

random influences The m

therefore give an indicatio

which can be attributed to th

The second considerat

interrelationships among the 

basic data and the accompa

potential relationship betw

tariffs and the level of se

the following page If th

significantly after the Ac

negative correlation is obs

service level changes then 

supported since the chang

consistent with the view t

liner market should result i

to the shipper But if the 

tariff level increased 

possibility as shown in the 

Positive Correlations Betw

with rate increases then 

market share argument 

maintaining market shares 

produces excess capacity 

and raises operating costs 

Negative Correlations Betw

with rate increases then

conventional cartel argume

price fixing always moves

prices up and quality of

service down
A similar procedure fo

between market shares 

competitiveness such as the f

and the utilization rate of 

on the type of competition in 

further confirmation or the l

of competitiveness In all 

directed toward specific patte

among the data sets so t

including what if anything 

can be assessed

The analysis of the ba

data will begin with a simple 

for the subset of data befo

subset of data after the Ac

performed with several cov

patterns in the relationships 

which prove useful as cov

independent variables in a s

of the tariff levels for all 

using quarterly intervals 

before enactment and five yea

Tariffs on major moving 

trades will constitute the de

explained statistically T

more than 50 percent of the t

throughout the time interval 

the total trade becomes less 

the tariff rate on the selecte

initially even if evidence e

those rate classes are shippe

important part of the an

relationship if any exist

contract rates and changes i

item If the analysis 

relationship exists for spec

that cargo is shipped under 

that the tariff rate is a pa
not indicative of the price 

be necessary either to remov

of items to be analyzed fur

rate with the rate under whi

A more complete discussion o

next section of this report

1 General

D FMC PRO

In February 1984 when 

was likely to become part of 

FMC prepared a preliminary op

the major areas of antici

Maritime Commission 24th A

1985 pp 73 79 and relevan

that date is reported under a 

Establish and mainta

representatives from the 

Identify major issues an

Work with the indust

information advice and 

Research the usefulness 

procedures which can be 

Continue the data collec

2 The Interagency Group of R

The FMC held its initia

section 18 Interagency Grou

additional meetings were hel

were held in FY 1985 and 

during FY 1986 Although 

discussed from confidentia

sources to interpretations o

section 18 the discussions 

specific regarding the nature 

the FMC and the informatio

3
agencies in fulfilling their 

first meeting in FY 1986 the 

members of the Interagency G

have been compiled in ele

Subsequent meetings were conve

to the dataset became availa

continue during FY 1987

3 Identify Major Issues and 

The FMC s initial asse

mandate focused on sections 

new Act by examining the c

associated with data collect

Although specific tasks co

sectionbysection basis th

approach became apparent du

partly in response to the 

collecting tasks for the yea

of the data files and par

pertinent data should be liste

at some later date when 

current Accordingly a de

status report each six month

the report to various people 

industry who have expressed 

the study

4 Work with the Ocean Shippi

Arrangements have been 

of carriers and shippers to 

information for the section 

have become known as Carrie

Working Group respectively 

important purposes Fi

Procedures whereby FMC staff 

carriers or shippers are co

sources Second the study 
useful as verifying autho

sourced Similar arrangeme

and marine terminal operato

with NVOCCs

5 Continuation of Data Coll

Of greatest interest 

compilation of tariff rates 

country trades which were se

Australia

Brazil

Italy

Japan

US West Coast to Aus

US East Coast to Aus

Australia to US West 

Australia to US East 

US East

US Gulf

Brazil to

Brazil to

US East Coast to Italy

Italy to US East Coas

US West Coast to Japan

US East Coast to Japan

Japan to US West Coas

Japan to US East Coas

West Germany

US

US

West

West

Taiwan

US West

US East

Taiwan to

Taiwan to

Coast to Braz

Coast to Braz

US East Coa

US Gulf Coa

North Atlantic to W

South Atlantic to W

Germany to US No

Germany to US Sou

Coast to Taiwa

Coast to Taiwa

US West Coas

US East Coas

4
Other important data wh

1986 include market shares fo

conference carriers See App

carriers ports and marine 

facts and opinions relating to 

FY 1986 The survey results 

responses is being prepared 

of the surveys

6 Data Relating to Major Type

Section 18a4 requir

information concerning the le

cost of major types of regu

Commission A major purpo

establish a nondiscriminatory 

common carriage of goods by w

the United States with a minim

and regulatory costs The o

therefore to determine if imp

have been achieved A proced

information is currently being 

7 Section 18c Topics

During FY 1986 backgrou

the third topic specified 

continuing need for the statu

be filed and enforced by th

perspective it is certainl

issues since it will have 

structure of US regulation 

Thus far the staff has 

activities of foreign gover

filing and enforcement and t

tariff filing and enforcem

Furthermore the Commission 

professor of maritime econom

Institute of Science and Tec

consequences on the market p

tariffs be filed and enforced

V

SIGNIFICANT OPERATING ACTIV

A OFFICE OF 

1 General

The Office of the S

preparing the regular and nota

to consideration by the Comm

action taken by the Commission 

processing formal complaints 

shipping statutes and other a

and notices of actions of 

official files and records 

receiving and responding to su

personnel andor records a

Information Government in th

responding to information r

staff maritime industry an

publications and documents r

before the Commission and c

volumes of Commission decisi

also participates in the dev

reduce the length and complex

ongoing

organizational

evaluation

structure

of the

and

e

changes to the shipping statut

During fiscal year 1986

Certain offices previo

Secretary were transfer

stration These funct

Energy and Environment

Services Activity an

Activity

The Office continued 

systems including a pro

and more efficient stora

records

43
The Commission heard 

proceedings and issued 

proceedings Fifteen 

tinued or dismissed 

determinations not to 

orders terminating pro

remanded back to the 

Commission also co

applications and 55 

claims against carriers 

the same period the C

three rulemaking proce

Nine rulemaking procee

Commission at the end 

these matters are an

Additional new rulemak

year 1987 eg a revis

of information rules 

recent amendments to th

2 Informal Dockets Activity

This activity is respo

tion of claims filed by ship

water engaged in the foreign 

of the United States These 

violations of the Shipping A

Shipping Act 1933 for w

10000 is sought The vast 

this program constitute s

adjustments arising from al

During fiscal year 1986 

received 59 new cases Dur

docket claims were concluded 

to review certain legal matte

changes brought about by the 

3 Office of Informal Inquiri

This Office coordina

handling system throughout th

1022 complaints and informat

1986 approximately the same 

Based on this activity comp
through savings and refunds 

1981

1

the Office has assisted 

700 0 This figure inclu

the Office was instrumental in 

The Office acted as 

carriers forwarders conferenc

