FE

ANN

TABLE 

LETTER OF TRANSMITTAL 

MEMBERS OF COMMISSION 

SENIOR COMMISSION OFFICI

1 THE COMMISSION

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW 

A Ocean Shipping Ref

B Trade Developmen

C Restrictive Trade Pr

D Monitoring 

E Enforcement 

F Tariff Automation 

III MONITORING AND EN

A Monitoring 

B Enforcement 

IV DEVELOPMENTS IN M

A Transatlantic 

B Mediterranean 

C Middle East 

D Africa 

E Latin America and 

F Transpacific 

G Worldwide 

V AUTOMATED TARIFF 

A Introduction and Ba

B Early Studies on T

C First Step in Tariff 

D The Shipping Act 

E The Tariff Automat

F ATF1 Feasibility 

The ATFI Advis

G Benefit Cost Analys

Procurement Aut

H Inquiry on the Fu

Presolicitation C
1 Remote Retrieval 

J Contract Award 

K Docket No 90 23 

L Batch Filing Guid

M Miscellaneous Mile

N Update on Remot

VI THE FOREIGN SHIPP

A General 

B

Top Twenty US

Trading Partner

VII SIGNIFICANT OPERA

ORGANIZATIONAL U

A Office of the Secre

B Office of Adminis

C Office ofthe Gener

D Office of Equal Em

E Office of Inspector 

F Office of the Mana

G Bureau of Economi

H

Bureau of Tariffs 

I Bureau of Enforcem

J Bureau of Adminis

APPENDIXES

A Organization Chart 

B Commission Proce

C Agreement Filings 

D

Tariff and Service 

Special Permissio

E Civil Penalties Colle

F Investigations 

G Statement of Appro

and Receipts 


FEDERAL MA

WASHING

To the United States Senat

Pursuant to section 10e

7 of 1961 and section 20

1936 as amended I am 

seventh annual report o

Maritime Commission for 

Additionally section 

Update on Remote Access 

with the request of Cong

developments ofreasonab

to the Commission sA

Information System AT

MEMBERS O

Ming C Hsu

Commissioner

Appointed 1990

Term Expired 1996

Harol

C

App

Term 

Delmo

Com

Appo

Term E

One vacancy as of Februa

SENIOR COMM

Counsel to the Chairman 

Secretary 

Chief Administrative Law 

General Counsel 

Director Office of

Equal Employment Opp

Inspector General 

Managing Director 

Director Bureau of

Economics and

Agreement Analysis 

Director Bureau of

Tariffs Certification

and Licensing 

Director Bureau of

Enforcement 

Director Bureau of

Administration 

THE CO

A H

The Federal Maritim

FMC was established as a

Reorganization Plan No 7 eff

time the Federal Maritime B

regulation ofocean commerce a

US

Merchant Marine 

shipping laws of the US 

categories regulatory and 

associated with promotion ofan 

Marine were assigned to the M

within the Department of Tra

created FMC was charged with 

provisions of the shipping law

The Commission is no

oceanborne transportation in th

passage of the Shipping Act o

major change in the regulatory 

operating in the USforeign co

B FU

The principal statutes or 

the Commission are the 1984 A

of 1988 FSPA section 19 

1920 Act and Pub L No 8
The Commission s

Protecting 

foreign com

non marke

foreign go

foreignflag 

the comme

Protecting 

companies 

oceanborn

Reviewing 

carriers a

foreign co

conference 

agreement

Receiving 

regulation 

engaged in 

Regulating 

regulation

owned or 

are just an

Issuing p

financial 

charterers 

death or t

a voyage o

Licensing 
Bonding non 

NVOCCs

Investigating 

classifications 

carriers ter

forwarders op

the US

The Commission is aut

1920 Act and section 13b5

ensure that the foreign commer

market barriers to ocean sh

countervailing action to corre

USforeign commerce and m

by carriers or foreign governme

ofUScarriers in the USfore

access ofUSflag vessels to 

The 1984 Act is appl

carriers and other persons en

exempts agreements that have 

theUSantitrust laws as conta

The Commission reviews and 

they do not exploit the grant of 

agreements do not otherwise 

unreasonable increase in tr

reduction in service

In addition to monitor

Commission is also responsibl

as well as those permitted by a

shippers and other members o

prohibits carriers from unduly 

other members of the shipping 

carriers to make their rates ch
in tariffs that must be on f

only assess the rates and c

Commission The Commis

to approve or disapprove 

commodity rate levels in t

regard to certain foreign go

Pub LNo 89777 r

with 50 or more berths w

establish financial coverag

death injury or nonperform

certifies such operators upo

of financial responsibility

The Commission ca

conducting informal and for

considers evidence and re

orders and implementing 

adjudicates disputes involvi

shipping public and other a

C OR

The Commission 

appointed for fiveyear term

consent of the Senate 

Commission may belong to 

designates one of the Com

Chairman is the chief exe

agency

The Commission so

the Managing Director Offi

Counsel Office of Admin

Employment Opportunity O

Economics and Agreement 
and Licensing Bureau o

Administration The Managin

providing

bureaus

executive

These offices

and admini

and 

Commission sregulatory progra

In fiscal year 1998 the C

180 fulltime equivalent positio

14000 The majority o

located in Washington DCw

New Orleans Los Angeles Mi

THE YEA

The Commission again 

of its international trade and t

year 1998 A major focus co

trades from unfair foreign shipp

U S importers and exporters 

treatment in USoceanbome 

The Commission rema

so as to identify relevant trends 

commerce Particular attention 

in the transpacific and the ope

North Atlantic Other trades w

was in a position to ensure 

appropriately complied w

Additionally major emphasis c

practices offoreign governme

the People sRepublic ofChina 

adverse consequences as a res

And the Commission offe

throughout the year on regulat

for enactment at fiscal year en

This Annual Report es

office basis and contains a s

accomplishments Special sec

interest This section of th

Commission smajor activities 
A OCE

REFORM 

Legislation to dram

approach to USocean shipp

end The legislative reform 

culminated in a compromise 

House and was expected to r

fiscal year 1999 The Comm

this process testifying befo

technical advice to Congres

continually with all sectors o

The Ocean Shipping 

response to those in the indu

freedom for operations in US 

regulatory restrictions and s

by placing a greater reliance 

Generally speaking 

USocean trade It will end 

instead requiring carriers to 

systems The Commissio

regulations for the access

Service contracts will be file

and carriers are required to m

on each contract publicly av

negotiate contracts with m

minimal control over th

proscriptions against discrim

longer will be required to of

situated shippers The list 

service contracts requiremen

present criteria for obtainin

provision are to be removed 
negotiate rates and service req

notice period for independent 

OSRA has other less 

the foregoing all will becom

President signs the bill OSR

final rules implementing its s

B TRADE 

USoceanborne shipp

Nation soverall commerce T

effort to discern relevant comm

its important oversight role

From a general perspe

the recent trend toward conso

alliances in an effort to 

opportunities This trend like

industry progresses forward u

In the transatlantic line

16 percent and exceeded liner 

in US liner exports to Nort

imbalance was largely symp

brought on by the Asian econo

US dollar to soar against fore

instability increased competi

their toll on carrier unity in the 

TACA Once the dominan

lost six carrier members by ye

in the trade in some form to 

Additional carriers including 

entered the trade as non confe
On regulatory matte

regarding the space charter 

remained pending at the c

Commission EC impose

carriers for abuse oftheir do

appealed the ECsruling a

Courts Meanwhile measu

the issues involved in the Es

In the Mediterranea

Italy and Spain were in high 

In the US the demand 

furnishings was spurred 

Competition among carrier

South Europe Conference 

membership in the fiscal ye

US liner exports 

economic problems in the r

USperformed well Econ

suffered from the drop in oi

continued outbreaks of viol

Economic growth f

fiscal year due largely to 

destructive weather condit

moderately for both USim

Africa Freight Conference t

year in the face ofdrastically 

in the trade did expand the

African port facilities to alle

progress

Latin America rema

were realized in the USb

the region stop UStradin
the USand Caribbean nations 

and falling rate levels did not 

America trades The Inland Sh

became effective during this f

conference that covers ratema

portion ofthrough movements 

an inland tariff with the Comm

The transpacific was m

favor ofUSimports as well a

of strong eastbound demand 

Agreement TSA a voluntary 

trade effectuated an across the

plus additional peak season cha

agreed on an increase in peak s

FEU Members of the We

Agreement faced capacity utiliz

of Asia cut back on its purchas

levels of demand are reported 

general rate increase that TSA 

year the Commission receive

alleging that TSA carriers we

vessel space on a priority basis 

revenue accounts and forcing s

rate increases for peak season ca

Finding Investigation No 23 to 

practices

C RESTRICTIVE 

The Commission is spe

or unfair trade practices that hav

or US interests Specifically 

Act 1920 1920 Act autho

rules and regulations applicab

adjust or meet conditions unfa
Shipping Practices Act of 

address adverse conditions 

trade with countervailing 

conditions And section 1b5

Act permits the Comm

appropriate action if a fore

a USflag vessel from ac

The Commission 

authority in the area of re

ongoing monitoring effo

maritime interests and 

agencies possible harmful 

addressed The Commiss

may warrant formal proce

most prominent of which 

With regard to Br

information collected from 

Brazilian authorities to pe

warehouse in Brazil cre

adversely affects UScarr

to whether restrictions on

crosstrades between Bra

impair access of USflag 

ports in violation ofsectio

the Commission collecte

preference legislation in 

severe competitive disadva

situation was under review 

of formal adjudicatory or 

unresolved

The Commission a

in the PRC including imp

allow UScarriers to offer 
PRC through whollyowned 

reviewing the establishment 

combination freight excha

established by PRC authoriti

impede or disadvantage US

And the Commission 

progress made in removing re

The Commission previously 

created conditions unfavorabl

contentious rulemaking whic

Japanese carriers in light ofthe 

bilateral negotiations resulte

Government to reform the prob

and open trade The Commis

fees against the Japanese ca

suspended state pending co

remove the adverse conditions 

this situation and while some 

resolution ofthe matter Abse

the Commission stands ready 

to achieve full compliance with 

the Japanese

D MO

The Commission act

oceanborne trade to identify p

negative effect on US comm

Our efforts are aimed at ens

regulatory requirements and 

troublesome trade activities

During the fiscal year 

section 15 of the 1984 Act for 

meetings among carriers un
ASF The orders seek t

and whether the ASF would 

subject to the Commission s

an informal complaint a

conducted of USflag ca

military household goods a

trades

Other specific monit

fiscal year 1998 included 

proceedings concerning th

carriers operating in the tra

study and report on control

analyzing the quarterly mon

of major agreements the re

in certain trades concernin

statutes and a report exami

relationship to mergers and 

E EN

The Commission is 

shipping to deter malpractic

that adversely affect fair an

effort by the dual objectives 

statutes and ensuring that eq

ocean trades

In fiscal year 1998 

in the port ofNew York New

district offices in fiscal y

employed in that location 

headquarters We also ma

New Orleans and Seattle 

representatives serve the o

centers within their respec
Commission and the maritim

intelligence and assessing ind

The Commission purs

fiscal year which centered on 

malpractices by ocean carriers 

South American trades 

investigations in the transpacif

to monitor the impact of settle

in the North Atlantic throu

meetings with the conference

in US trades appeared to b

continually changing versions 

uncertainty regarding applica

As previously mention

fact finding investigation to 

eastbound Pacific trade Sh

difficulties in obtaining space 

rate increases during the p

investigation was scheduled 

1999

The Commission colle

penalties this past fiscal year 

ofmalpractices in several ofo

segments ofthe industry Con

surveillance are essential to d

