Federal Maritime Commission

FY 2014 Budget Estimates submitted to the Appropriations Subcommittees

FY 2012 Budget Estimates submitted to the Appropriations Subcommittees 

+ 

FEDERAL MARITIME COMMISSION 

BUDGET ESTIMATES 

Fiscal Year 2014

SUBMITTED TO THE APPROPRIATIONS COMMITTEES 

(Subcommittees on Transportation, Housing and Urban Development, 

and Related Agencies) 

APRIL 10, 2013 
Federal Maritime Commission

FY 2014 Budget Estimates submitted to the Appropriations Subcommittees

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

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

 Justification Materials: 

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

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

 Fiscal Year 2014 Policy and Funding Priorities .................................. 7 

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

 FMC Mission ..................................................................................... 16 

 FTEs and Positions by Program ......................................................... 17 

 Obligations by Object Class ............................................................... 18 

 Average Salary and Grade ................................................................. 19 

 Request by Strategic Goal and Program ............................................ 20 

 Summary of Changes ......................................................................... 21 

 Appropriation Language .................................................................... 22 

 Fiscal Year 2014 Budget Request by Strategic Goal ......................... 23 

 Fiscal Year 2014 Budget Request by Program/FTE Request by 

 Program ........................................................................................... 25 

 Relationship of Obligations to Outlays .............................................. 26 

 Budget Justifications:

 Formal Proceedings Program ............................................................. 27 

 Office of the Chairman ................................................................. 29 

 Office of the Commissioners ........................................................ 31 

 Office of the Secretary ................................................................... 33 

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

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

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

 Designated Agency Ethics Official .......................................... 51 

 Office of Administrative Law Judges ........................................... 53 
Federal Maritime Commission

FY 2014 Budget Estimates submitted to the Appropriations Subcommittees

Equal Employment Opportunity Program .............................................. 55 

Inspector General Program ..................................................................... 57 

Operational and Administrative Program ............................................... 61 

 Office of the Managing Director ............................................... 63 

 Area Representatives ................................................................. 67 

 Bureau of Trade Analysis .......................................................... 71 

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

o Office of Service Contracts and Tariffs ............................. 73 

o Office of Economics and Competition Analysis ................ 75 

o Office of Agreements ......................................................... 77 

 Bureau of Certification and Licensing ....................................... 81 

o Office of the Director ......................................................... 82 

o Office of Ocean Transportation Intermediaries ................. 83 

o Office of Passenger Vessels and Information Processing .. 85 

 Bureau of Enforcement .............................................................. 89 

 Office of Information Technology ............................................. 93 

 Office of Human Resources ....................................................... 95 

 Office of Budget and Finance .................................................... 99 

 Office of Management Services .............................................. 101 

Fiscal Year 2014 Strategic Goals .......................................................... 103 

 Factors Affecting the Achievement of Goals ............................. 103 

 Strategic Goal Number 1 ............................................................ 105 

 Strategic Goal Number 2 ............................................................ 109 

Appendix A – Workload Statistics ....................................................... 117 

Appendix B – Inspector General Budget Certification ......................... 125 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 Alphabetical Listing of Abbreviations

 -#- 

1920 Act Section 19 of the Merchant Marine Act, 1920 

1978 Act Inspector General Act of 1978 

1984 Act Shipping Act of 1984 

 -AACE Automated Commercial Environment 

ACE/ITDS Automated Commercial Environment/International Trade Data System 

ADR Alternative Dispute Resolution 

AES Automated Export System 

agency Federal Maritime Commission 

ALJ Administrative Law Judge 

AMS Agriculture Marketing Service 

AR Area Representative 

 -BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BTA Bureau of Trade Analysis 

 -CCADRS Office of Consumer Affairs and Dispute Resolution Services 

CAO Chief Acquisition Officer 

CBP U.S. Bureau of Customs and Border Protection 

CCIG Council of Counsels to Inspectors General 

CCMP Consolidated Chassis Management Pool Agreement 

CFO Chief Financial Officer 

CFR Code of Federal Regulations 

CIGIE Council of Inspectors General on Integrity and Efficiency 

CIO Chief Information Officer 

COOP Continuity of Operations 

Commission Federal Maritime Commission 

 -D- 

 DEEO Director of EEO 

 DFI Director of Field Investigations 

 DOC Department of Commerce 

-EECM Enterprise Content Management 

EEO Equal Employment Opportunity 

EEOC Equal Employment Opportunity Commission 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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eOPF Electronic Official Personnel Folder 

EU European Union 

EX-Im Bank Export-Import Bank of the United States 

-FFAEC Federal Audit Executive Council 

FBI Federal Bureau of Investigation 

FEVS Federal Employee Viewpoint Survey 

FISMA Federal Information Security Management Act 

FMC Federal Maritime Commission 

FMCSA Federal Motor Carrier Safety Administration 

FOIA Freedom of Information Act 

FPS Federal Protective Service 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full-time Equivalent 

FY Fiscal Year 

 

 -GGPO Government Printing Office 

GSA General Services Administration 

 

-HHMT Harbor Maintenance Tax 

HQ Headquarters (FMC) 

HR Human Resources 

HSPD-12 Homeland Security Presidential Directive 12 

 -IIAG Interagency Agreement 

ICE Immigration and Customs Enforcement 

ID Initial Decision 

IG Inspector General 

IPP Internet Payment Platform 

IT Information Technology 

 

 -MMD Managing Director 

 MD&A/PAR Management’s Discussion and Analysis/Performance and 

 Accountability Report 

 MD-715 Management Directive 715 

MOU Memorandum of Understanding 

MTO Marine Terminal Operator 

 -NNFC National Finance Center 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 NIST National Institute of Standards and Technology 

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 Arrangement 

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 

OECA Office of Economics & Competition Analysis 

OFF Ocean Freight Forwarder 

OGC Office of General Counsel 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMD Office of the Managing Director 

OMS Office of Management Services 

 OPM Office of Personnel Management 

OPVIP Office of Passenger Vessels and Information Processing 

OS Office of the Secretary 

OSCAR Ocean Shipping Container Availability Report 

OSCT Office of Service Contracts and Tariffs 

OSRA Ocean Shipping Reform Act of 1998 

OTCnet Over the Counter Channel Application 

OTI Ocean Transportation Intermediary 

 -P- 

 PAAT Performance Appraisal Assessment Tool 

 PAR Performance and Accountability Report 

PAST Performance Appraisal System Taskforce 

PCC Paper Check Conversion 

PIO Performance Improvement Officer 

P.L. Public Law 

PSA Public Service Announcement 

PVO Passenger Vessel Operator 

 -QQI Qualifying Individual 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 -R- 

 RPI Regulated Persons Index 

 Reform Act Inspector General Reform Act of 2008 

 -SSERVCON Service Contract Filing System 

SES Senior Executive Service 

Shipping Act Shipping Act of 1984 

SSE Shanghai Shipping Exchange 

SWAT Rapid Response 

 -TTober Tober Group, Inc. 

TRS Transaction Reporting System 

TSA Transpacific Stabilization Agreement 

 -U- 

 UPR Unearned Passenger Revenue 

U.S. United States of America 

U.S.C. United States Code 

 -VVOCC Vessel-Operating Common Carrier 

 -WWTSA Westbound Transpacific Stabilization Agreement 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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FMC Core Functions

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

agency which regulates oceanborne transportation in the foreign commerce of the 

United States (U.S.). The Commission administers the Shipping Act of 1984 (1984 Act) 

as amended by the Ocean Shipping Reform Act of 1998 (OSRA); section 19 of the 

Merchant Marine Act, 1920 (1920 Act); the Foreign Shipping Practices Act of 1988 

(FSPA); and sections 2 and 3 of Public Law (P.L.) 89-777 (46 U.S.C. §§ 44102 and 

44103). The Commission monitors the activities of ocean common carriers, marine 

terminal operators (MTOs), ports and ocean transportation intermediaries (OTIs) (nonvessel-operating common carriers and freight forwarders) who operate in the U.S. 

foreign commerce to ensure that they maintain just and reasonable practices; maintains 

trade monitoring, enforcement and dispute resolution programs designed to assist 

regulated entities in achieving compliance and to detect and appropriately remedy 

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

reviews competitive activities of common carrier alliances and other agreements among 

common carriers and/or terminal operators; monitors the laws and practices of foreign 

governments which could have a discriminatory or otherwise adverse impact on 

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

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

requirements applicable to carriers owned or controlled by foreign governments; 

processes and reviews agreements, service contracts, and service arrangements 

pursuant to the 1984 Act for compliance with statutory requirements; and reviews 

common carriers’ privately published tariff systems for accessibility, accuracy, and 

reasonable terms. The FMC also issues licenses to qualified OTIs in the U.S., ensures 

that all OTIs are bonded or maintain other evidence of financial responsibility, and, 

pursuant to 46 U.S.C. §§ 44102 and 44103, ensures that passenger vessel operators 

(PVO) demonstrate adequate financial responsibility to indemnify passengers in the 

event of nonperformance of voyages or passenger injury or death. 

FMC Organization

 

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

President with the advice and consent of the Senate. No more than three members of 

the FMC may belong to the same political party. The President designates one 

Commissioner to serve as Chairman, the Chief Executive and Administrative Officer of 

the agency. Effective January 31, 2010, the FMC’s organizational units consist of: 

Offices of the Commissioners; Offices of the General Counsel (OGC); Secretary (OS); 

Consumer Affairs and Dispute Resolution Services (CADRS); Administrative Law 

Judges (OALJ); Equal Employment Opportunity (EEO); Inspector General (OIG); the 

Managing Director (OMD), Budget and Finance (OBF), Human Resources (OHR), 

Information Technology (OIT), and Management Services (OMS), the Bureaus of 

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

Area Representatives (ARs). The majority of FMC personnel are located in Washington, 

D.C., with ARs stationed in New York, New Orleans, Los Angeles, Seattle, Houston and 

South Florida. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 COMMISSIONER 

Rebecca F. Dye 

2013 2014 

2 2 

COMMISSIONER 

Richard A. Lidinsky, Jr. 

2013 2014 

2 2 

COMMISSIONER 

William P. Doyle 

2013 2014 

2 2 

CHAIRMAN 

Mario Cordero 

2013 2014 

3 3 

Office of the 

Inspector General 

2013 2014 

3 3 

Office of Equal 

Employment 

Opportunity 

2013 2014 

1 1 

Office of the 

Managing 

Director 

2013 2014 

9 9 

COMMISSIONER 

Michael A. Khouri 

2013 2014 

2 2 

Office of the 

General 

Counsel 

2013 2014 

10 10 

Office of the 

Secretary 

2013 2014 

8 8 

Office of 

Administrative 

Law Judges 

2013 2014 

3 3 

Office of 

Consumer 

Affairs and 

Dispute 

Resolution 

Services 

2013 2014 

7 8

Office of 

Budget and 

Finance 

2013 2014 

5 5 

Office of 

Human 

Resources 

2013 2014 

4 4 

Office of 

Management 

Services 

2013 2014 

5 5 

Office of 

Information 

Technology 

2013 20 14 

7 7 

Bureau of 

Certification and 

Licensing 

2013 2014 

15 15 

Bureau of 

Enforcement 

2013 2014 

10 10 

Bureau of Trade 

Analysis 

2013 2014 

16 18 

Area Representatives 

Houston 

Los Angeles 

New Orleans 

New York 

Seattle 

South Florida 

2013 2014 

9 9 

FEDERAL MARITIME COMMISSION 

ORGANIZATION CHART 

as of April 1, 2013 

(Positions on September 30) 

Administrative Direction 

Technical Direction 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Fiscal Year 2014 Policy and Funding Priorities

 

In fiscal year (FY) 2014, the Commission’s policy and funding priorities will continue to 

center on fostering a viable and vibrant liner shipping environment, a critical part of our 

nation’s international trade and economic growth. The FMC has a twofold strategic 

focus, as reflected in our Strategic Plan for 2010-2015, in both maintaining an efficient 

and competitive international ocean transportation system and protecting the public 

from unlawful, unfair, and deceptive ocean transportation practices. The 

accomplishment of these strategic goals is essential 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 focused 

on ensuring that the ocean transportation system fully supports the President’s National 

Export Initiative. 

 

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

economic conditions alter the state of our trades, the FMC’s regulations must continue 

to respond to those conditions. We have initiated a review of the Commission’s 

regulations to ascertain their continued need and relevance to changing market 

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

including tariff publication and agreements. This review will continue into fiscal year 

2014. Evolving business models requiring Commission attention in the coming years 

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

networks, and their impact on the shipping public. In protecting the public from harm, 

we will use an integrated approach stressing industry compliance with licensing and 

other requirements, providing a variety of services for quick and fair resolution of 

disputes, and, where necessary, vigorously enforcing the Commission’s governing 

statutes and regulations. The use of technology in disseminating public information is of 

major importance; web-based and social media-based accessibility to Commission 

services and information will increasingly facilitate public interaction, while adding 

greater efficiencies to internal business processes. Overall, emphasis will be placed on 

facilitating the commercial flow of exports and imports, and the FMC will continue to 

provide services and outreach to the shipping public to assist in the implementing 

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

more will provide the means for the FMC to accomplish its stated mission to foster a 

fair, efficient, and reliable international ocean transportation system and to protect the 

public from unfair and deceptive practices. 

The Commission proposes to continue three important initiatives in fiscal year 2014 to 

address matters affecting the ability of importers and exporters to move their goods via 

ocean transport, which include consumer protection, increased public and international 

trade presence, and efficiencies. These important initiatives are challenged by a 

demand for additional human resources as well as ongoing budgetary constraints. 

Nonetheless, the Commission will continue its efforts to resolve household goods 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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shipping issues, safeguarding small, one-time shippers from deceitful practices, while 

using innovative technology to achieve operational efficiencies and transparency. 

 

First, the Commission will continue to provide consumer protection by integrating 

multiple tools to address shipping difficulties and malpractices in the ocean 

transportation system that are encountered by importers and exporters. The 

Commission’s ombuds program and Rapid Response (SWAT) Teams will continue 

providing quick resolution of transportation impediments. At the same time, our 

enforcement activity will continue aggressive enforcement actions against those who 

pursue unlawful malpractices. The Commission will provide a variety of alternative 

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

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

Through the administrative process, the shipping public will be able to seek redress for 

Shipping Act violations and obtain reparations for actual damages incurred. Of course, 

our OTI licensing requirements will continue to provide bonds to assure the availability 

of financial assets to protect shippers. 

 

Second, the Commission will continue to focus on an increased public and international 

trade presence. By statute, the Commission is charged with identifying, investigating, 

and addressing unfavorable conditions in foreign trade as well as foreign practices that 

harm the U.S. maritime industry. We will also continue an open dialogue with U.S. 

trading partners to ensure U.S. trade is not hampered by regulatory or non-regulatory 

actions by those trading partners. We will emphasize an open government, particularly 

utilizing improved technology. 

 

Third, we will strive to achieve operating efficiencies for the Commission and users of 

Commission services through new, innovative technology solutions. Achieving our goal 

of operating an electronic submission and processing of license applications, 

agreements, and other filings will not only be more efficient for the public to use 

Commission services, but will also result in increased Commission productivity. 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Highlights and Planned Activities Statements

Key Accomplishments in Fiscal Year 2012

As the economy slowly recovered in fiscal year 2012, the demand for ocean 

transportation paralleled the recovery. Capacity adjustments implemented by carriers 

resulted in avoiding the vessel capacity shortages experienced in fiscal year 2010. For 

much of the fiscal year, shippers were able to ship their goods at much lower cost than 

in 2011. Meanwhile, liner vessel operators reported sharply lower earnings resulting 

from lower rates across the board. In response, in the latter part of fiscal year 2012, 

carriers began implementing a series of general rate increases that were able to 

generate increased revenue. Looming over the industry during the latter quarter of 

fiscal year 2012 was the possibility of a strike by U.S. east coast dockworkers. That 

possibility led most carriers to publish significant congestion surcharges. As the fiscal 

year closed, the parties engaged in renewed talks to avoid a strike. 

 

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

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

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

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

economic environment and avoiding reoccurrence of capacity issues and shipping 

difficulties encountered during the recovery from the severe maritime industry recession 

of fiscal year 2009. 

 

Strategic Goal 1

Maintain an efficient and competitive international ocean transportation system

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

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

consumers. The Shipping Act of 1984 grants ocean carriers and marine terminal 

operators limited antitrust immunity for activities pursuant to agreements they file with 

the Commission. The carriers and terminal operators are subject to the FMC’s 

monitoring of their activities to guard against possible abuse of that limited immunity, to 

avoid unreasonable increases in transportation costs or decreases in transportation 

services, and to guard against other activities prohibited by the Shipping Act. 

Fiscal year 2012 was an active year as the Commission continued to concentrate on 

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

supporting the economic recovery, protecting American consumers, encouraging a 

sustainable ocean transportation industry, enhancing safety and security, and 

monitoring foreign practices to protect American jobs. Of significant note, the 

Commission’s Bureau of Trade Analysis issued its Study of the 2008 Repeal of the 

Liner Conference Exemption from European Union Competition Law. The study 

collected and analyzed data on the impact of the October 2008 European Union repeal 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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

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

capacity, rates, and surcharges. The study concluded that: 

 The repeal of the block exemption did not appear to have caused any 

negative impact on US liner trades. 

 The activities of carrier rate discussion agreements in the U.S. trades do 

not appear to have increased average rates relative to rates in European 

Union (EU) trades, but may have contributed to modestly reduced rate 

volatility. 

 The repeal may have resulted in a modest increase in market 

concentration, but not such that would present problems. 

The Commission will continue to closely monitor the impacts, if any, European Union 

repeal of its block competition law exemption for liner conferences. In addition, the 

Commission will review concerted activities of carriers, particularly in the transpacific 

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

rates or unreasonable reductions in service. In addition, the Commission monitored the 

availability of chassis as carriers decided to no longer provide chassis for their 

shippers. 

Supporting U.S. exports and the economic recovery: During fiscal year 2012, 

exported goods continued to grow, on pace to exceed the National Export Initiative’s 

goal of doubling U.S. exports by 2015. While vessel capacity and container availability 

met demand, the Commission continued to utilize recently established Rapid Response 

Teams to provide prompt solutions for commercial disputes between carriers and their 

customers. 

The Commission also assisted the U.S. Department of Agriculture’s Agricultural 

Marketing Service (AMS) with its exporters’ project to give more transparency and 

visibility to the chronic problem of locating empty containers for exports. AMS’ Ocean 

Shipping Container Availability Report (OSCAR) is published weekly and shows 

container availability at 18 U.S. port and inland locations, using data provided by nine 

leading ocean carriers. The report assists U.S. exporters in determining container 

availability each week, and contains projections two weeks in the future. 

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

approved a rule change to conditionally exempt more than 3,300 licensed non-vesseloperating common carriers (NVOCCs) from the costs and burdens of publishing in 

tariffs the rates they charge for cargo shipments. Most NVOCCs are small businesses 

who could see significant savings from such exemptions. The Commission followed up 

in fiscal year 2012 with an inquiry to solicit public comments on suggestions for further 

improvement. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Marine Environmental Committee and Clearinghouse: The FMC has seen 

environmental issues become increasingly central to the agreements and shipping 

practices it monitors. The Commission’s Maritime Environmental Committee reviews 

filings at the agency for best environmental practices which can be put forward as 

models for adoption by other ports and companies. The Commission also has created 

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

maritime environmental issues, news, resources, laws and regulations, and best 

practices. 

Container Freight Rate Indices and Derivatives: The Commission amended its 

service contract regulations to enable shippers and carriers to provide that rates could 

be modified based on a container freight index, so long as the index is readily available 

to the parties and the Commission. As a result, service contracts have been filed that 

provide for periodic adjustment of freight rates according to an existing rate index. In 

addition, several large agricultural exporters requested that the Commission develop an 

index of ocean transportation charges for agricultural commodities. The Commission 

has published a Notice of Inquiry (NOI) seeking public comment on that issue. 

Cargo Diversion: As a result of requests from two U.S. senators and several members 

of the House of Representatives, the Commission conducted a study of the impacts and 

the extent to which the Harbor Maintenance Tax (HMT), other U.S. policies, and other 

factors may incentivize inbound container cargo to shift from U.S. seaports to competing 

ports located in Canada and Mexico. Accordingly, the Commission published an inquiry 

soliciting public views and information concerning the factors that may cause or 

contribute to such a shift in cargo. The Commission’s report was issued in the fourth 

quarter of fiscal year 2012 and presented the following conclusions: 

 Carriers shipping cargo through Canadian and Mexican ports violate no 

U.S. law, treaty, agreement, or FMC regulation. 

 Numerous factors account for why shippers elect to use ports in Canada 

or Mexico. They include overall shipment savings, risk mitigation through 

port diversification, perceived transit time benefits, avoidance of the HMT 

and rail rate disparities. 

