FOURTEENTH A

of 

FEDERAL MARIT

Fiscal Year End

TABLE OF C

SCOPE OF AUTHORITY AND BASIC FUNCTIO

HIGHLIGHTS OF THE YEAR 

U S OCEANBORNE COMMERCE IN REVIEW 

Intermodalism 

Development of containerizatio

LASH Seabee and RollOnRollO

Trends in Trade 

Freight Rates and Surcharges i

SURVEILLANCE COMPLIANCE AND ENFOR

Agreements Review 

Tariff Review 

Dual Rate Contract Systems 

Domestic Commerce 

Terminals 

Water Pollution Financial Res

Ocean Freight Forwarders 

Passenger Vessel Certification 

Field Activities 

Shippers Requests and Compla

Informal Complaints 
SPECIAL STUDIES AND PROJECTS 

PROCEEDINGS BEFORE ADMINISTRATIV

FINAL DECISIONS OF THE COMMISSIO

RULEMAKING 

ACTION IN THE COURTS 

LEGISLATIVE DEVELOPMENT 

ADMINISTRATION 

Statement of Appropriation 

for the Fiscal Year Ended J

APPENDIX A

Statistical Abstract of Fil

APPENDIX B

Organization Chart 
FEDERAL M

WAS

Jun

Helen Delic

James V D

Ashton C B

Clarence M

1 As of June 30 1975 one vac

to the resignation of Commi

SCOPE OF AUTHORI

FUNCTIO

The Federal Maritime Commission w

agency by Reorganization Plan No 7 e

basic regulatory authorities are derive

Merchant Marine Act 1920 Intercoasta

Marine Act 1936 Public Law 89777 of 

Law 92 500 1

The Commission is composed of five 

the President with the advice and cons

Commissioners are appointed for 5year 

three of the Commissioners being appoi

party The President designates one o

Chairman who also serves as the chief 

officer of the agency

The statutory authorities and fun

the following principal areas 1 Re

and agreements of common carriers by w

engaged in the foreign commerce of the 

rejection or disapproval of tariff fil

in the foreign commerce of the United 

fares charges classifications tarif

of common carriers by water in the dom

United States 4 licensing independe

investigation of discriminatory rates 

practices in the waterborne foreign an

1 As implemented insofar as the Com

Order 11735 dated August 3 1973
2

6 issuance of certificates e

vessel owners or charterers to 

death or to repay fares in the 

or cruises 7 issuance of ce

sibility of vessel owners cha

liability to the United States 

substances and 8 rendering d

rules and regulations governing 

water terminal operators frei

subject to the Commission sjur

Washington

The Commission s

DC 20573

headquart

Field 

Atlantic District

Pacific District 

Pacific District Southern Ca

fornia

Gulf District

Puerto Rico Office
226 057 0 76 2

HIGHLIGHTS OF THE 

Fiscal year 1975 saw the continued 

on ocean carrier activities as reflected 

investment

The year also witnessed an ever gro

by state owned fleets particularly thos

Containerization continued apace w

converting to container operations and t

facilities to accomodate them

The Commission continued its efforts 

haphazard growth of intermodalism and th

rebating and other malpractices

State Owned Fleets

There is a growing impact being mad

owned fleets of the Soviet Union and oth

This impact is being felt in many trades 

cross traders Typically they will ent

structures pegged considerably lower tha

with respect to high rated cargo This 

conference and independent rate structure

ground for the growth of malpractices
4

Many conferences have 

them as members In this 

cross traders under their 

downward pressure on confe

year some of these effort

Code of Conference Conduc

The rising disconten

practices has culminated i

establish a worldwide co

have as its keystones the 

conferences It is these 

disagrees it being our p

competitive position of th

States has announced its p

in its present form

Foreign Discrimination

There is a continuing 

laws and decrees restrictin

another Since this inev

United States the Commis

lance over such edicts an

authority under section 19 

that provision authorizes 

action against foreign dis
In furtherance of this responsibil

its General Order 33 implementing section 

specify what conditions are unfavorable 

which the Commission will proceed to cou

Containerization

Containerization of cargoes as a te

major consideration in virtually every a

cated services operate between the Unite

ized nations Additionally containeriz

introduced into South America and Africa

Minibridge Operations

One outgrowth of the container revo

operation The minibridge is a system 

an inland point of origin to a foreign d

of revenues between the land and water c

tool used by ocean carriers to compete f

service directly

Minibridge tariffs have proliferated 

exist for traffic between the Atlantic 

Europe and the Far East Not surprising

significant amount of litigation in the 

Commission instigated primarily by port 

contend that minibridge constitutes an u
6

Intermodal Legislation

The potential benef

not being realized fully 

doortodoor systems

For the past several 

proposed legislation whic

under a through bill of la

not be possible for the t

the benefits of containe

Commonwealth of Puerto Ric

During the fiscal ye

commerce The Commonweal

Rico Maritime Shipping Au

carriers in the Atlantic a

Service and its related c

Lines and Transamerican T

in the Puerto Rican trades 

The Commonwealth has 

contracted with whollyown

operation of ships and sho

have been instituted into 

Commonwealth and the forme

Particularly in the latter 

unique propositions of law
SelfPolicin

A new trend is emerging in the all 

of conferences In both the European an

systems have been established in an atte

and punish the miscreant lines The Co

efforts wholeheartedly and is keeping a 

determine if these efforts are successfu

practices alleged to be rampant in these 
8

U S OCEA

It is difficult for i

intermodal operations As 

we have three regulatory a

the Civil Aeronautics Boa

concerned These three ag

deal with intermodalism as 

that legislation delineatin

all of these agencies has 

legislation with respect to 

The Commission sactio

intermodalism by conference

the years In 1968 the C

regarding intermodalism in 

Marine Lines Through Interm

FMC Nos 10 and 11 11 FMC 

early January 1968 filed 

in the United Kingdom via 

United States via the Port 

the opposite direction CM

them with revised tariffs 

effective May 6 1968 The 
to any inland service in the United Sta

rates to and from the United Kingdom po

Felixstowe were retained

The Commission found that the inter

CUL was not within the scope of the con

there any conflict between CML s portto

rates and the port toport conference r

tariffs were accepted for filing subjec

thereto

In 1969 the Commission issued a d

Atlantic Gulf West Coast of South Am

No 2744 30 et al 13 FMC 121 gran

nine conferences in the Latin American 

the conferences intermodal authority an

negotiating establishing publishing o

outside of the conference agreement fra

sidered that if member lines were free 

intermodal matters conference action c

also recognized that a conference by in

members or otherwise could effectively 

progressive members from instituting in

balance these two extremes approval wa

the proviso that if the conferences did 

during the first 12 months then the m

intermodal rates
10

The Latin AmericanPac

Agreement No 8660 introdu

was approved by the Commiss

the conference to enter into 

portation for the establishm

relating to through intermod

desiring to establish for it

arrangement or bill of ladin

to the conference Only in 

unwilling within 90 days to 

line shall that line be free 

at any time has the power an

provisions and thereafter to 

line to the conference actio

On May 28 1975 the Co

of time the requests for ex

the Latin American Freight C

No 69 33 covered above Th

authority quite similar to th

Such language assures th

be stifled However the con

authority to adopt through mo

the time of such adoption to 

the conferences action
Of the 29 conferences and rate a

authority six have implemented same 

with the Commission Three cover the 

covers the North EuropeUnited Kingdom 

trade and one the Hong Kong trade

During the seven years from cons

Docket No 688 six conferences have 

intermodal rates When compared with 

intermodal tariffs on file discussed 

implementation of intermodal service 

A number of conferences have file

implementation of intermodal service 

has been subjecting any approval of i

removal of such prohibitive language 

conferences have requested additional 

modal language which they anticipate 

the member lines as well as comply w

that intermodal authority should not 

individual line simplementation of i

The Steamship Operators Intermod

behalf of its member lines container 

Commission in approving its basic ag

and Pacific Coast Regional Committee

geographic interests of the lines I

finalized the Uniform Intermodal Inte

forth the rules under which water r

226 057 0 76 3
12

interchange containers in the 

agreement were representative

of American Railroads the tr

Association and Federal off

been working on uniform free 

Development 

In order to keep contain

possible carriers enter into 

Nineteen such agreements have 

izing the parties to interchan

andor related equipment Fo

which provide that one carrie

equipment of the other party 

Seven carriers in the Fa

agreement to lease and or inte

leasing of containers the pa

charges assessed to the Comm

Another source of contai

carriers by water who own an

and shippers For a fee usu

such containers to supplement 

parties involved the common 

Act 1916 such transactions 

jurisdiction
In view of the limited number of 

operation in relation to container ves

accommodate some containers only thre

have been filed with and approved by t

The Japanese carriers have extend

Atlantic Coast their method for assur

are operated with maximum utilization 