compliance with applicable st

will reassess its enforcement 

OSRA to ensure that its goa

policy direction of this statut
F TARI

Carriers and confer

Commission detailing the r

service they offer in th

Commission sautomated t

be created on the filer s 

Commission sAutomated 

ATFI This system wh

permits ready access of the 

party

The Commission rec

year 1998 and closed the ye

This is an increase of40 tar

the end of fiscal year 1998 

filing Additionally the Co

contracts in fiscal year 199

year and 33812 amendmen

a 17 percent increase Those 

contracts are available on a 

ATFI access capability

Enactment of the a

legislation will eliminate t

system OSRA ends the requ

replacing it with the stipula

their tariffs publicly availab

Commission will be respons

to the accessibility and accu

Commission this fiscal year 

the contract under which A

contractor will ensure that th

retrieval through April 30 

dedicated to archiving fil

operations All activity purs
May 31 1999 The Commissio

cost effective and efficient me

available to interested parties

MONITO

ENFO

A MO

The systematic mo

commercial conditions in the 

the Commission sresponsi

monitoring helps ensure that 

comply with the statutory 

requirements ofrelevant Com

Commission administers a va

research activities designed 

conditions emerging comme

service activities

The importance the 

monitoring activities is a dire

the 1984 Act of the Comms

disapprove agreements The 

under relevant statutory a

Commission shall become eff

30th day after notice in the 

Agreements can be rejected 

include statutory provisions 

Commission may extend the 

information from filing partie

Finally ifthe Commission de

a reduction in competition 

transportation costs or decre
injunctive relief in the US 

Columbia

As a consequence o

block agreements from takin

evaluation of post impleme

considerably The Commiss

an evaluation through its 

including market share con

and service conditions as w

service contracting activity 

In fiscal year 1998 t

Analysis prepared a variety 

activities and practices of ca

trade Projects included 1 

transpacific trades in order 

problems exist 2 working 

evaluate and incorporate into 

obtained from the Bureau s

order of various carriers 3 

activities of a major contro

entitled Trade Profiles Re

major agreements submitting 

report examining the use o

relationship to mergers and t

report examining similarities 

examining current industry t

regulatory concerns 8 an 

freight rate levels in the Nort

of agreement minutes servic

agreement members in maj

monitoring report of controll
B ENF

The 1984 Act estab

regulation ofthe shipping and 

statutory declaration of po

efficient and economic ocean 

international trade of the US 

a major area ofCommission a

is to achieve compliance w

Compliance in turn provides 

of the 1984 Act Enforcem

compliance through deterren

The Commission m

Miami New Orleans New 

representative based in each 

also serve the other major por

their respective areas Unt

Atlantic region was the re

Washington DC However 

in the port of New YorNew 

presence

ability to perform

in major

its

port

various

area

f

with the regulated industry a

Cooperation between 

and the US Customs Serv

exchange of investigative inf

area representatives are no

respective port districts and 

relationships which contribu

both agencies

During 1998 the 

extensive malpractices part

American trades Other trad
investigations including the 

investigations included im

forms of secret discounts a

substitution as well as car

unbonded NVOCCs

In August and Sep

numerous complaints from 

transpacific trades concern

demands for abrupt and sig

during the peak holiday s

complaints the Commissio

No 23 Ocean Common 

Trades Commissioner 

Investigative Officer and 

investigation to the Commis

3

During fiscal yea

869 005 96in civil penalt

different segments ofthe ind

and NVOCCs operating in 
DEVELOPM

USFOR

A TRA

After achieving solid 

and exports moving between 

previous 18 months liner trad

of fiscal year 1998 During th

Europe expanded 16 percen

growth Vigorous US co

housing market as well as a 

European currencies allowed 

rates through the first half of

grew by a record 21 percent 

largest quarterly increase in 

imports consisted primarily o

notable was a large 25 percen

percent increase in beer and a

the Netherlands Belgium and 

Scandinavian paper products 

to expand at record double di

1998 with imports of ven

furniture from Poland supp

housing and home furnishing

While imports from 

sharply since the second q

consumer spending largely 

economies overseas began to 

Even though import growth s
a 15 percent improvement i

Europe over 1997 trade vo

North European imports is e

through the end of 1998 and 

expansion is forecasted to f

in 2000

After last fiscal yes 

liner exports briefly maint

through the fiscal year quic

of 1998 and finally plunged 

quarter USexports to No

6 percent growth

The fiscal year starte

North European countries ex

and improved consumer co

Euro in 1999 Belgium mov

one European destination fo

chemicals were the major US

led shipments to the UK 

included construction relate

and lunch meats to Norway a

china clay automobiles a

Scandinavia By the secon

Europe began to show sign

Germany and France rema

consumer spending while 

dampened the demand for 

exports were affected by a 

limiting its export earnings a

unfavorable economic cond

the end of 1998 and on int

exports to this region to sl

moderate 5 percent increase 

Europe and growth should r
Usually the inbound ro

stronger ofthe two trade legs w

the 1998 fiscal year USliner 

the dominant position exceedi

Not only were cargo volume

directions but this significant 

carrier operations causing car

Previously characterize

slow capacity growth limite

conditions in theUSNorth E

fiscal year The capacity ut

Conference Agreement TAC

in the 60 to 65 percent range 

levels which had been rising 

cargo volume reversed dire

Overall excess capacity in the 

15 percent The increased com

apparent in TACA sthird qua

percent for both imports and 

percent from the same period 

Competition from new 

membership are the main fa

TACA scapacity utilization 

Shipping Co COSCO 

Yangming Marine Transport e

together offering a weekly no

of space chartering and coope

011560 232 011561 and 2

doubled its capacity in the fall 

in the trade APL Ltd and 

entered the trade during sprin

space charter and sailing ag

011611 in cooperation with lo

Lines To accommodate the 
Lines nearly doubled its ves

vessel space to the trade

By January I 1999 T

just 9 members down from 

January 1998 with Hanjin 

followed by the withdrawa

Shipping Hyundai Mercha

Transportation Maritima Mex

merged company These fo

operating in the trade providi

US shipping reform EC 

conditions and increased com

these TACA resignations

During 1992 when T

only four significantly larg

conference carriers serving 

Corporation Ltd Lykes L

Independent Container Line 

have 11 additional non confe

trade entrants and 6 former T

TACA members starte

implementing a 6 to 7 percen

levels soon eroded due to 

conditions and heightened rate 

the USdollar against Europe

favor of US imports while 

1998 TACA reported that im

while export rates were below 

year as shippers met their 

commitments and new indepe

reported that rates had fallen 

months and expected the tren
year This decline was due pr

1998 Business Plan and the re

Enhanced rate compe

increase of non conference ca

take substantial rate cuts on str

the US import market TAC

contract rates by 400 per FEU 

after top commodity from Nort

dropped their service contract 

in the USexport market No

market share by cutting rates I

at levels up to 15 percent bel

contract rates

TACA carriers propose

1999 TACA splan would raise 

and 50 per FEU and westboun

However most industry observ

given the impending regulatory 

in the trade

During 1997 the C

connection with its proceeding

concerning spaceslot charteri

transatlantic trades These mat

year 1998

In addition to the FMs

members activities TACA co

EC On September 16 1998 

original May 1996 case agains

abused its dominant position a

for operating outside the Europ

between 1994 and 1996 Add

TACA forjoint inland price fix
it may impose fines on such 

possible further fines TACA 

collective ratemaking autho

matter had been pending befo

allowed TACA to continue se

its decision

The EC has drafted a 

for TACA members to cons

settle remaining legal issues 

ECsdecision to lift TACA s

Apparently TACA carriers 

principle and have begun to i

Ifthe EC is sufficiently satis

settlement proposals then 

dismissed However TACA 

that imposed 318 million 

dominant position The app

on legal procedure the basis 

on abuse of dominant posi

fines A decision in this cas

Concerns over upco

regulatory actions and inc

collective effort among TA

restructuring the trade ega

favor ofa more flexible agree

from nearly all non confer

scheduled to meet late in 19

cooperation in the trade

B MED

The Mediterranean c

year 1997 after experienc

Economic growth during f
expected throughout the region 

implemented policies of fiscal 

have stimulated growth and po

into the European Monetary U

US have continued their stea

domestic USeconomy

The stronger economie

and Spain saw exports from 

increase of 22 percent Expo

especially strong spurred by in

and Spain The commodities 

unchanged with imports of 

accounting for over half the 

participation of Italy Spain 

investment in the region sh

production in the area

Imports from the Me

booming UShousing market 

furniture tiles and other hom

imports of wine is expected to 

countries cuts into the region s

The United States So

011587 has not increased its m

1997 The four members 3

intensely competitive economi

C MID

Israel Gross Domesti

slowing due to tight monetary 

inflation With economic prosp

due to uncertainties about the 
revival is unlikely until 1

countries continue to be hur

the domestic economies of 

modest growth in the near t

Export growth to th

1997 However 1998 shou

growth to the region due to 

of the region The rise in 

exports of fruit furniture a

however should grow as Is

more than 50 percent

Imports from the M

being the biggest contributo

in industrialuse fabrics and 

the shekal rising Israel co

However with interest rate

eventually decline and allo

Aluminum rods and plate 

performed well in 1997 Wi

these nations will likely see

efforts further propelling s

D 

During fiscal year 

agencies the International 

International Development 

investments in Africa Inve

year 1997 The IFC investm

projects in 23 sub Saharan 

IDA also increased its inve

World Bank investments e

Projects undertaken were pr
as transportation agriculture 

nutrition electric power gene

sector management African in

African Unity the Southern A

West African Economic and 

Development Bank had greate

in previous years

Despite these efforts g

below fiscal year 1997 rates in 

working against growth were 

development and political u

Ethiopia El Niiio sadverse wea

further lowering GDP

Trade between the US 

directions during the 1998 peri

from 69277 TEUs in 1997 E

to 119 805 TEUs Container t

as more apparel and glassware 

the Ivory Coast excellent co

exports of these crops by 41 pe

Ocean freight rates hav

conditions of fiscal year 1997 

40 percent mainly due to rate 

West Africa Freight Conference 

AWAFC was dissolved as me

because of disagreements over 

Some new shipping serv

upgraded Safbank Line Limite

a reefer cargo service to take ad

African fruit industry They 

equipment including controlled 

during shipment A weekly se
and the Far East AP Mo

biweekly service between 

March 1998 using five mu

shippers of dry reefer bre

1998 Maersk also started a 

Atlantic Coast and Western 

Gulf Africa Line began in 

breakbulk heavylift and pr

Gulf and Southern Africa 

enhanced its US to Wes

calling at ports in Nigeria a

In East Africa the 

congestion Delays of up to 

vessel schedules The cong

swept away bridges roads a

and the Central Africa hinte

delivered Relatively good 

where there were few de

congestion in East Africa E

port of Durban and traffic 

Capetown became a favori

for the privatization and 

Mozambique The port ofW

to accommodate more traff

E LATIN AMER

Latin America can 

terms of patterns of trad

