Federal Maritime Commission

FY 2011 Budget Estimates submitted to the Appropriations Committees

FEDERAL MARITIME COMMISSION 

BUDGET ESTIMATES 

Fiscal Year 2011 

SUBMITTED TO THE APPROPRIATIONS COMMITTEES 

FEBRUARY 1, 2010 
 

   

             

 

 

Federal Maritime Commission

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

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

 Justification Materials: 

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

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

 Fiscal Year 2011 Policy and Funding Priorities .................................. 7 

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

 FMC Mission ..................................................................................... 19 

 FTE and Positions by Program .......................................................... 20 

 Obligations by Object Class ................................................................ 21 

 Average Salary and Grade .................................................................. 22 

 Request by Strategic Goal and Program ............................................ 23 

 Summary of Changes ......................................................................... 24 

 Appropriation Language .................................................................... 25 

 FY 2011 Budget Request by Strategic Goal ....................................... 26 

 FY 2011 Budget Request by Program/FTE Request by Program ...... 27 

 Relationship of Obligations to Outlays ............................................... 28 

Budget Justifications:

 Formal Proceedings Program .............................................................. 29 

 Office of the Chairman .................................................................. 30 

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

 Office of the Secretary ................................................................... 32 

Consumer Affairs and Dispute Resolution Services ................ 35 

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

 Office of the General Counsel ....................................................... 39 

 Designated Agency Ethics Official........................................... 48 

 Office of Administrative Law Judges ............................................ 49 

FY 2011 Budget Estimates submitted to the Appropriations Committees
   

             

Federal Maritime Commission

 Equal Employment Opportunity Program .......................................... 51 

 Inspector General Program ................................................................. 53 

 Operations Program ............................................................................ 56 

 Office of the Director................................................................. 56 

 Bureau of Trade Analysis .......................................................... 60 

o Office of Service Contracts and Tariffs .............................. 62 

o Office of Economics and Competition Analysis ................. 64 

o Office of Agreements .......................................................... 66 

 Bureau of Certification and Licensing....................................... 69 

o Office of Passenger Vessels and Information Processing ... 71 

o Office of Transportation Intermediaries .............................. 73 

 Bureau of Enforcement .............................................................. 76 

 Administration Program...................................................................... 79 

 Office of the Director .................................................................. 79 

 Office of Information Technology .............................................. 81 

 Office of Human Resources ........................................................ 83 

 Office of Financial Management ................................................ 85 

 Office of Management Services ................................................. 87 

 Strategic Goals .................................................................................... 89 

 Factors Affecting the Achievement of Goals ................................ 89 

 Strategic Goal Number 1 ............................................................... 91 

 Strategic Goal Number 2 ............................................................... 95 

 Strategic Goal Number 3 ............................................................. 101 

 Appendix A – Workload Statistics ................................................... 104 

 Appendix B – Inspector General Budget Certification ..................... 110 

 Appendix C – Employee Satisfaction and Wellness ....................... 112 

FY 2011 Budget Estimates submitted to the Appropriations Committees
 

 

   

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission

Alphabetical Listing of Abbreviations 

-#-

1920 Act Section 19 of the Merchant Marine Act, 1920 

1978 Act Inspector General Act of 1978 

1984 Act Shipping Act of 1984 

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

ADR Alternative Dispute Resolution 

AED Automatic External Defibrillator

 agency Federal Maritime Commission 

ALJ Administrative Law Judge 

APM APM Terminals North America, Inc. 

AR Area Representative 

-BBCL Bureau of Certification and Licensing 

BOE Bureau of Enforcement 

BPD Bureau of Public Debt 

BSC Building Security Committee 

BTA Bureau of Trade Analysis 

-CCADRS Consumer Affairs and Dispute Resolution Services 

CBP U.S. Bureau of Customs and Border Protection 

CCIG Council of Counsels to Inspectors General 

CFR Code of Federal Regulations 

CIGIE Council of Inspectors General on Integrity and Efficiency 

CII Container Innovations, Inc. 

CIO Chief Information Officer 

COOP Continuity of Operations 

CTP Clean Truck Program 

-DDCIA Debt Collection Improvement Act of 1996 

DHS Department of Homeland Security 

-EEC European Commission 

ECC Exemption Council Regulation 

EEO Equal Employment Opportunity 

e-library Electronic Library 

eOPF Electronic Official Personnel Folder 

EU European Union 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 1
 

 

 

   

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Maritime Commission

-FFAEC Federal Audit Executive Council 

FISMA Federal Information Security Management Act of 2002 

FMC Federal Maritime Commission 

FOIA Freedom of Information Act 

FSPA Foreign Shipping Practices Act of 1988 

FTE Full-time Equivalent 

FY Fiscal Year 

-G-

 Global Link Global Link Logistics, Inc. 

GPEA Government Paperwork Elimination Act 

GSA Government Services Administration 

-HHSPD-12 Homeland Security Presidential Directive 12 

HQ Headquarters (FMC) 

HR Human Resources 

-IIAG Interagency Agreement 

IG Inspector General 

Intership International Shipping Agency, Inc. 

IT Information Technology 

-LLandstar Landstar Global Logistics, Inc. 

LMC Licensed Motor Carrier 

-MMaher Maher Terminals, LLC

 MD-715 Management Directive 715 

MD&A Management’s Discussion and Analysis 

MOU Memorandum of Understanding 

MTO Marine Terminal Operator 

-NNEPA National Environmental Policy Act of 1969 

NFC National Finance Center 

NRDC National Resources Defense Council, Inc. 