bureaus within the Agency 

meetings with industry repr

Commission officials During 

responded to inquiries and 

Shipping Act of 1984 the Tax 

continued

Consumer

to

Affairs

represent

Counc

the C

Administration sviews on 

agencies

4
1 General

B OFFICE OF ADM

Administrative Law Ju

after receipt of a complain

on the Commission sown mot

Administrative Law J

administer oaths and affirma

offers of proof and receive 

depositions to be taken whe

be served thereby regulate 

conferences for the settlem

issues by consent of the 

requests or similar matte

decisions and take any oth

rule consistent with the Ad

At the beginning of fi

were pending before Adminis

year 127 cases were added 

remanded to Administrativ

proceedings and 1 proceeding 

proceedings inasmuch as t

issued by two judges 

conferences held 2 complete

initial decisions in form

decision in an informal proc

in special docket applicatio

Cases otherwise dispo

proceedings and 3 special do

2 Commission Action

The Commission adopted 

special docket decisions 

informal decision and 62 s

administratively final
3 Decisions of Administrative 

not yet decided by the Commis

Reefer Express Lines P

Corporation Eller Companv 

Docket No 8249

The initial decision found th

Authority stariff providing 

Port sterminals of charges fo

account of the vessel is law

not be allocated by the Pos 

and the shipper consignee in 

alleged to be conferred 

responsibility of the vessel i

services including the nece

convenient place to receive 

therefor that the costs of wa

borne in any proportion by th

the definition of warehouse 

insofar as it unlawfully excul

Member Lines of the 

Agreement Possible Violation

Docket No 8518

The initial decision approved 

Commission sBureau of Hearin

respondent members of the 

Agreement Respondents were 

totaling 300 0 and they 

certain other actions intended 

out in this investigation w

whether the respondents had 

10a3of the Shipping Act 

stipulated that certain of th

prior to the commencement of 

respondents had proposed t

Agreement to provide that an

the Agreement in the future s

adjustment or revocation und

processes including it indepe
Judges also issued

15 83 2 83 46 84 28

85 24 Informal Docket

1305 1353 1354 1356

1367 1369 1370 1371

1379 1380 1381 1382

1389 1390 1391 1392

1399 1400 1401 1402

1409 1410 1411 1412

1421 1422 1423 1424

1431 1432 1433 1434

1443 1444 1445 1446

1463 1464 1465 and 1470

Commission

ini

84 

No 

135

137

138

139

140

141

142

143

144

d

4 Pending Proceedings

At the close of fiscal 

proceedings of which 5 were 

Commission The remaining 

the filing of complaints or 

by water shippers conf

districts terminal opera

stevedores
or oral

general

General

public

Counsel

C OFFICE OF THE 

1 General

The Office of the Gen

counsel to the Commission T

sufficiency staff recommenda

drafts proposed rules to imple

prepares final decisions o

Commission ratification In a

legal opinions to the 

in appropriate 

49

also represents 

before courts and other admi

the litigation work largely 

Commission upon petition for re

the US Courts of Appeals th

actions for injunctions enfor

actions to collect civil pen

the Commission sinterest may 

The Office is responsible 

testimony to Congress on 

matters

The Office also has the 

and reporting on internatio

including practices of foreig

ocean shipping In addition 

Commission on US Governmen

with international maritime i

technical advisor on regulato

multilateral maritime discussio

2 Commission Actions

The following are represe

the Office
Modifications to the Tr

Japan Agreement the Jap

Conference Agreement and th

Islands Freight Conference A

SR 1390 September 30 1

The Commission issued a rep

provision in the conferences 

exercise of independent act

items during the pendency o

affecting those items was co

Shipping Act of 1984 and 

agreements The Commission 

dissenting that a provision 

which withdrew any adopting 

originating independent acti

effectiveness was contrary to 

Act of 1984 This provision 

the agreements or modified 

independent action stands o

member line voluntarily advise

Matson Navigation Compa

Increase of 25 Percent Betw

Ports and Hawaii Ports Do

June 26 1986

The Commission found that due 

and interest rates as well 

risks a proposed rate incre

Company Inc in the Ha

unreasonable under the Interc

Commission further found t

indicated that Matson s e

unreasonable and ordered a 15 

under the Shipping Act 1916

Application of the Loy

Shipping Act of 1984 to a P

No 85 12 23 SR 1098 M

Two conferences filed a 

Commission declare a propose

loyalty contract within th

section 10b9 of the Sh
provided that the conferences w

greater than 10 percent to any 

fixed percentage of its cargo w

period not to exceed four cons

denied the petition finding th

shipper s performance of the 

valid consideration and gave ris

Independent Action Not

Conference Agreements Dock

April 25 1986

The Commission issued a fin

agreements to 1 establish 

more than 10 days for member li

2 provide for a single notice 

line s independent action and 

taking independent action is no

or to comply with other pro

explaining justifying or comp

action

Section 19 Inquiry Unite

StatesBrazil Trades Docket N

25 1986

The Commission discontinued 

conditions in the US trade

Continuation of the proceeding 

efficient and effective use of 

apparent lack of concern of af

US Executive Agencies appa

proceeding and lack of respons

Notice See 23 SR 251 

proceeding

Southeastern Maritime Co 

Docket No 83 46 23 SR 9

The Commission found that 

decisions an exculpatory ta

fictional borrowed servant re

tariff violated section 10d

The Commission also rejected t

5
was lawful because it was 

certain operational concessi

facility users The record 

due to the unequal bargaini

quid pro quo alleged by th

adhesion and could not be c

of an unlawful exculpatory ta

Stevens Shipping and Te

Ports Authority Docket No 

27 1985

The Commission found that 

purported to make crane ope

renting stevedores when in 

control over crane operati

actual practices at the por

10d of the Shipping A

found that the tariff prov

provision relieving the port 

its own negligence and impos

without regard to fault Su

section 17 of the Shipping 

violate the corresponding p

1984 section 10d

Intermodal Service to 

19 23 SR 571 November 

The Commission set aside 

proceeding See 17 FMC 

member lines of a conference 

at least alternate sailings 

service

order was

to

based

Portland

upon Portlas

The 

and a change in the law

In the Natter of Inter

Show Cause 23 SR 899 Fe

Interpool Ltd a containe

Commission to direct a confe

rule which it had published 

of the Shipping Act of 1984 
conference members from paying 

of containers which were not o

delivery to a shipper The 

petition because the rule on it

and Interpool had failed to 

which the Commission could rel

case necessary to initiate a 

Commission did indicate howe

allegations raised by the vari

address the entire neutral c

proceeding

In the Natter of Petitio

Europe Conference and the 

Conference for a Rule Regarding 

1381 September 17 1986

The Commission denied the c

phrase person for whose accou

cargo is provided in the d

Shipping Act of 1984 be furth

found that the problem which w

could be resolved under o

Moreover the Commission conc

departure from the Congressiona

engender considerable confu

obligations of shippers assoc

Application of Compa

Interoceanica SA for the Ben

Nazarene Kash Inc and Cal

Special Docket No 1353 23 S

In this proceeding the Com

holding which denied special d

waive or refund applicable fre