Caribbean East Coast of S

America The largest regio

41 percent or about 2 

American trade last year 

Coast of South America t

trading partner with the US 
percent ofthe imports from and 

Coast ofSouth America Braz

the general trend of trade betw

South America growing stead

to the Asian economic crisis

Central America accoun

TEUs of the trade with Latin 

South America trade account

12 million TEUs of the total 

West Coast of South America 

during 19978 Central 

unpredictable weather bringin

West Coast of South America 

radical drop in container expo

harm from the Asian crisis is the 

the US market which con

prosperity Forecasters predict 

US market economic grow

growth in trade with the US 

The robust trade betwee

beneficial to the US For the 

trade surplus of683 billion w

314 billion surplus in the sa

234 billion was with Brazil a

US exports to the C

reaching 5310 TEUs A great d

export item However there 

exports of paper poultry and 

related goods and food produ

exported Imports from the Car

an expansion in the apparel ind

Republic Other imports co

woodenware and dairy products 
from Haiti Trinidad and T

fell sharply because of ri

industry and an overvalued 

Despite forecasts 

overtonnaging is a problem 

rates as low as 30 percent 

East Coast ofSouth Americ

Although export capacity u

60 percent range such lev

cutbacks in the frequency 

such rationalization is occ

alliances with each other 

have swamped the efforts 

existing overtonnaging is 

vessels by several carriers

Strikes in Santos a

between the US and Bra

1998 a backlog of around 

Santos as a result ofthe fou

that strike was settled anot

further worsened the rep

inefficiency In an effort to 

privatizing large sections o

In July 1998 a new contain

new port Sepetiba was cr

region

El Nino brought to

America flooding and de

exports The drought als

usage with the Panama 

restrictions in May 1998 

Faced with these restrictio

cargo via mini land bridge 
vessels off loaded some cargo 

the increased costs associated w

cargo carriers imposed spec

Asia USEast and Gulf C

Commission estimates that the 

of traffic during the second qu

revenue of about 17 percent

A unique conference a

Association ISSA No 202 

fiscal year Unlike traditional 

ratemaking activities related on

through movements of USL

carriers that are members of 

carriers may become participan

end no tariff has been filed to 

Additionally seven ag

for various reasons ten new s

or expanded their agreement 

number of membership chang

changing market conditions

Rate levels in the Latin 

both inbound and outbound In 

East Coast of South America 

caused rates to fall The reven

declines have been mitigated 

generated by the growing B

economies Containerized exp

partner in South America incre

Exports to Venezuela our sec

a dramatic 507 percent Imp

grew 4 percent and 114 pe

Brazil developments in port a

the availability of newly develo
Paraguay and Uruguay to 

opened up the Amazon Riv

The West Coast of

levels as the large transpa

larger vessels into the trad

the trade is the increased us

South America which has 

West Coast to West Coas

response SeaLand Servic

oftheir weekly West Coast 

service to Mexico and Cen

West Coast US 

America have become che

markets This has impro

traditionally favored sout

vessels transiting the Pan

development of extensive t

Canal which allows cargo 

Coasts to be joined with ca

ofthe journey Utilization 

have been quite high and 

vessels in response Althou

rates the improved cargo f

F T

The continuing fina

devaluation of a numbe

substantially to the severe 

Exports from the USto A

in 1998 and USimports f

creating important oppor

transpacific carriers
In the eastbound trad

Stabilization Agreement TSA 

discussion agreement among 13 

serving the Far East and the Ind

per FEU general rate increase 

November 1997 Independent a

America Eastbound Rate Agree

decreased with a correspondin

non conference lines Those 

successful implementation ofa

increase plus additional peak s

TSA had agreed on an increase 

300 per FEU The charges 

November 1998

However in the westb

returned to Asia halffull Mem

Stabilization Agreement WTS

discussion group composed of 

a year ofdeclining demand and 

slipped to levels at or below 5

1998 as much of Asia Korea a

back on their purchases ofUS

demand accompanying low rat

for moving empty containers b

are reported to have more than 

that TSA managed to impleme

booming import trade reported

for most transpacific lines offe

and the US

By September 1998 the 

from various shippers alleging t

COSCO the major independen

scarce equipment and vessel sp

customers and higher revenu
alleged forced some shippe

voluntary rate increases 

sufficient space and equipm

In response to those com

Finding Investigation No 2

the Transpacific Trade to 

In late October 1998 

increases as follows 1 a 

FEU effective May I 19

surcharge on all cargo 

November 30 1999 and 3 

FEU beginning May 1 199

slated even larger increases 

January 1 1999 plus a May 

FEU

Since OSRA would 

annual service contract neg

not clear whether the n

contracting would have mu

the eastbound transpacific 

indicated that forecasts ofco

in combination with the abs

in 1999 the need to earn 

westbound rates and cargo 

investments may result in 

rate increase

In the westbound t

Agreement TWRA No 

covering the USto Asia t

support in 1998 With on

diminishing cargo base 

competition from non con

Nedlloyd resigned from t
customers greater service con

TWRA As a consequence 

TWRA decided to liberalize 

procedures That however di

Ltd a founding member ofTW

from the conference

Indeed in the transpac

TSA and WTSA appeared to 

primary collective rate settin

TWRA the underlying confer

sometime in mid January carri

whether ANERA and TWRA 

In addition to oversight 

and discussion agreements on 

issued a section 15 order seeki

Asia Shipowners Forum and o

ofTrade Committee The proc

fiscal year

G WO

US liner trade condit

crisis in Asia The collapse of 

recession in Asia sent the value 

relative to foreign currencies an

exports worldwide At the sa

US remained strong F

unemployment drove US co

record high levels Conseque

into a severe imbalance as the 

expanded Worldwide US 

fiscal year 1998 relative to the 

for USliner exports were po

previous fiscal year
The trade imbalanc

transpacific sending carriers 

over vessel space and rates 

fiscal year 1998 USliner i

in comparison to the previo

were down by 12 percent Af

rates transpacific carriers 

100 percent in the inbound d

outbound direction TSA ca

rate increase of 300 per co

The situation becam

months as import shippers w

vessel space and equipment 

holiday season Shippers w

imposed a peak season su

Complaints from shippers 

carriers were exploiting the 

space based on the cargo 

response to the situation th

Investigation No 23 to ga

carriers in the inbound trans

USshipping statutes The t

continue for the next severa

foreign and domestic stabi

On other major issue

readied themselves througho

ofOSRA The new legislati

the President in October 19

Among the reforms enacted 

has the potential to produc

industry OSRA extend

conferences to other types 

prohibits agreements from 
agreement members from n

contracts Moreover carrier

required to publish their servic

required to file each servic

Commission Consequently O

conferences to collectively m

members

Anticipation of regu

structural changes among ca

future Many carriers through

away from traditional confere

agreements For instance TW

the outbound transpacific Los

year who nonetheless remain 

Other structural chan

several years include the merg

and the acquisitions of DSR

Lines by Hanjin Shipping Co 

Pacific Ltd respectively 

traditional conference syste

concentration in the shippi

additional mergers and acquis

NVOCCs and shippe

reforms in order to remain co

of service contracts may p

shippers to collectively po

shippers associations Rece

North American Consolidato

largest shippers associations 

of90000 TEUs Armed with 

moves forward shippers ass
to negotiate favorable servi

large multinational proprie
AUTOMATED T

INFORMATIO

A INTRODUCTIO

The 1984 Act require

foreign commerce of the US 

inspection their tariffs applic

Act also requires that service c

terms be made available to the 

app 817 and 1707

A freight tariff filed 

ofrates charges and rules ap

by a carrier or conference A 

between shipper sand carrs

tariff Mutual commitments a

shipper guaranteeing the carri

period of time in consideratio

certain rate and service level

Additionally termina

persons engaged in carrying o

dock warehouse or other te

common carrier by water i

commerce

The applicable statutes 

the Commission to ensure 

standards before tariff mater

service contracts may be rejec
meet certain statutory and re

compliance with the law the 

for not filing or if properly 

of a tariff or the essential t

USCapp 812 815 8

The Commission us

for surveillance and invest

raised by private parties Fo

any court case the tariff or 

Commission and in effect i

charge or rule While tariff 

for regulatory purposes the 

provide rate information 

competition and to facilitat

All such tariff data is filed w

Prior to implementation of 

receiving up to a million pa

The enormous amo

process with a limited numb

technology as a means of a

the government and the ship

of this subject area by the C

studies beginning in 1981 

year 1983

B EARLY S

The Commission co

the premises upon which ta

study contained three parts 

analysis interviews with 

forwarders and interviews 
The overall conclusio

retention of the requirement to 

the maritime industry but 

modernization particularly in 

conducting this threepart stu

intemal study of the impact of 

itself

With the results ofthese 

explored the issue of tariff 

conferences freight forwarder

firms This survey revealed 

implementation of an automate

C FIRST STEP IN 

Recognizing the need a

automation the Commission u

were interested in develop

November 14 1983 the Com

Business Daily a Notice of I

Paperless Federal Maritim

Storage and Retrieval Systemsf

received The commenters als

policy nature which needed to 

D THE SHIPP

On March 20 1984 the 

the continued need for var

questioned by certain governm

during hearings on the Act sec

and abide by tariffs Servic

alternative to a tariff While s

filed confidentially with the Co
be filed with the Commiss

general public

E THE TARIFF A

In August 1984 a s

formed to gather additiona

questionnaires to ocean c

forwarders and shippers on 

improve the process

At about the same 

house survey was conducte

for tariff automation and pe

In August 1985 the 

Automation A Functional 

results ofthe 1985 industry 

the

need

problems

for automated

with manual

filing

t

objectives of an automated 

The report recomme

evaluate the technical altern

a market analysis of the 

likelihood that the Comms

report concluded that the fe

since the Commission lac

Because the Commission ne

unbiased thorough and ac

August 1985 for technical a

consultant must remain inde

and could not become the c
F ATFI FEAS

TARIFF AU

THE ATFI ADV

The Commission entere

understanding with the Genera

August 1985 for the developm

a contract for this task with a G

Early in 1985 the Co

importance of not only solici

arena the opinions of all inte

automation of tariff filing F

provisions

ATFI Industry

ofthe

Advisory

Federal Advis

Com

Candidates for member

The nineteen industry membe

carriers three steamship conf

forwarders and the National 

Association three ports and 

Authorities two exporters 

Association of Exporters and 

firms and the Information Ind

The critical objectives 

established as follows

To allow each 

formulate and 

process of auto

To educate eac

about the need

such a process
To investig

and forese

technology 

Then if f

compromise

industry s

acceptable 

The ATFI Adviso

between January and Novem

to and reviewed the reports 

final report of the Contra

Advisory Committee with a 

Feasibility Study identifie

processing tariff retrieval 

identified key policy assum

The functions and re

in the study have not chan

subsequent efforts to procu

The Feasibility Stu

Tariff automation a

maritime industry a

appears to be politi

tariff automation a

when balanced aga

practical limits in th
G BENEFIT CO

PROCUREM

In October 1987 a Ben