NSA NVOCC Service Arrangement 

NVOCC Non-Vessel-Operating Common Carrier 

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Federal Maritime Commission

-OOA Office of Administration 

OAGR Office of Agreements 

OALJ Office of Administrative Law Judges 

OECA Office of Economics & Competition Analysis 

OFF Ocean Freight Forwarder 

OFM Office of Financial Management 

OGC Office of General Counsel 

OHR Office of Human Resources 

OIG Office of the Inspector General 

OIT Office of Information Technology 

OMB Office of Management and Budget 

OMS Office of Management Services 

OPM Office of Personnel Management 

OPs Office of Operations 

OS Office of the Secretary 

OSCT Office of Service Contracts & Tariffs 

OSRA Ocean Shipping Reform Act of 1998 

OTI Ocean Transportation Intermediary 

-PPAR Performance and Accountability Report 

PANYNJ Port Authority of New York and New Jersey 

PIERS Port Import Export Reporting Service 

PIO Performance Improvement Officer 

P.L. Public Law 

Port Port of Los Angeles 

PRPA Puerto Rico Ports Authority 

PVO Passenger Vessel Operator 

-QQI Qualifying Individual 

-R-

 Reform Act Inspector General Reform Act of 2008 

RPI Regulated Persons Index 

-SSAC Small Agency Council 

SES Senior Executive Service 

SERVCON Service Contract Filing System 

SERVCON CAT Service Contracts Analysis Tool 

Shipping Act Shipping Act of 1984 

SWAT Rapid Response 

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Federal Maritime Commission

-TTeam Ocean Team Ocean Services, Inc. 

the Ports The Port of Los Angeles and the Port of Long Beach 

Tober Tober Group, Inc. 

TSA Transpacific Stabilization Agreement 

-UUK United Kingdom 

UPR Unearned Passenger Revenue 

URL Internet Location 

U.S. United States of America 

U.S.C. United States Code 

-VVOCC Vessel-Operating Common Carrier 

VoIP Voice over Internet Protocol 

VSCG Voluntary Service Contract Guidelines 

WWIGs Within-grade Increases 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 4
   

             

 

Federal Maritime Commission

FMC Core Functions 

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

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

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

the Foreign Shipping Practices Act of 1988 (FSPA); and Public Law (P. L.) 89-777 (passenger 

vessel certification). The Commission: monitors the activities of ocean common carriers, 

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

(non-vessel-operating common carriers and ocean freight forwarders) who operate in the U.S. 

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

monitoring and enforcement program designed to assist regulated entities in achieving 

compliance and to detect and appropriately remedy malpractices and violations of the prohibited 

acts set forth in section 10 of the 1984 Act; monitors the laws and practices of foreign 

governments which could have a discriminatory or otherwise adverse impact on shipping 

conditions in U.S. trades, and imposes remedial action, as appropriate, pursuant to section 19 of 

the 1920 Act or FSPA; enforces special regulatory requirements applicable to carriers owned or 

controlled by foreign governments; processes and reviews agreements, service contracts, and 

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

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

required by OSRA. The Commission also issues licenses to qualified ocean transportation 

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

financial responsibility, and ensures that passenger vessel operators (PVOs) demonstrate 

adequate financial responsibility in case of nonperformance of voyages or injury to passengers. 

FMC Organization 

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

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

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

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

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

Secretary (OS), including the Library and Office of Consumer Affairs and Dispute Resolution 

Services (CADRS); Office of Administrative Law Judges (OALJ); Office of Equal Employment 

Opportunity (EEO); Office of the Inspector General (OIG); Office of Operations (OPs), 

including the Bureaus of Certification and Licensing (BCL), Enforcement (BOE), and Trade 

Analysis (BTA); and Office of Administration (OA), including the Offices of Financial 

Management (OFM), Human Resources (OHR), Information Technology (OIT), and 

Management Services (OMS). The majority of FMC personnel are located in Washington, D.C., 

with Area Representatives (ARs) in New York, New Orleans, Los Angeles, Seattle, Houston and 

South Florida. Chairman Lidinsky has announced a reorganization of the FMC, which was 

effective January 31, 2010. The reorganization will create administrative efficiencies for the 

agency. This budget submission does not reflect that new organization. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 5
   

             

Federal Maritime Commission

Federal Maritime Commission
 

Organization Chart
 

(January 30, 2010)
 

Office of Equal Office of the Employment Inspector General Opportunity 

Office of the 

Secretary 

Office of 

Operations 

Office of 

Administration 

Office of the 

General Counsel 

Commissioner 

(KHOURI) 

Commissioner 

(DYE) 

Chairman 

(LIDINSKY) 

Commissioner 

(BRENNAN) 

Commissioner 

(VACANT) 

Bureau of 

Certification

 and Licensing 

Bureau of 

Enforcement 

Bureau of Trade 

Analysis 

Office of 

Administrative 

Law Judges 

Office of 

Consumer Affairs 

and Dispute 

Resolution 

Services 

Area 

Representatives 

New York 

Los Angeles 

Houston 

New Orleans 

Seattle 

South Florida 

Office of Financial 

Management 

Office of Human 

Resources 

Office of 

Information 

Technology 

Office of 

Management 

Services 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 6
   

             

 

Federal Maritime Commission

Fiscal Year 20ll Policy and Funding Priorities 

In fiscal year (FY) 2011, the Commission’s policy and funding priorities center on fostering a 

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

economic growth. The FMC has a twofold policy focus in both maintaining an efficient and 

competitive international ocean transportation system and protecting the public from unlawful, 

unfair and deceptive ocean transportation practices. The accomplishment of these strategies is 

critical to the President’s goals to encourage economic growth, invest in the future, and 

responsibly govern the nation. The smooth flow of international commerce is vital to the 

national economy in both providing access to foreign markets for our exports and ensuring the 

availability of imported goods for domestic production and consumption. The ocean 

transportation regime regulated by the FMC is responsible for the movement of the greatest 

portion of the nation’s international trade in goods. That this environment continue to function 

in a smooth and orderly manner is critical to our nation’s economy. 

The agency strives to move forward in accomplishing its goals while the shipping industry and 

the shipping public grapple with the impact of the recent economic downturn. The regulatory 

scheme now in place at the FMC is under constant review and as economic conditions alter the 

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

coming fiscal years, the Commission will respond to public requests for review of regulations on 

issues such as tariff publication and the scope of regulation of the business relationships of OTIs. 