did not intend to file the ra

after the vessel had sailed 

unclear as to when the carrier

quoted rates the Commission 

presiding officer for further p

53
In Application of SeaLa

Land Service Inc as 

Corporatio Frito Lay PanaY

23 SR 1153 March 5 198

In this proceeding the Co

statute of limitation in 

additional refund and waiv

section 8e 3 for the bene

commodity as well as to the 

the basis of the application

Application of OS Atla

the Benefit of the Ford Moto

23 SR 1246 July 9 1986

In this proceeding the C

carrierapplicant had filed 

application to refund a po

charges as required by sect

1984 In so doing the Com

tariff conformed to the stat

that it set forth a rate 

shipper Because the higher 

increase the Commission rea

that had not been filed due to 

Application of SeaLand 

786

SDS Biotech

February

Corporation

6 1986

Sp

The Commission reaffirmed th

permission to a carrier to d

or refund freight charges to 

8e of the Shipping Act of 

committed a clerical or adm

to its tariff Operational 

booking instructions do not 

The Commission further held 

authority to grant equitable 

Commission sdeclaratory orde
3 Litigation

Petchem Inc v Canav

Docket No 84281 23 SR 9

This complaint proceeding invo

for tug and towing services 

certain aspects of the Coms

Commission held that vessel 

passenger cruises at US ports 

meaning of the Shipping Acts 

that although it does not 

operators themselves when a 

exclusive franchise agreement 

facilities dependent upon em

service the furnishing of tug 

terminal function subject to C

merits of the case the Commis

Petchem

exclusive

had

franchise

not proven

system was

that

the Shipping Acts This case i

US Court of Appeals

New Orleans Steamship As

Harbor and Terminal District 

1363 September 16 1986

The Commission reaffirmed 

jurisdiction over the Port and 

ancillary port facilities and 

in the loading and unloading of 

to scrutiny under the Shipping 

practices were generally found 

exemptions found to unfairly 

case is presently under review 

California Cartage Co In

Maritime Commission 802 F2d 3

The US Court of Appeals for 

Commission sdecision in Docke

Cartage Co Inc v Pacific M

1533 January 31 1983 holdin

determined that the amendm

5
Agreements Act included in th

offdock container freight s

assessment agreement between 

the International Longshores 

The Commission had held that 

any person standing standar

repealed the MLAA s detrim

standard thereby removing th

California Cartage Co had p

had also held that California 

rights of third parties u

standard

4 Legislative Counsel

The Commission slegis

preparation of reports to C

Executive Office of the Presi

or

or

to

bills especially as they 

jurisdiction

provide the

of the Comm

Commission w

needs to effectively regula

foreign and domestic offsh

preparation of testimony for 

preparation of responses to 

offices regarding constituent 

The Office prepared and 

Commission sdraft bill to am

to provide for judicial re

Federal Maritime Commission 

appeals It was signed by the 

During Fiscal Year 1

Congressional inquiries wer

Legislative Counsel for comm

referrals The Office also p

for five Congressional hearin
5 International Affairs

The international affairs 

were transferred to the Office 

1986 This section summarizes 

international affairs activitie

Several reports and reco

submitted to the Commission on 

19 of the Merchant Marine Act 

the movement of highcube 

Peruvian cargo reservation law

carrier concerning US militar

The Office participated 

international maritime discuss

advisors to the Interagency Ma

members include representative

Transportation State Commer

of the US Trade Representa

participated in the drafting 

section of a report by the In

Industries Development and ser

shipping matters between th

government agencies as well as 

The Office provided writte

the Commission on such topics 

Nations Code of Conduct for L

Community s

Rules on Com

preference laws consistent with 

Commission informed of inter

likely to affect the Commissio

Additions to a series of 

laws and decrees of foreign 

consideration by Commission a

program of monitoring the mari

of foreign governments remaine

coordinated and participated i

to the Commission

5
Finally in August 19

Counsel assumed responsibil

Commission scontrolled carrie

of controlled carriers As th

was beginning a review of thos

aim of revising some aspe

program
D OFFICE OF THE 

The Office of the Managin

January 1986 It is 

administration and coordination 

and programs to ensure the tim

Commission goals and objectives

The Office provides dire

supervision to the

Bureau of Agreements and T

Bureau of Tariffs

Bureau of Economic Analys

Bureau of Hearing Couns

Bureau of Investigations

Bureau of Administration

Additionally the Offic

furnishes administrative direct

Office of the Secretary

Office of the General Cou

Office of Administrative L

A key element of the Ofs

the development and initia

reorganization plan which when 

agency and enable the Commissio

statutory mandate Implementa

continue during fiscal year 198

59
1 General

The primary function o

and administer the programs

concerted actions of commo

persons within the definitions

the Shipping Act 1916

2 Surveillance

E BUREAU OF AGREEM

See pp 1318

3 Types of Agreements

a Conference and Rate

Conference and ratema

collective discussion agree

freight rates and practices b

agreements are limited to a 

with the traditionally 

conference and rate agre

agreement is usually a more 

dominant influence on rates w

agreement is more loosely 

influence on rates The Cos

distinguish between confere

purposes of determining a

mandatory provisions

During fiscal year 19

processing of 206 conference 

amendments to existing agre

Act of 1984

Three conferences enla

intermodal authority in th

agreements were completely 

comply with the Commission s

All conference agreements a
these requirements Thirtys

to comply with the Coms 

relative to independent actio

Independent Action Notice 

Conference Agreements T

delinquent in this respect 

been initiated to achieve com

b Pooling and Equal A

Pooling agreements are 

carriers in given trades whi

apportionment of cargo ando

the increased efficiencies 

provide as a result of thei

conditions These agreements 

requirements and other featur

efficiency Equal access 

national flag carrier access 

the governments of reciproca

of cargo preference laws 

restrictions

At the conclusion of F

agreements in effect with 

authority The preponderance 

to apply to the USSout

agreements of this type have 

ocean liner commerce with 

Colombia

c Space Charter and S

Space charter agreement

cross chartering of vessel s

or among vessel operators 

arrangements of this type is 

vessel accommodation in given 

would otherwise be ava

rationalization of overall f

overtonnaging in given trad

generally contain authorit

itineraries and the exchange 
During Fiscal Year 198

and amendments were filed und

effect at the conclusion of t

d Joint ServiceCons

Joint service and c

establish a new and separate 

by otherwise independent line

in a given trade The res

generally as a single ca

publishing its own tariffs 

lading but its authority is 

is specifically set forth in 

operation

Fifteen joint servi

amendments were filed during 

agreements were in effect a

year

e Cooperative Working 

Cooperative working a

discussion agreements which 

discuss competitively sen

specialized inter carrier op

not precisely fit the oth

Twentyeight cooperative wor

to effective agreements were 

and 42 such agreements were 

the fiscal year

f Marine Terminal and 