commercial contractor and cor

the project This analysis was su

and Budget OMB In 

procurement authority for the p

H INQUIRY ON THE F

and PRESOLICITA

In December 1987 the C

request for proposals RFP w

vendor community on the proje

sought public comment on the 

in a first ATFI Notice of Inqu

The purpose ofthis outr

regulated community and the p

of the Commission splans for 

requested from other than poten

of the proposed ATFI system 

NOI has remained constant thr

The electronic 

Commission is seeking 

contractor scentral comp

Commission for tariffre

format of tariff data 

developed in conjunctio

Data Coordinating Com

items visavis tariff 

Tariff line items are ba
items in current pa

without having to is

As recomm

Committee standa

will not be mandat

have the capability 

appropriate time T

terms of service co

Full implem

allow commercial 

Exemptions at Leas

of tariff filers who 

electronic system

The system 

existing computer e

full connectibility 

using asynchronous 

with a modem to 

software will provi

tariffinformation is 

are complied with 

Such edit checks f

identify improper e

less than 30 days n

is warranted such 

will still have to 

necessary resolved 

computer capabili

also

The ATFI 

mechanisms to pro
Tariff filers wil

materials by remote ac

carriers or conferences 

conference will be able 

appropriate item can be 

can also continue to be 

filing eg by direct in

tariffs on instruction fro

paper tariffs into elec

encourage commercial 

who may find it difficu

Once the tari

Commission will down

formatted onto compu

person at the relativ

dissemination This w

duty of providing copie

order to keep up wit

changing freight rates 

interested persons must 

frequently The Comm

to provide this capabil

The Commissio

processing of the tariff 

competition with comm

that those services wil

facilitate their valuea

however must use the s

for investigative and 

continue to utilize ap

services of commercial 

In order to carr

making tariffs and es
available for public 

to have a public 

Washington DC 

terminal on which 

brought up on the 

rates and rules P

available upon writ

courts and other trib

over historical tar

December 22 1987 

The Commission a

RFP that remote access to 

would be available any 

information by any interest

While the Commis

the proposed features and fu

a draft RFP was issued 

individuals on the bidder

questions on the proposed 

presolicitation conference 

questioning

In April 1988 the 

Automation Inquiry 53 Fe

for the features and functio

I REM

While the Commis

RFP it became aware o

Subcommittee on Informa

concerning the functionalit

intended to allow the ship

access to an individual tari
access to one tariff at a time a

searches Questions about th

perception that the Commis

intended valueadded services 

1988 the Commission ack

automation but placed the de

resolve the remote retrieval c

During the period Ju

reassessed the functionality of

of remote retrieval This proc

of Congress and the Executiv

made to the RFP to reflect 

requirements In October 198

potential offerors a second dr

revisions However the Com

questions on remote retrieval

After much analysis a

decided in December 1988 to 

with remote retrieval In its 

Inquiry the Commission state

The controllin

functionality of its A

properly considered an

as 1 the system u

members of the shippi

privatesector informa

believes it has

In October 198

of any complaints abou

contractors issued A C

of an Automated Tar

describes the proposed 
terms sufficiently p

understand for the 

public report was 

Commission sIndus

there were no objec

More impo

Commission and th

Study Report subop

as an accommodatio

Accordingly 

allow the genera

rudimentary retrieva

the data

In consider

Commission and th

properly perform th

appeared reasonabl

The shippin

modern technology 

tariff data on a limite

the utilization of t

retrieval continues 

and retrieval netw

facilitate trade

Accordingly 

Commission believ

policies and confli

system and has st

functionality of AT
Study and as further re

53 Fed Reg 52785

J CONTRACT AWA

After receiving many 

RFPs and after resolving 

Commission issued a final RFP 

offerors on the bidders list E

1989 and evaluated for technic

On August 8 1989 the 

I System Concept including v

II System Design to Planning 

Contractor of McLean Vi

International DXI ofPittsb

technical as well as the best co

year system life also containe

ie Development and Testing 

Operation The contract was 

exercise of all options Wor

1989 and during fiscal year 1

and II as well as Phase III D

The system Prototype 

As required by the contract 

software being developed by p

that could be incorporated into 

it The survey identified only 

developed by DXI that met 

system At about the same tim

identified other changes mos

improve the system One such 

of a new model minicomputer 

computer This would contin

significantly improve user frie
proposed modification c

Delegation ofProcurement 

modification

Since DXI contemp

its proprietary software it c

software to the Commis

cosponsor approach und

FAR at 48 CFR 27408 

and relinquishment of owne

contractual arrangement ha

through licensing and escr

turn has a oneyear warran

and complete access to the 

thereafter

Under the license 

copyright notice as follow

Inc Unpublished All right

United States See 48 C

Commission does not in 

commercial product and c

any commercial tariff se

Contractor to be complete

Accordingly the cosponso

the

contractual

FAR

arrangements

27408 and

No 31 101st Cong 1s

Commission in establish

appropriate steps to ensure 

from gaining an unfair adva

provision of valueadded s

was modified to incorporat

The last optional p

towards the end of fiscal y
elected to continue its contrac

limited basis while it considere

a contractor to design and dev

system Accordingly the Com

PRC Inc contract that were li

ATFI equipment and other nec

the process of developing a for

to design and develop addition

K DOC

On August 1 1990 th

9023 in which it issued a se

Proposed Rulemaking reques

of the basic features being co

impact current paper tariff pr

Commission issued a first In

comments received and resolv

On March 25 1991 th

Report that responded to conc

which had raised concerns in 

year 1992 authorization hea

Merchant Marine of the House 

Fisheries on February 28 19

the Commission on March 8 

clarified the matters raised

The Commission sTh

was issued on July 23 1991 

issues listed in the August 19

Rulemaking could be issued

The proposed rule in 

Contracts was issued on Sep

as a new Part 514 ofTitle 46 
being October 31 1991 

covering

electronic

tariffs

system

and

Other

servi

C

tariffs and service contrac

515 520 550 580 and 58

Still further comm

session was conducted by 

of all the comments the C

an interim rule of Augus

interim rule addressed thre

The Harmo

was chang

preferred 

rulemakin

As sugges

terms of s

text visav

rule with 

rule numb

developed 

the public

Algorithms 

possible as

pre determ

algorithm 

option for 

Items ie 

linkage U

terms no a

Further comments 

publication As a result of 
Amendments were issued on 

effective on February 3 1993 

ATFI Amendments was the f

essential terms so that they co

L BATCH 

The proposed refine

issues contained in the fiscal 

required revision of the File T

Tables transaction set orig

in Docket No 9023 also prov

make available to the publ

distribute file transfer formats 

filing guide to facilitate form

privatesector firms desired th

Accordingly the first 

Docket No 9023 appende

containing among other thing

data dictionary and code refe

the Batch Filing Guide has 

major system improvements 

provide the public with as mu

possible Other parts of the A

Fundamentals Guide etc als

available to regular subscriber

throughout the life of the syst

M MISCELLAN

Certifications of firms 

fiscal year 1992 There now a
On February 11 199

implementation previously 

be postponed as a result o

headquarters offices When 

place in August 1992 Sup

Docket No 90 23 issued 

implementation schedule wi

areasoperations of the filers 

The implementation 

1992 at 57 Fed Reg 59999 

at 58 Fed Reg 31522 T

tariffs be filed electronically 

Carriers and conferences ope

Pacific trades were schedule

European trades the AM

American Caribbean trades 

Terminal operators and carri

Last Finally the schedule pro

filing of all essential terms o

Many filers were no

periods and were granted ex

representing 219 carrierscon

granted enabling carriers to 

the extensions however 

December 31 1993 as being 

compliance Those filers who 

found themselves named in 

should not be canceled for fa

Commission issued its last s

fiscal year 1995 All told ap

tariffs canceled for failure to 

During fiscal year 1

ATFI system This figure 
Transportation Board STB 

system in fiscal year 1998 At 

4778 effective tariffs in the 

compared to fiscal year 1997 T

significantly since the complet

electronic form

Additionally all essen

into after November 22 1993 

Commission received 12271 

1998 which represented an a

the prior year And the pra

continued its increasing tren

amendments received this fisc

over last year and is an appro

number filed just three years 

essential term filings are avai

5035 individuals and organiza

registered to access ATFI da

increased by approximately 22

The Commission has k

by routinely and systematica

issuing press releases and 

Commission also continually 

and ended the fiscal year wit

Additionally ATFI registration 

the Commission has mad

Commission sInternet home 

adjusted

biannual review

this past

of all

fiscal

user

yea

fe

In fiscal year 1996 t

affording filers the option of s

contract which incorporates b

electronic essential terms fili
Commission and carrier 

Commission srecords 

advantage of this option

During fiscal year 

Memorandum of Understa

the filing of US domestic 

passed in fiscal year 1996 

domestic offshore trades f

permits these tariffs to con

specific protocols for STB a

offers the STB advice and a

ATFI system as well as any 

domestic offshore trades 

signatory to the ATFI co

Contractor on domestic iss

provides for the STB to mak

contract and other costs the 

Toward the end ofth

an eightmonth extension o

1999 Again this year th

necessitated reductions in c

which limits the system f

System integrity accessibil

unduly compromised

The eightmonth pe

maritime reform legislation 

Senate late in the fiscal year 

by the President This le

requirement for public tariff

it with an approach where

required to publish their 

accessible by any interested 

effective date ofMay I 1999 
the Commission to complete 

March 1 1999

Pursuant to the terms o

will continue maintenance of 

ensure its availability for tarif

becomes effective The period 

will be dedicated to archiving 

and performing all required co

enactment of the OSRA th

complete requirements for t

publishing by March 1 19

determining the most cost effe

historical information from the 

N UPDATE ON 

SEPTE

Since 1986 during the 

members of the public exp

accessibility of the ATFI syste

detailed description of Cong

Report of the Federal Maritime 

was

ATFI

to

system

be made

Congress

available

was

elec

c

private sector providers of info

these concerns in section 2b

that The Commission shall 

system to limit remote access 

This statutory restrictio

in HR Rep 173 to HR 

Commission sfiscal year 1990 

In implementing th

Commission to develop 
will not compe

information services 

Study recommende

only rudimentary w

addition the procedu

that the user be able 

of items before auto

In response to this dir

remote retrieval of tariff da

in the following two respec

1 A tariff retriever w

individual tariff per conn

and

2 A tariff retriever w

as 30 minutes per connec

These restrictions 

preparation for the planned 

indicated herein implement

because of the relocation o

In the interim on Novembe

102582 section 502 of whi

statutory restriction referen

101 92 The major feature

a The Commis

data without time quantity 

b A direct acc

retrieval and

c A secondary 

of tariff data maintained b
tariff information obtained 

Commission This secondary 

September 30 1995

The Commission imple

102582 by publishing regulat

that wish to obtain the ATFI 

collecting secondary user fees 

