Federal Maritime

Commission

Fiscal Year 2022

Budget Justification

Daniel B. Maffei

Chairman

May 2021
 Competition and Integrity for America’s Ocean Supply Chain i

Federal Maritime Commission FY 2022 Budget Justification

Table of Contents

Mission Statement ..........................................................................................................................1

FY 2022 Budget Request .................................................................................................................2

Proposed Appropriation Language: Salaries and Expenses....................................................... 2

Needed Resources for FY 2022 ................................................................................................... 2

Workforce................................................................................................................................3

Rent - Headquarters and Field Office Space ...........................................................................3

IT Modernization, Data Management, and Cyber Security ....................................................3

Activities of the FMC and Actions Planned for FY 2022.............................................................. 5

Coronavirus (COVID-19) Impact and Actions..........................................................................6

Strategic Plan Activities...........................................................................................................7

Inspector General Request and Certification............................................................................ 20

Appendices....................................................................................................................................22

Appendix A: Resource Allocation by Program, Year and Goal................................................. 23

Appendix B: Obligations by Object Class.................................................................................. 24

Appendix C: Relationship of Obligations to Outlays ................................................................ 25

Appendix D: Organization and Members................................................................................. 26

Appendix E: Performance Goals............................................................................................... 28

Appendix F: Workload Statistics............................................................................................... 29

Appendix G: Unfinished Regulatory Proceedings .................................................................... 30
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Federal Maritime Commission FY 2022 Budget Justification

Mission Statement

Ensure a competitive and reliable international ocean transportation supply system that 

supports the U.S. economy and protects the public from unfair and deceptive practices.

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

the international ocean transportation supply system (both liner carriers and ocean 

transportation intermediaries). This system is vital to the Nation’s commerce.

Congress created the FMC to administer and enforce the Shipping Act and related laws. The 

principal statutes administered by the Commission, codified at 46 U.S.C. §§ 40101-44106 and 

§ 3503, are:

• The Shipping Act of 1984, as amended (Shipping Act);

• The Foreign Shipping Practices Act of 1988 (FSPA);

• Section 19 of the Merchant Marine Act, 1920 (1920 Act); 

• Sections 2 and 3 of Pub. L. No. 89-777, 80 Stat. 1350; and

• Section 834 of the Frank LoBiondo Coast Guard Authorization Act of 2018 (LoBiondo Act).

The primary goals of the Commission are to: (1) maintain a competitive and reliable international 

ocean transportation supply system, and (2) protect the public from unlawful, unfair, and 

deceptive practices. The Commission achieves its mission by ensuring that the fundamental 

dynamics of a free, open, and competitive ocean transportation market drive economic 

outcomes. 
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Federal Maritime Commission FY 2022 Budget Justification

FY 2022 Budget Request

Proposed Appropriation Language: Salaries and Expenses

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. 46107), including services as authorized 

by section 3109 of title 5, United States Code; hire of passenger motor vehicles as authorized by 

section 1343(b) of title 31, United States Code; and uniforms or allowances therefore, as 

authorized by sections 5901 and 5902 of title 5, United States Code, $30,873,000: Provided, that 

not to exceed $3,500 shall be for official reception and representation expenses. (Transportation, 

Housing and Urban Development, and Related Agencies Appropriations Act, 2021.)

Needed Resources for FY 2022

The FMC respectfully requests $30,873,000 to maintain ongoing hiring efforts to reach a staffing 

level of 128 full time positions (FTP). This request supports approximately 124.8 full time 

equivalents (FTEs). The difference between FTP and FTE is due to partial year vacancies in staff 

positions created by the time lag between departures and/or retirements and onboarding of 

replacement staff. This staff level will give the Commission the ability to meet its mission and 

maintain a high level of performance in FY 2022. 

FMC Budget Request

By Year and Program

Program FY 2020 FY 2021 FY 2022 FY 2022 - FY 

2020 Change

FY 2022 - FY 

2021 Change

O&A $26,921,218 $29,746,256 $30,295,219 $3,374,001 $548,963

OIG $490,223 $553,744 $577,781 $87,558 $24,037 

Total FMC $27,411,441 $30,300,000 $30,873,000 $3,461,559 $573,000 

Historically, the appointed Commissioners and professional FMC staff have developed targeted 

and fiscally responsible agency budgets consistent with its statutorily mandated mission and the 

Administration’s objectives. The $30,873,000 request is a continuation of the previous years’ 

fiscally responsible budgets and seeks to carefully balance workforce requirements to meet 

strategic performance goals, while continuing to develop and deploy the modernized information 

technology (IT) applications expected of the Commission by American businesses and taxpayers. 

The FMC’s request reflects a review of all requirements for cost-reduction opportunities with a 

focus on strategies to reduce or contain costs associated with personnel, contracting, travel, and 

training. 
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Federal Maritime Commission FY 2022 Budget Justification

Three expense categories comprise over 93% of FMC’s Budget:

• Workforce - Salaries/Benefits are 72.1 percent;

• Office Lease/Building Security is 14.8 percent; and

• IT and Cyber Security is 6.6 percent.

Workforce

The Commission’s workforce accomplishes its mission efficiently with its current appropriated 

resources. FY 2022 funding is needed to support the FMC’s staff of economists, attorneys, and 

experts in ocean transportation. Augmenting its Washington, D.C. headquarters staff (118 FTPs), 

the Commission maintains a presence in six major port locations nationwide (10 FTPs). 

Current projections for FY 2021 and FY 2022 are to hire to our desired full FTP level of 128 with an 

FTE projection of 124.8. This projection is based on overall workload – the Commission has 

prioritized IT funding and automation efforts, but staff are also needed to complete the 

Commission’s mission.

Fiscal Year President’s Budget FTPs Actual or Projected FTEs

2018 127 116.0

2019 129 112.4

2020 128 111.2

2021 128 121.0

2022 128 124.8

Rent - Headquarters and Field Office Space

The FMC’s annual FY 2022 rent estimate for physical space is $3,362,168 and an additional 

$352,000 for estimated escalation of taxes, for a total of $3,714,168. FY 2022 security costs, 

attributable primarily to the FMC’s headquarters office space, are estimated at $877,382. 

Security costs are determined by the Federal Protective Service (FPS) working in conjunction with 

the building’s Federal Security Committee.

The FMC is headquartered in Washington, D.C. and maintains a small field presence in six port 

locations within the U.S. All FMC office space is leased through the GSA. The FMC follows federal 

best practices to align the size of federal real property assets with program needs and will

continue to evaluate its space needs going forward. The Commission’s current effort optimizes

office space use with the goal of reducing rental costs when possible. 

IT Modernization, Data Management, and Cyber Security

Funding at the requested $30,873,000 level will allow the Commission to continue its long-term IT 

modernization projects, enhancing both public-facing services and internal workflow processes. 
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Federal Maritime Commission FY 2022 Budget Justification

The FMC’s ongoing investments in its IT infrastructure has allowed it to remain fully operational 

under maximum telework flexibilities during the ongoing COVID-19 pandemic.

In FY 2022, the Commission will be working on the final stages of implementing critical updates to 

the FMC-18 Ocean Transportation Intermediary (OTI) License and Registration Application, and 

the agency’s Regulated Persons Index (RPI), as well as modernizing the Passenger Vessel Operator 

(PVO) system (for managing application filing, processing, and reports), the Commission’s 

electronic reading room, and the dockets filing system for Commission proceedings. 