Marine terminals oper

entities provide the fa

interchange of cargo between 

the receipt and delivery 

consignees During Fiscal Y

to completion 154 agreemen

relating to port and term

Three hundred and eightyfive 

at the conclusion of the fisc
June 25

The Bureau

1986 Notice

also furnish

of W

unfiled marine terminal serv

terminal operators and ocean 

provided for the waiver of 

implementation of such agre

filed within a 120 day perio

support in the analysis of co

draft final rule in Docket 

exemption of certain classes 

The Commission is also 

labormanagement agreements p

Agreements Act of 1980 PL 

provides that such agreemen

for the funding of collecti

obligations on other than 

regardless of the cargo h

equipment utilized shall be 

with the Commission Durin

management agreements of this 
1 General

F BURSA

The Bureau of Tariffs p

analyzes programs and activ

pricing of services provided 

conferences of such carriers 

foreign and domestic offshore 

reviews files and rejects 

processes service contract f

special permission ap

recommendations collaboratin

Counsel and other elements o

for formal action and procee

Bureau is also responsible 

freight forwarders under the 

of 1984 and under Public La

the financial responsibility 

passenger vessels to sa

nonperformance of voyages or 

The Bureau develops longra

policies and standards an

respect to its program activ

2 Foreign Commerce

a Common Carrier Anti 

Program

Every common carrier by 

of the United States is req

Shipping Act of 1984 46 USC 

promulgated by the Commiss

annually with the Secretary 

Certification of Company P

Rebating in the Foreign Comm

by the Chief Executive Off

Section 15b and 46 CFR 5816

50000 for each day a c

failure to file the required 
obtained under the ARC P

continuous surveillance over 

to provide a deterrent agains

The Commission experien

with the annual certification 

respect to Non Vessel Opera

NVO who came under the umbre

changes contained in the S

Fiscal Year 1986 the Commis

cause why they should not 

statutory requirement to ma

Many of these carriers eventu

that they were out of bus

respond A separate proceedi

tariff publications of the no

if penalties should be assess

The Bureau recognized 

streamline the ARC Program 

instance have been req

certifications although in m

also in the business of 

Additionally the regulations 

considered vague concerning 

certification To rectify t

initiated a rulemaking pro

regulations for the ARC P

Federal Register May 1986 

virtually unopposed and becam

They eliminate any duplicatio

anti rebate rule for ocean 

operating common carriers and 

also specifies the time peri

certification and provides a 

of the certificate

b Controlled Common C

During the fiscal year 

African Marine Corporation 

6
Commission slist of cont

Commission sdetermination to 

was based on information sub

by the Department of State 

controlled common carriers 

advance tariff filing re

requirements of section 9 of 

Also continued under r

controlled common carriers a

of Nauru and National 

Philippines Philippines

At year s end the 

controlled carriers was tra

Tariffs to the Commission sO

c Pacific Rate Insta

The recently formed Asi

Agreement ANERA represen

ports except Japan to the 

common tariffs effective A

the common tariffs the sta

than 250 former conference a

by ANERA Filings to th

increased in the first quart

independent action rate re

carriers in the trade

It was evident thro

transpacific trades are un

marked by constant erosion 

vessel utilizations and turm

newly formed conferences in 

evidenced by the apparent 

members to maintain level 

cutting and the turnover in 

d Rulemakings

In an effort to determ

financial or other interest 
transportation is allowed to 

with a carrier or conference 

and the North EuropeUS A

the Commission to define 

comments were received on th

by the Bureau It was decide

petition on the basis that s

or available In lieu of 

without a sufficient factual 

a non adjudicatory fact fin

practices of various en

intermediaries for the tra

waterborne foreign commerce 

investigation will be conclu

thereafter appropriate actio

Commission to resolve this is

Another area of 

relationships among shippers 

with respect to free time an

interchanged equipment 

Commission that the relations

by agreements among the partie

which frequently contain rate

properly published in carrie

the issue was invited w

disagreement concerning 

responsibility and jurisdict

of Tariffs recommended and 

issues referred to an Adm

briefing and evidentiary hea

to address whether equipment 

ocean common carriers and 

should be published in ta

sufficient policy reasons to 

Commission stariff filing 

85 19 Free Time and Detentio

Equipment Interchanged with S
e

In order to reduce un

Bureau of Tariffs amended 

filing of a single tariff pa

pages to allow for future t

implement this change the B

industry

reserved

Administration

providing detailed 

pages

During fiscal year 19

recorded 633 280 foreign ta

pages In addition 103 s

were processed

The program

canceled pages to

fiscal year 1986

pages were recorded

of micro

active ta

approxim

on microf

3 Domestic Tariff Activity

Sections 17 and 18a 

section 2 of the Intercoasta

the filing of rates charges 

of common carriers operating 

commerce and terminal operato

ensure that these tariffs com

and rules pertaining to filing 

and domestic offshore carrier

a US Virgin Island

On September 9 1985 

Islands GVI petitioned the 

August 13 1985 decision to 

a general rate increase file

Corporation TMT in the Pue

Taking into account a Comm

data submitted by TMT in sup

petition was denied
b

Hawaii

fiscal year 19

a proportiona

in containers 

or foreign c

Honolulu Ha

Early in

Inc filed

transportation

in interstate

applies from

Nawiliwili Hawaii was protes

Young Brothers Limited 

allegations set forth in 

allowed the proportional ta

scheduled

The Commission discontin

No 85 3 on December 27 198

proposed 25 percent overall 

Navigation Company Inc ap

CoastHawaii trade which be

1985 Matson filed an addit

increase scheduled to become 

which was protested by the S

was suspended through June 

investigation in Docket No 

proceeding Matson subsequentl

by one percent the Commis

1986 found all of the 

additionally found Matson s 

The Commission refused to allo

to become effective and fur

its existing rates by one pe

c

Terminal Activities

The Commission issued 

filing of terminal tariffs b

prohibit certain tariff p

otherwise relieve marine term

for their own negligence o

obligation to indemnify or h

from liability for their ow

adopted as final by the Comm
In response to a petiti

amend its truck detention ru

increase penalty charges 

terminals The Commission a

there is a continuing re

mandated truck detention ru

concluded in fiscal year 198

d Administration

During fiscal year 19

offshore tariff pages and 

received and reviewed of w

were rejected for

requirements In

applications were

Activities during this period 

rate increases together 

investigation and suspen

necessary preparation of 

criticisms of tariff filings 

Automobile Measurement Guid

4 Service Contracts

The

conferences

a General

and or shippers

defined in the Act

failure to

addition 

processe

Shipping Act of 

to enter into s

associatio

as 

and an ocean common carrier

shipper makes a commitment 

quantity of cargo over a fix

common carrier or

assured

service

conference 

rate schedule as well as a d

space transit tim

features the contra

in the event of nonperformance 

Each contract entered into 

Shipping Act of 1984 must be 