use fee provisions on Septemb

have direct access at a cost of4

use of tariff data no longer are 

THE FORE

PRACTICES 

A G

The Omnibus Trade a

enacted by Congress and effec

August 23 1988 contains at Titl

Practices Act of 1988 FSPA

The FSPA directs the 

conditions affecting UScarrier

which conditions do not exist fo

under US law or as a result 

providing maritime or maritime 

During fiscal year 19

potentially restrictive practices 

PRC which may warrant institut

FSPA or other statutes These 

access intermodal services forw

China and Brazilian restrictions 

with other South American natio

of non Brazilian vessels in that 

6
B TOP TWEN

TRAD

Section 1000g

Competitiveness Act of 1

annual report to Congress 

generated the largest volum

recent calendar year in bila

The Journal of Cos

Service PIERS databas

of top twenty partners In p

Census Census were us

no longer utilized by th

aggregated so as to exclud

PIERS import data 

import manifests filed el

System AMS obtained 

manually at individual po

filed electronically with C

are edited to conform to PI

at each port from bills of 

PIERS uses standardized s

lines port names and co

Commerce also employs p

increase the accuracy of th

The most recent co

available is 1997 The tabl

countries that generated th

in bilateral trade with the 

represent each country s

thousands of 20foot TEU
Rank Country

Top Twenty 

Trading 

1 China PRC 

2 Japan 

3 Hong Kong 

4 Taiwan 

5 South Korea 

6 Germany 

7 United Kingdom Incl N 

8 Brazil 

9 Italy 

10 Belgium Luxembourg 

11 The Netherlands 

12 Indonesia 

13 Thailand 

14 Malaysia 

15 France 

16 Philippines 

17 Venezuela 

18 Dominican Republic 

19 Honduras 

20 Singapore 

Source All data are aggregatedfro

ServiceJournal ofCommerce data

manifests and bills ofladingfor al
The same countries 

Trading Partners in 1997 as 

exception of three countries 

and Singapore Increased tra

apparel manufacturing indu

Honduras catapulted those 

category for the first time Ss

either in the high teens or low 

In terms ofranking order Chi

leader On July 1 1997 the t

reverted to Chinese contro

However PIERS continues t

due to its status as a major tra

occurred among the rankings 
SIGN

OPE

ACT

ORGANIZ

A OFFICE O

1 General

The Office of the Se

matters submitted to and 

Commission Accordingly 

and submitting regular a

consideration by the Commi

minutes ofactions taken by t

and processing formal and i

of the shipping statutes an

processing special docket a

clerical or administrative e

and notices of actions of the 

and records ofall formal pro

petitions notices pleading

administrative proceedings 

or members and employees 

Information Government 

responding to information 

maritime industry and 

authenticating instruments 

compiling and publishing b

and maintaining official cop

Office also is responsible 

requests

The Secretary sOffi

rules designed to reduce 

proceedings and participat

changes to the shipping sta

The Co

five for
proceedin

without d

an adm

administr

review T

special d

docket w

carriers f

period th

three rule

Special D

proceedin

Six rulemaking proce

pending before the Commis

decisions in these matters are 

2 Office of Informa

Informal Dockets

This Office coordina

system throughout the Comm

information requests were pro

to the general public of ove

attributable to the complai

162 578 Since 1989 this O

over1500 0

The Office facilitated 

industry representatives and 

materials and information req

fiscal year 1998 this Office 

requests and inquiries The O
ofthe President sConsumer A

throughout the fiscal year

In addition the O

adjudication ofreparation cla

be predicated upon violations 

received under this program 

adjustments arising from all

significant number pertain t

shipments During fiscal ye

three pending cases were car

were three pending cases at t

During fiscal year 19

The Offic

the Burea

activities 

These ef

concerne

and cont

in severa

The Offic

activities 

wider v

received

B O

ADMINISTRAT

1 General

Administrative Law Ju

ofan evidentiary record throug

for the litigating parties rule 

at hearings held after the rec

proceeding on the Commisss

ALJs have the authori

issue subpoenas rule upon 

evidence take or cause depos

justice would be served there

hold conferences for the settl

consent of the parties disp

matters make decisions or re

action authorized by agency 

Procedure Act

At the beginning o

proceedings two special d

proceeding were pending bef

were added The ALJs forma

discontinued one proceeding 

formal proceedings nine dec

one decision in an informal p

2 Commission Acti

The Commission a

eight special docket decision

and one dismissal of compla
3

Decisions of Ad

proceedings not 

Total Fitness Equipme

Worldlink Logistics Inc 

Application of Total 

Professional Gym for 

Docket No 3110

In these consolid

manufacturer of exercise equ

shipment of chrome track ba

rate by respondent carrier s

shipment arrived in Missour

its agent srate quotation and 

would release the cargo alth

the respondent sagent in Tai

was held that respondent vio

the 1984 Act by engaging 

ratemaking and delivery pra

carrier sfiled tariff rates and 

amount plus interest

River Parishes Comp

Aluminum Corporation 

In this proceeding co

Mississippi River alleged tha

MTO had violated section

the 1984 Act by entering into 

of complainants to perform 

Complainant asked for a cease 

in an unspecified amount Re
common carriers by water and t

jurisdiction and that its practice

ships it served It was held t

because many common carri

respondent spractices did not v

ofthe many benefits resulting 

service under the exclusive co

Bermuda Container Line 

Inc FX Coughlin Co a

Docket No 9722

In this proceeding c

alleged that respondent a 

section 19 of the 1984 Act an

regulations by failing to war

respondent freight forwarder h

and likely not to pay the ocean 

the freight forwarder had acted 

had caused its own problem 

shipper without investigating 

forwarder was under no additio

shipper clients before booki

carriers

The Board ofCommissio

v Kaiser Aluminum and 

Board ofCommissioners 

Harbor and Terminal D

Harbor and Terminal D

In this proceeding c

competing ports and MTOs h

ofthe 1984 Act by charging c
of complainant Port mainly 

complainant Board in viola

charging rates other tha

discriminating against cert

parties entered into a settl

companion court case w

presiding judge under the s

agreements

Panalpina Inc v Easte

Docket No 98121

In this proceeding 

NVOCC violated sections 

by not taking care to mak

delivered overseas or to p

charges that had accrued 

11641 74plus interest w

from the violations of law th

4 Pending Proceed

At the close of fisca

proceedings before the ALJ

initiated by the Commissi

instituted by the filing of co

shippers conferences port a

trade associations and steve
C OF

THE GENE

The General Counse

Commission This includes 

recommendations for Commis

implement Commission poli

orders and regulations for Com

Office ofthe General Counsel 

to the Commission its staff 

cases As described in more d

represents the Commission b

administers the Commission s

1 Rulemakings and 

The following are 

representative of matters prepa

a Rulemakings

Order Denying Petition f

Order in re The Impac

Customs and Practices 

Industry Petition No 

September 14 1998

This proceeding was i

declaratory order filed by RF 

ocean freight forwarder licens

the Commission institute a ru

clarifying the Commission s

2the use of electronic data i
forwarders and 3the effec

on carrier compensation a

forwarders

The Commission fou

inplant and EDI arrange

incorporate those arrangem

order to collect a fee o

Commission found that the 

freight forwarding services 

The Commission de

of diverse arrangements tha

their shipper and carrier clien

were too great to address in 

The Commission recognize

systems in the industry a

technological innovation 

issue a regulation attempting 

these arrangements that cou

b Decisions

Corpco International 

No 9705 28SR2

This proceeding was 

International Inc Cor

Straightway Corpco al

10bI10b2and 1d

available for delivery a mob

to transport from the US 

additional charges were pai

alleged to have arisen from 
On January 8 1998 

Decision in which he found tha

of the 1984 Act by forcing 

charges to obtain the necessa

release of the cargo Corpc

Straightway On June 9 1998 

Order adopting the Initial Dec

The Government ofthe T

Land Service Inc and A

Docket No 89261 28SR 

This proceeding was 

Government of the Territory 

itselfand other named and unna

Service Inc SeaLand a

APL GovGuam alleged 

several provisions of the 191

rates in the trade between Gua

the trade between Guam and 

Decision on June 3 1996 in 

Land and APL were not unre

case

GovGuam filed except

1998 the Commission issued 

APL violated the 1916 Act by 

rates

6

were found to excee

274 659and APL srates w

o freturn by16733 229 The 

to the ALJ for a determination 

on a jurisdictional issue regard

by SeaLand after it withdrew 

the Commission sjurisdictio

reparations were only availab

1916 Act so that GovGuam sa
in its complaint could not 

shippers

Petition ofChina Ocea

a Limited Exemption f

Act of 1984 Petitio

March 27 1998

On January 7 1998 

COSCO filed a Petition 

exemption from certain pr

Under that section a govern

as COSCO cannot lower i

notice or otherwise rec

Commission COSCO pro

section 16 of the 1984 Act 

not undercut competitors 

COSCO suggested 

provide more service option

which must move before th

the waiting period undermin

and asserted that its non con

to the waiting period could 

undercutting COSCO srate 

sought its rates would still 

section 9a that is they c

reasonable

Attached to COSCO 

customers explaining that 

requirement caused them t

The Commission also rec

shippers APL SeaLand a

supporting COSCO sreque
The Commission gran

finding that it met the standard

The Commission noted that t

options for shippers while 

intent in enacting the controll

unfair or predatory price cu

COSCO srequest to be si

Commission decisions and 

However the Commission cla

to match the filed rates of ves

or unified rate quotations w

Commission cautioned that th

were any abuses or predatory 

Compania Sud America

American Freight Confe

28SR12 March 19 

This proceeding was 

Compania Sud Americana 

Respondents Inter American 

C of the IAFC AP Moll

Transport Inc AS Ivarans R

Companhia de Navegacao 

Maritimas Argentinas SA

Frota Amazonica SA 

Dampfschiffahrts Gesellschaf

Land Joint Service CSAV 

sections 10a2and 10a3

1709 a2and 3by cha

authorized by the IAFC Agr

damaged by the IAFC sactio

of credit to pay for a portion o

entity known as the Socied

Conferencias de Frete Sobr
respondents submitted a M

Judgment CSAV then file

Judgment The presiding AL

the respondents Motion for 

complaint

The complainant ha

section 10a2by failing to 

to dissolve Sobracon a Braz

the respondents conference 

as a matter of law the respo

in their filed FMC Agree

requirements Disagreeing 

issued an order in which it d

filed the agreement to dissol

to file produced a violation o

Commission issued its Ord

Reconsideration and severa

brief in support of the Petitio

currently being reviewed by 

2 Litigation

The General Counsel 

before courts and other ad

litigation work largely consist

petition for review ofits order

the General Counsel also p

enforcement of Commission o

and other cases where the Cos

litigation

Office

The following are rep
American President Li

Commission DCCir 

SeaLandService Inc v 

DCCir No 981272 

Guam v Federal Mariti

981354

These cases arose from 

No 89 26 Government ofthe 

Inc and American President 

Land and APL had violated 

charging unreasonably high r

mainland USas well as in 

The ALJ issued an Initial D

found that the rates ofSeaLa

therefore dismissed the cas

Initial Decision and on June 

finding several violations 

proceeding to the ALJ for a 

determination on a jurisdict

containers moved by SeaLan

were subject to the Commiss

SeaLand and APL 

Commission sdecision in th

of Columbia Circuit on J

consolidated by the court G

Commission sdecision in 

petition was not consolidated 

On July 13 1998 th

for lack of subject matter jur

arguing that the Commisss

under the Hobbs Act and th
On September 14 1998 the 

case 981354 The court ag

and granted the motions to 

remanded proceeding befor