chartering arrangement no money is in

accounting for the spaces actually use

vessel is available to each of the gr

reduces the overall cost of operation 

each participant and benefits the ship

vessel for their cargoes The Japane

agreements in effect between Japan an

Japan and the Atlantic Coast

The International Council of Co

consists of common carriers by water 

vessels in the U S foreign commerc

under a discussion agreement is conc

industry planning with respect to a b

environmental controls intermodal re

developments fuel and energy require

policies port development and other 

affect maritime activities Since th

ment the parties have dealt with suc
14

the fuel crisis the danger 

They are concerned with futu

problem legislation and the 

terminal operators and steam

LASHSeabee and 

During fiscal year 1975 

activity involving LASH Seabe

employing the system remained 

foreign flag LASH services 

U S Gulf South Atlantic a

On December 30 1974 a 

line entered into an agreemen

furnish a fortnightly service 

and four to Maracaibo and Ma

Venezuelan trade This is an 

One significant Section 

during fiscal 1975 was the m

Conference to extend its scop

to its ocean ports in both th

in order to accommodate the L

consequence all of the LASH 

Also near the close of 

expand the scope of a coopera

in order to cover the service 
desire to join the agreement The pu

allow the parties to exchange barges 

jointly establish operate and share 

and facilities in order to reduce the 

involved in such service

With respect to rollonrolloff 

agreement was approved between two au

Kingdom U S Pacific Coast trade for 

automobile carrying capacity in this 

Also the flexibility of RORO se

useful in those Latin American count

adequate shoreside handling equipment 

service Recently a new agreement w

introducing a new RORO service into t

A major purpose of shipping con

of shipping lines serving a particula

to control competition among members 

effectively with nonmembers Their e

ent carrier competition and anticomp

their regulation

UNCTAD

Trends in T

Because there has been considera

of developing countries as well as a
16

the structure and restraints 

United Nations Conference on 

several meetings relative to 

conference system mostly at 

The meetings attended by rep

countries have resulted in t

for the Regulation of Liner C

The Commission has been 

under the auspices of UNCTAD 

of the Code However the U

steps to ratify the Code in 

on cargo sharing between ship

reduction of the competitive 

because the Code favors the c

Conference Entry

It is the responsibility 

Act 1916 to determine that 

foreign commerce of the United 

terms and conditions for the 

qualified common carriers by w

Commission sown General Orde

qualified carriers in conferen

conference may for reasons of 

an existing rate structure or 

councils or direct or covert g
the entry of an otherwise qualified 

presently involved in just such a ma

bound trade from Australia to our Ea

handled as a complaint under Section 

While the Commission has a mand

open conferences it is interesting t

flag carrier had made a strong sugge

reassess its policy of open conferenc

dramatic and increasing incursion of 

trades with concomitant overtonnaging 

Shipper Councils

Shipper councils are becoming a 

international trade In Australia J

shipper councils often exercise powe

conferences to effect rate changes a

service to specific ports and various 

Australian conferences are required t

with the Australian Shippers Council 

council before admitting new members 

has sought agreement from the two inb

amend the conference sexclusive patr

and reduce the amount of damages that 

where a shipper has breached the term

the Indian trades are under constant 
18

Shippers Council concerning r

regulatory control over the a

must consider and carefully w

activities of conferences ope

Pooling and Equal Access

Bilateral pooling and equ

continue to be of major concer

ences inherent in such arrange

third flag service and because 

service between carrier partic

the Latin American trades wher

trade patterns between the Uni

Chile Colombia Guatemala Pe

goods imported on national ves

preference for national vessels 

decrees fixing shares of impor

vessels are but a few examples 

In recognition of the hig

agreements the Commission con

their terms of approval and ma

activities of the agreement pa

meaningful report data
Foreign Discrimination

Pursuant to Section 19 of the Me

Commission is authorized and directed 

of the purpose of this Act to make ru

shipping in the foreign trade for the 

conditions unfavorable to shipping in 

out of foreign laws rules or regulat

methods or practices employed by owne

of vessels of a foreign country

In response to this mandate and b

and decrees of foreign nations which 

unfavorable to shipping in our foreign 

promulgated Regulations To Adjust Or 

Shipping In the Foreign Trade Gener

effective December 2 1974 The regu

which are unfavorable to all shipping 

the foreign trade of the United State

noted that the reservation of cargo to 

vessels without equal access is consid

The Order clearly indicates that any 

trade of the United States is unfavor

regulation by the Commission Regula

Commission on its own motion or upon 

Commission is hopeful that due notice 

all who would attempt to place any of 

unfavorable in the Order on shipping 

226 057 0 76 4
20

Soviet Expansion

Soviet maritime expans

Commission In their marit

the Soviet Union aims for 1

ports between our countries 

bilateral agreements exist 

is anticipated that the Sov

the UNCTAD Code However 

them the best of two possib

Code would reap political a

because they are in control 

can direct any desired perce

Code may also act as officia

more heavily in cross tradin

Cross trading is a mat

from certain trades shows th

cost criteria offer rates fa

conference carriers can affo

FESCO the Soviet operator 

typically quotes rates 15 pe

instances at least double th

member of the Far East Discu

other carriers in discussing 

in the Pacific trades Then 

membership in the Far East C
Atlantic and Gulf ports to the Far Ea

U S West Coast in 1971 with three sh

eighteen ships

Chinese Growth

The merchant fleet of the Peopls

one of the highest growth rates in the 

represents only a part of its maritime 

shipping companies in Hong Kong and M

million deadweight tons of merchant sh

flags to serve its economic and politi

some 70 nations and call at more than 

Mediterranean East and West Africa J

partner other parts of Asia and Oce

America and the Caribbean principally 

During the past few years China h

of grain from Canada Australia and th

consist of technological equipment to 

industrial sector Goods brought in m

those considered essential to make the 

reliant as possible

At the present time competition 

more in the realm of potential rather 

PRC conference members in our foreign 

Far East Enterprising Company Ltd F
22

independent tariffs with th

Chinese ports to ports on th

Pacific Coasts

Canadian Diversion

The Commission has been 

via Canadian ports of cargoe

United States We have felt 

on other than natural econom

substantial as to cause inju

States Carriers serving o

through their conference org

American Working Agreement 

Canadian conferences serving 

and Canadian North Atlantic 

conferences to apply the po

the North American country f

regardless of whether it ac

In other words porttoport 

vehicle to effect cargo dive

Agreement No 10090 exe

originating west of 76 West 

insisted on this exemption b

Commission approved this res

preliminary arrangement and 
be prepared to include the entire Unit

Agreement No 10090 by October 31 19

shall expire unless extended

SelfPolicing

One of the major trends in the U

trade has been the upgrading of self p

better control malpractices In gene

have been adopted either through subs

policing system of the Associated Nort

or through establishment of similar p

Another trend in this as well as 

development of agreements among conta

chartering arrangements and other coo

promoting greater vessel utilization a

calls in order to conserve fuel and re

providing adequate service to all port

In the Latin American trade as i

Continental trade crosscharter and s

ments are coming into vogue In some 

are intended to increase the efficienc

costs of the carriers involved In o

upgrade the services of stateowned o

increase the participation of less dev

transport of their own foreign comme
24

Freight Rates and S

The spiriling cost of d

as a result of inflation aga

revenue and numerous carrier

their rate structures In a

tinue the imposition of old 

because of the many problems 

Surcharges

The Commission has long 

conferences to impose surchar

ports as a result of certain 

increase vessel operating cos

congestion warlike condition

in bunker prices However t

surcharges added to the base 

ability of an exporter to se

Therefore whenever a surcharg

requested to provide complete 

Whenever a surcharge invo

State is asked to provide data 

affected port Further the C

journals and periodicals whic

existing conditions at congest
waiting time for berths at congested 

of one hundred days In general thro

concerned carriers congestion surcha

beyond the period of need

The sudden and varying fluctuatio

throughout the world since the Britis

resulted in the filing of currency su

carriers find this necessary since th

currency for freight payments results 

international money market The Coms

exchange rates determines the extent 

valid Whenever the published surcha

data available the carrier or confere

requested to make an appropriate adju

merchants freighting contracts which 