These planned initiatives continue the work of previous budget cycles, which allowed the FMC to 

prioritize IT development, inclusive of mission-critical IT contract support. This multiyear strategy 

committed a dedicated funding stream to planned IT initiatives for both currently underway and 

projected initiative development. Current and future investments in IT development are 

necessary to sustain and improve future performance and quality of the IT network systems and 

programs essential to support the FMC’s mission and operations. 

The projected costs include contractor-provided software engineering services to assist the 

Commission’s IT staff to modernize its infrastructure, server platforms, and mission-critical web 

applications, while providing on-site, hands-on training and knowledge transfer. Although prior 

years’ IT expenditures have set the stage for implementing the FMC’s application modernization 

plan, the goal of completing and successfully deploying our modernized FMC-18 enterprise 

application requires continued funding.

Continued IT development to facilitate processing of agency workload and delivery of services to 

the shipping industry are necessary to assist current staffing levels with increased volume of 

license applications filed, license renewals processed, carrier and marine terminal operator (MTO)

agreements requiring review and analysis, etc. These planned IT improvements are critical to 

restraining future personnel growth and permitting options for the FMC to reallocate existing 

personnel to the strategic program needs of the future. 

The Commission will continue to improve public access to data. In addition to FMC-developed

systems, the Commission will modernize its digital consent and access to information by 

leveraging cross-government tools such as login.gov and forms.gov. In FY 2022, the Commission 

will offer a digital services option to ensure that individuals have the ability to digitally request 

access to, or to consent to disclosure of their records for Privacy Act and Freedom of Information 

Act (FOIA) requests. 
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Federal Maritime Commission FY 2022 Budget Justification

Activities of the FMC and Actions Planned for FY 2022

This section provides an overview of the programs and work of the FMC that this budget request 

supports and the work that will be accomplished with a $30,873,000 funding level. 

International ocean shipping is vital to the Nation’s commerce, moving more than $1 trillion in 

U.S. exports and imports each year.

1 The FMC’s significant statutory mandate – to ensure a 

competitive and reliable international ocean transportation supply system that supports the U.S. 

economy and protects the public from unfair and deceptive practices – is an undertaking 

accomplished by a relatively small number of talented and dedicated shipping industry experts 

with a very modest budget and workforce complement. Continuing a trend that has spanned the 

past decade, the international ocean transportation industry continues to adjust and react to 

challenging market conditions and, in recent months, a global pandemic. Carriers and MTOs have 

been forced to find ways to cut costs and realize greater efficiencies, whether individually or 

through consolidation, mergers, or operational cooperation with their competitors under 

agreements filed with the FMC. These changes in carrier and MTO-concerted activity and market 

structure likewise require the FMC to quickly respond by timely and efficiently analyzing the 

competitive impact of proposed agreements in the vessel-operating common carriers (VOCC) and 

MTO industries to guard against possible anticompetitive abuse of the filed agreement authority; 

to avoid unreasonable increases in transportation costs or decreases in transportation services; 

and to address other activities prohibited by the Shipping Act.

1 According to the U.S. Census Bureau: Economic Indicators Division USA Trade Online. Source: U.S. Import and 

Export Merchandise trade statistics, U.S. exports and imports totaled $1,083,854,025,082 in 2019.
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Federal Maritime Commission FY 2022 Budget Justification

Coronavirus (COVID-19) Impact and Actions

The novel SARS-CoV-2 virus that causes the COVID-19 disease reached pandemic level in March 

2020 and disrupted the global shipping industry and the cruise industry. The Commission has 

continued to work remotely, utilizing the IT systems developed and deployed as part of its multiyear modernization efforts, and will continue to be responsive to changes in industry conditions 

and needs during and after the pandemic.

In response to the negative impacts on the U.S. economy caused by the COVID-19 pandemic, the 

Commission aggressively responded by taking quick and meaningful action to help the shipping 

industry and the American economy in recovery, including implementing service contract filing 

relief, facilitating stakeholder discussions on supply chain challenges, and implementing 

temporary relief for small U.S. cruise businesses. The relief extended to the industry made during 

this period is likely to continue indefinitely, requiring staff resources to manage Commission 

assistance to the shipping public.

Providing Industry Regulatory Relief: The FMC granted shippers and carriers more flexibility in

meeting service contract filing requirements. Effective June 2, 2021, the new rule amends 

existing FMC regulations so ocean carriers are able to file original service contracts with the 

Commission up to 30 days after they go into effect. This change was prompted by positive 

industry response to the temporary service contact filing relief provided during the pandemic to 

minimize COVID-19 related impacts to the supply chain. That temporary relief expires on June 1, 

2021. The filing change provides consistent treatment of initial service contracts and 

amendments and continued flexibility for carriers while retaining filing and FMC oversight of 

service contracts. In making its decision, the Commission carefully weighed the regulatory 

burden on regulated entities and the need for the FMC to carry out its mission and statutory 

oversight of service contracts. Information on this, and other pending regulatory proceedings, is 

found in Appendix G, the Commission’s biennial report to Congress on the status of unfinished 

regulatory proceedings.

Addressing Supply Chain Challenges: The COVID-19 pandemic has highlighted the economic 

urgency of responsive port and terminal operations to the effectiveness of the United States’

international freight delivery system. Given its mandate to ensure an efficient and reliable

transportation system for ocean commerce, the Commission has a clear and compelling 

responsibility to actively respond to current challenges impacting the global supply chain and the 

American economy. On March 31, 2020, the Commission initiated Fact Finding 29, International 

Ocean Transportation Supply Chain Engagement. This ongoing investigation convened supply 

chain innovation teams to address port and terminal operational challenges in the wake of the 

COVID-19 pandemic and will continue to make industry recommendations as warranted. By 

Order issued on November 19, 2020, this investigation was expanded to investigate whether 

alliances are employing practices or regulations in violation of 46 U.S.C. § 41102(c) including, but 

not limited to, practices and regulations related to demurrage and detention in light of 46 C.F.R. § 
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Federal Maritime Commission FY 2022 Budget Justification

545.5, empty container return, and practices related to the carriage of U.S. exports. In February 

2021, the Fact Finding Officer announced issuance of information demand orders to ocean 

carriers and marine terminal operators to determine if legal obligations related to detention and 

demurrage practices are being met. 

Addressing Cruise Industry Challenges: COVID-19 has also severely impacted the cruise industry. 

On March 14, 2020, the Centers for Disease Control and Prevention (CDC) issued a No Sail Order 

and Suspension of Further Embarkation causing all but the smallest PVOs to cease all operations, 

which was extended through October 2020. Consequently, questions concerning future travel 

and passengers’ ability to obtain refunds of monies remitted for transportation disrupted by 

COVID-19 were legion. On April 30, 2020, the Commission initiated Fact Finding 30, COVID-19 

Impact on Cruise Industry, to engage industry stakeholders, including PVOs, passengers, and 

MTOs, to identify commercial solutions to COVID-19-related issues that interfere with the 

operation of the cruise industry. On July 23, 2020, the Commission adopted a proposal put 

forward by the Fact Finding Officer providing limited and temporary relief to small U.S. passenger 

vessel operators whose operations and business had been disrupted by the response to COVID19. Small passenger vessel operators may now qualify for alternative forms of evidence of 

financial responsibility, provided applicants meet key conditions. The relief remained in effect 

until April 1, 2021. On September 23, 2020, the Fact Finding Officer issued an interim report on 

the impact of COVID-19 on the cruise industry. On October 20, 2020 and December 16, 2020, the 

Fact Finding Officer issued interim reports on the impacts on the cruise industry for the U.S. 