 Congress has many options to consider should it decide to revise or 

replace the current HMT structure in its goal of ensuring maximum 

competitive abilities for all U.S. ports. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Strategic Goal 2

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

shipping disputes

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

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

carriage of passengers, investigating and prosecuting unreasonable or unjust practices, 

and ruling on formal complaints alleging violation of the Shipping Act. The FMC 

contributes to the integrity and security of the nation’s supply chain and transportation 

system by identifying unlicensed operations and licensing only those ocean 

transportation intermediaries with appropriate character, experience, and financial 

responsibility. The FMC also ensures financial coverage of passenger vessels to 

indemnify passengers in the event of nonperformance. Pursuant to these regulatory 

responsibilities the Commission undertook a number of significant actions during fiscal 

year 2012 to address issues affecting American consumers who ship their personal 

goods overseas or take cruises. 

Household Goods Shipments: The Commission undertook several actions as a result 

of the fiscal year 2011 Fact Finding Officer’s report 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. Each year, the FMC receives several hundred complaints from individuals 

who have experienced problems with their international household goods shipments. To 

address this continuing issue, in fiscal year 2012, the Commission took the following 

actions: 

Consumer education: The Commission upgraded its website to provide improved 

public information, including better assistance to customers shopping for international 

shipping options; entered into a formal Memorandum of Understanding with the Federal 

Motor Carrier Safety Administration (FMCSA) to conduct joint investigative operations 

against international and interstate movers with a history of chronic complaints and 

violations and to engage Commission ombuds support in resolving problems for 

consumers; developed relationships for enhanced cooperation with trade associations 

representing household goods movers; developed information for ocean transportation 

intermediaries to distribute to consumers moving household goods; targeted outreach to 

local communities, particularly certain ethnic communities that regularly ship household 

goods overseas; and encouraged household goods movers to link their websites to the 

FMC’s website for consumer information. 

 Licensing issues: As the Commission reviews its licensing regulations, it 

will pursue recommendations for adjustments that specifically address 

issues affecting household goods shipments.
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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

Enforcement (BOE) and the Area Representatives (ARs) continued their efforts to 

investigate and prevent practices that are unfair and deceptive. The targeted violations 

included, among others, misdescription of cargo. This violation poses a serious safety 

and security risk because it could prevent vessel operators and port officials from 

knowing whether dangerous goods are being transported on vessels into the U.S. 

During 2012, the Commission completed 12 cases by collecting $770,000 in penalties 

for such violations. 

Monitoring foreign practices to protect American jobs: The Commission was 

vigorous in carrying out its charge to monitor and prevent practices by foreign 

governments or entities that adversely affect American commerce. The former 

Chairman hosted a visit from the Shanghai Shipping Exchange (SSE) to jointly discuss 

regulatory issues of China and the U.S. and create a climate of cooperation to 

overcome any barriers to international trade with China. The Commission continues to 

follow developments in China closely to ensure that no unreasonable conditions exist 

that would impair U.S. commerce. 

Dispute Resolution: During fiscal year 2012, 668 complaints were received that 

necessitated the opening of cases to provide dispute resolution services. This was a 19 

percent increase over the volume of cases in fiscal year 2011 and included 132 

passenger complaints about cruise line issues, 274 complaints with respect to 

household goods shipments, 262 complaints involving other cargo shipment matters, 

and two mattes that involved other maritime related issues. 

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

immediate, cost-effective resolution through cooperation between parties. 

Confidentiality is essential to the success of such efforts, especially considering the 

confidential nature of service contracts. Cargo shipment complaints continued to be of 

increasing complexity. Problems involving ocean transportation intermediaries with 

overextended finances and inability to complete the ocean transportation continued to 

be an issue. In addition, many household goods complaints pertained to initial charges 

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

 

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

human resources, property management, financial and procurement practices and other 

vital support activities is essential to meet the agency’s regulatory and programmatic 

goals. The FMC realizes the need to use new information technology (IT) as a means 

of improving agency business processes and augmenting the accessibility of the public 

conducting licensing or legal business with the agency. In fiscal year 2012, the 

Commission explored various means to update and revise its existing IT infrastructure 

to meet agency needs and government-wide standards, and to improve efficiency of 

operations. System improvements are critical to the Commission’s ability to carry out its 

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

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Fiscal Year 2013 and Beyond

In fiscal years 2013 and 2014, the Commission’s policy and funding priorities will 

continue to center on fostering a viable and vibrant liner shipping environment critical to 

the nation’s international trade and economic growth. We will emphasize the recently 

established SWAT Teams and the Commission’s role as an honest intermediary to 

resolve issues faced by exporters and importers alike. We will use a myriad of tools in 

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

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

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

constraints, the Commission is mindful of the importance of investing in information 

technology that can improve efficiency and provide greater public access, while 

reducing costs over time. 

 

Key objectives for fiscal years 2013 and 2014 include: (1) increase assistance to 

importers and exporters through the Commission’s ARs and Office of Consumer Affairs 

and Dispute Resolution Services (CADRS); (2) modernize the Commission’s technology 

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

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

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

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

enhance agency administrative programs and operations; and (6) review and update 

Commission regulations governing ocean transportation intermediaries (OTIs) and 

passenger vessel operators (PVOs). 

 

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

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

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

include: 

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

provide SWAT Teams to quickly resolve issues affecting the nation’s importers and 

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

successfully resolved matters that were affecting the receipt and delivery of cargo, 

without the impact of extensive costs on the parties. 

Dispute Resolution: In fiscal years 2013 and 2014, the Commission will further 

expand awareness of its ADR program through education, training, and other efforts. 

We will promote and encourage the use of ADR and its various processes as 

alternatives to formal litigation processes, and encourage service contract dispute 

resolution clauses that provide for quick, effective resolution of disagreements among 

the parties. Further efforts will be made to increase shipping industry awareness of this 

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

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

will be promoted to assist in resolving formal proceedings, service contract matters, and 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-15- 

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 increased 

number of consumers that are forewarned and thereby can avoid problems. Through 

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

possible through post-shipment problem resolution. 

Technology Improvements: For fiscal years 2013 and 2014, innovative technological 

improvements will be explored to (1) develop a new enterprise content management 

(ECM) technology; (2) move the Commission’s email system to a cloud environment 

and explore new cloud computing technology solutions where appropriate; (3) 

implement Pay.gov to enable electronic collections processing using Internet 

technologies; (4) upgrade the Service Contract Filing System (SERVCON) that receives 

service contracts, (5) automate much of the licensing review process to achieve greater 

efficiencies; (6) utilize technology for greater outreach and communication with the 

public; and (7) develop an appropriate disaster recovery and Continuity of Operations 

(COOP) plan. 

Office of Human Resources Work Plans: The Commission will revise and update its 

Human Capital Plan, Workforce Plan, Accountability System, and Succession 

Management Plan in light of limited fiscal resources and a workforce with increasing 

numbers of skilled staff eligible for retirement. These will be accomplished in 

accordance with the Office of Personnel Management’s (OPM) Human Capital 

Assessment and Accountability Framework and coordinated with OPM, Office of 

Management and Budget (OMB), and the Small Agency Human Resources Council on 

human capital and related initiatives. 

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

continued relevancy to economic conditions and other factors affecting the maritime 

industry. This systematic review will continue through fiscal years 2013 and 2014. Initial 

focus of review will be on proposed changes of Commission regulations governing OTI 

licensing and cruise line protection for passengers. In addition, the Commission’s Rules 

of Practice and Procedure will be modified to improve the ability of the public to interact 

with the Commission and clarify and update existing rules. Also, proposed changes to 

Commission rules will provide transparency regarding certain questions posed about 

filed agreements. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-16- 

FMC Mission

To foster a fair, efficient, and reliable international ocean transportation 

system and to protect the public from unfair and deceptive practices 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-17- 

Program/Office FTEs Positions* FTEs** Positions* FTEs Positions* FTEs Positions*

Headquarters 115.14 116.00 110.29 114.00 117.00 117.00 6.71 3.00

Area Representatives 8.27 8.00 7.81 9.00 9.00 9.00 1.19 0.00

Agency Total 123.41 124.00 118.10 123.00 126.00 126.00 7.90 3.00

Formal Proceedings

     Office of the Chairman 2.39 2.00 2.40 3.00 3.00 3.00 0.60 0.00

     Office of the Commissioners 6.97 7.00 6.94 8.00 8.00 8.00 1.06 0.00

     Office of the Secretary 6.27 7.00 6.72 7.00 7.00 7.00 0.28 0.00

          Library 1.00 1.00 0.96 1.00 1.00 1.00 0.04 0.00

     Office of Consumer Affairs and Dispute Resolution Services 7.07 8.00 7.69 7.00 8.00 8.00 0.31 1.00

     Office of the General Counsel 10.42 11.00 10.18 10.00 10.00 10.00 (0.18) 0.00

     Office of Administrative Law Judges 3.04 4.00 3.46 3.00 3.00 3.00 (0.46) 0.00

Formal Proceedings Total 37.16 40.00 38.35 39.00 40.00 40.00 1.65 1.00

Office of Equal Employment Opportunity 1.00 1.00 0.96 1.00 1.00 1.00 0.04 0.00

Office of the Inspector General 3.00 3.00 2.67 3.00 3.00 3.00 0.33 0.00

Operational and Administrative

     Office of the Managing Director 9.20 9.00 9.20 9.00 9.00 9.00 (0.20) 0.00

          Bureau of Trade Analysis

               Office of the Director 3.35 3.00 2.88 3.00 3.00 3.00 0.12 0.00

               Office of Service Contracts and Tariffs 4.78 5.00 3.66 3.00 5.00 5.00 1.34 2.00

               Office of Economics  and Competition  Analysis 6.31 7.00 6.72 7.00 7.00 7.00 0.28 0.00

               Office of Agreements 3.00 3.00 2.06 3.00 3.00 3.00 0.94 0.00

          Bureau of Certification and Licensing

               Office of the Director 2.42 3.00 2.88 3.00 3.00 3.00 0.12 0.00

               Office of Passenger Vessels and Information Processing 5.92 5.00 4.80 5.00 5.00 5.00 0.20 0.00

               Office of Transportation Intermediaries 7.28 7.00 6.72 7.00 7.00 7.00 0.28 0.00

          Bureau of Enforcement 10.00 10.00 9.61 10.00 10.00 10.00 0.39 0.00

          Area Representatives 8.27 8.00 7.81 9.00 9.00 9.00 1.19 0.00

          Office of Information Technology 6.99 6.00 6.71 7.00 7.00 7.00 0.29 0.00

          Office of Human Resources 5.00 5.00 3.85 4.00 4.00 4.00 0.15 0.00

          Office of Budget and Finance 4.73 4.00 4.42 5.00 5.00 5.00 0.58 0.00

          Office of Management Services 5.00 5.00 4.80 5.00 5.00 5.00 0.20 0.00

Operational and Administrative Total 82.25 80.00 76.12 80.00 82.00 82.00 5.88 2.00

Total FTEs and Positions 123.41 124.00 118.10 123.00 126.00 126.00 7.90 3.00

* Denotes positions on September 30.

** Reflects 2013 reduced FTE levels due to agency‐wide furlough necessitated by 2013 funding level.

Actual Estimate Request From FY 13

FTEs and Positions by Program

FY 2012 ‐ FY 2014

FY 2012 FY 2013 FY 2014 Difference
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-18- 

FY 2012 FY2013 FY2014

Category Actual Estimate Request Difference

     (11.9) Full‐time Permanent Employees 13,760,952.04 $    $   13,501,000.00 $   14,558,000.00 $     1,057,000.00

     (11.3) Part‐time and Temporary Employees 107,457.88 $          $            ‐ 57,000.00 $                         $         (57,000.00)

     (11.7) Performance Awards $          ‐ 100,114.00 $                         ‐ $                         ‐ $                        

     (12.1) Civilian Personnel Benefits $     3,595,475.24 $     3,606,000.00 $     3,920,000.00 $         314,000.00

Employees Total Personnel Compensation & Benefits 17,563,999.16 $    $   17,164,000.00 $   18,478,000.00 $     1,314,000.00

     (21.0) Travel and Transportation of Personnel $         203,867.48 $         130,000.00 $         170,000.00 $           40,000.00

     (22.0) Transportation of Things (Express Mail) 28,610.02 $            $           19,000.00 $            ‐ 19,000.00 $                        

          (23.1) Rental Payments to GSA 2,963,309.23 $      $     3,200,643.00 $     3,305,000.00 $         104,357.00

          (23.2) Rental Payments to Others 31,671.62 $            $              ‐ 2,357.00 $                         $            (2,357.00)

          (2.35) Telephones (Local, Long Distance and Cellular) 234,616.83 $          $         260,000.00 $          ‐ 260,000.00 $                        

          (28.3) Postage $             5,062.00 $             5,000.00 $              ‐ 5,000.00 $                        

     (24.0) Printing $         177,034.24 $         115,000.00 $         139,000.00 $           24,000.00

     (25.1) Consulting $         392,591.24 $         283,000.00 $         550,000.00 $         267,000.00

     (25.2) Purchase of Goods and Services from Commercial Accounts 811,596.15 $          $         406,000.00 $         589,000.00 $         183,000.00

     (25.3) Purchase of Goods and Services from Government Accounts 1,087,457.64 $      $     1,050,425.00 $     1,155,000.00 $         104,575.00

     (25.7) Equipment Maintenance 77,763.94 $            $           62,000.00 $            ‐ 62,000.00 $                        

     (26.0) Supplies and Materials $         170,977.41 $         117,000.00 $         205,000.00 $           88,000.00

     (31.0) IT Hardware and Software 264,790.62 $          $           25,000.00 $           63,000.00 $           38,000.00

Travel and Administrative Expenses 6,449,348.42 $      $     5,675,425.00 $     6,522,000.00 $         846,575.00

Spending Authority 24,013,347.58 $    $   22,839,425.00 $   25,000,000.00 $     2,160,575.00

Travel and Administrative Expenses

Obligations by Object Class

FY 2012 ‐ FY 2014

Rent, Communications and Utilities

Personnel Compensation and Benefits
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-19- 

FY 2012 FY 2013 FY 2014

Actual Request Request

$10,742,476.00 $10,674,072.00 $11,652,852.00

$136,771.00 $131,087.00 $138,050.00

$107,458.00 $57,000.00 $0.00

$2,881,705.00 $2,696,575.00 $2,767,098.00

$111,842.02 $110,233.61 $115,539.68

     GS‐04 0.00 0.00 0.00

     GS‐05 2.00 0.00 0.00

     GS‐06 1.00 2.00 2.00

     GS‐07 2.00 3.00 5.00

     GS‐08 6.00 6.00 6.00

     GS‐09 1.00 2.00 3.00

     GS‐10 0.00 0.00 1.00

     GS‐11 1.00 1.00 1.00

     GS‐12 20.00 19.00 18.00

     GS‐13 28.00 23.00 22.00

     GS‐14 22.00 25.00 27.00

     GS‐15 24.00 26.00 25.00

12.80 12.87 12.71

     GM‐14 1.00 1.00 1.00

     ES 8.00 8.00 8.00

     AL 3.00 2.00 2.00

     Presidential Appointees (EX) 5.00 5.00 5.00

124.00 123.00 126.00

Average GS Grade

Total Positions

General Schedule / Schedule‐C Employees

Average Salary and Grade                                                      

(Excludes Benefit Costs)

FY 2012 ‐ FY 2014

Average Grade (Includes Part‐time Positions)

Salaries

Category

     Full‐time Permanent GS

     Full‐time Permanent GM

     Part‐time and Temporary

     Other (Schedule‐C, AL, ES, EX)

Overall Average Salary
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-20- 

Strategic Goal # 1 Strategic Goal # 2

Maintain an

efficient and

competitive

international

ocean

transportation

system

Protect the public

from unlawful,

unfair and

deceptive

practices and

resolve shipping

disputes

Formal Proceedings

     Office of the Chairman $486,520.70 $448,434.88 $124,923.27 $499,693.10 $624,616.37 $138,095.67 $176,181.49

     Office of the Commissioners $1,705,289.44 $1,627,020.76 $385,975.95 $1,543,903.82 $1,929,879.77 $224,590.33 $302,859.01

     Office of the Secretary $1,153,277.22 $1,126,840.99 $240,764.03 $1,007,642.06 $1,248,406.09 $95,128.87 $121,565.10

          Library $326,344.11 $263,165.13 $147,085.31 $220,627.97 $367,713.28 $41,369.17 $104,548.15

     Office of Consumer Affairs and Dispute Resolution Services $1,163,894.57 $1,265,934.33 $160,417.67 $1,122,923.68 $1,283,341.35 $119,446.78 $17,407.02

     Office of the General Counsel $2,069,513.35 $2,007,642.07 $1,118,628.20 $896,918.10 $2,015,546.30 ($53,967.05) $7,904.23

          Ethics $0.00 $2,218.29 $346.28 $1,096.56 $1,442.84 $1,442.84 ($775.45)

     Office of Administrative Law Judges $634,454.13 $688,256.46 $130,394.07 $521,576.27 $651,970.34 $17,516.21 ($36,286.12)

Formal Proceedings Total $7,539,293.52 $7,429,512.91 $2,308,534.79 $5,814,381.55 $8,122,916.34 $583,622.82 $693,403.43

Office of Equal Employment Opportunity $205,099.55 $190,286.27 $39,358.21 $157,432.84 $196,791.05 ($8,308.50) $6,504.78

Office of the Inspector General $719,641.55 $663,693.37 $385,330.44 $385,330.44 $770,660.88 $51,019.33 $106,967.51

Operational and Administrative

     Office of the Managing Director $2,061,915.18 $2,114,106.92 $499,391.47 $1,640,857.67 $2,140,249.14 $78,333.96 $26,142.22

          Bureau of Trade Analysis $3,024,596.90 $2,718,464.44 $1,778,152.32 $1,226,148.04 $3,004,300.36 ($20,296.54) $285,835.92

          Bureau of Certification and Licensing $2,366,443.03 $2,204,875.58 $0.00 $2,335,393.79 $2,335,393.79 ($31,049.24) $130,518.21

          Bureau of Enforcement $1,822,310.68 $1,835,264.88 $0.00 $2,020,384.10 $2,020,384.10 $198,073.42 $185,119.22

          Area Representatives $1,651,296.53 $1,780,656.77 $0.00 $1,927,674.97 $1,927,674.97 $276,378.44 $147,018.20

          Office of Information Technology $2,381,090.80 $1,831,230.79 $455,843.24 $1,823,372.94 $2,279,216.18 ($101,874.62) $447,985.39

          Office of Human Resources $761,896.07 $631,060.59 $126,981.65 $507,926.59 $634,908.24 ($126,987.83) $3,847.65

          Office of Budget and Finance $737,607.62 $693,196.69 $153,911.12 $615,644.50 $769,555.62 $31,948.00 $76,358.93

          Office of Management Services $742,156.15 $747,075.79 $159,589.87 $638,359.46 $797,949.33 $55,793.18 $50,873.54

Operational and Administrative Total $15,549,312.96 $14,555,932.45 $3,173,869.66 $12,735,762.07 $15,909,631.73 $360,318.77 $1,353,699.28

Totals $24,013,347.58 $22,839,425.00 $5,907,093.09 $19,092,906.91 $25,000,000.00 $986,652.42 $2,160,575.00

Federal Maritime Commission

Request by Strategic Goal and Program

FY 2014

Program/Office FY 2012 Actual FY 2013 Estimate

FY 2014 Request

FY 2014 Request

Changes Over      

FY 2012 Actual

Changes Over      

FY 2013 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-21- 

FY 2013 FY 2014 Net

Request Estimate Change

Spending Authority $22,839,425.00 $25,000,000.00 $2,160,575.00

Full‐time Equivalents 118.10 126.00 7.90

Positions 123.00 126.00 3.00

Amount

$184,000.00

$597,000.00

$83,000.00

$0.00

$136,000.00

$314,000.00

$1,314,000.00

$40,000.00

$0.00

$102,000.00

$0.00

$0.00

$0.00

$24,000.00

$267,000.00

$183,000.00

$104,575.00

$0.00

$88,000.00

$38,000.00

$846,575.00

$2,160,575.00

2014 promotions and WIGs for Eligible Staff

     Total Personnel Compensation and Benefits

Costs associated with Employee Benefits

          (28.3) Postage

     (24.0) Printing

Travel and Administrative Expenses

     Rent, Communications and Utilities

     (22.0) Transportation of Things (Express Mail)

          (23.1) Rental Payments to GSA

          (23.2) Rental Payments to Others

          (23.5) Telephones ( Local, Long Distance and Cellular)

Performance Awards

Additional Positions (3)

Total Changes

     (21.1) Travel and Transportation of Personnel

     (25.2) Purchase of Goods and Services from Commercial Accounts

     (25.3) Purchase of Goods and Services from Government Accounts

     (25.7) Equipment Maintenance

     (26.0) Supplies and Materials

     (25.1) Consulting

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

     Total Travel and Administrative Expenses

Summary of Changes

FY 2013 ‐ FY 2014

Category

2014 Estimated Pay Raise @ 1.7 %

Annualization of FY 2013 Salary Increases (includes adjustment for 2013 furloughs)

Explanation of Changes :
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-22- 

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, 

[$22,839,425/\]: Provided, That not to exceed $2,000 shall be available for official reception and $25,000,000

representation expenses (Consolidated and Further Appropriations Act, 2013). 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-23- 

FMC Fiscal Year 2014 Budget Request by Strategic Goal 

The mission of the FMC 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 U.S. pursuant to the provisions of the Shipping Act. The FMC has 

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

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

agreements, licensing of qualified OTIs, and overseeing the financial responsibility of 

both OTIs and PVOs. The FMC’s oversight responsibilities have a direct impact on the 

financial well-being of every American who purchases goods which arrive in the U.S. 