notice of rate increases to contract 

may not be implemented before the pas

that this could result in a financial 

Commission at the close of the year a

currency surcharges could become effe

specified conditions However in re

surcharge which would increase shippe

a reduction in the surcharge whenever 

Although fuel oil prices were un

fall of 1973 it was at that time that 

The astronomic increases in price cau
26

surcharges to account for the 

increased after the initial p

the need for additional carr

the carriers and conferences 

justify the level based upon 

surcharges appeared to be jus

ments were required to be mad

be stabilized the Commission 

justified As a result of th

excess of 400 tariffs were red

appeared that there would be n

fuel the carriers and conferen

into their rate structures O

fication of the surcharges in 

money required to cover the ad

structure With the exception 

cooperated with the Commission 

recalcitrant conferences and by 

submitted data indicating the n

plished The remaining confere

the Commission issued its orde

was being examined at the close 

reduction was sufficient

War risk surcharges also r

hostilities flare up in differe
and conferences publish war risk surch

in insurance rates and crew bonuses 

these surcharges as they are being fil

Maritime Administration and other sou

increase in insurance rates and other 

surcharge filed Whenever the cost is 

contacts the carriers requiring reduc

surcharges as appropriate in the ev

accomplished

Throughout the year war risk sur

in Vietnam Cambodia Lebanon Lybia 

and Cyprus

Disparities

The Commission is one of the mem

Interagency Committee on Export Expan

by Executive Order 11753 on December 

Task Force on Ocean Freight Rate Disp

initial meeting of PICEE on January 2

designated Chairman for the Task Forc

is to study the problem of ocean freig

inbound outbound disparities as well 

The action program established by the 

1 establish and maintain contacts w

2 disseminate information and advice 

commodity disparities to take correct

225 054 0 70 5
28

authority 4 establish and 

Export Council 5 support a 

and codes for filing in tarif

to deal with the problem of o

The Task Force has maint

Export Council and established 

advise the Commission or the 

the private exporting sector 

contact with the exporting com

Councils and fortytwo Distric

Department of Commerce The C

investigation has pursued res

freight rate disparities in th

Commission has been successfu

disparities on numerous commo

of the Task Force is being sup

respect
SURVEILLANCE COMPLIANCE 

Agreements R

Section 15 of the Shipping Act 1

approval shall not be permitted any co

to provide certain terms and condition

to conference membership and withdraw

It further provides that the Commissio

agreement after notice and hearing on 

policing of the obligations under it

maintain reasonable procedures for pro

shippers requests and complaints S

criteria for approval of agreements

During fiscal year 1975 133 car

under Section 15 A statistical table 

agreements appears in Appendix A

The surveillance of approved agre

basic agreement and modifications the

it continues to meet the requirements 

Commission sGeneral Orders ie 6 

and is in conformity with the latest 

If the agreement is not in conformity 

correspondence is undertaken with the 
30

attempt to have the agreement 

Occasionally the parties com

formal proceeding Under our 

year 1975 211 agreements hav

have been sent concerning ce

they are still in effect or s

agreements have been canceled 

concerned transshipment agree

years 1974 and 1975 a total 

In fiscal year 1976 our review 

agreements consequently the 

decrease

The Commission receives 

which it analyzes to determine 

committed by the parties tha

activities beyond the scope o

their activities upon compet

Minutes of Meetings

It is the responsibility 

parties to Section 15 conferen

times complying with the Ship

agreement In order to discha

must be fully and currently a

operations are being and will 
meaningful and timely reports such as 

the implementation of the proposed rul

discussed elsewhere herein the parti

in their minutes whereas the parties n

with respect to matters discussed upon 

This will enable the Commission to be 

activities

As more discussion agreements are 

approving same the Commission is imp

of meetings between the parties and co

the parties be filed with the Commiss

In fiscal year 1975 1923 minute

ratemaking and discussion agreements 

and reviewed by the staff

Shippers Requests and Complaints

The phrase shippers requests a

communication requesting a change in 

tions objecting to rate increases or 

alleged erroneous billings due to an 

tion incorrect weight or measurement 

tion of the tariff Under Docket No 

definition of shippers requests and 

include the reporting of such other re

pertaining to carriers practices 
32

reports of shippers requests 

Commission are almost always 

relative to rate adjustments 

agreements do receive complai

have been established by conc

in any conference or other rat

In fiscal year 1975 292 

complaints were filed with the 

Self Policing Reports

These reports are intende

to which conferences and rate 

of their member lines with res

agreements or tariffs In ord

agreements are actively engage

Section 15 more stringent sel

incorporated in rulemaking pro

before the Commission covered 

In fiscal year 1975 182 

filed with the Commission and 

Pooling Statements

Pooling statements are file

apprised of the activities of t

most anticompetitive type of a
the financial settlements made betwee

terms of the pool formula in the basic 

are usually filed on a semiannual and

time is needed when followups are re

statements to ensure compliance by the 

their agreements The majority of po

American trades They usually require 

American Government served in addition 

they may be implemented The policy 

involved and the conditions desired b

flag line usually government owned 

in the processing of such agreements 

of the reports to be filed following 

agreement

Fifty one pooling statements wer

audit by the staff during fiscal year 

are becoming increasingly complex due 

to some agreements to effect various 

such as intricate overcarriage unde

ton forfeiture provisions There hav

time lapse between the due date and t

statements which is caused to a larg

settlement under the pool must be agr

including the foreign flag particips

complexity of the agreements pool fo
34

Operating Reports

Reports being submitted b

by parties to such new agreem

primarily in the Japanese tra

arrangements and sailing agree

Reports In view of technolo

expected that such reports wi

These reports in many instanc

order that the Commission be a

and assured that their operatio

approved agreements

Ninetyfive operating rep

reviewed by the staff in fisca

SelfPolicing

The Associated North Atla

No 9978 approved by the Comm

policing system covering the a

conferences Thereunder the E

ized representative in additio

activities based on complaints 

considers appropriate In add

authority covering member confe

Executive Director to perform c

determine that the contents of 

of lading and that the proper c
Executive Director also has the author

enforcement and or inspection services 

or conferences This latter authority 

of individual contracts The agreemen

to cargo inspection that any carrier p

the Executive Director as its agent fo

freight and applicable tariff charges

With respect to the Far East Fre

performs selfpolicing services for th

Conference of Japan Korea the JapaKore

Conference the Trans Pacific Freight 

York Freight Bureau Hong Kong and t

Conference Services Inc also carries 

It has offices in the Far East and the 

Nonexclusive Transshipment Agreements

General Order 23 exempts nonexclu

agreements which do not prohibit eith

similar agreements with other carriers 

Section 15 However such agreements 

outlined in the General Order and the 

language required by the order The C

reviewing such filings as they are pro

provided in General Order 23 Since t

226 057 0 76 6
36

Order through June 30 1975 

have been filed with the Co

agreements were in effect

Domestic Agreements

During fiscal year 1975 

were filed for Commission co

receipts and total active agr

Terminal Agreements

During fiscal year 1975 

Commission consideration A 

active agreements is attached 

Ta

Foreign Rates

Tariffs and amendments th

staff taking into account the 

Section 18b and Gene

filing rules and regu

Section 15 as to wheth

thereunder or whether 

therein might extend be

Section 14b and the v

contract systems as ap
Sections 14 16 and 17 which p

nations and undue or unfair pref

General Order 4 which governs th

compensation to be paid to licen

in a carrier soutbound tariff

General Order 8 which prescribes 

with respect to free time and de

shipments to New York

General Order 10 which governs 

rates on green salted hides and

General Order 26 which prescribe

outbound rates at New York or P

rule regulating free time and de

General Order 13 prescribes the m

ocean carriers engaged in the United S

filed to comply with section 18b Sh

the Commission issued an amendment to 

for the filing of intermodal tariffs in 

making intermodal movements a practica

the Commission approved a completely re

at tariff simplification and standard

represent the limit to which the Feder

reach under existing legislation to en

intermodal network
38

The number of tariffs 

commerce of the United State

fiscal year 1975 This was 

ascertain whether tariffs o

several years were in an ac

in 328 tariffs being cancele

and filed furing the fiscal 

During the fiscal year 

tariff filings of which 365