Commission and at the same ti

essential terms must be filed 

available to the general p

essential terms must be avail

situated

The essential terms of a 

The origin and destinati

geographic areas

The commodity involved

The minimum volume

The linehaul rate

The duration

Service commitments and

Liquidated damages for 

The variables which c

contracts are almost infinit

shippers significant freedo

arrangements suitable to the

The Commission estab

Contracts on June 4 19

administer the service con

activities incorporated the 

previously handled by a spec

that was established in fi

increase in the volume of s

Commission to eliminate a

processing and coding of ser

the service contract program 

of Service Contracts 

responsibilities for all 

contracts ie receipt and 

essential terms filings deve

contract enforcement program 

contract ADP system and d

rules governing service cont
The service contract 

service contracts and essen

requirements of the Shippin

regulations In the event a 

terms do not meet all 

appropriate corrective actio

indicate that 20 of all se

deficiencies If deficient 

terms are not corrected wit

filing the Commission return

party Returned service 

refiled are again reviewed 

service contracts which do no

the Commission are referred t

b Rulemakings involvi

On February 18 198

proposed rules concerning th

and statements of essent

Commission proposes to sub

contract regulations based 

experience gained in process

past years

The proposed rules w

cannot commit all or a fixed 

the resulting arrangement be

would clarify statutory conce

duration and geographical sc

would provide for additio

Commission surveillance and 

to similarly situated ship

procedures involving the es

statements contingency claus

of filings by the Commissio

revisions the Commission als

there is a need to esta

liquidated damages and cargo 

combined format for filing 

shipper clauses and a poss
conferences from the requirem

ranges available to shippers 

Each of these issues could 

rulemaking

The Commission received 

proceeding from conferences 

organizations shipper assoc

state and federal government 

being considered and a final 

year 1987

in addition to issues to 

86 6 another rulemaking is 

Commission to establish a

enforcement program The Com

promulgate regulations in f

require carriers and confer

service contract records in th

c Complaints

During fiscal year 1986 

filed with the Commission by 

carriers violated the Shipping 

them to secure service co

shippers One complaint 

complainant failed to provide 

processing of the complaint w

were dismissed after resolutio

parties

d Shippers Associatio

The Shipping Act of 

associations for the first tim

ocean transportation They ar

of shippers which on a non p

cargoes to secure volume r

contracts The Act expressl

conferences negotiate with sh

provides that such associati

contracts on behalf of 

73
associations have not been 

the 1984 Act In fiscal 

were filed involving 13 sh

Shipping Act of 1984 bec

shippers associations hav

service contracts with certa

e Administration

Since the passage of 

Commission has received 

carriers and conferences u

8c of the Act and the Cs

essential terms filing reg

filed by 80 individual 

conferences and involved 

secondary shippers A prima

signing a service contrac

person or firm included und

affiliate of the signator

services under the contrac

50 are presently active

The service contrac

described commodities as w

geographic scopes of the c

Pacific and Gulf coasts of 

East Australia Europe Af

both inbound and outbound 

were filed in the Transpac

During the first qua

number of service contract f

pace However due to t

agreements in the Pacific 

members service contracts 

in the Far Eastern trades 

filings have leveled off 

present level of filings 

inbound trade from Europe a

of cargo is moving pursu

contracts
During fiscal year 198

contracts were filed with the C

5 Financial Analysis

The Office of Financial 

and financial expertise to help 

rates for the transportation 

provided by common carriers 

commerce of the United State

technical assistance to ot

Commission

The Office continued to 

carriers in the domestic offs

States The effort involved 

financial and operating data s

CFR Part 552 The staff also 

submitted in support of a rate 

With respect to the f

referred to above work was c

governing regulations and the 

report financial and operatin

project will result in a lesse

imposed on carriers in the dom

The Office has devoted 

substantial efforts to the Cos

This activity includes the d

various data bases These data 

a Regulated Persons 

regulated by the Commission 

person and person type ie 

operating common carrier etc

b Tariff Profile Syste

on file with the Commission w

eg the tariff number agen

c

Service Contract 

contracts on file whether ac

7
information eg carrier n

shipper name geographics e

d Microfiche Index 

tariffs on microfiche with 

canceled

6 Freight Forwarders

The ocean freight forw

persons who in effect hol

export departments for hire 

export shippers by arranging 

cargo by common carriers 

legal requirements safe

incidentals related to s

forwarders receive a fee f

from the exporter Forw

compensation from the oce

selected by the forwarder to 

Congressional finding

malpractices within the oce

led to the enactment of sect

46 USC 841b which veste

for the licensing and re

freight forwarders At t

export trades were rampa

maintaining a favorable 

especially small businesses 

their own exporting Cong

limited oversight of ocean f

to eliminate secret illega

ensure that unscrupulous 

irresponsible persons were p

freight forwarders Althoug

forwarders has increased s

malpractices are now more the 

The continued maintenan

technical qualifications and 
an ocean freight forwarder are 

a license issued by the Commi

is required to be maintained 

Once issued a license need 

Commission approval for a chan

licensee or a license tran

required The amount of the bo

offices through which an ocea

ocean freight forwarding servic

30000 It is increase

unincorporated branch office 

separately incorporated office 

license

With the enactment of th

Commission sregulatory respon

industry are now found in se

this shipping statute the 

remain essentially in place 

against export shippers rec

eliminated Thus any person 

corporation or a partnership 

found qualified However lic

from collecting compensation f

which they have a beneficial in

Under the statute person

the domestic offshore trades 

required to obtain a license to 

required to file a surety 

forwarders are still subject t

the 1916 Act that now apply so

the United States Also unde

and among forwarders engaged i

United States are no longer r

Commission for approval 

afforded no antitrust immunit

During fiscal year 1986 

hundred fortyfive applications 

licenses in addition to the 

77
from fiscal year 1985 

applications were approve

withdrawn during the proc

incomplete applications we

One hundred fiftyfive p

revoked primarily because 

the surety bonds required b

In addition to app

fiscal year 1986 the C

twentyeight applications 

of licenses and other o

applications for transfers 

were carried over from th

hundred twenty two of thes

Fiscal Year 1986 Thirtee

closed because the applicant

Onsite compliance i

part of the Commission s

ocean freight forwarders co

shipping statutes and the C

the year three hundred s

were reviewed Two hundre

resulted in the issuance o

the Bureau of Hearing C

appropriate civil penaltie

determined to require no for

Other activities durin

The processing of 10