Pacific Northwest and Gulf Coasts. On March 17, 2021, the Fact Finding Officer issued an interim 

report on the impacts on California, Hawaii, and U.S. Pacific Territories. Investigative efforts will 

continue during the pandemic and recovery to assist with identifying commercial solutions to 

COVID-19-related issues that interfere with the operation of the cruise industry. 

Strategic Plan Activities 

The Commission’s FY 2018-2022 Strategic Plan provides the framework to address current and 

anticipated challenges in the ocean transportation industry. The FMC’s Strategic Plan calibrates 

performance measures to ensure that the Commission is meeting its statutory mission and the 

needs of a constantly evolving ocean shipping industry. The Strategic Plan is a living document, 

flexible and adaptable, as the shipping industry evolves and it addresses emerging challenges, 

while providing clear and measurable targets that will drive continuous improvement in the 

FMC’s performance. Detailed performance information can be found in the FMC’s annual 

Performance and Accountability Report on the FMC’s website.

Development and drafting of the Commission’s FY 2022-2026 Strategic Plan is underway and will 

be finalized during FY 2022. During development of the FY 2022-2026 Strategic Plan, the 

Commission will consider evidence-building efforts in its program activities. Program evaluations, 
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Federal Maritime Commission FY 2022 Budget Justification

monitoring activities, and analyses will continue to be used to rigorously and credibly document 

program effectiveness.

During the strategic planning process, the Commission will also address potential inequities 

affecting underserved communities. By reviewing policies and programs that it administers, the 

FMC will look introspectively to ensure consistent and systematically fair, just, and impartial

treatment of individuals in underserved communities that may have been denied such treatment

in the past. In FY 2021, the Commission will also complete equity assessments of its services 

under Executive Order 13985 and may incorporate recommendations into its strategic plan when 

appropriate.

The Commission’s current FY 2018-2022 Strategic Plan contains two strategic goals. With 

necessary funding, the FMC will fully meet its mission and strategic goals. Planned activities for 

the upcoming year and FY 2022 will continue to support the FMC’s mission and goals. 

Strategic Goal 1. Maintain a competitive and reliable international ocean transportation 

supply system

The requested $30,873,000 budget will provide $10,239,133 in funding towards Strategic Goal 1. 

Through the activities under this goal, the Commission analyzes and evaluates the competitive 

impact of the shipping industries’ practices, detecting and addressing, as necessary, any 

unreasonable increases in transportation costs and/or unreasonable decreases in transportation 

services for the benefit of U.S. exporters/importers and the U.S. consumer. 

Objective: Ensure that actions under filed agreements do not result in unreasonable increases 

in transportation costs and/or unreasonable decreases in transportation services

The FMC ensures that America’s international ocean transportation supply system provides the 

public with competitive and reliable movement of goods by monitoring, analyzing, and evaluating 

the competitive impact of the shipping industry’s practices, detecting and addressing, as 

necessary, any unreasonable increases in transportation costs and/or unreasonable decreases in 

transportation services. In analyzing and taking actions on agreements filed with the 

Commission, it balances the cost-containment strategies and cooperative working arrangements 

among carriers or MTOs with the legitimate business needs of the Nation’s many 

exporters/importers to ensure that their goods reach international markets efficiently and 

reliably. In upcoming fiscal years, the FMC will continue its focus on competition and integrity for 

America’s ocean supply chain by:

• Analyzing and monitoring key U.S. trade lanes;

• Assessing the competitive effects of agreement parties’ activities, particularly focusing on 

issues of costs (freight rates), vessel capacity (supply), and equipment availability upon the 

business community; 

• Licensing our Nation’s OTIs, and registering foreign-based NVOCCs;
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Federal Maritime Commission FY 2022 Budget Justification

• Administering an effective surety bond program to ensure payment of claims against OTIs;

• Investigating violations of the Shipping Act, FSPA, and 1920 Act; and

• Monitoring changes taking place in the provision of chassis for the inland movement of 

containerized goods, and the competitive effects of changing carrier alliance structures, 

particularly as they may affect concerted procurement of carrier services in U.S. ports.

Agreements Review

The FMC’s statutory authority and regulations require the filing of written agreements with the 

Commission to ensure that the parties’ activities comply with U.S. shipping statutes and 

regulations. These written agreements memorialize cooperation among carriers and/or MTOs. 

The Commission analyzes these agreements when they are initially filed and then monitors the 

agreements on an ongoing basis. There are approximately 400 agreements on file and monitored 

by the Commission, including approximately 90 MTO agreements.

Through data provided in agreements and agreement monitoring reports, Commission staff 

analyze market conditions in key U.S. liner trades. Using this information, the Commission 

identifies and researches economic or commercial issues that may distort competition in, or 

impair access to, U.S. liner markets and tracks and assesses developments in international trade 

and the global economy. 

Agreements filed with the FMC remain a valuable tool for carriers and MTOs to cooperate and 

achieve efficiencies and cost savings for U.S. shippers and ultimately, the U.S. consumer. The 

requested budget level will:

• Enable the Commission to timely review and prepare competitive analyses for both newly 

filed agreements and amendments to existing agreements; and 

• Allow for effective management and review of multiple major agreements in the same 

45-day review period.

Recent Statutory Changes to Agreement Activities and Commission Analysis 

The recently enacted LoBiondo Act places restrictions on cooperation between or among ocean 

carriers and MTOs, including removing antitrust immunity for certain activities, prohibiting 

certain joint procurement activities, restricting overlapping agreement participation, and 

modifying the legal standard for enjoining agreements to jointly procure certain covered services, 

including: 

• The berthing or bunkering of a vessel;

• The loading or unloading of cargo to/from a vessel, or to/from a point on a wharf or 

terminal;

• The positioning, removal, or replacement of buoys related to the movement of the vessel; 

or
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Federal Maritime Commission FY 2022 Budget Justification

• Towing vessel services provided to a vessel.

Section 703 of the LoBiondo Act also requires that the Commission annually provide to Congress: 

(1) an analysis of the competitive impact of ocean carrier alliance joint purchases of the covered 

services mentioned above; and (2) a summary of actions, including corrective actions, taken by 

the Commission to promote competition.

The Commission may issue a request for additional information on an agreement, and/or 

negotiate a language change with filing parties to alleviate reduction in competition concerns. 

Agreements with potential competition issues may ultimately be withdrawn by filing counsel 

after negotiations with the Commission. Additionally, the LoBiondo Act permits the Commission 

to seek an injunction if it determines that an agreement is likely “to substantially lessen 

competition in the purchasing of certain covered services.” 46 U.S.C. § 41307(b)(1). This new 

legal standard may be applied to existing agreements as well as any agreements filed in the 

future.

With respect to vessels operated by an ocean common carrier in the United States, the LoBiondo 

amendments to the Shipping Act stipulate that no group of two or more common carriers may 

negotiate for the purchase of certain covered services unless the negotiations and any resulting 

agreements are not in violation of the U.S. antitrust laws (46 U.S.C. § 41105(6)). The U.S. 

Department of Justice (DOJ) and the Federal Trade Commission (FTC) have jointly issued guidance 

on the appropriate safeguards that should be implemented when market participants engage in 

joint purchasing. In FYs 2021 and 2022, the FMC will continue to monitor and report on jointly 

negotiated terminal and stevedoring services agreements to ensure conformity with the DOJ/FTC 

guidelines for joint purchasing arrangements. 