fiscal year there were 317

The Commission under s

the 30day notice provision 

in the foreign trade in its 

fiscal year 1975 the Comm

applications requesting waiv

a variety of reasons Out o

processed 64 were granted 

The Commission sactivi

to an examination to insure 

is met Programs have been 

examination is made of 1 

lading 2 conference tariffs 

with the authority granted u

to insure that rates rules 

discriminate between or amon
undue preference or advantage to any pa

description of traffic 4 the level of 

tion 5 intermodal tariffs visavis p

6 any changes in trading area patterns 

The Commission also continued duri

representatives of other government age

to seek resolution to problems of mutua

Domestic Rates

The Commission sregulation over r

trades is prescribed by section 18a o

the Intercoastal Shipping Act 1933 

unlike the U S foreign commerce the 

suspend a rate prior to its effectivene

determine the reasonableness of the pro

making recommendations to the Commissio

its suspension power care must be take

patterns as the shipping industry reac

1 shifting competitive positions 2 

governmental actions and 4 advancing 

During fiscal year 1975 there we

986 of which were rejected for failure 

regulations as prescribed by section 2 

Act 1933 and the Commission sTariff 
40

98 applications for special 

Intercoastal Shipping Act 1

processed

Terminal Rates

All U S terminal oper

required to publish and file 

the rates charges rules an

offered at their facilities 

operators andor common carr

prior to their implementation 

as to whether or not they qu

under section 15 of the Shipp

In the course of fiscal 

filings were received from te

the fiscal year the Commissi

tariffs on file

Dual Rate 

Activities with respect 

contracts authorized pursuant 

fairly frequent during the fis

for the Pacific Coast Indonesi

new system was filed in behal

Atlantic Westbound Freight Co
In addition to new systems a num

modified for various and sundry reason

were applications to extend the covera

points in the foreign area to coincide 

the conference agreement

A major development in the area o

recent adoption by the Commission of n

flexibility in increasing rates on sho

devaluations of tariff currency in rel

currencies in a given trade Previou

restricted to official devaluations be

regulating de facto devaluation How

international monetary problems carrie

which normally require 90 days notice 

were experiencing substantial revenue 

Domestic Comm

Repeal of Section 6 Intercoastal Ship

In October 1974 the 93rd Congre

This law repealed section 6 of the Int

which provided for the carriage stora

or at reduced rates for the United S

Governments or for charitable purpose

Congress the Commission canceled Rule 
42

No 3 Cancellation of this ru

and conditions for filing of ra

of U S Government personnel a

The Commission apprised a

trades of the Congressional and 

of the need to either reissue i

effective government tenders by 

NVO Workshop Seminars

Workshop seminars were con

during July 1974 These semin

of the Commission sregulatory 

and to provide technical assist

Included in the seminars w

the Interstate Commerce Act th

Harter Act Also discussed we

procedures special permission 

tions designed to help eliminat

Tariff Circular

A proposed revised Domest

After more than twentyseven y

prescribing the filing of dome

constitute a massive overhaul 

a document which is more respo

industry and the Federal Mariti
Automobile Guide

The 9th annual edition of the F

Automobile Manufacturers Measureme

automobiles was published in late No

the automobile industry was an impro

eighteen out of a total of 24 manuf

data

Hawaii

Hawaii was the subject of numer

during fiscal year 1975 Matson Nav

an increase of its automobile rates 

which was suspended by the Commissio

allow a 125 percent increase in the 

State of Hawaii sposition that the 

The matter is currently the subject 

the Commission Later in the fiscal 

increase amounting to approximately 

placed under investigation

Also suspended by the Commissio

applicable on paper products and rel

Pacific Northwest to Hawaii Subse

received special permission to cance

reinstate the original rates statin

situation surrounding the rate level

involved shippers

226 057 0 76 7
44

Although the trade between 

continues to be dominated by M

stimulated in the latter part o

United States Lines Inc US

tariff USL had previously file

tariff with the Interstate Comm

item Freight All Kinds tariff 

In June USL filed amendm

Foodstuffs provisions of its We

to 40 foot containers The pro

who had also filed similar prov

The Commission ordered an inves

provisions to determine whether 

discriminatory and or preferen

The recent decision of Mat

service between Los Angeles and 

protests It is contended by M

necessary and is aimed at a mor

While the carrier appears to be 

any hardships caused by this re

to persist and it is uncertain w

An aggressive ongoing progr

misdescription practices among W

carriers has been maintained A
Z

under section 16 of the Shipping Act 

appeared to resort to this practice t

higher tariff rates

Puerto Rico

A 35 percent general rate incre

operator in the U S Gulf Puerto Ric

a 7 percent emergency surcharge red

was scheduled to become effective app

carrier had effectuated a 46 percent 

with a 3 percent reduction of its bu

The proposed tariff changes were 

of a formal proceeding The suspensi

the information submitted by the car

tariff matter was insufficient The 

additional information which overcame 

quacies of the data originally subm

upon further consideration vacated i

the tariff matter to go into effect

The Puerto Rico Maritime Shippin

U S East Coast Puerto Rico trade f

scheduled September 1 1974 effectiv

process of acquiring the assets of Se

Lines Inc and Transamerican Traile

announced that its tariff would name 
46

those offered by the three carr

tariff which contained some 515 

costs to shippers due to the eli

and an increased level of LTL ra

Approximately 25 protests w

of the proposed tariff Meeting

PRMSA in an effort to try to res

to consider specific protested m

effective date of the tariff in 

to the necessary adjustments

Thereafter some 400 pages 

tariff which required a thorough 

examination and comparison of ap

accomplished in addition to an e

per trailer charges After furth

tives additional adjustments we

became effective on September 16 

between staff members and carrie

one hundred percent of the prote

container rules in the tariff h

In January 1975 PRMSA ame

of wharfage charges at the Ports 

proposed charges were at the san

ports of Charleston Jacksonville 
the proposed charges were received an

along with supportive data submitted 

review permitted new wharfage charge

In April 1975 PRMSA filed ame

application to the port of Miami G

was extended at PRMSA aapplicable Ja

on certain specified commodities new 

at the level of PRMSA s only compet

Jacksonville and their extended Miam

placed under investigation

Alaska

Four major Alaskan water carrier

general rate increases in early Sprin

Alaska Pipeline has generated a large 

building supplies boats and general 

the western portion of Alaska for co

families This demand has resulted i

and increased operating costs to the 

An application has been filed fo

exemption from the Intercoastal Shipp

Act 1916 for the carriage of goods 

Alaska Pipeline between all ports in 

except ports in the Mississippi Rive

Louisiana and the North Slope of Ala
48

that the currently effective ex

1975 be extended for an additio

Te

The marine terminal indus

connection between the ocean ca

serves is also regulated by the 

D S terminal operators serving 

to publish and file with the Co

charges rules and regulations 

their facilities Also certain 

andor common carriers by water 

their implementation for a dete

whether or not they qualify for 

section 15 of the Shipping Act 

Aside from providing the tr

handling breakbulk and bulk carg

provides the pivotal point of la

scheme a point at which the inh

efficiencies of intermodalism ov

be best maximized At this poi

of terminal development and mod

and LASHSEABEE transportation s

of dollars have been expended in 
rehabilitation of older facilities 

upland handling areas for container t

assembly areas for serving LASHSEABE

loading and unloading rollonrollof

facilities either have been or are in 

at virtually every major U S port

As a matter of fact it now appe

themselves faced with some degree of 

facilities In view of this the Co

fiscal year 1975 to consider an agree

proprietors which would coordinate th

so as to deemphasize further constr

facilities and focus their efforts on 

of cargo

The involvement of our vast inla

foreign commerce is also continuing 

the recently inagurated LASH SEABEE 

is cargo that once moved overland be

destinations now moving directly to 

but the impetus towards the developm

industry is growing as well due to 

transportation

Rulemaking

The continuing trend of marine 

simultaneously as stevedores and ope
SO

coupled with the tremendous incr

rollonrolloff vessels has re

between terminal operators and w

inclusive terminal stevedoring s

jurisdictional problems inasmuch 

the activities of entities actin

been ruled on by the Commission 

industry with respect to the sec

types of agreements the Commiss

rules in Docket No 71 75 Rules 

Between Common Carriers and or O

Act 1916

In its November 11 1974 o

Warehousemen sAssociation v The 

announced its intention of lookin

consideration presented by ports 

distribution centers It is expe

promulgate a statement of policy 

The Commission in its final 

Stevedoring Corporation v Boston 