abeyance pending conclusion 

1998

Maryland Port Admin

Commission 4th Cir N

This proceeding soug

in Docket No 9401 Ceres 

Port Administration MPA 

of sections 10b1b12

sections 16 and 17 of the 19

unjust preference and prejudi

failing to grant it equivalent 

it provided to an ocean com

MPA argued that ocean comm

situated and thus any dis

unreasonable

On October 10 1997 

failed to consider or address t

standards for his decision T

Initial Decision and decided 

found that respondent MPA h

of the 1984 Act by relying 

granting more favorable lease 

refusing those same or substa

because of its status where th

to the port any more security o

provided and further violated 

MTO rates and charges that w

received particularly where t
greatly disfavored the party co

cargo The Commission also f

10b1and 12 by refusin

service that were comparabl

operator unless the MTO drop

paid amounts allegedly due a

imposing on the MTO rates fo

in comparison to the rates pro

service for the same service a

any legitimate goal of the por

Respondent appealed 

Court of Appeals for the Fou

Ceres intervened in the proc

February 19 1998 and argum

Court is expected to issue its 

SeaLand Service Inc v 

DC Cir No 971083 

Federal Maritime Comm

andAmerican President 

Commission DCCir N

These consolidated 

Commission sdecision in 

Command v SeaLand Servic

Commission found in that ca

between aUSflag carrier an

foreignflag carriers agreed n

from the USflag carrier t

preference laws were allocat

meaning of section 10c6o

were required by the law of 

ofthe except clause of secti
by orders ofthe Maritime Ad

been found unlawful by any 

On January 9 19

supplemental briefing in the 

SeaLand and APL to s

Supplemental briefs were fil

1998 the Court ofAppeals a

the challenged allocations w

dismissed the carriers petiti

James J Flanagan Ship

Flanagan Stevedores v 

DCCir No 971616

This case is the res

Shipping Corporation to revie

No 9432 James J Flanaga

Flanagan Stevedores v Lake 

and Lake Charles Stevedore

Commission found that a s

imposed by the respondent 

stevedore violated section 

complainant stevedore was n

derived no allocable benefit 

that an increase in the port sp

ton did not violate the 1984 A

expensive cleaning and cons

decision

Flanagan

in the US

filed

Court

a pet

o

Circuit on September 29 

Commission filed a motion 

jurisdiction arguing that the C
the Hobbs Act The Court 

dismiss on January 12 1998

3 Legislative Activit

The General Counsel r

all matters before Congress T

legislation proposing leg

Commission officials respo

assistance and preparing agen

proposed bills and testimony

During fiscal year 

Congressional inquiries wer

comments The Office also wo

on proposed legislation that af

the Office monitored the pro

aspects of S 414 the OSRA 

Commission sstatutory mand

4 Significant Ongoi

Port Restrictions and 

StatesJapan Trade Doc

February 26 1997

On February 26 1997 

impose fees of100 0 per v

response to unfavorable restr

ports The imposition of th

November 6 1996 pursuant t

extensive FMC investigation 

rule was originally scheduled 

postponement to allow diplom

took effect on September 4 1
In its decision the C

conditions involving the dom

Japan by the Japan Harbor T

association ofJapanese water

that shipping lines in the US

operational changes major 

JHTA That organization 

administration of the prio

process of negotiations and p

and waterfront unions No w

for appeal were given for 

control over access to the 

competition and allocate wo

Commission also found that 

business operations of its de

fees and impose operational 

As a result of these conditio

were burdened with unreaso

The Commission fou

ultimate responsibility for JHs

permission of and under t

guidance of the Ministry 

member companies are subje

their rates and business plans 

that the imposition offees wa

repeated diplomatic efforts o

other major trading nations 

reforms

The sanctions were 

April 14 1997 however bil

Commission sconcerns were 

the Government of Japan 

Memorandum ofConsulta

In the Memorandum of C
committed to a framework for

by July 31 1997 Based 

Commission postponed the e

on April 13 until Septembe

however no reform plans for 

agreed upon or implemented 

action to further stay the sanc

On October 15 1997 

in the final rule the payment 

month of September was due 

October 16 the Commission w

did not intend to pay the 

Commission announced its in

of the final rule addressing 

provisions liner vessels oper

barred from or detained in 

clearance until their debts to 

The likelihood of sh

urgency to ongoing USJap

Maritime Administration D

State These negotiations 

October 24 1997 before any 

Japanese negotiators conclude

historic detailed and far rea

port practices In light of 

entered into an agreement w

assessed for the month of S

compromise

In November once the 

were formally ratified by a

leaders the Commission susp

assessing sanctions The Co

executed a compromise agre
recognition ofthe substantia

case and the signing ofthe po

those fees assessed on Japa

November 1997 The Comm

however to monitor complia

negotiators and to ensure 

implemented

5 Foreign Shipping 

Affairs

The General Counse

the Commission sinternation

monitors potentially restrict

and makes recommendations 

addressing such practices

The Commission ha

foreign shipping practices u

FSPA Section 19 empowe

regulations governing shippi

conditions unfavorable to 

Commission to address adve

foreign trade which conditio

US

In fiscal year 199

addressed a number of pot

shipping practices by foreign 

With regard to PRC 

continues to monitor a numb

ofa Chinese commitment to 

and logistics services in the P

The Office is also reviewi
Shipping Exchange a combin

body recently established by 

operations do not impede or d

region

The Commission conti

from shipping lines on certain p

of Brazil which may contraven

the Commission seeks to asce

authorities to permit a US

warehouse in Brazil created co

foreign trade under section 19 

conditions affecting US car

carriers in conflict with the FS

to whether restrictions on US

cross trades between Brazil a

impairs access of USflag ve

ports in violation of section 

Commission also recently col

cargo preference legislation in 

at a severe competitive disadva

If information collected by the 

law it may launch formal adju

Such proceedings could resu

including imposition of pervo

suspension of tariffs

The Office of the Ge

interagency groups and inter

coordinated and participated in 

Another responsibility 

verification of controlled carri

Common carriers that are 

governments are required 

requirements under the 1984 A
appropriate recommendatio

ofpotential controlled carri

Commission components 

carriers In fiscal year 19

information relating to the 

carriers
11 OF

EQUAL EM

OPPO

The Office of Equal 

applies knowledge of Federa

concepts procedures and reg

comprehensive program of eq

Office works independently un

provide advice to the Commiss

carrying out its policies and 

affirmative program planning

The Office is responsib

special emphasis programmin

adjudication with the assista

counselors and a Special Empha

The Office works close

Personnel managers and superv

Improve recru

women minoriti

conditions in the 

Provide adequa

Facilitate early 

problems

Develop program 

The Director Office of 

employees who raise allegations 

9
investigation hearing fact f

such complaints of discr

complaints of discriminati

resolution of formal comp

program simpact and effect

Significant accompl

following

1 Provided briefings 

2 Provided workshop

3 Provided counselin

and employees

4 Reviewed and asses

resource activity and acti

5 Developed informa

executives area represen

6 Planned and deve

FMC employee participa

7 Continued to imp

Federal agencies and the 

programs in the special e

8 Continued non d

response to Pub L No 1

During fiscal year 

programs and initiate add

understanding of EEO con
E OF

INSPECTO

The Office of Inspector 

was established pursuant to the 

was amended in 1988 to provid

general at designated Federal e

It is the duty and respo

Provide polic

supervise and c

relating to t

operations

Review existin

regulations rela

and operations 

concerning th

regulations on 

the prevention 

in

programs

the admi

and 

Recommend po

or coordinate 

financed by th

promoting ec

administration 

fraud and abu

and operations

Recommend p

or coordinat
Commissio

local govern

agencies wi

promotion 

administra

of fraud an

administere

the identific

in any frau

Keep the C

currently in

other repor

problems a

administrat

administere

recommend 

problems a

the progress 

action

In fiscal year 1998 

including a comprehensive 

1997 Financial Statements 

Passenger Vessel Certificat

Work Schedule Program 

Representative Concept a

Management System In ad

of an OIG at another agenc

Office sGovemment Audit

During the year v

informal were opened an

remain pending review by 

formal investigation was 

agency
In fiscal year 1999 

comprehensive program ofaud

priority on program evaluatio

operations while continuing t

that may exist in agency progr

to both the agency and the O

OSRA will generate new a

oversight by the OIG

The Inspector General 

Council on Integrity and Effic

and participates at meetings h

a forum for the exchange 

community and provides a 

inspector

OIG will participate

general projects

in any suc

It 

1999

The Managing Directo

to the Chairman for the manage

programs managed by the

to the

F OFFI

MANAGIN

Bureau of Eco

Bureau of Ta

Bureau of Enf

Bureau of Ad

and thereby implements the r

and the administrative policies 

Also the Managing Dir

Office of the S

Office of the G

Office of Adm

and administrative assistance 

Office of the I

Further the Office of Informa

directly to the Office of the M

This management stru

timely and proper achievemen

In addition the Manag

Management Internal Contro
Office manages those prog

agency s Senior Procurem

Information Officer and the 

The Deputy Managin

the Commission sATFI sys

the Deputy Managing Di

administration of this cont

designated a member of the 

Automated Data Processing 

ATFI oversight

A significant achiev

1998 was implementation of 

by the Government Performa

Additionally the Office prov

the requirements of the Sm

Fairness Act of 1996 SBR

coordination of the Coms

expanding it to include a pe

York a port area previously 

The Office continues to ove

passenger vessel operators 

aimed at ensuring that adequa

addition to supporting the dev

The Office skey ob

initiation ofall actions necess

rules effectuated under O

Commission senforcement 

vessel operatorrulemaking p

Commission sfiveyear pla

oversight of staff efforts to 

governments
Office of Informa

The Office ofInforma

administers the Commissios

IRM program under the 

amended as well as othe

responsibility for operating th

include conducting IRM man

data telecommunications de

applications coordinating 

administering IRM contracts 

Act clearances for submiss

responsible for managing the 

forms programs The Direct

Manager Forms Control Offic

Management Officer and AD

The Director of the Office a

Contracting Officer sTechnic

During fiscal year 19

Modified and 

Modified and 

system

Conducted In

meetings to 

Commission 

Coordinated 

worldwide

security iss

systems crea

Commission
Furnished a

records man

of informat

Coordinated 

training ofth

System

Upgraded th

Updated th

Information 

conducted 

Commission 

Received 

workstations

Local Area 

Coordinated 

prepared th

Commissios

the updated 

In addition to imp

mentioned above major in

1 providing guidance for 

Intranet site 2 finalizing 

management schedule to 

Administration to include a

Locator Service GILS r

page 4 upgrading hardwa

servers 5 conducting an a

6maintaining liaison with t

that FMC s GILS entries re

administrative support to age
8 evaluating commercial o

Y2K compliance and for C

support and assistance for prog

tariff systems and 10 provid

the electronic filing of service 

G BUREAU O

AND AGREEM

1 General

The primary function o

administer programs related to 

common carriers by water unde

Bureau smajor program activit

Administering 

programs to 

competitive co

each major 

Commission 

conditions em

affecting wate

Conducting s

activity

administration

in are