new bonds riders to 

bonds

The review and proces

concerning in the ma

of freight charges by 

The receipt and 

certifications require

pursuant

implementing

to

regulatio

the 19
The review of 4 Dunn and 

The review of 56 cla

900 00that were file

During the fiscal year 

rulemaking Docket 86 19 conc

anti rebating certification re

of the rulemaking was to allow 

a dual capacity such as a fre

NVOCC to satisfy the annual 

filing only one certificate

At the end of the fis

licensed ocean freight forwar

of 24 licensees from fiscal ye

7 Passenger Vessel Certifica

The Commission is re

sections 2 and 3 of Public La

e

regulations

which have

found

been

in 46

imple

CF

Protection of the Public Ow

of American and foreign vess

accommodations for fifty or 

passengers at United States p

responsibility 1 to meet any 

or injury to passengers or o

from United States ports and 2 

nonperformance of transportat

entitled under ticket contract

Upon the submission 

responsibility in accordance 

the Commission will issue 

Responsibility to Meet Liab

Injury to Passengers or 

Certificate Casualty Up

evidence in accordance with 

Commission will issue a 

Responsibility for Indemn

7
Nonperformance

Performance

With respect to the C

responsibility must be es

schedule provided in sect

Commission regulations 

responsibility required und

for the issuance of a 

determined by the Commissio

of vessel accommodations fa

sailing schedule itinera

applicant

financial

its largest

performance

of 

operating more 

responsibility u

vessel The 

is 10 million 

could require a greater am

The certificates mus

States Customs officials a

of the vessel from the Un

US Customs Service shall 

if it does not have certifi

as the Commission confirms 

During fiscal year 1

new applications for per

applications for casualty 

for amendments to existing 

year over 120 vessels remain
G BUREAU OF ECO

1 General

The Bureau of Economic 

statistical and financial an

Commission in its statutory 

augments the Commission splann

the agency sresponsiveness to 

in US ocean commerce and the 

The Bureau provides expe

Commission sformal administ

international and domestic 

activities of the Bureau includ

Preparing the fiveyear 

of the Shipping Act of 1

Act on the international s

Assisting Commission lega

testimony or recommendati

restrictive trade practic

rate increases in the dom

Forecasting trade develo

trends

Preparing special reports 

developments in liner shi

Participating in the plan

feasibility of automating 

2 Section 18a Study

A major effort during 

requirement for the collectio

required by section 18a and 

by section 18c of the Shipp

analysis of the progress to da

set forth at pp 31 42

3 Conference on the Shipping 

The Federal Maritime Com

Transport Old Dominion Unive

81
which was held at the Omn

June 1213 1986 The th

Shipping Act of 1984 E

stated purpose was as follow

The Shipping Act of 

regulation of interna

that the new Act 

competitive situation 

a consequence have 

segments of the indu

passed since enactmen

to have a public forum 

in the industry who h

Act of 1984

The objectives of this 

Elicit information on 

sectors of the shippin

Explore the impacts o

industry on US trade 

Exchange views on cu

government regulation 

Industry representativ

academic personnel were i

panels and more than 160 

papers and a summary of the 

Dominion University see Ap

document associated with th

the current opinions of a 

participants

4 Future Plans and Propose

For the coming year 

efforts to gather and anal

with the mandated fiveyear 

of the Shipping Act of 1984

Specifically the sta

on collecting information 

service contracts or interm
commodities for which the st

rates

It is also planned that 

to carriers shippers ports 

intention is to send out surv

groups every year until 1989 

impact of the Act will suppleme

being collected

It is also anticipated th

each report required by sec

during next fiscal year 

circulated to other components 

review and comment

83
H BUREAU O

The Bureau of Hearin

counsel in formal adjudica

adjudicatory investigation

designated by Commission 

initiated by the Commiss

Hearing Counsel when inte

complaint proceedings inst

Shipping Act 1916 and se

1984 In addition to the 

Bureau participates as a 

other formal proceedings i

issues affecting the ship

public as distinguished 

between litigating parties 

Bureau also participates 

development of Commission 

request the Bureau furnis

occasion the Bureau may p

or against the Commission 

advice to the Bureau o

investigations and review 

that Bureau When appr

Counsel prepares and serve

shipping statutes and reg

settle civil penalties aris

Bureau also acts as pr

proceedings that may re

penalties

At the close of fisca

possible violations prepared 

were pending final resolu

Counsel During fiscal 

possible violations were 

Investigations Fortysix 

settled administratively 

proceedings or action by 
investigations of possible 

resolution by the Bureau of He

1986

The amounts of civil pen

by the Commission in fiscal 

Appendix E

At of the close of fisca

party to 23 formal proceedings 

participated in 11 new f

proceedings in which the Bu

completed Accordingly the 

proceedings on September 30 1

advice to the Commission sst

during the fiscal year

During fiscal years 1984 

was developed for the Bure

implemented in fiscal year 

functions as legal advisor 

providing for closer coordin

offices Consequently it is 

a marked increase in all are

next several fiscal years

8
I BUREAU O

The Bureau of Inve

commerce of the United S

illegal rebating and oth

shippers consignees and 

Shipping Acts In additio

Washington DC offices 

Francisco New Orleans M

Puerto Rico These offices 

their geographical area 

Commission and the mariti

public monitor and conduc

shipping industry to determ

shipping statutes maintain 

wide conditions and inves

statutes and regulations 

Such violations can includ

following

Carrier and shipper 

rebates of freight 

misdescription or misd

Unlawful common carr

domestic offshore trad

Unlawful agreements a

subject to the Comms

Unlicensed ocean freig

In Fiscal Year 1986 

portion of its availab

activities including audits 

freight forwarder complian

vesseloperating common ca

discussed in greater detail 

this Report See pp 13 1

are in addition to the 

activities into alleged vio

1984 and other statutes and 

Commission
On August 1 1986 th

Maritime Commission and the Co

Service signed a Memorandum 

formalized a long standing but 

the agencies The agreement 

years seeks to strengthen each 

by promoting the exchange of 

agency sregulatory and enforc

information exchanges in this 

the understanding that such i

for official law enforcement p

Also in August 1986 t

hired an industry expert to ac

of serious industry malpractic

develop proposals to better tar

assist the Bureau in imp

strategies

During Fiscal Year 1987 

emphasis on detecting and inve

Additionally the Bureau of I

number of actions during Fis

increase its overall effective

bolstering of the field inves

new hires two in New York a

Los Angeles and Miami prov

with formal training in the 

Program at the Federal Law E

Glynco Georgia and the revie

and staffing to ensure a ba

investigative and surveillance 

port areas of the United Stat

to expand its efforts to use 

computer and telecommunication

monitoring capability

At the beginning of the 

181 field investigations in pr

new investigations and su

initiated providing 1006 cas

8
inquiry Completed in

activities totaled 701 leav

of the fiscal year Appe

Investigations activities
J BUREAU OF A