the issues of 1 whether it has 

articles of incorporation or asso

trade association one of whose p

bargaining and 2 whether it lik

agreements otherwise subject to s
a collective bargaining agreement In i

for the first time adopted the concept 

cable to both collective bargaining agre

setting forth the articles of incorporat

maritime multi employer collective barga

criteria were met In discussing the ap

to the matters then before it the Comm

rence with suggestions from parties that 

proceeding be considered in order to ex

of agreements from some or all of the re

the Shipping Act 1916 thereby not jeop

by any threat of a pre approval impleme

expected that this rulemaking proceeding 

fiscal year 1976

Agreements

Among the most significant and far 

domestic offshore trades in fiscal year 

from the establishment and operation of 

Shipping Authority PRMSA PRMSA was c

legislative assembly of the Commonwealth 

PRMSA sbasic goals are fourfold 1 to 

introduce larger and more efficient equi

duplication of costs and facilities 3 

for a modernization program and 4 prov

is responsive to the needs of the commu
52

Thus in the course of 

Sea Service Inc Sea

Trailer Transport Inc the 

carriers in the United State

trade The creation of PRMS

which affected the Puerto Ri

Initially PRMSA did no

itself and instead entered in

Puerto Rico Marine Manageme

of SeaLand Service Inc to 

retained another whollyowned 

Puerto Rico Marine Operating 

and facilities

While the above Manageme

filed for Commission action 

the staff on an informal bas

matter of the above contract 

Docket No 74 44 to determ

subject to section 15 of the 

it should be approved disapp

also determine whether the co

it is but a part of an integr

Service Inc et al and PR

the Puerto Rican trade in such 

Commission sjurisdiction
Water Pollution Financial 

The Commission is charged with the 

provisions of Section 311 p1of the 

Act

Section 311 p1of the Act requi

vessels over 300 gross tons including 

size using any port or place in the U

waters of the United States including t

and maintain with the Federal Maritime 

financial responsibility to meet the lia

to which such vessels could be subjecte

hazardous substances discharged into or 

The financial responsibility requir

have been in effect since April 3 1971 

respect to hazardous substances will be

Environmental Protection Agency establis

and determines what quantities of those 

harmful discharge Although delays hav

Environmental Protection Agency it is 

hazardous substances will be issued an

during the next fiscal year

Level of Responsibility

The evidence of financial respons

of 100 per gross ton of a subject vess
54

is the lesser Such evidenc

maintained to indemnify the 

incurred in the removal of d

The Commission sregula

financial responsibility req

the certification of vessels 

cial responsibility requirem

the owners or operators of s

evidence of financial respo

required by the Commission fo

as the basis for denial rev

Certificates

Enforcement Provisions

The Federal Water Pollut

enacted on October 18 1972 

with the financial responsib

fine not to exceed 10000 an

from or be detained in United 

visions are administered by t

United States Customs Service 

Maritime Commission

Coordination of Enforcement P

The enforcement authority 

responsibility requirements in
Coast Guard and the United States Custom

is necessary for the Commission to coor

with these two agencies to assure that 

leaving United States waters are in com

responsibility requirements

Enforcement under Section 311 pp

exceed 10000 denial of vessel entry 

Coast Guard and refusal of clearance t

Service Over the past few years the t

coordinated the enforcement program an

upon these procedures to assure that no 

unduly detained or delayed

Hazardous Substances

The Federal Water Pollution Contro

provide for the addition of hazardous s

lutants for which vessel owners and ope

responsibility The addition of hazard

effective however until the Environme

regulations designating hazardous subst

Because of the addition of hazardo

previously certified as having evidence

removal of oil must be recertified evid

financial responsibility requirements f

well as oil The Commission has issued 
56

this change This new Gene

replace General Order 27 in 

Protection Agency slist of 

and is intended to provide f

hazardous substance requirem

certified vessels

Insurers Examined

Generally vessel owner

responsibility by submission 

is written not only by Ameri

throughout the world

The Commission must ana

capabilities of the insurer 

executed by such insurer D

approved four independent for

for three additional foreign 

fiscal year

Certificates Issued

During fiscal year 1975 

vessels certificates were is

covering 2161 vessels were r

applications covering 90 vess
At the close of the fiscal year 2

6

valid certificates and applications inv

vessels were pending processing

The workload does not diminish once 

fact it increases due to changes of ins

operators substitution of one type of 

sibility by another annual submission 

insurers transfer of ownership charte

similar situations which necessitate da

servicing of records together with the 

reissuance of numerous certificates

Automatic Data Processing

An automated record retention syste

of vessels is operational This system 

lists of vessels vessel particulars ie 

registration number owners and operat

covering each vessel This system is a 

with respect to the enforcement procedu

Recently when a previously approve

acceptable to the Commission the vesse

immediately identified by the automatic 

coverage obtained from other underwrite

information is constantly updated and v

developed to provide extensive analytica

regulatory needs
58

Participation in Interagenc

The Commission staff 

working groups Most rece

a Government wide group stu

laws At the end of the fi

activity a proposed Compr

Compensation Act was prepar

Ocean 

Licensing

Since the enactment of 

fines have been licensed a

being fit willing and ab

functions in the public int

At the end of fiscal y

independent ocean freight f

applications were received 

applications over fiscal ye

Denials and Revocations

During fiscal year 197

licenses for various reasons 

withdrawn
Four cases involving possible de

or revocation of existing freight forwa

docketed for investigation and hearing

Licensing Process Expedited

During fiscal year 1975 a major re

processing procedures of new applicatio

forwarder licenses The Office of Fre

the primary responsibility for the deve

necessary to determine if an applicant 

properly to perform ocean freight forw

plished through telephonic interviews 

the staff This method rather than f

resulted in the more expeditious gathe

to process the applications In some 

and investigation of records are requi

is conducted by the appropriate Commis

all applicants were subject to field in

Examination of Possible Forwarder Ship

There is a continuing examination 

forwarders to determine whether they m

control relationships with export ship

of substantive Commission regulations 

Action is taken to resolve such problem

compliance or when necessary full sc
60

actions The most serious 

where a freight forwarder m

shipper or consignee located 

Automatic Data Processing S

An automatic data proce

independent ocean freight fo

compilation identifies the n

and branch offices of all c

is updated and reissued app

bution to Commission Field O

forwarder information on a c

tool in carrying out the Cos

Rulemaking Proceedings

The Commission srules 

freight forwarders are set f

continually reviewed analyz

Commission sregulations in 

abreast of the many technica

industry Proposed revision

a proposed rulemaking procee

Significant Proceedings

Among the freight forwa

during the fiscal year one o

Hugo Zanelli db a Hugo Zan
that the licensed forwarder was a purc

countries in violation of sections 1 a

the Commission sGeneral Order 4 Thi

in the United States Court of Appeals 

In Docket No 74 10 Freight Forw

Shipments at United States Ports Pos

Act 1916 and General Order 4 the Co

investigation into the bidding practice

General Services Administration forwar

hearings in this proceeding were held 

fiscal year

Passenger Vessel Ce

The Commission is charged with th

Sections 2 and 3 of Public Law 89 777 

and operators of passenger vessels hav

and embarking passengers at United Sta

establish their financial responsibili

death or injury to passengers and othe

United States ports and to indemnify p

nonperformance of voyages or cruises

Certificates Issued

Fiftyone applications for certifi

responsibility were received by the Co
62

year Fortysix applications 

applications for Certificates 

Indemnification of Passengers 

and 14 new applications for C

to Meet Liability for Death or 

nineteen applications for ame

reflecting changes in ownersh

changes and revision of corpo

Certificates Revoked

Twenty to certificates w

from service sold or laid up 

The downturn in the economy an

operations were severely felt 

Significant Cases

The public benefit from t

of Public Law 89 777 was again 

scheduled sailings of the QUEE

Greek Line had submitted a gu

responsibility to indemnify p

to refund passage money paid b

canceled cruises

In early July 1975 a som

guarantor of Incres Line when 

VICTORIA its cruise program w
On February 14 1975 the Commiss

the United States District Court Sout

against Wall Street Cruises which was 

advertising arranging and offering pas

to be renamed the CONSTITUTION when th

Certificate Performance from the Com

Wall Street Cruises was also required 

court as interim security to cover any 

a consequence of its unauthorized adve