Evolving business models requiring Commission attention in the coming years are likely to 

include the increased use of MTO discussion agreements and OTI freight networks. Continued 

and enhanced emphasis on outreach to the shipping public will be key to bringing unlawful 

operators into compliance with licensing and other requirements and protecting the public from 

financial and other harm. The use of technology and public information will be paramount in all 

Commission actions, programs and interactions with the public. Web-based accessibility to 

Commission services and information will facilitate both public interaction with the agency and 

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

means for the FMC to accomplish its mission of fostering a fair, efficient and reliable 

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

practices. 

In fiscal year 2010, the Commission will be undertaking a new Green Initiative, committing the 

Commission to deliver new policy and regulatory capabilities to better incorporate 

environmental concerns as well as address the probable impacts of such concerns when they 

arise in the course of the Commission’s regulatory processes. Responsive to the environmental 

community and, more recently, to comments from White House staff and members of Congress, 

the Commission now seeks to “build in” the capacity to receive, analyze and promulgate 

regulatory actions which reflect appropriate deference to environmental needs, objectives and 

mandates. The internal “Green Group” chaired at the Commission level will meet periodically to 

review internal and external developments having environmental implications for the shipping 

and port industries. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 7
   

             

 

Federal Maritime Commission

The Commission is pursuing Information Technology (IT) initiatives to comply with governing 

IT statutes and regulations, as well as evaluating use of IT to increase productivity, particularly 

in the licensing process. To pursue this effort, we are requesting an additional IT position. We 

believe enhanced information systems are critical to identification of regulated entities, to 

information sharing with our counterparts at U.S. Bureau of Customs and Border Protection 

(CBP) and other Federal agencies, and to permitting our Area Representatives, Bureau of 

Enforcement and consumer affairs representatives timely and comprehensive access to data 

needed to address OTI practices that abuse or defraud the shipping public. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 8
   

             

 

Federal Maritime Commission

Highlights and Planned Activities Statements 

Fiscal Year 2009 Accomplishments 

In fiscal year 2009, the Commission focused on its mission to foster a fair, efficient and reliable 

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

practices. The highlighted actions capture agency activities in pursuit of this mission. 

Efficiency and Competition 

Efficiency and Competition in the Trades 

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

shipping public through its oversight authorities. Competition in the trade helps to keep rates 

lower and service offerings diverse and innovative to the benefit of the shipping public and 

ultimately American exporters and consumers. Ocean carriers and marine terminal operators are 

granted limited antitrust immunity by the Shipping Act of 1984. The FMC has the responsibility 

of guarding against possible abuse of that immunity. Amidst the global economic downturn in 

fiscal year 2009, the FMC took action to protect the industry and the public against unreasonable 

increases in transportation costs or reduction in transportation services. 

•	 To address concerns about competitive conditions in Oceania, staff collected and analyzed an 

extensive set of specific pricing, financial and operational data from carriers serving the trade 

between the U.S. and Australia/New Zealand following the issuance of an order under section 

15 of the Shipping Act. 

•	 The Transpacific Stabilization Agreement (TSA), a 14-member carrier agreement with 

substantial market share in the Asia/U.S. trades, proposed to amend the agreement to discuss 

the potential for creating a plan to jointly rationalize capacity in the nation’s largest inbound 

liner trade. To fulfill its statutory responsibility to evaluate the potential economic and 

anticompetitive impacts of the proposed amendments, the Commission requested that TSA 

and its member lines provide additional information. TSA subsequently withdrew the 

amendment. 

•	 Staff defined the parameters of a study that will examine the impact of eliminating antitrust 

immunity in the U.S.-Europe trades as a result of the repeal by the European Union (EU) of 

the block exemption [Exemption Council Regulation (ECC) No. 4056/86] for liner shipping 

conferences in the EU trades, allowing input from the shipping industry and other 

stakeholders. 

•	 The Commission initiated a formal investigation to determine whether certain practices of the 

Ports of Los Angeles and Long Beach violated the Shipping Act of 1984. Upon the motion of 

the Bureau of Enforcement, the proceeding was dismissed on August 21, 2009. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 9
   

             

Federal Maritime Commission

•	 The Commission undertook a competitive impact assessment of the Clean Trucks Program 

(CTP) devised by the Los Angeles and Long Beach Port Infrastructure and Environmental 

Programs Cooperative Working Agreement to determine whether certain elements of the 

program would likely, by a reduction in competition, produce an unreasonable reduction in 

transportation services or unreasonable increase in transportation costs. As a result of this 

assessment, by a 2-1 vote, with Commissioner Brennan dissenting, the Commission instituted 

an action pursuant to section 6(g) of the Shipping Act, seeking to enjoin those problematic 

portions of the Agreement in the U.S. District Court for the District of Columbia. On 

July 24, 2009, the Commission and the Ports filed a joint stipulation dismissing the 

proceeding. The proceeding was terminated on July 29, 2009. 

•	 The Commission affirmed a settlement agreement in Docket No. 07-01 - APM Terminals 

North America, Inc. v. Port Authority of New York and New Jersey. APM Terminals North 

America, Inc. (APM) commenced this proceeding by filing a complaint alleging that the Port 

Authority of New York and New Jersey (PANYNJ) violated the 1984 Act by failing to tender 

an additional portion of marine terminal property provided for in a lease between APM and 

the Port Authority. APM also claimed that the Port Authority’s action unlawfully preferred 

Maher Terminals, LLC (Maher), also a marine terminal operator. The presiding ALJ approved 

a settlement agreement and supplemental agreement between APM and PANYNJ, which was 

affirmed by the Commission on April 1, 2009. In so doing, the Commission rejected 

assertions by Maher seeking to block the settlement, and Maher’s claims therein have been 

consolidated within its separate complaint case (Docket 08-03). 

•	 The FMC, through the OGC, monitored the laws and practices of foreign governments and 

monitored activities in the U.S. foreign trades to address appropriately any condition which 

appeared unfavorable to U.S. shipping interests. 