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 2014 budget request totals $25,000,000 and funds

126 full-time equivalents (FTEs). This represents an increase of $2,160,575 over the 

enacted Fiscal Year 2013 appropriation and is $1,000,000 less than requested in the 

President’s budget for Fiscal Year 2013. 

The request contains $18,478,000 for salaries and benefits to fund salaries and benefits 

for the 123 positions expected to be on board at the end of fiscal year 2013 and 

provides funding for three entry-level positions to backfill some critical vacancies. It also 

includes funding for the anticipated January 2014 pay increase of 1.7%. 

Official travel is funded at $170,000. This funding level is an increase of $40,000 above 

the Commission’s post-sequestration 2013 funding level and represents a 17% 

reduction below the Commission’s 2012 travel expenses. 

Administrative expenses to be funded in fiscal year 2014 to support our usual and 

customary business expenses, such as rent, security, telephones, postage, commercial 

and government contracts, and supplies, have increased to $806,475 from the enacted 

fiscal year 2013 funding level. This includes an increase of $102,000 associated with a 

new General Services Administration (GSA) lease for office space effective in 

November 2012. It also includes an increase of $24,000 for printing, including 

mandatory printing of Commission issuances in the Federal Register. It also includes 

very modest increases of $38,000 to acquire much-needed IT hardware and software, 

$40,000 to train current staff, and $88,000 for supplies and materials, most of which is 

to acquire materials that could not be purchased in FY 2013. The remaining $514,575 

increase is required for government and commercial contracts, including the cost of 

facilities and data security, shared government services and technology investments to 

improve efficiencies and maintain mission-critical computer applications. The 

Commission is working on improving technology to disseminate public information 

efficiently at lower costs by providing increased web-based and social media-based 

accessibility. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-24- 

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

transportation system 

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

and resolve shipping disputes 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-25- 

FY 2014 Budget Request by Program

Formal Proceedings IG EEO Operational & Administrative

40.00

3.00

1.00

82.00

FY 2014 FTE Request by Program

Formal Proceedings IG EEO Operational & Administrative
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-26- 

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operational and Administrative

Unobligated

                                           Budget Authority

                                           Obligations

                                           Outlays*

                                           Outlay Rate (Obligation to Outlay)**

                                           Obligation Rate

Total outlaysfor fiscal year 2007 disbursed in fiscal year 2012

Total outlaysfor fiscal year 2008 disbursed in fiscal year 2012

Total outlaysfor fiscal year 2009 disbursed in fiscal year 2012

Total outlaysfor fiscal year 2010 disbursed in fiscal year 2012

Total outlaysfor fiscal year 2011 disbursed in fiscal year 2012

Total outlaysfor fiscal year 2012

                                           Outlays

* Represents Outlays for FY 2012 only

** Represents the percentage of FY 2012 obligations that were disbursed during FY 2012

$764.05

$1,731.28

$24,100,000.00 $22,838,425.00 $25,000,000.00

$24,013,347.58 $22,838,425.00 $25,000,000.00

Grosss Outlays for FY 2012

$21,370,315.40 $20,324,710.82 $22,248,371.79

$3,835.28

$23,533,806.08

$84,922.94

$2,072,237.13

$21,370,315.40

$205,099.55 $190,286.27 $196,791.05

$719,641.55 $663,693.37 $770,660.88

$7,539,293.53 $7,428,512.91 $8,122,916.34

Relationship of Obligations to Outlays

FY 2012 ‐ FY 2014

FY 2012             

Actual

FY 2013         

Estimate

FY 2014             

Request

$15,549,312.96 $14,555,932.45 $15,909,631.73

88.99% 88.99% 88.99%

99.64% 100.00% 100.00%

$86,652.41 $0.00 $0.00
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-27- 

Formal Proceedings Program

The Offices of the Commissioners, OS, CADRS, OGC and OALJ comprise the Formal 

Proceedings Program. Within this program, the Commission conducts hearings, 

renders formal decisions in the disposition of docketed cases, maintains all official 

documents arising from proceedings, provides an ADR program to facilitate dispute 

resolutions, and conducts external representation activities before the Congress, courts 

of law, and other agencies. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Chairman 2.39 2.40 3.00

Commissioners 6.97 6.94 8.00

Secretary 6.27 6.72 7.00

     Library 1.00 0.96 1.00

CADRS 7.07 7.69 8.00

General Counsel 10.42 10.18 10.00

Administrative Law Judges 3.04 3.46 3.00

Total FTEs 37.16 38.35 40.00

Cost: Salaries & Benefits $5,747,919.49 $5,793,826.83 $6,249,793.18

Non‐Personnel Expenses $1,791,374.03 $1,635,686.08 $1,873,123.16

Total Cost $7,539,293.52 $7,429,512.91 $8,122,916.34

Federal Maritime Commission

FY 2014 FTE by FMC Strategic Goal

Formal Proceedings

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

28.90

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

11.10

Strategic Goal 1

$2,308,534.79

FY 2014 Cost by FMC Strategic Goal

Strategic Goal 2

$5,814,381.55
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-28- 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-29- 

Office of the Chairman

The Chairman of the Commission is designated by the President of the U.S. and serves 

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

has exclusive authority over agency personnel matters, organization and supervision, 

distribution of business and use of funds for administrative purposes. 

Throughout fiscal year 2012, Chairman Lidinsky continued to emphasize making the 

Commission more nimble and responsive to the millions of Americans who work in or 

rely on international trade and transportation. He has been responsive to Congress, as 

reflected in the Cargo Diversion study, and also to the needs of other Federal agencies, 

as demonstrated by FMC staff acquainting staff of agencies involved in ocean 

shipments with the practices of ocean carriers. He also has opened lines of 

communication with major trading partners of the U.S. to discuss related regulations. 

Through the past five decades, the Commission has adapted to, and evolved with, the 

dramatic changes in international ocean transportation, while continually playing a 

crucial role in protecting America’s ocean commerce for our importers, exporters and 

consumers. 

President Obama designated Mario Cordero as Chairman of the Federal Maritime 

Commission effective April 1, 2013. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Chairman 2.39 2.40 3.00

Cost: Salaries & Benefits $373,298.37 $345,061.87 $477,175.98

Non‐Personnel Expenses $113,222.33 $103,373.01 $147,440.39

Total Cost $486,520.70 $448,434.88 $624,616.37

$124,923.27

FY 2014 Cost by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

Strategic Goal 2

$499,693.10

Strategic Goal 1

Federal Maritime Commission

Formal Proceedings

Office of the Chairman

FY 2014 FTE by FMC Strategic Goal

2.40

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

0.60
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-30- 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-31- 

Office of the Commissioners

The Chairman and four Commissioners are responsible for making decisions and 

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

and expeditious resolution of all matters arising under statutes administered by the 

Commission. The Commission promulgates rules and regulations and issues decisions 

which interpret, enforce and assure compliance with the 1984 Act, as amended by the 

Ocean Shipping Reform Act of 1988 (OSRA), the 1920 Act, FSPA, and Sections 2 and 

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

In 2012, the Commission released its Bureau of Trade Analysis’s Study of the 2008 

Repeal of the Liner Conference Exemption from European Union Competition Law. The 

primary issue addressed in the multi-year study was: What impact has the repeal of the 

liner conference block exemption in Europe had on U.S. liner trades? The study was 

launched in response to concerns that the EU’s repeal might produce freight rate 

reductions in EU liner trades relative to U.S. liner trades. The study’s primary finding is 

that through 2010, “The repeal of the block exemption does not appear to have resulted 

in any negative impact on U.S. liner trades.” Rates “declined to the same degree in both 

U.S. and EU import trades,” and “increased to a similar degree in both U.S. and EU 

export trades being compared.” 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Commissioners 6.97 6.94 8.00

Cost: Salaries & Benefits $1,359,888.24 $1,302,731.75 $1,559,441.46

Non‐Personnel Expenses $345,401.20 $324,289.01 $370,438.31

Total Cost $1,705,289.44 $1,627,020.76 $1,929,879.77

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of the Commissioners

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

$385,975.95

Strategic Goal 1

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.40

Strategic Goal 2

$1,543,903.82

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.60
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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During the fiscal year the Commission entered into a memorandum of understanding 

(MOU) with the U.S. Department of Transportation FMCSA to facilitate cooperation 

between the agencies in providing enhanced protection and assistance for consumers 

who move their household goods. The agreement leverages the efforts of FMCSA, 

which regulates interstate household goods moves, and the FMC, which regulates 

overseas household goods moves by water. This initiative follows through on a 

recommendation made by the Fact Finding Officer and adopted by the Commission in 

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, and supports the Commission’s Strategic Goal to protect 

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

shipping disputes. 

The Commission also issued a final rule for freight index-based service contracts to 

provide flexibility and certainty to ocean carriers and their customers. The new rule 

clarified that service contracts can reference freight indices or other outside terms, as 

long as they are readily available to the contracting parties and the Commission. 

Additionally, during the fiscal year ending September 30, 2012, the Commission issued 

70 orders and notices in docketed proceedings. 
Federal Maritime Commission

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Office of the Secretary

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

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

Office receives and processes a variety of documents filed by the public, including: 

formal and informal complaints initiating adjudicatory proceedings for alleged violations 

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

requests to correct clerical or administrative errors in service contracts or NVOCC 

Service Agreements (NSAs); all communications, petitions, notices, pleadings, briefs, or 

other legal instruments in administrative proceedings; and subpoenas served on the 

FMC, its members, or employees. 

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

arguments and public hearings; preparing and submitting regular and notation agenda 

matters for consideration by the Commission, and preparing and maintaining the 

minutes of actions taken by the Commission on these matters; issuing orders and 

notices of actions of the Commission; maintaining official files and records of all formal 

proceedings and Commission regulations; maintaining historical Commission decisions; 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Secretary 6.27 6.72 7.00

Cost: Salaries & Benefits $859,661.71 $892,780.81 $950,406.39

Non‐Personnel Expenses $293,615.51 $234,060.18 $297,999.70

Total Cost $1,153,277.22 $1,126,840.99 $1,248,406.09

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of the Secretary

FY 2014 FTE by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

Strategic Goal 1

5.65

Strategic Goal 2

$1,007,642.06

Strategic Goal 1 Strategic Goal 2

Maintain an efficient and competitive international

ocean transportation system

1.35

$240,764.03
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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; processes and administers the Freedom of Information, 

Government in the Sunshine, and Privacy Acts. The Office also maintains a public 

reference/law library and a Docket Activity Library; oversees the maintenance, 

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

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

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

participates in the development and coordination of agency-wide public 

relations/education strategies and initiatives. 

During fiscal year 2012, the OS continued to administratively process and direct all 

filings addressed to the Commission and its component offices, including agreements 

filed under section 5 of the 1984 Act. The Office also issued 66 orders and notices in 

docketed proceedings on behalf of the Commission. 

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

prepares or coordinates the preparation of Commission news releases; responds to 

public and press inquiries or directs inquiries to the appropriate Commission 

bureau/office; and monitors the trade press for matters of agency interest for referral to 

the Chairman, Commissioners and staff. 

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

public awareness of the agency. The Office promotes transparency and accountability 

on behalf of the Commission by evaluating, developing and implementing improvements 

to the Commission’s website. During fiscal year 2012, the Office increased the amount 

of information available on specific topics and agency-related issues. The Office 

worked with other Commission components and other agencies to provide information 

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

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

China’s new shipping policies, maritime environmental issues, and Negotiated Rate 

Agreement guidance. These informative online resources provide easy public access to 

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

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

transportation in the foreign commerce of the U.S. 

In 2012, the Office completed work to redesign the Commission’s website. This new 

graphic design and layout for the Homepage and interior pages significantly improved 

content organization to render a more citizen-centered website, enhanced navigation, 

added more social networking/communications capabilities, and further improved 

search engine optimization to improve public visibility of the Commission’s website and 

services. The redesign followed a process of gathering valuable input from 

representatives of the shipping industry, intermediaries, the public, and the media, in an 

effort to improve the quality, clarity, and accessibility of information that the Commission 

provides to the shipping public. The process also included input from each of the 
Federal Maritime Commission

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Commission’s offices and bureaus. In addition to a new overall graphical layout and 

look, the new site incorporates recommendations for a more user-friendly structure and 

improved navigation pathways. This upgrade supports the goals of the agency’s Plain 

Writing Act of 2010 Plan and President Obama’s directive that government should be 

transparent, participatory, and collaborative. 

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

function of the Office. The Office electronically converts all official Commission files 

(both current and historical); and is responsible for planning, scheduling and 

systematically scanning documents for other agency components. This Document 

Management Program helps support the agency’s initiatives for COOP by: improving 

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

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

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

proceedings available through its website. 

During the fiscal year, the Office completed compilation and website posting of contents 

of 28 bound volumes of historical Commission decisions issued between the years 1919 

and 1987 into “electronic volumes.” 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 is now 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 years 2012 and 2013, the Office will work to develop an electronic, 

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

database will provide a more efficient research tool for historical cases and decisions 

related to informal docket proceedings filed with the Commission. The database will 

initially be available to staff attorneys, settlement officers, and the Office of 

Administrative Law Judges. 

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

and deceptive ocean transportation practices and resolve shipping disputes, during 

fiscal year 2012 the Office continued to lead an agency-wide team in the process of 

reviewing the Commission’s Rules of Practice and Procedure. Emphasis is on 

evaluating the Commission’s procedures against current Federal Rules of Civil 

Procedure and updating procedures where appropriate. A final rule was published in 

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

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

and enhanced privacy protections for the public. In February 2012, a proposed rule was 

published that would revise rules pertaining to proceedings, pleadings, and discovery. 

Revisions will continue through fiscal years 2013 and 2014 until all parts of the rules 

have been updated and streamlined. Also in 2014, the Office of the Secretary will begin 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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to develop a plan for a fully-automated filing process in docketed cases and further 

automation of case file maintenance.

In fiscal year 2014, contingent on appropriate agency funding, the Commission will 

develop and implement a mobile-optimized version of the FMC’s main website, which 

will be accessible on mobile devices such as smart phones and tablets. Development 

of a mobile-optimized FMC website will improve the public’s ability to access critical 

FMC information, e.g., OTI searchable database. 

The Commission will continue to increase the volume of documents accessible through 

its website in fiscal years 2013 and 2014, including information released under the 

Freedom of Information Act, and information currently available to the public only upon 

request or visit to the Commission’s offices, such as meeting transcripts and pleadings 

filed in docketed proceedings. 

 
Federal Maritime Commission

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Library

 The OS also oversees the Commission’s library. The library serves the needs of 

both the Commission and the public for research and information. It 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, and videos. The library also contains material on several related 

fields such as engineering, economics, political science, and a collection of legal 

publications. The library collection includes law encyclopedias, engineering textbooks, 

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

The library’s holdings consist of approximately 8,700 volumes and numerous 

microfiches, CD-ROMs, and online services. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Library 1.00 0.96 1.00

Cost: Salaries & Benefits $111,521.83 $106,428.14 $115,512.30

Non‐Personnel Expenses $214,822.28 $156,736.99 $252,200.98

Total Cost $326,344.11 $263,165.13 $367,713.28

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Library

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

0.60

Strategic Goal 2

$220,627.97

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.40

$147,085.31
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-39- 

Office of Consumer Affairs and Dispute Resolution Services (CADRS)

CADRS is responsible for developing and implementing the Commission's alternative 

dispute resolution (ADR), small claims, and industry education programs. The Office 

provides a variety of ADR services including ombuds, mediation, facilitation, and 

arbitration to facilitate the flow of U.S. ocean commerce and to avoid the inherent 

expense, delay, and disruption associated with litigation. The Commission provides 

neutrals to assist parties in both the pre-litigation and post-filing phases of disputes. In 

addition to Commission staff, outside neutrals may also be employed as necessary. 

Typical ADR matters include situations in which an NVOCC or vessel-operating 

common carrier (VOCC) has placed a hold on cargo in its possession, often for sums 

owed under a different contract of carriage. Other cases occur when an NVOCC has 

received cargo from its customer and taken payment for the transportation of the cargo, 

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

avoid the accrual of additional demurrage/detention/storage charges. CADRS also 

receives requests for assistance from VOCCs with respect to addressing various 

shipping issues encountered with NVOCCs and others in the logistics chain. An 

example of such request for assistance includes addressing challenges associated with 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: CADRS 7.07 7.69 8.00

Cost: Salaries & Benefits $918,660.64 $1,008,868.65 $1,031,320.13

Non‐Personnel Expenses $245,233.93 $257,065.68 $252,021.22

Total Cost $1,163,894.57 $1,265,934.33 $1,283,341.35

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of Consumer Affairs and Dispute Resolution Services

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

7.00

Strategic Goal 2

$1,122,923.68

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

1.00

$160,417.67
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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the misdeclarations of cargo either by an NVOCC or its underlying customer. CADRS 

also receives requests for assistance from truckers with respect to various issues 

encountered with providing drayage services on through bills of lading. 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 requests for ADR for issues 

involving cruise lines. 

In addition to providing ombuds services for disputes between regulated entities and the 

shipping public, CADRS also offers internal ombuds services. These services address 

disputes between a regulated entity and another Commission office. One example of 

this service is where a license applicant requests information or assistance in 

completing the license application process with the Commission’s BCL. 

CADRS staff also adjudicate 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. 

Additionally, CADRS staff educates regulatory stakeholders and the shipping public 

regarding Commission programs, regulatory requirements, industry best practices, and 

the use of ADR to resolve disputes. CADRS utilizes various mediums to fulfill its mission 

including, but not limited to: consumer alerts, webinars, public speaking and teaching 

engagements, trade association meetings, participation in public stakeholder meetings, 

and other individualized meetings and educational sessions with stakeholders. 

During fiscal year 2012, 670 requests for ombuds services were received that resulted 

in the opening of a dispute resolution proceeding. These included 132 passenger 

complaints about cruise line issues, 274 complaints with respect to household goods 

shipments, 262 complaints involving other cargo shipment matters, and 2 matters that 

involved other maritime-related issues. Cargo shipment complaints continued to be of 

increasing complexity. Problems involving OTIs 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. In addition, CADRS convened 

18 mediations involving various cargo and passenger concerns and closed 15 matters. 

It is anticipated that the complexity and number of ombuds and mediation cases will 

continue to increase in light of recent educational meetings with trade associations, 

regulatory stakeholders, and others in the logistics chain. In addition, the Commission 

recently entered into an MOU with the FMCSA to address household goods moving 

fraud. Through implementation of the MOU, FMCSA will refer to CADRS complaints 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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received by FMCSA involving international ocean shipments. In addition, the MOU 

provides for mechanisms for joint educational initiatives such as placement of 

information regarding international moving and CADRS on the FMCSA’s 

protectyourmove.gov website and the potential creation of an international complaints 

function on that website that will heighten CADRS’ visibility to the shipping public. 

It is also anticipated that during fiscal years 2013 and 2014, CADRS staff will undertake 

a greater role in advising agency management with respect to policies and practices 

that impact industry stake holders. In particular, CADRS will have a more prominent role 

in drafting agency policies and regulations. This is due to the fact that CADRS, as the 

office that addresses real time industry disputes and challenges, is uniquely positioned 

to identify industry trends and needs. 

In addition to external ombuds and mediation functions, CADRS will be expanding its 

services in fiscal year 2013 and fiscal year 2014 to address intra-agency issues. In 

particular, CADRS staff is currently in the process of developing an internal ADR 

process to address employee disputes and grievances. It is anticipated that this service 

will utilize both internal staff and external contractors to meet agency needs. 

In addition, CADRS anticipates that requests for facilitation and commercial arbitration 

will increase in fiscal year 2013 and 2014. This is in light of the fact that CADRS 

heightened presence at industry meetings and functions as well as the fact that parties 

have begun to include provisions within service contracts that identify CADRS as an 

ADR provider in the event of a dispute. 

In fiscal years 2013 and 2014, CADRS intends to continue its efforts further expand 

awareness of its ADR services through internal and external education programs, 

training, and other appropriate methods. As part of these efforts, CADRS in 

collaboration with other agency offices, will launch an educational webinar series to 

educate consumers and regulated entities regarding Commission regulations, shipping 

trends and best practices, and the effective use of CADRS’ services to resolve on-going 

and real time shipping disputes. Use of mediation will be promoted to assist in resolving 

formal proceedings, service contract matters, and other significant disputes. 