The Bureau of Administrat

year 1986 It is responsible 

and coordination of the

Office of

Office of

Office of

Office of

and

administers

is responsible

the Commission s

for

Commission sphysical fiscal

the Congress

Appendix G

systems for

Budget and Fin

Personnel

Administrative 

Special Studie

During FY 1986 the 

Administration was the Exec

Advisory Committee Comm

Administrative Conference o

Commission representative to th

functions and achievements of 

the narratives under the Burea

1 Office of Budget and Finan

a General

The Office of Budget 

o

Director of the Office of Bu

reports directly to the Direc

The Office is charged 

budgetary and financial p

developing annual budget jus

and the Office o

The Office also 

agency funds 

programs and the commission s

89
b Objectives

The objectives of the 

Submit annual budget 

OMB and the Congress

Execute the budget to 

properly expended

Prepare regular finan

decisions

Administer the cont

employment

Collect all fees and fo

Process payments to 

expeditiously as poss

Make certain resource

fraud waste error a

Process travel orders 

time limits and

Review internal contro

ensure they conform 

develop procedures to 

c Achievements

During fiscal year 198

Prepared Merit Pay and 

Participated on the ta

evaluate the capabiliti

provide personnel proce

Participated in the 

payroll functions to th

Developed fiscal year 

under the Balanced 

Control Act of 1985 PL 

Participated in OMB and 

Assisted

official travel

in the

handbo

pre

Evaluated the costs 

provided by the agency 
Improved processing of 

optimum utilization o

discounts and to elimina

problem payments

Provided management with 

positions in grades GSGM 

Participated in the tarif

Monitored workyears obl

conformity to amounts app

Collected and deposited 

fines collections fre

vessel certification fe

procedures for cash depo

Developed proposed proce

collecting debts owed th

employees

Managed the Commission s

Assisted in developing a 

the Commission

Performed Cash Managemen

to Department of Treasur

Increased Office compute

Developed monthly repo

provide to agency mana

action and

Reviewed files for 

microfiching

d Prognosis

During fiscal years 198

continue to update financial 

financial management system i

and pursue initiatives leading 

budget and financial operation

9
2 Office of Personnel

The Office of Personne

management programs incl

position classification oc

employee relations The Dir

reports directly to the Dir

Significant achievements in 

fiscal year 1986 are outline

a Program Developme

The Office completed i

Public Law 98 615 establish

Recognition System PMRS 

Commission Order on PMR

supervisors and management o

GM15 are recognized and rew

Office cooperated with t

Management OPM staff in c

PMRS within the very short t

In addition it continued t

and legislation proposed by 

force and performance appra

The Office began the 

ramifications of legislat

retirement system and plann

on the new law to Comm

comprehensively training them 

new system In response to 

Commission entered into an a

provide automated personne

payment services at a subs

previously expended for pay

alone and has completed a 

system The conversion u

respond to employee agency 

requirements
The Office also comple

the new Performance Manageme

rate and SES employees and 

Adverse Actions published C

committees and parttime empl

Orders on the administration o

and the Senior Executive Serv

b Program Evaluation

The Office cooperated w

assessment visits audited 

appraisals and progress r

documentation assisted in 

standards of PMRS employees 

Review Board monitored the 

Counseling Services Program 

employees were aware of 

confidential

payroll data

assistance

to ensure

progra

that 

accurately documented

c Employee Relations

During fiscal year 19

promote the availability of 

counseling and assistance pro

program to its New York D

counselor to be available a

satellite counseling stations 

program makes professional he

of charge A reductioninfo

the Great Lakes District offic

employee counseling and job 

that district In conne

reorganization of Commission 

and submitted to OPM a reque

retirement to eligible empl

under this authority enabled 

accomplish a planned reorga

adversely impact employees 
efforts to enhance the worki

employees offering numerous 

safety The annual comprehe

Counseling services continu

employees contemplating retir

participate in a pre retir

Office also purchased a 

computation of employee ret

facilitate the preparation 

Efforts continued during 

concerning their responsib

conduct and performance in

grade increases and awar

problems

discussing

as well as

In this connect

these matters an

recent case law 

Board Supervisors were in

to particular problems whic

resolve performance or cond

worked closely with

employees affected

due rights The

grievance procedure

Commissi

by adver

Office a

and cont

of an agency newsletter

d Performance Apprais

annual

The

performance

Office of Personne

evaluati

covered by the Performanc

System In addition the 

common standards for manage

assisted supervisors in prep

standards necessitated by c

developed procedures to be 

detail and collateral du

managers and other employees
e Incentive Awards

The Office administered 

granting awards to employees 

special achievements and sugg

f Staffing

In addition to regular 

fiscal year 1986 the Office 

to fill newly established or 

whose missions were directly 

Shipping Act of 1984 New 

developed in traditionally h

Senior Executive Service cand

successfully planned and co

nationwide recruitment effort

positions were filled A

feasibility of effecting int

critical program needs Effo

resources within funding limi

consultants and summer emp

volunteer and cooperative ed

g Position Classificati

The Office of Personnel 

officials in preparing posi

created positions and in o

organizations Specifically 

prepared for several newly 

Service positions and senior 

Investigations

3 Office of Administrative S

The Office of Adminis

administers a variety of mana

are principally program su

operation of the Commission 

The Director of the Office 

reports directly to the Direc

95
The Office ssupport p

procurement of administrativ

management space managemen

records services reprodu

facilities and equipment m

The Office smajor functions 

necessary supplies equipm

support of the Commissis 

regulations policies proce

use and provision of these 

with the Federal Acquisition 

Property Management Reg

appropriate Federal guidelin

In fiscal year 1986 

Services major accomplishme

Establishment of Coms

program

Issuance of Commission 

Realignment of the 

reproduction activitie

Initiation of proc

telecommunications ord

a telecommunications d

Automation of procurem

Federal Home Loan Bank 

Realignment of the Cos

activity

During fiscal year 19

coordinate and administer t

over the past several years 

Managing Directives relative 

automation of the telecommu

of Commission space in both 

better utilization and cost 

of the Commission sproper

automation 5 reestablish

supported procurement p
considerations and training 

positions for correct classifi

By fiscal year 1988 

Administrative Services is to 

of its existing programs and 

serve the Commission sneeds 

significant changes within t

This evaluation will includ

structure and staffing as we

4 Office of Special Studies

Created in March 1986 

is responsible for perf

activities conducting ener

studies and providing lead

Commission sinformation reso

Office Director who reports 

Administration also served 