•	 During fiscal year 2009, the BTA and BCL regularly briefed the Commission on the impact of 

the economic downturn on the shipping industry and consumers generally. 

•	 In fiscal year 2009, the FMC received 45,328 service contract filings and 412,570 

amendments to confidential filings from common carriers. 

Protecting the Shipping Public 

The Shipping Public 

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

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

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

formal complaints alleging violation of the Shipping Act. In fiscal year 2009, with the global 

economic downturn, the FMC observed trying conditions for the shipping industry which caused 

or had the potential to cause harm to the customers of the industry or the shipping public: 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 10
   

             

Federal Maritime Commission

•	 Throughout the year, over 725 complaints requiring dispute resolution services were received 

with regard to household goods and cargo shipments. Thirty-four new investigations were 

initiated on alleged harm to the public as a result of Shipping Act violations. Penalties of 

$843,000 were collected as a result of settlements or findings of violations of the Shipping 

Act. These collections were deposited in the U.S. Treasury general fund account. 

•	 In fiscal year 2009, a number of licensed Non-Vessel-Operating Common Carriers (NVOCCs) 

went out of business as an apparent result of the economic downturn. CADRS and the ARs 

assisted these NVOCCs and their shipper customers as they closed out businesses to ensure 

that customers received their shipments. 

•	 Through mediation, the FMC helped resolve a dispute among an ocean carrier, NVOCCs, a 

shipper and a U.S. port where oil leakage from containers posed an environmental hazard. 

CADRS helped the parties reach an agreement to fund and perform environmentally safe 

cleaning and removal of the containers. 

•	 Through its enforcement authorities, the Commission initiated actions to address and seek 

compliance for market-distorting activities such as various forms of secret rebates and 

absorptions, misdescriptions of commodities and misdeclarations of measurements, illegal 

equipment substitution, unlawful use of service contracts, as well as carriage of cargo by and 

for untariffed and unbonded NVOCCs and joint carrier activities outside the authority of 

existing agreements or pursuant to unfiled agreements. Particular emphasis was placed on 

industry service contracting activities to ensure fair trading conditions and protection of the 

public. 

•	 The agency continued investigations into the operations of unlicensed, unbonded OTIs that 

provide transportation of household goods and personal effects, including enforcement of the 

prohibition on vessel-operating common carriers (VOCCs) and licensed NVOCCs providing 

service to such unlawful operators. 

•	 The Commission worked closely with other Federal and local agencies on matters of port and 

supply chain security at most major container ports in the U.S. 

•	 The FMC denied a petition in Docket No. 08-07, Global Link Logistics, Inc. – Emergency 

Petition for Declaratory Order, Rulemaking or other Appropriate Relief in Voluntary 

Disclosure Investigation. Petitioners asked the Commission to issue a Declaratory Order, 

initiate a rulemaking or grant other appropriate relief to confirm that a common industry 

practice involving domestic inland movements is not a violation of Section 10(a)(1) of the 

Shipping Act. On June 15, 2009, the Commission issued an Order denying the Petition on 

procedural grounds. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 11
   

             

Federal Maritime Commission

•	 The FMC terminated the proposed rulemaking in Docket No. 02-15, Passenger Vessel 

Financial Responsibility. This proceeding was instituted in October 2002, and would have 

amended the Commission’s proof of passenger vessel financial responsibility regulations. The 

record in this proceeding had become stale, therefore, the Commission determined that the 

record amassed in prior years was no longer legally sufficient to sustain contemporary efforts 

to either adopt or propose new alternatives to the Commission’s financial responsibility 

requirements for PVOs. On October 28, 2009, the Commission issued an Order terminating 

the proposed rule. 

Licensing Compliance and Financial Responsibility 

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

system by identifying unlicensed operations and licensing only those OTIs with appropriate 

character and financial responsibility, and ensuring financial responsibility of cruise vessel 

operators so that in the event of nonperformance, passengers do not forfeit deposits made to the 

cruise lines. 

The application fee for an OTI license was significantly reduced for use of the electronic online 

application form. Approximately 90% of all incoming OTI applications were received through 

the electronic system in fiscal year 2009. 

•	 In fiscal year 2009, the Bureau initiated revisions to the electronic filing of the automated 

Form FMC-18, Application for an Ocean Transportation Intermediary License, to permit 

filers to complete an OTI application online, scan and attach required documents, and submit 

the application electronically. The filing system would incorporate significant security 

features for the purpose of protecting applicant data. 

•	 Over 750 new and amended OTI license applications were received in fiscal year 2009, with 

nearly 500 requests from new applicants. During the year, 414 OTI licenses were issued to 

qualified businesses. At the end of the fiscal year, more than 4,300 ocean freight forwarders 

(OFFs) and NVOCCs, both domestic and foreign, held active OTI licenses. 

•	 The FMC, both through formal presentations and informal community outreach, educated 

unlicensed and licensed OTIs in various port communities on licensing requirements and 

responsibilities. 

•	 At the close of fiscal year 2009, the Commission’s PVO program encompassed 203 vessels 

and 43 operators. Financial responsibility coverage for all operators exceeded $319 million 

for nonperformance of voyages and $637 million for casualty. By regulation, financial data 

relating to unearned passenger revenue (UPR) is confidential. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 12
   

             

 

 

 

Federal Maritime Commission

•	 During fiscal year 2009, staff completed two on-site reviews of cruise lines that established 

financial responsibility with surety bonds and guaranty. The on-site reviews confirmed the 

PVO’s compliance with reporting requirements relating to UPR and the appropriate amount of 

coverage required to ensure adequate financial responsibility. 