Developing e

support of 

responsibilitie

Providing exp

in formal pr

unfair foreign 

Processing an

marine termin
2 Monitoring

The goal oftheBurs

carriers operating in USo

statutory standards and Co

Bureau administers a var

research efforts designed to 

conditions emerging com

service activities

For a description o

fiscal year 1998 see Sectio

3 General Econom

In addition to resear

monitoring programs the B

variety ofCommission initia

Bureau economists prepare 

and cases of unfair shippin

Act and the FSPA They 

senior agency officials

Key projects the B

included 1 profiles of the 

contained in the informati

which examined the use of 

3 an examination of s

agreements 4 an updated 

activities and individual co

rates and contract provisio

transatlantic trade 6 an u

database including a compe

US Oceanborne Trades 7 

agreement parties seeking r
agreement reporting requireme

No 97 07 Possible UnfiledAg

Marine Company Ltd and Me

Docket No 9708 Possible Un

Maersk Line PO Nedlloyd 

9 an analysis of a major a

monitoring

10 classification

report requirements

of agreeme

complaints of shippers regard

Northwest trade with Russia 

reports on the activities ofcontr

charged by a major controlled 

conditions in the Brazil trade 

agreements database 16 a 

17 conducting semiann

AgreementFMC meetings to d

activities 18 preparation o

agency officials 19 prepar

Shipowners Forum 20 an an

21 refinement of an automa

information

agreement reporting

submitted

requireme

in c

submissions under the Cs 

requirements

4 Types of Agreeme

a Conference an

Conference agreements 

agreement and establishment 

groups of ocean common car

limited to a geographical ar

agreements are between two o
shared administration or p

common interest

During fiscal year 

99 conference and interc

modifications to existing a

there were 34 conferenc

agreements on file at the C

b Pooling and 

Pooling agreement

carriers in a given trade pro

of cargo or revenues or bot

through stabilizing compet

set forth sailing requirem

improving overall service e

to formalize nationalflag c

the governments ofreciproc

laws import quotas or oth

There were 8 poolin

the end of the fiscal year

c Space Cha

Space charter agree

space or container slots 

operators Sailing agreeme

parties sailing schedules 

vessels and the space o

agreements are able to pro

operating costs These agre

exchange equipment A 

agreements also have incl

within the scope of their ag
During fiscal year 199

charter and sailing agreements 

fiscal year there were 94 space 

file

d Joint Service A

Parties to joint service 

under a single name in a spec

issues its own bills of lading an

entity

Three joint service agre

1998 Eighteen joint service 

conclusion of the fiscal year

e Cooperative W

Cooperative working a

from discussion agreements wh

competitively sensitive trade 

operational undertakings that d

agreement categories This ca

discussion agreements

Carriers filed 108 CWA

year 1998 There were 118 CW

f Marine Termin

Marine terminals op

entities provide facilities serv

cargo and passengers between 

receipt and delivery of cargo 

Bureau is responsible for rev

related to the marine terminal i

1
During fiscal year 

agreements relating to p

facilities Certain terminal 

under Commission rules 

terminal agreements from 

1984 Act Terminal agre

processed under applicable 

fiscal year 570 termina

Commi ssion

The number of m

decreased drastically since 

regulatory burden on the 

terminal lease agreement

Commission was receiving 

a year In fiscal year 1998 

agreements

5 Overview of Ag

In fiscal year 199

including modifications to 

from the previous fiscal ye

prior years The Burea

modifications to existing 

Appendix C contains a 

categories for the fiscal ye

At the end of fisca

carrier agreements and 570 

provides a breakdown of v
6 Future Plans and P

The Bureau s overall 

systematic oversight of carrier a

analyzing market share comm

carriers in agreements pursua

requirements reviewing agr

monitoring current developme

publicly available sources oftra

employed to assess the impact 

order to monitor developme

agreements in the foreign trade

or OSRA

The Bureau also will co

economic testimony in formal 

proceedings under section 19 o

analyses and recommendations 

orders rulemakings including 

and major rule and small bus

effectiveness analyses of new

whether they are likely to raise 

sections 5 6g and 10 of the 

policy questions prepare recom

more complex agreements and 

issues and process other agreem

delegated by the Commission

1

II BUREAU 

CERTIFICATIO

1 General

The Bureau of Tari

responsible for the review of 

conferences of such carriers a

filed by carriers and confere

appropriate evidence of finan

ocean freight forwarders a

operators ofpassenger vessels 

these responsibilities the Bure

Reviews and 

tariff filings r

to the Comms

Ensures that s

are not subject

discriminatory 

in the USfor

Approves or 

applications i

tariff filing ru

Administers t

program by s

reviewing fin

financial resp

Processes ser

publications f
conference

intent to 

provisions 

regulation

Prepares re

clerical or 

terms of se

Licenses oc

Certifies o

vessels in US

responsibi

satisfy any 

of voyages 

other perso

ATFI

Assists

syste

in t

administra

contract es

As part of its progra

Initiates re

proceedings 

with other o

Cooperates 

with

regulatory

regard

Maintains s

the Regulat

names add
and other per

Commission 

Information concerni

administers is available to the 

the Commission shome pa

information are the regulation

under 46 CFR Part 510 the 

under 46 CFR Part 514 pas

requirements under 46 CF

requirements under 46 CFR 

requirements for NVOCCs u

electronic downloadable ver

ofthe Bureau sregulatory pro

eg the freight forwarder ap

and the application for certifi

In fiscal year 199

Commission sefforts toward 

Debt Collection Improvemen

whose purpose is to maximize 

to the Federal Government

2 Foreign Commer

a Foreign Tar

Section 8 of the 1984 

common carriers to file tariff

and practices for transport

commerce of the US Sectio

authority to regulate rate le

carriers However the Burea

matter which fails to com

statutory requirements The
fulfill the Commission sob

and discriminatory practice

During fiscal year 1

complete tariffs from carrie

foreign commerce Additio

can be found in the ATFI s

Bureau also processed 329 

including five controlled ca

deviate from the statutory 

Commission stariff filing re

b Service Con

Section 8cofthe 19

that ocean common carrie

operating in the foreign c

confidential service contr

associations A concise state

contract is publicly available 

The essential terms of any 

similarly situated shippers 

filing

Service contracts off

tariff terms Their flexib

transportation services to a

operational needs During f

essential terms publication

33812 amendments The 

contracts in fiscal year 199

received 4944 more service 

year 1997 The service contr

shippers 25 conferences an

Ofthese contracts 168 contr

associations
c

Controlled Ca

A controlled carrier i

operating assets are directly or 

government under whose regis

are operated Section 9 of th

provides that no controlled ca

its tariffs filed with the Comm

and reasonable nor may any s

or unreasonable classification

In addition such rates charges 

a controlled carrier may no

Commission become effective 

of filing with the Commissio

include rates of controlled c

entitled by a treaty of the 

treatment

The Bureau monitors th

assure that the required notic

given During fiscal year 1998 

for special permission from 

March 27 1998 the Commi

China Ocean Shipping Grou

exemption from the 30day n

carriers to reduce rates to meet 

ocean common carriers Petitio

Shipping Group Company fo

9c ofthe Shipping Act of 19

1998 did not exercise the a

Order
d Common C

Program

Every common carrie

the US and licensed oce

section 15bof the 1984 Ac

Part 582 to file a sworn Certif

to Combat Rebating in the F

This certification is to be file

on or before December 31 of 

is to be signed by the Chief E

or ocean freight forwarder 

CFR 582 1bprovide that f

may result in a civil penalty 

continues Effective Octobe

pursuant to the Federal Civi

1990 Pub L No 101 410 

addition to the civil penalty p

provide upon 45 days noti

those carriers and the susp

freight forwarders who fail t

initial tarifffiling or applicatio

that does not include an anti 

Part 582 is returned Carriers 

their initial certification or 

certification form directly from 

A program supported 

in place to ensure that comm

their certifications Pursu

suspension which appeared i

1997 165 tariffs were cancele

suspended for failure to file a

the previous fiscal year The 

Bureau efforts to notify affe

4750 antirebate certificatio
to be renewed during fiscal yea

certifications were filed by 

registering with the Commissi

e NVOCC Finan

Section 23 of the 1984 

an NVOCC operating in the fo

bond insurance or other suret

The Commission sregulati

responsibility in the amount 

responsibility obtained pursuan

claims arising from transpo

assessed by the Commission p

Under this program approxim

policy are currently on file T

inquiries on surety bond matte

3 Domestic Commer

a

Domestic Tarif

The regulatory respo

commerce was transferred to 

pursuant to the ICC Terminati

109 Stat 803 1995 The FM

provides for tariffs under the ju

filed in the Commission sAT

administrative control in supp

all domestic trade tariffs file

provides the STB with advice 

system ATFI administrative ch

affect domestic offshore tariff 
b Marine Term

The Commission is 

related to the marine termin

facilities services and labo

entities in connection with 

shippers and consignees an

and ocean carriers The Bu

tariffs along with numerou

ATFI system during the fisc

4 Passenger Vesse

The Commission adm

89777 46USC 817d a

Commission sregulations 

Protection ofthe Public Pu

to present the Commission w

to indemnify passengers a

nonperformance of transpor

stateroom accommodations 

passengers at USports

Upon the submissio

responsibility in accordance 

Commission issues a Cert

Indemnification of Pas

Transportation Upon the 

accordance with Subpart B o

Certificate ofFinancial Res

Death or Injury to Passenge

program now encompasses a

have evidence of financial 

310 million for nonperform

The certificates issued pursu

Customs clearance ofthousa
During fiscal year 1998 the C

for passenger vessel certificate

certificates and 49 performance 

to passenger vessel applicants

The Bureau was involv

Rulemaking aimed at protecti

deposits and prepaid fares 

Responsibility Requirementsfo

At the end of the fiscal yea

reviewed for this proceeding

During fiscal year 19

arising from a Chapter 11 bank

line which affected thousands o

under Pub L No 89777 are p

underwriter issuer

5 Freight Forwarder

The Commission sre

forwarding industry are found 

freight forwarders are persons 

shippers as export department

operate in the export commerce 

transportation of cargo by co

paperwork legal requiremen

incidentals related to the shipm

receive a fee from the exporte

well as compensation from the 

to carry the cargo

During fiscal year 19

applications were received 

approved 241 applications 

returned and 20 applications w
licenses were issued while 

the fiscal year2058 licens

Commission sjurisdiction 

revised form FMC18Appli

Forwarder The streamlined 

financial data and reduced 

burden from 18 hours to 2 h

The Commission co

National Customs Brokers a

exam as one factor in dec

experience test for licen

Commission sliaison and a

with its Certified Ocean For

6 Automated Data

a ATFI

ATFI a computer

efficiency reduce processing 

electronic filing processing 

carrier tariffs marine termina

and amendments thereto T

conferences with greater fle

offerings by streamlining the 

offerings with the Commiss

Act The Commission activ

1993 Through the use of th

a paperless tariffenvironm

were 4778 effective tariffs i

of tariff objects filed in the 
b Other Database

The Bureau maintains 

systems other than its ATFI 

Contract System 2 Regula

System 4 Ocean Freight Forw

System The Service Contract 

contract

staff since

data

it is

some

made

of

confiden

which is 

Index assigns a discrete numb

regulates and contains among 

number trade name of the pe

Microfiche System provides a m