Officer during fiscal year 19

a Management Analysis 

The Management Analysi

internal studies and audits 

effectiveness and economy 

agency resources and 2 

results and objectives are b

Office is also responsible fo

Office of Management and 

reporting requirements impos

other phases of the Paperwork 

coordinating governmentwide 

preparedness and records mana

b Energy and Environm

The Office ensures C

National Environmental Polic

Energy Policy and Conservati

examining all Commission ac
Commission sdecisions will 

environmental quality or e

environmental assessments 

appropriate and 3 reco

regulatory strategies which 

environmental goals or design

and conservation

c Information Resource

The Office plans and 

information resources managem

An evaluation of automation 

under way to study utiliza

currently in use Additional 

other opportunities for 

operations wherever possible 

During the past fiscal 

projects

freight forwarder and agree

efforts included the developm

Commission s

ability to 

were completed in 

responsibilities eg Tarif

Freight Forwarder Information 

Index Library Automation 

Commercial data bases were 

meet section 18 study go

ascertain financial respo

licenses conduct monitoring 

conduct legislative resea

movements

The Office of Spec

Information Resources Managem

refine and develop efficient 

of information management 

guidelines Additional activ

such automation efforts as 

boards optical character rec

of micrographics improved 

9
management information proce

other information management 

employees to be assigned to m

The Office was also 

conversion of all person

payments and purchasing m

automated system operated for 

Home Loan Bank Board

d Training

During Fiscal Year 198

employees participated in 

curriculum which included com

on training coaching of 

operations and formal clas

commercial and interagency 

supervisory training needs 

basis for training plans to e

equipped to manage their work

limited resources

e Other Specific Ach

During fiscal year

Office of Special Studies

Participation in th

Preparation of a ne

Evaluation of ne

software

Revision of the 

Controls

Evaluation

Evaluation

Evaluation

Evaluation

19

inc

of Comp

of the 

of tari

Establishment of

Toastmaters Club

opportunities

of Text 
Establishment of a

Evaluation of op

computers with the 

Initiation of m

microcomputer beu

Preparation of man

Tariffs and Office 

Development of sec

Services are dimin

Initiation of a tw

bulletin

Participation on 

Information Resourc

Research and eva

equipment

Development of the 

under the Financia

preparation of re

Senate The House 

Development of the 

administrator for 

system

Provision of 

hardwaresoftware 

microcomputer user

Review of all Com

filed for potentia

f Prognosis

The Office of Special 

physical inventory of all mic

boards accessories cables 

programming support and train

data bases to suggest shortcu

survey systems to determine w

office will also provide 

support for the tariff autom

to evaluate both software an

determine the most effici

1
acquisition funds During fis

develop a comprehensive plan 

which have not yet received m

liaison activities with oth

operators which could res

operations

The Management Analysis 

they were in fiscal year 1986 

Commission Orders relating 

Management and the Managemen

the Financial Managers Inte

Reporting Burden Data Base w

offices responsible for info

adequate advance notice of 

burdens Also planned for th

is development of a com

Commission sRecords Retention 

Finally all Commission 

will continue to be review

Studies for potential imp

Environmental Policy Act of 

Conservation Act of 1975

APPEN

B

00

IL

ON

APPEN

COMMISSION PROCEEDING

Formal Proceedings

Decisions 

Reconsiderations 

Discontinuances Dismis

Not Reviewed 

Remand 

TOTA

Special Dockets 

Informal Dockets 

Oral Arguments 

Rulemaking

Fina

1
APP

AGREEMENT FIL

FISCAL 

Agreements Filed in FY 1986 

Foreign and Domestic C

Terminals 

Labor Management 

Agreements Processing Catego

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon 

Determination of No Ju

Formal Extension of Re

Agreements on File as of Sep

Conference Reports Submitted 

Shippers Requests and 

Minutes of Meetings 

Pooling Statements 

Operating Reports 

Index of Documents 

Consultations 

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Sailing Charter 

Transshipment 

Cooperative Working A

Terminal 

Labor Management Agreem
APPEN

TARIFF FILING AND STA

Tariff Filings Pages

Foreign Filings 

Domestic Filings 

Terminal Filings 

Foreign Rejections 

Domestic Rejections 

Tariff Publications

Foreign On Hand 1

8

On Hand 18

Domestic On Hand 1

8

On Hand 18

Terminals On Hand 18

On Hand 18

Special Permission Application

Total Received Foreign 

Granted 

Denied 

Withdrawn 

Total Received Domest

Investigation and Suspension 

Domestic

Service Contracts

Granted 

Denied 

Withdrawn 

Completed 

Pending 

Filed 

1
APP

CIVIL PENALTIES CO

FISCAL 

Armada Great LakesEast Afric

AR Torrico Sons 

Bermuda Ocean Shipping 

Cari Cargo Int lInc 

Great Lakes Trans Caribbean 

Hyundai Merchant Marine 

JerseyNY Export Hassman 

Jorge Villena 

Joseph Chen dba Tung Tai E

Marcella Shipping Co Ltd 

Mitsui OSK 

Overocean Transport Corp 

Sea Trade Shipping 

Toyo Cotton 

Trans Pacific Westbound Rate 

TransSenko Corp dba Senk

West Indies Shipping Corp 
APPE

FIELD INVESTIGATIONS 

Surveill

Action

Pending 1085 62 

Opened FY 1986 666 

Closed FY 1986 513 

Pending 93086 215 
APP

STATEMENT OF APPROPRIATI

FOR THE FISCAL YEAR 

Appropriations

Public Law 99 180 ap

necessary expenses of 

including services as 

hire of passenger mo

allowances therefore 

5902 Provided that 

available for officia

expenses 

Public Law 99 177 

Deficit Control Act o

1985 

Revised 

Obligations and Unobligated 

Net obligations for 

fiscal year ended Septe

Statement of Receipts Depo

the Treasury for the Fiscal 

Publications and rep

Certification and Fre

Fines and penalties 

Total general fund rece
APPE

EXAMPLE OF MA

US ATLANTIC COAST EXPO

January to D

North AtlanticUnited K

Operator 

Cl 

C2 

C3 

C4 

C5 

C6 

Conference total with

greater than 1 shares 

Conference total with

less than 1 shares 

CONFERENCE SHARE 

Nonco

NCI 

NC2 

NC3 

NC4 

NC5 

NC6 

Nonconference total with

greater than 1 shares 

Nonconference total with

less than 1 shares 

NONCONFERENCE SHARE 

SHARES NOT ELSEWHERE CLASSIFIE

TOTAL FOR TRADE 

Tonnage is calculated in long 

Value is calculated in thousa

1
Carrier Survey

Characteristics of Firm

Service Contracts

Shippers Associations

Independent Action

Agreements

Intermodal ism

Tariffs and Rates

Port Antitrust Immunity

Access to Cross Trades

General

Shipper Survey

Characteristics of Firm

Service Contracts

Shippers Associations

Independent Action

Agreements

Intermodalism

Tariffs and Rates

Port Antitrust Immunity

Conference Behavior

Service Levels

General

APP

OUTLINE OF 
APPEN

CONFERENCE 

TIT

PROCEEDINGS The Shipping 

Impact A Conference spons

Commission and Old Dominion 

June 12 13 1986 Mark Linco

TABLE OF 

Introduction 

Session One An Overview o

Since the 198

Losses and t

Session Two Government Re

Liner Shippin

Session Three Government Re

Liner Shippin

Session Four Assessing the 

Session Five Current Trend

Organization 

Session Chairs and Panelists 

Conference Registrants 

Selected Press Coverage and C

A limited number of copies are 

Virginia Cen

Old Dominion 

Norfolk Virg

1

This report w

The Comms

a

Edite

John Rob

With specia

Mary McPherson D

Lyvette 

z US GOVERNMENT PRINTING OFFICE 1

1