•	 The Commission remanded a proceeding to the ALJ in Docket No. 06-06 - EuroUSA 

Shipping, Inc., Tober Group, Inc.(Tober) and Container Innovations, Inc. – Possible 

Violations of Section 10 of the Shipping Act of 1984 and the Commission’s Regulations at 46 

C.F.R. § 515.27. This proceeding was instituted by Order of Investigation and Hearing served 

May 11, 2006, to determine whether respondents violated section 10(b) (11) of the Shipping 

Act and the Commission’s regulations at 46 CFR 515.27, by knowingly and willfully 

accepting cargo from or transporting cargo for the account of an OTI that did not have a tariff 

and a bond as required by sections 8 and 19 of the Act. The ALJ granted Tober’s Motion for 

Summary Judgment on June 12, 2008. The Commission granted BOE’s appeal of the 

summary judgment and remanded the case to the ALJ on December 18, 2008. With regard to 

Tober, the ALJ issued an Initial Decision in which he determined that it did not violate the 

Shipping Act. With regard to Container Innovations, Inc. (CII), the ALJ issued an Initial 

Decision in which he determined violations of the Shipping Act and ordered CII to pay a civil 

penalty. These decisions are pending the possible filing of exceptions to the Initial Decisions. 

With regard to EuroUSA Shipping, Inc., the ALJ approved the settlement agreement with 

BOE. This order was made administratively final on November 12, 2009. 

•	 In fiscal year 2009, the compliance audit program continued as a major focus of the BOE. 

This program, conducted from headquarters primarily by mail and telephone, reviews the 

operations of licensed OTIs to assist them in complying with the statutory requirements and 

the Commission’s rules and regulations. The audit program also reviews entities holding 

themselves out as VOCCs, but with no indication of actual vessel operations. 

Public Information 

•	 The FMC makes information available daily concerning its work and how it regulates the 

shipping industry and is focused on increasing accessibility to the public and transparency in 

its operations. 

•	 The Commission met publicly on a regular basis in fiscal year 2009 for discussion and action 

on industry and administrative matters. 

•	 The FMC now provides carrier service contract statistics through its website. This 

improvement provides for greater public awareness and real-time access to the quantity and 

type of filings, although the filings themselves are confidential by statute. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 13
   

             

 

Federal Maritime Commission

Stewardship of Resources 

Technology 

The Commission strives to use new information technology (IT) as means of improving both 

agency business processes and the public’s ability to conduct business with the agency. In fiscal 

year 2009, the agency, in considering the many recently introduced government-wide initiatives, 

identified new technology which will be incorporated into its business processes. This 

technology investment will lead to a more efficient and transparent government. 

•	 The OIT worked with other agency components to ensure the continuing operation of 

electronically available forms for public use, such as the FMC-18, Application for an Ocean 

Transportation Intermediary License, and to plan for future improvements and enhancements 

to help the public communicate more expeditiously with the agency. 

•	 To improve communication of information at the agency’s public hearings, the headquarters 

Hearing Room was upgraded and outfitted with new communication technology. 

•	 To enable the agency to continue to serve the public fully in the event of an emergency, OIT 

upgraded the Continuity of Operations (COOP) systems located in Germantown, MD. 

•	 With the participation of the program bureaus, OIT continued a study of current databases to 

begin the process of creating an enterprise-wide architecture of the agency’s databases. 

Resources 

Strategic management of human resources, property management, financial and procurement 

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

programmatic goals. In fiscal year 2009, the FMC strove to make the most productive use of the 

resources at hand and was commended for those efforts. 

•	 The Commission, through its performance and budget processes, linked planning, financial 

management, and performance. 

•	 The FMC received the 2009 Most Improved Small Federal Agency Award, presented at a 

ceremony hosted by the Partnership for Public Service to recognize the 2009 Best Places to 

Work in the Federal Government. The agency ranked first among 31 other small agencies in 

the Best-in-Class scored areas of Strategic Management, Pay and Benefits, Performance 

Based Rewards and Advancement, Training and Development, Support for Diversity, ranked 

second in the areas of Teamwork and Effective Leadership, and ranked third in Family 

Friendly Culture and Benefits and Work/Life Balance. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 14
   

             

Federal Maritime Commission

•	 The agency received an unqualified opinion in its FY 2009 Financial Statement Audit. The 

FMC prepared the Federal Activities Inventory Reform Act report, and the Performance 

Accountability Report (PAR) which included the Management’s Discussion and Analysis 

(MD&A) report and the Federal Managers Financial Integrity Act report (FMFIA). The staff 

continued to update internal Commission issuances and Standard Operating Procedures for a 

variety of programs and activities, and guided Commission efforts to comply with the 

Government Paperwork Elimination Act (GPEA) and Federal Information Security 

Management Act (FISMA). 

•	 The Commission finalized its Human Capital, Workforce Accountability, and Succession 

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

Capital Assessment and Accountability Framework. 

Activities Planned for Fiscal Years 2010 and 2011 

Efficiency and Competition 

Efficiency and Competition in the Trades 

•	 Staff will complete major sections of the Commission’s impact study on the repeal of the 

European Union’s block exemption for liner shipping conferences, especially those sections 

that focus on the first full year after the repeal. 

•	 Developments on the European Commission’s (EC) review of its block exemption regulations 

for consortia agreements between carriers [Commission Regulation No. 823/2000] will be 

closely monitored. 

•	 Staff will improve the Commission’s agreements monitoring program, designed to address 

such supply-chain and operational issues as port congestion, security, air pollution and 

environmental concerns that affect local communities and the industry. 

Protecting the Shipping Public 

The Shipping Public 

•	 Through various programs, staff will build upon the agency’s outreach efforts and raise public 

awareness of its regulations, consumer protections and services through public presentations 

and use of various media. 

. 

•	 Staff will emphasize the OTI monitoring and audit programs. The enforcement and 

monitoring activities will include focusing on the unlawful operations of household goods 

carriers - both licensed and unlicensed - which have increasingly caused economic harm to 

individual consumers, as well as competitive injury to those carriers operating lawfully. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 15
   

             

Federal Maritime Commission

•	 The Commission will use investigative, liaison and outreach functions to continue to increase 

protection of the shipping public from unlawful practices. Additionally, the Commission will 

continue to pursue harmful, market-distorting, fraudulent, and anticompetitive practices and to 

monitor U.S. foreign trades. In particular, staff will continue to pursue initiatives aimed at 

VOCCs and NVOCCs engaged in unfair service contracting practices, specifically those 

which permit entities to compete unlawfully with carriers and OTIs operating in compliance 

with U.S. laws. 