 
Federal Maritime Commission

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-43- 

Office of the General Counsel (OGC)

The General Counsel 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 General Counsel also represents the 

Commission before courts and Congress, and administers the Commission’s 

international affairs program. The OGC has delegated authority to make determination 

of controlled carrier status. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: General Counsel 10.42 10.18 10.00

Cost: Salaries & Benefits $1,619,020.48 $1,591,897.37 $1,605,450.36

Non‐Personnel Expenses $450,492.87 $415,744.70 $410,095.94

Total Cost $2,069,513.35 $2,007,642.07 $2,015,546.30

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Offie of the General Counsel

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.45

Strategic Goal 2

$896,918.10

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

5.55

$1,118,628.20
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Rulemakings and Decisions 

The following are rulemakings and adjudications representative of matters prepared by 

the OGC: 

(a) Rulemakings and Decisions 

NVOCC Negotiated Rate Arrangements [Docket 11-22], 32 S.R.R. 350 (December 

20, 2011) 

On March 2, 2011, the Commission issued a final rule, promulgating 46 CFR Part 532, 

regulations which govern the exemption of licensed NVOCCs from their tariff rate 

publication obligations when entering into a “negotiated rate arrangement” (NRA). 

Commission Docket No. 10-03, 76 Fed. Reg. 11351, effective April 18, 2011. The 

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

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

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

particular rate prior to the receipt of the cargo by the common carrier or its agent 

(including originating carriers in the case of rates for through transportation).” The 

regulation exempts licensed NVOCCs who enter into NRAs from the following 

requirements of the Shipping Act: the requirement in Section 8(a), codified at 46 U.S.C. 

§§ 40501(a)-(c) that each common carrier keep open to public inspection in an 

automated tariff system tariffs showing all its rates; Section 8(b), codified at 46 U.S.C. § 

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

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

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

refunds); and Section 10(b)(2)(A)'s requirement of adhering to the published tariff rate, 

codified at 46 U.S.C. § 41104(2)(A). Licensed NVOCCs entering into NRAs must still 

comply with the prohibitions contained in Section 10(b)(4) of the Shipping Act, codified 

at 46 U.S.C. § 41104(4)(prohibiting common carriers from unfair or unjustly 

discriminatory practices in service pursuant to a tariff), and Section 10(b)(8), codified at 

46 U.S.C. § 41104(8)(prohibiting common carriers from undue or unreasonable 

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

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

foreign-based NVOCCs who are unlicensed but bonded pursuant to 46 CFR § 

515.21(a)(3). 

On December 20, 2011, the Commission issued a Notice of Inquiry (NOI), Docket No. 

11-22, seeking comments on ways to make NRAs more useful, including the possible 

extension of the ability to offer NRAs to foreign-based NVOCCs not licensed by the 

Commission. December 27, 2011 at 76 Fed. Reg. 80866. The comments were due by 

March 26, 2012. The Commission received 23 comments. An additional comment, that 

was not adverse, was received after the deadline. The Commission determined to 

issue a direct final rule revising 46 CFR Part 532 and adopting many of the suggestions 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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of the commenters, but not expanding the exemption to foreign-based NVOCCs who 

are unlicensed but bonded. 

(b) Decisions by the Commission 

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 CFR § 515.27 [Docket No. 06-06], 32 S.R.R. 578 

(FMC 2012) 

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 CFR § 515.27, by knowingly and willfully 

accepting cargo from or transporting cargo for the account of an ocean transportation 

intermediary that did not have a tariff and bond as required by sections 8 and 19 of the 

Act. With regard to EuroUSA, the ALJ approved a Settlement Agreement between 

EuroUSA and the BOE on October 9, 2009. With regard to Tober Group (Tober), the 

ALJ issued an Initial Decision (ID) in which he concluded that BOE did not prove that 

the unlicensed intermediaries with whom Tober did business operated as non-vesseloperating common carriers, 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. 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. 

On April 12, 2012, a majority of the Commission vacated the ALJ’s ID in part, reversed 

in part, and remanded the proceedings. The Commission vacated conclusions in the ID 

that Tober did not violate section 10(b)(11) of the Shipping Act, and remanded to the 

ALJ for reconsideration consistent with the Commission’s decision in Docket No. 06-01, 

Worldwide Relocations, Inc. – Possible Violations of the Shipping Act, 32 S.R.R. 495 

(FMC 2012). The Commission also reversed the ALJ’s denial of civil penalties and 

remanded for reconsideration consistent with the Commission’s order. Finally, the 

Commission granted a Motion to Withdraw as Counsel. The ALJ’s issued the Initial 

Decision on December 31, 2012, and the FMCs final decision is due by June 28, 2013. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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 CFR, 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 CFR Part 520 and 46 CFR Part 

515. On February 5, 2010, the Administrative Law Judge issued an Initial Decision 

finding, as to 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, as to 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 he 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 March 4, 2010, the Commission filed a Notice indicating its intention to 

review the ALJ’s Initial Decision. 

On April 26, 2012, the Commission vacated the Initial and Supplemental Decisions and 

remanded the matter to the ALJ for further proceedings consistent with the 

Commission’s holding in Worldwide Relocations, Inc., et al. – Possible Violations of the 

Shipping Act, FMC Docket No. 06-01, 32 S.R.R. 495. 

The ALJ’s issued the Initial Decision on December 31, 2012. The Commission’s 

deadline for a final decision is extended from October 29, 2012 until June 28, 2013. 

Anderson International Transport and Owen Anderson – Possible Violations of 

Sections 8(a) and 19 of the Shipping Act [Docket No. 07-02], 32 S.R.R. 568 (FMC 

2012) 

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 CFR §§ 515 and 520. On August 

28, 2009, the ALJ issued an ID finding that respondents violated section 19(a) of the 

Shipping Act by operating as an OTI without obtaining a license, and also violated 

section 19(b) by operating as an OTI 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 BOE failed to introduce evidence 

regarding respondents’ ability to pay a civil penalty. On December 8, 2009, BOE filed a 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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 that it would review the ALJ’s decision, and on March 15, 

2010, BOE filed exceptions to the ALJ’s decision. 

On April 26, 2012, the Commission vacated the Initial and Supplemental Decisions, and 

remanded the matter to the ALJ for further proceedings consistent with the its holding in 

Docket No. 06-01, Worldwide Relocations, Inc. – Possible Violations of the Shipping 

Act, 32 S.R.R. 495. The ALJ’s Initial Decision on Remand is due by December 31, 

2012, and the Commission’s final decision is due by June 28, 2013. 

Notice of Inquiry - Non-Vessel-Operating Common Carrier Service Arrangements, 

[Docket No. 12-05], (April 12, 2012) 

On April 12, 2012, the Commission issued an NOI, Commission Docket No. 12-05, 77 

Fed. Reg. 23202, seeking public comment on ways to make NSAs less burdensome 

and more effective and specifically requesting comments on extending the exemption to 

allow two or more unaffiliated NVOCCs to jointly offer NSAs. Comments were due by 

June 18, 2012 and the Commission received several comments. This matter is under 

review by the Commission. 

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 OGC 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: 

City of Oakland v. Federal Maritime Commission, United States Court of Appeals 

for the District of Columbia Circuit, Case No. 12-1080 

On February 9, 2012, the City of Oakland filed a petition for review of the Commission’s 

Order in FMC Docket 09-08, SSA Terminals, LLC, et al. v. The City of Oakland, 

upholding the ALJ’s denial of its motion to dismiss on the ground of Eleventh 

Amendment sovereign immunity. On March 26, 2012, the FMC filed the certified index 

to the record. The court granted SSA Terminals’ Motion to Intervene on March 29, 

2012. The Commission filed its brief July 5, 2012, and on July 18, 2012 the Intervenor 

filed its brief. The Commission filed its Final Brief on August 24, 2012. Oral argument 

was held on April 9, 2013. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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 by accepting cargo for transportation, and for advertising for or soliciting 

cargo while operating as an OTI without a valid license, bond or other security on file 

with the Commission. The District Court issued the requested preliminary injunction by 

order dated January 17, 2006. Specifically, the companies and individuals that are 

named and subject to the injunction are: All-In-One Shipping, Inc.; Around The World 

Shipping, Inc.; Boston Logistics Corp.; Global Direct Shipping; Daniel Cuadrado; 

Elizabeth F. Hudson; Joshua Morales. Injunctive relief remains in force pending 

conclusion of agency enforcement proceedings in FMC Docket No. 06-01. 

On August 16, 2010, the ALJ issued an ID 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 ID. The Commission determined to review the ID, and the 

Final Decision issued March 15, 2012, affirming the ALJ in part, reversing in part, and 

modifying in part. The Commission notified the District Court of the Final Decision on 

March 23, 2012, and the Court dissolved the preliminary injunction and terminated the 

case April 5, 2012. 

Legislative Activities

The OGC represents the Commission’s interests in all matters before Congress. This 

includes preparing testimony for Commission officials, responding to Congressional 

requests for information, commenting on proposed legislation, and responding to the 

OMB requests for views on proposed bills and testimony. 

During fiscal year 2012, 115 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 2013 budget authorization hearing held before the U.S. House of 

Representatives’ Committee on Transportation and Infrastructure’s Subcommittee on 

Coast Guard and Maritime Transportation. In addition, OGC helped prepare three 

Presidential nominees for confirmation hearings before the Senate Committee on 

Commerce, Science and Transportation. On November 11, 2011, the Senate confirmed 

one of those nominees. 

 

In fiscal years 2013 and 2014, OGC will continue to provide assistance 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. 
Federal Maritime Commission

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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 FSPA. 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 2012, the OGC 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 a 

requested change by the Ministry of Transport of the People’s Republic of China to 

revise the FMC’s rules implementing a US-PRC bilateral understanding addressing the 

ability of U.S. NVOCCs to do business in China. The OGC served as a technical 

advisor to the U.S. delegation regarding Chinese requirements for rate-filing and related 

issues at the 5th U.S. - People’s Republic of China Consultations on the Maritime 

Bilateral Agreement held in St. Louis, Missouri, in January 2012. 

Another responsibility of the OGC is the classification of controlled carriers subject to 

section 9 of the Shipping Act. Common carriers that are owned or controlled by foreign 

governments are required to adhere to certain requirements under the Act, and their 

rates are subject to Commission review. The OGC investigates and makes appropriate 

recommendations to the Commission regarding the status of potential controlled 

carriers. The OGC, in conjunction with other Commission components, also monitors 

the activities of controlled carriers. The OGC republished the list of Controlled Carriers 

on August 22, 2012. 77 Fed. Reg. 51801 (August 22, 2012). 

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 nonmarket barriers to trade. Where appropriate, the OGC recommends Commission 

action. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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 provides day-to-day advice and guidance to ensure compliance with the 

Standards of Ethical Conduct that apply to Executive Branch employees. 5 CFR Part 

2635. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Ethics 0.00 0.00 0.00

Cost: Salaries & Benefits $0.00 $0.00 $0.00

Non‐Personnel Expenses $0.00 $2,218.29 $1,442.84

Total Cost $0.00 $2,218.29 $1,442.84

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Formal Proceedings

Ethics

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

Strategic Goal 2

$1,096.56

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

Strategic Goal 1

$346.28
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Office of Administrative Law Judges (OALJ)

OALJ regulates the course of proceedings, conducts hearings, approves settlements, 

and renders decisions in adjudicatory proceedings held after receipt of a private 

complaint or when instituted by the Commission. Administrative Law Judges (ALJ) 

have authority to administer oaths and affirmations; issue subpoenas; rule upon motions 

and offers of proof; receive evidence; authorize depositions; regulate the course of 

hearings; hold pre-hearing conferences for the settlement or simplification of the issues 

involved; refer matters to mediation when appropriate; dispose of procedural requests; 

act as settlement judges in particular cases; and take any other action authorized by 

agency rule or the Administrative Procedure Act. 

The case load of the Office is governed by the number of complaints and applications 

filed, the number of formal proceedings instituted by the Commission on its own motion, 

and other matters assigned in furtherance of the Commission's regulatory functions. 

Proceedings that come before the Office include, but are not limited to, the adjudication 

of discriminatory or unfair and unreasonable practices between various parties subject 

to the shipping acts, and adjudication of shipper complaints. ALJs also can process 

special docket applications on an as-needed basis. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Administrative Law Judges 3.04 3.46 3.00

Cost: Salaries & Benefits $505,868.22 $546,058.24 $510,486.56

Non‐Personnel Expenses $128,585.91 $142,198.22 $141,483.78

Total Cost $634,454.13 $688,256.46 $651,970.34

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Formal Proceedings

Office of Administrative Law Judges

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Strategic Goal 1

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

2.40

Strategic Goal 2

$521,576.27

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.60

$130,394.07
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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At the beginning of fiscal year 2012, sixteen formal proceedings were pending (on hand) 

before OALJ (07-01, 08-03, 09-01, 10-05, 10-06, 10-08, 10-11, 11-06, 11-07, 11-08, 

11-11, 11-12, 11-13, 11-14, 11-15, and 1923(F)). During the year, six new formal 

proceedings were added (11-18, 11-21, 12-01, 12-02, 12-03, and 12-06) and four formal 

proceeding were remanded by the Commission (06-06, 06-09, 07-02, and 09-08). 

OALJ issued fourteen initial decisions or orders subject to review by the Commission in 

twelve proceedings: Initial decisions resolving five contested proceedings (10-06, 

10-08, 11-08, 11-13, and 11-14); initial decisions on default in two proceedings (10-11 

and 11-14); issued orders of voluntary dismissal in two proceedings (11-08 and 

1923(F)); and initial decisions approving settlements in five proceedings (10-05, 11-06, 

11-15, 11-18, and 11-21). 

During fiscal years 2013 and 2014, the Office will conduct hearings and render 

decisions on adjudicatory proceedings and on such rulemaking proceedings as may be 

referred to the Office. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Equal Employment Opportunity Program (EEO)

The Commission’s Office of EEO follows Federal EEO and personnel management 

laws, concepts, procedures and regulations to develop, implement and manage a 

comprehensive program of equal employment opportunity. The program is statutorily 

mandated with required activities in complaints processing, adjudication, affirmative 

employment program planning, workforce diversity management, special emphasis 

programs, community outreach, monitoring and evaluation. 

The Chairman is responsible for ensuring equal opportunity at the Commission. The 

Chairman has delegated this authority to the Director of Equal Employment Opportunity 

(DEEO). Operational responsibility for compliance with EEO policies and programs lies 

with the Commission's front-line managers. The DEEO 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; 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Headquarters 1.00 0.96 1.00

Cost: Salaries & Benefits $155,238.56 $147,699.64 $154,561.05

Non‐Personnel Expenses $49,860.99 $42,586.63 $42,230.00

Total Cost $205,099.55 $190,286.27 $196,791.05

0.20

Federal Maritime Commission

Equal Employment Opportunity Program

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2

Strategic Goal 1

$39,358.21

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

0.80

Strategic Goal 2

$157,432.84

FY 2014 Cost by FMC Strategic Goal

Maintain an efficient and competitive international

ocean transportation system
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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prepares and issues decisions for resolution of formal complaints; and monitors 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) when necessary, provided EEO 

and non-EEO related guidance to Commissioners, managers, supervisors and 

employees in addressing issues that arose; (2) collaborated with managers and 

supervisors in striving to maintain and effectively manage a diverse workforce; (3) 

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; (4) held commemorative programs for all FMC employees for National 

Black History Month, Women’s History Month, National Asian Pacific Heritage Month, 

National Hispanic Heritage, National Native American Heritage Month, while also 

recognizing Gay and Lesbian Pride Month through electronic announcement; (5) 

prepared all required EEO and affirmative employment program accomplishment 

reports and plans; (6) Collaborated with Equal Employment Opportunity Commission 

(EEOC) management staff to discuss more effective approaches for meeting the MD715 goals and objectives; and (7) 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 2013 and 2014, 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 Management 

Directive 715 (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 (EEOC) 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. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Inspector General Program (OIG)

The OIG operates pursuant to the Inspector General Act of 1978 (1978 Act) (5 U.S.C. 

App. § 3), as amended in 1988, and by the Inspector General Reform Act of 2008 

(Reform Act) (5 U.S.C. app. § 8G). The 1988 amendments created additional statutory 

Offices of Inspector General at various designated Federal entities, including the FMC. 

The Reform Act further enhanced the independence of Offices 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. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Inspector General 3.00 2.67 3.00

Cost: Salaries & Benefits $512,855.81 $484,033.66 $546,737.36

Non‐Personnel Expenses $206,785.74 $179,659.71 $223,923.52

Total Cost $719,641.55 $663,693.37 $770,660.88

Strategic Goal 1

$385,330.44

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.50

Strategic Goal 2

$385,330.44

FY 2014 Cost by FMC Strategic Goal

Maintain an efficient and competitive international

ocean transportation system

1.50

Federal Maritime Commission

Inspector General Program

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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The IG works independently under the general supervision of the FMC Commissioners. 

The IG does not report to, and is not subject to supervision by, any other employee of 

the FMC. The OIG has MOUs with the Office of Inspector General at the U.S. Social 

Security Administration for investigative assistance and the Federal Trade Commission 

for audit quality assurance support. In addition, the Office utilizes the expertise of 

private sector accountants and information security analysts to assist in performing 

specialized audits and reviews. 

During fiscal year 2012, the OIG issued an audit of the FMC’s fiscal year 2011 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), and audits/reviews of the Bureau of Enforcement’s Compliance Audit Program 

and FMC Controls Over the Procurement, Lease and Use of the Agency’s Vehicle. The 

OIG identified four management and performance challenges for inclusion in the FMC’s 

fiscal year 2011 Performance and Accountability Report (PAR). These assessments 

were based on information derived from a combination of sources, including OIG audit 

and inspection work, Commission reports, and a general knowledge of the 

Commission’s programs. The OIG also awarded a new contract to an independent 

public accounting firm to assist with the office’s annual financial statement audit. 

The OIG investigations unit received twelve complaints in fiscal year 2012. The OIG 

responded to five of the complaints and forwarded seven complaints to the appropriate 

FMC program areas for disposition or to other agency OIGs or programs with 

jurisdiction over the subject matter of the complaint. The OIG opened one new 

investigation, one preliminary investigation and referred one matter to prosecutorial 

authorities during this period. 

In addition to these audit and investigative activities and outcomes, OIG staff held 

information-sharing sessions with agency staff to identify and clarify the various OIG 

activities that assist in accomplishing the OIG’s mission to prevent and eliminate waste, 

fraud, abuse and mismanagement, and to promote efficiency and effectiveness. OIG 

staff also visited FMC area representatives in South Florida to enhance its 

understanding of the functions and activities performed by FMC ARs and, while there, 

gave a presentation to several members of the Miami business community and local 

government leaders about the role of Federal inspectors general. The OIG continued to 

respond to consumers who were victimized as part of an internet scam operation using 

FMC indicia and worked with the agency’s OGC to amend Commission regulations 

pertaining to IG reporting requirements as required by the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (P.L.111-203). 

During fiscal year 2012, in accordance with the 1978 Act, the OIG provided legal 

services, on a reimbursable basis, to the Architect of the Capitol OIG pursuant to an 

MOU. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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The OIG responded to an OIG community-wide request for information from the 

Chairman of the House Committee on Oversight and Government Reform, regarding 

open (unimplemented) OIG recommendations, and a request from the Government 

Accountability Office pertaining to OIG independence and effectiveness. 

OIG staff participated in several activities associated with the Council of Inspectors 

General on Integrity and Efficiency (CIGIE), including actively serving on the (i) 

Legislation Committee where OIG staff reviewed and commented on several legislative 

initiatives affecting the OIG community; and (ii) Integrity Committee, which reviews 

allegations of administrative (non-criminal) misconduct against inspectors general and 

designated senior staff members of the OIG. 

During fiscal years 2013 and 2014, the OIG will continue to place a high priority on 

audits and reviews with the objective of improving agency programs and operations. 

The OIG will complete statutorily-required reviews to include separate audits of the 

FMC’s 2012 and 2013 Financial Statements and an evaluation of the agency’s 

information security program and privacy assurance controls, as required by the Federal 

Information Security Management Act, continue site visits to FMC area offices to better 

understand regulatory and program issues and concerns from a field office perspective 

and continue to focus on reviews of FMC mission-based programs. 

The OIG will continue to actively participate in IG community activities and maintain 

membership in the CIGIE, the Council of Counsels to Inspectors General (CCIG) and 

the Federal Audit Executive Council (FAEC). The OIG will continue to work with the 

OMB, CIGIE, CCIG and FAEC on joint projects which affect the IG community. The 

Office will also continue to keep the Chairman, Commissioners, OMB and the Congress 

fully informed regarding its audit and investigative activities. 

