Federal Maritime Commission

 

FEDERAL MARITIME COMMISSION
 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 

+ 

BUDGET ESTIMATES 

Fiscal Year 2012 

SUBMITTED TO THE APPROPRIATIONS COMMITTEES 

(Subcommittees on Transportation, Housing and Urban Development, 

and Related Agencies) 

FEBRUARY 14, 2011 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

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

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

Justification Materials: 

Core Functions and Organization ........................................................ 4
 

Organization Chart .............................................................................. 5
 

Fiscal Year 2012 Policy and Funding Priorities .................................. 6
 

Highlights and Planned Activities Statements..................................... 8
 

FMC Mission ..................................................................................... 20
 

FTE and Positions by Program .......................................................... 21
 

Obligations by Object Class............................................................... 22
 

Average Salary and Grade ................................................................. 23
 

Request by Strategic Goal and Program............................................ 24
 

Summary of Changes......................................................................... 25
 

Appropriation Language .................................................................... 26
 

Fiscal Year 2012 Budget Request by Strategic Goal......................... 27
 

Fiscal Year 2012 Budget Request by Program/FTE Request by
 

Program........................................................................................... 28
 

Relationship of Obligations to Outlays.............................................. 29
 

Budget Justifications: 

Formal Proceedings Program............................................................. 30
 

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

Office of the Commissioners ........................................................ 32
 

Office of the Secretary.................................................................. 34
 

Library...................................................................................... 37
 

Office of Consumer Affairs and Dispute Resolution Services..... 38
 

Office of the General Counsel ...................................................... 41
 

Designated Agency Ethics Official.......................................... 49
 

Office of Administrative Law Judges........................................... 50
 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Equal Employment Opportunity Program .............................................. 52
 

Inspector General Program ..................................................................... 54
 

Operational and Administrative Program............................................... 57
 

Office of the Managing Director ............................................... 58
 

Area Representatives ................................................................. 60
 

Bureau of Trade Analysis .......................................................... 63
 

o Office of the Director ......................................................... 64
 

o Office of Service Contracts and Tariffs ............................. 65
 

o Office of Economics and Competition Analysis................ 66
 

o Office of Agreements ......................................................... 68
 

Bureau of Certification and Licensing....................................... 71
 

o Office of the Director ......................................................... 72
 

o Office of Passenger Vessels and Information Processing.. 72
 

o Office of Transportation Intermediaries............................. 75
 

Bureau of Enforcement.............................................................. 78
 

Office of Information Technology............................................. 82
 

Office of Human Resources....................................................... 84
 

Office of Budget and Finance.................................................... 87
 

Office of Management Services ................................................ 89
 

Fiscal Year 2012 Strategic Goals............................................................ 91
 

Factors Affecting the Achievement of Goals ............................... 91
 

Strategic Goal Number 1 .............................................................. 92
 

Strategic Goal Number 2 .............................................................. 97
 

Appendix A – Workload Statistics ....................................................... 105
 

Appendix B – Inspector General Budget Certification......................... 112
 

Appendix C – Employee Satisfaction and Wellness ............................ 114
 

Appendix C – DCCI (Data Center Consolidation Initiative) ............... 118
 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Alphabetical Listing of Abbreviations 

-#­

1920 Act Section 19 of the Merchant Marine Act, 1920 

1978 Act Inspector General Act of 1978 

1984 Act Shipping Act of 1984 

-AACE/ITDS Automated Commercial Environment/International Trade Data System 

ADR Alternative Dispute Resolution 

AED Automatic External Defibrillator 

agency Federal Maritime Commission 

ALJ Administrative Law Judge 

AR Area Representative 

-BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BSC Building Security Committee 

BTA Bureau of Trade Analysis 

-CCADRS Consumer Affairs and Dispute Resolution Services 

CBP U.S. Bureau of Customs and Border Protection 

CCIG Council of Counsels to Inspectors General 

CFR Code of Federal Regulations 

CIGIE Council of Inspectors General on Integrity and Efficiency 

CIO Chief Information Officer 

COOP Continuity of Operations 

-DDHS Department of Homeland Security 

-EECM Enterprise Content management 

EEO Equal Employment Opportunity 

EEOC Equal Employment Opportunity Commission 

eOPF Electronic Official Personnel Folder 

EU European Union 

EVS Employee Viewpoint Survey 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

-FFAEC Federal Audit Executive Council 

FISMA Federal Information Security Management Act of 2002 

FMC Federal Maritime Commission 

FOIA Freedom of Information Act 

FPS Federal Protective Service 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full-time Equivalent 

FY Fiscal Year 

-GGSA Government Services Administration 

-HHQ Headquarters (FMC) 

HR Human Resources 

HSPD-12 Homeland Security Presidential Directive 12 

-IIAG Interagency Agreement 

ID Initial Decision 

IG Inspector General 

IT Information Technology 

-MMD-715 Management Directive 715 

MD&A Management’s Discussion and Analysis 

MTO Marine Terminal Operator 

-NNFC National Finance Center 

No Fear Act Notification and Federal Employee Antidiscrimination and Retaliation 

Act of 2002 

NOI Notice of Inquiry 

NPRM Notice of Proposed Rulemaking 

NRA Negotiated Rate Agreement 

NRDC National Resources Defense Council, Inc. 

NSA NVOCC Service Arrangement 

NVOCC Non-Vessel-Operating Common Carrier 

-OOAGR Office of Agreements 

OALJ Office of Administrative Law Judges 

OBF Office of Budget and Finance 

OCADRS Office of Consumer Affairs and Dispute Resolution Services 

OECA Office of Economics & Competition Analysis 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 2 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

OEP Occupant Emergency Plan 

OGC Office of General Counsel 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMD Office of the Managing Director 

OMS Office of Management Services 

OPM Office of Personnel Management 

OS Office of the Secretary 

OSCT Office of Service Contracts & Tariffs 

OSRA Ocean Shipping Reform Act of 1998 

OTI Ocean Transportation Intermediary 

-PPAR Performance and Accountability Report 

PIO Performance Improvement Officer 

P.L. Public Law 

PVO Passenger Vessel Operator 

-QQI Qualifying Individual 

-RReform Act Inspector General Reform Act of 2008 

RPI Regulated Persons Index 

-SSAC Small Agency Council 

SERVCON Service Contract Filing System 

Shipping Act Shipping Act of 1984 

SWAT Rapid Response 

-TTeam Ocean Team Ocean Services, Inc. 

Tober Tober Group, Inc. 

-UUPR Unearned Passenger Revenue 

U.S. United States of America 

U.S.C. United States Code 

-VVOCC Vessel-Operating Common Carrier 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 3 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

FMC Core Functions
 

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

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

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

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

89-777 (passenger vessel certification). The Commission: monitors the activities of ocean 

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

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

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

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

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

violations of the prohibited acts set forth in section 10 of the 1984 Act; monitors the laws and 

practices of foreign governments which could have a discriminatory or otherwise adverse impact 

on shipping conditions in U.S. trades, and imposes remedial action, as appropriate, pursuant to 

section 19 of the 1920 Act or FSPA; enforces special regulatory requirements applicable to 

carriers owned or controlled by foreign governments; processes and reviews agreements, service 

contracts, and service arrangements pursuant to the 1984 Act for compliance with statutory 

requirements; and reviews common carriers’ privately published tariff systems for accessibility 

and accuracy, as required by OSRA. The Commission also issues licenses to qualified ocean 

transportation intermediaries (OTIs) in the U.S., ensures that all OTIs are bonded or maintain 

other evidence of financial responsibility, and ensures that passenger vessel operators (PVOs) 

demonstrate adequate financial responsibility in case of nonperformance of voyages or injury to 

passengers. 

FMC Organization 

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

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

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

Chief Executive and Administrative Officer of the agency. The FMC’s organizational units 

consist of: Offices of the Commissioners; Office of the General Counsel (OGC); Office of the 

Secretary (OS); Office of Consumer Affairs and Dispute Resolution Services (CADRS); Office 

of Administrative Law Judges (OALJ); Office of Equal Employment Opportunity (EEO); Office 

of the Inspector General (OIG); Office of the Managing Director (OMD), including the Bureaus 

of Certification and Licensing (BCL), Enforcement (BOE), and Trade Analysis (BTA); the 

Offices of Budget and Finance (OBF), Human Resources (OHR), Information Technology 

(OIT), Management Services (OMS), and Area Representatives (ARs). The majority of FMC 

personnel are located in Washington, D.C., with ARs stationed in New York, New Orleans, Los 

Angeles, Seattle, Houston and South Florida. Chairman Lidinsky announced a reorganization of 

the FMC effective January 31, 2010. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 4 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

COMMISSIONER 

DYE 

2011 2012 

2 2 

COMMISSIONER 

BRENNAN 

2011 2012 

2 2 

COMMISSIONER 

(VACANT) 

2011 2012 

2 2 

CHAIRMAN 

LIDINSKY 

2011 2012 

3 3 

Office of the 

Inspector General 

2011 2012 

3 3 

Office of Equal 

Employment 

Opportunity 

2011 2012 

1 1 

Managing 

Director 

2011 2012 

9.25 9 

COMMISSIONER 

KHOURI 

2011 2012 

2 2 

Office of the 

General 

Counsel 

2011 2012 

11 11 

Office of the 

Secretary 

2011 2012 

7.6 7.6 

Office of 

Administrative 

Law Judges 

2011 2012 

3 3 

Office of 

Consumer 

Affairs and 

Dispute 

Resolution 

Services 

2011 2012 

7 9 

Office of 

Budget and 

Finance 

2011 2012 

5 5 

Office of 

Human 

Resources 

2011 2012 

5.4 5.4 

Office of 

Management 

Services 

2011 2012 

5.25 5 

Office of 

Information 

Technology 

2011 20 12 

8.50 9 

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

as of JANUARY 31, 2010 

(Includes FY 2011 and FY 2012 FTE levels) 

Bureau of 

Certification and 

Licensing 

2011 2012 

17 17 

Bureau of 

Enforcement 

2011 2012 

10 10 

Bureau of Trade 

Analysis 

2011 2012 

17 17 

Area Representatives 

Houston, TX 

Los Angeles, CA 

New Orleans, LA 

New York, NY 

Seattle, WA 

South Florida 

2011 2012 

9 9 

Administrative Direction 

Technical Direction 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 5 
 

 

 

 

 

 

 

Federal Maritime Commission 

Fiscal Year 2012 Policy and Funding Priorities
 

In fiscal year (FY) 2012, the Commission’s policy and funding priorities center on fostering a 

viable and vibrant liner shipping environment critical to the nation’s international trade and 

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

2010-2015 (revised August 2010), in both maintaining an efficient and competitive international 

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

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

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

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

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

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

transportation system not impede achievement of the President’s National Export Initiative. 

The agency strives to accomplish its goals as the shipping industry, along with the rest of the 

economy, continues rebounding from the most severe economic downturn in more than 60 years. 

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

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

conditions. In the coming fiscal years, the Commission will complete its study of the impact of 

the European Union’s (EU) removal of its block exemption of antitrust immunity for ocean 

carriers and continue responding to public requests for review of regulations on issues such as 

tariff publication and the scope of regulation of the business relationships of ocean transportation 

intermediaries (OTIs). Evolving business models requiring Commission attention in the coming 

years are likely to include the increased use of MTO discussion agreements and OTI freight 

networks, and their impact on the shipping public. The FMC will continue to place enhanced 

emphasis on outreach to the shipping public to emphasize industry practices that can improve the 

ocean transportation system. In protecting the public from financial and other harm, we will use 

an integrated approach, stressing industry compliance with licensing and other requirements, 

providing a variety of services to provide quick, fair resolution of disputes, and, where necessary, 

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

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

accessibility to Commission services and information will facilitate both public interaction with 

the agency and add greater efficiencies to internal business processes. These actions and more 

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

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

deceptive practices. 

The Commission proposes to undertake three important initiatives in 2012 to address matters 

identified through recent fact finding investigations into capacity and equipment constraints and 

household goods shipping issues, and building upon its efforts begun in 2010 and continuing into 

2011. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 6 
 

 

 

 

Federal Maritime Commission 

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

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

that are encountered by importers and exporters. To provide opportunity for timely resolution 

without encumbering commercial relationships with the time, expense and acrimony of litigation 

or enforcement activity, the Commission will provide a variety of alternative dispute resolution 

(ADR) services. At the same time, we will strengthen our enforcement activity to provide 

deterrence by penalizing those who pursue unlawful malpractices. Through the administrative 

process, the Commission will also continue to provide a forum for adjudication of Shipping Act 

violations and redress through reparations. Finally, we will focus on achieving compliance with 

OTI licensing requirements. 

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

of Commission services by utilizing improved technology. Our goal will be to continue 

implementing technological advances that will increase Commission productivity and provide 

for electronic submission of license applications, agreements and other filings. 

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

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

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

or other actions of those trading partners. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 7 
 

 

 

 

 

 

 

 

Federal Maritime Commission 

Highlights and Planned Activities Statements 

Key Accomplishments in Fiscal Year 2010 

The commercial ocean transportation system faced significant difficulties in fiscal year 2010, as 

it recovered from its worst recession in over 60 years. The Federal Maritime Commission’s 

mission is to foster a fair, efficient and reliable international ocean transportation system, and to 

protect the public from unfair and deceptive practices. Effective implementation of that mission 

was uniquely important this fiscal year due to challenging trade and operational conditions. 

Particularly hard hit were U.S. importers and exporters encountering difficulties shipping their 

cargo because of insufficient vessel capacity or lack of available shipping containers. In 

addition, shippers frequently faced substantial increases in transportation costs, often without 

sufficient advance warning. The highlighted actions provide an overview of agency activities in 

pursuit of its mission. Central to all of these actions was a January 2010 reorganization that was 

a vital first step in a revitalizing the FMC and redirecting its focus to address the changing 

industry. 

Strategic Goal 1 

Maintain an efficient and competitive international ocean transportation system 

The FMC is charged with ensuring competitive and efficient ocean transportation for the 

shipping public. Competition in U.S. trades helps to foster competitive rates and encourage 

diverse service offerings for the benefit of U.S. exporters and importers, and ultimately 

consumers. Ocean carriers and marine terminal operators are granted limited antitrust immunity 

by the Shipping Act of 1984, but are subject to the FMC’s monitoring of their activities to guard 

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

costs or decreases in transportation services. 

Fiscal year 2010 was an active year for the Commission, which concentrated on facilitating 

accessibility of U.S. exports to foreign markets via ocean transportation, the economic recovery, 

protecting American consumers, encouraging a sustainable ocean transportation industry, 

enhancing safety and security, and monitoring foreign practices to protect American jobs. 

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

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

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

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

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

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

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

available federal resource" in pursuit of that goal. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 8 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

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

impede the growth of exports and the continued recovery. In March, the Commission initiated 

Fact Finding Investigation No. 26, Vessel Capacity and Equipment Availability in the United 

States Export and Import Liner Trades. The fact finding team held more than 170 interviews 

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

a series of best-practices discussion meetings between shippers and carriers, and began internetbased collaborative efforts to develop solutions to container availability issues. The fact finding 

team issued an interim report and recommendations in June, and a final report and 

recommendations in December. The Commission took several steps following those 

recommendations: 

o	 Rapid Response Teams: In June, the Commission established Rapid Response 

Teams to provide prompt solutions for commercial disputes between carriers and 

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

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

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

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

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

o	 Increased TSA and WTSA oversight: In September, the Commission ordered that 

members of the rate discussion agreements in the United States’ largest trade lane -­

the inbound Transpacific Stabilization Agreement (TSA) and the outbound 

Westbound Transpacific Stabilization Agreement (WTSA) -- file verbatim transcripts 

of their meetings. This was designed to assist the Commission in determining whether 

member carriers were improperly discussing issues. 

o	 Increased carrier alliance oversight: The Commission directed its staff to prepare 

recommendations for increasing oversight of global vessel alliances, which have 

authority to set capacity collectively. The Commission issued reporting requirements 

on the major alliances in early 2011. 

o	 International Ocean Transportation Working Group: In December, the 

Commission voted to form two working groups to increase dialogue between shippers 

and carriers. The first is an International Ocean Transportation Working Group, 

which will focus on: (1) booking cancellations and rolling cargo; (2) improving 

shipper forecasting and minimum quantity estimates; (3) export capacity forecasting; 

and (4) other ways to improve the shipper-carrier relationship, including collaboration 

on major supply chain changes. 

o	 Intermodal Container Availability Working Group: The second group that the 

Commission approved will focus on issues dealing with container availability and 

accessibility for U.S. exporters. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 9 
 

 

 

 

 

 

 

Federal Maritime Commission 

o	 Service Contract Enhancement Project: The Commission also voted in December 

to move forward with a project focused on helping small U.S. exporters and importers 

improve their service contracting practices through education and outreach. The 

project will include development of a web-based educational tool. 

In addition to implementing these recommendations, the Commission has been assisting ocean 

carriers, the U.S. Department of Agriculture’s Agricultural Marketing Service, and agricultural 

exporters pilot project to give more transparency and visibility to the chronic problem of locating 

empty containers for exports. The Agricultural Marketing Service has completed the pilot project 

to show container availability at 18 U.S. port and inland locations. Plans for the next phase have 

been submitted to the Office of Management and Budget for review and approval. Following 

approval, the Agricultural Marketing Service plans to collect container availability data from at 

least ten leading ocean carriers, which will assist U.S. exporters in determining container 

availability for each week, along with projections two weeks in the future. 

Finally, the Commission is exploring a rule to conditionally relieve more than 3,300 licensed 

non-vessel-operating common carriers (NVOCCs) from the costs and burdens of publishing in 

tariffs the rates they charge for cargo shipments. The Commission issued a proposed rule, held a 

public hearing, and received many comments. Most NVOCCs are small businesses who could 

see significant savings from such exemptions. 

Vessel Capacity and Equipment Availability: The Chairman met with major carriers, offering 

the Commission’s services as an “honest broker” to assist parties in resolving vessel capacity and 

equipment availability issues that had quickly but unexpectedly escalated between shippers and 

carriers. The Chairman called on carriers and shippers to be “partners in recovery,” recognizing 

that both carriers and shippers had been substantially affected by the recession. In the depths of 

the economic recession, ocean carriers worldwide laid-up substantial portions of their fleets. 

Demand had plummeted, causing rates to do so as well. Carriers found themselves with 

significant operating losses. Losses during 2009 were estimated to be as high as $20 billion. 

Consequently, carriers reduced their service by cutting back on capacity. Approximately 575 

container vessels were laid-up worldwide. Then, as the U.S. economy began to rebound, 

adequate vessel space and equipment was not available to U.S. exporters who saw increasing 

demand for their products, and later to U.S. importers experiencing the same difficulties. 

Carriers were reluctant, however, to return vessels to service without confirmation that the 

unanticipated and sudden increase in demand was not simply a result of temporary inventory 

restocking, but demand that would continue to increase and be sustainable. Shippers became 

convinced that ships were being withheld to drive up rates during the annual service contract 

renegotiations, which typically occur each spring. To address these issues and other allegations 

of carrier practices, the Commission also launched Fact Finding Investigation No. 26. Congress, 

for its part, began to review the question of the extent of continued antitrust immunity for liner 

shipping. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 10 
 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Shanghai Shipping Exchange Regulations: In response to a request from the National 

Industrial Transportation League (NITL) for assistance in informally pursuing information and 

clarification of Chinese regulations for filing freight rates, the FMC obtained an English 

translation of the Ministry of Transport of the People’s Republic of China’s Public Notice 

Regarding Freight Rate Filing Implementation Measures for International Container Liner 

Service and provided it to the public through its website. The Commission also provided a link 

on its website to a circular with a rule proposed by China that would require NVOCCs to file 

their freight rates with the Shanghai Shipping Exchange. 

Marine Environmental Committee and Clearinghouse: The FMC has seen environmental 

issues become increasingly central to the agreements and shipping practices we monitor. In 

fiscal year 2010, the Commission formed a Marine Environmental Committee which has begun 

to review the filings at the agency for best environmental practices that the Commission can put 

forward as models for adoption by other ports and companies. The Commission also created a 

webpage to serve as an environmental issues clearinghouse for information on maritime 

environmental issues, news, resources, laws and regulations, and best practices. 

Transpacific Stabilization Agreement’s (TSA) Amendment to discuss environmental 

initiatives: The Commission cleared an amendment that provides TSA members with the ability 

to discuss beneficial environmental programs such as slow steaming, cold ironing, and 

alternative fuel usage. 

NVOCCs relieved from the burden of publishing rate tariffs: As previously noted, the 

Commission issued a proposed rule which when final, would enable licensed NVOCCs to avoid 

publishing tariff rates upon meeting several conditions, including that the rates for all shipments 

be agreed to in writing and available to the Commission for review if necessary. These written 

agreements would be known as "negotiated rate arrangements." 

EU Study: The Commission was actively engaged in gathering data for its study of the impact 

of the October 2008 European Union (EU) repeal of its block exemption for liner conferences. 

Data include information regarding changes in carrier market structures, competition, services, 

vessel capacity, rates and surcharges. A dialogue also was established with officials of the 

European Commission, Directorate-General for Competition. 

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

Commerce: Towards the end of the fiscal year, Commission staff began to coordinate with the 

ITA in ITA’s attempt to quantify the economic impact of shippers’ inability to obtain containers 

or vessel space for their shipments and to address container availability issues. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 11 
 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Strategic Goal 2 

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

disputes 

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

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

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

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

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

unlicensed operations and licensing only those OTIs with appropriate character and financial 

responsibility, and ensuring financial responsibility of cruise vessel operations so that in the 

event of non-performance, passengers do not forfeit deposits made to the cruise lines. Pursuant 

to these regulatory responsibilities the Commission undertook a number of significant actions 

during fiscal year 2010 to address issues affecting American consumers who ship their personal 

goods overseas or take cruises. 

Household Goods Shipments: In June, the Commission initiated Fact Finding Investigation 

No. 27, Potentially Unlawful, Unfair or Deceptive Ocean Transportation Practices Related to 

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

determine issues that individual consumers have experienced when shipping their personal 

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

from individuals who have experienced problems with their international household goods 

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

complaints related to household goods moving companies transporting personal effects and 

vehicles. In December 2010, the Commission approved several interim recommendations from 

the fact finding team, including: 

o	 Consumer education: The Commission voted to upgrade its website to better assist 

customers shopping for international shipping options; engage in formal cooperation 

with other governmental agencies who protect consumers moving household goods; 

enhance cooperation with trade associations representing household goods movers; 

develop information for ocean transportation intermediaries to distribute to 

consumers moving household goods; target outreach to local communities that 

regularly ship household goods overseas; and encourage household goods movers to 

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

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

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

forms that address issues consumers have encountered when shipping household 

goods. 

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

will include recommendations for adjustments that specifically address issues with 

household goods shipments. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 12 
 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

o	 Enforcement: The Commission voted to enhance joint law enforcement efforts to 

protect consumers and address problem household goods movers. The Commission 

also voted to develop enforcement strategies that focus on entities offering services 

related to household goods shipments. 

o	 Alternative Dispute Resolution: The Commission also decided to move forward 

with initiatives to better promote ADR services to assist consumers who experience 

problems when moving their household goods overseas. 

The fact finding team is continuing its work on the second phase of the investigation. 

Cruise Lines: The Commission has been conducting a Notice of Inquiry to update financial 

protections for cruise passengers. In March, the Commission conducted a hearing on the issue, 

and the Commission is currently developing a proposal to update its rules for the protection of 

passengers. The Commission also worked to ensure that passengers in its jurisdiction were 

compensated when the cruise line Cruise West ceased operations and cancelled sailings in 

September. It worked with the cruise line and its claims processor, and issued consumer 

advisories to keep passengers informed of their rights and options. 

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

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

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

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

financial stress. TSA member lines have indicated that they may also use their new authority to 

work to increase use of alternative fuels, cold ironing, and other pollution-reducing technologies. 

While these practices hold promise for reducing vessels' emissions, the Commission is closely 

monitoring slow-steaming arrangements to ensure that they do not cause unreasonable 

constraints on the supply chain now that international shipping demand has recovered. 

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

Enforcement and Area Representatives continued their efforts to prevent practices that are unfair 

and deceptive. The targeted violations included misdescriptions of cargo, which also poses a 

serious safety and security risk because it prevents vessel operators and port officials from 

knowing when dangerous goods are being transported on vessels into the United States. During 

2010, the Commission collected more than $1.1 million in penalties for such violations. 

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

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

adversely affect American commerce. Following concerns raised by U.S. shippers, the FMC’s 

Chairman visited the Shanghai Shipping Exchange to seek and obtain assurances regarding 

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

The Commission also raised these issues and the concerns of U.S. NVOCCs in October, as part 

of the U.S. delegation to bilateral consultations with the Chinese Ministry of Transport under the 

U.S.-China Maritime Agreement. The FMC will continue to follow these and related 

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

U.S. commerce. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 13 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

The Commission is also studying the effects in the U.S. trades of the European Union’s repeal of 

its block exemption for liner conferences. In November, the Commission requested input from 

all interested parties, and the deadline for submitting information or comments is January 18, 

2011. 