•	 Agency policies and regulations will be reviewed to ensure alignment between the FMC and 

the industry, and the state of the trade. 

•	 Staff will continue to review the operations of MTOs and monitor MTO-filed agreements to 

ensure compliance with the Shipping Act and the Commission’s regulations. 

•	 The Commission will expand awareness of its Alternative Dispute Resolution (ADR) program 

to assist in resolving disputes and shipping problems in the U.S. ocean shipping commerce. 

•	 The Commission will review its Rules of Practice and Procedure, looking to ensure both 

clarity and ease of use for parties and practitioners in proceedings before the Commission. 

Emphasis will be placed on evaluating the Commission’s procedures against current Federal 

Rules of Civil Procedure and updating procedures where appropriate. 

Licensing Compliance and Financial Responsibility 

•	 The Commission will continue to review its regulations and trade conditions in order to 

ensure that the PVO program meets the needs of the cruising public. Staff intends to perform 

an on-site review of a cruise line’s unearned passenger revenue each year and conduct 

quarterly reviews of the PVO monitoring files to ensure cruise line operators provide timely 

and accurate information with respect to the submission of reports and records. 

•	 Staff will continue to examine issues that were raised in Docket No. 02-15 and continue to 

present new options to the Commission for consideration to ensure that PVOs’ financial 

responsibility requirements for nonperformance are providing appropriate protection for the 

public. BCL will continue research into the various means of ensuring adequate coverage and 

prepare additional mechanisms to seek input from the general public on the adequacy of 

current regulations. 

•	 Staff will redesign the OTI list on the Commission’s website to increase accessibility to 

information, facilitate public search capability, and make it more interactive for users. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 16
   

             

Federal Maritime Commission

•	 Staff will continue efforts to further develop and maintain additional developments to the 

current electronic Form FMC-18 System. In conjunction with the agency’s Enterprise 

Content Management Project, the Bureau will work with OIT to explore automated business 

processing of the OTI applications submitted through the electronic FMC-18 System. 

•	 Current rules and regulations regarding OTI licensing requirements will be reviewed to ensure 

continued protection of the shipping public in light of changed industry circumstances. 

•	 Staff will continue to participate in the government-wide process of coordinating available 

data to improve identification of entities providing and using maritime transportation services. 

Public Information 

•	 The Commission will continue to promote transparency and accountability by evaluating, 

developing and implementing improvements to its website to provide additional information 

to the public in a more user-friendly format. An upgraded platform will support plans to 

enhance website graphics, include more social networking/communications capabilities, and 

improve public visibility of the Commission’s website. 

•	 Staff plans to develop an electronic database for the Commission’s historical Informal Docket 

proceedings to provide a more efficient tool for attorneys and judges in researching case 

precedent and will initially be available for staff attorneys, Settlement Officers, and the OALJ. 

•	 The OGC will continue to take the lead in providing assistance and technical advice to 

Congress regarding issues for possible legislative consideration. The Office may also 

recommend legislative amendments as necessary to ensure uniformity with other Federal 

initiatives and to allow for the efficient and secure flow of ocean transportation. 

Stewardship of Resources 

Technology 

•	 The Commission will continue to work towards full compliance with FISMA requirements. 

•	 To assist the public in the payment process, the FMC will incorporate electronic payments 

through the Pay.gov initiative. 

•	 Technology enhancements in the Commission’s Hearing Room will improve public 

information and communications at public hearings and Commission meetings, thus helping 

achieve the President’s Open Government goals. 

•	 The agency will complete implementation of the Enterprise Content Management Project 

procured in fiscal year 2009. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 17
   

             

 

Federal Maritime Commission

Resources 

•	 Agency managers will work closely with the OHR on Federal hiring reform towards the 

President’s goal of building a more transparent, high-performance government. 

•	 The agency will implement and evaluate its Human Capital, Workforce, Succession 

Management and Accountability Plans and associated metrics to assess progress in meeting 

strategic and performance goals and to determine necessary modifications. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 18
   

             

Federal Maritime Commission

FMC Mission 

To foster a fair, efficient and reliable international 

ocean transportation system and to protect the public 

from unfair and deceptive practices 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 19
   

             

           

           

           

                    

          

       

       

     

     

           

          

                

                     

                         

                         

                   

                  

                     

                           

                   

              

           

                

                

                

              

     

         

               

   

       

Federal Maritime Commission

FTE and Positions by Program

FY 2009 ‐ FY 2011

Program/Office

FY 2009

Actual

FY 2010

Estimate

FY 2011

Request

Percent Difference

From FY 10

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

Headquarters 111.48 116.00 120.72 123.00 124.20 124.00 2.88% 0.81%

Area Representatives 8.08 8.00 8.00 8.00 8.00 8.00 0.00% 0.00%

Agency Total

Formal Proceedings

Office of the Chairman

119.56

0.62

124.00

2.00

128.72

2.98

131.00

3.00

132.20

3.00

132.00

3.00

2.70%

0.67%

0.76%

0.00%

Office of the Commissioners 4.36 4.00 6.97 8.00 8.00 8.00 14.78% 0.00%

Office of the Secretary 6.03 7.00 6.56 7.00 7.00 7.00 6.71% 0.00%

Consumer Afairs and Dispute Resolution Services 7.60 8.00 5.79 7.00 6.80 7.00 17.44% 0.00%