 
Federal Maritime Commission

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Operational and Administrative Program

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Managing Director 9.20 9.20 9.00

Bureau of Trade Analysis 17.44 15.32 18.00

Bureau of Certification and Licensing 15.62 14.40 15.00

Bureau of Enforcement 10.00 9.61 10.00

Area Representatives 8.27 7.81 9.00

Office of Information Technology 6.99 6.71 7.00

Office of Human Resources 5.00 3.85 4.00

Office of Budget and Finance 4.73 4.42 5.00

Office of Management Services 5.00 4.80 5.00

Total FTEs 82.25 76.12 82.00

Cost: Salaries & Benefits $11,147,985.29 $10,738,439.87 $11,526,908.41

Non‐Personnel Expenses $4,401,327.67 $3,817,492.58 $4,382,723.32

Total Cost $15,549,312.96 $14,555,932.45 $15,909,631.73

Federal Maritime Commission

Operational and Administrative

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

65.83

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

16.17
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Office of the Managing Director (OMD)

As the Commission’s Chief Operating Officer, the Managing Director (MD) is 

responsible for the management, direction and coordination of the Commission’s 

operating programs and administrative functions. The following agency components 

report directly to the MD: BCL, BOE, BTA, ARs, OBF, OHR, OIT, and OMS. The MD 

also provides administrative direction to the OGC, OS, CADRS and ALJ. OMD now also 

has responsibility for the Commission’s strategic plan; the agency’s Performance 

Improvement Officer (PIO) is located within the office. 

 

Among other duties, the MD also serves as the agency’s Chief Financial Officer (CFO) 

and Chief Acquisition Officer (CAO). The Deputy MD is the Commission’s Competition 

Advocate. The Director of Strategic Planning and Regulatory Review within OMD 

coordinates development of the Commission’s strategic plan. 

The Director of Field Investigations (DFI) is also located within OMD. The OMD 

oversees activities of the ARs and the DFI provides oversight, coordination, direction 

and monitoring of Commission investigative activities, including those of ARs. The 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Managing Director 9.20 9.20 9.00

Cost: Salaries & Benefits $1,466,196.36 $1,550,479.58 $1,544,050.38

Non‐Personnel Expenses $595,718.82 $563,627.34 $596,198.76

Total Cost $2,061,915.18 $2,114,106.92 $2,140,249.14

FY 2014 Cost by FMC Strategic Goal

Federal Maritime Commission

Operational and Administrative

Office of the Managing Director

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

6.90

Strategic Goal 2

$1,640,857.67

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

2.10

Strategic Goal 1

$499,391.47
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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DFI’s responsibility includes extensive coordination among ARs and the BOE, 

determining investigative priorities and goals and directly supervising all investigative 

cases. 

In managing the day-to-day operations of the Commission, the OMD provides direction 

and coordination among Commission administrative and program components to 

assure synergism and cohesive efforts to achieve the Commission’s strategic goals. 

The OMD initiates recommendations for long-range plans, new or revised policies and 

standards, and rules and regulations, while issuing internal directives to Commission 

staff. 

During fiscal year 2012, OMD staff continued to coordinate plans to implement the 

recommendations of 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. The office was 

instrumental in pursuing and signing an MOU with the FMCSA agreeing to cooperate in 

providing enhanced protection and assistance for consumers who move their household 

goods. 

OMD also initiated cooperation with other agencies to leverage existing government 

assets. The MD signed MOUs with the Surface Transportation Board and the Census 

Bureau to share trade data. In addition, the OMD oversaw coordination with 

Department of Defense agencies and U.S. Agency for International Development 

regarding issues affecting their ocean transportation costs. 

The OMD coordinated efforts to study the diversion of U.S. cargo through Canadian and 

Mexican ports, pursuant to a congressional request. This involved extensive collection 

of information and input from various industry and government sources, and 

assessment by Commission staff. 

During fiscal year 2012, the MD initiated an effort to develop a long-range strategic plan 

for IT. The focus of the plan is to improve internal efficiencies, while providing improved 

data to support Commission programs. As an initial step, the MD established an 

Information Technology Advisory Board. Second, the Director of Strategic Planning and 

Regulatory Review was tasked with coordinating program office needs with OIT and the 

Chief Information Officer (CIO). An assessment of the agency’s IT program was 

initiated and a study made of Disaster Recovery options. The assessment has 

demonstrated the need for significant upgrades of existing systems. As funds become 

available, plans are being developed to make those needed upgrades. 

To accomplish uniform internal processes, the MD also established a system of internal 

Managing Directives to guide staff operations. These primarily deal with the 

administrative operations of the Commission. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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The OMD’s key objectives for fiscal years 2013 and 2014 include: (1) identifying 

significant industry issues as they arise and utilize combined resources of investigative, 

enforcement and dispute resolution to resolve industry-wide problems; (2) providing a 

forum for importers, exporters, shippers, carriers, ports, marine terminal operators and 

OTIs to have significant issues addressed; (3) exploring ways to utilize modern 

technology to enhance the efficiency of Commission operations, within the constraints 

of limited funds availability; (4) implementing the agency’s Human Capital Management 

Plan, particularly with respect to succession planning for the departure of highly skilled 

personnel; and (5) reviewing and updating Commission regulations governing OTIs and 

PVOs. 

OMD will continue to provide leadership to all Commission programs and activities to 

accomplish the agency’s strategic goals. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Area Representatives (ARs)

The Commission’s ARs represent the FMC in their respective areas. The Commission 

maintains a presence in Southern California, South Florida, New Orleans, New York, 

Houston and Seattle through ARs based in each of those locales. These 

representatives serve major ports and transportation centers within their respective 

areas and beyond. In representing the Commission, ARs act as a conduit for 

information to and from the maritime industry and the shipping public, resolve 

complaints and disputes between parties involved in international oceanborne shipping 

(often coordinating with CADRS), investigate alleged violations of the shipping statutes, 

and function as an intelligence resource to Commission headquarters. They provide 

advice and guidance to the shipping public, collect and analyze information of regulatory 

significance, and assess industry conditions. The ARs frequently cooperate and 

coordinate with other governmental agencies and departments, including Federal, state 

and local, providing shipping expertise and information and relaying Commission policy. 

The ARs inform the public about Commission requirements and services through 

activities such as seminars, participating in various conferences and trade shows, 

making presentations, and through various local community contacts. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Area Representatives 8.27 7.81 9.00

Cost: Salaries & Benefits $1,275,770.14 $1,314,674.00 $1,442,219.86

Non‐Personnel Expenses $375,526.39 $465,982.77 $485,455.11

Total Cost $1,651,296.53 $1,780,656.77 $1,927,674.97

Strategic Goal 1

$0.00

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

9.00

Strategic Goal 2

$1,927,674.97

FY 2014 Cost by FMC Strategic Goal

Maintain an efficient and competitive international

ocean transportation system

0.00

Federal Maritime Commission

Operational and Administrative

Area Representatives

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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In fiscal year 2012, hundreds of informal complaints were handled by the ARs. These 

complaints often involved unlawful activity. Where possible, compliance with statutory 

and regulatory requirements was achieved informally. In other instances, investigative 

cases were opened and the ARs conducted thorough investigations to determine the 

extent of unlawful activity. The ARs conducted investigations in fiscal year 2012 of 

unlawful shipping practices, including unlicensed OTI activities, misdescription of 

commodities by shippers, and improper service contract rate application by ocean 

carriers. The investigative actions by the ARs led to the development of several 

enforcement cases that were referred to the BOE for pursuit of civil penalties. 

Investigative activity by the ARs assists the FMC in ensuring fair competition by all 

participants in the trades to and from the U.S. 

The ARs were instrumental in the publication of public service announcements (PSAs) 

for each major port area in fiscal year 2012, warning consumers against the use of 

unlicensed OTIs. The ARs identified appropriate local publications, particularly those 

that would reach various ethnic communities that have been particularly vulnerable to 

fraudulent activity by unlicensed entities. The PSAs resulted in numerous inquiries and 

reports to the ARs regarding improper activity by both licensed and unlicensed OTIs, 

and appear to have helped educate consumers to be more alert to unlawful operators, 

saving many from potential losses. 

During fiscal year 2012, the ARs made a number of presentations to interested industry 

audiences in their areas, explaining OTI licensing requirements and compliance with the 

new NRA Tariff Rate Exemption. ARs also worked closely with a number of law 

enforcement agencies, including local jurisdictions such as the New York City Police 

Department, New Jersey State Police, and Houston Police Department, as well as 

federal agencies, including the Federal Bureau of Investigation (FBI). In addition, the 

South Florida ARs continued to provide valuable expertise and assistance to the ExportImport Bank of the United States (Ex-Im Bank) to facilitate the investigation by Ex-Im 

Bank’s IG Office of several cases of fraud against the U.S. government. 

The ARs also participated in task forces and initiatives sponsored by local law 

enforcement agencies, the U.S. Department of Justice, the Department of Homeland 

Security including Customs and Border Protection (CBP) and Immigration and Customs 

Enforcement (ICE), the Department of Commerce (DOC) and the FMCSA. This 

assistance and sharing of information contributed to the investigation of a wide range of 

unlawful activities. 

ARs continued to provide valuable assistance in implementing recommendations of 

Commission 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. The ARs have been actively 

involved in reaching out to the public, consumer groups, trade associations, and other 

government agencies in efforts to achieve regulatory compliance and protection for the 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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shippers of household goods and personal effects. During fiscal year 2012, the 

Commission entered into an MOU with FMCSA to cooperate in providing protection to 

consumers moving household goods. The ARs joined with CADRS in providing a 

seminar to FMCSA staff on the Commission’s investigatory processes and dispute 

resolution program. In addition, the ARs coordinated with FMCSA in investigating 

certain “rogue movers.” 

 

In fiscal years 2013 and 2014, the ARs will continue to represent the agency, educate 

and assist the shipping public, facilitate the resolution of informal complaints and 

disputes, and investigate unlawful practices by carriers, MTOs, OTIs and shippers. All of 

these activities by the ARs contribute to the FMC’s objectives of ensuring that ocean 

transportation in the foreign trades of the U.S. is characterized by fair competition and 

the free flow of cargo. 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-71- 

Bureau of Trade Analysis (BTA)

BTA reviews agreements and monitors the concerted activities of ocean common 

carriers and marine terminal operators under the standards of the 1984 Act. The Bureau 

also reviews and analyzes service contracts, monitors rates of government-owned and 

government-controlled carriers, reviews carrier published tariff systems under the 

accessibility and accuracy standards of the 1984 Act, 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 1984 Act. 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 FSPA and Section 19 of the Merchant Marine Act. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Director 3.35 2.88 3.00

OSCT 4.78 3.66 5.00

OECA 6.31 6.72 7.00

OAGR 3.00 2.06 3.00

Total FTEs 17.44 15.32 18.00

Cost: Salaries & Benefits $2,311,188.63 $2,051,251.53 $2,282,952.79

Non‐Personnel Expenses $713,408.27 $667,212.91 $721,347.57

Total Cost $3,024,596.90 $2,718,464.44 $3,004,300.36

Federal Maritime Commission

Operational and Administrative

Bureau of Trade Analysis

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

8.13

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

9.87

Strategic Goal 1

$1,777,660.71

FY 2014 Cost by FMC Strategic Goal

Strategic Goal 2

$1,226,639.65
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-72- 

As part of these responsibilities, BTA plans, develops, and conducts the following 

activities: (1) monitoring general trade conditions and economic developments in liner 

shipping; (2) overseeing concerted carrier and MTO activities; (3) developing economic 

studies and analyses in support of the Commission's regulatory responsibilities; (4) 

processing and analyzing carrier and marine terminal agreements; (5) providing expert 

economic testimony and support in formal proceedings, particularly regarding unfair 

foreign shipping practices; (6) processing, reviewing, and monitoring confidential service 

contracts and amendments (filed by ocean common carriers, conferences, and 

agreements), and NSAs; (7) providing regulatory guidance regarding NVOCC NRA; (8) 

reviewing requests to correct clerical or administrative errors in service contracts; (9) 

ensuring that statements of certain essential terms associated with service contracts are 

published in tariffs and made available to the public; (10) auditing tariff publishing 

systems to ensure that tariffs are accessible and accurate; (11) processing FMC-1 

registration forms submitted by carriers and conferences, and posting and updating the 

location of carrier tariffs on the Commission’s website; (12) acting on special permission 

applications to deviate from tariff publishing rules; (13) monitoring the activities of statecontrolled carriers; and (14) supporting other Commission components with regard to 

the Commission’s regulatory requirements. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Director 3.35 2.88 3.00

Cost: Salaries & Benefits $532,597.69 $445,812.03 $473,086.70

Non‐Personnel Expenses $713,408.27 $283,764.83 $290,901.01

Total Cost $1,246,005.96 $729,576.86 $763,987.71

Maintain an efficient and competitive international

ocean transportation system

2.00

Strategic Goal 1

$509,325.14

Strategic Goal 2

$254,662.57

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of the Director

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-73- 

The Bureau also 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. 

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 confidential contracts are 

filed with the Commission in the automated SERVCON system. Beginning in January 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: OSCT 4.78 3.66 5.00

Cost: Salaries & Benefits $546,098.96 $431,337.05 $475,129.85

Non‐Personnel Expenses $0.00 $103,021.86 $113,031.07

Total Cost $546,098.96 $534,358.91 $588,160.92

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Service Contracts and Tariffs (OSCT)

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.18

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.82

Strategic Goal 1

$96,554.95

Strategic Goal 2

$491,605.97
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-74- 

2005, the Commission permitted NVOCCs to enter into NSAs with their shipper 

customers. NSAs also are filed into the SERVCON system. 

Additionally, OSCT is responsible for maintaining an up-to-date electronic listing of tariff 

locations where carriers publish their publicly-available rules and rates for cargo 

carriage. 

During fiscal year 2012, there were 47,664 service contracts and 498,727 contract 

amendments filed into the SERVCON system. OSCT also processed 1,435 original 

NSAs and 2,114 amendments filed by 75 NVOCCs. OSCT received, processed, and 

reviewed 1,395 Form FMC-1 filings, making the locations of those tariffs available to the 

public through the FMC website. At the end of the fiscal year, OSCT had posted 5,210 

active/current tariff locations to the agency’s website. 

Also during fiscal year 2012, the Office conducted service contract research to develop 

data relevant to FMC Docket No. 11-19, U.S. Inland Containerized Cargo Moving 

Through Canadian and Mexican Seaports. OSCT also compiled service contract data 

for a feasibility analysis concerning the possible creation and maintenance of freight 

rate indices requested by several U.S. agricultural exporters. The Office assisted in the 

completion of the Bureau’s study of the impact of the repeal of the EU's block 

exemption. The Office also participated in an inter-agency conference to identify best 

practices in ocean transportation procurement, and provided maritime pricing expertise 

to other Federal agencies and departments. OSCT conducted ongoing service contract 

and tariff research in support of the Commission’s agreement monitoring program and 

ad hoc research to meet the agency’s internal needs for information. The Office 

conducted statistical research and briefed the Commission regarding service contracts 

on file that reference container freight indices. OSCT also conducted extensive research 

regarding the use of NSAs and NRAs by NVOCCs since the inception of these filings, 

and provided a status report to the Commission. The Office conducted further research 

to assist in the development of the NOI in Docket No. 12-05, Non-Vessel-Operating 

Common Carrier Service Arrangements, to solicit public comment on ways to improve 

46 CFR Part 531. 

In addition, OSCT performed a review and update of Carrier Automated Tariff System 

information to facilitate the review of tariffs by Commission staff that investigate carrier 

activities, assess carrier compliance, or resolve shipping disputes. The Office also 

conducted extensive research to identify inactive VOCCs and provided additional 

support for Docket No. 11-20, Publication of Inaccurate or Inactive Ocean Common 

Carrier Tariffs. OSCT subsequently removed forty inactive ocean common carrier tariff 

locations from the active tariff list on the FMC’s website. Additionally, the Office also 

conducted a compliance audit of NVOCC tariffs during the fiscal year. The Commission 

implemented 46 CFR Part 532 – NVOCC NRAs on April 18, 2011 which allows 

NVOCCs to “opt out” of publicly posting rate tariffs on the internet so long as they use 

NRAs exclusively. NVOCCs are required to keep records of their NRAs, which must be 

memorialized in writing, for a period of five years. Additionally, NVOCCs are required to 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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maintain rules tariffs which must be made available free of charge. At the end of fiscal 

year 2012, 465 NVOCCs had filed prominent notices or a rule in their respective tariff 

indicating that they have invoked the exemption. Since the inception of NRAs, OSCT 

has participated in various seminars to educate NVOCCs regarding NRA compliance 

and will continue to inform the shipping public, including developing web-based training 

to facilitate full compliance with NRA requirements. 

Despite relieving NVOCCs from the requirement to make available rate tariff locations 

through the Commission if they use NRAs only, OSCT does not predict a significant 

decrease in its work load through 2013 and 2014. 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 and ensure that published 

tariffs meet the Commission’s tariff publication requirements. 

In fiscal year 2012, the Bureau issued its study of the impact of the repeal of the EU’s 

block exemption covering the time period from 2006 through 2010. An update of the 

study to review trends in 2011 and 2012 is also planned. 

Office of Economics and Competition Analysis

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: OECA 6.31 6.72 7.00

Cost: Salaries & Benefits $894,236.90 $983,335.86 $1,038,683.61

Non‐Personnel Expenses $0.00 $234,862.94 $245,898.02

Total Cost $894,236.90 $1,218,198.80 $1,284,581.63

Maintain an efficient and competitive international

ocean transportation system

5.05

Strategic Goal 1

$926,733.89

Strategic Goal 2

$357,847.74

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Economics and Competition Analysis (OECA)

FY 2014 FTE by FMC Strategic Goal

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.95

Strategic Goal 1 Strategic Goal 2
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-76- 

OECA analyzes and oversees the competitive impact of agreements on file at the 

Commission to ensure that the activities of the agreement parties remain in compliance 

with the U.S. shipping statutes and regulations. OECA also advises the Commission on 

various general economic topics as well as the competitive impact of carrier 

agreements. In this regard, OECA reviews agreement monitoring reports, prepares 

economic analyses, studies and profiles on agreements, carriers and market conditions, 

and conducts special projects to identify and track relevant competitive and economic 

activity in the U.S. liner trades. 

In addition, OECA receives and reviews minutes of agreement meetings and reports 

filed by parties to agreements that are classified as potentially anti-competitive, such as 

agreements that contain authority to discuss and agree on rates, service contracts, the 

pooling of cargo or revenue, and/or capacity rationalization. During the fiscal year, 

OECA received 921 sets of minutes, 452 monitoring reports and related reports, 115 

voluntary service contract guidelines, 49 sets of meeting transcripts, and 3 applications 

for waivers to the minutes and/or monitoring report filing requirements. 

In fiscal year 2012, OECA administered its agreement oversight responsibilities 

regarding ocean common carriers and marine terminal operators and prepared various 

reports and analyses. These included: (1) completing the Bureau’s study of the impact 

of the repeal of the EU’s block exemption, Study of the 2008 Repeal of the Liner 

Conference Exemption from European Union Competition Law; (2) developing data 

sources for and researching economic factors relevant to FMC Docket No. 11-19, U.S. 

Inland Containerized Cargo Moving Through Canadian and Mexican Seaports, including

signing an agreement with the Surface Transportation Board to access and analyze the 

carload waybill sample files for 1998 through 2010; (3) compiling data for, conducting 

economic research relevant to, and preparing a feasibility analysis concerning the 

possible creation and maintenance of a set of freight rate indices for a group of U.S. 

agricultural exports using service contract data filed with the Commission; and 

subsequently preparing an NOI to invite public comments on the likely utility and 

appropriateness of the proposed undertaking; (4) analyzing and making 

recommendations concerning the need for continuing or revising the Commission’s 

requirement that the Transpacific Stabilization Agreement (TSA) and the Westbound 

Transpacific Stabilization Agreement (WTSA) file transcripts of meetings rather than 

meeting minutes with the FMC for agreement monitoring purposes; (5) preparing a 

memorandum to the Commission on proposed reporting requirements for an 

amendment to the Consolidated Chassis Management Pool Agreement (CCMP); (6) 

providing research assistance to the BCL with respect to possible adjustments in PVO 

financial responsibility coverage requirements, and providing economic analysis of the 

impact on small businesses of the resultant proposed rulemaking; (7) providing regular 

written reports and oral presentations to the Commission on international and national 

economic conditions and liner industry activities that are likely to affect U.S. liner trades 

in the near- and mid-term; (8) updating and expanding the BTA intranet website with 

trade and agreement profiles and other relevant information; (9) assisting with the 

computer programming of the SERVCON operating system to index and search service 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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contracts; (10) participating in the Automated Commercial Environment (ACE) under the 

CBP; (11) providing data and information on liner trade conditions and agreement 

matters in response to requests from within and outside the Commission; (12) meeting 

separately with representatives of the TSA and WTSA pursuant to previous 

Commission investigations; and (13) preparing a quarterly economic and trade briefing 

paper for the Commission. 

In fiscal years 2013 and 2014, OECA plans to continue to review and analyze the 

competitive impact of agreements and monitor the activities of agreement parties, 

particularly focusing on issues of adequate vessel capacity and equipment availability. 

In addition, OECA will remain a major contributor to the Commission’s monitoring of 

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

containerized goods in the U.S. With the increasing use of container freight rate indices 

in service contracts and index-based derivative transactions, OECA expects to play a 

role in assessing the potential impact of this new commercial development on market 

structure, conduct, and performance. 