Marine Terminal Operator Agreements

As referenced above, the Commission monitors approximately 90 MTO agreements serving the 

U.S. East, Gulf, and West coasts. To facilitate operations, some U.S. marine terminals enter into 

agreements on rates and/or terminal charges or cooperate in their daily terminal operations and 

related practices. 

Commission review and analysis of agreement filings frequently result in discussions with filing 

counsel on potential anticompetitive issues and often result in negotiated revisions to 

agreements that resolve issues without formal Commission action. For example, in FY 2020, the 

Commission completed reviews and economic analyses of amendments to the Puerto Nuevo 

Terminals LLC Cooperative Working Agreement, FMC No. 201292-001 and -002. The initial 

agreement between two MTOs at the Port of San Juan, PR, formed a joint venture to combine 

their facilities into a single marine terminal. This was a complicated agreement filing and 

required prolonged internal and external meetings with the parties and filing counsel, and 

development of questions for a formal request for additional information to determine whether 
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Federal Maritime Commission FY 2022 Budget Justification

the agreement fell within the Commission’s jurisdiction. After withdrawing the first amendment, 

a second amendment was filed that maintains the parties as separate terminals and forms a joint 

shared terminal management company that may act as agent on behalf of the parties. 

During FY 2020, the Bureau of Tariff Analysis (BTA) continued a comprehensive review of the 

status of MTOs and removed from the Commission’s website those that are no longer active in 

providing MTO services. MTO agreements may now be filed and amended using the online 

eAgreements system, which eliminates the administrative burden associated with paper filings. 

In addition, for those MTOs that elect to make their MTO schedules publicly available, BTA staff

verified the internet location where those schedules are published and updated the FMC website 

accordingly to provide more current information to the shipping public to inform their business 

decisions.

Service Contracts and Tariffs 

The Commission oversees the process by which service contracts between shippers and VOCCs 

are filed with the Commission. Under service contracts, shippers make a commitment to provide 

a certain volume or portion of cargo over a fixed period of time, and carriers commit to a 

specified rate and a defined service level. These confidential contracts are filed with the 

Commission in its automated SERVCON system. Commission rules also permit NVOCCs to enter 

into NVOCC service arrangements (NSAs) with their shipper customers, which are similar to 

service contracts between VOCCs and shippers. In 2018, the Commission exempted NVOCCs 

from the requirement to file NSAs into SERVCON and eliminated the corresponding NSA Essential 

Terms publication requirements. Commission Docket No. 20-02, finalized in FY 2020, provided 

substantial regulatory relief to VOCCs by removing the requirement and associated costs to 

publish essential terms of each individual service contract filed with the Commission.

On its website, the FMC maintains an up-to-date electronic listing of ocean carrier tariff locations 

for the public’s use in identifying ocean carriers’ publicly available rules and rates for the 

transportation of cargo. The FMC’s transportation analysts also research, verify, and maintain a 

listing of marine terminal schedule locations on the Commission’s website for the shipping public 

to inform their business decisions. 

The Commission provides regulatory relief from its NVOCC rate tariff requirements by exempting 

licensed and foreign-registered NVOCCs when using NVOCC Negotiated Rate Arrangements 

(NRAs). NVOCCs have indicated that NRAs, which are not required to be published or filed with 

the Commission, are a less burdensome commercial pricing option than rate tariffs, which must 

be published. Consequently, NVOCCs advised that NRAs save them both time and money. In 

August 2018, the Commission provided further regulatory relief to NVOCCs by significantly 

expanding the commercial flexibilities available to NVOCCs and their shippers under NRAs (see 

Docket No. 17-10). The majority of NVOCCs which have implemented NRAs continue to use a 

combination of NRAs and tariff rate filings. 
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Federal Maritime Commission FY 2022 Budget Justification

Commission rules also granted regulatory relief from rate tariff requirements by allowing NVOCCs 

to offer transportation services pursuant to individually negotiated, confidential service 

arrangements with customers, termed NVOCC Service Arrangements (NSAs), rather than under a 

published tariff. The Commission expanded this regulatory relief to NVOCCs by eliminating the 

requirement to file NSAs and their amendments with the Commission as of August 22, 2018 (also 

see Docket No. 17-10). As a pricing option, NSAs are more commonly offered by larger volume 

NVOCCs. Smaller volume NVOCCs tend to use NRAs and tariff rates as pricing options for their 

shipper customers.

Since the FMC’s rulemaking in Docket No. 17-10 expanded commercial flexibilities for NVOCC rate 

arrangements and eased the regulatory burden associated with NSAs, the FMC has regularly 

provided guidance to NVOCCs seeking to expand NRA offerings to their shippers or to introduce 

NRAs as a pricing option to their customers. The FMC has also advised NVOCCs of the regulatory 

relief for NSA requirements and has participated in outreach efforts to facilitate the industry’s 

ability to take advantage of the NRA and NSA regulatory changes. The Commission will continue 

to provide such guidance in the upcoming fiscal years. 

During FY 2020, more than 45,000 service contracts and nearly 800,000 contract amendments 

were filed into the SERVCON system by 76 VOCCs. At the end of the fiscal year, the FMC had 

posted more than 6,000 active/current publicly available tariff locations to the agency’s website. 

Original service contract filings are expected to nearly double to 90,000 in FY 2021 and increase 

to 95,000 in FY 2022, due to changes in carrier contracting practices. Service contract 

amendments are expected to increase to 840,000 in FY 2021 and are expected to continue to 

increase in FY 2022.

The FMC is working to optimize the internal architecture of its SERVCON filing system for service 

contracts to ensure the search functionality keeps pace with the rapid accumulation of records in 

the system. The Commission continued to reach out to various service contract filers to 

encourage the use of web services when filing service contracts to increase efficiency, reduce 

costs, and eliminate frequent filing errors. The Commission anticipates that its workload through 

2021 and 2022 will remain relatively steady with respect to service contracts. 

The FMC’s work in this area is also impacted by the continual entry and exit of various OTIs to and 

from the market, which requires ongoing monitoring and verification by the FMC’s transportation 

analysts to ensure that an accurate listing of tariff publication locations on the Commission’s 

website is maintained and also to ensure that published tariffs meet the Commission’s tariff 

requirements. In addition, the FMC has substantial responsibilities associated with monitoring 

VOCC tariffs for compliance and verifying that VOCCs continue to operate as common carriers in 

the U.S. waterborne foreign commerce. This FMC work ensures that all VOCCs and OTIs follow 

the requirements of the Shipping Act and that the rates and terms of shipping contracts are clear 

and unambiguous to shippers prior to tendering cargo. 
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Federal Maritime Commission FY 2022 Budget Justification

International Affairs 

The Commission’s international affairs program monitors foreign shipping laws and practices that 

may have an adverse effect on the industry and makes recommendations to the Commission for 

investigating and addressing such practices. The Commission has the authority to address 

restrictive foreign shipping practices under the 1920 Act and FSPA. 

The 1920 Act provides the Commission with authority to investigate and sanction discriminatory 

conditions caused by laws, rules, or regulations of foreign governments. If the Commission finds 

that such regulations result in conditions unfavorable to shipping in a U.S.-foreign trade, then the 

1920 Act provides the FMC with several remedies that include: levying fines on foreign vessels 

calling at U.S. ports, prohibiting foreign vessel calls at U.S. ports, and restricting cargos that may 

be carried between the U.S. and the foreign country.