Dispute Resolution: During fiscal year 2010, 450 individual cases were opened to resolve 

complaints. These included 145 passenger complaints about cruise line issues, 148 complaints 

with respect to household goods shipments, and 157 complaints involving general cargo 

shipment matters. The Commission’s Office of CADRS also played a significant role in Fact 

Findings 26 and 27. In Fact Finding 26, it was determined that the Commission’s role in 

resolving significant industry problems, such as those involving capacity and container 

shortages, of necessity had to rely on various ADR techniques for resolution. Participation of the 

parties in confidential ADR services can provide a means for immediate, cost-effective 

resolution through cooperation between parties. Confidentiality is essential to the success of 

such efforts, especially considering the confidential nature of service contracts. In Fact Finding 

No. 27, the experience of the Commission’s dispute resolution staff was particularly useful in 

identifying the significant issues and practices that were at the root of household goods shipment 

issues. 

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

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

affecting more than 1000 shipments. Violations included providing transportation services to 

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

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

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

forth in published tariffs or a service contract. Also, the Commission instituted an investigation 

against a Hong Kong-based NVOCC and its affiliated shippers’ association, to determine 

whether the NVOCC violated sections 10(b) (1) of the Shipping Act of 1984 by permitting 

unrelated entities to utilize the rates in its service contract and section 10(a) (1) by utilizing a 

shippers’ association as an unfair device or means to obtain lower rates than otherwise 

applicable. The investigation resulted in a substantial civil penalty and agreement to terminate 

operation of its affiliated shippers association. 

Technology and Stewardship of Resources: In fiscal year 2010, the FMC reorganized to make 

the most productive use of its resources. Strategic management of the FMC’s human resources, 

property management, financial and procurement practices and other vital support activities is 

essential to meet the agency’s regulatory and programmatic goals. The FMC strives to use new 

information technology (IT) as a means of improving agency business processes and augmenting 

the accessibility of the public conducting licensing or legal business with the agency. In fiscal 

year 2010, the FMC identified more ways in which new technology can and should be 

incorporated to achieve a paperless, efficient, and transparent government in the spirit of many 

government-wide initiatives recently introduced, including: 

o	 Upgrade of Commission telecommunications technology - During the fiscal year, the 

Commission’s telephone system was upgraded to provide Voice over IP capabilities. 

The Commission also initiated projects to enable the public viewing of Commission 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 14 
 

 

 

 

 

 

 

Federal Maritime Commission 

meetings over the internet, and built teleconferencing technology into an existing 

conference room. 

o	 Upgrade of the Commission’s Website Operating Platform - During fiscal year 2010, 

the Commission initiated efforts to upgrade its website operating platform. The new, 

more modern platform will enable the Commission to launch a new website during fiscal 

year 2011 that will include enhanced website graphics, more social 

networking/communications capabilities, and improved public visibility of the 

Commission’s resources and services. The new platform will support the Commission’s 

efforts to make more information proactively available to the public through its website, 

in support of the Administration’s initiative for a more open and transparent government. 

o	 OHR Finalized Work Plans - The Commission submitted its Human Capital Plan, 

Workforce Plan, Accountability System, and Succession Management Plan in accordance 

with OPM’s Human Capital Assessment and Accountability Framework and coordinated 

with OPM, OMB, and the Small Agency Human Resources Council on human capital 

and related initiatives. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 15 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Planned Activities in Fiscal Year 2011 and Beyond 

In its 50th year, the FMC will commemorate its history as a leader in the global intermodal 

revolution. Going forward, the Commission will be busy making new history on the critical 

issues of shipping capacity; container availability; supporting increased exports; protecting 

consumers; encouraging efficient, sustainable ocean transportation practices; enhancing safety 

and security; reducing regulatory burdens; and keeping a close watch for foreign maritime 

policies and practices that could harm U.S. commerce. 

Strategic Goal 1 

Maintain an efficient and competitive international ocean transportation system 

The Commission will remain vigilant in its review of trade conditions and on-going monitoring 

of collective activity among vessel-operating common carriers and marine terminal operators 

under filed agreements, to ensure that collective activity does not cause substantially 

unreasonable increases in transportation costs or decreases in transportation services. Wherever 

possible, the Commission will look for opportunities to support efficiency enhancing and best 

environmental practices. As part of its program objectives for fiscal years 2011 and 2012, the 

Commission plans to: 

Implement recommendations from Fact Finding Investigation No. 26, Vessel Capacity and 

Container Availability in the United States Export and Import Liner Trades: the Commission 

will spend 2011 working to implement final recommendations by assisting U.S. exporters and 

importers with capacity, contracting, and container issues. With new monitoring requirements in 

place, the Commission will give unprecedented scrutiny to discussions and decisions by TSA, 

WTSA, and the global alliances that could affect U.S. exporters and importers. The Commission 

will continue to encourage exporters and importers to report any evidence of improper activities 

or collusion for a prompt response. 

The Commission will also work to implement its project of helping small U.S. exporters and 

importers improve their service contracting practices. This project will be a top priority as 

shippers enter the service contract negotiation season in late spring. In addition, the Commission 

will be working to form and begin meetings of its new International Ocean Transportation and 

Intermodal Container Availability working groups. 

Focus on serving exports better: In 2011, the Commission plans to keep a sharp focus on how 

the FMC and the ocean transportation industry can support President Obama’s goal of doubling 

exports over the next five years. Public comments and input will be sought on current efforts and 

potential improvements. 

Protecting consumers: A central part of the FMC’s mission is to "protect the public from 

unfair and deceptive practices." In 2011, the Commission will continue its efforts to protect 

individual consumers who ship their personal, household goods overseas. The final report of Fact 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 16 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Cruise Lines: The Commission also will consider improvement to financial protections for 

cruise line passengers in 2011. This issue has been the subject of a Notice of Inquiry and 

Commission staff analysis during the past year. 

Efficiency and sustainability: Chairman Lidinsky plans to continue the Commission’s efforts 

to encourage an efficient, sustainable ocean transportation industry. Led by the Commission’s 

Maritime Environmental Committee, these efforts will include a look at slow steaming, 

environmental initiatives at the nation’s ports, and close monitoring of international climate 

change negotiations under both the United Nations Framework Convention on Climate Change 

and the International Maritime Organization’s Marine Environment Protection Committee. 

Safety and security: The Commission will continue to act vigorously to detect and punish the 

threats to safety and the shipping public posed by misdescribed cargo shipments. The 

Commission will also continue to work closely with U.S. Customs and Border Protection to 

protect both safety and commerce. 

Modernizing and reducing burdens: A staff working group will examine the Commission’s 

Rules of Practice and Procedure to make them more efficient, less burdensome on parties, and 

more useful for consumers trying to resolve disputes through informal or alternative resolution 

proceedings. The Commission also will consider a final rule exempting NVOCCs from tariff rate 

publication requirements. 

China dialogue: Chairman Lidinsky intends to continue the Commission’s dialogue with 

China’s Ministry of Transport and the Shanghai Shipping Exchange in 2011. 

The European Commission’s Repeal of the Block Exemption for Liner Shipping: The 

Commission will also continue working on its study of the effects of the European Union’s 

repeal of its block exemption for liner conferences. The Commission's study will cover two years 

before and after the October 2008 EU repeal of its block exemption for liner conferences. It will 

include analysis of changes in carrier market structures, competition, services, vessel capacity, 

rates and surcharges. The study also will explore the extent to which the repeal altered liner 

cargo growth and/or the mix of commodities shipped, as well as the competitiveness of U.S. 

container exports. 

Review of Trade Conditions and the Impact of Agreements on Rates and Service: The 

Commission’s fostering of U.S. international liner trade will continue to be the critical focus in 

the review of carrier agreements. Commission staff will closely monitor the service contract and 

tariff rate levels, equipment availability, frequency of vessel calls, vessel utilization, available 

capacity, trade flows and other economic information to evaluate trade conditions and the impact 

of collective carrier action on the trades. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 17 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Strategic Goal 2 

Protect the public from unlawful, unfair and deceptive practices 

and resolve shipping disputes 

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

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

encountered by U.S. importers and exporters. To provide opportunity for timely resolution 

without encumbering commercial relationships with the time, expense and acrimony of litigation 

or enforcement activity, the Commission will provide a variety of ADR services. At the same 

time, we will strengthen our enforcement activity to provide deterrence by penalizing those who 

pursue unlawful practices. Through the administrative process, the Commission will also 

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

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

Activities planned for fiscal year 2011 and beyond include: 

Fact Finding No. 26, Vessel Capacity and Equipment Availability in the United States Export 

and Import Liner Trades: The Fact Finding Officer’s final report was provided on 

November 30, 2010. The Commission will review and decide on recommendations made by the 

Fact Finding Officer. 

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

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

Oceanborne Trades: An interim report by the Fact Finding Officer was provided to the 

Commission in November 2010, with a final report due soon thereafter. 

Public Assistance through Alternative Dispute Resolution: The Commission will seek to 

make the public more aware of its dispute resolution services through education internally and 

externally, training and other outreach efforts. The Office of CADRS will make presentations 

to promote and encourage the use of ADR and its various processes to quickly resolve 

developing problems. 

Enforcement of the Shipping Statutes: Efforts will focus on practices that impede reasonable 

access of importers and exporters to ocean transportation and unlawful practices of 

discrimination and unjust preference. 

Passenger Vessel Financial Responsibility: The Commission will evaluate data gathered as a 

result of the passenger vessel financial responsibility Notice of Inquiry (NOI), and determine 

whether changes are required to financial responsibility requirements. 

Compliance Audit Program: The Commission, through its ARs, seeks to expand its 

compliance-focused program to review and audit ocean common carrier, NVOCC and freight 

forwarder operations. While well received by the regulated industry, compliance audits annually 

address less than 2.5% of the approximately 5,400 licensed or bonded OTIs registered with the 

Commission. This program seeks to protect the public from unlawful or unfair OTI practices, 

and prevent public harm that might more readily be addressed through licensing and bonding 

compliance. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 18 
 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Technology and Stewardship of Resources: The agency will continue its long-standing record 

of receiving unqualified opinions on its Financial Statement Audits. The FMC will continue to 

prepare the Federal Activities Inventory Reform Act report, and the Performance Accountability 

Report (PAR) which includes the Management’s Discussion and Analysis (MD&A) report and 

the Federal Managers Financial Integrity Act report (FMFIA). The staff will continue to update 

internal Commission issuances and Standard Operating Procedures for a variety of programs and 

activities. 

The Commission will focus on achieving significant productivity improvements and making the 

Commission more visible to users of international ocean shipping. Activities planned for fiscal 

year 2011 and beyond include: 

Technology: The Commission will continue its review of business processes with the goal of 

using technology to increase Commission productivity throughout its operations. 

Enhance Public Awareness and Transparency: The Commission is committed to the mandate 

of transparency and openness in government. As such, transparency and accountability on 

behalf of the Commission will be enhanced by evaluating, developing and implementing 

improvements to the Commission’s communication mediums. Most significantly the 

Commission will complete its website upgrade and redesign in fiscal year 2011. The entire body 

of historical Commission decisions issued in its adjudicatory proceedings will be made available 

on the FMC website, and technology enhancements in the Commission’s Hearing Room will 

improve public information and communications at public hearings and Commission meetings. 

Human Resource Initiatives: The Commission supports the Administration’s goal to build a 

transparent, high-performance government specifically with respect to Federal hiring reform and 

improving employee satisfaction and wellness. In addition, the Commission will redesign its 

performance appraisal system to make it more relevant and useful to managers and employees, 

and to focus more on the key ingredients of each staff member’s position. 

Employee Viewpoint Surveys: The Commission will continue to administer and assess results 

from the Annual Employee Viewpoint Surveys to gauge employee satisfaction with work/life 

and benefits programs, agency leadership, developmental opportunities, etc., and use these 

metrics to strategically implement, monitor, measure, assess progress in achieving, and report on 

human capital management goals in accordance with the agency’s Human Capital, Workforce, 

Succession Management and Accountability Plans. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 19 
 

 

 

Federal Maritime Commission 

FMC Mission 

To foster a fair, efficient and reliable international 

ocean transportation system and to protect the public 

from unfair and deceptive practices 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 20 
 

 

Federal Maritime Commission 

FTE and Positions by Program 

FY 2010 - FY 2012 

Program/Office 

Actual 

FY 2010 

Estimate 

FY 2011 

Request 

FY 2012 

From FY 11 

Percent Difference 

FTE Positions* FTE Positions* FTE Positions* FTE Positions* 

Headquarters 118.51 119.00 122.00 122.00 124.00 124.00 1.64% 1.64% 

Area Representatives 8.04 9.00 9.00 9.00 9.00 9.00 0.00% 0.00% 

Agency Total 126.55 128.00 131.00 131.00 133.00 133.00 1.53% 1.53% 

Formal Proceedings

 Office of the Chairman 3.13 3.00 3.00 3.00 3.00 3.00 0.00% 0.00%

 Office of the Commissioners 5.37 6.00 8.00 8.00 8.00 8.00 0.00% 0.00%

 Office of the Secretary 7.26 8.00 7.60 8.00 7.60 8.00 0.00% 0.00%

 Library 1.00 1.00 1.00 1.00 1.00 1.00 0.00% 0.00%

 Office of Consumer Affairs and Dispute Resolution Services 7.05 6.00 7.00 7.00 9.00 9.00 28.57% 28.57%

 Office of the General Counsel 10.30 11.00 11.00 11.00 11.00 11.00 0.00% 0.00%

 Office of Administrative Law Judges 2.73 3.00 3.00 3.00 3.00 3.00 0.00% 0.00% 

Formal Proceedings Total 36.84 38.00 40.60 41.00 42.60 43.00 4.93% 4.88% 

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

Office of the Inspector General 2.92 3.00 3.00 3.00 3.00 3.00 0.00% 0.00% 

Operational and Administrative

 Office of the Managing Director 

 Bureau of Trade Analysis

 Office of the Director 

8.92 

4.22 

10.00 

4.00 

9.25 

4.00 

9.00 

4.00 

9.00 

4.00 

9.00 

4.00 

-2.70% 

0.00% 

0.00%

0.00%

 Office of Service Contracts and Tariffs 5.43 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

 Office of Economics and Competition Analysis 5.04 4.00 4.00 4.00 4.00 4.00 0.00% 0.00%

 Office of Agreements 4.00 4.00 4.00 4.00 4.00 4.00 0.00% 0.00%

 Bureau of Certification and Licensing

 Office of the Director 3.53 3.00 3.00 3.00 3.00 3.00 0.00% 0.00%

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

 Office of Transportation Intermediaries 8.04 8.00 8.00 8.00 8.00 8.00 0.00% 0.00%

 Bureau of Enforcement 10.69 10.00 10.00 10.00 10.00 10.00 0.00% 0.00%

 Area Representatives 8.04 9.00 9.00 9.00 9.00 9.00 0.00% 0.00%

 Office of Information Technology 6.93 7.00 8.50 9.00 9.00 9.00 5.88% 0.00%

 Office of Human Resources** 4.56 5.00 5.40 5.00 5.40 5.00 0.00% 0.00%

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

 Office of Management Services 5.39 6.00 5.25 5.00 5.00 5.00 -4.76% 0.00% 

Operational and Administrative Total 85.79 86.00 86.40 86.00 86.40 86.00 0.00% 0.00% 

Total FTEs and Positions 126.55 128.00 131.00 131.00 133.00 133.00 1.53% 1.53% 

* Denotes positions on September 30.
 

** Denotes FTEs associated with a Summer Hire Program
 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 21 
 

 

 

Federal Maritime Commission 

Obligations by Object Class 

FY 2010 - FY 2012 

Category 

FY 2010 

Actual 

FY2011 

Estimate 

FY2012 

Request

Personnel Compensation & Benefits

 (11.9) Full time Permanent Employment $ 13,367,233.05 $ 14,438,000.00 $ 14,898,000.00

 (11.3) Other than Full time Permanent Employment $ 120,235.69 $ 95,000.00 $ 95,000.00 

 (11.7) Performance Awards $ 299,642.00 $0.00 $0.00

 (12.1) Civilian Personnel Benefits $ 3,237,946.09 $ 3,675,000.00 $ 3,816,000.00 

Total Personnel Compensation & Benefits $ 17,025,056.83 $ 18,208,000.00 $ 18,809,000.00

Travel and Administrative Expenses 

 (21.0) Travel and Transportation of Personnel $ 285,758.02 $ 283,000.00 $ 283,000.00 

 (22.0) Transportation of Things (Express Mail) $ 24,541.83 $ 25,000.00 $ 25,000.00 

 Rent, Communications & Utilities 

 (23.1) Rental Payments to GSA $ 3,173,491.98 $ 3,354,000.00 $ 3,371,000.00 

 (23.2) Rental Payments to Others $ 27,035.20 $ 30,000.00 $ 30,000.00 

 (2.35) Local, Long Distance, and Cellular Telephones $ 165,020.52 $ 255,000.00 $ 275,000.00 

 (28.3) Postage $ 5,999.84 $ 13,000.00 $ 13,000.00 

 (24.0) Printing $ 188,026.31 $ 146,000.00 $ 187,000.00 

 (25.1) Consulting (FY 2012 includes $265,000 for MTIPS) $ 196,332.71 $ 186,000.00 $ 485,000.00 

 (25.2) Purchase of Goods and Services from Commercial Accounts $ 1,116,723.78 $ 1,158,000.00 $ 1,038,000.00 

 (25.3) Purchase of Goods and Services from Government Accounts $ 1,374,964.82 $ 1,350,000.00 $ 1,362,000.00 

 (25.7) Equipment Maintenance $ 85,893.47 $ 90,000.00 $ 91,000.00 

 (26.0) Supplies and Materials $ 220,632.01 $ 255,000.00 $ 271,000.00 

 (31.0) Furniture & Equipment (Includes IT Hardware and Software) $ 235,250.24 $ 145,000.00 $ 25,000.00 

Travel and Administrative Expenses $ 7,099,670.73 $ 7,290,000.00 $ 7,456,000.00 

Spending Authority $ 24,124,727.56 $ 25,498,000.00 $ 26,265,000.00 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 22 
 

 

 

Federal Maritime Commission 

Average Salary and Grade 

(Excludes Benefit Costs) 

FY 2010 - FY 2012 

Category

FY 2010 

Actual 

FY 2011 

Estimated 

FY 2012 

Request 

Salaries 

 Full time Permanent GS $10,704,752.05 $11,166,336.81 $11,610,952.00 

 Full time Permanent GM $136,771.00 $136,771.00 $136,771.00 

 Part time $120,235.69 $94,956.53 $95,000.00 

 Other (Schedule-C, ALs, ES, EX) $2,825,352.00 $3,134,935.66 $3,150,277.00 

Overall Average Salary $107,711.80 $110,938.93 $112,729.32

Average Grade (Includes Part time Positions) 

General Schedule 

 GS-04 0.00 0.00 0.00

 GS-05 2.00 1.00 1.00

 GS-06 1.00 1.00 0.00

 GS-07 3.00 4.00 4.00

 GS-08 5.00 4.00 4.00

 GS-09 1.00 1.00 2.00

 GS-10 0.00 0.00 0.00

 GS-11 4.00 4.00 4.00

 GS-12 21.00 22.00 22.00

 GS-13 26.00 26.00 26.00

 GS-14 28.00 29.00 29.00

 GS-15 22.00 22.00 24.00 

Average GS Grade 12.76 12.82 12.89

 GM-14 1.00 1.00 1.00

 ES 8.00 9.00 9.00

 AL-3/E 2.00 2.00 2.00

 Presidential Appointees (EX) 4.00 5.00 5.00 

Total Positions 128.00 131.00 133.00 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 23 
 

 

 

 

Federal Maritime Commission 

Federal Maritime Commission 

Request by Strategic Goal and Program 

FY 2012 

Program/Office FY 2010 Actual FY 2011 Estimate 

FY 2012 Request 

Strategic Goal # 1 

Maintain an 

efficient and 

competitive 

international 

ocean 

transportation 

system 

Strategic Goal # 2 

Protect the public 

from unlawful, 

unfair and 

deceptive 

practices and 

resolve shipping 

disputes FY 2012 Request 

Changes Over 

FY 2010 Actual 

Changes Over 

FY 2011 Estimate 

Formal Proceedings

 Office of the Chairman $505,136.01 $622,333.99 $136,948.13 $547,792.52 $684,740.65 $179,604.64 $62,406.66

 Office of the Commissioners $1,380,968.63 $1,955,546.51 $393,666.20 $1,574,664.80 $1,968,331.00 $587,362.37 $12,784.49

 Office of the Secretary $1,247,838.12 $1,357,488.31 $256,161.59 $1,105,256.63 $1,361,418.22 $113,580.10 $3,929.91

 Library $353,215.24 $399,182.90 $162,834.97 $244,252.45 $407,087.42 $53,872.18 $7,904.52

 Office of Consumer Affairs and Dispute Resolution Services $1,374,885.20 $1,204,247.60 $0.00 $1,418,341.40 $1,418,341.40 $43,456.20 $214,093.80

 Office of the General Counsel $1,912,909.48 $2,103,419.05 $1,195,445.86 $946,232.39 $2,141,678.25 $228,768.77 $38,259.20

 Ethics $1,123.59 $3,730.43 $740.79 $2,963.15 $3,703.94 $2,580.35 ($26.49)

 Office of Administrative Law Judges $560,349.74 $625,162.16 $0.00 $635,149.81 $635,149.81 $74,800.07 $9,987.65 

Formal Proceedings Total $7,336,426.01 $8,271,110.95 $2,145,797.53 $6,474,653.16 $8,620,450.69 $1,284,024.68 $349,339.74 

Office of Equal Employment Opportunity $211,411.11 $226,831.27 $0.00 $225,387.70 $225,387.70 $13,976.59 ($1,443.57) 

Office of the Inspector General $711,605.87 $770,607.31 $0.00 $799,408.96 $799,408.96 $87,803.09 $28,801.65 

Operational and Administrative

 Office of the Managing Director $1,854,447.37 $2,073,556.37 $361,307.92 $1,696,775.15 $2,058,083.07 $203,635.70 ($15,473.30)

 Bureau of Trade Analysis $3,154,924.41 $2,889,954.67 $1,280,849.45 $1,673,082.91 $2,953,932.36 ($200,992.05) $63,977.69

 Bureau of Certification and Licensing $2,584,745.25 $2,597,817.59 $0.00 $2,657,437.35 $2,657,437.35 $72,692.10 $59,619.76

 Bureau of Enforcement $2,070,897.64 $1,940,823.59 $0.00 $1,984,785.80 $1,984,785.80 ($86,111.84) $43,962.21

 Area Representatives $1,794,193.79 $1,767,832.61 $307,521.80 $1,501,429.94 $1,808,951.74 $14,757.95 $41,119.13

 Office of Information Technology $2,013,979.20 $2,643,894.88 $572,048.91 $2,288,195.66 $2,860,244.57 $846,265.37 $216,349.69

 Office of Human Resources $770,612.63 $777,419.06 $160,457.89 $641,831.57 $802,289.46 $31,676.83 $24,870.40

 Office of Budget and Finance $717,580.19 $713,704.73 $143,967.51 $575,870.02 $719,837.53 $2,257.34 $6,132.80

 Office of Management Services $903,904.09 $824,446.97 $154,838.15 $619,352.62 $774,190.77 ($129,713.32) ($50,256.20) 

Operational and Administrative Total $15,865,284.57 $16,229,450.47 $2,980,991.63 $13,638,761.02 $16,619,752.65 $754,468.08 $390,302.18 

Totals $24,124,727.56 $25,498,000.00 $5,126,789.16 $21,138,210.84 $26,265,000.00 $2,140,272.44 $767,000.00 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 24 
 

 

 

Federal Maritime Commission 

Summary of Changes 

FY 2011 - FY 2012 

Category 

FY 2011 

Estimate 

FY 2012 

Request 

Net 

Change 

Spending Authority $25,498,000.00 $26,265,000.00 $767,000.00 

Full time Equivalents * 131.00 133.00 2.00 

Positions * 131.00 133.00 2.00 

Explanation of Changes : Amount 

Annualization of FY 2011 salary increases $182,000.00 

Salaries for additional positions (2) $125,000.00 

2012 promotions and WIGs for eligible staff $153,000.00 

Costs associated with employee benefits $141,000.00 

 Total Personnel Compensation and Benefits $601,000.00 

Travel and Administrative Expenses

 (21.1) Travel and Transportation of Personnel $0.00 

 (22.0) Transportation of Things (Express Mail) $0.00 

 (23.1) Rental Payments to GSA $17,000.00 

 (23.2) Rental Payments to Others $0.00 

 (23.5) Local, Long Distance, and Cellular Telephones $20,000.00 

 (28.3) Postage $0.00 

 (24.0) Printing $41,000.00 

 (25.1) Consulting (includes $265,000 for MTIPS ) $299,000.00 

 (25.2) Purchase of Goods and Services from Commercial Accounts ($120,000.00) 

 (25.3) Purchase of Goods and Services from Government Accounts $12,000.00 

 (25.7) Equipment Maintenance $1,000.00 

 (26.0) Supplies and Materials $16,000.00 

 (31.0) Furniture & Equipment (Includes IT Hardware and Software) ($120,000.00) 

 Total Travel and Administrative Expenses $166,000.00 

Total Changes $767,000.00 

* Includes Part time employees 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 25 
 

 

 

 

Federal Maritime Commission 

Appropriation Language 

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

Merchant Marine Act, 1936, as amended (46 U.S.C. 307), including services as authorized by 5 U.S.C. 