amendments which have been 

Forwarder System contains cert

including surety bond inform

provides for document storage 

contracts These databases 

Commission sprograms Ce

databases is also available to th

7 Rulemaking and D

The Bureau recommend

rulemakings and Commission 

year 1998 the Bureau participa

Financial Responsi

Nonperformance of Trans

In Docket No 9406 

Notice of Proposed Rulemaki

passengers deposits and prepai

comments filed to the proposed 

analysis

1
Rose International I

International et al D

The Bureau respon

Port Restrictions and 

Trade Docket No 96

The Bureau provide

Simplification ofServ

Docket No 9723

The Bureau contrib

which became effective D

obsolete requirement for s

Update of Existing a

Service Fees Docket 

The Bureau contrib

ATFI and Bureau provided 

Hual AS Service C

Arrangements with Oc

No 9815

The Bureau provide

AS formerly Hoegh Uglan

of the 1984 Act
Petition No P198 Petiti

Group Companyfor a Lim

9cofthe Shipping Act o

The Bureau contribute

granting this petition and is re

charges filed pursuant to the au

Fact Finding Investigati

Carrier Practices in the T

The Bureau conducted t

this investigation

I BUREAU OF 

The Bureau ofEnforce

prosecutorial arm of the Comm

as trial attorneys in formal pro

of the 1984 Act and in inves

Bureau attorneys serve as legal 

other bureaus and also may b

nonadjudicatory fact finding p

other formal proceedings in ord

and to advise the Managing D

Bureau also participates in the d

regulations On occasion unde

attorneys from the Bureau may 

agency litigation to which the 

Through investigative 

conducts investigations into the 

NVOCCs freight forwarders s

persons to ensure compliance 

administered by the Commiss

1 service contract reviews to d

statutes and regulations 2revi

compliance with tariff and bon

and routine compliance checks 

to determine whether their o

requirements 4 audits of pas

financial protection of cruise pa

surveys to support Commiss

conducted into alleged violatio

regulations administered by 

rebating misdescriptions or m

unified agreements abuses of a

forwarding untariffed cargo 

passenger vessel operations an
such as failure of carriers or 

obligations resulting in carg

The Commission 

Miami New Orleans Ne

representative based in eac

serve other major port citie

respective areas Coverag

responsibility of the Bures

1998 when a permanent 

established In addition to 

area representatives rep

jurisdictions provide liai

maritime industry and th

intelligence ofregulatory s

Liaison activities involve 

government agencies prov

Commission policy to the 

handling informal compla

The Bureau prepare

shipping statutes and Com

and settle civil penalty de

settlement is not reached 

formal Commission proce

the assessment of civil pe

conjunction with other bur

During fiscal year 1

and prosecution ofmalprac

misdescriptions decreased 

unlawful equipment subs

became a new focus ofthes

America were also th

investigations The pract

have already resulted in 
include various forms o

misdescription ofcommoditie

as well as carriage of cargo 

NVOCCs Most of these mal

compromise settlements of c

of several foreignbased N

common carrier have required 

proceedings in order to pursu

eg Docket No 9717 P

Violations of Section 10a

penalty of 797 500 assess

Service Inc Possible Violat

Act of 1984 pending

In theUSNorthEuro

closely with the Bureau of E

prosecuting possible unified 

Possible Unfiled Agreement 

Company Ltd and Mediterr

No 9708Possible UnifiedA

Line PONedlloyd Limited 

The cooperation 

representatives and Custom

investigative information con

and now includes the port 

representatives are colocated 

ocean common carrier sman

Commission personnel to qu

possible violations of the 1

cooperation in the import and 

In fiscal year 1998 th

Revised Audit Program 

headquarters primarily by 

licensed ocean freight forward
statutory requirements and 

regulations This program 

freight forwarders and NVO

Act and Commission regula

to include review of entiti

operating common carriers w

During fiscal year 

Commission sprogram for r

from small businesses and a p

penalties in certain cases in

SBREFA Both programs w

upon notice to the public 

December 24 1997 The Co

penalties collected from sm

91000 and waived a total o

At the beginning of f

were pending final resolution 

37 new enforcement actio

compromised and settled a

formal proceedings Twenty 

resolution at fiscal year send

At the start of fiscal y

formal proceedings During 

in 12 new formal proceedings 

participated were completed 

were pending at the end of th

At the beginning offis

legal advice pending in the Bu

were received during the fisca

completed Accordingly 85 le

Bureau on September 30 199
3

As a result ofenforcem

869 005 96in civil penaltie

reached with many different 

cruise operators shippers fo

trades Civil penalty collectio

III Monitoring and Enforcem

In fiscal year 1999 

fraudulent and anticompetitiv

and the implementation of ne

resulting from the impleme

resources permit The additio

York New

enforcement monitoring

Jersey port

effo

are

J BUREAU OF A

Office of 

The Bureau of A

administrative support to the pro

The Bureau interprets govern

administers these in a manner 

including those involving p

financial management and 

recommendations collaborati

Commission as warranted fo

policies and standards and rule

program activities The Direct

administration and coordination 

Office of Admi

Office of Budge

Office of Perso

Many ofthe functions a

in the narratives for these Offic

The Director serves as 

challenging barriers to comp

practices

representative

as specified

as Principal

in the FA

M

Agency Council SAC A

Director provides program ov

financial management resp

compliance with the Financial 

and the Debt Collection Improv

The Commission sTrai

the Director The Training Off
assistance and career coun

technical assistance to the 

Officer also serves as a m

FMC employees took a

programs through SAC 

Education Institute Comp

by statute were also offere

The Office of the 

directing and administerin

Program which includes a

program to ensure effect

12958

1 Office of Admi

a General O

The Office ofAdm

a variety of management s

administrative support to 

Commission

Contracting Officer

The Direc

The Office ssup

telecommunications pro

services property manag

copying management ma

designs facilities and eq

The Office smajor functio

equipment

mission and

and

to

services

formulat

r

methods governing the use 

compliance with the appli
b Achievements

During fiscal yea

Continued to p

assistance in sup

Revised Commis

Commission O

Management

Arranged for th

FMC s36th Ann

Implemented t

program at the 

IT equipment t

profit organizat

Established a pu

the FMC and 

Merchant Purch

system througho

Reevaluated the 

program and up

improve copy qu

Completed the i

document imagi

Completed adm

FMC Area Rep

City

1
Upgraded 

Executon

complianc

Procured 

Initiated t

the Depa

NationsBa

card servic

c

Future Pla

In fiscal year 19

following 1 fully imple

of the automated procurem

Commission

electronic commerce

2 continu

pro

3 develop andor reestab

the Office of Thrift Supe

and administrative suppor

the new GSA smart car

purchase and travel needs 

to address any Y2K compl

and facilities are complia

approaches to advisory an

2 Office of Budg

a General O

The Office ofBudg

the Commission sfinanci

accounting activities fee 

ensures that Commiss
appropriated funds are proper d

for submission to Congress an

internal controls systems that pro

administers the Commission stra

as well as the Commission sImp

official passports and assists in 

user fees

b Achievements

During fiscal year 1998 

Collected and d

and fine and pe

Prepared fiscal 

estimates coo

justifications an

Congressional 

budget to OMB 

Congressional b

Prepared a varie

Civil Monetary 

Asset Managem

Cash Flow De

Report on First 

FY 1997 GSA 

Report and t

Personnel Costs 

OPM

Provided manag

on workyears f

1
Participate

implemen

Improveme

fees to be e

c Future Pla

Financial managem

redesign and refinement o

The Office will 1 contin

automate the processing 

payments in conjunction w

and OIRM 2review proc

and 3 continue to pur

efficiency in budget 

implementation of the Deb

3 Office of Perso

a General O

The Office of Per

personnel management 

placement position cla

occupational safety and 

relations workforce disc

awards employee bene

personnel security

b Achieveme

During fiscal year 

Updated 

Compress
guidelines for e

procedures and 

legislative and 

programs

Conducted the F

Program and T

including spons

Benefits Fair S

Service Days du

each month with 

Conducted Fede

Transfer Open 

Coordinated a

initiatives and 

inquiries regard

programs

Coordinated wi

personnel data 

requirements w

obtained special

staff

Monitored and 

Program contra

very successful 

Coordinated th

Campaign effo

Advised sup

responsibilities 

performance 

milestones and 

to supervisors 

1
members c

process 

Executive 

prepared s

Conducted 

recruitmen

staffing of 

Conducted 

program c

in connecti

and bega

revisions to 

Prepared 

reports inc

Program 

racenation

Luevano D

for all affirm

covering in

under age

assistance 

reserve m

executive 

verification 

annual Oc

report of 

program 

transferred 

fiscal year 

friendly in
c Future Plans

In fiscal year 1999 the O

agency management and staff o

maintenance of a sound an

2 implement pertinent portion

performance plans and 3 con

of pertinent Commission Ord

initiatives and regulatory chang

1

APPE

APP

ORGANIZ

a

a41 IL p

0O re

y40W O

0

W

W W

O cn

W

U201 U

0

WF2

OF

U

w41 ON
Formal Proceedings

AP

COMMISS

Fis

Decisions 

Discontinuances Dism

Initial Decisions Not Re

Rulemakings Final Rul

Total 

Special Dockets 

Informal Dockets 
APP

AGREEMENT F

Fisca

Agreements Filed in FY 1998

including modifications

Carrier 

Terminal 

Total 

Agreements Processing Categorie

FortyFive Day Review 

Shortened Review 

ExemptEffective Upon Filing 

Rejection of Filing 

Formal Extension of Review Period 

Terminations 

Not Subject 

Withdrawals 

Total 

Carrier Reports Submitted for Co

Minutes of Meetings and Ad Hoc R

Monitoring Reports 

Total 

Agreements on File as of Septemb

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Space Chartering Sailing 

Cooperative Working Agency E

Terminal 

Total 
TARIFF AND SER

AND SPECIAL PE

Fis

Electronic Tariffs in Effe

Electronic TariffFilings

Tariffs new 

Rules 

Commodity Descr

TariffLine Items 

Inland Tables 

TariffRecords 

Organization Rec

Essential Terms Documen

New Service Cont

Service Contract A

Special Permission Applic

AP

Granted 

Denied 

Withdrawn 

Includes essential terms pub
APPE

CIVIL PENALT

Fiscal 

A M Independent Line Inc 

Big Save International Co 

Cross Water Line Inc 

De Lourdes Corporation 

Everfreight Int NVOCC 

Exbo Shipping Company 

Far Eastern Shipping Co 

Global Asian Limited 

Japanese Lines 

Kenwa Shipping Co Ltd 

Laparkan Trading Ltd 

Mediterranean Shipping Co 

Nippon Yusen Kaisha 

Pacon Express Inc 

Penbroke Marine Services 

Portman Square Ltd 

Pum Yang Shipping Co Ltd 

Savoy Shipping Company Inc 

Seabridge International 

Shipair Express HK 

Shipman Int lTaiwan Ltd 

Sigma Express Inc 

Sims Waters Associates 

Sinotrans International 

Solex Express Inc 

Topocean Consolidation Svs 

Total Port Clearance of FL 

Transcargo Int l 

Translink Shipping Inc 

Transport Partner USA Inc 

Versatile International 

Total Civil Penalties Collected 

1
AP

INV

Fis

InvestigationsSpecial 

AuditsCompliance Ch

Compliance Che

Cruise Audits

VOCC Audits

InvestigationsSpecial 

AuditsCompliance Ch

Compliance Ch

Cruise Audits

VOCC Audits

VOCC Audit program was 
STATEMENT OF 

OBLIGATIONS A

THE FISCAL 

SEPTEMB

APPROPRIATIONS

APPE

Public Law 105119 For necessary ex

as authorized by section 201 dofthe 

46 AppUSC1111 including serv

passenger motor vehicles authorized 

allowances therefor as authorized by 

exceed 2000 shall be available for off

OBLIGATIONS AND UNOBL

Net obligations for salaries and expens

ended September 30 1998 

STATEMENT OF RECEIPTS 

Fund of the Treasury for the Fiscal Ye

Publications and reproductions

Fees and Vessel Certificatio

and Freight Forwarder Appl

Fines and penalties

Total general fund receipts