On March 6, 2020, the Commission received a petition from the Lake Carriers’ Association, a 

trade association made up of owners and operators of vessels on the Great Lakes, alleging that 

proposed ballast water management regulations issued by Transport Canada, an agency of the 

Government of Canada, created unfavorable conditions to shipping in the United States/Canada 

trade, pursuant to Section 19 of the 1920 Act. On June 16, 2020, the Commission formally 

initiated its investigation of pending Canadian ballast water regulations and invited interested 

parties to supplement information collected by FMC staff as they investigate allegations that 

Canadian ballast water regulations are unfavorable and detrimental to U.S.-flag Laker vessels. 

FMC staff resources are dedicated to this investigation which is ongoing and expected to continue 

in FY 2021 and FY 2022.

The FSPA directs the Commission to address adverse conditions that affect U.S. carriers in the 

foreign trade and that do not exist for foreign carriers in the United States. Part of the FMC’s 

work in FY 2022 will be to pursue potentially restrictive foreign practices, including new foreign 

legislation, new interpretations of existing legislation, and potential regulations, such as those 

concerning surcharges. The FMC will continue to participate, both formally and informally, in 

international agreement negotiations that could affect foreign-borne cargo shipments to the 

United States. The FMC will also track consumer and U.S.-flag vessel operator inquiries regarding 

possible foreign restrictive shipping practices.
 Competition and Integrity for America’s Ocean Supply Chain 14

Federal Maritime Commission FY 2022 Budget Justification

Strategic Goal 2. Protecting the public from unlawful, unfair, and deceptive practices

The requested $30,873,000 budget will provide $20,633,868 in funding towards Strategic Goal 2. 

This goal encompasses a broader mandate to protect the shipping public and consists of four 

objectives to meet this goal. 

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

The Commission effectively uses both its enforcement and compliance programs to support

investigations under the Shipping Act, the FSPA, and the 1920 Act that identify unlawful, unfair, 

and deceptive practices. 

In FY 2020, the Commission informally pursued several matters that involved potentially 

restrictive foreign practices including new legislation, new interpretations of existing legislation, 

and potential regulations. In addition, the Commission tracked consumer inquiries regarding 

possible foreign restrictive shipping practices. The Commission will continue this critical work to 

protect the public.

Enforcement Program

In September 2019, the Commission embarked on creating a new “pre-enforcement process” to 

be followed by the FMC’s Bureau of Enforcement (BOE). Commissioners voted to enhance the 

Commission’s oversight of the enforcement process by issuing a Direct Final Rule that revised civil 

penalty compromise authority previously delegated to the BOE. The revisions included advance 

notice to the subject of an investigation that BOE intends to recommend to the Commission to 

initiate enforcement proceedings and provide the subject an opportunity to submit a response 
 Competition and Integrity for America’s Ocean Supply Chain 15

Federal Maritime Commission FY 2022 Budget Justification

before an enforcement action is recommended. The process requires Commission approval 

before formal or informal enforcement action may be taken by BOE. After the Direct Final Rule 

became effective in December 2019, Commission staff were directed to develop the detailed 

steps to be followed. 

The new enforcement process was recently implemented, and the Commission will utilize these 

new procedures to guide its enforcement actions moving forward into FY 2021 and FY 2022. 

During development of the new pre-enforcement process in FY 2020, 28 investigations were 

referred for enforcement action or informal compromise, and 2 matters were administratively 

closed. Using the Commission’s new process, pre-enforcement notices have been sent to 2

subjects of investigation, with additional notices to follow. 

Enforcement-based initiatives will continue to address VOCCs and NVOCCs that engage in unfair 

service contracting practices, particularly those practices which permit unlicensed OTIs to 

compete unlawfully with carriers and OTIs operating in compliance with U.S. laws. In February 

2020, the Commission amended its regulations in accordance with the LoBiondo Act, expanding 

the class of persons that must be licensed as OTIs and meet the OTI financial responsibility 

requirements to include persons that advertise or hold themselves out as OTIs, 46 U.S.C. §

40901(a); § 40902(a); Public Law 115-282, § 707(a),(c). Previously, only persons that acted as 

OTIs were subject to the licensing and financial responsibility requirements. This regulatory 

change will allow the FMC to more easily enforce the licensing and financial responsibility 

requirements and prosecute noncompliant OTIs. It is anticipated that this clarification will also

increase our Area Representatives’ investigation workload and subsequent enforcement actions 

brought by our Bureau of Enforcement designed to protect the shipping public. 

The FMC will pursue enforcement actions against those who employ market-distorting, 

fraudulent, or anticompetitive practices harmful to the industry and the public. For example, in 

FY 2019, the Commission completed a significant informal enforcement action involving four 

carriers operating pursuant to agreements that were neither filed nor effective as required by the 

Shipping Act. The efforts resulted in a compromise agreement with the involved carriers, 

including a payment of $350,000, and in the filing of an agreement among these carriers with the 

Commission that complies with the Shipping Act. Maintaining current resource levels would 

further support FMC efforts to identify and address potential Shipping Act violations such as 

evolving concerns about misdeclaration of hazardous cargo and to what extent regulated entities 

may be involved in malpractices involving dangerous cargoes which threaten the safety of vessels, 

marine terminal facilities, and essential transport personnel.

Compliance Program

In FY 2020, the compliance and audit program continued as a key focus for the review of licensed 

OTIs’ operations, to help guide them into compliance with statutory and regulatory requirements. 

The program also reviews entities holding out as VOCCs to help establish the existence of actual 
 Competition and Integrity for America’s Ocean Supply Chain 16

Federal Maritime Commission FY 2022 Budget Justification

vessel operations. During FY 2020, 130 audits were commenced and 122 were completed. With 

funding at the requested amount, the Commission can continue to perform this critical work at 

this pace. 

International Cooperation

The Commission will continue its international outreach efforts to coordinate with foreign 

counterparts to end unlawful, unfair, and deceptive practices. FMC leaders will attend and 

coordinate events with foreign embassies and counterparts, such as the Global Maritime Forum 

Annual Summit, which brings together various industry stakeholders and regulators from around 

the world. International events, such as in-person bilateral discussions, may be cancelled or 

postponed in FY 2021 due to the COVID-19 pandemic, but with the pandemic subsiding in the 

future, may again be scheduled in FY 2022. Both in-person and virtual international discussions 

will play an important role in the global economic post-pandemic recovery. 

Cross-Agency Cooperation

The FMC is active in security initiatives as they relate to U.S. ocean commerce. The FMC makes 

use of database systems with agencies engaged in homeland security to improve identification of 

entities providing and utilizing maritime transportation services. To facilitate these activities, the 

FMC has an ongoing Memorandum of Understanding (MOU) with the U.S. Department of 

Homeland Security, Customs and Border Protection (CBP), to provide a more efficient utilization 

of existing systems and services, such as CBP’s Automated Commercial Environment (ACE). The 

FMC also has an active Inter-Agency Agreement with the Census Bureau at the U.S. Department 

of Commerce for access to the Census’ Automated Export System (AES) database. A new MOU 

with the U.S. Department of Homeland Security, Coast Guard, was executed in 2020. These 

affiliations facilitate access to confidential U.S. export shipment data, helping the FMC to 

accomplish its mission and to protect national security interests. The Nation’s economic and 

security interests are also supported by the Commission’s continued partnership with the 

National Intellectual Property Rights Coordination Center (IPR Center), a U.S. Department of 

Homeland Security-led partnership of 25 federal and international agencies targeting intellectual 

property- and trade-related crimes. This relationship has brought about coordinated 

enforcement efforts addressing international criminal activity to provide a more efficient 

utilization of existing systems and services. 