Wall Street Cruises subsequently 

Performance but canceled its plans fo

Monies collected from prospective pass

performance bond required by the Comm

Passenger Conference and Carrier Agreem

The Commission approved seven pas

carrier agreements during the 1975 fisc

fications to conference agreements som

activities between the International P

the Trans Pacific Passenger Conference 

fiscal year the Commission had pending 

filed by 27 passenger lines which per

as the Cruise Lines International Asso
64

Field 

A field office is strate

geographical areas New York 

Orleans for the Gulf District 

District The Commission also 

Puerto Rico These offices re

geographical areas and provide 

and headquarters in Washingto

advice counsel and access to 

interested persons handle co

and investigate violations of 

terminal operators forwarde

New Program Areas

New and initial tariffs 

with the Commission 30 days in 

the statutes provide that the 

an earlier effective date T

of applications from carriers 

initial tariffs or increased 

program was initiated to mon

particular reference to shipm

applications
Similar emphasis has been placed o

A selected review of agreements and agr

initiated to determine whether carrier 

prior to approval

Cargo surveillance was continued t

import and export containerized and bre

misdescriptions misdeclarations or oth

shippers and consignees

New Field Investigations

A principal function of the field 

possible violations of section 15 16 

Act 1916 section 2 of the Intercoasta

rules and regulations promulgated by th

gations initiated totaled 697 of which 

agreement violations by carriers 186 w

unlawful rebates misdescriptions mi

misweighing etc by carriers shippe

forwarder matters

At the beginning of the fiscal ye

completion of investigation With the 

filed offices had a total of 137 case

were completed in 600 cases leaving 537 
66

Fines and Penalty Settlemen

Fines and penalties to

shipping statutes were impo

lines nonvessel operators 

consignees More than half 

Commission sauthority unde

Collection Act of 1966 The 

penalty settlements negotiat

court imposed fines The p

unlawful activities such as 

published and on file with 

different from those filed w

unapproved understandings o

Shipper consignee pena

of freight charges and unde

order to pay lower freight 

Freight forwarders were 

operations without a licens

and allowing another firm to 

Cargo Loss and Damage

The Commission publishe

effective August 5 1974 re

quarterly reports of cargo l
July 31 1974 the Commission postponed 

petitions for reconsideration of the rul

It was intended that the rules woul

serving U S foreign trades after exper

domestic offshore trades Ultimately t

vessel operating and nonvessel operating 

Executive Order 11836 dated January 

Department of Transportation to coordina

departments and agencies relating to the 

and to collect and analyze cargo loss da

portation The Executive Order recommen

Maritime Commission the Interstate Comm

Civil Aeronautics Board continue to coop

Transportation by developing cargo theft 

obtaining cargo loss data from carriers 

Commerce Commission and the Civil Aerona

furnishing to the Department of Transpo

data obtained from motor rail and air c

ocean carriers would complete the coverag

transportation

Large numbers of steamship lines hav

reconsideration on jurisdictional and oth

is presently considering these petitions
68

The Commission contin

Agency Committee on Trans

that Committee and the tra

Transportation Security C

Shippers 

General Order 14 requ

of shippers requests and 

disposition made of each 

and acted upon 7920 reque

percent were granted in wh

activity indicates the ext

shipper requests In the 

before the Commission infor

their disputes through the 

Inf

The Commission exercis

the handling of complaints 

process is to negotiate wit

satisfactory solution to d

At the beginning of fis

During the year 563 new com

leaving 236 pending on June 
SPECIAL STUDIES AND P

Automation of Records of Section 15 Agre

The Commission has included Section 

transshipment agreement records in its a

system From this program detailed agr

developed in a short period of time Th

in prompt analysis with respect to appro

It is anticipated that from this system 

Approved Conference Rate and Interconfer

Foreign Commerce of the United States w

quarter of fiscal year 1976 This publi

industry shippers other governmental a

adding three new categories of agreement

joint service and major cooperative wor

be of additional assistance to the indu

Currency Devaluation Provisions Under Du

Since 1971 the substantial and ofte

the value of the dollar in relation to f

carriers operating in the foreign commer

sustain significant revenue losses due to 

the Shipping Act 1916 for effecting ra

especially true with respect to those ca
70

dual rate contract systems 

most contracts provide for 

governmental devaluation o

ruled earlier that this did 

market fluctuations

In light of this rulin

the dollar is now subject t

Commission instituted a rul

Order 19 to establish a me

dual rate contracts could i

fifteen days in the event 

tariff currency in relation 

expenses are incurred Dock

and increasing such surchar

event of appreciation of ta

beneficial to shippers Am

this rule appeared in the F

effective date 30 days afte

SelfPolicing Activities

Studies were conducted 

by conferences and rate agr

United States for calendar 

the self policing reports f

agreements with the Commis
policing actions taken during the preced

no self policing actions were taken a n

to be filed by the respective conference

conducted on self policing activities in 

Pacific trades particularly as it conce

West Coast Japan trades inbound and outb

positive and showed considerable policing 

trades rumors of malpractices particula

the reports indicated some second and th

carriers

The studies revealed that most self 

the Commission were negative This is an 

is free of malpractices or b there is 

previous studies revealed that the vast m

rate agreements have filed only negative 

policing reports were required to be file

brings into question the adequacy of se

and rate agreements and supports the Cos

rulemaking proceeding Docket No 73 64 

to require more extensive self policing 

comprehensive reporting

Standard Cost Accounting

The Commission continued its joint 

Administration to develop a standard cos
72

U S steamship industry 

development of industry wide 

and 2 the development of 

to obtain cost data and op

records perform calculatio

phase was completed in the 

successfully designed and p

Commission will move forwar

recurring input of carrier 

fiscal year When the syste

carriers will have a mechan

accurately determine applic

classes of cargo along the 

used by the Commission in t

Since the allocation o

CIRS is predicated upon a t

undertaken to develop comp

which will be disseminated 

The project is intended to 

distance relationships than 

the expanded use of the po

cost in the industry

Information Systems

The Commission has bee

and operation of the Comms
System MARIS The system is composed o

subsystems through which data generated w

encoded for automatic processing and retr

on tariffs agreements vessel certificatio

These records are processed through 

current vessel and commodity movement data 

of up todate information that hitherto ha

source including the types itineraries 

in the U S foreign commerce and the vo

vessel type and carrier between any comb

ports The system screens cargo movements 

provide a more accurate determination of 

movements and to insure compliance with s

filings for common carriage of ocean freig

The vessel certification tariffs an

in operation at the outset of the fiscal 

freight forwarder and vessel and commodity 

In addition a general inquiry subsystem 

flexible access to the data base and perm

processing of multiple inquiries

Although further refinements are con

subsystems MARIS was virtually fully ope

fiscal 1975
74

ThirdFlag Study

The Commission staff 

traffic statistics in the 

penetration of the USSR m

analysis was directed tow

and other thirdflag carr

In addition staff studies 

policies were conducted a

including a comprehensive 

the 1976 fiscal year

Military Rates

The staff continued 

commercial carriers to the 

competitive bidding system 

selected for detailed cos

to Korea Hong Kong Taiw

the United Kingdom Contin

Generally it was found th

reasonable and no furthe

Claims

A special study was p

claims in dispute which m

hearing As a result the 
threshold for referral of cases to Settlem

to 5000 This action will relieve the 

Law Judges and avail shippers and carrier

for settling claims

Financial Reporting

A rule requiring the reporting of fin

Vessel Operating Common Carriers in the D

was published in final form on June 19 1

July 21 1975 This represents the culm

program to develop a practicable financia

NVOCC sthat will serve as a basis for th

filings

Puerto Rico Study

A Puerto Rico Ocean Transportation S

addressed itself to the possible ramifica

the Puerto Rican Marine Shipping Authorit

Mainland Puerto Rico services of the thre

serving a major portion of the trade Th

past and present traffic movements and a 

for common carrier services in the trade

Field Auditing

During the fiscal year a reorganiza

centralized the field audit functions of 
76

of Financial Analysis at 

to provide improved coord

activities and more effic

An effective audit and re

credibility of financial 

the various Commission G

changes in the domestic o

Commodity Studies

The staff performed 

levels including studies 

and Gulf to the Far East 

extended free time on OCP 