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

therefore, as authorized by 5 U.S.C. 5901-5902, 

[$25,498,000/\] : Provided, That not to exceed $2,000 shall be available for official reception and $26,265,000 

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

Appropriations Act, 2011). 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 26 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

FMC Fiscal Year 2012 Budget Request by Strategic Goal
 

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

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

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

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

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

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

licensing of qualified OTIs, and overseeing the financial responsibility of PVOs. The FMC’s 

oversight responsibilities have a direct impact on the financial well-being of every American 

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

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

plan. The FMC’s fiscal year 2012 budget request totals $26,265,000 and funds 133 full-time 

equivalents (FTEs). This is an increase of $767,000 over the agency’s fiscal year 2011 

President’s Budget funding level. 

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

system 

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

resolve shipping disputes 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 27 
 

 

Federal Maritime Commission 

FY 2012 Budget Request by Program 

Formal Proceedings IG EEO Operational & Administrative 

FY 2012 FTE Request by Program 

86.40 

1.00 

42.60 

3.00 

Formal Proceedings IG EEO Operational & Administrative 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 28 
 

 

 

Federal Maritime Commission 

Relationship of Obligations to Outlays 

FY 2010 - FY 2012 

Program 

FY 2010 

Actuals 

FY 2011 

Estimate 

FY 2012 

Requested 

Formal Proceedings $7,336,426.01 $8,271,110.95 $8,620,450.69 

Equal Employment Opportunity $211,411.11 $226,831.27 $225,387.70 

Inspector General $711,605.87 $770,607.31 $799,408.96 

Operational and Administrative $15,865,284.57 $16,229,450.47 $16,619,752.65 

Unobligated $10,272.44 $0.00 $0.00 

 Budget Authority $24,135,000.00 $25,498,000.00 $26,265,000.00 

 Obligations $24,124,727.56 $25,498,000.00 $26,265,000.00 

 Outlays* $21,280,432.38 $22,601,427.20 $23,281,296.00 

 Outlay Rate (Obligation to Outlay)** 88.64% 88.64% 88.64% 

 Obligation Rate 99.96% 100.00% 100.00% 

Grosss Outlays for FY 2010 

Total outlays for fiscal year 2005 disbursed in fiscal year 2010 ($7,368.93) 

Total outlays for fiscal year 2006 disbursed in fiscal year 2010 $1,170.00 

Total outlays for fiscal year 2007 disbursed in fiscal year 2010 $10,944.12 

Total outlays for fiscal year 2008 disbursed in fiscal year 2010 $100,421.10 

Total outlays for fiscal year 2009 disbursed in fiscal year 2010 $2,598,087.98 

Total outlays for fiscal year 2010 $21,280,432.38 

Total outlays for fiscal year 2010 (Reimbursable Agreement) $113,459.45 

 Outlays $24,097,146.10 

* Represents Outlays for FY 2010 only 

** Represents the percentage of FY 2010 obligations that were disbursed during FY 2010 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 29 
 

 

 

Federal Maritime Commission 

Formal Proceedings Program
 

Federal Maritime Commission 

Formal Proceedings 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Chairman 3.13 3.00 3.00 

Commissioners 5.37 8.00 8.00 

Secretary 7.26 7.60 7.60

 Library 1.00 1.00 1.00 

CADRS 7.05 7.00 9.00 

General Counsel 10.30 11.00 11.00 

Administrative Law Judges 2.73 3.00 3.00 

Total FTEs 36.84 40.60 42.60 

Cost: Salaries & Benefits $5,308,896.17 $6,164,201.45 $6,513,156.45 

Non-Personnel Expenses $2,027,529.84 $2,106,909.50 $2,107,294.24 

Total Cost $7,336,426.01 $8,271,110.95 $8,620,450.69 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

10.17 32.43 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$2,145,797.53 $6,474,653.16 

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

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

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

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

proceedings, provides an ADR program and to facilitate dispute resolutions, and conducts 

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

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 30 
 

 

Federal Maritime Commission 

Office of the Chairman 

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

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

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

business and use of funds for administrative purposes. 

Federal Maritime Commission 

Formal Proceedings 

Office of the Chairman 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Chairman 3.13 3.00 3.00 

Cost: Salaries & Benefits $382,138.48 $472,004.04 $525,630.09 

Non-Personnel Expenses $122,997.53 $150,329.95 $159,110.56 

Total Cost $505,136.01 $622,333.99 $684,740.65 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.60 2.40 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$136,948.13 $547,792.52 

Chairman Lidinsky effected a reorganization of the Commission on January 31, 2010. Through 

the reorganization, the Chairman sought to reinvigorate the Commission, making it more nimble 

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

transportation. The Commission consulted closely with Congress and FMC staff to take 

advantage of what has worked during the Commission's forty-nine year history, while 

modernizing to keep pace with an ocean transportation industry that continues to grow in size 

and importance. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 31 
 

 

 

Federal Maritime Commission 

Office of the Commissioners
 

The Chairman and the other four Commissioners are responsible for making decisions and 

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

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

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

assure compliance with the 1984 Act, as amended by OSRA, the 1920 Act, FSPA, and P. L. 89­

777. 

Also during the fiscal year ending September 30, 2010, the Commission issued 42 orders and 

notices in docketed proceedings. 

Federal Maritime Commission 

Formal Proceedings 

Office of the Commissioners 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Commissioners 5.37 8.00 8.00 

Cost: Salaries & Benefits $1,025,355.60 $1,525,644.36 $1,544,247.96 

Non-Personnel Expenses $355,613.03 $429,902.15 $424,083.04 

Total Cost $1,380,968.63 $1,955,546.51 $1,968,331.00 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.60 6.40 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$393,666.20 $1,574,664.80 

In 2010, the Commission undertook two major initiatives into major areas of concern affecting 

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

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

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

liner trades and impediments to U.S. oceanborne imports and exports. It also supports President 

Obama’s directive to use Federal resources to increase U.S. exports over the next five years. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 32 
 

 

 

Federal Maritime Commission 

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

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

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

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

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

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

shipping disputes. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 33 
 

 

 

Federal Maritime Commission 

Office of the Secretary (OS)
 

The OS serves as the focal point for matters submitted to and emanating from the Commission. It 

is the public’s main contact point with the FMC. The Office receives and processes a variety of 

documents filed by the public, including: complaints initiating adjudicatory proceedings for 

alleged violations of the shipping statutes and other applicable laws; special docket applications 

and requests to correct clerical or administrative errors in service contracts or NSAs; all 

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

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

Federal Maritime Commission 

Formal Proceedings 

Office of the Secretary 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Secretary 7.26 7.60 7.60 

Cost: Salaries & Benefits $901,352.51 $999,362.83 $1,033,154.49 

Non-Personnel Expenses $346,485.61 $358,125.48 $328,263.73 

Total Cost $1,247,838.12 $1,357,488.31 $1,361,418.22 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.43 6.17 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$256,161.59 $1,105,256.63 

The Office is responsible for preparing and submitting regular and notation agenda matters for 

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

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

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

issuing publications; and authenticating instruments and documents of the Commission. The 

Office also responds to information requests from Commission staff, the maritime industry, 

press, and the public; administers the Freedom of Information, Government in the Sunshine, and 

Privacy Acts; compiles historical Commission decisions; maintains a public reference/law library 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 34 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

and a Docket Activity Library; manages the Commission’s Internet website; and participates in 

the development and coordination of agency-wide public relations/outreach strategies and 

initiatives. 

During fiscal year 2010, the OS continued to administratively process and direct all major filings 

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

section 5 of the 1984 Act. The Office also issued 42 orders in docketed proceedings on behalf of 

the Commission. 

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

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

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

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

The Secretary was designated as the agency’s Performance Improvement Officer (PIO) in 

February 2010. Subject to the direction of the Chairman, and in consultation with the Managing 

Director, the PIO supervises the Commission’s performance management activities, including 

development of performance goals, plans and reports. During fiscal year 2010, the PIO drafted 

revision to the 2010-2015 Strategic Plan. This revision will further streamline the plan to focus 

all resources on mission-oriented goals. The Secretary has held and will continue to hold 

quarterly meetings with all agency components to measure progress toward specific performance 

targets set out in the strategic plan. 

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

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

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

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

specific topics and issues related to the agency and important to stakeholders and the media. For 

example, the Office worked with other Commission components and sometimes other agencies 

to provide information on such hot topics as moving personal household goods, cruise passenger 

information, passenger vessel financial responsibility, U.S. export and import capacity issues, 

China’s new shipping policies, maritime environmental issues and the Deepwater Horizon Oil 

Spill. These informative online resources provide easy public access to useful information and 

resources, increase public awareness of how the FMC is involved with daily events and help to 

underscore our mission to oversee oceanborne transportation in the foreign commerce of the U.S. 

Additionally, the Office upgraded the Commission’s website operating platform and content 

management tool. These upgrades support plans to enhance website graphics, include more 

social networking/communications capabilities, and further improve public visibility of the 

Commission’s website. During the latter part of fiscal year 2010 and into 2011, the Office will 

proceed with plans to systematically review and enhance website content. For example, during 

fiscal year 2011, the Office plans to improve the overall usability of the website by working 

closely with other offices and bureaus, other government agencies, and public users to provide 

content-driven, user-friendly information on the website. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 35 
 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

During fiscal year 2010, the Office collaborated with other Commission components on plans for 

upgrading and modernizing the communication technology in the Commission’s hearing room. 

The Office supported this effort by providing advice on best government practices and technical, 

web-based requirements as related to web broadcasting. The latter part of 2010 into 2011, these 

improvements have been made to the hearing room and the Commission began “test run” 

streaming to disseminate the resulting audio and video content on its website where the 

information can reach a wider audience regarding information about the FMC mission strategies, 

objectives, plans, activities, and actions. 

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

the Office. Not only does the Office electronically convert all official Commission files (both 

current and historical), it is responsible for planning, scheduling and systematically scanning 

documents for other agency components. The Document Management Program the Office 

oversees helps support the agency’s initiatives for Continuity of Operations (“COOP”) by: 

improving preservation of and staff access to Commission documents, improving staff response 

time to public inquiries, and providing direct public access to electronic files. As a result of its 

scanning program, the Office continued to make key documents filed in formal proceedings 

available through its website. 

During the fiscal year, the Office completed a large-volume scanning project. The contents of 28 

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

were converted to electronic format and were posted to the Commission’s website. These 

historical decisions are no longer in publication in bound volume form, however, with the 

completion of this project the entire body of historical Commission decisions issued in its 

adjudicatory proceedings were available on the FMC website. Making this information readily 

available to the public in electronic form has proven to be a useful and cost effective resource, 

especially for attorneys practicing before the Commission. 

During fiscal year 2011, the Office plans to develop an electronic searchable database for the 

Commission’s historical Informal Docket proceedings. The database will provide a more 

efficient research tool for historical cases and decisions related to informal docket proceedings 

filed with the Commission. The database will be initially available to staff attorneys, settlement 

officers, and the office of Administrative Law Judges. Coordination and support from the Office 

of Information Technology may be necessary. 

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

deceptive ocean transportation practices and resolve shipping disputes, during the latter part of 

fiscal year 2011 the Office plans to begin outlining a course of action to review the 

Commission’s Rules of Practice and Procedure. Emphasis will be on evaluating the 

Commission’s procedures against current Federal Rules of Civil Procedure and updating 

Commission procedures where appropriate. The benefits and challenges associated with 

electronic filing of documents in Commission proceedings will also be considered. Potential 

automation initiatives in this area must be accomplished in conjunction with the Office of 

Information Technology. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 36 
 

 

 

 

Federal Maritime Commission 

Library 

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

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

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

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

journals, magazines, reports, microforms, videos, law encyclopedias, engineering textbooks, 

legal treaties, legislative materials, and selected titles of the National Reporter system. The 

Library also contains material on several related fields such as engineering, economics, political 

science, and a collection of legal publications. The Library’s holdings consist of approximately 

8,700 volumes and numerous microfiches, CD-ROMs, and on-line services. 

Federal Maritime Commission 

Formal Proceedings 

Library 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Library 1.00 1.00 1.00 

Cost: Salaries & Benefits $106,224.40 $110,021.64 $113,720.10 

Non-Personnel Expenses $246,990.84 $289,161.26 $293,367.32 

Total Cost $353,215.24 $399,182.90 $407,087.42 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.40 0.60 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$162,834.97 $244,252.45 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 37 
 

 

 

 

 

 

Federal Maritime Commission 

Office of Consumer Affairs and Dispute Resolution Services (CADRS) 

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

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

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

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

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

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

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

be employed as needed. During fiscal year 2010, Commission mediators provided services in a 

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

goods. 

Federal Maritime Commission 

Formal Proceedings 

Office of Consumer Affairs and Dispute Resolution Services 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: CADRS 7.05 7.00 9.00 

Cost: Salaries & Benefits $1,047,368.45 $930,052.14 $1,110,384.37 

Non-Personnel Expenses $327,516.75 $274,195.46 $307,957.03 

Total Cost $1,374,885.20 $1,204,247.60 $1,418,341.40 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 9.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $1,418,341.40 

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

complaints include situations where an NVOCC or VOCC has placed a hold on cargo in its 

possession, often for sums owed under a different contract of carriage. Other cases occur when 

an NVOCC has received cargo from its customer and taken payment for the transportation of the 

cargo, but failed to deliver the cargo. Urgent resolution may facilitate delivery of shipments to 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 38 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

avoid the accrual of additional demurrage/detention/storage charges. With respect to household 

goods shipments, consumers often use unlicensed entities that demand additional payment and/or 

abandon the goods and refuse to communicate with the consumer. Tracking the whereabouts of 

a shipment can be difficult, and often additional charges have accrued, necessitating payment of 

additional funds to obtain release of the shipment. CADRS also receives a significant number of 

complaints involving issues with cruise lines. 

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

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

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

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

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

observe, and enforce just and reasonable regulations and practices. 

During fiscal year 2010, 532 complaints were received that necessitated the opening of cases to 

provide dispute resolution services. These included 157 passenger complaints about cruise line 

issues, 172 complaints with respect to household goods shipments, and 203 complaints involving 

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

complexity. Problems involving ocean transportation intermediaries with overextended finances 

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

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

often due to measurement discrepancies. 

Another issue that arose in fiscal year 2010 concerned a VOCC, which was the subject of more 

than twenty complaints. This particular company had its vessel seized for debts owed and yet 

continued to accept shipments without the ability to complete the ocean transportation. CADRS 

worked closely with the VOCC to secure these containers, to facilitate delivery through the use 

of ocean transportation intermediaries and other VOCCs, or to return the cargo to shippers. 

Also, CADRS received over twenty complaints involving a particular NVOCC, specializing in 

household goods shipments, which decided to sell its business without completing the 

transportation for which it had already been paid. CADRS assisted shippers in locating their 

shipments and directed them on how to make claims with the bonding company for losses 

incurred. 

The Commission initiated Fact Finding Investigation No. 26 into current conditions and practices 

in the U.S. liner trades, and into potential impediments to the flow of oceanborne import and 

export trades. This inquiry has generated a number of complaints and concerns from both the 

import and export communities. CADRS has been involved in seeking resolution to individual 

concerns regarding booking cancellations, and equipment and space limitations, and participates 

in the Commission’s efforts to address the larger problems. CADRS has also participated in the 

Commission’s Fact Finding Investigation No. 27 involving the review of potentially unlawful, 

unfair, or deceitful practices of the international shipment of household goods by water. 

Complaints to CADRS was the basis for initiating the matter and CADRS will necessarily be 

involved in efforts to resolve further disputes and to educate the public and industry with regard 

to appropriate practices and activities. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 39 
 

 

 

 

Federal Maritime Commission 

In fiscal years 2011 and 2012, CADRS intends to further expand awareness of the ADR program 

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

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

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

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

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

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

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

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

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

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

be possible through post-shipment problem resolution. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 40 
 

 

 

Federal Maritime Commission 

Office of the General Counsel (OGC)
 

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

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

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

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

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

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

the Commission’s international affairs program. 

Federal Maritime Commission 

Formal Proceedings 

Offie of the General Counsel 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: General Counsel 10.30 11.00 11.00 

Cost: Salaries & Benefits $1,412,696.57 $1,643,362.99 $1,690,580.41 

Non-Personnel Expenses $500,212.91 $460,056.06 $451,097.84 

Total Cost $1,912,909.48 $2,103,419.05 $2,141,678.25 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

6.14 4.86 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$1,195,445.86 $946,232.39 

Rulemaking and Decisions 

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

(a) Rulemakings 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 41 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Repeal of Marine Terminal Agreement Exemption - [Docket No. 09-02], 30 S.R.R. 1088 

(December 4, 2009) 

On July 2, 2009, the Commission published Notice of Proposed Rulemaking to repeal 46 C.F.R. 

§ 535.308, an exemption from the statutory waiting period for MTO agreements. The rulemaking 

was published in the Federal Register, 74 FR 31666, and received three comments. During its 

meeting on November 19, 2009, the Commission decided to repeal the exemption because 

pursuant to section 16 of the Shipping Act, 46 U.S.C. 40103, the Commission was permitted to 

continue the exemption from the Act’s requirements only if “it finds that the exemption will not 

result in substantial reduction in competition or be detrimental to commerce.” However, the 

Commission found that potentially anti-competitive agreements were filed under § 535.308. The 

Commission also found that repeal of the § 535.308 exemption would have only a minimal 

impact on the industry because of the narrow applicability of the exemption and, thus, the small 

number of agreements filed claiming the exemption. On December 9, 2009, the Commission’s 

Final Rule repealing § 535.308 was published in the Federal Register, 74 FR 65034. 

Petition of the National Customs Brokers and Forwarders Association of America, Inc. for 

Exemption from Mandatory Tariff Publication [Petition No. P1-08], 31 S.R.R 1124 

(January 5, 2010) 

On July 31, 2008, the National Customs Brokers and Forwarders Association of America, Inc. 

(NCBFAA) filed a petition requesting the Commission exercise its authority under 46 U.S.C. 

§ 40103 and issue an exemption for non-vessel-operating common carriers (NVOCCs) from the 

provisions of the Shipping Act of 1984 requiring them to publish and/or adhere to rate tariffs for 

ocean transportation in those instances where they have individually negotiated rates with their 

shipping customers and memorialized those rates in writing. Notice of the Petition was 

published on August 11, 2008 and comments on it were due by September 26, 2008. 73 FR 

46625-02 (August 11, 2008). 

NCBFAA’s proposal incorporated the following principles: the exemption is voluntary; the 

exemption would relate only to rates tariffs, not to rules tariffs; disputes relating to exempt 

contracts would be settled only under contract law; NVOCC Service Arrangements (NSAs), to 

the extent used, would continue to be filed with the Commission and NSA essential terms will 

continue to be published; exempt contracts would be memorialized in writing; the Commission 

would have access to documentation relating to exempt contracts; the exemption would not be 

construed to extend antitrust immunity to NVOCCs; and only NVOCCs that are licensed or 

registered ocean transportation intermediaries would be eligible to use the exemption. On 

December 24, 2009, NCBFAA filed a motion for leave to supplement the record and submit a 

verified statement on behalf of DJR Logistics, Inc. By order served January 5, 2010, the 

Commission granted NCBFAA’s motion, accepted the verified statement, and reopened the 

record for the limited purpose of receiving updated tariff cost information, and any replies 

thereto, from previous commenting parties of record by January 21, 2010. Comments in 

response to the Petition were filed by members of Congress; two Federal government agencies; 

OTIs; associations; consultants; tariff publishers; and VOCCs. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 42 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

After consideration of the Petition and all comments at a meeting on February 18, 2010, the 

Commission, meeting in open session voted by a 3-1 margin to instruct the staff to initiate a 

rulemaking to relieve licensed NVOCCs from the costs and burdens of tariff rate publication. 

The Commission specifically found that it was within its statutory authority and discretion under 

Section 16 of the Shipping Act to grant such an exemption with certain conditions, after having 

considered all the comments filed in support and in opposition to the Petition, as doing so would 

not result in substantial reduction in competition or be detrimental to commerce, consistent with 

the Act. See 46 U.S.C. § 40103(a). The Commission voted to exempt licensed NVOCCs by 

regulation from these requirements of the Act: the requirement in Section 8(a), codified at 46 

U.S.C. §§ 40501(a)-(c) that each common carrier keep open to public inspection in an automated 

tariff system tariffs showing all its rates; Section 8(b), codified at 46 U.S.C. § 40501(d)(time 

volume rates); Section 8(d), codified at 46 U.S.C. § 40501(e) (tariff rate increase may not be 

effective on less than 30 days' notice but decrease effective immediately); Section 8(e), codified 

at 46 U.S.C. § 40503 (carrier application to grant refunds); and Section 10(b)(2)(A)'s 

requirement of adhering to the published tariff rate, codified at 46 U.S.C. § 41104(2)(A). The 

Commission also determined to seek public comment on whether the regulation should also 

extend the exemption to the prohibitions of Section 10(b)(4), codified at 46 U.S.C. § 

41104(4)(prohibiting common carriers from unfair or unjustly discriminatory practices in 

services pursuant to a tariff), and Section 10(b)(8), codified at 46 U.S.C. § 41104(8)(prohibiting 

common carriers from undue or unreasonable preference or advantage or undue or unreasonable 

prejudice or disadvantage for tariff service). 

NVOCC Negotiated Rate Arrangements [Docket No. 10-03], 31 S.R.R. ____ (May 13, 2010) 

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

25150, Commission Docket 10-03. The proposed regulation would recognize NVOCC 

negotiated rate agreements (NRAs) and proposes defining that instrument as “a written and 

binding arrangement between a shipper and an eligible NVOCC to provide particular 

transportation service for a particular shipment at a particular rate prior to the receipt of the cargo 

by the common carrier or its agent (including originating carriers in the case of rates for through 

transportation).” The proposed regulation contemplates exempting licensed NVOCCs from the 

following requirements of the Shipping Act: the requirement in Section 8(a), codified at 46 

U.S.C. §§ 40501(a)-(c) that each common carrier keep open to public inspection in an automated 

tariff system tariffs showing all its rates; Section 8(b), codified at 46 U.S.C. § 40501(d)(time 

volume rates); Section 8(d), codified at 46 U.S.C. § 40501(e) (tariff rate increase may not be 

effective on less than 30 days' notice but decrease effective immediately); Section 8(e), codified 

at 46 U.S.C. § 40503 (carrier application to grant refunds); and Section 10(b)(2)(A)'s 

requirement of adhering to the published tariff rate, codified at 46 U.S.C. § 41104(2)(A). The 

Commission sought comment on whether the regulation should additionally specifically exempt 

a compliant NVOCC from the prohibitions of Section 10(b)(4), codified at 46 U.S.C. 

§ 41104(4)(prohibiting common carriers from unfair or unjustly discriminatory practices in 

service pursuant to a tariff), and Section 10(b)(8), codified at 46 U.S.C. § 41104(8)(prohibiting 

common carriers from undue or unreasonable preference or advantage or undue or unreasonable 

prejudice or disadvantage for tariff service). The Commission also requested comment on 

additional terms to be required in the NRA documentation, and on the usefulness of providing a 

specific set of "safe harbor" provisions in the regulation as to what further terms should be 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 43 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

included in an NRA or actions an NVOCC should take to ensure the NRA will fall within the 

exemption. Additionally, the Commission requested interested parties to submit comments on 

whether the exemption should be extended to foreign-based NVOCCs who are unlicensed but 

bonded pursuant to 46 C.F.R. § 515.21(a)(3). A public meeting was requested and held on May 

24, 2010. Written comments were received through June 4, 2010. This proceeding is pending 

issuance of a final rule by the Commission. 

(b) Decisions 

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

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

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

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

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

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

from or transporting cargo for the account of an ocean transportation intermediary (OTI) that did 

not have a tariff and bond as required by sections 8 and 19 of the Act. With regard to EuroUSA, 

the Administrative Law Judge (ALJ) approved a Settlement Agreement between EuroUSA and 

the Bureau of Enforcement (BOE) on October 9, 2009. With regard to Tober Group (Tober), the 

ALJ issued an Initial Decision (ID) in which he concluded that BOE did not prove that the 

unlicensed intermediaries with whom Tober did business operated as NVOCCs, and therefore 

Tober did not violate section 10(b)(11) of the Shipping Act. The ALJ also concluded that Tober 

violated section 10(b)(2)(A) of the Act by providing service in the liner trade that was not in 

accordance with the rates and charges in its published tariff, but did not assess a penalty for these 

violations. BOE filed exceptions to the ALJ’s ID, and the Commission’s decision is pending. 

Finally, with regard to Container Innovations, the ALJ concluded that it violated section 

10(b)(11) and should be subject to a civil penalty of $390,000 for 13 knowing and willful 

violations of the Shipping Act. The ALJ’s decision regarding Container Innovations became 

administratively final on January 7, 2010. A final decision is due February 28, 2011. 