Objective 2: Prevent public harm through licensing and financial responsibility requirements 

The Commission’s certification and licensing program focuses on three primary areas: OTI

activities (licensing, registrations), OTI bond activity, and passenger vessel monitoring and 

certifications. These activities are fundamental to protecting the public from unqualified and 

underfunded shipping companies. At the requested funding level, the Commission will continue 

to quickly and efficiently process licensing applications and enforce bonding requirements, which 
 Competition and Integrity for America’s Ocean Supply Chain 17

Federal Maritime Commission FY 2022 Budget Justification

supports vital shipping and passenger vessel businesses, including small businesses critical to 

keeping U.S. exports/imports moving and job growth in this sector. 

Licensing 

Ocean transportation intermediaries are the middlemen for oceanborne cargo moving in the U.S.-

foreign trades. Before the FMC grants licenses to OTIs, each OTI applicant must establish that it 

employs a Qualifying Individual with the necessary character and a minimum of three years of 

experience in the U.S., as well as establish its financial responsibility by means of a bond, 

insurance, or other instrument, as mandated by the Shipping Act. 

Over 6,600 OTIs are regulated by the Commission, including approximately 4,900 licensed entities 

based in the United States. In addition, more than 1,700 foreign-based NVOCCs are registered 

with the Commission. The Commission continues to streamline its OTI licensing process, resulting 

in a reduction in the time to process applications and render a decision, supporting the 

Commission’s goal of completing 75 percent of all OTI license applications within 60 days. At its 

current funding level in FY 2020, the Commission exceeded its 75 percent target, completing 85 

percent of all OTI license applications within 60 days for the third year in a row. More than 650 

new and amended OTI applications were received during the fiscal year, and of those, 

approximately 75 percent were accepted and processed for formal determination of approval.

The remaining 25 percent were returned to the applicant due to lack of completeness or lack of 

appropriate qualifications. These efforts directly benefit U.S. export shippers who rely on 

licensed OTIs to help get their goods to foreign markets. 

The FMC’s triennial renewal program for licensed OTIs provides a user-friendly, online renewal 

process for OTIs to review and update their essential information on file with the Commission 

within minutes. In FY 2020, approximately 1,500 OTI licenses were renewed, with most reviewed 

and processed within 48 hours of submission. The Commission projects that trend will continue 

in FY 2021 and FY 2022 and beyond, as approximately one-third, or about 2,000, OTIs are 

required to renew their licenses each year. These renewals protect shippers by keeping licensed 

entities with the appropriate credentials, such as maintaining an appropriate qualifying individual. 

At the requested funding level of $30,873,000, the Commission projects that the licensing and 

registration processes will continue unimpeded. 

Financial Responsibility

All licensed and registered OTIs must maintain proof of financial responsibility with the 

Commission. At present, this amounts to approximately $710 million in surety bonds to protect 

the shipping public. The FMC annually processes over 1,000 bond termination notices, 1,000 OTI 

bond riders, and 1,000 new and replacement bonds. The Commission also receives a small 

number of bond riders and bond rider cancellations for the China trade. Failure to file and 

maintain proof of financial responsibility leads to license revocation. 
 Competition and Integrity for America’s Ocean Supply Chain 18

Federal Maritime Commission FY 2022 Budget Justification

Passenger Vessels 

The FMC oversees a program to ensure financial responsibility for passenger vessels that have 

berth or stateroom accommodations for 50 or more passengers and embark passengers at U.S. 

ports and territories. The requirement for Certificates of Performance, which provide financial 

responsibility for the indemnification of passengers for non-performance of transportation, 

prevents unscrupulous or financially vulnerable operators from serving U.S. ports. The PVO 

program includes 244 vessels and 52 passenger vessel operators, with aggregate evidence of 

financial responsibility coverage of over $600 million for non-performance and $750 million for 

casualty. PVO Certificates of Performance for passenger vessels are reissued every five years, 

however, during FY 2020 no vessels were scheduled for reissuance. Through its website and the 

Consumer and Dispute Resolution Services (CADRS) office, the FMC offers information and 

guidance to the cruising public on passenger rights and obligations regarding monies paid to 

cruise lines that fail to perform voyages.

In August 2020, the Commission initiated a process that may lead to amending its regulations 

concerning “non-performance” by a PVO/cruise line and under what circumstances passengers 

must be provided a refund for a cancelled or delayed voyage. The Commission accepted a 

recommendation made in Fact Finding 30, and directed staff to draft an advanced notice of 

proposed rulemaking (ANPRM) to solicit public comment on possible regulatory changes. The 

ANPRM was published on October 14, 2020, and the comments received are being analyzed. It is 

anticipated that the notice of proposed rulemaking (NPRM) will be issued in June 2021. 

Information on this, and other pending regulatory proceedings, is found in Appendix G, the 

Commission’s biennial report to Congress on the status of unfinished regulatory proceedings.

Objective 3: Enhance public awareness of agency resources, remedies, and regulatory 

requirements through education and outreach

The Commission provides information in many forms to educate regulated entities, stakeholders, 

and the public about its resources, remedies, and regulatory requirements. The Commission’s 

website offers brochures, how-to guides, forms and applications, reference libraries, news 

releases, information on investigations, and advice on topics such as FMC regulations, OTI 

licensing, household goods moves, and use of alternative dispute resolution (ADR) services to 

assist parties with resolving cruise- and cargo-related disputes. 

In FY 2022, staff from the various operating bureaus and offices will provide presentations and 

instructional opportunities to educate consumers, regulated entities, various shipper and industry 

trade associations, as well as academic institutions regarding regulations, shipping trends, and the 

effective use of available FMC resources to resolve formal proceedings, cruise and cargo-related 

disputes, service contract matters, and other commercial shipping disputes.
 Competition and Integrity for America’s Ocean Supply Chain 19

Federal Maritime Commission FY 2022 Budget Justification

Objective 4: Impartially and timely resolve international shipping disputes through alternative 

dispute resolution and adjudication 

The FMC offers informal dispute resolution and adjudicates claims of unlawful practices by 

carriers, MTOs, and OTIs. The Commission’s Area Representatives and CADRS staff educate 

industry members and the public on the Shipping Act and shipping regulations and help to 

address international ocean transportation disputes. 

Alternative Dispute Resolution

The FMC, through CADRS, offers both facilitation and arbitration services to the industry and 

shipping public to resolve disputes. The Commission supports mediation and collaborative 

dispute resolution when feasible, and requires parties involved in formal Commission docketed 

proceedings to attend mandatory mediation conferences. These conferences may be held in 

person or virtually, thus providing an option for a cost-effective process and conflict resolution in 

a pandemic and post-pandemic world. An online mediation tutorial and tool is available for 

parties to use to prepare for mediation. 

Proceedings before the FMC

The Commission’s Administrative Law Judges (ALJs) operate independently under the 

Administrative Procedure Act, 5 U.S.C. Subchapter II, to resolve cases involving alleged violations 

of the Shipping Act and other laws within the Commission’s jurisdiction. Cases may be initiated 

either by private parties or by the Commission (represented by the BOE) to seek civil penalties for 

statutory violations. Small claims complaints, valued at up to $50,000, may be assigned to a Small 

Claims Officer for resolution. At the requested budget level, proceedings will continue

expeditiously at the Commission in FY 2022. 
 Competition and Integrity for America’s Ocean Supply Chain 20

Federal Maritime Commission FY 2022 Budget Justification

Inspector General Request and Certification

Office of Inspector General

FEDERAL MARITIME COMMISSION

Washington, DC 20573

April 14, 2021

The Inspector General Reform Act (Pub. L. 110-149) was signed by President George W. Bush 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 (FY).