PROCEEDINGS BEFORE ADMINIST

Administrative Law Judges preside a

of a complaint or institution of a procee

motion

Administrative Law Judges have the a

and affirmations issue subpoenas rule u

relevant evidence take or cause depositi

ends of justice would be served thereby 

hearing hold conferences for the settlem

issues by consent of the parties dispose 

Similar matters make decisions or recomm

other action authorized by agency rule co

Procedure Act

At the beginning of fiscal year 197

before administrative Lac Judges During 

added which included 6 cases reopened an

Law Judges for further proceedings The 

conferences conducted hearings in 28 ca

decisions in formal proceedings and 6 in

docket applications

Cases otherwise disposed of involved 

special docket application
78

In proceedings not yet decid

Judges issued the following 

Docket No 67 57 Sig

in the Domestic Offshore Tr

Rules were promulgated which 

information and costing tec

the costs of carrying a par

Docket No 7366 Aus

Austasia Intermodal Line L

and General Order 13 Resp

carrier which received carg

portation by truck to Winds

British Columbia and thence 

in Australia was found not 

it was enacted to regulate c

at United States ports

Docket No 7372 Agre

Access Cargo Agreement The 

government controlled cargoe

found to result in benefits 

approval
Docket No 7373 Port of Houston 

Steamship Co Inc et al Respondent 

accepting delivery at the point of unloa

the ship berthing space in other instan

or paying cotton heading charges at th

Christi in violation of the Shipping Ac

Docket No 745 Agreement No 100

Arrangement The provision in an agreem

to the agreement equal access to cargo w

reserved by their respective governments 

national flag lines was found not to be 

jurisdiction under section 15 of the Shi

The provision in an agreement which 

working arrangement between the parties 

Shipping Act and approved

Docket No 7431 Independent Ocea

Lesco Packing Co Inc Application 

independent freight forwarder was denied 

found fit willing and able properly to 

forwarding

Judges also issued initial decis

7346 7378 74 2 74 9 74 17 7437 

Nos 462 463 and 465 described under 
80

At the close of fiscal 

of which 40 were investigatio

remaining proceedings were i

common carriers by water sh

districts terminal operato

Defense and instrumentalitie
FINAL DECISIONS OF T

In proceedings other than rulemaking 

arguments and issued 22 decisions two o

to the Office of Administrative Law Juds 

discontinued or dismissed without decisio

Office of Administrative Law Judges for 

The Commission also issued four dec

applications and fifteen decisions involv

against carriers in the amount of 1000 

Docket 70 53 Levatino Sons Inc 

Inc Respondent carrier was found not to 

complainant unjustly in regard to furnish

facilities for handling of fruit and pro

unlawful rebates or discriminated agains

settling claims brought by other shippers 

proceeding was remanded for further hear

unlawful shutouts of complainant scargo 

Docket 71 29 Baton Rouge Marine C

Imposition by grain terminal operator of 

dores including subsidiary of terminal o

in unlawful preference or privilege As

upon stevedores for grain loading activit

ably related to economical and commercia

stevedores The proceeding was remanded 

achieving proper allocation formula for 

and for establishing a proper charge
82

Docket 7154 Pacific 

Dual Rate Contract System to 

respondent to extend its dua

territory was found approvab

Act since it accomplished the 

protecting the Conference fro

Docket 71 85 Independ

Air Mar Shipping Inc Respo

applicant was found fit wil

business of forwarding and a 

without a license in violatio

Docket 71 93 Viking Im

Possible Violations of sec

The record did not sustain a 

warder acting as customhouse 

violated the Act by obtaining 

property by water at less tha

Docket 72 30 Commodity 

Steamship Co Inc et al W

on relief shipments to Lebane

16 and 17 of the Shipping A

such as risk and port conges

Docket 72 39 Ocean Fr

Steamship Co In a report on 

claim against a carrier for o

depend on tariff provision re
of any bill of lading reflecting only trade 

rule is discretionary Reparation granted 

showed the nature of the commodity shipped

Docket 7248 Pacific Maritime Assoc

Arrangements International Longshoremen s

Pacific Maritime Association nonmember par

subject to Commission jurisdiction under s

1916 because it conrols competition and wa

exemption from the antitrust and shipping 

upon entities outside the bargaining group

Docket 7261 In the Matter of Agree

Philadelphia Port Corp and Delaware River 

Inc Lavino Shipping Company Agreements 

full container ship handling facilities wi

were found subject to section 15 of the Ac

prior to approval to be so anticompetitive 

commerce in violation of section 15 unjus

of section 16 and to establish unreasonab

section 17 and were disapproved subject to 

portion of the premises to other tenants

Docket 73 24 Agreement No T2635 2 

Final Pay Guarantee Plan An agreement pr

of PMA members to fund union pay guarantee 

for reduced work opportunities caused by t
84

approvable and not to have 

able disadvantage within the 

The decision was later affirm

Remand of proceeding from Co

Docket 73 36 Abbott L

Shipper sclaim for overcharg

claimant did not satisfy burd

to nature of cargo shipped

Docket 7344 Kraft Foo

by shipper for overcharge by 

alleged error in weight or m

requiring such claims to be p

custody of carrier was found 

conditions of tariff rule hav

Docket 7346 Pacific I

Rate Increases Between Pacifi

Respondent was found to have 

sustained burden of proof tha

within the meaning of section 

Docket 7350 Campbell 

Claim for reparation based on 

violation of section 18a of 

as the allegation that the sh
would require violation of State law regar

was determined to be unfounded

Docket 7374 Modification of Article 

Association of West Coast Steamship Compa

designed to determine whether unanimity vo

conference should be modified evidence wa

decision The proceeding was referred to 

development of record and initial decision

Docket 7378 Delaware River Port Au

Trailer Transport Inc Mere solicitation 

ocean carrier of Philadelphia area cargo f

Baltimore and New York was found not in vio

1916 or Merchant Marine act of 1920

Docket 74 2 Merck Sharp Dohme IA 

Grancolombiana SA Claim by shipper fo

was denied where shipper failed to meet bu

shipped was other than that for which it w

Docket 74 6 Hugo Zanelli d ba Hugo 

licensed independent ocean freight forwar

a purchaser and seller of certain shipment

consignees and to have obtained a benefici

in violation of sections 1 and 44 of the S

ordered to cease and desist such activitie
86

Docket 74 9 Consolidat

Line In proceeding alleging 

Shipping Act settlement agre

evidence sufficient to show c

approved

Docket 74 37 AMF Incor

by shipper against carrier fo

freight was denied inasmuch a

to be applied was limited to 

include port in question

Docket 7438 Upjohn Co

shipper against carrier for r

freight based on alleged amb

carrier erroneously rated car

tariff ambiguity and carrier 

Docket 7452 McDonnell 

Atlantic Steamship Company 

reparation on alleged overcha

carrier did not challenge me

basis of tariff rule requiring 

sixmonth rule is no bar to b

statutory limitation period
RULEMARING

The following rulemaking proceedings 

1975 are still in progress

Docket 7243 Criteria for Establis

Not Detrimental to Commerce of United State

Shipping Act 1916 Reopened upon remand 

Appeals for the District of Columbia Circ

Docket 756 Policy and Procedures 

The following rules were published during 

rulemaking proceedings

General Order 32 Quarterly Report

Claims Docket 7174 Effective date stay

General Order 33 Regulation to Ad

able to Shipping in the Foreign Trade of t

Effective date stayed pending reconsidera

General Order 11 Amendment 2 Fin

Carriers by Water in the Domestic Offshore 

General Order 16 Amendment 12 Ru

Miscellaneous Amendments Docket 7411

General Order 16 Amendment 11 Ru

Enlargement of Time for Commission Action 

Changes Docket 7413
88

General Order 22 A

ments and Procedures Do

General Order 16 A

Informal Procedures for Ad

General Order 34 

in Pacific Slope States 

The following rulem

of Administrative Law Judg

Docket 734 Non V

hold Goods B1cem tion From 

Four rulemaking pro

of final rules
ACTION IN THE COUR

There were pending before various US 

beginning of fiscal year 1975 14 petitions 

Federal Maritime Commission including the 

decision dealing with the enforcement of th

authority During the year 13 more petition

Commission orders

At the close of the fiscal year on Jun

proceedings had either been completed or w

14 were pending briefing argument or decis

certiorari to review Circuit Court decision

orders were denied by the Supreme Court du

An injunction proceeding was also brou

obtain compliance by a cruise ship operator 

ity requirements under the shipping statute

in three criminal actions instituted by the 

participated as amicus and filed briefs in 

Court decisions involving actions brought b

Significant Cases

Among the more important cases handled 

following

Delaware River Port Authority v Transamer

has proceeded in the court in two stages 
90

501 F2d 917 3d Cir 1974 r

tion entered by a Pennsylvania 

solicitation of Philadelphia a

and Baltimore based vessels un

upon the validity of the pract

Act 1916 The Commission par

of the carrier The Third Cir

alleged a novel cause of action 

solicitation unaccompanied by 

expenses or other commonly rec

could be no substantial likelih

merits of their complaint T

Delaware River Port Authority 

No 751341 is still pending 