In the Matter of the Lawfulness of Unlicensed Persons Acting as Agents for Licensed Ocean 

Transportation Intermediaries [Docket No. 06-08], 31 S.R.R. 1058 (November 6, 2009) 

In August 2006, Team Ocean Services, Inc. (Team Ocean) filed a petition for declaratory order 

seeking to have the Commission issue an order affirming that it is lawful for licensed OTIs to 

engage unlicensed persons to act as their agents to perform OTI services. On February 15, 2008, 

the Commission issued a declaratory order denying Team Ocean’s petition, concluding that only 

licensed persons are permitted to provide OTI services to the public. Landstar Express America 

sought review of the Commission’s declaratory order, and on June 26, 2009, the United States 

Court of Appeals for the District of Columbia Circuit issued a decision concluding that agents 

providing OTI services need not be licensed. Landstar Express America v. Federal Maritime 

Commission, 569 F. 3d 493 (D.C. Cir. 2009). In light of this conclusion, the court vacated the 

Commission’s declaratory order and remanded the matter to the Commission. On November 6, 

2009, the Commission issued an Order Granting Petition for Declaratory Order, in which it 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 44 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

concluded that it is lawful for a licensed OTI to engage an unlicensed person to act as its agent to 

perform OTI services on behalf of the disclosed licensed OTI. 

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

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

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

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

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

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

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

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

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

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

without providing proof of financial responsibility. The ALJ also found that on fourteen 

shipments, Cargo Express International Shipping, Inc. violated section 8(a) by operating as a 

common carrier without publishing tariffs showing all of its active rates and charges and violated 

section 19 by operating as an ocean transportation intermediary without obtaining a license and 

without providing proof of financial responsibility. The ALJ imposed civil penalties on both of 

these parties, and ordered them to cease and desist from violating the Shipping Act. The ALJ 

dismissed Bronx Barrels & Shipping Supplies Shipping Center, Inc. and Ainsley Lewis a.k.a. 

Jim Parks from the proceeding. On April 6, 2010, the Commission filed a notice indicating its 

intention to review the ALJ’s Initial Decision. The Commission’s final decision in this 

proceeding is due February 28, 2011. 

Anderson International Transport and Owen Anderson – Possible Violations of Sections 8(a) 

and 19 of the Shipping Act [Docket No. 07-02], 31 S.R.R. 1232 (February 23, 2010) 

This proceeding was instituted by Order of Investigation and Hearing served March 22, 2007, to 

investigate whether respondents violated sections 8, 19(a), and 19(b) of the Shipping Act and the 

Commission’s regulations at 46 C.F.R. Part 515 and Part 520. On August 28, 2009, the 

Administrative Law Judge issued an Initial Decision finding that respondents violated section 

19(a) of the Shipping Act by operating as an ocean transportation intermediary without obtaining 

a license, and also violated section 19(b) by operating as an ocean transportation intermediary 

without providing proof of financial responsibility. The ALJ ordered respondents to cease and 

desist from violating the Shipping Act. The ALJ did not impose a penalty, finding that the 

Bureau of Enforcement failed to introduce evidence regarding respondents’ ability to pay a civil 

penalty. On December 8, 2009, the Bureau of Enforcement filed a petition to reopen the 

proceeding for the purpose of taking further evidence regarding respondents’ ability to pay. The 

Commission granted this request and remanded the case to the ALJ for further consideration. On 

February 23, 2010, the ALJ issued an order on remand imposing a penalty on respondents. On 

March 9, 2010, the Commission filed a notice to review the ALJ’s decision, and on March 15, 

2010, the Bureau of Enforcement filed exceptions to the ALJ’s decision. The Commission’s 

final decision in this proceeding is due February 28, 2011. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 45 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Western Holding Group et al. v. Mayaguez Port Commission et al. [Docket No. 08-06] 

On November 17, 2008, Complainants filed a complaint with the Commission against the 

Mayaguez Port Commission, a public corporation of the Municipality of Mayaguez, and Holland 

Group Port Investment (Mayaguez), Inc., a for-profit marine terminal operator in Mayaguez, 

Puerto Rico, seeking inter alia reparations no less than $25,000,000. The Complainants alleged 

that Respondents violated section 10(d)(1)-(4) of the Shipping Act, 46 U.S.C. §§ 41102(c) and 

41106(1)-(3), by unreasonably terminating terminal lease agreement, unreasonably and 

unjustifiably refusing to negotiate with Complainants, unreasonably failing to establish, observe, 

and enforce just and reasonable regulations and practice, and other activities. 

On February 1, 2010, the ALJ issued an Initial Decision approving the Settlement Agreement 

between Complainants and Mayaguez Port Commission and dismissing the proceeding as to that 

Respondent. On March 4, 2010, the Initial Decision became administratively final. 

The proceeding between Complainants and Holland Group Port Investment remained before the 

ALJ. On September 20 2010, the ALJ issued an Initial Decision granting the remaining parties’ 

Joint Motion to Dismiss. On October 12, 2010, the parties filed a Joint Motion for Modification 

of Order. The proceeding is now before the Commission. The Commission’s Final Decision is 

due by March 30, 2011. 

Litigation 

The General Counsel represents the Commission in litigation before courts and other 

administrative agencies. Although the litigation work largely consists of representing the 

Commission upon petitions for review of its orders filed with the U.S. Courts of Appeals, the 

General Counsel also participates in actions for injunctions, enforcement of Commission orders, 

actions to collect civil penalties, and other cases where the Commission’s interest may be 

affected by litigation. 

The following is representative of matters litigated by the Office: 

Federal Maritime Commission v. All-In-One Shipping, Inc., et al., U.S. District Court for the 

Southern District of Florida, Case No. 06-60054 

On January 12, 2006, the Commission filed a Complaint for Injunctive Relief with the U.S. 

District Court for the Southern District of Florida to enjoin four household goods moving 

companies and three individuals from operating as NVOCCs in violation of the Shipping Act of 

1984 by accepting cargo for transportation, and for advertising for or soliciting cargo while 

operating as an ocean transportation intermediary without a valid license, bond or other security 

on file with the Commission. The District Court issued the requested preliminary injunction by 

order dated January 17, 2006. Specifically, the companies and individuals that are named and 

subject to the injunction are: All-In-One Shipping, Inc.; Around The World Shipping, Inc.; 

Boston Logistics Corp.; Global Direct Shipping; Daniel Cuadrado; Elizabeth F. Hudson; Joshua 

Morales. Injunctive relief remains in force pending conclusion of agency enforcement 

proceedings in FMC Docket No. 06-01. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 46 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

On August 16, 2010, the ALJ issued an Initial Decision in Docket No. 06-01 finding violations 

of the Shipping Act and imposing civil penalties on the corporate and individual parties. No 

parties filed exceptions to the Initial Decision. The Commission determined to review the Initial 

Decision, and its final decision is due by February 28, 2011. 

Natural Resources Defense Council, Inc. v. Federal Maritime Commission, U.S. District 

Court for the District of Columbia, Civil Action No. 1:09-cv-00935 

On May 19, 2009, the National Resources Defense Council, Inc. (NRDC) filed a complaint for 

declaratory and injunctive relief against the Commission for failing to produce records and 

denying it a full waiver of fees under the Freedom of Information Act (FOIA). An Assistant 

U.S. Attorney represented the Commission. An answer to the complaint was filed on July 9, 

2009. On September 28, 2009, NRDC filed its Motion for Summary Judgment on the merits of 

the case related fee waivers. On November 6, 2009, the Commission filed its Consolidated 

Memorandum in Opposition to NRDC’s Motion for Summary Judgment and in Support of its 

own Cross Motion for Summary Judgment. The NRDC filed its final brief on November 30, 

2009 and the Commission’s brief on the same issue was filed on December 18, 2009. As of June 

8, 2010, the presiding Judge had not ruled on the briefed issues in the case. Prior to any ruling 

by the presiding Judge, the parties amicably resolved the dispute. The Commission agreed to 

produce a limited pool of documents and pay attorney’s fees in exchange for dismissal of the 

case. After production of documents, and after the NRDC did not file any objection, the parties 

entered a stipulation of dismissal, and the case was terminated from the court’s docket. 

Legislative Activities 

The OGC represents the Commission’s interests in all matters before Congress. This includes 

preparing testimony for Commission officials, responding to Congressional requests for 

information, commenting on proposed legislation, and responding to the Office of Management 

and Budget (OMB) requests for views on proposed bills and testimony. 

During fiscal year 2010, 110 bills, proposals, and congressional inquiries were referred to the 

OGC for review or comment. OGC prepared and coordinated testimony for the agency’s fiscal 

year 2011 budget authorization hearing and a hearing involving the capacity of vessels to meet 

U.S. import/export requirements. Both hearings were held before the U.S. House of 

Representatives’ Committee on Transportation and Infrastructure’s Subcommittee on Coast 

Guard and Maritime Transportation. In addition, OGC helped prepare three nominees for 

confirmation hearings before the Senate Committee on Commerce, Science and Transportation. 

On September 22, 2010, H.R. 6167, the Shipping Act of 2010 was introduced. This proposed 

legislation amends title 46 of the United States Code, to increase competition and improve 

movement of goods by limiting antitrust immunity to certain ocean common carrier agreements, 

increase penalties for Shipping Act violations, require Commission approval before an 

agreement becomes effective, establish an ocean shipping advisory committee, establish a 

dispute resolution process at the Commission, expand prohibitions on ocean transportation 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 47 
 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

practices, and require the Federal Maritime Commission to maintain an Office of Dispute 

Resolution and Customer Advocate. 

In fiscal years 2011 and 2012, OGC will continue to lead in providing assistance and technical 

advice to Congress regarding issues for possible legislative consideration. The Office may also 

recommend legislative amendments as necessary to ensure uniformity with other Federal 

initiatives to promote efficient and secure flow of ocean transportation. 

Foreign Shipping Restrictions and International Affairs 

The OGC is responsible for the administration of the Commission's international affairs program. 

The OGC monitors potentially restrictive foreign shipping laws and practices, and makes 

recommendations to the Commission for investigating and addressing such practices. The 

Commission has the authority to address restrictive foreign shipping practices under section 19 

of the 1920 Act and the Foreign Shipping Practices Act. Section 19 empowers the Commission 

to make rules and regulations governing shipping in the foreign trade to adjust or meet 

conditions unfavorable to shipping. The FSPA directs the Commission to address adverse 

conditions that affect U.S. carriers in foreign trade and that do not exist for foreign carriers in the 

U.S. 

In fiscal year 2010, the Commission continued to monitor potentially restrictive shipping 

practices of the Government of Japan, including the effects of amendments to the Port 

Transportation Business Law enacted in 2000 and 2005. The Commission continued to receive 

and evaluate semi-annual reports from United States-flag and Japanese-flag vessels operating in 

the trades with Japan pursuant to its proceeding in Docket No. 96-20, Port Restrictions and 

Requirements in the United States/Japan Trade. 

The OGC also pursued informally several matters that involved potentially restrictive foreign 

practices including new legislation, new interpretations of existing legislation, new regulations of 

non-domestic carriers’ terminal handling charges and implementation by the People’s Republic 

of China of new requirements on carriers to file tariff and service contract rates with a quasigovernmental entity and for that entity to establish a freight index based upon information 

received. OGC served as a technical advisor to the U.S. delegation regarding rate filing at the 

quasi-governmental entity and related issues at the 4th U.S. - People’s Republic of China 

Consultations on the Maritime Bilateral Agreement held in Dalian, China in October 2010. The 

OGC also presented at a maritime experts group workshop relating to non-ratemaking 

agreements among vessel-operating common carriers for the purpose of discussion on behalf of 

the United States’ delegation at the Asian-Pacific Economic Cooperation conference in Japan in 

October 2010. 

Another responsibility of the OGC is the classification of controlled carriers subject to section 9 

of the Shipping Act. Common carriers that are owned or controlled by foreign governments are 

required to adhere to certain requirements under the Act, and their rates are subject to 

Commission review. The OGC investigates and makes appropriate recommendations to the 

Commission regarding the status of potential controlled carriers. The OGC, in conjunction with 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 48 
 

 

 

 

 

Federal Maritime Commission 

other Commission components, also monitors the activities of controlled carriers. In fiscal year 

2010, a Chinese carrier was deemed a controlled carrier and added to the current list of 

controlled carriers. 

The OGC continues to take the lead in accomplishing the agency's performance goals relating to 

eliminating restrictions that unjustly disadvantage U.S. interests. OGC monitors foreign laws 

and practices to determine whether there are any unjust non-market barriers to trade. Where 

appropriate, the OGC will recommend Commission action. 

Designated Agency Ethics Official 

The Ethics Official is designated by the Chairman and located in the OGC. The position is 

performed as a collateral duty by the attorney designated as Ethics Official. The Commission’s 

Ethics Official is responsible for administering public and confidential financial disclosure 

systems in order to prevent conflicts of interest from arising in the execution of the agency’s 

regulatory functions. The Ethics Official also conducts annual training and offers day-to-day 

advice and guidance to ensure compliance with the standards of ethical conduct that apply to 

Executive Branch officials. 

Federal Maritime Commission 

Formal Proceedings 

Ethics 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Ethics 0.00 0.00 0.00 

Cost: Salaries & Benefits $0.00 $0.00 $0.00 

Non-Personnel Expenses $1,123.59 $3,730.43 $3,703.94 

Total Cost $1,123.59 $3,730.43 $3,703.94 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$740.79 $2,963.15 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 49 
 

 

 

Federal Maritime Commission 

Office of Administrative Law Judges (OALJ)
 

Administrative Law Judges regulate the course of proceedings, conduct hearings, approve 

settlements, and render decisions in adjudicatory proceedings held after receipt of a private 

complaint or when instituted by the Commission. ALJs have authority to administer oaths and 

affirmations; issue subpoenas; rule upon motions and offers of proof; receive evidence; authorize 

depositions; regulate the course of hearings; hold pre-hearing conferences for the settlement or 

simplification of the issues involved; refer matters to mediation when appropriate; dispose of 

procedural requests; act as Settlement Judges in particular cases; and take any other action 

authorized by agency rule or the Administrative Procedure Act. 

Federal Maritime Commission 

Formal Proceedings 

Office of Administrative Law Judges 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Administrative Law Judges 2.73 3.00 3.00 

Cost: Salaries & Benefits $433,760.16 $483,753.45 $495,439.03 

Non-Personnel Expenses $126,589.58 $141,408.71 $139,710.78 

Total Cost $560,349.74 $625,162.16 $635,149.81 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 3.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $635,149.81 

The case load of the Office is governed by the number of complaints and applications filed the 

number of formal proceedings instituted by the Commission on its own motion, and other 

matters assigned in furtherance of the Commission's regulatory functions. Proceedings which 

come before the Office include, but are not limited to, the adjudication of discriminatory or 

unfair and unreasonable practices between various parties subject to the shipping acts, and 

adjudication of shipper complaints. ALJs also can process special docket applications on an asneeded basis. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 50 
 

 

 

 

 

Federal Maritime Commission 

At the beginning of fiscal year 2010, twelve formal proceedings were counted as pending (on 

hand) before the OALJ (06-01, 06-06, 06-09, 07-01, 07-10, 08-03, 08-04, 08-06, 09-01, 09-03, 

1896(F), and 1898(F)). During the year, nine new formal proceedings were added (09-07, 09-08, 

10-01, 10-02, 10-05, 10-06, 10-07, 10-08, and 10-09) and one formal proceeding was remanded 

by the Commission (07-02). OALJ issued initial decisions in three contested proceedings (06­

01, 06-06 (two IDs on the merits), and 06-09), a decision on civil penalty in one proceeding (07­

02), dismissed some respondents in one proceeding (10-01), approved settlements in five 

proceedings (06-06 (one settlement), 07-10, 08-06, 09-03, 10-02, and 10-07 (partial settlement)), 

dismissed some claims and granted leave to appeal an issue in one proceeding (09-01), and 

referred one motion to approve a settlement to the Commission (09-07). 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 51 
 

 

 

 

 

Federal Maritime Commission 

Equal Employment Opportunity Program (EEO) 

The Commission’s Office of Equal Employment Opportunity Program (EEO) follows Federal 

EEO and personnel management laws, concepts, procedures and regulations to develop, 

implement and manage a comprehensive program of equal employment opportunity. The 

program is statutorily mandated with required activities in complaints processing, adjudication, 

affirmative employment program planning, workforce diversity management, special emphasis 

programs, community outreach, monitoring and evaluation. 

Federal Maritime Commission 

Equal Employment Opportunity Program 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Headquarters 1.00 1.00 1.00 

Cost: Salaries & Benefits $160,564.27 $157,917.00 $158,052.57 

Non-Personnel Expenses $50,846.84 $68,914.27 $67,335.13 

Total Cost $211,411.11 $226,831.27 $225,387.70 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 1.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $225,387.70 

The Chairman is responsible for ensuring equal opportunity at the Commission. The Chairman 

has delegated this authority to the Director of Equal Employment Opportunity. Operational 

responsibility for compliance with EEO policies and programs lies with the Commission's frontline managers. The Director of EEO works independently under the direction of the Chairman to 

provide advice to senior staff and management in improving and carrying out its policies and 

program of non-discrimination, workforce diversity and affirmative employment program 

planning. The Director arranges for EEO counseling or ADR for employees who raise 

allegations of discrimination; provides for the investigation, hearing, fact-finding, adjustment, or 

early resolution of such complaints of discrimination; accepts or rejects formal complaints of 

discrimination; prepares and issues decisions for resolution of formal complaints; and monitors 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 52 
 

 

 

 

 

 

Federal Maritime Commission 

and evaluates the program’s impact and effectiveness. In addition, the Director represents the 

agency on several intergovernmental committees, coordinates all affirmative program planning 

efforts, directs programs of special emphasis, coordinates the activities of the Selective 

Placement and Federal Equal Opportunity Recruitment Coordinators, and also supervises two 

collaterally-assigned EEO counselors. 

The Office works closely with senior management and with the Commission's OHR to: (1) 

monitor affirmative employment programs; (2) expand outreach and recruitment initiatives; (3) 

improve the representation, career development and retention of women, minorities and persons 

with disabilities; (4) provide adequate career counseling; (5) facilitate early resolution of 

employment-related problems; and (6) develop program plans and progress reports. 

Significant accomplishments include the following: (1) coordinated “No FEAR Act” 

(Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002) training for 

all current and new FMC employees; (2) provided EEO and non-EEO related guidance to 

Commissioners, managers, supervisors and employees in addressing issues that arose; (3) 

collaborated with managers and supervisors in striving to maintain and effectively manage a 

diverse workforce; (4) continued to administer an effective EEO complaint process that strives 

to attempt resolution of issues informally through collaborative ADR techniques at the lowest 

possible level; (5) held commemorative programs for all FMC employees for National Black 

History Month, Women’s History Month, and Asian Pacific Heritage Month while also 

recognizing Hispanic Heritage Month, Native American Indian Heritage Month, and Gay and 

Lesbian Pride Month through electronic announcement; (6) prepared all required EEO and 

affirmative employment program accomplishment reports and plans; (7) collaborated with Equal 

Employment Opportunity Commission (EEOC) management staff to discuss more effective 

approaches for meeting the Management Directive 715 (MD-715) goals and objectives; and (8) 

continued to administer the EEO process in support of the goal of achieving and maintaining a 

model work environment in accordance with Federal EEO policy and affirmative employment 

goals and objectives. 

During fiscal years 2011 and 2012, the Office will continue all existing programs and initiate 

additional activities designed to increase an understanding of EEO concepts and principles, 

including monitoring workforce diversity, outreach, retention, career development initiatives, 

administering a barrier analysis as part of MD-715 requirements, and providing interactive 

mediation training for all interested FMC employees. MD-715 is the policy guidance which the 

Equal Employment Opportunity Commission provides to Federal agencies for their use in 

establishing and maintaining effective programs of equal employment opportunity under Section 

717 of Title VII of the Civil Rights Act of 1964 (Title VII), as amended, 42 U.S.C. § 2000e et 

seq., and Section 501 of the Rehabilitation Act of 1973 (Rehabilitation Act), as amended, 29 

U.S.C. § 791 et seq. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 53 
 

 

 

 

 

 

 

Federal Maritime Commission 

Inspector General Program (OIG)
 

The Office of Inspector General (OIG) operates pursuant to the Inspector General Act of 1978 

(1978 Act) (5 U.S.C. App. § 3), as amended in 1988, and by the Inspector General Reform Act 

of 2008 (Reform Act) (5 U.S.C. app. § 8G). The 1988 amendments created additional statutory 

Offices of Inspector General at various designated Federal entities, including the FMC. The 

Reform Act further enhanced the independence of Office of Inspectors General by adding 

Inspector General (IG) compensation, staffing and removal provisions. 

The purpose of the 1978 Act, as amended, and as applicable to the FMC, is to create an 

independent and objective unit to conduct audits; review operations and programs; investigate 

possible fraud, waste and mismanagement of resources; and promote economy, efficiency and 

effectiveness in programs and operations administered by the FMC. 

The OIG is staffed by an IG, an Assistant Inspector General for Audit and an OIG Counsel / 

Chief Investigator. 

Federal Maritime Commission 

Inspector General Program 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Inspector General 2.92 3.00 3.00 

Cost: Salaries & Benefits $458,041.22 $511,269.98 $534,740.58 

Non-Personnel Expenses $253,564.65 $259,337.33 $264,668.38 

Total Cost $711,605.87 $770,607.31 $799,408.96 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 3.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $799,408.96 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 54 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

The IG works independently under the general supervision of the Chairman and Commissioners 

at the FMC. The IG does not report to, and is not subject to supervision by, any other officer or 

employee of the FMC. The OIG has Memorandums of Understanding with Office of Inspectors 

General at the U.S. Social Security Administration for investigative assistance and the Federal 

Trade Commission for audit quality assurance support. In addition, the Office utilizes the 

expertise of private sector accountants and information security analysts to assist in performing 

specialized audits and reviews. 

During fiscal year 2010, the OIG issued an audit of the FMC’s fiscal year 2009 financial 

statements and a companion report to management on financial-related findings and 

recommendations resulting from the audit. The OIG also issued an evaluation of information 

security pursuant to the Federal Information Security Management Act (FISMA), an audit of 

document scanning services, a review of contract management of one large information 

technology contract, a review of agency computation of user fees, a “capping report” (i.e., 

summary report) on agency time and attendance policies and procedures, and an evaluation of 

agency IT Helpdesk services. The OIG began fieldwork on the fiscal year 2010 financial 

statement audit and the annual information security evaluation pursuant to FISMA. Finally, the 

OIG began a review of the FMC’s Office of CADRS. 

The OIG investigations unit received 62 complaints. We forwarded 43 complaints to the 

appropriate FMC program area for disposition and assigned 19 complaints to OIG staff or 

referred them to other Federal OIGs or programs with jurisdiction over the subject matter of the 

complaint. The OIG responded to the two Freedom of Information Act requests, one of which 

included responsive documents with suggested redacted material that was provided to the FMC 

FOIA officer. 

In addition to these audit and investigative activities and outcomes, the OIG revised Commission 

Order 106, Audit Follow up, to reflect statutory changes in the Inspector General Reform Act of 

2008 and the agency’s fiscal year 2010 reorganization. The OIG signed a Memorandum of 

Understanding with a sister OIG to provide it with counsel support, developed a new OIG poster 

to display on agency billboards, revised the OIG’s informational brochure provided to new hires 

and posted it to the OIG’s webpage and, together with the agency’s new Managing Director, 

instituted quarterly meetings to enhance communication and to discuss pending audits and issues 

of common concern. 

The OIG responded to two OIG community-wide requests for information from Congress: (1) 

the House Committee on Oversight and Government Reform, Ranking Minority Member’s 

request regarding open (unimplemented) OIG recommendations, and (2) Senators Grassley and 

Coburn’s joint request pertaining to matters of OIG independence. 

OIG staff participated in several activities associated with the Council of Inspectors General on 

Integrity and Efficiency (CIGIE), including actively serving on the (1) Legislation Committee 

where IG staff reviewed and commented on several legislative initiatives affecting the OIG 

community; and (2) Integrity Committee, where staff reviewed allegations of administrative noncriminal) misconduct against inspectors general and designated senior staff members of the OIG. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 55 
 

 

 

 

 

 

 

 

Federal Maritime Commission 

OIG staff also served on the Improper Payment / Forensic Accounting and Auditing Workgroup 

– which provided recommendations to the Director of the Office of Management and Budget 

(OMB) and the Secretary of the Treasury on actions that agencies should take, or controls they 

should enhance or implement, to more effectively prevent, detect and correct improper 

payments. 

The OIG Counsel/Chief Investigator participated in the Council of Counsels to the Inspector 

General (CCIG) activities. The CCIG consists of senior counsel from agency OIGs who discuss 

various legal issues that affect the OIG community. Counsel also served on a CIGIE review of 

hotline best practices used by OIGs. Based, in part, on this participation, the OIG implemented a 

new hotline tracking system. 

Finally, the OIG underwent a peer review of its audit quality assurance program. The objectives 

of the review were to determine whether an effective quality control system has been established 

within the OIG and if policies, procedures and applicable government auditing standards are 

being followed. The review resulted in a “clean” opinion. 

During fiscal years 2011 and 2012, the OIG will continue to place a high priority on audits and 

reviews with the objective of improving agency programs and operations. The OIG will 

complete statutorily-required reviews to include separate audits of the FMC’s fiscal year 2011 

and fiscal year 2012 financial statements and an evaluation of the agency’s information security 

program and privacy assurance controls, as required by the Federal Information Security 

Management Act, continue site visits to FMC area offices to better understand regulatory and 

programmatic issues and concerns from a field office perspective and continue to focus on 

reviews of FMC mission-based programs. 