Office of Agreements

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: OAGR 3.00 2.06 3.00

Cost: Salaries & Benefits $338,255.08 $190,766.59 $296,052.63

Non‐Personnel Expenses $0.00 $45,563.28 $71,517.47

Total Cost $338,255.08 $236,329.87 $367,570.10

Maintain an efficient and competitive international

ocean transportation system

2.00

Strategic Goal 1

$245,046.73

Strategic Goal 2

$122,523.37

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Trade Analysis

Office of Agreements (OAGR)

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

1.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-78- 

OAGR is responsible for analyzing incoming carrier and terminal agreements to 

determine if they meet the guidelines set out in the FMC’s regulations and to determine 

if their effect would be substantially anti-competitive as set out under section 6(g) of the 

Shipping Act of 1984 (Shipping Act). 

During fiscal year 2012, OAGR received 153 agreement filings, including amendments 

to existing agreements. OAGR reviewed, evaluated, and processed 143 filings. 

Agreement filing activity was relatively unchanged from the previous year. 

Parties to the CCMP Agreement filed their responses to the Commission’s formal 

request for additional information concerning their pending amendment to change the 

business model for overseeing chassis pools to which the parties contribute chassis. 

The notice for additional information elicited comments from the Institute of International 

Container Lessors, the National Industrial Transportation League, and International 

Longshoremen’s Association, and the Department of Justice. After a thorough analysis 

of the parties’ responses, the comments submitted, and with some further changes in 

the proposed amendment, the Commission approved the staff recommendation and 

allowed the amendment to become effective. The Commission also agreed with the 

staff recommendation to monitor the parties’ evolving business model to ensure that no 

issues arise that have anti-competitive implications. 

While resources remain constrained and the Office is involved with other Bureau 

projects, the average processing time per agreement filing remains comfortably under 

the statutory 45-day time frame. During fiscal years 2013 and 2014, OAGR will support 

an initiative to update the regulations pertaining to agreements to improve transparency 

and, with OIT support, plans to provide for the electronic filing of agreements. 

In fiscal years 2013 and 2014, 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. BTA's support of formal proceedings 

during fiscal years 2013 and 2014 will depend on the number and subject matter of the 

proceedings initiated over the period. Staff will continue to monitor key U.S. trade lanes 

and report their findings to the Commission, as appropriate. 

BTA will continue to assist the Commission’s investigative and enforcement initiatives, 

and oversee international trade issues, including unfair foreign shipping practices. As a 

Commission representative, the Bureau will continue to participate with the CBP in 

development of the Automated Commercial Environment/International Trade Data 

System (ACE/ITDS). The Bureau will also continue to participate in the Maritime Data 

Working Group and the Interagency Action Team for the National Committee on the 

Marine Transportation System. BTA will continue to provide support for inter-agency 

initiatives requiring staff’s maritime commercial and economic expertise, as well as 

agency-wide projects. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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In fiscal years 2013 and 2014, the Bureau has program initiatives that are either directly 

related to newly automated functions and procedures or that involve the improvement or 

enhancement of current automation. These program initiatives must be accomplished in 

conjunction with OIT. OAGR will undertake a review of the existing agreement filing 

requirements in an effort to make the filing process more efficient and transparent, and 

less burdensome, resulting in the issuance of a notice of proposed rulemaking during 

fiscal year 2013. 

OECA plans to further integrate its databases to facilitate efficient research and analysis 

capabilities. It will continue refining its tracking of operator vessel capacities, ship 

deployments, and changes in services by linking data made available by different 

providers, such as AXS Alphaliner, PIERS and IHS Fairplay Sea-Web, depending on 

budget constraints. Recently, for example, OECA obtained intermodal rail movement 

data, dating back to 1998, under an agreement with the Surface Transportation Board 

for use in research and analysis projects dealing with intermodal cargo movements. 

OSCT plans to work with OIT to optimize the internal architecture of the SERVCON 

system to allow the search functionality to keep pace with the rapid accumulation of 

records in the system. OSCT also seeks to collaborate with OIT to improve automation 

of internal Form FMC-1 processes to increase Office efficiency. BTA also plans to 

review how information is provided to the public regarding NRAs to enhance NRA 

compliance. OSCT also will continue to maintain an accurate record of tariff publication 

locations and monitor tariff accuracy by conducting periodic compliance audits of 

carriers operating in the U.S. trades. 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-81- 

Bureau of Certification and Licensing (BCL)

BCL has the responsibility for the Commission’s OTI licensing program and passenger 

vessel certification program. The Bureau: 

 Licenses and regulates OTIs, including ocean freight forwarders and 

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. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Director 2.42 2.88 3.00

OTI 7.28 6.72 7.00

OPVIP 5.92 4.80 5.00

Total FTEs 15.62 14.40 15.00

Cost: Salaries & Benefits $1,906,671.48 $1,774,502.51 $1,891,202.69

Non‐Personnel Expenses $459,771.55 $430,373.07 $444,191.10

Total Cost $2,366,443.03 $2,204,875.58 $2,335,393.79

Federal Maritime Commission

Operational and Administrative

Bureau of Certification and Licensing

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

15.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

FY 2014 Cost by FMC Strategic Goal

Strategic Goal 2

$2,335,393.79
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 Manages programs assuring financial responsibility of OTIs and passenger 

vessel operators, by developing policies and guidelines, and analyzing 

financial instruments and financial reports. 

 Develops and maintains information systems that support the Bureau’s 

programs and those of other Commission entities. 

The Bureau is organized into two offices: the Office of Transportation Intermediaries 

(OTI) and the Office of Passenger Vessels and Information Processing (OPVIP). The 

former reviews and approves applications for OTI licenses, and maintains and updates 

records about licensees. The latter reviews applications for certificates of financial 

responsibility with respect to passenger vessels, manage all activities with respect to 

evidence of financial responsibility for OTIs and passenger vessel owner/operators, and 

develop and maintain all Bureau databases and records of OTI applicants and 

licensees. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Director 2.42 2.88 3.00

Cost: Salaries & Benefits $388,285.59 $454,206.32 $483,210.29

Non‐Personnel Expenses $459,771.55 $115,029.51 $117,790.95

Total Cost $848,057.14 $569,235.83 $601,001.24

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$601,001.24

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of the Director

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

3.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-83- 

Office of Ocean Transportation Intermediaries

OTIs are transportation middlemen for oceanborne cargo moving in the U.S.-foreign 

trades. There are two types: NVOCCs and ocean freight forwarders. NVOCCs are 

common carriers that do not operate the vessels by which transportation is provided. 

Ocean freight forwarders in the U.S. arrange for the transportation of cargo with a 

common carrier on behalf of shippers and process documents related to those 

shipments. Both NVOCCs and ocean freight forwarders must be licensed by the 

Commission if they are located in the U.S. NVOCCs doing business in the U.S. foreign 

trades but located outside the U.S. (foreign NVOCCs) may choose to become licensed, 

but are not required to do so. Whether licensed or not, foreign NVOCCs must establish 

financial responsibility. All NVOCCs must publish electronic tariffs, which contain the 

NVOCC’s rates, charges, rules and practices. 

To become licensed by the Commission, an OTI must establish that it has the 

necessary character to render OTI services as well as establish its financial 

responsibility by means of a bond, insurance, or other instrument and through its 

Qualifying Individual (QI), has a minimum of three years of experience in ocean 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: OTI 7.28 6.72 7.00

Cost: Salaries & Benefits $822,357.04 $765,662.76 $822,909.72

Non‐Personnel Expenses $0.00 $182,873.23 $190,766.55

Total Cost $822,357.04 $948,535.99 $1,013,676.27

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$1,013,676.27

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of Transportation Intermediaries (OTI)

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

7.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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transportation intermediary activities in the U.S. An investigation of the applicant’s 

qualifications addresses such issues as accuracy of information provided in the 

application; integrity and financial responsibility of the applicant; character of the 

applicant and its QI; and length and nature of the QI’s experience handling OTI duties. 

Licensed ocean freight forwarders must establish financial responsibility in the amount 

of $50,000, and licensed NVOCCs, $75,000. An additional $10,000 of coverage is 

required for each unincorporated branch office in the United States other than one used 

to establish a U.S. presence, for a foreign licensed NVOCC. 

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 nonU.S.-based NVOCC must list in its tariff an agent for service of process in the U.S., and 

it must use a licensed OTI for OTI services performed on its behalf in the U.S. 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 transportationrelated activities under the Shipping Act. 

During fiscal year 2012, the Commission received 441 new OTI applications and 278 

amended applications, issued 363 new OTI licenses, and revoked 261 licenses. At the 

end of the fiscal year, 1,030 Ocean Freight Forwarders (OFFs), 1,759 U.S. NVOCCs, 

1,807 joint NVOCC/OFFs, and 70 foreign NVOCCs held active OTI licenses. An 

additional 1,233 foreign NVOCCs maintain proof of financial responsibility on file with 

the Commission, but choose not to be licensed. Overall, there are 200 more licensed 

and/or bonded OTIs, representing approximately a 3.5 percent increase from 5,699 

OTIs in fiscal year 2011 to 5,899 in fiscal year 2012. U.S. NVOCCs may file riders to 

their existing NVOCC bonds to meet financial responsibility requirements imposed by 

the Chinese government. The Commission received 154 riders providing optional proof 

of financial responsibility for NVOCCs serving the U.S.-China trade last year; twentythree riders were terminated. As part of its continuing outreach effort, the Bureau in 

fiscal year 2012 handled over 5,300 inquiries regarding licensing and related OTI 

issues. 

The Bureau worked diligently during the fiscal year to streamline the OTI licensing 

process and reduce the time needed to reach a licensing decision. The Commission’s 

goal was to complete 70 percent of all OTI license applications within 60 calendar days 

during fiscal year 2012. Despite reduced staffing, the Bureau completed over 90 percent 

of all OTI applications within 60 business days, exceeding the goal set by 20 percent. 

The Bureau continues to review its procedures in order to improve the timeliness of 

licensing determinations. 
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The automated Form FMC-18, Application for an Ocean Transportation Intermediary 

License, permits filers to complete an OTI application on-line, scan and attach required 

documents, and submit the application electronically. The filing system incorporates 

significant security features for the purpose of protecting applicant data, and detecting 

and preventing unauthorized system intrusion. The Bureau seeks additional efficiencies 

in its OTI licensing program through improvements to the automated Form FMC-18 

system. In fiscal year 2012, 95 percent of all incoming OTI applications received are 

through the electronic system. 

Office of Passenger Vessel 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. At the end 

of fiscal year 2012, the program encompassed 205 vessels and 40 operators, which 

had aggregate evidence of financial responsibility coverage in excess of $323 million for 

nonperformance and over $678 million for casualty. Certificates of performance cover 

financial responsibility for the indemnification of passengers for nonperformance of 

transportation. This requirement also helps prevent unscrupulous or financially weak 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: OPVIP 5.92 4.80 5.00

Cost: Salaries & Benefits $696,028.85 $554,633.43 $585,082.68

Non‐Personnel Expenses $0.00 $132,470.33 $135,633.60

Total Cost $696,028.85 $687,103.76 $720,716.28

Maintain an efficient and competitive international

ocean transportation system

0.00

Strategic Goal 1

$0.00

Strategic Goal 2

$720,716.28

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Bureau of Certification and Licensing

Office of Passenger Vessels & Information Processing (OPVIP)

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

5.00

Strategic Goal 1
Federal Maritime Commission

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operators from operating from U.S. ports. The required levels of coverage for 

nonperformance are determined by Commission regulation, to a current required 

coverage not to exceed $15 million per entity. Even after an operator has ceased 

operations and dissolved its corporate existence, the evidence of financial responsibility 

is still valid and available to claimants. Certificates of casualty are required to cover 

liability that may occur for death or injury to passengers or other persons on voyages to 

or from U.S. ports. The law provides for $20,000 coverage per person for the first 500 

passengers, and the scale decreases to $5,000 per person for passengers in excess of 

1,500. U.S. CBP is directed to refuse clearance to any vessel which does not comply 

with the FMC’s evidence of financial responsibility requirements for casualty and 

performance. During fiscal year 2012, the Commission approved and issued 13 

casualty certificates and 15 performance certificates. 

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 Bureau staff. 

During fiscal year 2012, no cruise operator ceased operation with unperformed cruises. 

The Bureau reviewed PVO activities and operations by monitoring current industry 

events and examining cruise lines’ unearned passenger revenue (UPR) information. 

Oversight of cruise line operations and activities ensures compliance with applicable 

statutes and Commission regulations. No on-site review was conducted this fiscal year. 

A rulemaking, as approved by Commission vote on July 14, 2011, was initiated to 

strengthen protections for cruise line customer deposits and prepayments and to reduce 

financial responsibility requirements for small cruise lines. This Notice of Proposed 

Rulemaking (NPRM) was issued on September 13, 2011 providing for public comment 

by November 21, 2011. The NPRM proposed to double the maximum coverage 

requirement for larger cruise lines from $15 million to $30 million, with a two year phasein period; adjust the maximum coverage requirement automatically to account for 

inflation, give relief to smaller vessel operators by reducing their coverage requirements 

to account for alternative forms of financial protections available to their customers, 

revise the application form, and add an expiration date to the Certificate (Performance); 

and make some technical adjustments to the regulations. Analysis of the comments to 

the NPRM and options for Commission action were presented to the Commission for 

consideration. 

During fiscal year 2012, the agency contracted with a vender to develop an enterprise 

solution to improve the agency’s database applications and to eliminate the need for 

duplicate data entry. BCL currently hosts two active databases, the Regulated Persons 

Index (RPI) and the FMC-18 for OTI applications. The RPI is a database containing up-
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to-date records of licensed OTIs, ocean common carriers, and other entities. A key 

function of the RPI is to display, 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 for China activity. In fiscal year 2012, this list was enhanced to 

allow for geo-searching based on an OTI’s location (e.g. city, state or zip code). 

In fiscal year 2013 and 2014, the Bureau will continue to develop and present options to 

the Commission for consideration to ensure that passenger vessel financial 

responsibility requirements for nonperformance provide appropriate protection for the 

public. The Bureau will take necessary steps to implement a decision reached by the 

Commission, including initiation of rulemakings or adjustments in PVO monitoring 

procedures; circulate, for Commission deliberation, suggested amendments to the 

regulations regarding OTI licensing and financial responsibility requirements to ensure 

continued protection of the shipping public in light of changed industry circumstances; 

and continue efforts to advance the development and implementation of an enterprise 

solution to provide an improved electronic application process for both OTIs and PVOs. 

 
Federal Maritime Commission

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-89- 

Bureau of Enforcement (BOE)

The BOE has primary responsibility for ensuring compliance with shipping statutes 

administered by the Commission, principally the Shipping Act. The Bureau is actively 

involved in the Commission’s outreach activities and interacts regularly with all 

segments of the ocean transportation industry. The Bureau is also active in maritime 

security and works closely with BCL to promote prompt licensing of all qualified OTIs, 

and with the CBP to ensure submission of complete and accurate shipping data. Bureau 

attorneys may be designated as Investigative Officers in nonadjudicatory fact finding 

proceedings. Additionally, Bureau attorneys work closely with the Commission’s 

investigatory personnel and participate as trial counsel in formal adjudicatory 

proceedings. BOE monitors all other formal Commission proceedings and relevant 

court actions in order to identify major regulatory issues and to advise the OMD and the 

other Bureaus and Offices. The Bureau participates with other Bureaus and Offices in 

committees and taskforces in the development of Commission policies, rules, and 

regulations, and also intervenes in formal complaint proceedings where appropriate. 

Through investigative personnel, the Bureau monitors and conducts investigations into 

the activities of ocean common carriers, OTIs (NVOCCs and OFFs), shippers, ports, 

MTOs, and other persons to ensure compliance with the statutes and regulations 

administered by the Commission, thereby providing maximum protection to all 

participants in the ocean transportation shipping industry. Activities include: (1) 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of the Director 10.00 9.61 10.00

Cost: Salaries & Benefits $1,467,185.00 $1,458,909.15 $1,580,911.06

Non‐Personnel Expenses $355,125.68 $376,355.73 $439,473.04

Total Cost $1,822,310.68 $1,835,264.88 $2,020,384.10

0.00

Strategic Goal 1

$0.00

FY 2014 Cost by FMC Strategic Goal

Strategic Goal 2

$2,020,384.10

Federal Maritime Commission

Bureau of Enforcement

Operational and Administrative

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

10.00

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-90- 

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 2012, 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 market-distorting activities such as various forms of secret rebates 

and absorptions, misdescriptions of commodities and misdeclarations of 

measurements, illegal equipment substitution, unlawful use of service contracts, as well 

as carriage of cargo by and for untariffed and unbonded NVOCCs, and joint carrier 

activities outside the authority of existing agreements or pursuant to unfiled agreements. 

Particular emphasis was placed on industry service contracting activities to ensure fair 

trading conditions and protection of the public. Many malpractice investigations were 

resolved informally, resulting in compromise settlements and payment of civil penalties. 

Other reviews were treated primarily as compliance matters and closed upon 

completion of remedial action by the OTI parties involved. However, certain 

investigations of carrier and MTO practices required the institution of formal adjudicatory 

proceedings in order to pursue remedies under the Shipping Act. 

Major investigations completed during fiscal year 2012 addressed investigations of 

household goods movers operating as unlicensed OTIs, including those VOCCs and 

licensed NVOCCs that provided service to unlicensed movers. Docket No. 11-06 (Indigo 
Federal Maritime Commission

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Logistics LLC, et al) was discontinued upon approval of a formal settlement agreement, 

payment of substantial civil penalties by the unlicensed, unbonded operator and its 

principals, and issuance of a cease and desist order barring the company and individual 

respondents from operating as an OTI or agent of an OTI for a period of 5 years. The 

Commission also initiated a formal investigation of OMJ International, OC International 

and Mr. Omar Collado, Docket No. 12-01, to determine whether respondents violated 

section 10(a)(1) of the Shipping Act by providing service to an unlicensed, unbonded 

NVOCC, and whether respondents should still qualify to be licensed as an OTI. The 

Bureau completed the formal discovery process in June, and filed its prehearing 

statement in August 2012. In Docket No. 12-04, the Bureau submitted a memorandum 

of law and supporting affidavits seeking revocation of the OTI license of respondent 

Trans World Logistics Corp., for failure to report the resignation of the licensee’s QI and 

failure to respond to lawful inquiries of the agency. The Commission issued an order in 

July 2012, directing Trans World to cease and desist from operating as an OTI. In 

Docket No. 11-20 (Publication of Inaccurate or Inactive VOCC Tariffs), BOE activities 

included formal proceedings instituted against numerous VOCCs to show cause why 

their published tariffs should not be cancelled. In March 2012, the Commission issued 

an order to 41 defaulting respondents, directing them to cease and desist all carrier 

activities and cancelling their tariffs. An additional 5 carriers were dismissed from the 

proceeding. BOE also submitted briefs on remand in 3 additional unlicensed OTI cases, 

Docket Nos. 06-06, 06-09 and 07-02 respectively, addressing evidentiary and civil 

penalty issues raised in the Commission’s Orders in April 2012, vacating the initial 

decisions of the ALJ and remanding for further proceedings therein. 

In fiscal year 2012, the compliance audit program continued as a major focus. This 

program, conducted from headquarters primarily by mail, e-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, where there is no indication of 

actual vessel operations. At the beginning of fiscal year 2012, 8 audits were pending. 

During the fiscal year, 96 audits were commenced, 94 audits were completed (including 

audits carried over from fiscal year 2011), and 10 remained pending in the Bureau on 

September 30, 2012. During this same period, the Bureau’s compliance audit program 

was extensively reviewed by the agency’s IG (Report OR12-01, issued March 2012), 

which reported findings that BOE’s audit program works well, meets program objectives, 

and produces results towards ensuring compliance with the Commission’s OTI 

regulations. 

At the beginning of fiscal year 2012, 13 enforcement cases were pending final 

resolution by the Bureau, the Bureau was party to 8 formal proceedings, and there were 

12 matters pending which the Bureau was monitoring or providing legal advice. During 

the fiscal year, 8 new enforcement actions were referred for enforcement action or 

informal compromise; 12 were compromised and settled, administratively closed, or 

referred for formal proceedings; and 9 enforcement cases were pending resolution at 

fiscal year’s end. Also, 3 formal proceedings were initiated; 5 formal proceedings were 
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completed, and 6 were pending at the end of the fiscal year. Additionally, the Bureau 

opened 7 matters involving monitoring or legal advice during the fiscal year, completed 

or closed 6 such matters, and 13 remained pending on September 30, 2012. 

During fiscal year 2012, BOE successfully pursued a formal MOU with the Census 

Bureau, U.S. Department of Commerce, providing FMC for the first time with access to 

the Census’ Automated Export System (AES) database. The completed MOU 

accommodates and respects Census’ ongoing concerns for data security in any 

subsequent handling and use of otherwise confidential U.S. export shipment data. 

Such data may be used only for FMC law enforcement purposes. Interaction between 

the Bureau, the Commission’s ARs, and CBP with respect to the exchange of 

investigative information also continues on an ongoing basis; the FMC also continues its 

longstanding participation in CBP’s development of the new ACE/ITDS. 