District of Columbia where th

administrative decision denyin

complaint as a matter of law

State of Texas et al v Sea

ED Tex concerned an actio

of some of its ports in the US 

from operating under certain in

Gulf and Europe via Charleston 

FMC hearing on the legality of 

Shipping Act This intermodal 
and competes with allwater service from 

opposed unjunctive relief as an amicus cu

bridge cargo diversion was a case of adm

The District Court s order was appealed to 

was issued The Commission submitted an a

and the matter is awaiting decision

Commonwealth of Pennsylvania et al v Fe

Civil No CA750363 D01975 was an 

injunction against intermodal railwater s

the US East CoastFar East trade based u

failure to prepare an environmental impac

Far East minibridge tariffs for filing in 

final agency regulations implementing the 

Act of 1969 The Court denied relief on s

findings that the mandatory provisions of 

over the Environmental Policy Act in this 

mere filing of a tariff has no significant 

environment The Court also found failure 

remedies lack of primary jurisdiction an

Cargill Inc v Federal Maritime Commiss

Marine Contractors Inc v Federal Maritim

Cir Nos 75 1018 and 75 1108 are consol

the Commission sdecision in its Docket N
92

Contractors Inc v Carg

The issues before the Cour

impose charges against a st

ment between the terminal a

tion by the terminal of a w

the propriety of certain sp

against stevedores The ca

the Circuit Court for the D

Pacific Maritime Associatio

and International Longshors

Maritime Commission et a

consolidated proceedings ch

Docket No 7248 Pacific M

Arrangements Possible Viol

Act 1916 served January 3

to its jurisdiction under S

of a collective bargaining 

of PMA must adhere to certa

agreement before they can e

force Briefs are now being 

be scheduled for argument b

Columbia
Federal Maritime Commission v Port of S

Finding the Commission to be without juri

consolidation services performed by the P

ocean shipments the District Court for t

denied the Commission sapplication for f

discovery orders The District Court s o

the Court of Appeals for the Ninth Circu

briefed argued and is now waiting decis

Federal Maritime Commission v Wall Stree

No 722SDNYinvolved a Commission 

to enjoin Wall Street Cruises from adver

tickets until the financial responsibilit

was properly certified by the Commission 

provisions of Public Law 89777 In a co

Court Wall Street Cruises agreed to disc

had obtained proper Commission certifica

Non Adjudicatory Matters

During the past fiscal year the Co

under the settlement and compromise auth

Settlement Act of 1966 and Public Law 92

alleged violations of Sections 15 16 18 

1916 and Section 2 of the Intercoastal S

the most common of the alleged offenses i

tariff filing provisions under the shippi

the Commission senforcement claims progr

over 100 00in fiscal 1975
94

LEGISL

Repeal of Section 6 of the In

On October 26 1974 Pres

amended the Intercoastal Ship

and by amending Section 5 to 

are applicable to the carriag

United States state or munic

Section 6 of the Act or

interstate steamship carriers 

statutory anachronism for thos

since 1938 The favored parti

Department of Defense had b

in the words of Chairman Bent

Subcommittee on Merchant Marin

Committee on July 10 1974 th

its commercial users are bein

Chairman Bentley stressed that 

able shippers should betreated 

Appearing before the Sena

Merchant Marine on August 9 1

Commission ssupport for Secti

conflicts with the free ente

the American merchant marine 
Sealift Command cargoes enjoying up to a 

commercial shipping rates all to the ult

American consumer

Transporting Merchandise by Barge at Por

In the past Congress and the Commis

legislation which would eliminate unnece

of Interstate Commerce Commission and Fe

regulation at the Port of Sacramento T

enacted as PL 93 605 conferred on the 

jurisdiction over the transportation of 

cargo moving by barge provided by the Po

service between that port and San Franci

Intermodal Transportation Legislation

The Commission has over the last se

proposed legislation which would provide 

factor rates under a through bill of lad

property in the foreign and domestic offs

States

In the 92nd Congress extensive hear

both in Washington and San Francisco pr

many segments of the maritime industry a

regarding this vital issue Many objecti
96

consultation between the Com

Fisheries staff Two new int

HR 12428 and HR 12429 

Appearing before the full Hou

on August 13 1974 Chairman 

intermodal legislation the 

deters the small and middlesi

in the new technological adva

shipping concept developed b

the Chairman stated In loca

Federal Maritime Commission 

expertise in foreign trading 

single expert regulatory forum 

the public interest but also 

our trade in overseas marke

The August 1974 hearing

witnesses while private indu

The Committee having na

to two has before it in the 

and HR 1080 These two mea

HR 12429 and it is hoped by 

occur this session of the Co
Minimum Rate Provisions for Non National 

S 2576 the bill to provide for min

third flag carriers received close s

second session of the 93rd Congress

Chairman Bentley appearing before t

Subcommittee on Merchant Marine on Novem

convinced that the Congress must enact le

flag vessels will be able to fairly comp

the foreign commerce of the United State

S 2576 which would require the Co

national flag carriers compensatory p

for proposed changes and Chairman Bentley 

itself wanted to amend certain portions 

of certain non national flag carriers in 

rates 10 to 407 below conference levels 

Congressional action imperative

S 2576 was reintroduced into the 9

were concluded in April 1975 when priva

opponents of the measure expressed their 

coming forth was labor management commit

statement of unanimous support for S 86

period of stability in world trade
98

Proposed Studies of Regulatory 

During the last session of 

possible reform of the regulato

duced but two Senate Joint 

examination in hearings

On November 20 1974 Chai

on Surface Transportation of th

to SJR 253 This proposal would 

sweeping powers for a three yea

opposition was not for the rea

in some detail the impact of ind

rather I feel that the complex

would be unjustified in light o

Bentley pointed out that the FM

than five times in the last twfi

of any part of the Commission s

decline of the American merchan

competition

Qualified support was late

No action was taken by the Cong

In the 94th Congress sever

the same study and possible ref

with representatives of the var

examination and reform of their 
Independent Ocean Freight Forwarders

On March 24 1975 Commissioner Hearn 

on Commodities and Services of the House S

and testified concerning the Commission sr

the independent ocean freight forwarder and 

small business exporter It was pointed ou

the number of small businesses operating as 

substantial and that the Commission in re

involved in this field has not imposed ex

requirements A thorough interchange on t

freight forwarders in the US took place 

that the Commission has not discovered any 

forwarders have engaged in rate cutting il

improper practices however continued vigi

investigative staff was assured in this en

Freedom of Information Act Amendments

The Freedom of Information Act Amendm

new access procedures for citizens seeking 

agencies were made applicable to the Fede

In compliance with the Section 3 of th

first report to the Speaker of the House an

before the prescribed date of March 1 197
100

Privacy Act of 1974

The Privacy Act of 197

upon the Federal Maritime C

agency are allowed access t

thereby insuring that infors

Rules and regulations 

required by the Act s Septem

Legislation Studied

During fiscal year 197

that had been introduced in 

ment and Budget and other de

proposals submitted for com
the President

ADMINISTRATIO

During fiscal year 1975 Helen Delich 

as Chairman Other members were Ashton C 

James V Day of Maine George H Hearn of 

of California Commissioner Day continued 

On June 13 1975 Chairman Bentley ad

she would not seek reappointment to the Co

of her term on June 30 1975 but would se

appointed if the President so wished

On June 3 1975 Commissioner Hearn s
102

Statement of Appropriation 

Ended 

APPROPRIATION

Public Law 93 433 93rd Congres

necessary expenses of the Fed

services as authorized by 5 USC 

vehicles and uniforms or allow

5 USC 59015902 Provided 

be available for official rece

expenses 

Public Law 94 32 94th Congress 

Supplemental Appropriations A

cost 

Appropriation availability 

OBLIGATIONS AND UNOBLIGATED BALANC

Net obligations for salaries and 

ended June 30 1975 

Unobligated balance withdraw

STATEMENT OF RECEIPTS DEPOSITED W

TREASURY FOR THE FISCAL YEAR ENDE

Publications and reproductions 

Water pollution application and 

Fines and penalties 

Miscellaneous 

Total general fund receipts 
APPENDIX A

Statistical Abstract of 

Fiscal Year 1975

Section 15 Agreements

Foreign commerce

Domestic offshore 

Terminal 

Section 14b Dual Rate Contracts

New systems includes modifications 

Reports Review

Shippers requests and complaints 

Minutes of meetings 

Selfpolicing of conference and rate 

Pooling statements 

Operating reports 

Approved Agreements on File as of June 30 

Conference 

Rate 

Joint conference 

Pooling 

Joint service 

Sailing 

Transshipment 

Cooperative working agency and conta

Domestic offshore 

Terminals 

Dual rate contract systems 

Nonexclusive transshipment agreements 

Tariffs

Tariff pages filed

Foreign 

Domestic offshore 

Terminal 

Tariffs on file as of June 30 1975

Foreign 

Domestic offshore 

Terminal 
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