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

• 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.
 Competition and Integrity for America’s Ocean Supply Chain 21

Federal Maritime Commission FY 2022 Budget Justification

Following the requirements as specified above, the Federal Maritime Commission ( F M C )

Inspector General submits the following information relating to the OIG’s requested budget for FY 

2022:

• the aggregate budget request for the operations of the OIG, to include overhead, is $577,781,

• the portion of this amount needed for OIG training is $2,500, and

• the portion of this amount needed to support the CIGIE is $2,000.

I certify as the Inspector General of the FMC that the amount requested satisfies the needs of the 

OIG for FY 2022, including all FMC OIG training requirements, and resources to support CIGIE.

Jon Hatfield, Inspector General

Federal Maritime Commission
 Competition and Integrity for America’s Ocean Supply Chain 22

Federal Maritime Commission FY 2022 Budget Justification

Appendices

FY 2022 Budget Request Explanatory Materials

The Commission’s budget allocations are organized by program, project, or activity (PPA). The 

FMC has two PPAs: (1) Operational and Administrative, and (2) Office of the Inspector General. 

This FY 2022 Budget Request includes several graphs and tables which explain the funding and FTE 

resources needed to meet the Commission’s mission and statutory mandates: 

Appendix A provides detailed funding and FTE requirements at the program level;

Appendix B categorizes the funding resources needed for FY 2020 through FY 2022 by 

object class;  

Appendix C provides funding by program areas and the relationship of the Commission’s 

obligations to outlays by fiscal year; 

Appendix D contains organizational information including current members of the FMC; 

Appendix E provides FY 2022 performance goals; 

Appendix F provides current workload statistics; and

Appendix G is the Commission’s biennial report to Congress on the status of unfinished 

regulatory proceedings.
 Competition and Integrity for America’s Ocean Supply Chain 23

Federal Maritime Commission FY 2022 Budget Justification

Appendix A: Resource Allocation by Program, Year and Goal

The chart below details the Commission’s current two programs, Operational and Administrative 

(O&A), and Office of the Inspector General (OIG). 

Strategic Goal and Program

Program

Strategic Goal #1 Strategic Goal #2

Total Maintain a competitive and 

reliable international ocean 

transportation supply system

Protect the public from 

unlawful, unfair and 

deceptive practices

O&A $10,181,354 $20,113,865 $30,295,219

OIG $57,778 $520,003 $577,781

Total FMC $10,239,133 $20,633,868 $30,873,000

Year and Program

Program FY 2020 FY 2021 FY 2022 FY 2022 - FY 

2020 Change

FY 2022 - FY 

2021 Change

O&A $26,921,218 $29,746,256 $30,295,219 $3,374,001 $548,963

OIG $490,223 $553,744 $577,781 $87,558 $24,037

Total FMC $27,411,441 $30,300,000 $30,873,000 $3,461,559 $573,000

FTEs and Positions by Year and Program

Program FY 2020 FY 2021 FY 2022 FY 2022 - FY 2021 

Change

Program FTE Positions FTE Positions FTE Positions FTE Positions

O&A 109.2 112 119.0 126 122.8 126 3.8 0

OIG 2.0 2 2.0 2 2.0 2 0.0 0

FMC Total 111.2 114 121.0 128 124.8 128 3.8 0

 Some amounts may not total due to rounding.
 Competition and Integrity for America’s Ocean Supply Chain 24

Federal Maritime Commission FY 2022 Budget Justification

Appendix B: Obligations by Object Class

Obligations by Object Class

Object Class FY 2020 FY 2021 FY 2022

FY 2021 -

FY 2022 

Change

 (11.1) Full-Time Permanent $14,301,563 $16,037,330 $16,386,826 $349,496

 (11.5) Other Personnel 

Compensation $227,841 $400,000 $278,681 ($121,319)

 (12.1) Civilian Personnel Benefits $4,741,854 $5,372,807 $5,606,260 $233,452

Total Personnel Compensation & 

Benefits $19,271,258 $21,810,137 $22,271,767 $461,629

 (21.0) Travel and Transportation 

of Persons $58,662 $198,300 $117,000 ($81,300)

 (22.0) Transportation of Things $10,699 $15,500 $11,600 ($3,900)

 (23.1) Rental Payments to GSA $3,479,601 $3,460,630 $3,714,168 $253,538 

 (23.3) Communications, Utilities, 

and Miscellaneous Charges $241,179 $252,336 $337,892 $85,556 

 (24.0) Printing and Reproduction $90,000 $83,000 $90,000 $7,000 

 (25.1) Advisory and Assistance 

Services $960,005 $1,297,578 $1,296,882 ($696)

 (25.2) Other Services from NonFederal Sources $1,182,762 $1,075,000 $862,144 ($212,856)

 (25.3) Other Goods and Services 

from Federal Sources $1,493,055 $1,711,265 $1,884,053 $172,788 

 (25.7) Operation and 

Maintenance of Equipment $21,876 $26,500 $37,900 $11,400 

 (26.0) Supplies and Materials $62,798 $65,000 $101,994 $36,994 

 (31.0) Equipment $539,546 $304,754 $147,600 ($157,154)

Total Administrative Expenses $8,140,183 $8,489,863 $8,601,233 $111,370 

Total $27,411,441 $30,300,000 $30,873,000 $573,000

Some amounts may not total due to rounding.
 Competition and Integrity for America’s Ocean Supply Chain 25

Federal Maritime Commission FY 2022 Budget Justification

Appendix C: Relationship of Obligations to Outlays

Program FY 2020 FY 2021 FY 2022

Operational and Administrative $27,512,841 $29,746,256 $30,305,569 

Inspector General $487,159 $553,744 $567,431 

Unobligated $588,559 $0 $0 

Budget Authority $28,000,000 $30,300,000 $30,873,000 

Obligations $27,411,441 $30,300,000 $30,873,000 

Outlays* $22,907,093 $25,320,993 $25,799,836

Outlay Rate (Obligation to Outlay)** 83.6% 83.6% 83.6%

Obligation Rate 97.9% 100.0% 100.0%

Gross Outlays for FY 2020

Total outlays for fiscal year 2015 disbursed in fiscal year 2020 $2,152 

Total outlays for fiscal year 2016 disbursed in fiscal year 2020 $0 

Total outlays for fiscal year 2017 disbursed in fiscal year 2020 $2,975 

Total outlays for fiscal year 2018 disbursed in fiscal year 2020 $317,256 

Total outlays for fiscal year 2019 disbursed in fiscal year 2020 $3,552,315 

Total outlays for fiscal year 2020 $22,907,093 

 Outlays $26,781,791 

* Represents Outlays for FY 2020 as of September 30, 2020.

** Represents the percentage of FY 2020 obligations that were disbursed during FY 2020.

The Relationship of Obligations to Outlays identifies the actual outlay percentage for FY 2020. The 

chart also depicts the estimated outlay expenses for FY 2021 and FY 2022.
 Competition and Integrity for America’s Ocean Supply Chain 26

Federal Maritime Commission FY 2022 Budget Justification

Appendix D: Organization and Members

The FMC is composed of five Commissioners nominated by the President and confirmed by the 

Senate, each serving a staggered five-year term. The Commission is a bipartisan body; no more 

than three members of the Commission may be of the same political party. One Commissioner, 

designated by the President, serves as Chairman, Chief Executive, and Chief Administrative Officer 

of the Commission.