The OIG will continue to actively participate in IG community activities and maintain 

membership in CIGIE, the CCIG and the Federal Audit Executive Council (FAEC) and to work 

with the OMB, CIGIE, CCIG and FAEC on joint projects which affect the IG community. The 

Office will also continue to keep the Chairman, Commissioners, OMB and the Congress fully 

informed regarding its audit and investigative activities. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 56 
 

 

Federal Maritime Commission 

Operational and Administrative Program
 

Federal Maritime Commission 

Operational and Administrative 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Managing Director 8.92 9.25 9.00 

Bureau of Trade Analysis 18.69 17.00 17.00 

Bureau of Certification and Licensing 17.57 17.00 17.00 

Bureau of Enforcement 10.69 10.00 10.00 

Area Representatives 8.04 9.00 9.00 

Office of Information Technology 6.93 8.50 9.00 

Office of Human Resources 4.56 5.40 5.40 

Office of Budget and Finance 5.00 5.00 5.00 

Office of Management Services 5.39 5.25 5.00 

Total FTEs 85.79 86.40 86.40 

Cost: Salaries & Benefits $11,097,555.17 $11,374,611.57 $11,603,050.40 

Non-Personnel Expenses $4,767,729.40 $4,854,838.90 $5,016,702.25 

Total Cost $15,865,284.57 $16,229,450.47 $16,619,752.65 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

15.83 70.57 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$2,980,991.63 $13,638,761.02 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 57 
 

 

 

 

 

 

 

Federal Maritime Commission 

Office of the Managing Director (OMD)
 

The Managing Director is the Commission’s Chief Operating Officer and is responsible for the 

management, direction and coordination of the Commission’s operating programs and 

administrative functions. The following agency components report directly to the Managing 

Director: Bureau of Certification and Licensing, Bureau of Enforcement, Bureau of Trade 

Analysis, ARs, Office of Budget and Finance, Office of Human Resources, Office of 

Information Technology, and Office of Management Services. The Managing Director also 

provides administrative direction to the Offices of the General Counsel, Secretary, CADRS and 

ALJ, as well as administrative guidance to the Offices of EEO and IG. He works closely with 

the Chairman and the PIO to develop the Commission’s strategic plan. 

The Managing Director serves as the agency’s Chief Acquisition Officer, Senior Agency Official 

for Privacy, Audit Follow-up and Management (Internal) Controls Official, Forms Control 

Officer, and acts as the Commission’s representative to the Small Agency Council (SAC). As 

the Agency’s CFO, the Managing Director provides program oversight for the agency’s budget 

and financial management responsibilities, and ensures agency compliance with the Financial 

Integrity Act, the Antideficiency Act, and the Debt Collection Improvement Act (DCIA) of 

1996. The Deputy Managing Director is the Commission’s Competition Advocate. 

Office staff directly coordinates activities of the ARs and provide oversight, coordination, 

direction and monitoring of Commission investigative activities. The latter responsibility 

requires extensive coordination among ARs and the Bureau of Enforcement, determining 

investigative priorities and goals. 

In managing the day-to-day operations of the Commission, the OMD provides direction and 

coordination among Commission administrative and program components to assure synergism 

and cohesive efforts to achieve the Commission’s strategic goals. The OMD initiates 

recommendations for long-range plans, new or revised policies and standards, and rules and 

regulations, while issuing internal directives to Commission staff. 

During fiscal year 2010, the OMD initiated an effort to streamline the licensing process. 

Significant improvement has been attained, and goals have been appropriately adjusted in the 

Commission’s strategic plan, reflecting the ability to review license applications much more 

quickly. The OMD also played a significant role in the Commission’s determination to provide 

economic relief to NVOCCs from the costs and burdens of publishing their rates in publicly 

accessible tariffs, while at the same time increasing public access to tariff provisions generally. 

Other significant accomplishments included participation in the planning of, initiation and 

pursuit of Fact Finding Investigation No. 26, Vessel Capacity and Equipment Availability in the 

United States Export and Import Liner Trades, as well as Fact Finding Investigation No. 27, 

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

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

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 58 
 

 

 

 

 

 

Federal Maritime Commission 

During fiscal year 2010, the OMD guided the agency’s continuing efforts to enhance its IT 

program, emphasizing the development of efforts to improve efficiency through the use of 

information technologies. With the CIO, OIT and the Commission’s operating programs 

working closely together, greater emphasis was placed on the ultimate impact of IT initiatives on 

Commission operations. 

Federal Maritime Commission 

Operational and Administrative 

Office of the Managing Director 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Managing Director 8.92 9.25 9.00 

Cost: Salaries & Benefits $1,273,448.62 $1,424,043.93 $1,388,953.95 

Non-Personnel Expenses $580,998.75 $649,512.44 $669,129.12 

Total Cost $1,854,447.37 $2,073,556.37 $2,058,083.07 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.58 7.42 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$361,307.92 $1,696,775.15 

The OMD’s key objectives for fiscal years 2011 and 2012 include: (1) increasing the impact and 

availability of ARs in providing assistance to importers and exporters; (2) overall modernization 

of technology to enhance the efficiency of Commission operations, including implementation of 

an Enterprise Content Management Architecture system; (3) implementing the agency’s Human 

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

highly skilled personnel; (4) implementing enhanced dispute resolution mechanisms to quickly 

address industry disputes; (5) continuing to refine and enhance agency administrative programs 

and operations, including by reviewing, developing and/or updating internal directives and 

Standard Operating Procedures; (6) developing a revised Commission strategic plan to provide a 

vision and direction for future Commission activities and focusing Commission operations on 

facilitating the growth of imports and exports; and (7) reviewing and updating Commission 

regulations governing OTIs and PVOs, with the former focusing on a means of reducing 

consumer fraud. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 59 
 

 

Federal Maritime Commission 

Area Representatives (ARs)
 

The Commission’s ARs act as liaisons with the shipping industry at a local level and as a 

resource to all Bureaus and Offices of the Commission. The Commission maintains a presence 

in Los Angeles, South Florida, New Orleans, New York, Houston and Seattle through ARs based 

in each of those cities. These representatives also serve other major port cities and transportation 

centers within their respective areas. The ARs represent the Commission within their 

jurisdictions, resolve complaints and issues between parties involved in international oceanborne 

shipping (often coordinating with CADRS), investigate alleged violations of the shipping 

statutes, and act as a liaison to the shipping public, providing information to the maritime 

industry while acting as an intelligence resource to Commission headquarters. They provide 

advice and guidance to the shipping public, collect and analyze information of regulatory 

significance, and assess industry conditions. The ARs frequently, cooperate and coordinate with 

other governmental agencies and departments, both federal, state and municipal, providing 

regulatory information and relaying Commission policy to the shipping industry and the public. 

The ARs communicate to the public through outreach activities such as seminars, participating in 

various conferences and trade shows, making presentations, and through various local 

community contacts. 

Federal Maritime Commission 

Operational and Administrative 

Area Representatives 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Area Representatives 8.04 9.00 9.00 

Cost: Salaries & Benefits $1,217,011.64 $1,305,785.43 $1,339,158.87 

Non-Personnel Expenses $577,182.15 $462,047.18 $469,792.87 

Total Cost $1,794,193.79 $1,767,832.61 $1,808,951.74 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.53 7.47 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$307,521.80 $1,501,429.94 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 60 
 

 

 

 

 

 

Federal Maritime Commission 

In fiscal year 2010, hundreds of informal complaints were handled by the ARs. These 

complaints often involved unlawful activity. Where possible, compliance was achieved 

informally. In other instances, opening cases was warranted and the ARs conducted thorough 

investigations to determine the extent of unlawful activity. The ARs conducted several 

investigations in 2010 of unlawful shipping practices by major ocean carriers and NVOCCs that 

were referred to the Bureau of Enforcement for action. Investigative activity by ARs helps to 

ensure fair competition in the trades to and from the U.S. 

The ARs were instrumental in the publication of public service announcements for each major 

port area in fiscal year 2010, warning consumers against the use of unlicensed OTIs. The ARs 

worked with the OMD in selecting of appropriate local publications, including those that would 

reach various ethnic communities that experience has shown are particularly vulnerable to 

fraudulent type of activity by unlicensed entities. These warnings saved many from potentially 

losing their possessions. They resulted in numerous inquiries and reports to the ARs regarding 

licensed and unlicensed OTI activity and, consequently appeared to reduce the volume of 

complaints resulting from activities of unlicensed entities. 

In fiscal year 2010, South Florida ARs, with the assistance of the BCL, made presentations on 

OTI licensing requirements and compliance for recently licensed companies, current applicants 

and persons interested in becoming licensed, to audiences in Florida. ARs also worked closely 

with a number of law enforcement agencies, and briefed or addressed key officials of the New 

York City Police Department, New Jersey State Police, and Houston Police Department, as well 

as the Association of Ship Brokers and Agents, Steering Committee of Sea Cargo Americas, 

University of Miami School of Law, International Cargo Committee of the Greater Miami 

Chamber of Commerce, Columbia River Customs House Brokers and Freight Forwarders, 

National Defense Transportation Association, and U.S. Customs and Border Patrol 

. 

In fiscal year 2010, the South Florida ARs provided valuable expertise and guidance about 

shipping customs and documentation, assisting in an investigation by the Export-Import Bank of 

the United States (Ex-Im Bank) and the Department of Justice that resulted in a guilty plea for a 

conspiracy to defraud the Ex-Im Bank of approximately $854,000. 

The ARs participated in task forces and initiatives sponsored by local law enforcement agencies, 

the U.S. Department of Justice, the Department of Homeland Security, through Customs and 

Border Patrol and Immigration and Customs Enforcement, and the Department of Commerce. 

This participation facilitates sharing of information on illegal activities. 

ARs also provided valuable assistance in Commission Fact-Finding Investigation No. 26, Vessel 

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

Fact-Finding Investigation No. 27, Potentially Unlawful, Unfair or Deceptive Ocean 

Transportation Practices Related to the Movement of Household Goods or Personal Property in 

U.S.-Foreign Oceanborne Trades. In each of those proceedings, ARs assisted the fact finding 

officer in arranging for the appearance of impacted witnesses, answering inquiries from shipping 

industry participants, and, through OMD, advising the Fact Finding Officers with respect to the 

conduct of the proceedings. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 61 
 

 

Federal Maritime Commission 

In fiscal years 2011 and 2012, through the ARs, OMD will use the investigative, dispute 

resolution, liaison and outreach skills of the ARs and their contacts in various areas to provide 

education and assistance to the shipping public, facilitate the transportation of cargo in the 

foreign trades of the United States, and to investigate unlawful practices in the marketplace. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 62 
 

 

 

 

 

Federal Maritime Commission 

Bureau of Trade Analysis (BTA)
 

Federal Maritime Commission 

Operational and Administrative 

Bureau of Trade Analysis 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Director 4.22 4.00 4.00 

OSCT 5.43 5.00 5.00 

OECA 5.04 4.00 4.00 

Agreements 4.00 4.00 4.00 

Total FTEs 18.69 17.00 17.00 

Cost: Salaries & Benefits $2,312,891.51 $2,123,092.47 $2,184,034.91 

Non-Personnel Expenses $842,032.90 $766,862.20 $769,897.45 

Total Cost $3,154,924.41 $2,889,954.67 $2,953,932.36 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

7.84 9.16 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$1,280,849.45 $1,673,082.91 

BTA reviews agreements and monitors the concerted activities of ocean common carriers and 

marine terminal operators under the standards of the Shipping Act of 1984. The Bureau also 

reviews and analyzes service contracts, monitors rates of government owned controlled carriers, 

reviews carrier published tariff systems under the accessibility and accuracy standards of the 

Shipping Act of 1984 and responds to inquiries or issues that arise concerning service contracts 

or tariffs. The Bureau also is responsible for competition oversight and market analysis, focusing 

on activity that is substantially anti-competitive under the standards of sections of 6(g) of the 

Shipping Act of 1984. BTA strives to be an expert organization on the economics of 

international liner shipping and maritime agreements, especially with respect to issues of 

competition and unfair trade practices as they may affect the interests of the shipping public and 

U.S. international trade according to the Foreign Shipping Practices Act of 1988 and Section 19 

of the Merchant Marine Act. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 63 
 

 

 

 

Federal Maritime Commission 

Federal Maritime Commission 

Bureau of Trade Analysis 

Office of the Director 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Director 4.22 4.00 4.00 

Cost: Salaries & Benefits $724,520.51 $612,110.12 $614,413.66 

Non-Personnel Expenses $842,032.90 $766,862.20 $769,897.45 

Total Cost $1,566,553.41 $1,378,972.32 $1,384,311.11 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.67 2.33 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$577,949.89 $806,361.22 

As part of these responsibilities, BTA plans, develops, and administers the following activities: 

(1) monitoring general trade conditions and economic developments in liner shipping; 

(2) overseeing individual and concerted carrier and MTO activity; (3) developing economic 

studies and analyses in support of the Commission's regulatory responsibilities; (4) processing 

and analyzing carrier and marine terminal agreements; (5) providing expert economic testimony 

and support in formal proceedings, particularly regarding unfair foreign shipping practices; 

(6) processing, reviewing, and monitoring confidential service contracts and amendments (filed 

by ocean common carriers, conferences, and agreements), and NVOCC service arrangements; 

(7) reviewing requests to correct clerical or administrative errors in service contracts; (8) 

ensuring that statements of certain essential terms associated with service contracts are published 

in tariffs and made available to the public; (9) auditing tariff publishing systems to ensure that 

tariffs are accessible and accurate; (10) processing FMC-1 registration forms submitted by 

carriers and conferences and posting and updating the location of carrier tariffs on the 

Commission’s website; (11) acting on special permission applications to deviate from tariff 

publishing rules; (12) monitoring the activities of state-controlled carriers; and (13) supporting 

other Commission components with regard to the Commission’s regulatory requirements. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 64 
 

 

 

 

 

ur ca year t re were ser ce contracts contract am ents 

 

 

Federal Maritime Commission 

The three operating offices under the supervision of the Bureau Director are: the Office of 

Service Contracts and Tariffs (OSCT), the Office of Economics and Competition Analysis 

(OECA), and the Office of Agreements (OAGR), 

Office of Service Contracts and Tariffs 

OSCT oversees the process by which service contracts between shippers and carriers are filed 

with the Commission. Under service contracts, shippers make a commitment to provide a certain 

volume or portion of cargo over a fixed period of time, and carriers commit to a specified rate 

and a defined service level. These contracts are filed confidentially with the Commission in the 

automated SERVCON system. In January 2005, the Commission permitted non-vessel operating 

common carriers (NVOCCs) to enter into Negotiated Service Arrangements (NSAs) with their 

shipper customers. NSAs are also filed in the SERVCON system. Additionally, OSCT is 

responsible for maintaining an up-to-date electronic listing of tariff locations where carriers 

publish their publicly-available rates for cargo carriage. 

D ing fis l 2010, he 45,342 vi and 350,310 endm Federal Maritime Commission 

Bureau of Trade Analysis 

Office of Service Contracts and Tariffs (OSCT) 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: OSCT 5.43 5.00 5.00 

Cost: Salaries & Benefits $525,266.36 $564,429.48 $568,453.80 

Non-Personnel Expenses $0.00 $0.00 $0.00 

Total Cost $525,266.36 $564,429.48 $568,453.80 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.48 3.52 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$68,214.46 $500,239.34 

filed into the SERVCON system. OSCT also processed 1,493 original NSAs and 3,624 

amendments filed by 69 NVOCCs. In fiscal year 2010, OSCT received, processed and reviewed 

1,329 Form FMC-1 filings, making the locations of those tariffs available to the public through 

the FMC website. OSCT also posted 4,867 active/current tariff locations to the agency’s website. 

The Commission issued a Notice of Proposed Rulemaking (NPRM) in April 2010 which would 

provide NVOCC’s with the option to “opt out” of having to file rate tariffs. They will, however, 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 65 
 

 

 

 

 

Federal Maritime Commission 

still be required to keep on file Negotiated Rate Agreements (NRAs) which must be 

memorialized in writing. Additionally, they will be required to maintain a rules tariff which must 

be made available free of charge. We expect that, should this proposed rule go into effect, most 

of the NVOCCs will take advantage of this opportunity, thereby significantly reducing the 

number of rate tariffs that will have to be checked to ensure compliance with all applicable 

regulations. 

Despite the NPRM releasing NVOCCs of the requirement to make available rate tariff locations 

through the Commission, OSCT does not predict a significant decrease in its work load through 

2011 and 2012. NVOCCs will be required to publish, and OSCT will need to verify, the rules 

tariffs that will continue to be required under FMC regulations. Further, the continued entrance 

and exit of various OTIs to and from the market will require follow-up on the part of OSCT staff 

to ensure an accurate listing of tariff publication locations on the Commission’s website. 

Office of Economics and Competition Analysis 

OECA prepares studies and profiles of major trades, reviews monitoring reports, prepares 

economic analyses and agreement/carrier profiles, and undertakes special projects to identify and 

track relevant competitive and economic activity in major U.S. trade lanes. 

Aside from the ongoing analysis of incoming agreements and the development of trade profiles, 

Federal Maritime Commission 

Bureau of Trade Analysis 

Office of Economics and Competition Analysis (OECA) 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: OECA 5.04 4.00 4.00 

Cost: Salaries & Benefits $631,487.11 $509,238.55 $532,413.90 

Non-Personnel Expenses $0.00 $0.00 $0.00 

Total Cost $631,487.11 $509,238.55 $532,413.90 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

3.00 2.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$319,448.34 $212,965.56 

OECA receives and reviews minutes of meetings and reports filed by parties to agreements that 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 66 
 

 

 

 

 

 

 

Federal Maritime Commission 

are classified as potentially anti-competitive, such as agreements that contain authority to discuss 

and agree on rates, service contracts, the pooling of cargo or revenue, and/or capacity 

rationalization. During the fiscal year, OECA received 963 sets of minutes, 318 monitoring 

reports and related reports, 135 voluntary service contract guidelines, and three applications for 

waivers to the minutes and/or monitoring report filing requirements. 

In fiscal year 2010, OECA administered its agreement oversight activities relating to ocean 

common carriers and marine terminal operators and prepared various reports and analyses. These 

included: (1) participating in the investigatory team, and assisting in the preparation of reports 

and recommendations in Fact Finding Investigation No. 26, Vessel Capacity and Equipment 

Availability in the United States Export and Import Liner Trades; (2) providing assistance with 

Commission testimony for a Congressional hearing to address the complaints of shippers, and 

supplying trade data and information in response to requests from Congress; (3) developing 

recommendations for increased reporting requirements for agreements cited in the Commission's 

Order to Fact Finding Investigation No. 26; (4) preparing economic impact assessments for the 

Commission on options to accept, reject, or modify the request in FMC Petition P1-08, Petition 

of the National Customs Brokers and Freight Forwarders Association of America, Inc. for 

Exemption from Mandatory Rate Tariff Publication; (5) preparing a recommendation for a 

Commission Section 15 Order for data and information from carriers in agreements that directly 

serve the Australia/Oceania trade; (6) completing the data collection and analyses of average 

revenue, service contract rates, surcharges, cargo volume, commodities, vessel capacity and 

utilization for the major trade lanes to be included in the Commission's study of the repeal by the 

European Union ("EU") of the block exemption regulations for liner shipping conferences; (7) 

preparing a recommendation and questions for a Commission Notice of Inquiry to invite public 

comments on market conditions in liner shipping and the impact of the repeal of the EU block 

exemption; (8) completing a report on the impact of the global recession on liner shipping as part 

of the study of the EU block exemption repeal; (9) preparing any necessary competitive impact 

analyses, along with requests for additional information, of new agreement filings and 

amendments to agreements; (10) participating in meetings with carrier representatives of the 

major alliance agreements to obtain information on the structure and operations of the 

agreements; (11) providing economic assistance and comments on a maritime study conducted 

by the Organization for Economic Co-operation and Development; (12) providing assistance and 

responses to the Competition Commission of Singapore on the FMC's administration of 

agreements and reporting requirements for agreements; (13) developing an intranet website with 

trade profiles, a data entry screen to review carrier tariffs, and an intranet interface to search the 

database of agreements; and (14) providing data and information on liner trade conditions and 

agreement matters in response to requests from within and outside the Commission. 

In fiscal years 2011 and 2012, OECA plans to continue to review and analyze the competitive 

impact of agreements and monitor the activities of agreement parties, particularly in what is 

likely to be rapidly changing economic circumstances. In addition, OECA will continue to be a 

major contributor to the Commission’s examination of trade conditions resulting from the EU’s 

repeal of its block exemption that will endeavor to assess the impact of the repeal on industry 

stakeholders and evaluate market conditions in the international liner shipping trades. In this 

regard, the Commission intends to issue a Notice of Inquiry to invite public comments on the 

impact of the repeal and the prevailing market conditions in ocean liner shipping. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 67 
 

 

 

 

 

 

Federal Maritime Commission 

Office of Agreements 

OAGR is responsible for analyzing incoming carrier and terminal agreements to determine if 

they meet the guidelines set out in the FMC’s regulations for filed agreements, and to determine 

if their effect would be substantially anti-competitive as set out under section 6(g) of the 

Shipping Act. 

During fiscal year 2010, OAGR received 134 agreement filings, including amendments to 

Federal Maritime Commission 

Bureau of Trade Analysis 

Office of Agreements 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Agreements 4.00 4.00 4.00 

Cost: Salaries & Benefits $431,617.53 $437,314.32 $468,753.55 

Non-Personnel Expenses $0.00 $0.00 $0.00 

Total Cost $431,617.53 $437,314.32 $468,753.55 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

2.69 1.31 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$315,236.76 $153,516.79 

existing agreements. OAGR reviewed, evaluated, and processed 142 filings. In general, this 

number reflects a continued decline in the number of agreements on file due to the continued 

decline in the use of conference agreements as well as the Commission’s filing exemption for 

terminal leases and terminal services agreements. This decline is offset, however, by an increase 

in operational agreements among carriers, particularly operational agreements meeting the low 

market share exemption enacted by the Commission in fiscal year 2005. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 68 
 

 

 

 

Federal Maritime Commission 

During fiscal year 2010, OAGR analyzed a number of significant agreement filings related to 

some of the few remaining rate discussion agreements in the U.S. trades. OAGR provided indepth analyses on the potential competitive consequences of the addition of two outside 

competitors to the Venezuelan Discussion Agreement, and a major transpacific independent to 

the Transpacific Stabilization Agreement. While staff ultimately did not determine a need to 

delay or prevent amendments to either agreement from going into effect, high market shares and 

potentially concerning authorities under both agreements rated a high level of scrutiny. Further, 

OAGR analyzed the potential impact of a marine terminal joint venture and, after obtaining 

additional information through a formal Commission request, determined that it was unlikely 

that the joint venture would adversely affect competition. Based on OAGR’s analysis, the 

Commission allowed the joint venture to go into effect. OAGR also provided the Commission 

with a comprehensive analysis of the Transpacific Stabilization Agreement’s amendment seeking 

to add the authority to discuss a number of environmental issues confronting carriers and to 

agree on implementing programs to address those issues. That amendment was allowed to go 

into effect as scheduled. 

With an increase in the complexity of agreements and resources being moved to other projects, 

the average processing time per agreement filing has increased. Although the average time has 

gone up, it still remains comfortably under the 45-day time frame. While resources remain tight, 

OAGR is pursuing IT initiatives that are aimed at reducing time spent on agreements. These 

include overhauling the existing agreement database to make it more useful for analysts and 

providing for the electronic filing of agreements. This last initiative would significantly reduce 

the environmental impact of OAGR’s activities by eliminating the burdensome need for multiple 

paper copies of agreements, as well as further increase the efficiency of the office as a whole. 

Formal Proceedings 

The Bureau furnishes support in formal Commission proceedings arising in the areas of its 

expertise. The Bureau provides analyses and recommendations on petitions, information demand 

orders, and Commission-initiated rulemakings, and provides expert witness testimony in 

investigations of potential statutory violations and unfair foreign shipping practices. Further, the 

Bureau prepares economic testimony in Commission investigations. 

In fiscal year 2010, Bureau staff: (1) participated, and assisted in preparing reports, in Fact 

Finding Investigation No. 26, Vessel Capacity and Equipment Availability in the United State 

Export and Import Liner Trades; (2) prepared economic impact assessments of petitioner's 

requests in FMC Petition P1-08, Petition of the National Customs Brokers and Freight 

Forwarders Association of America, Inc. for Exemption from Mandatory Rate Tariff Publication; 

(3) prepared a Commission order for current data and information from agreement carriers in the 

U.S.-Australia/New Zealand trade, Section 15 Order Regarding Competition, Rates, and Service 

in the U.S.-Australia/New Zealand Northbound and Southbound Trade; and (4) met with 

representatives of the Transpacific Stabilization Agreement pursuant to the terms of its 

settlement agreement of a past investigation before the Commission. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 69 
 

 

 

 

 

 

 

Federal Maritime Commission 

BTA Program Objectives for Fiscal Years 2011 and 2012 

In fiscal years 2011 and 2012, the Bureau will continue to monitor service contract, tariff and 

agreement activities, prepare reports and economic analyses on developments and issues in key 

U.S. trades, review the activities of controlled carriers, and respond to inquiries and informal 

complaints. By the start of fiscal year 2011, the Bureau intends to have completed the data 

collection phase of the EU study, and will issue a Notice of Inquiry (NOI) shortly thereafter. 

The EU study should be completed in fiscal year 2012. 