Library 1.00 1.00 1.00 1.00 1.00 1.00 0.00% 0.00%

Office of the General Counsel 9.65 9.00 9.97 10.00 10.00 10.00 0.30% 0.00%

Office of Administrative Law Judges 2.00 2.00 2.78 3.00 3.00 3.00 7.91% 0.00%

Formal Proceedings Total

Office of Equal Employment Opportunity

Office of Inspector General

31.26

0.73

2.50

33.00

1.00

2.00

36.05

1.00

2.97

39.00

1.00

3.00

38.80

1.00

3.00

39.00

1.00

3.00

7.63%

0.00%

1.01%

0.00%

0.00%

0.00%

Operations

Office of the Director

Area Representatives

Bureau of Trade Analysis

Office of the Director

3.77

8.08

4.38

4.00

8.00

4.00

4.00

8.00

4.00

4.00

8.00

4.00

4.00

8.00

4.00

4.00

8.00

4.00

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Office of Service Contracts and Tariffs 5.27 6.00 6.00 6.00 6.00 6.00 0.00% 0.00%

Office of Economics & Competition Analysis 6.00 6.00 6.00 6.00 6.00 6.00 0.00% 0.00%

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

Bureau of Certification & Licensing

Office of the Director 4.20 4.00 4.00 4.00 4.00 4.00 0.00% 0.00%

Office of Passenger Vessels and Information Processing 5.17 6.00 6.00 6.00 6.00 6.00 0.00% 0.00%

Office of Transportation Intermediaries

Bureau of Enforcement

7.75

11.85

9.00

12.00

9.00

12.00

9.00

12.00

9.00

12.00

9.00

12.00

0.00%

0.00%

0.00%

0.00%

Operations Total

Administration

Office of the Director

60.47

3.00

63.00

3.00

63.00

3.93

63.00

4.00

63.00

4.00

63.00

4.00

0.00%

1.78%

0.00%

0.00%

Office of Information Technology 6.98 7.00 7.00 7.00 8.00 8.00 14.29% 14.29%

Office of Human Resources** 4.42 5.00 4.77 4.00 4.40 4.00 ‐7.76% 0.00%

Office of Financial Management 5.00 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

Office of Management Services 5.20 5.00 5.00 5.00 5.00 5.00 0.00% 0.00%

Administration Total

Total FTEs and Positions

24.60

119.56

25.00

124.00

25.70

128.72

25.00

131.00

26.40

132.20

26.00

132.00

2.72%

2.70%

4.00%

0.76%

* Denotes positions on September 30.
 

** Denotes FTEs associated with a Summer Hire Program
 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 20
   

             

                     

                                               

                                                          

                               

                   

                                               

                                               

                                    

                                                      

                                                          

                                                    

                                         

                                       

                                               

                                     

                                         

                                           

                                                   

                       

           

     

   

   

         

Federal Maritime Commission

Obligations by Object Class

FY 2009 ‐ FY 2011

Category

FY 2009

Actual

FY 2010

Enacted

FY 2011

Estimate

Personnel Compensation & Benefits

(11.9) Full‐time Permanent $ 12,202,123.45 $ 13,688,000.00 $ 14,804,000.00

(11.3) Other than Full‐time Permanent $ 106,335.37 $ 78,000.00 $ 85,000.00

(11.7) Awards $ 299,233.00 $ 3,000.00 $ ‐

(12.1) Civillian Personnel Benefits $ 2,806,947.28 $ 3,336,000.00 $ 3,626,000.00

Total Personnel Compensation & Benefits $ 15,414,639.10 $ 17,105,000.00 $ 18,515,000.00

Travel and Administrative Expenses

(21.0) Travel and Transportation of Personnel $ 212,208.86 $ 283,000.00 $ 283,000.00

(22.0) Transportation of Things (FEDEX) $ 17,980.00 $ 18,000.00 $ 25,000.00

Rent, Comunications & Utilities

(23.1) Rental Payments to GSA $ 3,129,943.08 $ 3,260,000.00 $ 3,276,000.00

(23.2) Rental Payments to Others $ 26,364.38 $ 28,000.00 $ 30,000.00

(2.35) Local & Long Distance, Cellular & FTS Telephones $ 185,585.33 $ 165,000.00 $ 155,000.00

(28.3) Postage $ 8,182.90 $ 18,000.00 $ 16,000.00

(24.0) Printing $ 94,535.58 $ 138,000.00 $ 163,000.00

(25.1) Consulting $ 142,508.22 $ 183,000.00 $ 186,000.00

(25.2) Purchase of Goods and Services from Commercial Accounts $ 919,364.50 $ 1,146,000.00 $ 960,000.00

(25.3) Purchase of Goods and Services from Government Accounts $ 1,291,152.98 $ 1,302,000.00 $ 1,440,000.00

(25.7) Equipment Maintenance $ 120,361.07 $ 102,000.00 $ 90,000.00

(26.0) Supplies and Materials $ 235,645.03 $ 265,000.00 $ 255,000.00

(31.0) Furniture & Equipment (includes IT hardware and software) $ 935,244.75 $ 122,000.00 $ 104,000.00

Total Travel and Administrative Expenses $ 7,319,076.68 $ 7,030,000.00 $ 6,983,000.00

Obligations/Spending Authority $ 22,733,715.78 $ 24,135,000.00 $ 25,498,000.00

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 21
   

             

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

   

                                                           

   

       

         

         

     

           

     

   

   

   

   

Federal Maritime Commission

Average Salary and Grade

(Excludes Benefit Costs)

FY 2009 ‐ FY 2011

Category

FY 2009

Actual

FY 2010

Estimate

FY 2011

Request

Average Salary

Full‐time Permanent GS $9,838,186.56 $10,743,189.34 $11,454,647.29

Full‐time Permanent GM $413,330.48 $135,994.62 $139,643.19

Part‐time $106,335.37 $78,270.24 $85,378.54

Other (Schedule‐C, ALJs, SES, EX) $1,844,271.04 $2,746,177.16 $3,123,952.49

Overall Average Salary $98,404.22 $104,607.87 $112,148.65

Average Grade (Includes Part‐Time Positions)