In fiscal years 2013 and 2014, 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 continues to support and promote 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 compliance with the Commission’s 

reporting, licensing and bonding requirements conducts 100-120 OTI audits each year. 

Compliance audits thus account for less than 2.5 percent annually of the approximately 

5,400 licensed or bonded OTIs currently registered with the Commission. 

During fiscal years 2013 and 2014, the Bureau will continue to review the operations of 

ratemaking and rate discussion agreements, including MTOs and, together with other 

Commission Bureaus and Offices, will monitor FMC-filed agreements to ensure 

compliance with the Shipping Act and Commission regulations. The Bureau will also 

continue its ongoing monitoring of NVOCC activity involving NSAs and new authority 

granted to NVOCCs with respect to employing NRAs. Public outreach efforts will 

continue to educate maritime transportation users and providers with regard to FMC 

statutes and regulations, and the program will continue to improve participation in 

security issues as they relate to U.S. ocean commerce, specifically to include efforts to 

coordinate the use of available database systems with other agencies engaged in 

homeland security to improve identification of entities providing and utilizing maritime 

transportation services. 
Federal Maritime Commission

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Office of Information Technology (OIT)

OIT is dedicated to providing and supporting reliable information and information-based 

technology services in a timely and high-quality manner in support of the administrative 

operations of the Commission, and is responsible for ensuring that the Commission’s 

technology program is conducted in a manner consistent with applicable laws, 

regulations and guidelines and is aligned with the overall goals of the Commission. OIT 

receives program direction from the agency’s CIO. 

The 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 OIT also plans, 

coordinates, and facilitates the use of technology within the Commission. 

During fiscal year 2012, important OIT activities included the following: (1) continued 

ongoing FMC-18 Application System and SERVCON System enhancements; (2) 

managed FMC’s technical assistance and support contracts; (3) provided ongoing 

advice and coordination on electronic document and records management system 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of Information Technology 6.99 6.71 7.00

Cost: Salaries & Benefits $920,640.96 $920,896.49 $1,000,331.43

Non‐Personnel Expenses $1,460,449.84 $910,334.30 $1,278,884.75

Total Cost $2,381,090.80 $1,831,230.79 $2,279,216.18

Maintain an efficient and competitive international

ocean transportation system

1.40

Strategic Goal 1

$455,843.24

Strategic Goal 2

$1,823,372.94

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Operational and Administrative

Office of Information Technology

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

5.60

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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databases and applications; (4) provided security awareness training throughout the 

agency; (5) continued requirements review and planning to determine technology 

requirements for the adoption of new ECM technologies to consolidate FMC’s fractured 

information applications and technology systems; and (6) partnered with the 

Department of Health and Human Services to study the Agency’s disaster recovery 

capabilities. 

The Commission is also reviewing its compliance with governing IT statutes and 

regulations, as well as developing plans for improving its IT applications and systems to 

increase overall staff efficiency and productivity, particularly in the licensing process, as 

well as making the Commission’s processes more accessible to the public. 

Subject to adequate funding, the Commission plans to move forward with the following 

in fiscal years 2013 and 2014: 

 Migrating FMC data and applications to an Enterprise Platform Service, 

consolidated database and ECM architecture; 

 Developing and implementing a system for electronic filing of OTI license 

applications; 

 

 Automating the filing and processing of applications for certificates by PVOs; 

 Modernizing and expanding the RPI, a central Commission database that 

contains up-to-date records of licensed OTIs, ocean common carriers and other 

entities; 

 Developing a system with integrated search functionality to allow users to work in 

a web-based collaborative environment; 

 Continuing migration of FMC services into cloud architectures, taking advantage 

of managed services where applicable; 

 Continuing modernization of FMC IT infrastructure and applications; 

 Completing implementation of Pay.gov for accepting electronic payments from 

the public; and 

 Implementing of recommendations to fully comply with FISMA and NIST security 

standards for information technology systems. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Office of Human Resources (OHR)

OHR plans and administers a complete human resources management program 

including: recruitment and placement, position classification and pay administration, 

occupational safety and health, employee assistance, workforce discipline, performance 

management and incentive awards, employee benefits, retirement, employee 

development and training, and personnel and information security. 

Major accomplishments during fiscal year 2012 include the following: (1) monitored 

activities of the agency’s payroll/personnel service provider, the National Finance 

Center (NFC), and worked with administrative staff to ensure security, continuity and 

accuracy of payroll and personnel services; (2) continued to provide technical oversight 

of the Senior Executive Service (SES) Candidate Development Program and guidance 

to participants and mentors concerning developmental activities, special projects, and 

training, as well as monitor participants’ progress towards meeting program 

requirements and coordinate submission of requests to OPM for Qualifications Review 

Board (QRB) certification following program completion; (3) conducted a 

comprehensive training program in accordance with the agency’s strategic and 

performance plans, and, in spite of severe budget limitations, promoted e-learning and 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of Human Resources 5.00 3.85 4.00

Cost: Salaries & Benefits $610,024.95 $507,534.12 $514,603.10

Non‐Personnel Expenses $151,871.12 $123,526.47 $120,305.14

Total Cost $761,896.07 $631,060.59 $634,908.24

Maintain an efficient and competitive international

ocean transportation system

0.80

Strategic Goal 1

$126,981.65

Strategic Goal 2

$507,926.59

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Operational and Administrative

Office of Human Resources

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

3.20

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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on-line training opportunities, continued the college tuition reimbursement program, 

ensured training for new employees on the Notification and Federal Employee 

Antidiscrimination and Retaliation Act of 2002 (No Fear Act), participated in the Small 

Agency Council Training Program, introduced more agency mission-critical training 

(e.g., Conflict Resolution and COTR training), and conducted Hiring Reform training for 

managers; (4) issued newsletters highlighting appropriate information and activities 

related to Retirement-Readiness, Personal Financial Literacy Education, and 

Volunteer/Community Service Awareness; (5) conducted a comprehensive personnel 

and information security program, including initiating and adjudicating security 

investigations and incorporating new security regulations into agency policy; (6) 

coordinated with OPM in the administration of the Federal Employee Viewpoint Survey 

(FEVS), analyzed results, prepared interpretation and trend analysis, and worked with 

senior management to identify and reinforce successful activities and develop strategies 

to address areas of improvement; (7) worked with the Partnership for Public Service in 

connection with metrics and utilizing results of the Best Places to Work rankings; (8) 

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

human capital and related initiatives including Hiring Reform, Voluntary Early 

Retirement Authority, etc.; (9) conducted a comprehensive performance management 

and incentive awards program and ensured successful implementation of the revised 

performance appraisal system for non-SES employees through the agency 

Performance Appraisal System Taskforce (PAST); (10) maintained the partnership for 

acquisition of assistive devices through the Department of Defense’s 

Computer/Electronic Accommodations Program; (11) 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); (12) promoted the Preventive Health and Awareness 

Program and OPM’s Healthier Feds initiatives, and publicized and hosted wellness 

seminars sponsored by the Employee Assistance and Federal Occupational Health 

Programs; (13) in concert with the President’s hiring reform initiative, conducted a 

comprehensive recruitment program, including continuing activities through the agency 

SWAT team to simplify the Federal application process and reduce the time-to-hire, as 

well as establish an interagency agreement with OPM to provide staffing services in the 

new recruitment environment; (14) enhanced workplace flexibilities and provided 

recommendations to OPM regarding the agency’s work/life program and best practices; 

(15) 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; (16) conducted a proactive retirement program that included 

computing benefits, providing access to retirement seminars, related training and oneon-one counseling, and timely processing all retirements, as well as informing the 

workforce regarding the agency’s Voluntary Early Retirement Authority; (17) 

coordinated with other administrative units and the General Services Administration’s 

(GSA) Managed Service Office on matters pertaining to Homeland Security 

Presidential Directive 12 (HSPD-12) and the issuance of Federal employee credentials, 
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including activities to implement logical access provisions; (18) conducted a 

comprehensive classification and position management program, including coordinating 

assignments and evaluating contractor performance; (19) continued work with respect 

to closing competency gaps identified last fiscal year through the online Federal 

Competency Assessment Tool for managers and Human Resource (HR) staff to update 

FMC’s skill gap analysis, identify gaps in leadership competencies, support mission 

accomplishment, and guide planning for training and development; (20) revamped and 

updated the agency Human Capital Plan to ensure consistency with revisions to the 

agency Strategic Plan’s goals and objectives; and (21) continued to work with 

information technology staff to ensure timely transmittal of training data to OPM. 

In fiscal years 2013 and 2014, OHR plans to continue 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 fully automated 

training evaluation system and automated staffing system; (4) partner with agency 

officials in concert with the Administration’s goal to build a transparent, highperformance government specifically with respect to Federal hiring reform and 

improving employee satisfaction and wellness; (5) continue with eOPF implementation 

and conversion of performance, payroll, benefits and other HR records to electronic 

format, and execute action plan for full production and employee roll-out; (6) continue to 

monitor database modernization efforts of the NFC in conjunction with e-Governance 

and ensure timely and accurate payroll and personnel services; (7) continue to review 

and update various policy statements to implement Executive Orders and related 

regulatory requirements; (8) continue to administer and assess results from the FEVS to 

gauge employee satisfaction with work/life and benefits programs, agency leadership, 

developmental opportunities, etc., and use these metrics to strategically implement, 

monitor, measure, assess progress in achieving, ensure accountability, and report on 

human capital management goals pursuant to the agency’s Human Capital, Workforce, 

Succession and Accountability Plans; and (9) obtain approval and implement OPM’s 

basic performance appraisal system for senior executives; evaluate the revised 

performance appraisal system for non-SES employees against OPM’s Performance 

Appraisal Assessment Tool (PAAT); and monitor employee perceptions regarding 

performance management through continued analysis of the FEVS. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-98- 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-99- 

Office of Budget and Finance (OBF)

OBF administers the Commission's financial management program and is responsible 

for offering guidance on optimal use of the Commission's fiscal resources. OBF's main 

responsibilities are to: (1) produce, submit and support annual budget justifications and 

estimates to OMB and the Congress; (2) execute annual budgets to ensure that 

appropriated funds are properly expended; (3) review audited financial reports; (4) 

administer a control system over workyears of employment; (5) collect and deposit all 

fees and forfeitures due the Commission and pursue collections of debts; (6) process 

accounts payable documents; (7) verify financial, accounting and payroll reports 

generated by the agency’s fiscal services agents; (8) prepare and process travel orders 

and vouchers; and (9) manage the Commission’s Travel Charge Card and Cash 

Management Programs. 

The Commission has an interagency agreement (IAG) with the Bureau of Public Debt 

(BPD) to provide travel, procurement, and financial reporting. OBF serves as the 

Commission’s primary contact with BPD and verifies all accounting transactions, 

oversees the accurate and timely submission of quarterly financial statements to OMB, 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of Budget and Finance 4.73 4.42 5.00

Cost: Salaries & Benefits $595,875.50 $558,350.51 $623,637.48

Non‐Personnel Expenses $141,732.12 $134,846.18 $145,918.14

Total Cost $737,607.62 $693,196.69 $769,555.62

Maintain an efficient and competitive international

ocean transportation system

1.00

Strategic Goal 1

$153,911.12

Strategic Goal 2

$615,644.50

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Operational and Administrative

Office of Budget and Finance

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-100- 

annual and semi-annual report submissions to the U.S. Treasury and works to ensure 

that an unqualified opinion is received on the annual financial statement audit. The 

NFC provides the Commission with payroll services through an IAG. OBF serves as the 

primary contact with NFC regarding time card transmission and verifies all payroll 

disbursement costs. NFC transmits documentation of payroll costs directly to BPD for 

inclusion in the agency’s accounting records. 

During fiscal year 2012, OBF’s important accomplishments include the following: (1) 

collected and deposited $1,006,298 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 2013 Congressional budget and 

fiscal year 2014 OMB budget; (3) prepared required external reports; (4) prepared 

monthly internal status reports on workyears, funding, travel, receivables, and budget 

allocations to provide management with meaningful, timely expense data by program; 

(5) revised calculations used to estimate the cost of annual performance goals; (6) 

captured receivables by user fee type and pursued delinquent receivables; (7) worked 

with BPD staff and independent auditors regarding the audits of the fiscal years 2011 

and 2012 Financial Statements (an unqualified opinion was received for fiscal year 

2011 and fiscal year 2012); (8) worked with the OMD to finalize the FMC’s 2011 

Management’s Discussion and Analysis/Performance and Accountability Report 

(MD&A/PAR); (9) updated Commission Orders and procedural documents; (10) 

prepared and processed official travel documents in an E-travel system in accordance 

with applicable Federal Travel Regulations and agency policy; (11) processed the 

Commission’s accounts payable documents in accordance with the Prompt Payment 

Act and worked with BPD to implement Treasury’s Internet Payment Platform (IPP) to 

process the electronic payment of invoices received from commercial vendors; (12) 

completed migration from the current Paper Check Conversion (PCC) system of 

depositing remittances received from FMC customers to the new Over the Counter 

Channel Application (OTCnet) and Transaction Reporting System (TRS); (13) identified 

a new procedure for calculating user fees and recalculated the fees based upon fiscal 

year 2011 costs; and (14) assisted with the review and cost analysis of the draft 

occupancy agreement between the FMC and GSA for HQ office space. 

Goals for fiscal years 2013 and 2014 include: (1) improving the agency’s Cash 

Management Program, such as assisting with implementation of Pay.gov for 

acceptance of electronic payments from the public; (2) continuing to pursue initiatives 

leading to economy and efficiency in budget and financial operations; (3) updating 

relevant standard operating procedures, Commission Orders and procedural 

documents; and (5) recalculating biennial user fee costs based upon 2012 costs. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-101- 

Office of Management Services (OMS)

OMS procures and furnishes all services, office equipment and supplies necessary to 

support the day-to-day operations and performance goals of the Commission. To 

accomplish this, OMS administers a variety of management service functions, including: 

(1) administering Commission procurement and contracting; (2) controlling and 

administering the Commission's property utilization, maintenance, inventory and 

disposition programs; (3) planning and administering programs for improvement of the 

workplace environment and other space utilization operations for all Commission 

locations, including office space and provision of office furnishings; (4) managing the 

receipt, storage, distribution and inventory of all supplies, forms and accessories; (5) 

coordinating and fulfilling all printing, copying, and graphic service requirements; (6) 

coordinating the use of the building's physical facilities with respect to maintenance, 

security, and parking; (7) conducting safety inspections and coordinating the 

Commission's emergency planning and evacuation plan; and (8) directing the 

Commission's participation, development and goal-setting efforts under the Small 

Business Act. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Office of Management Services 5.00 4.80 5.00

Cost: Salaries & Benefits $594,432.27 $601,841.98 $646,999.62

Non‐Personnel Expenses $147,723.88 $145,233.81 $150,949.71

Total Cost $742,156.15 $747,075.79 $797,949.33

Maintain an efficient and competitive international

ocean transportation system

1.00

Strategic Goal 1

$159,589.87

Strategic Goal 2

$638,359.46

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Operational and Administrative

Office of Management Services

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

4.00

Strategic Goal 1
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-102- 

During fiscal year 2012, OMS: (1) coordinated with OMD and OBF to achieve 

substantial savings by reducing the fiscal year 2012 IAA with BPD by utilizing OMS 

staff; (2) worked with GSA and FMC management officials to identify the Commission’s 

Headquarter (HQ) space needs for a new ten year occupancy agreement to begin 

November 2012; (3) coordinated the re-arrangement of the Los Angeles Field Office to 

accommodate regular visits by the Chairman and other Commissioners; (4) in 

conjunction with the Chairman and OMD, provided physical security and logistical 

support for the Shanghai Shipping Exchange delegation during their visit to the FMC; (5) 

arranged for the design and printing of both a new “Household Goods” brochure and the 

Commission’s EU Study as well as the special printing of the Commission’s 50th Annual 

Report through the Government Printing Office (GPO); (6) facilitated the evaluations of 

solicitations, including developing source selection determinations based on best value 

for needed HR services; (7) developed the solicitation for the OIG’s Financial Audit 

Services and executed the award to a new contractor; (8) coordinated with the 

Chairman and MD to provide the logistics needed for miscellaneous staff relocations 

and/or reassignments; (9) prepared guidance and instructions for Technical Evaluation 

Panels for new solicitations for: Financial Audit Services, EEO Investigative and 

Counseling Services, Global Business Information Services, Court Reporting and 

Transcription Services, and GeoSearch IT Services; and (10) initiated dialog with GSA 

for the possible relocation of the Commission’s New York Field Office to northern New 

Jersey. 

In fiscal years 2013 and 2014, OMS’ objectives include: (1) continuing to work with 

GSA, Federal Protective Service (FPS), and other tenant agencies at our HQ facilities 

and field locations to upgrade and/or improve the buildings’ security measures and 

emergency preparedness; (2) in conjunction with the agency’s other administrative 

offices, continuing to research methods and practices for the enhancement and 

improvement in support services; and (3) continuing to provide advice and assistance 

regarding innovative support-service approaches to FMC activities. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Fiscal Year 2014 Strategic Goals 

Factors Affecting the Achievement of Goals 

The FMC is a small agency that has established considerable in-house expertise in the legal, 

economic and organizational aspects of international liner shipping and the intermodal 

movement of ocean cargo. That expertise allows the FMC to effectively pursue its goals of 

maintaining a competitive international ocean transportation system and protecting the public 

from unlawful, unfair and deceptive practices efficiently at a very modest cost to the taxpayer 

and with a minimum regulatory burden on stakeholder industries. 

To continue to accomplish its goals, the agency will need to maintain its relevant expertise 

through the recruitment, training and retention of highly qualified attorneys, economists, industry 

specialists, and information technology experts. The importance of the recruitment and retention 

issue is likely to increase as the agency’s experienced personnel reach retirement age, and in the 

face of competition from other Federal agencies seeking to replace their retiring personnel. 

FY 2012 FY 2013 FY 2014

Actual Estimate Request

FTE: Headquarters & Field 123.41 118.10 126.00

Cost: Salaries & Benefits $17,563,999.15 $17,164,000.00 $18,478,000.00

Non‐Personnel Expenses $6,449,348.43 $5,675,425.00 $6,522,000.00

Total Cost $24,013,347.58 $22,839,425.00 $25,000,000.00

$5,906,601.49

Federal Maritime Commission

Executive Summary

FY 2014 FTE by FMC Strategic Goal

Strategic Goal 2

$19,093,398.51

Strategic Goal 1

Federal Maritime Commission

FY 2014 Cost by FMC Strategic Goal

Strategic Goal 2

Protect the public from unlawful, unfair and

deceptive practices and resolve shipping disputes

97.03

Strategic Goal 1

Maintain an efficient and competitive international

ocean transportation system

28.97
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-104- 

Expanding and enhancing the use of information technologies is one way in which the FMC is 

able to do more with less. The increasing importance of information technologies results not 

only from its contribution to the agency’s ability to collect and process information more 

efficiently and accurately, but also because of the agency’s need to keep up with the electronic 

business practices of the industries it regulates. Greater use of information technology also helps 

make many of the aspects of licensing, certification and information filing simpler and easier to 

accomplish for the agency’s stakeholders. IT is critical to the maintenance and effective use of 

various key agency databases. 

The security of agency databases, confidential business reports, and associated documents filed 

with the FMC has received increasing attention in recent years. Enhanced and extended 

applications of information technologies helps to ensure that security. 

The FMC regulates international ocean liner transportation, and is also involved, through its 

regulation of marine terminal operators, with aspects of the intermodal movement of ocean cargo 

in the U.S. In addition, foreign-based ocean transportation intermediaries are subject to statutory 

bonding requirements under FMC jurisdiction. To the extent that there are changes in the 

regulatory treatment of international liner operations by foreign governments, the FMC will need 

to conduct research to determine the likely affect of such changes on U.S. trades. Over time, and 

depending on their actual impacts, regulatory changes in other regions could also provide a 

possible impetus for a review of U.S. statutes or regulations on liner shipping. Consequently, 

FMC analyses of possible future proposals for statutory revisions may be required. 

Finally, in recent years the FMC has witnessed the filing of new types of agreements -- 

especially marine terminal agreements -- that address nontraditional issues such as traffic 

congestion, environmental mitigation proposals, terminal operational efficiencies, and 

infrastructure funding. These nontraditional agreements tend to involve industries (drayage 

trucking and rail service), operations (pooling of chassis), and issues (air pollution, public health, 

infrastructure finance) that require the development by agency staff of additional information 

sources and areas of expertise. Not infrequently, these nontraditional agreements have 

potentially significant pricing and service consequences. To the extent that the filing of 

nontraditional agreements increases in coming years – which seems to be the likely trend – they 

will continue to weigh heavily on the agency’s limited resources. 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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STRATEGIC GOAL 1 

Maintain an efficient and competitive international ocean transportation system. 