The Bureau will continue to assist the Commission’s investigative and enforcement initiatives, 

and oversee international trade issues, such as unfair foreign shipping practices. As a 

Commission representative, the Bureau will continue to participate with the U.S. Customs and 

Border Protection in development of the Automated Commercial Environment/International 

Trade Data System (ACE/ITDS). The Bureau also will continue to participate in the Maritime 

Data Working Group and the Interagency Action Team for the National Committee on the 

Marine Transportation System dealing with data collection and information management issues. 

BTA's support of formal proceedings during fiscal years 2011 and 2012 will depend on the 

number and subject matter of the proceedings initiated over the period, though staff will continue 

to monitor some of the more concerning trade lanes and report their findings to the Commission 

as appropriate. 

In fiscal year 2012, the Bureau has several program objectives that are either directly related to 

newly automated functions and procedures or that involve the improvement or enhancement of 

current automation. These program objectives must be accomplished in conjunction with the 

Office of Information Technology. OAGR expects to enhance public access to agreements and 

to develop and implement procedures for the electronic filing of agreements, and to investigate 

the existing filing requirements in an effort to make the agreement filing process more efficient. 

OECA plans to (1) roll out the E-monitoring system that has been piloting throughout fiscal year 

2010 including appropriate amendments to FMC regulations, and to continue to develop IT 

solutions to make that monitoring data more accessible to BTA staff; and (2) refine its tracking 

of operator capacities, ship deployments, and changes in services using data made available by 

AXS Alphaliner. 

OSCT plans to continue to improve the search functionality of the SERVCON system so as to 

allow internal users to search service contracts for key words or terms as necessary, and continue 

to maintain an accurate record of tariff publication locations. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 70 
 

 

 

 

Federal Maritime Commission 

Bureau of Certification and Licensing (BCL)
 

Federal Maritime Commission 

Operational and Administrative 

Bureau of Certification and Licensing 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Director 3.53 3.00 3.00 

OPVIP 6.00 6.00 6.00 

OTI 8.04 8.00 8.00 

Total FTEs 17.57 17.00 17.00 

Cost: Salaries & Benefits $2,002,417.52 $2,033,656.74 $2,087,844.04 

Non-Personnel Expenses $582,327.73 $564,160.85 $569,593.31 

Total Cost $2,584,745.25 $2,597,817.59 $2,657,437.35 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 17.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $2,657,437.35 

BCL licenses U.S.-based OTIs, including OFFs and NVOCCs; receives OTI surety bonds; 

licenses or processes registrations for foreign-based NVOCCs; issues certificates to owners and 

operators of passenger vessels that have evidenced financial responsibility to satisfy liability 

incurred for nonperformance of voyages or for death or injury to passengers and other persons; 

manages programs assuring financial responsibility of OTIs and PVOs by developing policies 

and guidelines, and analyzing financial documents; and develops and maintains information 

systems that support the Bureau’s programs and those of other Commission entities. 

The Bureau is composed of two Offices: the Office of Transportation Intermediaries, which has 

responsibility for reviewing and approving applications for OTI licenses, and maintaining and 

updating records about licensees; and the Office of Passenger Vessels and Information 

Processing, which has responsibility for reviewing applications for certificates of financial 

responsibility with respect to passenger vessels, managing all activities with respect to evidence 

of financial responsibility for OTIs and PVOs, and developing and maintaining all Bureau 

databases. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 71 
 

 

 

 

 

Federal Maritime Commission 

Federal Maritime Commission 

Bureau of Certification and Licensing 

Office of the Director 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Director 3.53 3.00 3.00 

Cost: Salaries & Benefits $558,358.23 $470,118.18 $477,523.08 

Non-Personnel Expenses $582,327.73 $564,160.85 $569,593.31 

Total Cost $1,140,685.96 $1,034,279.03 $1,047,116.39 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 3.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $1,047,116.39 

Office of Passenger Vessels and Information Processing 

The Commission administers 46 U.S.C. §§ 44102-44103, which requires evidence of financial 

responsibility for vessels which have berth or stateroom accommodations for 50 or more 

passengers and embark passengers at U.S. ports and territories. The program now encompasses 

194 vessels and 40 operators, which have evidence of financial responsibility coverage in excess 

of $293 million for nonperformance and over $637 million for casualty. Certificates of 

performance cover financial responsibility for indemnification of passengers for nonperformance 

of transportation. This requirement helps prevent unscrupulous or financially weak operators 

from entering or operating from U.S. ports. Some potential operators with unfavorable histories 

may find it difficult or impossible to obtain a bond from a reputable surety company. The 

financial responsibility requirement ensures that liability will be met even after an operator has 

ceased operations and dissolved its corporate existence because the evidence of financial 

responsibility is still valid and available to claimants against the guarantor. Certificates of 

casualty are required to meet any liability that may occur for death or injury to passengers or 

other persons on voyages to or from U.S. ports in the amounts established by the statute. U.S. 

Customs and Border Protection is directed to refuse clearance to any vessel which does not 

comply with the FMC’s evidence of financial responsibility requirements for casualty and 

nonperformance. During fiscal year 2010, the Commission approved and issued 19 casualty 

certificates and 8 performance certificates. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 72 
 

 

 

 

 

 

 

 

Federal Maritime Commission 

Federal Maritime Commission 

Bureau of Certification and Licensing 

Office of Passenger Vessels & Information Processing (OPVIP) 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: OPVIP 6.00 6.00 6.00 

Cost: Salaries & Benefits $662,125.60 $690,155.50 $701,819.13 

Non-Personnel Expenses $0.00 $0.00 $0.00 

Total Cost $662,125.60 $690,155.50 $701,819.13 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 6.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $701,819.13 

In conjunction with CADRS, the Bureau offers information and guidance to the cruising public 

throughout the year on passenger rights and obligations regarding monies paid to cruise lines that 

fail to perform voyages. Over the past few years, a number of cruise operators discontinued 

operations or filed for bankruptcy. When cruise lines fail to perform because of bankruptcies or 

other failures, the Commission works closely with the cruise line and the financial responsibility 

provider, if necessary, to facilitate the refund process. The public is kept informed through press 

releases posted on the Commission’s website and advice given to passengers who contact staff. 

During fiscal year 2010, no operators under the PVO program filed for bankruptcy. One 

operator, West Travel, Inc. doing business as Cruise West (Cruise West), ceased operations in 

September 2010 with unperformed cruises. BCL and CADRS continue to work closely with 

Cruise West’s claims processor and the United States Tour Operators Association to oversee the 

disbursement of funds to Cruise West passengers and address concerns from the public regarding 

this situation. Staff also continued to assist passenger vessel operators and financial 

responsibility providers during the fiscal year to resolve passenger claims for several cancelled 

cruises of other cruise operators. 

The Bureau examines PVO activities and operations by monitoring current industry events and 

reviewing cruise lines’ unearned passenger revenue (UPR) information. Oversight of cruise line 

operators’ operations and activities ensures compliance with applicable statutes and Commission 

regulations. One component of the Bureau’s PVO monitoring program is to perform on-site 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 73 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

reviews of PVOs’ financial responsibility. The on-site review confirms the passenger vessel 

operator’s compliance with the Commission’s reporting requirements relating to unearned 

passenger revenue and the appropriate amount of coverage required to ensure adequate financial 

responsibility. On October 28, 2009, the Commission terminated Docket No. 02-15, Passenger 

Vessel Financial Responsibility, noting that the data collected may no longer be relevant given 

the recent global economic downturn. In an effort to gather more current information regarding 

the benefits or burdens that the nonperformance coverage requirement has on all sectors of the 

passenger vessel industry, the Commission issued a NOI on December 3, 2009 and held a 

hearing on March 3, 2010 to receive testimony from passenger vessel operators and trade 

associations. Subsequent to the hearing, witnesses responded to additional questions for the 

record. Further requests for information from the Commission were issued. BCL provided its 

analysis of the data and presented options for the Commission’s consideration in early fiscal year 

2011. Due to the ongoing analysis of information received from the NOI and Hearing, the staff 

did not conduct a cruise line on-site review in fiscal year 2010. 

In fiscal year 2011, BCL will take any action needed to implement the Commission’s decision 

reached as a result of the passenger vessel financial responsibility NOI, including initiation of 

rulemakings or adjustments in monitoring procedures. The Bureau intends to conduct quarterly 

reviews of the PVO monitoring files to ensure cruise line operators provide timely and accurate 

information with respect to the submission of reports and records; make appropriate corrections 

in staff procedures and monitoring schedules, and ensure that the new procedures are timely 

implemented. 

Automated Database Systems 

During fiscal year 2010, BCL continued to modernize and expand the Regulated Persons Index 

(RPI), a database containing up-to-date records of licensed OTIs, ocean common carriers, and 

other entities. Among other data uses, the RPI is used to post on the Commission’s website a list 

of compliant OTIs so that carriers and others can ascertain whether an OTI is properly licensed, 

bonded, and if required, has posted the location of its automated tariff. The OTI list also 

indicates whether an NVOCC has filed an optional rider for additional proof of NVOCC 

financial responsibility. Additional report capabilities were implemented during the fiscal year to 

facilitate management of the OTI licensing program. BCL made substantial progress towards 

development of an important enhancement to the OTI list in fiscal year 2010. The new capability 

will enable users to locate a licensed OTI in their area by entering a city, state, or ZIP code as 

their search criteria and requesting a list of all OTIs within a certain distance from that point, for 

example, those within 25, 50, or 75 miles. The search results that will be produced include the 

names, addresses and telephone numbers of all licensed OTIs within the specified area. The 

Commission is creating this search functionality in response to requests from the public, and 

believes this feature will be particularly useful for individuals who plan to move overseas. For 

these people, finding a licensed OTI in their local area can result in more accurate quotations for 

transportation of their household goods and allows those consumers to make better informed 

decisions, rather than resorting to use of unlicensed OTIs. The Commission anticipates launching 

this feature in the first half of fiscal year 2011. In fiscal year 2011 and 2012, BCL will also 

continue to work with the Office of Information Technology to initiate an overall redesign of the 

OTI list maintained on the Commission’s website to increase accessibility to information, 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 74 
 

 

 

 

 

 , , 

 

 

Federal Maritime Commission 

facilitate public search capability, and make it more interactive for users. Also, BCL continues to 

work towards updating the current PVO database, automating the PVO Application Form FMC131, Application for Certificate of Financial Responsibility, and continues to work on a 

requirements analysis to facilitate the filing of PVO applications. These efforts are linked to the 

Enterprise Content Management system and will be initiated based upon the updated system 

schedule which is forthcoming. 

Office of Transportation Intermediaries 

OTIs are transportation middlemen for oceanborne cargo moving in the U.S. foreign trades and 

includes two types: NVOCCs and OFFs. NVOCCs are common carriers that do not operate the 

vessels by which transportation is provided. OFFs in the U.S. arrange for the transportation of 

cargo with a common carrier on behalf of shippers and process documents related to those 

shipments. Both NVOCCs and OFFs must be licensed by the Commission if they are located in 

the U.S. NVOCCs doing business in the U.S. foreign trades but located outside the U.S. (foreign 

NVOCCs) may choose to become licensed, but are not required to do so. Whether licensed or 

not, foreign NVOCCs must establish financial responsibility. All NVOCCs must publish 

electronic tariffs which contain the NVOCC’s rates, charges, rules, and practices. 

To become licensed by the Commission an OTI must establish that it through its Qualifying 

Federal Maritime Commission 

Bureau of Certification and Licensing 

Office of Transportation Intermediaries (OTI) 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: OTI 8.04 8.00 8.00 

Cost: Salaries & Benefits $781,933.69 $873,383.06 $908,501.83 

Non-Personnel Expenses $0.00 $0.00 $0.00 

Total Cost $781,933.69 $873,383.06 $908,501.83 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 8.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $908,501.83 

Individual (QI), has a minimum of three years of experience in ocean transportation intermediary 

activities in the U.S. and the necessary character to render OTI services as well as establish its 

financial responsibility by means of a bond, insurance, or other instrument. An investigation of 

the applicant’s qualifications addresses such issues as accuracy of information provided in its 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 75 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

application; integrity and financial responsibility of the applicant; character of the applicant and 

its QI; and length and nature of the QI’s experience handling OTI duties. 

Licensed OFFs must establish financial responsibility in the amount of $50,000, and licensed 

NVOCCs, $75,000. An additional $10,000 of coverage is required for each unincorporated 

branch office in the United States other than the one used to establish a presence. If an OTI is a 

licensed NVOCC, it must file a Form FMC-1 and publish a tariff. Furthermore, non-U.S.-based 

NVOCCs that do not wish to be licensed must provide the Commission with proof of financial 

responsibility in the amount of $150,000, file a Form FMC-1, and ensure a tariff is published at 

the site listed on the Form FMC-1. A non-U.S.-based NVOCC must list in its tariff an agent for 

service of process in the United States, and it must use a licensed OTI for any OTI services 

performed on its behalf in the United States. The financial instrument must be available to pay 

claims against the OTI arising from its transportation-related activities, any order of reparation 

assessed under the Shipping Act, and any judgments for damages against an OTI arising from its 

transportation-related activities under the Shipping Act. 

During fiscal year 2010, the Commission received 409 new OTI applications and 246 amended 

applications, issued 499 OTI licenses and revoked 345 licenses. At the end of the fiscal year, 

1,093 OFFs, 1,711 U.S. NVOCCs, 1,544 joint NVOCC/OFFs, and 55 foreign NVOCCs held 

active OTI licenses. An additional 1,109 foreign NVOCCs maintained proof of financial 

responsibility on file with the Commission, but chose not to be licensed. U.S. NVOCCs may 

file riders to their existing NVOCC bonds to meet financial responsibility requirements imposed 

by the Chinese government. The Commission received 62 riders in fiscal year 2010 providing 

optional proof of financial responsibility for NVOCCs serving in the U.S.-China trade. 

BCL continues to work diligently with OTI applicants, seeking to promote accurate and 

complete submissions and to process such applications within 90 business days of receipt of a 

complete application. Additionally, BCL has made significant progress in reducing the backlog 

of applications attributed to incomplete data submissions from applicants. BCL anticipates 

continued improvement in the timeliness of licensing determinations and believes its efforts to 

streamline OTI licensing processes will minimize backlogged applications as a future concern. 

The Commission implemented optional electronic filing of Form FMC-18, Application for an 

Ocean Transportation Intermediary License, in fiscal year 2008. The system permitted filers to 

complete an OTI application on-line, scan and attach required documents, and submit the 

application electronically. In fiscal year 2009, a decision was made to suspend enhancements to 

the current system in favor of developing a new agency-wide Enterprise Content Management 

(ECM) system. Thus, enhancements to the FMC-18 system functionality that would improve 

productivity and efficiency of the OTI licensing program have been delayed. The ECM system 

will provide a common platform for all agency databases and applications, facilitating the 

sharing of data presently housed in stand-alone databases and increasing agency efficiency. At 

the present time, approximately 96% of all incoming OTI applications received are through the 

present electronic system. 

In fiscal year 2010, the Bureau worked closely with the Commission’s OIT to complete the 

development of system requirements for the first phase of an Enterprise Content Management 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 76 
 

 

 

Federal Maritime Commission 

system. This phase was dedicated to designing a fully automated and more robust electronic 

filing system for OTI licensing which will incorporate features that streamline licensing 

processes and improve productivity. The future FMC-18 filing system, which is planned to 

include electronic payment and electronic signature capabilities in a later phase, will also 

incorporate significant security features for the purpose of protecting applicant data, and 

detecting and preventing unauthorized system intrusions. BCL also initiated efforts to update the 

questions in OTI license application Form FMC-18 to streamline the form, and provide helpful 

guidance to assist applicants in navigating the OTI licensing process using plain language. 

In fiscal years 2011 and 2012, the Bureau will continue to promote awareness of OTI 

requirements through continuous outreach to the public. In addition to the current projects 

involving updates to the FMC-18 application form, and plain language guidance regarding OTI 

licensing, BCL will continue to evaluate its current rules and regulations regarding OTI licensing 

requirements to ensure that it is protecting the shipping public. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 77 
 

 

 

Federal Maritime Commission 

Bureau of Enforcement (BOE)
 

The BOE has primary responsibility for ensuring compliance with shipping statutes administered 

by the Commission, principally the Shipping Act. The Bureau is actively involved in the 

Commission’s outreach activities and interacts regularly with all segments of the ocean 

transportation industry. The Bureau is also active in maritime security and works closely with 

BCL to promote prompt licensing of all qualified OTIs, and with the U.S. Bureau of Customs 

and Border Protection (CBP) to ensure submission of complete and accurate shipping data. 

Bureau attorneys may be designated as Investigative Officers in nonadjudicatory fact finding 

proceedings. Additionally, Bureau attorneys work closely with the Commission’s investigatory 

personnel and participate as trial counsel in formal adjudicatory proceedings. BOE monitors all 

other formal Commission proceedings and relevant court actions in order to identify major 

regulatory issues and to advise the Managing Director and the other Bureaus and Offices. The 

Bureau participates with other Bureaus and Offices in committees and task forces in the 

development of Commission policies, rules, and regulations, and also intervenes in formal 

complaint proceedings where appropriate. 

Federal Maritime Commission 

Bureau of Enforcement 

Operational and Administrative 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of the Director 10.69 10.00 10.00 

Cost: Salaries & Benefits $1,599,992.88 $1,488,154.23 $1,536,875.51 

Non-Personnel Expenses $470,904.76 $452,669.36 $447,910.29 

Total Cost $2,070,897.64 $1,940,823.59 $1,984,785.80 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

0.00 10.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$0.00 $1,984,785.80 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 78 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Through investigative personnel, the Bureau monitors and conducts investigations into the 

activities of ocean common carriers, OTIs (NVOCCs and OFFs), shippers, ports, MTOs, and 

other persons to ensure compliance with the statutes and regulations administered by the 

Commission, thereby providing maximum protection to all participants in the ocean 

transportation shipping industry. Activities include: (1) monitoring tariffs, service contracts 

and NSAs to determine compliance with applicable statutes and regulations; (2) reviewing of 

VOCC and OTI operations, including monitoring OTI compliance with bonding requirements 

and post-licensing and routine compliance checks of licensees to determine whether operations 

conform with regulatory requirements; and (3) monitoring operation of carrier and MTO 

agreements, including review of minutes and quarterly reports. Investigations are conducted into 

alleged violations of the full range of statutes and regulations administered by the Commission, 

including: illegal or unfiled agreements; abuses of antitrust immunity; unlicensed OTI activity, 

including the provision of transportation services to noncompliant OTIs; illegal rebating; 

misdescriptions or misdeclarations of cargo; untariffed cargo carriage; unbonded passenger 

vessel operations; unlawful MTO activity and various types of consumer abuses, such as failure 

of carriers or intermediaries to carry out transportation obligations resulting in cargo delays and 

financial losses for shippers. Through these activities, the enforcement program supports the 

agency’s objectives of obtaining statutory compliance and ensuring equitable and efficient 

trading conditions. Bureau enforcement efforts are typically focused upon activities which have 

market-distorting effects and those which impact most directly on the shipping public. 

BOE prepares and serves notices of violations of the shipping statutes and Commission 

regulations and may compromise and settle civil penalty demands arising out of those violations. 

If settlement is not reached, Bureau attorneys act as prosecutors in formal Commission 

proceedings that may result in settlement or in the assessment of civil penalties. The Bureau also 

participates, in conjunction with other Bureaus, in special enforcement initiatives, fact finding 

investigations, ADR processes, rulemaking efforts, and homeland security issues. 

During fiscal year 2010, the Bureau worked to obtain statutory compliance in all major trades 

and with all segments of the transportation industry, i.e., carriers, carrier agreements, MTOs, 

PVOs, and OTIs. The Bureau also initiated actions to address and seek compliance for marketdistorting activities such as various forms of secret rebates and absorptions, misdescriptions of 

commodities and misdeclarations of measurements, illegal equipment substitution, unlawful use 

of service contracts, as well as carriage of cargo by and for untariffed and unbonded NVOCCs, 

and joint carrier activities outside the authority of existing agreements or pursuant to unfiled 

agreements. Particular emphasis was placed on industry service contracting activities to ensure 

fair trading conditions and protection of the public. Many malpractice investigations were 

resolved informally, resulting in compromise settlements and payment of civil penalties. Other 

reviews may be treated primarily as compliance matters and closed upon completion of remedial 

action by the OTI parties involved. However, certain investigations of carrier and MTO 

practices have required the institution of formal adjudicatory proceedings in order to pursue 

remedies under the 1984 Act. 

A major investigation, completed during fiscal year 2010, addressed whether a Hong Kongbased NVOCC permitted unrelated entities to utilize the rates found only in the NVOCC’s 

service contracts with an ocean common carrier, and whether the NVOCC utilized a newlyFY 2012 Budget Estimates submitted to the Appropriations Subcommittees 79 
 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

created shippers association as an unfair device or means to obtain ocean transportation at less 

than the rates that would otherwise apply in violation of section 10(a) of the 1984 Act. Docket 

No. 09-07 was discontinued upon approval of a formal settlement agreement, payment of 

substantial civil penalties by the NVOCC, and termination of the operations of the subject 

shippers association. BOE also completed a major investigation of an ocean common carrier in 

the inbound PRC-U.S. trades believed to be providing transportation services to intermediaries 

that did not have tariffs, licenses, or bonds as required by the statute; and allowing use of service 

contracts by persons who were not parties to those contracts. The Bureau also continued 

ongoing investigations of household goods movers allegedly operating as unlicensed OTIs, 

including investigation of the VOCCs and licensed NVOCCs that provide service to unlicensed 

movers. 

In fiscal year 2010, the compliance audit program continued as a major focus. This program, 

conducted from headquarters primarily by mail and telephone, reviews the operations of licensed 

OTIs to assist them in complying with the statutory requirements and the Commission’s rules 

and regulations. The audit program also reviews entities holding themselves out as VOCCs, but 

with no indication of actual vessel operations. At the beginning of fiscal year 2010, 18 audits 

were pending. During the fiscal year, 113 audits were commenced, 116 audits were completed 

(including audits carried over from fiscal year 2009), and 15 remained pending in the Bureau on 

September 30, 2010. 

At the beginning of fiscal year 2010, 20 enforcement cases were pending final resolution by the 

Bureau, the Bureau was party to 8 formal proceedings, and there were 25 matters pending which 

the Bureau was investigating or for which it was providing legal advice. During the fiscal year, 

seven new enforcement actions were referred for enforcement action or informal compromise; 17 

were compromised and settled, administratively closed, or referred for formal proceedings; and 

10 enforcement cases were pending resolution at fiscal year’s end. Also, three formal 

proceedings were initiated; four formal proceedings were completed, and seven were pending at 

the end of the fiscal year. Additionally, the Bureau opened 13 matters involving monitoring or 

legal advice were received during the fiscal year, completed or closed 27 such matters, and 11 

remained pending on September 30, 2010. 

In fiscal years 2011 and 2012, the Bureau will continue to pursue market-distorting, fraudulent, 

and anticompetitive practices harmful to the industry and the public and to monitor U.S. trades, 

to the extent that resources permit. The Bureau will continue to pursue initiatives aimed at 

VOCCs and NVOCCs engaged in unfair service contracting practices, particularly those which 

permit improper entities to compete unlawfully with carriers and OTIs operating in compliance 

with U.S. laws, and will continue to expand the OTI monitoring and audit programs. The 

enforcement and monitoring activities will include focusing on the unlawful operations of 

household goods carriers - both licensed and unlicensed - which have increasingly caused 

economic harm to individual consumers, as well as competitive injury to those carriers operating 

lawfully. 

Additionally, the Bureau seeks to expand its compliance-focused program to review and audit 

ocean common carrier, NVOCC and freight forwarder operations. While well-received by the 

regulated industry, this program emphasizing correction of routine tariff matters and prompt 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 80 
 

 

 

 

 

Federal Maritime Commission 

compliance with the Commission’s reporting, licensing and bonding requirements conducts 

roughly 115 OTI audits each year. Compliance audits thus account for less than 2.5% annually 

of the approximately 5,400 licensed or bonded OTIs currently registered with the Commission. 

The Bureau will continue to review the operations of MTOs and, together with other 

Commission Bureaus and Offices, will monitor MTO-filed agreements to ensure compliance 

with the Shipping Act and Commission regulations. The Bureau will also continue its ongoing 

monitoring of NVOCC activity involving NSAs. Public outreach efforts will continue to educate 

maritime transportation users and providers with regard to FMC statutes and regulations, and the 

program will continue to improve participation in security issues as they relate to U.S. ocean 

commerce, specifically to include efforts to coordinate the use of available database systems with 

other agencies engaged in homeland security to improve identification of entities providing and 

utilizing maritime transportation services. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 81 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Office of Information Technology (OIT) 

OIT delivers information and information technology management services in support of the 

administrative operations of the Commission, and is responsible for ensuring that the 

Commission’s IT program is conducted in a manner consistent with applicable rules, regulations 

and guidelines. OIT receives program direction from the agency’s CIO. 

Federal Maritime Commission 

Operational and Administrative 

Office of Information Technology 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of Information Technology 6.93 8.50 9.00 

Cost: Salaries & Benefits $900,944.29 $1,173,161.95 $1,244,602.57 

Non-Personnel Expenses $1,113,034.91 $1,470,732.93 $1,615,642.00 

Total Cost $2,013,979.20 $2,643,894.88 $2,860,244.57 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.80 7.20 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$572,048.91 $2,288,195.66 

The Director/Chief Information Officer (CIO), OIT serves as the Commission’s Information 

Technology Officer, Telecommunications Manager, Help Desk, Database Administration 

Manager, Records Management Officer, and oversees the IT security program. The Director/ 

CIO plans, coordinates, and facilitates the use of technology within the Commission. 