*This is the current organization chart for the Commission, depicting a Congressionally-authorized realignment of the 

Office of Consumer Affairs and Dispute Resolution Services under the Managing Director, approved April 27, 2018. 

Counterpart changes in 46 C.F.R. Part 501 are currently pending publication.
 Competition and Integrity for America’s Ocean Supply Chain 27

Federal Maritime Commission FY 2022 Budget Justification

Members of the Commission

 

 Chairman Daniel B. Maffei

 

 

 

 Commissioner Rebecca F. Dye Commissioner Michael A. Khouri

 

 

 

 Commissioner Louis E. Sola Commissioner Carl W. Bentzel

 
 Competition and Integrity for America’s Ocean Supply Chain 28

Federal Maritime Commission FY 2022 Budget Justification

Appendix E: Performance Goals

Summary of Strategic Goals, Objectives, and Performance Measures

STRATEGIC GOAL 1: Maintain a competitive and reliable international ocean transportation supply system

OBJECTIVE 1: Ensure that actions under filed agreements do not result in unreasonable increases in transportation 

costs and/or unreasonable decreases in transportation services.

Performance Measure: Percentage of FMC-filed agreements 

reviewed at Commission level which are modified through 

negotiation to mitigate anticompetitive effects.

2020 Target 2021 Target 2022 Target 

52% 53% 54%

2020 Actual: 60%

Performance Measure: Percentage of agreement monitoring 

reports reviewed within 30 days of receipt to detect actionable 

information, including market-distorting behavior.

2020 Target 2021 Target 2022 Target

67% 68% 69%

2020 Actual: 91%

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

OBJECTIVE 2.1: Identify and take action to end unlawful, unfair, and deceptive practices.

Performance Measure: Percentage of enforcement actions taken 

under the Shipping Act successfully resolved through favorable 

judgment, settlement, issuance of default judgment, or 

compliance letter or notice.

2020 Target 2021 Target 2022 Target

77.5% 77.5% 77.5%

2020 Actual: 93%

OBJECTIVE 2.2: Prevent public harm through licensing and financial responsibility requirements.

Performance Measure: Percentage of decisions on completed OTI 

license applications rendered within 60 calendar days of receipt, 

facilitating lawful operation of OTIs with appropriate character and 

experience requirements.

2020 Target 2021 Target 2022 Target

75% 75% 75%

2020 Actual: 88%

Performance Measure: Percentage of PVOs examined during the 

year that have the full financial coverage required by regulation to 

protect against loss from non-performance or casualty.

2020 Target 2021 Target 2022 Target

95% 95% 95%

2020 Actual: 96%

OBJECTIVE 2.3: Enhance public awareness of agency resources, remedies, and regulatory requirements through 

education and outreach.

Performance Measure: Percentage of Commission issuances, 

orders and reports available through the Commission’s website 

within 5 working days of receipt.

2020 Target 2021 Target 2022 Target

86% 88% 90%

2020 Actual: 100%

OBJECTIVE 2.4: Impartially and timely resolve international shipping disputes through alternative dispute resolution and 

adjudication.

Performance Measure: Percentage of ombuds and ADR matters 

closed within 6 months of request for assistance.

2020 Target 2021 Target 2022 Target

63% 65% 67%

2020 Actual: 99.6%

Performance Measure: Percentage of formal complaints or 

Commission-initiated orders of investigation completed within 2 

years of filing or Commission initiation.

2020 Target 2021 Target 2022 Target

68% 70% 72%

2020 Actual: 100%
 Competition and Integrity for America’s Ocean Supply Chain 29

Federal Maritime Commission FY 2022 Budget Justification

Appendix F: Workload Statistics

Workload Summary

Workload Category

On Hand 

9/30/2019

FY 2020 Actual FY 2021 Estimate FY 2022 Estimate

Received Output Received Output Received Output

Office of the Administrative Law Judges

Formal Proceedings 6 10 11 10 10 10 10

Informal Proceedings 0 4 3 4 4 4 4

Office of the General Counsel

Legal Opinions, Recommendations, Case 

Summaries, Decisions, and Final Orders 15 195 195 200 200 200 200

Office of the Secretary

Decisions, Reports, in Docketed Proceedings 

before the Commission 13 23 28 25 25 25 25

Federal Register Notices 0 80 80 100 100 100 100

FOIA Requests 2 21 21 28 28 28 28

Office of Consumer Affairs and Dispute Resolution Services

Ombuds 14 249 243 240 240 240 240

ADR Matters (formal dockets and requests) 13 6 6 6 6 8 8

Bureau of Enforcement

Audits and Monitoring Activities 8 130 122 225 225 230 230

OTI Applicant and License Checks 0 483 483 655 655 655 655

Formal Proceedings 0 2 2 2 2 3 3

Civil Penalty Cases* 0 0 2 24 22 25 25

Bureau of Trade Analysis

Agreements Filed 2 120 117 105 107 135 135

Agreement Reports 35 1,193 1,149 1,440 1,475 1,450 1,485

Service Contracts 0 45,164 45,164 90,000 90,000 95,000 95,000

Service Contract Amendments 0 779,884 779,884 840,000 840,000 869,000 869,000

FMC-1 Form 0 1,575 1,575 1,590 1,590 1,605 1,605

Bureau of Certification and Licensing

OTI Applications – NEW 64 375 372 360 360 360 360

OTI Business Change Applications 77 273 289 310 310 310 310

OTI License Renewals 0 1,456 1,456 1,500 1,500 2,000 2,000

Foreign NVOCC Registrations (New, Amended,

and Renewal) 0 751 751 800 800 1,000 1,000

OTI License Terminations 0 285 285 300 300 300 300

OTI Bond Transactions** 0 3,760 3760 4,000 4,000 4,000 4,000

PVO Applications (Performance) 5 5 5 15 15 15 15

PVO Applications (Casualty) 10 8 7 15 15 15 15

PVO Certificates (Performance) Reissued*** 0 0 0 0 0 0 0

*In September 2019, the FMC embarked on creating a new “pre-enforcement process” to be followed by the BOE. See page 13 for 

discussion. 

**Includes OTI bond terminations, bond riders, and new or replacement bonds. 

***Commenced in FY 2018, PVO Certificates (Performance) are now reissued every 5 years.
 Competition and Integrity for America’s Ocean Supply Chain 30

Federal Maritime Commission FY 2022 Budget Justification

Appendix G: Unfinished Regulatory Proceedings

The Commission reports to Congress biennially on the status of unfinished regulatory 

proceedings.

Unfinished Regulatory Proceedings

Popular Title Passenger Vessel Financial 

Responsibility

RIN 3072-AC82

Carrier Automated Tariffs

RIN 3072-AC86

Docket Number 20-15 21-03

Current Stage Pre-rule Pre-rule

Abstract The Commission seeks comment 

on potential regulatory changes 

to its passenger vessel operator 

financial responsibility 

requirements. These changes 

were recommended in an Interim 

Report issued by the Fact Finding 

Officer in Commission Fact 

Finding 30: COVID-19 Impact on 

Cruise Industry.

The Commission seeks 

information regarding the 

impact of tariff access fees and 

access requirements and how 

common carriers are applying 

“pass through” charges under 

their tariffs.

What Prompted 

Action

Commission initiative Commission initiative

Applicable 

Statutory, 

Regulatory, or 

Judicial Deadline

None None

Initiated ANPRM published – 10/14/2020 ANPRM published –

04/08/2021

Next Action NPRM

Scheduled – 6/2021

NPRM

Scheduled – 9/2021