$2,308,534.79

$39,358.21

$385,330.44

$3,173,869.66

Strategic Goal 1

Funding Requirements by Program

Formal Proceedings EEO IG Operational & Administrative

11.10

0.20

1.50

16.17

Strategic Goal 1

FTE Requirements by Program

Formal Proceedings EEO IG Operational & Administrative
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-106- 

The Commission is responsible for the regulation of oceanborne transportation in the foreign 

commerce of the U.S. pursuant to the provisions of the Shipping Act. A stated policy objective 

of the Shipping Act is “to promote the growth and development of U.S. exports through 

competitive and efficient ocean transportation and by placing a greater reliance on the 

marketplace.” The Commission’s oversight of carrier and terminal operator antitrust immunity 

as part of a non-discriminatory regulatory process works to provide an efficient and economic 

transportation system in the ocean commerce of the U.S. 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. 

OBJECTIVE 1: 

Identify and take action to address substantially anticompetitive conduct or unfavorable 

trade conditions in U.S. trades. 

The FMC is charged with protecting the shipping public, and ultimately American exporters and 

consumers, from possible abuse of the limited antitrust immunity granted by Congress to 

international liner carriers and domestic marine terminal operators under the Shipping Act. In 

addition, the FMC is responsible, under the FSPA, 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 VOCCs and MTOs that wish to establish agreements that would 

benefit from antitrust immunity file copies of their agreements with the FMC. FMC staff review 

these proposed agreements when they are initially filed, and before they take effect. The FMC 

allows agreements to proceed when they do not cause competitive harm. The FMC is authorized 

pursuant to section 6(g) of the Shipping Act to seek an appropriate injunction 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 

Target Achieved

18.00% 17.40%

FY 2010 FY 2011

Target                     Acheived      

FY 2012 FY 2013 FY 2014

Target

20.00%

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.

Target                    Acheived       Target

18.50%                                 17.90% 19.00%                                 18.70% 19.50%
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-107- 

requires them, once the agreement comes into effect. These reporting requirements, and the 

economic data and information about agreement activities they provide, allow the FMC to 

initially evaluate, and continue to monitor on an ongoing basis, the conduct of the parties to 

VOCC and MTO agreements with limited antitrust immunity. 

In recent years, the FMC has seen an increase in operational VOCC and MTO agreements, many 

of which allow cooperation to improve efficiency, allow sustainable growth, or respond to new 

or imminent environmental regulations. The FMC gives consideration to likely efficiency, 

sustainability, and environmental benefits when evaluating their net impact on competition, 

transportation cost, and transportation service. 

Under the FSPA, the Commission can address adverse conditions affecting U.S. carriers in the 

U.S. oceanborne trades when such conditions do not exist for foreign carriers or others providing 

maritime or maritime-related services in the U.S. Section 9 of the Shipping Act also charges the 

Commission with regulating the rates, charges, and rules of government-owned or -controlled 

carriers to ensure that they are just and reasonable. 

1. Strategies 

 Review initial agreements and amendments, including any additional information 

requested by the FMC, to determine the likelihood that the agreement parties could 

engage in substantially anticompetitive conduct with respect to transportation costs or 

services. 

 Review, on a regular, ongoing basis, the data and information provided in standard 

reports and special reporting measures to assess the existence or likelihood of 

substantially anticompetitive conduct or unfavorable trade conditions. 

 Initiate meetings with representatives of the FMC’s various stakeholder industries to help 

determine whether anticompetitive behavior or unfavorable trade conditions exist in U.S. 

trades. 

 Conduct research studies on current competition issues with respect to U.S. trades.

 Actively monitor for and record the presence of all foreign controlled carriers in U.S. 

trades, and regularly review their pricing practices. 

 Obtain information via inquiries and/or complaints about conduct or conditions that 

impede the efficient movement of cargo. 

 Assure competitive conditions in the U.S. foreign oceanborne trades by working with 

agreement parties on an informal basis to negotiate changes in agreements that raise 

competitive concerns. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 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 

MTO violations of the Shipping Act. 

 Take action under the FSPA to address adverse conditions affecting U.S. carriers in the 

U.S. oceanborne trades, when such conditions do not exist for foreign carriers or others 

providing maritime or maritime-related services in the U.S. 

 Make rules and regulations affecting shipping in the foreign trade not in conflict with law 

in order to adjust or meet general or special conditions unfavorable to shipping in the 

foreign trade. 

 Ensure timely action on formal proceedings undertaken to protect competition. 

 Maintain and keep up-to-date an electronic library, accessible from the FMC’s website, 

of agreement documents so as to allow interested parties to easily search for and 

download those documents. 

2. Six-Year Performance Measure 

 Percentage share of total U.S. international oceanborne trade moved by containership, as 

an indicator of liner shipping efficiency. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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STRATEGIC GOAL 2 

Protect the public from unlawful, unfair and deceptive ocean transportation 

practices and resolve shipping disputes. 

$5,814,381.55

$157,432.84

$385,330.44 $12,736,253.68

Strategic Goal 2

Funding Requirements by Program

Formal Proceedings EEO IG Operational & Administrative

28.90

0.80

1.50

65.83

Strategic Goal 2

FTE Requirements by Program

Formal Proceedings EEO IG Operational & Administrative
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-110- 

The FMC has jurisdiction over activities of ocean carriers and MTOs 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 OTIs that serve U.S. trades; assisting the public in 

the resolution of informal complaints related to the shipment of goods or to passenger vessel 

cruises; the identification and prosecution of unreasonable or unjust practices by carrier or 

marine terminals; and the investigation and satisfaction of formal complaints alleging violation 

of the Shipping Act. To carry out its broad mission, the FMC uses various means including 

monitoring, investigation, education, enforcement, and ombuds services. 

The Commission and its regional ARs also have a role in the education of the public and of 

industry groups involved in U.S. international trade with respect to their rights and/or 

responsibilities under the Shipping Act – including informing them of available Commission 

resources that might be of use to them. 

OBJECTIVE 1: 

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

The FMC is responsible for ensuring that individual carriers and MTOs, as well as those 

permitted by agreement to act in concert, treat shippers and other members of the shipping public 

fairly by not engaging in prohibited acts set out in the Shipping Act. In the effort to identify such 

practices, the FMC maintains a visible presence amongst regulated entities, collects intelligence 

in a variety of ways and exchanges intelligence with other regulatory and law enforcement 

agencies. 

In order to ensure compliance with laws and regulations under the jurisdiction of the FMC, 

various formal and informal actions may be taken by the Commission. Formal investigations are 

initiated when violations are discovered, though often the Commission enters into settlement 

agreements ending violative activities. 

Target Achieved

70.00% 72.90%

Target                          Acheived Target

72.00%                               82.00% 74.00%                         88.00% 76.00%

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 address substantially anticompetitive conduct or unfavorable trade conditions in U. S. trades

Performance Measure 1:                                                                                                                                                                                                                                                                       

Percentage of enforcement actions taken under the Shipping Act of 1984 successfully resolved through favorable judgment, settlement, issuance of

default judgment or compliance letter or notice.

FY 2012 FY 2013 FY 2014

Target

78.00%

FY 2010 FY 2011

Target                          Acheived
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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1. Strategies 

 Gather intelligence through visible and accessible presence in the regulated community in 

order to identify unlicensed OTIs and other violations. 

 Monitor advertising in print, television, radio and online to identify illegal practices. 

 Gather information related to potential unlicensed OTIs. 

 Receive and respond to complaints regarding egregious violations and practices. 

 Identify subjects who offer, advertise or provide passage on vessels having berths or 

staterooms to accommodate 50 or more passengers and have not met FMC financial 

requirements. 

 Audit ocean carriers and OTIs based upon information received and on a random basis. 

 Exchange information and liaise with other Federal, state and local investigative and 

regulatory agencies and bureaus. 

 Review tariffs for accessibility and accuracy. 

 Investigate allegations of unlawful, unfair and deceptive practices. 

 Efficiently prosecute alleged violations of the Shipping Act. 

 Reach voluntary agreement with alleged violators to cease unlawful, unfair and deceptive 

practices. 

 Respond to inquiries regarding complaint history of transportation providers and advise 

consumer of means to protect themselves. 

2. Six-Year Performance Measures 

 Percentage of enforcement actions taken under the Shipping Act successfully resolved 

through favorable judgment, settlement, issuance of default judgment, or compliance 

letter or notice. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Target Achieved

55.00% 65.00%

FY 2010 FY 2011

Target                          Achieved

FY 2012 FY 2013 FY 2014

Target

75.00%

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 1:                                                                                                                                                                                                                                                                     

Percentage of decisions completed OTI license applications rendered within 60 calendar days of receipt, facilitating lawful operation of OTIs with the

appropriate character and experience requirements.

Target                          Achieved Target

60.00%                                77.00% 70.00%                          90.20% 75.00%

Target Achieved

90.00% 90.00%

FY 2010 FY 2011

Target                          Achieved

FY 2012 FY 2013 FY 2014

Target

94.00%

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 the full financial coverage required by regulation to protect against loss from non‐

performance or casualty.

Target                          Achieved Target

91.00%                                 91.00% 92.00%                              100.00% 93.00%

OBJECTIVE 2: 

Prevent public harm through licensing and financial responsibility requirements. 

The FMC licenses and regulates OTIs, including ocean freight forwarders and NVOCCs, and 

ensures that OTIs have sufficient financial responsibility. As well, the FMC issues certificates to 

PVOs that have evidenced financial responsibility to satisfy liability incurred for 

nonperformance of voyages and for death or injury to passengers and other persons. 

1. Strategies 

 License OTIs with the requisite character, experience and financial responsibility. 

 Issue PVO certificates to cruise line operators that have met regulatory requirements for 

proof of financial responsibility. 

 Monitor PVO UPR reports and conduct on-site review of PVOs’ UPR receipts. 

 Review and update OTI bonds and coverage amount. 

2. Six-Year Performance Measures 

 Percentage of decisions on completed OTI license applications rendered within 60 

business days, facilitating lawful operation of OTIs with the appropriate character 

requirements. 

 Percentage of cruise line operators examined during the year that have the full financial 

coverage required by regulation to protect against loss from nonperformance or casualty. 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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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. 

1. Strategies 

 Maintain an accessible presence in local regulated communities. 

 Proactively educate regulated parties of regulatory requirements through educational 

presentations. 

 Maintain VOCC and NVOCC tariff location information on the agency website. 

 Emphasize OTI requirements to new licensees by letter. 

 Promote awareness of FMC licensing and financial requirements by conference 

participation and seminars. 

 Make available to the public key documents in all Commission formal proceedings 

through the Commission’s website. 

 Create and produce brochures to educate industry and public about FMC requirements 

and services. 

. 

 Promote general awareness of resources available through Commission’s website. 

 Continuously expand and update information available to the public through the website, 

including list of licensed OTIs. 

Target Achieved

70.00% 0.00% 72.00%                              72.00% 74.00%                              79.00% 76.00%

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 1:                                                                                                                                                                                                                                                                             

Percentage of key Commission isusnacwes, orders and reports are available through the Commission's website within 5 working days of receipt.

FY 2012 FY 2013 FY 2014

Target

80.00%

FY 2010 FY 2011

Target                          Achieved Target                          Achieved Target
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-114- 

Target Achieved

50.00% 56.00%

FY 2010 FY 2011

Target                          Achieved

FY 2012 FY 2013 FY 2014

Target

58.00%

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 will be completed within 2 years of filing or Commission initiation.

Target                          Achieved Target

52.00%                                60.00% 54.00%                               73.00% 56.00%

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.

OBJECTIVE 4: 

Impartially resolve international shipping disputes through alternative dispute resolution 

and adjudication. 

The Commission has several means by which the public or entities in the shipping industry may 

seek resolution of disputes or complaints. The Commission provides ombuds services to assist 

parties in resolving complaints informally through its CADRS and its ARs. Formal complaints of 

alleged Shipping Act violations may be filed for adjudication by an ALJ. 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. 

Target Achieved

550 556 625                                  631 700                                  893 800

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 ombudsman ADR services assisting consumers to recover goods or funds.

FY 2012 FY 2013 FY 2014

Target

900

FY 2010 FY 2011

Target                        Achieved Target                        Achieved Target
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 Encourage the use of and provide facilitative ADR services to parties who request 

services of a trained neutral in resolving disputes and shipping problems that affect 

international ocean shipping. 

 Adjudicate disputes under the jurisdiction of the agency through the ALJ, with the 

possibility of appeal to the Commission, use of settlement officers and through 

arbitration. 

 Timely conduct Commission proceedings so that litigants and industry can adjust 

behavior accordingly. 

2. Six-Year Performance Measures 

 Number of cases opened and closed each fiscal year using ombuds and ADR services 

assisting consumers to recover goods or funds. 

 Percentage of formal complaints or Commission initiated orders of investigation will be 

completed within two years of filing or Commission initiation. 

 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-117- 

Appendix A 

Workload Statistics 

Office of the Secretary

Office of the Secretary

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Outputs

On Hand 

09/30/13 Receipts Outputs

On Hand 

09/30/14

Decisions, Reports, in 

Docketed Proceedings 

Before the Commission* 20 35 37 18 40 36 22 40 40 22

Commission Inquiries, 

Information Requests, or 

Demand Orders* 0 11 0 1 1 0 1 1 0

Adminstrative Notices Issued 

in Proceedings* 0 32 32 0 35 35 0 35 35 0

Docketed Informal 

Complaints 12 7 12 7 14 12 9 14 14 9

Agenda Items 0 100 100 0 100 100 0 110 110 0

Pages of Minutes 0 140 140 0 130 130 0 140 140 0

Federal Register Notices 0 158 158 0 155 155 0 160 160 0

FOIA Requests 36 30 50 16 25 27 14 25 27 12

Certifications 0 55 0 3 3 0 3 3 0

* Previously, Commission workload statistics for these 3 categories were reported under "Commission Docketed Proceedings (Formal, 

Special & Informal)", and "Commission Non-Docketed Proceedings". Workload statistics for this area of the Commission's Formal 

Proceeding Program have been separated into 3 categories to more efficiently track and report these Commission statistics.

Formal Proceedings Program

Statistical Workload Summary *

Workload Units Fiscal 2012 Actual Fiscal 2013 Estimate Fiscal 2014 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Office of Consumer Affairs and Dispute Resolution Services

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

OMBUDS 24 670 649 45 700 700 45 730 730 45

ADR 

Matters 4 18 15 7 30 30 7 40 40 7

Informal 

Docket 

Decisions

16 8 5 19 10 25 4 10 10 4

Formal Proceedings Program

Office of Consumer Affiars and Dispute resolutions

Statistical Workload Summary

Workload 

Units FY 2012 Actual FY 2013 Estimate FY 2014 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Office of the General Counsel

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

Litigation 5537667667

Legislation 0 105 105 0 115 115 0 125 125 0

Legal Opinions, 

Recommendations, Case 

Summaries, Decisions and 

Final Orders 5 201 201 5 160 160 5 165 165 5

Sec. 19/sec. 13 (b)(5) FSPA 

Proceedings 1010211111

International Affairs Reports, 

Policy Papers, Briefings, 

Controlled Carrier 

Recommendations 0 30 30 0 35 35 0 40 0 40

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

Workload Units

Statistical Workload Summary

Formal Proceedings Program

Office of the General Counsel

FY 2012 Actual FY 2013 Estimate FY 2014 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-120- 

Office of the Administrative Law Judges

Workload 

Units

On Hand 

09/30/11 Receipts Output

On Hand 

9/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

Formal 

Proceedings 16 10* 14** 14 10 13 11 10 11 10

Special 

Proceedings 0 00 0 0 0 0 0 0 0

Informal 

Proceedings 0 00 0 0 0 0 0 0 0

A decision counted as "Output" may or may not completely resolve a proceeding.

* Includes four proceedings (06-06, 06-09, 07-02, and 09-08) remanded by the Commission for further proceedings.

** Includes tw o proceedings w ith tw o decisions: 11-08 (one dismissing a respondent, one on the merits) and 11-14 

(one entering decision on default against one party and one granting the claim and assessing damages against 

tw o parties)

Formal Proceedings Program

Office of Administrative Law Judges

Statistical Workload Summary

FY 2012 Actual FY 2013 Estimate FY 2014 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-121- 

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

Agreements Filed 5 153 143 15 170 175 10 170 170 10

Rulemakings, 

Proceedings, 

Petitions,Demand 

Orders*

0 00 0 11 0 00 0

Waiver Requests 0 33 0 55 0 55 0

Bureau Reports ** 0 104 104 0 104 104 0 104 104 0

Agreement Reports

 Minutes 179 921 1,002 98 921 920 99 948 948 99

 Monitoring 66 452 468 50 492 492 50 507 506 51

 VSCG 28 115 124 19 128 128 19 132 132 19

Service Contracts 0 47,664 47,664 0 50,000 50,000 0 52,500 52,500 0

Service Contract 

Amendments 0 498,727 498,727 0 475,000 475,000 0 490,000 490,000 0

Special Permissions 0 14 14 0 7 7 0 7 7 0

NVOCC Service 

Arangements 0 1,435 1,435 0 1,125 1,125 0 1,100 1,100 0

Arrangement 

Amendments 0 2,114 2,114 0 2,500 2,500 0 2,425 2,425 0

FMC-1 Form 0 1,395 1,395 0 1,494 1,494 0 1,510 1,510 0

Informal Inquires 0 2,103 2,103 0 3,300 3,300 0 3,450 3,450 0

*

** Bureau Reports - include w eekly reports to Commissioners on agreements filed and w eekly

Federal Register Notice reports.

Rulemaking: FY 2013 Update of Agreement Rules.

Operational and Administrative Program

Bureau of Trade Analysis

Statistical Workload Summary

Workload Units FY 2012 Actual FY 2013 Estimate FY 2014 Estimate

Bureau of Trade Analysis
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Bureau of Certification and Licensing

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

OTI Applications 

New *

62 441 429 74 455 450 79 465 460 84

OTI Business 

Change 

Applications * 27 278 284 21 280 285 16 285 285 16

OTI License 

Terminations ** 0 261 261 0 275 275 0 300 300 0

Passenger 

Vessel 

Applications 

(Performance) 4 11 15 0 12 12 0 13 13 0

Passenger 

Vessel 

Applications 

(Casualty)*** 12 11 13 10 15 16 9 17 16 10

*

** Revoked or surrendered licenses not subsequently re-issued.

requiring the issuance of a license. 

OTI application output figures include the number of: (1) approvals for license; 

(2) voluntary w ithdraw als; (3) closing of applications; and (4) other changes not 

Operational and Administrative Program

Bureau of Certification and Licensing 

Statistical Workload Summary

Workload Units FY 2012 Actual FY 2013 Estimate FY 2014 Estimate
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-123- 

On Hand 

09/30/11 Receipts Output

On Hand 

09/30/12 Receipts Output

On Hand 

09/30/13 Receipts Output

On Hand 

09/30/14

Audits and 

Monitoring 

Activities 8 96 94 10 120 120 10 120 120 10

OTI Applicant and 

License Checks 0 574 574 0 625 625 0 650 650 0

Formal 

Proceedings 8 35 6 6 8 4 7 7 4

Civil Penalty Cases 13 8 12 9 23 20 12 22 22 12

Staff Legal Advice 12 7 6 13 11 10 14 12 12 14

Operational and Administrative Program

Bureau of Enforcement

Statistical Workload Summary

Workload Units FY 2012 Actual FY 2013 Estimate FY 2014 Estimate

Bureau of Enforcement
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

-125- 

Appendix B 

Certification of the Office of Inspector General’s Fiscal Year 2014 Budget Request 

FEDERAL MARITIME COMMISSION

Office of Inspector General 

Washington, DC 20573-0001 

 

Office of Inspector General 

 

The Inspector General Reform Act (P. L. 110-149) was signed by the President on October 14, 

2008. Section 6(f) (1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was amended to 

require certain specifications concerning Office of Inspector General (OIG) budget submissions 

each fiscal year. 

Each inspector general (IG) is required to transmit a budget request to the head of the 

establishment or designated Federal entity to which the IG reports specifying: 

 The aggregate amount of funds requested for the operations of the OIG, 

 The portion of this amount requested for OIG training, including a certification from the 

IG that the amount requested satisfies all OIG training requirements for the fiscal year, 

and 

 The portion of this amount necessary to support the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE). 

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include: 

 An aggregate request for the OIG, 

 The portion of this aggregate request for OIG training, 

 The portion of this aggregate request for support of the CIGIE, and 

 Any comments of the affected IG with respect to the proposal. 

The President shall include in each budget of the U.S. Government submitted to Congress: 

 A separate statement of the budget estimate submitted by each IG, 

 The amount requested by the President for each OIG, 

 The amount requested by the President for training of OIGs , 

 The amount requested by the President for support of the CIGIE, and 
Federal Maritime Commission

FY 2014 Budget Estimates Submitted to the Appropriations Subcommittees

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 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 

2014: 

 The aggregate budget request for the operations of the OIG is $770,661 

 The portion of this amount needed for OIG training is $2,554, and 

 The portion of this amount needed to support the CIGIE is $2,121. 

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 2014. 

Inspector General 

Federal Maritime Commission