During fiscal year 2010 important OIT activities included the following: (1) continued ongoing 

FMC-18 application system upgrade initiative; (2) upgraded the network datum lines at all FMC 

regional offices; (3) finished data center consolidation and put into operation new virtual servers, 

reducing the need for physical servers; (4) managed the agency’s IT technical support and 

assistance contracts; (5) completed installation of new Video Tele-conferring and Streaming 

Video System to enable video conferencing and live streaming video broadcast capability of 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 82 
 

 

 

 

 

Federal Maritime Commission 

Commission hearings for access by the public through FMC’s public website; (6) provided 

ongoing advice and coordination on document and electronic records management system; (7) 

completed a review and update of security assessments for FMC-18 and SERVCON systems; (8) 

planned and managed IT Security Awareness training throughout the FMC; (11) upgraded 

FMC’s onsite Data Backup platform; (12) continued requirements review of agency databases 

applications for planned effort to integrate and consolidate interconnection among all applicable 

FMC system; (13) completed rollout of new desktops and laptops throughout the agency. 

For fiscal years 2011 and 2012, major initiatives include plans to: (1) certify and accredit FMC’s 

remaining two major application; (2) resume effort to integrate Enterprise Document 

Management technology within the Commission; (3) develop a FMC Enterprise Architecture 

Plan; (4) incorporate the Pay.gov initiative; and (5) finish upgrade of the FMC COOP site to be a 

mirror image of FMC Headquarters (HQ). 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 83 
 

 

 

 

Federal Maritime Commission 

Office of Human Resources (OHR) 

OHR plans and administers a complete human resources management program including: 

recruitment and placement, position classification and pay administration, occupational safety 

and health, employee assistance, workforce discipline, performance management and incentive 

awards, employee benefits, retirement, employee development and training, and personnel 

security. 

Major accomplishments during fiscal year 2010 include the following: (1) monitored activities 

Federal Maritime Commission 

Operational and Administrative 

Office of Human Resources 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of Human Resources 4.56 5.40 5.40 

Cost: Salaries & Benefits $539,555.58 $612,197.97 $636,813.64 

Non-Personnel Expenses $231,057.05 $165,221.09 $165,475.82 

Total Cost $770,612.63 $777,419.06 $802,289.46 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.08 4.32 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$160,457.89 $641,831.57 

of the agency’s payroll/personnel service provider, the National Finance Center (NFC), and 

worked with Administrative staff to ensure security, continuity and accuracy of payroll and 

personnel services; (2) coordinated with senior management to review and evaluate leadership 

development programs and activities to address succession planning and conducted a 

comprehensive recruitment effort for the Senior Executive Service Candidate Development 

Program; (3) conducted a comprehensive training program in accordance with the agency’s 

budget and strategic and performance plans, promoting e-learning and on-line training 

opportunities, continuing the college tuition reimbursement program, ensuring training for new 

employees on the No Fear Act, and participating in the SAC Training Program; (4) planned, 

implemented, and promoted new programs for Retirement-Readiness, Personal Financial 

Literacy Education, and Volunteer/Community Service Awareness and issued newsletters 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 84 
 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

highlighting appropriate information and activities; (5) conducted a comprehensive personnel 

and information security program, including initiating and adjudicating security investigations 

for new and reinvestigated employees and incorporating new security regulations into agency 

policy; (6) coordinated with OPM in the administration of the Federal Human Capital Survey, 

analyzed results, prepared interpretation and trend analysis, and worked with senior management 

to identify and reinforce successful activities and develop strategies to address areas of 

improvement; (7) worked with the Partnership for Public Service in connection with metrics and 

utilizing results of the Best Places to Work rankings; (8) finalized the agency’s Human Capital 

Plan, Workforce Plan, Accountability System, and Succession Management Plan in accordance 

with OPM’s Human Capital Assessment and Accountability Framework and coordinated with 

OPM, OMB, and the Small Agency Human Resources Council on human capital and related 

initiatives; (9) conducted a comprehensive performance management and incentive awards 

program; (10) conducted a comprehensive recruitment program; (11) maintained the partnership 

for acquisition of assistive devices through the Department of Defense’s Computer/Electronic 

Accommodations Program; (12) continued to administer E-gov initiatives and implementation 

of the Enterprise Human Resources Integration Project and worked with the Small Agency 

Human Resources Consortium, OPM and Northrop Grumman Integic officials to complete 

program activities to implement the electronic Official Personnel Folder (eOPF); (13) promoted 

the Preventive Health and Awareness Program and OPM’s Healthier Feds initiatives, publicized 

and hosted wellness seminars sponsored by the Employee Assistance and Federal Occupational 

Health Programs; (14) in concert with OPM’s hiring reform initiative, established agency Rapid 

Response (SWAT) team and undertook activities to simplify the Federal application process and 

enhance recruitment efforts, including developing streamlined vacancy announcement templates, 

mapping agency hiring processes to reduce the time-to-hire and developing an action plan to 

implement hiring reform initiatives; (15) enhanced workplace flexibilities and provided 

recommendations to OPM regarding the agency’s work/life program and best practices; (16) 

participated in the planning and implementation of the Automatic External Defibrillator (AED) 

program and full-time clinical services; (17) managed and conducted employee benefits and 

charitable contributions programs and Open Seasons, such as the Combined Federal Campaign, 

Long-Term Care Insurance Program, Flexible Spending Accounts, the annual Benefits Open 

Season and FMC Health Fair, etc.; (18) conducted a proactive retirement program that included 

computing benefits, providing access to retirement seminars, related training and one-on-one 

counseling, and timely processing all retirements; (19) coordinated with other administrative 

units and the General Services Administration’s Managed Service Office on matters pertaining to 

Homeland Security Presidential Directive 12 (HSPD-12) and the issuance of Federal employee 

credentials; (20) conducted a comprehensive classification and position management program, 

including coordinating assignments and evaluating contractor performance; and (21) continued 

work with information technology contractors to complete the design and agency-wide 

implementation of an automated training data management reporting system. 

In fiscal years 2011 and 2012, OHR plans to: (1) advise agency management and staff on all 

human resources matters and maintain a sound and progressive human resources program; (2) 

implement pertinent portions of the agency’s strategic, training and related performance plans, 

particularly performance goals related to the management of human resources; (3) explore and 

implement simplification, flexibility, and accountability of human resources management 

programs, and explore high-tech solutions to address program requirements, including, e.g., a 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 85 
 

 

Federal Maritime Commission 

fully automated training evaluation system; (4) partner with agency officials in concert with the 

Administration’s goal to build a transparent, high-performance government specifically with 

respect to Federal hiring reform and improving employee satisfaction and wellness; (5) continue 

with eOPF implementation and conversion of performance, payroll, benefits and other HR 

records to electronic format, and execute action plan for full production and employee roll-out; 

(6) monitor the processes and database modernization activities of the NFC in conjunction with 

the government-wide e-payroll initiative and ensure timely and accurate payroll and personnel 

services; (7) continue to administer and assess results from the Annual Employee Viewpoint 

Surveys to gauge employee satisfaction with work/life and benefits programs, agency leadership, 

developmental opportunities, etc., and use these metrics to strategically implement, monitor, 

measure, assess progress in achieving, and report on human capital management goals in 

accordance with the agency’s Human Capital, Workforce, Succession Management and 

Accountability Plans. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 86 
 

 

 

 

 

he Commission has an interagency agreement (IAG) with the Bureau of Public Debt (BPD) to 

Federal Maritime Commission 

Office of Budget and Finance (OBF)
 

OBF administers the Commission's financial management program and is responsible for 

offering guidance on optimal use of the Commission's fiscal resources. OBF's main 

responsibilities are to: (1) produce, submit and support annual budget justifications and 

estimates to OMB and the Congress; (2) execute annual budgets to ensure that appropriated 

funds are properly expended; (3) review audited financial reports; (4) administer a control 

system over workyears of employment; (5) collect and deposit all fees and forfeitures due the 

Commission and pursue collections of debts; (6) process accounts payable documents; (7) verify 

financial, accounting and payroll reports generated by the agency’s fiscal services agents; 

(8) prepare and process travel orders and vouchers; and (9) manage the Commission’s Travel 

Charge Card and Cash Management Programs. 

T Federal Maritime Commission 

Operational and Administrative 

Office of Budget and Finance 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of Budget and Finance 5.00 5.00 5.00 

Cost: Salaries & Benefits $550,751.53 $565,701.18 $573,831.78 

Non-Personnel Expenses $166,828.66 $148,003.55 $146,005.75 

Total Cost $717,580.19 $713,704.73 $719,837.53 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.00 4.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$143,967.51 $575,870.02 

provide travel, procurement, and financial reporting. OBF serves as the Commission’s primary 

contact with BPD and verifies all accounting transactions, oversees the timely submission of 

quarterly financial statements to OMB, annual and semi-annual report submissions to the U.S. 

Treasury and works to ensure that an unqualified opinion is received on the annual financial 

statement audit. The NFC provides the Commission with payroll services via an IAG. OBF 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 87 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

serves as the primary contact with NFC regarding time card transmission and verifies all payroll 

disbursement costs. NFC transmits documentation of payroll costs directly to BPD for inclusion 

in the agency’s accounting records. 

During fiscal year 2010, OBF’s important accomplishments include the following: (1) collected 

and deposited $1,250,668 to the U.S. Treasury from fines and penalty collections, publications, 

reproductions, and user fees; (2) coordinated and prepared budget justifications and estimates for 

the fiscal year 2011 Congressional budget and fiscal year 2012 OMB budget; (3) prepared 

required external reports; (4) prepared monthly internal status reports on workyears, funding, 

travel, receivables, and budget allocation report to provide management with meaningful, timely 

expense data by program; (5) revised procedures and calculations used to estimate the cost of 

annual performance goals; (6) captured receivables by user fee type and pursued delinquent 

receivables; (7) worked with BPD staff and independent auditors regarding the audits of the 

fiscal years 2009 and 2010 Financial Statements (unqualified opinions were received for fiscal 

year 2009 and fiscal year 2010); (8) worked with the OMD to finalize the FMC’s 2009 MD&A/ 

PAR; (9) prepared detailed responses to Questions for the Record submitted by the House 

Committee on Appropriations, Subcommittee on Transportation, and Urban Development, and 

Related Agencies; (10) updated Commission Orders and procedural documents; (11) prepared 

reports of all receivables by user fee type and pursued delinquent receivables; (12) developed a 

new methodology for calculating user fee costs; (13) processed all of the Commission’s accounts 

payable documents in accordance with the Prompt Payment Act; and (14) prepared official 

travel documents in accordance with applicable Federal Travel Regulations. 

Goals for fiscal years 2011 and 2012 include: (1) facilitating implementation of Pay.gov for 

acceptance of electronic payments from the industry; (2) continuing to pursue initiatives leading 

to economy and efficiency in budget and financial operations; (3) improving the Cash 

Management Program and updating relevant Standard Operating Procedures; and (4) developing 

detailed training documents for the Commission’s Travel Charge Card Program to improve 

cardholders’ knowledge of appropriate use and responsibilities. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 88 
 

 

 

Federal Maritime Commission 

Office of Management Services (OMS)
 

OMS is responsible for procuring and furnishing all services, office equipment and supplies 

necessary to support the day-to-day operations and performance goals of the Commission. To 

accomplish this, OMS administers a variety of management service functions, including: (1) 

administering Commission procurement and contracting; (2) controlling and administering the 

Commission's property utilization, maintenance, inventory and disposition programs; (3) 

planning and administering programs for improvement of the workplace environment and other 

space utilization operations for all Commission locations, including office space and provision of 

office furnishings; (4) managing the receipt, storage, distribution and inventory of all supplies, 

forms and accessories; (5) coordinating and fulfilling all printing, copying, and graphic service 

requirements; (6) coordinating the use of the building's physical facilities with respect to 

maintenance, security, and parking; (7) conducting safety inspections and coordinating the 

Commission's emergency planning and evacuation plan; and (8) directing the Commission's 

participation, development and goal-setting efforts under the Small Business Act. 

Federal Maritime Commission 

Operational and Administrative 

Office of Management Services 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Office of Management Services 5.39 5.25 5.00 

Cost: Salaries & Benefits $700,541.60 $648,817.67 $610,935.13 

Non-Personnel Expenses $203,362.49 $175,629.30 $163,255.64 

Total Cost $903,904.09 $824,446.97 $774,190.77 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

1.00 4.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$154,838.15 $619,352.62 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 89 
 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

During fiscal year 2010, OMS: (1) coordinated security and logistics with the General Services 

Administration (GSA) and Federal Protective Service (FPS) for new Chairman’s swearing-in by 

the Speaker of the House; (2) provided guidance and supplies for issuance of new secure 

credentials to agency executives, managers, and BOE personnel; (3) coordinated the relocation 

of the Seattle AR; (4) arranged for various administrative services support for FMC Fact 

Finding 26 and 27, to include: court reporting services, meeting space for industry interviews, 

supply materials, etc.; (5) worked with OHR and awarded a contract for the serves of an eOPF 

expert to assist OHR in the automation of Commission OPFs; (6) arranged for the redesign and 

printing of the Commission’s 48th Annual Report through GPO; (7) arranged for the expansion 

of the documents/materials shredding and disposal program to provide agency-wide quarterly 

service to all activities; (8) coordinated with the FPS, GSA, and the other Federal HQ building 

tenants to assess and update the building’s Occupant Emergency Plan (OEP) and arranged for 

GSA’s OEP Expert to conduct a “emergency preparedness seminar” for the building’s 

population through the Building Security Committee (BSC); (9) coordinated with the other 

members of the BSC to arrange to have the building’s Health Services Unit equipment upgraded 

and services expanded to included a bi-annual blood drive and quarterly health related seminars; 

(10) coordinated the logistics required for an agency-wide Reorganization; (11) arranged for the 

staff movement of HQ personnel in connection with the Commission’s Reorganization Plan 

effective January 31, 2010; (12) coordinated and conducted a management evaluation & review 

of BCL’s Office of Transportation Intermediaries’ operations; (13) coordinated with OMD and 

arranged for the funding and establishment of a new agency Outreach program through GPO for 

printing of material and assisted with development of program extras; and (14) coordinated with 

the CIO/OIT and GSA to have the necessary alterations performed to install an agency Video 

Conferencing System at FMC’s Headquarters. 

In fiscal years 2011 and 2012, OMS’ objectives include: (1) continuing to work with GSA to 

provide the required information for HQ lease renewal and/or relocation effort; (2) continuing to 

work with GSA, FPS, and other tenant agencies at our HQ facilities and field locations to 

upgrade and/or improve the buildings’ security measures and emergency preparedness; (3) in 

conjunction with other administrative offices, continuing the research methods and practices for 

the enhancement and improvement in support services; (4) continuing to work with BPD on 

streamlining the FMC’s acquisition and procurement program for better efficiency; and (5) 

continuing to provide advice and assistance regarding innovative support-service approaches to 

FMC activities. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 90 
 

 

 

 

 

Federal Maritime Commission 

Fiscal Year 2012 Strategic Goals
 

Federal Maritime Commission 

Federal Maritime Commission 

Executive Summary 

FY 2010 FY 2011 FY 2012 

Actual Estimate Request 

FTE: Headquarters & Field 126.55 131.00 133.00 

Cost: Salaries & Benefits $17,025,056.83 $18,208,000.00 $18,809,000.00 

Non-Personnel Expenses $7,099,670.73 $7,290,000.00 $7,456,000.00 

Total Cost $24,124,727.56 $25,498,000.00 $26,265,000.00 

FY 2012 FTE by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

Maintain an efficient and competitive international 

ocean transportation system 

Protect the public from unlawful, unfair and 

deceptive practices and resolve shipping disputes 

26.00 107.00 

FY 2012 Cost by FMC Strategic Goal 

Strategic Goal 1 Strategic Goal 2 

$5,126,789.16 $21,138,210.84 

Factors Affecting the Achievement of Goals 

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

economic and organizational aspects of international liner shipping and the intermodal 

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

maintaining a competitive international ocean transportation system and protecting the public 

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

and with a minimum regulatory burden on stakeholder industries. 

To continue to accomplish its goals, the agency will need to maintain its relevant expertise 

through the recruitment, training and retention of highly qualified attorneys, economists, industry 

specialists, and information technology experts. The importance of the recruitment and retention 

issue is likely to increase as the agency’s experienced personnel reach retirement age, and in the 

face of competition from other Federal agencies seeking to replace their retiring personnel. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 91 
 

 

 

 

 

 

 

 

Federal Maritime Commission 

Expanding and enhancing the use of information technologies is one way in which the FMC is 

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

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

efficiently and accurately, but also because of the agency’s need to keep up with the electronicbusiness practices of the industries it regulates. Greater use of information technology also helps 

make many of the aspects of licensing, certification and information filing simpler and easier to 

accomplish for the agency’s stakeholders. IT is critical to the maintenance and effective use of 

various key agency databases. 

The security of agency databases, confidential business reports and associated documents filed 

with the FMC has received increasing attention in recent years. Enhanced and extended 

applications of information technologies helps ensure that security. 

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

regulation of marine terminal operators, with aspects of the intermodal movement of ocean cargo 

in the U.S. In addition, foreign-based ocean transportation intermediaries are subject to statutory 

bonding requirements under FMC jurisdiction. To the extent that there are changes in the 

regulatory treatment of international liner operations by foreign governments, as was the case in 

Europe beginning in late 2008, the FMC will need to conduct research to determine the likely 

affect of such changes on U.S. trades. Over time, and depending on their actual impacts, 

regulatory changes in other regions could also provide a possible impetus for a review of U.S. 

statutes or regulations on liner shipping. Consequently, FMC analyses of possible future 

proposals for statutory revisions may be required. 

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

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

congestion, environmental mitigation proposals, terminal operational efficiencies, and 

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

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

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

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

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

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

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

STRATEGIC GOAL 1 

Maintain an efficient and competitive international ocean transportation system. 

The Federal Maritime Commission is responsible for the regulation of oceanborne transportation 

in the foreign commerce of the United States pursuant to the provisions of the Shipping Act of 

1984 (Shipping Act). A stated policy objective of the Shipping Act is “to promote the growth 

and development of United States exports through competitive and efficient ocean transportation 

and by placing a greater reliance on the marketplace.” The Commission’s oversight of carrier 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 92 
 

 

 

Federal Maritime Commission 

and terminal operator antitrust immunity as part of a non-discriminatory regulatory process 

works to provide an efficient and economic transportation system in the ocean commerce of the 

United States. In addition the Commission addresses unfavorable conditions affecting U.S. 

carriers in U.S. oceanborne trades when such conditions do not exist for foreign carriers. 

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

oversight is of key importance. Efficiency and competition in the transportation system are 

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

$0.00 

Strategic Goal 1 

Funding Requirements by Program 

Formal Proceedings EEO IG Operational & Administrative 

10.17 

0.00 

Strategic Goal 1 

FTE Requirements by Program 

Formal Proceedings EEO IG Operational & Administrative 

$2,145,797.53 

$2,980,991.63 $0.00 

0.00 

15.83 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 93 
 

 

 

 

 

 

Federal Maritime Commission 

OBJECTIVE 1: 

Identify and take action to address substantially anti-competitive conduct or unfavorable 

trade conditions in U.S. trades. 

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

consumers, from possible abuse of the limited antitrust immunity granted by Congress to 

international liner carriers and domestic marine terminal operators under the Shipping Act. In 

addition, the FMC is responsible, under the Foreign Shipping Practices Act of 1988, for 

investigating whether laws, rules, regulations or practices of foreign governments, or the 

practices of foreign carriers result in the existence of unfavorable conditions in U.S. trades. 

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

operators (MTOs) that wish to establish agreements that would benefit from antitrust immunity 

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

when they are initially filed, and before they take effect. The FMC allows agreements to proceed 

when they do not cause competitive harm. The FMC is authorized pursuant to section 6(g) of the 

Shipping Act to seek appropriate injunction relief against any agreement which is likely to result 

in a reduction in competition of the sort that could be expected to unreasonably raise 

transportation costs or reduce transportation service. 

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

agreement parties (a) provide accompanying information needed to assess certain categories of 

agreements upon request; (b) file certain standard types of reports -- including quarterly 

economic data and/or minutes of meetings held by the agreement parties -- depending on the 

authorities sought in the agreement; and (c) submit special informational reports, if the FMC 

requires them, once the agreement comes into effect. These reporting requirements, and the 

economic data and information about agreement activities they provide, allow the FMC to 

initially evaluate, and continue to monitor on an on-going basis, the conduct of the parties to 

VOCC and MTO agreements with limited antitrust immunity. 

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

of which allow cooperation to improve efficiency, allow sustainable growth, or respond to new 

or imminent environmental regulations. The FMC gives consideration to likely efficiency, 

sustainability, and environmental benefits when evaluating their net impact on competition, 

transportation cost, and transportation service. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 94 
 

 

Federal Maritime Commission 

Strategic Goal 1: 

Maintain an efficient and competitive international ocean transportation system 

Objective 1: 

Identify and take action to address substantially anti-competitive conduct or unfavorable trade conditions in U.S. trades 

Performance Measure 1: Percentage share of total U.S. international oceanborne trade moved by containership, as an 

indicator of liner efficiency 

FY 2010 

Plan 

FY 2011 

Target Target 

FY 2012 

18.00% 18.50% 19.00% 

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

conditions affecting U.S. carriers in the U.S. oceanborne trades, when such conditions do not 

exist for foreign carriers or others providing maritime or maritime-related services in the U.S. 

Section 9 of the Shipping Act also charges the Commission with regulating the rates, charges, 

and rules of government-owned or -controlled carriers to ensure that they are just and reasonable. 

1.	 Strategies 

•	 Review initial agreements and amendments, including any additional information 

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

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

services. 

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

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

substantially anti-competitive conduct or unfavorable trade conditions. 

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

determine whether anti-competitive behavior or unfavorable trade conditions exist in U.S. 

trades. 

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

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

trades, and regularly review their pricing practices. 

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

impede the efficient movement of cargo. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 95 
 

 

 

 

 

Federal Maritime Commission 

•	 Assure competitive conditions in the U.S. foreign oceanborne trades by working with 

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

competitive concerns. 

•	 Preserve competition and efficiency in ocean transportation by seeking appropriate 

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

in competition, to produce an unreasonable reduction in transportation service or an 

unreasonable increase in transportation cost. 

•	 Assess, acknowledge and promote environmentally sustainable shipping practices and 

environmentally protective agreement activities. 

•	 Address disruptions in the ocean transportation marketplace by investigating carrier and 

marine terminal operator violations of the Shipping Act. 

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

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

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

•	 Make rules and regulations affecting shipping in the foreign trade not in conflict with law 

in order to adjust or meet general or special conditions unfavorable to shipping in the 

foreign trade. 

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

•	 Maintain and keep up-to-date an electronic library, accessible from the FMC’s website, 

of agreement documents so as to allow interested parties to easily search for and 

download those documents. 

2.	 Six-Year Performance Measure 

•	 Percentage share of total U.S. international oceanborne trade moved by containership, as 

an indicator of liner shipping efficiency. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 96 
 

 

 

 

 

Federal Maritime Commission 

STRATEGIC GOAL 2 

Protect the public from unlawful, unfair and deceptive ocean transportation 

practices and resolve shipping disputes. 

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

variety of their commercial activities in international ocean commerce. The FMC has a wide 

variety of responsibilities in protecting the shipping public from financial harm. 

Those responsibilities include the licensing of ocean transportation intermediaries which serve 

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

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

unjust practices by carrier or marine terminals; and the investigation and satisfaction of formal 

complaints alleging violation of the Shipping Act. To carry out its broad mission, the FMC uses 

various means including monitoring, investigation, education, enforcement, and ombuds 

services. 

The Commission, and its regional ARs, also has a role in the education of the public and of 

industry groups involved in U.S. international trade with respect to their rights and/or 

responsibilities under the Shipping Act – including informing them of available Commission 

resources that might be of use to them. 

Strategic Goal 2 

Funding Requirements by Program 

$6,474,653.16 

$799,408.96 

$225,387.70 

$13,638,761.02 

Formal Proceedings EEO IG Operational & Administrative 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 97 
 

 

 

Federal Maritime Commission 

Strategic Goal 2 

FTE Requirements by Program
 

32.43 

1.00 

3.00 

70.57 

Formal Proceedings EEO IG Operational & Administrative 

OBJECTIVE 1: 

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

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

well as those permitted by agreement to act in concert, treat shippers and other members of the 

shipping public fairly by not engaging in prohibited acts as set out in the Shipping Act. In the 

effort to identify such practices, the FMC maintains a visible presence amongst regulated 

entities, collects intelligence in a variety of ways and exchanges intelligence with other 

regulatory and law enforcement agencies. 

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

various formal and informal actions may be taken by the Commission. Formal investigations are 

initiated when violations are discovered, though often the Commission enters into settlement 

agreements ending violative activities. 

Strategic Goal 2: 

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

Objective 1: 

Identify and take action to end unlawful, unfair and deceptive practices 

Performance Measure 1: Percentage of enforcement actions taken under the Shipping Act of 1984 successfully resolved 

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

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

70.00% 72.00% 74.00% 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 98 
 

 

 

 

 

 

Federal Maritime Commission 

1. Strategies 

•	 Gather intelligence through visible and accessible presence in the regulated community in 

order to identify unlicensed OTIs and other violations. 

•	 Monitor advertising in print, television, radio and online to identify illegal practices. 

•	 Gather information related to potential unlicensed OTIs. 

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

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

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

requirements. 

•	 Audit ocean carriers and OTIs based upon information received and on a random basis. 

•	 Exchange information and liaise with other Federal, state and local investigative and 

regulatory agencies and bureaus. 

•	 Review tariffs for accessibility and accuracy. 

•	 Investigate allegations of unlawful, unfair and deceptive practices. 

•	 Efficiently prosecute alleged violations of the Shipping Act. 

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

practices. 

•	 Respond to inquiries regarding complaint history of transportation providers and advise 

consumer of means to protect themselves. 

2.	 Six-Year Performance Measures 

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

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

letter or notice. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 99 
 

 

 

 

 

 

Federal Maritime Commission 

OBJECTIVE 2: 

Prevent public harm through licensing and financial responsibility requirements. 

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

freight forwarders and NVOCCs, and ensures that OTIs have sufficient financial responsibility. 

As well, the FMC issues certificates to owners and operators of passenger vessels (PVOs) that 

have evidenced financial responsibility to satisfy liability incurred for nonperformance of 

voyages and for death or injury to passengers and other persons. 

Strategic Goal 2: 

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

Objective 2: 

Prevent public harm through licensing and financial responsibility requirements 

Performance Measure 1: Percentage of decisions completed on OTI license applications rendered within 60 calendar days of 

receipt, facilitating lawful operation of OTIs with the appropriate character and experience requirements 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

55.00% 60.00% 70.00% 

Strategic Goal 2: 

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

Objective 2: 

Prevent public harm through licensing and financial responsibility requirements 

Performance Measure 2: Percentage of cruise line operators examined during the year that have full financial coverage 

required by regulation to protect against loss from non-performance or casualty 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

90.00% 91.00% 92.00% 

1.	 Strategies 

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

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

proof of financial responsibility. 

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

PVOs’ UPR receipts. 

•	 Review and update OTI bonds and coverage amount. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 100 
 

 

 

 

Federal Maritime Commission 

2. Six-Year Performance Measures 

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

business days, facilitating lawful operation of OTIs with the appropriate character 

requirements. 

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

coverage required by regulation to protect against loss from non-performance or casualty. 

. 

OBJECTIVE 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements 

through education and outreach. 

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

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

the services offered by the FMC and the remedies available in the event of noncompliance, 

injury or unresolved disputes. 

Strategic Goal 2: 

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

Objective 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach 

Performance Measure 1: Percentage of attendees at agency-sponsored outreach presentations that rate the program as 

"Useful" in their compliance efforts 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

70.00% 75.00% 80.00% 

Strategic Goal 2: 

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

Objective 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach 

Performance Measure 2: Percentage of key Commission issuances, orders and reports are available through the 

Commission's website within 5 working days of receipt 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

70.00% 72.00% 74.00% 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 101 
 

 

 

 

 

Federal Maritime Commission 

1.	 Strategies 

•	 Maintain an accessible presence in local regulated communities. 

•	 Proactively educate regulated parties of regulatory requirements through educational 

presentations. 

•	 Maintain VOCC and NVOCC tariff location information on the agency website. 

•	 Emphasize OTI requirements to new licensees by letter. 

•	 Promote awareness of FMC licensing and financial requirements by conference 

participation and seminars. 

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

through the Commission website. 

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

and services. 

. 

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

•	 Continuously expand and update information available to the public through the website, 

including list of licensed OTIs. 

2.	 Six-Year Performance Measures 

•	 Percentage of attendees at agency sponsored outreach presentations that rate the program 

as “Useful” or “Extremely Useful” in their compliance efforts. 

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

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

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 102 
 

 

 

 

Federal Maritime Commission 

OBJECTIVE 4: 

Impartially resolve international shipping disputes through alternative dispute resolution 

and adjudication. 

Strategic Goal 2: 

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

Objective 4: 

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication 

Performance Measure 1: Number of cases opened and closed each fiscal year using ombuds or ADR services assisting 

consumers to recover goods or funds 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

550 625 700 

Strategic Goal 2: 

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

Objective 4: 

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication 

Performance Measure 2: Percentage of formal complaints or Commission initiated orders of investigation completed within 

two years of filing or Commission initiation 

Plan 

FY 2010 

Target 

FY 2011 

Target 

FY 2012 

50.00% 52.00% 54.00% 

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

seek resolution of disputes or complaints. The Commission provides ombuds services to assist 

parties in resolving complaints informally through its office of Consumer Affairs and Dispute 

Resolution and its ARs. Formal complaints of alleged Shipping Act violations may be filed for 

adjudication by an administrative law judge. Parties may seek the assistance of a trained neutral 

at any stage in a formal proceeding or in the first instance for resolution using ADR processes. 

1. Strategies 

•	 Provide ombuds services to informally resolve passenger vessel, household goods and 

other shipper complaints. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 103 
 

 

 

 

 

 

Federal Maritime Commission 

•	 Encourage the use of and provide facilitative ADR services to parties who request 

services of a trained neutral in resolving disputes and shipping problems that affect 

international ocean shipping. 

•	 Adjudicate disputes under the jurisdiction of the agency through the administrative law 

judges (ALJ), with the possibility of appeal to the Commission, use of settlement officers 

and through arbitration. 

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

behavior accordingly. 

2. Six-Year Performance Measures 

•	 Number of cases opened and closed each fiscal year using ombuds and ADR services 

assisting consumers to recover goods or funds. 

•	 Percentage of formal complaints or Commission initiated orders of investigation will be 

completed within two years of filing or Commission initiation. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 104 
 

 

Federal Maritime Commission 

Appendix A
 

Workload Statistics:
 

Office of the Secretary
 

Office of the Secretary 

Formal Proceedings Program 

Statistical Workload Sum m ary * 

Workload Units Fiscal 2010 Actual Fiscal 2011 Estimate Fiscal 2012 Estim ate 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Outputs 

On Hand 

09/30/11 Receipts Outputs 

On Hand 

09/30/12 

Commission Docketed 

Proceedings (Formal, 

Special & Informal) 10 36 42 4 30 30 6 30 30 6 

Commission Non-Docketed 

Proceedings 2 7 7 2 4 5 1 4 4 1 

Docketed Informal 

Complaints 27 8 16 19 8 12 18 8 12 14 

Agenda Items* 0 90 90 0 110 110 0 115 115 0 

Pages of Minutes* 0 112 112 0 120 120 0 125 125 0 

Federal Register Notices 0 213 213 0 265 265 0 280 280 0 

FOIA Requests 16 37 33 20 40 33 27 40 33 34 

Certifications 0 8 8 0 8 8 0 8 8 0 

*On September 11, 2009, President Obama designated then Commissioner Richard A. Lidinsky, Jr., as the Chairman of the 

Federal Maritime Commission (FMC). The Chairman is the Chief Executive and Administrative Officer of the FMC and as such 

adminstrative matters, previously handled by the three Commissioners in the absence of a Chairman, are handled directly by 

the Chairman. Hence, the reduction in Agenda Items and Pages of Minutes statistics during the Fiscal Year compared to the 

same w orkload statistics for FY 2008 and FY2009. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 105 
 

 

Federal Maritime Commission 

Office of Consumer Affairs and Dispute Resolution Services (CADRS) 

Consumer Affairs and Dispute Resolution Services 

Statistical Workload Sum mary 

Formal Proceedings Program 

Workload Units Fiscal 2010 Actual Fiscal 2011 Estimate Fiscal 2012 Estim ate 

*On Hand 

09/30/09 Receipts Output 

*On Hand 

09/30/10 Receipts Outputs 

*On Hand 

09/30/11 Receipts Outputs 

*On Hand 

09/30/12 

Informal Complaints 93 532 533 92 550 570 72 550 550 72 

ADR Matters 1 12 5 8 10 10 8 10 10 8 

Informal Docket 

Decisions 26 10 18 18 10 20 8 10 12 6 

* The number "on hand" as of 09/30/10 differs from the previous submission. This modification reflects elimination of informal

 complaints administratively closed. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 106 
 

 

 

 

 

Federal Maritime Commission 

Office of the General Counsel 

Formal Proceedings Program 

Office of the General Counsel 

Statistical Workload Summary 

Workload Units Fiscal 2010 Actual Fiscal 2011 Estimate Fiscal 2012 Estimate 

On 

Hand 

09/30/09 Receipts Output 

On 

Hand 

09/30/10 Receipts Outputs 

On 

Hand 

09/30/11 Receipts Outputs 

On 

Hand 

09/30/12 

Litigation 4 1 1 4 2 2 4 2 2 4 

Legislation 0 110 110 0 120 120 0 130 130 0 

Legal Opinions, 

recommendations, case 

summaries, decisions 

and final orders 10 105 110 5 100 100 5 105 105 5 

Sec. 19/sec. 13 (b)(5) 

FSPA Proceedings 1 0 0 1 2 1 2 1 1 2 

International affairs 

reports, policy papers, 

briefings, controlled 

carrier recommendations 0 30 30 0 35 35 0 40 40 0 

Speeches, articles, 

presentations 0 15 15 0 20 20 0 25 25 0 

Interagency & 

international group 

participation 0 30 30 0 35 35 0 40 40 0 

Response to requests for 

information, oral & 

written 0 275 275 0 280 280 0 285 285 0 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 107 
 

 

Federal Maritime Commission 

Office of the Administrative Law Judges 

Formal Proceedings Program 

Office of Administrative Law Judges 

Statistical Workload Sum mary 

Workload 

Units FY 2010 Actual FY 2011 Estimate FY 2012 Estimate 

On Hand 

09/30/09 Receipts Output 

On Hand 

9/30/10 Receipts Output 

On Hand 

09/30/11 Receipts Output 

On Hand 

09/30/12 

Form al 

Proceedings 12 10* 14* 13*** 8 11 10 8 10 8 

Special 

Proceedings 0 0 0 0 0 0 0 0 0 0 

Informal 

Proceedings 0 0 0 0 0 0 0 0 0 0 

* Includes one proceeding (07-02) remanded by the Commission. 

** One proceeding (06-06) resulting in three initial decisions (one approving a settlement agreement, tw o resolving 

 the claims) is counted a three "outputs." Includes one motion to approve settlement (09-07) refered to the Commission. 

*** Three proceedings in w hich OALJ issued an initial decision on partial settlement (10-07) or not resolving all claims

 against all parties (09-01, 10-01) are counted as "output" and "on hand. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 108 
 

 

 

Federal Maritime Commission 

Bureau of Trade Analysis 

Operational and Adm inistrative Program 

Bureau of Trade Analysis 

Statistical Workload Sum m ary 

Workload Units FY 2010 Actual FY 2011 Estimate FY 2012 Estim ate 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 Receipts Output 

On Hand 

09/30/12 

Agreements Filed 12 134 142 4 140 138 6 140 140 6 

Rulemakings, 

Proceedings, 

Petitions,Dem and 

Orders* 

0 0 0 0 2 2 0 1 0 1 

Waiver Requests 0 3 3 0 5 5 0 5 5 0 

Bureau Reports ** 0 104 104 0 104 104 0 104 104 0 

Agreement Reports

 Minutes 

 Monitoring 

 VSCG 

15 

0 

5 

963 

318 

135 

970 

318 

135 

8 

0 

5 

1,015 

330 

145 

1,015 

330 

145 

8 

0 

5 

1,100 

346 

160 

1,100 

346 

160 

8

0

5 

Service Contracts 0 45,342 45,342 0 46,248 46,248 0 47,173 47,173 0 

Contract Amds 0 350,310 350,310 0 357,300 357,300 0 364,450 364,450 0 

Special Perm issions 1 8 8 0 5 5 0 5 5 0 

NVOCC Service 

Arangements 0 1,493 1,493 0 835 835 0 800 800 0 

Arrangement Amds. 0 3,624 3,624 0 1,694 1,694 0 1,625 1,625 0 

Informal Inquiries *** 0 3,012 3,012 0 3,312 3,312 0 3,345 3,345 0 

* 

** 

*** 

Rulemakings: FY 2011. E-filing of Reports and User Fees; FY 2012 Update of Agreement Rules. 

Bureau Reports - include w eekly reports to Commissioners on agreements filed and w eekly 

Federal Register Notice reports. 

These numbers are higher than in previous years due to a change in the tracking system for 

informal inquiries and the types of inquiries included in this figure. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 109 
 

 

 

Federal Maritime Commission 

Bureau of Certification and Licensing 

Operational and Administrative Program 

Bureau of Certification and Licensing 

Statistical Workload Summary 

Workload Units FY 2010 Actual FY 2011 Estimate FY 2012 Estimate 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 Receipts Output 

On Hand 

09/30/12 

OTI Applications 

New * 

292 409 634 67 450 460 57 465 470 52 

OTI Applications 

Amended * 

128 246 354 20 275 280 15 285 285 15 

OTI License 

Terminations ** 0 345 345 0 290 290 0 300 300 0 

Passenger Vessel 

Applications 

(Performance) 1 9 8 2 15 14 3 15 15 3 

Passenger Vessel 

Applications 

(Casualty) 16 13 19 10 20 20 10 20 15 15 

* 

** Revoked or surrendered licenses not subsequently re-issued. 

requiring the issuance of a license. 

OTI application output figures include the number of: (1) approvals for license; 

(2) voluntary withdrawals; (3) closing of applications; and (4) other changes not 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 110 
 

 

Federal Maritime Commission 

Bureau of Enforcement 

Operational and Administrative Program 

Bureau of Enforcement 

Statistical Workload Summ ary 

Workload Units Fiscal 2010 Actual Fiscal 2011 Estim ate Fiscal 2012 Estimate 

*On Hand 

09/30/09 Receipts Output 

*On Hand 

09/30/10 Receipts Outputs 

*On Hand 

09/30/11 Receipts Outputs 

*On Hand 

09/30/12 

Audits and Monitoring 

Activities 18 113 116 15 130 130 15 130 130 15 

OTI Applicant and 

License Checks 0 615 615 0 625 625 0 650 650 0 

Formal Proceedings 8 3 4 7 6 6 7 7 7 7 

Civil Penalty Cases 20 7 17 10 15 15 10 15 15 10 

Staff Legal Advice* 25 13 27 11 15 15 11 17 17 11 

* Due to revisions in organization and few er staff requests for legal advice, appropriate adjustments 

have been made to account for low er numbers. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 111 
 

 

 

 

 

 

 

Federal Maritime Commission 

Appendix B
 

Certification of the Office of Inspector General’s Fiscal Year 2012 Budget Request
 

FEDERAL MARITIME COMMISSION
 

Office of Inspector General
 

Washington, DC 20573-0001
 

Office of Inspector General 

The Inspector General Reform Act (Pub. L. 110-149) was signed by the President on October 14, 

2008. Section 6(f) (1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was amended to 

require certain specifications concerning Office of Inspector General (OIG) budget submissions 

each fiscal year. 

Each inspector general (IG) is required to transmit a budget request to the head of the 

establishment or designated Federal entity to which the IG reports specifying: 

•	 The aggregate amount of funds requested for the operations of the OIG, 

•	 The portion of this amount requested for OIG training, including a certification from the 

IG that the amount requested satisfies all OIG training requirements for the fiscal year, 

and 

•	 The portion of this amount necessary to support the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE). 

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include: 

•	 An aggregate request for the OIG, 

•	 The portion of this aggregate request for OIG training, 

•	 The portion of this aggregate request for support of the CIGIE, and 

•	 Any comments of the affected IG with respect to the proposal. 

The President shall include in each budget of the U.S. Government submitted to Congress. 

•	 A separate statement of the budget estimate submitted by each IG, 

•	 The amount requested by the President for each OIG, 

•	 The amount requested by the President for training of OIGs , 

•	 The amount requested by the President for support of the CIGIE, and 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 112 
 

 

 

 

 

 

 

 

Federal Maritime Commission 

•	 Any comments of the affected IG with respect to the proposal if the IG concludes that the 

budget submitted by the President would substantially inhibit the IG from performing 

duties of the OIG. 

Following the requirements as specified above, the Federal Maritime Commission inspector 

general submits the following information relating to the OIG’s requested budget for fiscal year 

2012: 

•	 The aggregate budget request for the operations of the OIG is $799,409. 

•	 The portion of this amount needed for OIG training is $5,500, and 

•	 The portion of this amount needed to support the CIGIE is $ 2,088. 

I certify as the IG of the Federal Maritime Commission that the amount I have requested for 

training satisfies all OIG training needs for fiscal year 2012. 

Inspector General 

Federal Maritime Commission 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 113 
 

 

 

 

 

 

 

Federal Maritime Commission 

Appendix C 

Employee Satisfaction and Wellness 

Over the last several surveys of employee satisfaction and engagement conducted by the U.S. 

Office of Personnel Management, the Federal Maritime Commission (FMC) has received 

overwhelmingly positive feedback. Based on results of the 2008 Federal Human Capital Survey, 

FMC was recognized as one of the Federal Government’s Best Places to Work and Most 

Improved Small Agency. However, employees noted some areas where continued management 

attention would be desired. Based on that feedback, the FMC expanded its offerings of 

information about Federal benefits and work/life programs, and worked to increase 

organizational awareness about telework as a valuable tool for effectiveness and a way to 

enhance work/life balance. 

The 2010 Employee Viewpoint Survey results also underscored the overall high level of 

satisfaction among FMC employees. Over the last several surveys of employee satisfaction and 

engagement conducted by the U.S. Office of Personnel Management, the Federal Maritime 

Commission (FMC) has received overwhelmingly positive feedback. Based on results of the 

2008 Federal Human Capital Survey, FMC was recognized as one of the Federal Government’s 

Best Places to Work and Most Improved Small Agency. However, employees noted some areas 

where continued management attention would be desirable. Based on that feedback, the FMC 

expanded its offerings of information about Federal benefits and work/life programs. 

•	 The Commission used its employee financial education plan to increase employee 

awareness about their benefits. 

o	 The Social Security Administration helped educate FMC employees about how 

their benefits fit into Federal retirement planning at an Open Season Benefits 

Fair. 

o	 Information about Long Term Care Insurance was provided in a session offered 

in partnership with other Small Agency Human Resources Council members, 

and a subsequent webinar augmented this information. 

o	 The Commission’s Employee Assistance Program contract provides access to a 

financial consultant via telephone at no cost. 

•	 The Commission offers three employee newsletters on an ongoing basis that target 

wellness and benefits information to employees at various career and life stages and it 

promotes the Feds Get Fit Challenge annually. 

Over the last year, FMC also worked to increase organizational awareness about telework as a 

valuable tool for effectiveness and a way to enhance work/life balance by benchmarking best 

practices and adapting them to FMC’s mission and culture. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 114 
 

 

 

 

 

 

 

Federal Maritime Commission 

The 2010 Employee Viewpoint Survey (EVS) results also underscored the overall high level of 

satisfaction among FMC employees. Rankings for agencies on many of the dimensions related 

to employee satisfaction and engagement (such as Teamwork, Effective Leadership, Family 

Friendly Culture and Benefits, and Work/Life Balance) found FMC among the top 10 small 

agencies once again. 

In its efforts to continue improving employee satisfaction and engagement, FMC analyzed each 

survey item’s responses to identify areas to focus its actions in the coming year. An analysis of 

the EVS questions with relatively lower positive responses showed that all except one exceeded 

the government-wide average. However, two areas emerged as challenges for FMC 

management: work/life programs to help employees with child care and elder care, and 

employee perceptions of the link between performance results and associated feedback and 

recognition. The agency has developed action plans for these two areas. Information about 

work/life programs will be enhanced through electronic and print media and through agencysponsored information sessions, such as the annual Open Season Benefits Fair. The link between 

employee performance and consequent feedback and recognition will be strengthened through 

training for all managers, supervisors, and employees on the recently redesigned performance 

management system. The Office of Human Resources will augment this training with ongoing 

support for supervisors as they carry out their performance management responsibilities 

throughout the year. Results of FMC’s efforts to improve employee satisfaction and engagement 

will be measured by the next annual administration of the Employee Viewpoint Survey. 

An analysis of the questions with lower positive responses showed that all except one exceeded 

the government-wide average. However, work/life programs to help employees with child care 

and elder care, and employee perceptions of the link between performance results and associated 

feedback and recognition represent challenges for FMC management. The agency has developed 

action plans for these two areas that include enhanced access to work/life program information 

and training for all managers, supervisors, and employees on the recently redesigned 

performance management system. 

In September 2010, the Commission completed a needs assessment of health and wellness 

services available to employees who work at its headquarters. The assessment was conducted 

using the WellCheck online tool made available by the U.S. Office of Personnel Management 

(OPM). WellCheck scored the Commission on each of the five elements identified by the U.S. 

Department of Health and Human Services as being part of a comprehensive worksite wellness 

program. Using the results of the assessment, the Commission developed a worksite wellness 

program implementation plan for fiscal year 2011. The plan identified action items for 

improving employee satisfaction and removing barriers to participation in the Commission’s 

health and wellness program. Copies of the plan were submitted to OPM and the U.S. Office of 

Management and Budget. 

Action items listed in the plan included working with the General Services Administration and 

the building management company to offer healthier food and beverage options in vending 

machines at the Commission’s headquarters, increasing the number of employees who take 

advantage of free physical exams and screenings offered by the health unit that services 

Commission employees, and using video conferencing technology to allow field employees to 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 115 
 

 

Federal Maritime Commission 

participate in health and wellness seminars offered at headquarters. As part of the planning 

process, the Commission established performance metrics for determining the success of each 

action item. The Commission will use tools such as WellCheck and the results of future 

Employee Viewpoint Surveys to evaluate the success of its implementation plan and to identify 

additional action items for creating a culture of worksite wellness at the FMC. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 116 
 

 

 

 

 

Federal Maritime Commission 

FEDERAL MARITIME COMMISSION
 

2011 EMPLOYEE VIEWPOINT SURVEY
 

ACTION PLAN
 

2011 Employee Viewpoint Survey Action Plan 

Program Improvement Initiative: Increase employee awareness of work/life programs of potential 

benefit (e.g., child care, elder care). 

Describe the barrier, problem, or deficiency being addressed: Nearly 2/3 of survey respondents 

marked “Neither Agree Nor Disagree” regarding their satisfaction with child care and elder care 

programs. (EVS Questions: 77, 78) 

Describe what is causing the barrier/problem (i.e., What is the cause?): Employees do not have a 

current need to use these programs. 

Define success or the desired outcome upon completion of action steps below, including any 

measures you plan to use to indicate success (be specific): Employees will be given periodic 

information about child care and elder care programs and they will be able to access information 

on an “as needed” basis; positive survey responses regarding satisfaction will increase. 

Primary Action Planning Team (note lead and members): Hatsie Charbonneau (lead), David 

Kaplan 

Action Steps 

Actions to be Taken Key Deliverables/Output Start Date/ 

End Date 

Responsible 

Party 

(Parties) 

Budget, 

Resources, 

and 

Approvals 

Needed 

Continue to provide 

information periodically 

about child care and elder 

care programs. 

Email messages to All 

Employees; information 

sessions, as available 

October 1, 

2010/ 

September 

30, 2011 

OHR HR Director 

Make instructions for 

accessing information 

about child care and elder 

care readily available. 

OHR information on the web October 1, 

2010/ 

September 

30, 2011 

OHR HR Director 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 117 
 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission 

Appendix D
 

FEDERAL MARITIME COMMISSION
 

FEDERAL DATA CENTER CONSOLIDATION INITIATIVE
 

FINAL PLAN
 

Objective 

The FMC is committed to the Administration’s Data Center Consolidation Initiative. We have 

determined that we can efficiently and effectively deliver IT services through storage and server 

virtualization. The agency’s data center houses all FMC information technology equipment. The 

data center is located in 200 square feet of space in FMC Headquarters. Our total data storage 

capacity is 8TB. We have used 60 percent (4.8TB) of this space. We have three server racks that 

house 20 Windows-based servers and one Linux-based server. The FMC has started its data 

center consolidation initiative beginning January 2011 and FMC’s data center facility and IT 

infrastructure services consolidation project was completed in December 2010. The 

consolidation reduced the amount of equipment racks to two. The agency has reduced our 

Windows-based servers from 20 servers to 10 servers. We continue to support 1 Linux-based 

server. 

Data Center Consolidation Goals 

This effort included re-engineering the IT infrastructure considered necessary to support the 

mission and administrative activities of the FMC. Specific technology-related components of the 

IT data center facility and IT infrastructure services consolidation included: 

•	 Data center facility: (1) evaluation of current data center capacity; (2) forecast of future 

data center needs; (3) recommendation for best use of and operation of existing facilities; 

and (4) sourcing of additional / future data center capacity at the FMC. 

•	 Infrastructure services: (1) evaluation of current infrastructure assets and technologies; 

(2) identification of the needs and of infrastructure services related to data center, servers, 

storage, data management, IT management systems, security and disaster recovery; and 

(3) specification of the infrastructure standards and architecture necessary to support 

FMC services. 

•	 Shared computing platforms including the hardware and software for the virtualized 

server environment, shared storage arrays, peripherals, database management system 

monitoring and management, and opportunities to leverage “cloud-computing” as a 

component of FMC IT infrastructure. 

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 118