General Schedule

GS‐04 1.00 0.00 0.00

GS‐05 2.00 1.00 1.00

GS‐06 0.00 1.00 0.00

GS‐07 4.00 4.00 5.00

GS‐08 5.00 5.00 4.00

GS‐09 1.00 0.00 1.00

GS‐10 0.00 0.00 0.00

GS‐11 7.00 2.00 2.00

GS‐12 21.00 26.00 26.00

GS‐13 27.00 29.00 28.00

GS‐14 28.00 24.00 26.00

GS‐15 15.00 23.00 23.00

Average GS Grade 12.50 12.79 12.83

GM‐14 2.00 1.00 1.00

GM‐15 1.00 0.00 0.00

Average GM Grade 14.33 14.00 14.00

ES 6.00 8.00 8.00

Average ES Grade 3.00 3.00 3.00

AL‐3/E 1.00 2.00 2.00

Average AL Grade 3.00 3.00 3.00

Presidential Appointees 3.00 5.00 5.00

Average EX Grades EX EX EX

Total Positions 124.00 131.00 132.00

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 22
   

             

                 

   

   

     

   

   

   

   

   

   

   

           

           

           

          

          

             

          

             

     

       

           

          

           

             

         

           

                

                

                

              

   

       

         

      

   

      

       

   

Federal Maritime Commission

Federal Maritime Commission

Request by Strategic Goal and Program

FY 2011

FY 2011 Request

Strategic Goal # 1 Strategic Goal # 2 Strategic Goal # 3

Advance agency

Maintain an Protect the public objectives

efficient and from unlawful, through high‐

competitive unfair and performance

international deceptive leadership and

ocean practices and efficient

Program/Office FY 2009 Actual FY 2010 Enacted

transportation

system

resolve shipping

disputes

stewardship of

resources FY 2011 Request

Changes Over

FY 2009Actual

Changes Over

FY 2010 Enacted

Formal Proceedings

Office of the Chairman $128,387.19 $668,974.76 $98,276.93 $390,822.22 $196,553.87 $685,653.02 $557,265.83 $16,678.26

Office of the Commissioners $1,100,141.05 $1,671,573.71 $277,769.20 $1,112,049.71 $555,538.40 $1,945,357.31 $845,216.26 $273,783.60

Office of the Secretary $1,031,198.02 $1,097,993.90 $181,546.04 $937,123.35 $91,637.52 $1,210,306.91 $179,108.89 $112,313.01

CADRS $1,295,477.98 $973,292.00 $0.00 $1,176,859.39 $35,662.41 $1,212,521.80 ($82,956.18) $239,229.80

Library $354,691.59 $390,101.98 $47,775.94 $342,394.20 $7,962.66 $398,132.80 $43,441.21 $8,030.82

Office of the General Counsel $1,800,343.83 $1,805,822.69 $520,174.44 $990,989.26 $387,283.16 $1,898,446.86 $98,103.03 $92,624.17

Ethics $0.00 $3,466.86 $1,235.73 $1,235.73 $1,235.73 $3,707.19 $3,707.19 $240.33

Office of Administrative Law Judges $428,089.87 $593,570.42 $81,807.40 $325,327.11 $163,614.80 $570,749.31 $142,659.44 ($22,821.11)

Formal Proceedings Total

Office of Equal Employment Opportunity

Office of the Inspector General

$6,138,329.53

$151,451.41

$570,814.98

$7,204,796.32

$226,278.84

$762,729.05

$1,208,585.68

$31,945.90

$0.00

$5,276,800.97

$130,065.45

$0.00

$1,439,488.55

$66,173.65

$779,843.69

$7,924,875.20

$228,185.00

$779,843.69

$1,786,545.67

$76,733.59

$209,028.71

$720,078.88

$1,906.16

$17,114.64

Operations

Office of the Director $905,301.95 $999,190.65 $311,969.66 $558,945.65 $168,983.57 $1,039,898.88 $134,596.93 $40,708.23

Area Representatives $1,672,103.10 $1,644,152.52 $150,257.48 $1,502,574.78 $16,695.28 $1,669,527.54 ($2,575.56) $25,375.02

Bureau of Trade Analysis $3,080,466.82 $3,349,478.27 $1,872,780.73 $1,129,103.63 $439,722.85 $3,441,607.21 $361,140.39 $92,128.94

Bureau of Certification & Licensing $2,558,455.71 $2,757,497.88 $0.00 $2,490,515.04 $459,039.22 $2,949,554.26 $391,098.55 $192,056.38

Bureau of Enforcement $2,106,894.49 $2,296,294.47 $405,957.13 $1,838,517.41 $97,585.85 $2,342,060.39 $235,165.90 $45,765.92

Operations Total

Administration

$10,323,222.07 $11,046,613.79 $2,740,965.00 $7,519,656.51 $1,182,026.77 $11,442,648.28 $1,119,426.21 $396,034.49

Office of the Director $504,319.03 $761,311.39 $123,713.35 $206,188.91 $494,853.38 $824,755.64 $320,436.61 $63,444.25

Office of Information Technology $3,011,968.41 $1,987,322.91 $312,946.14 $521,576.90 $1,251,784.56 $2,086,307.60 ($925,660.81) $98,984.69

Office of Human Resources $602,737.50 $692,246.41 $105,673.52 $196,937.00 $401,879.57 $704,490.09 $101,752.59 $12,243.68

Office of Financial Management $650,178.02 $688,196.31 $101,602.27 $319,321.45 $304,806.82 $725,730.54 $75,552.52 $37,534.23

Office of Management Services $780,694.83 $765,504.98 $117,174.59 $195,290.99 $468,698.38 $781,163.96 $469.13 $15,658.98

Administration Total

Totals

$5,549,897.79

$22,733,715.78

$4,894,582.00

$24,135,000.00

$761,109.87

$4,742,606.45

$1,439,315.25

$14,365,838.18

$2,922,022.71

$6,389,555.37

$5,122,447.83

$25,498,000.00

($427,449.96)

$2,764,284.22

$227,865.83

$1,363,000.00

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 23
   

             

   

     

   

         

       

     

                     

           

     

                 

                     

                   

         

           

           

             

       

              

     

         

   

         

         

                  

                  

                            

 

Federal Maritime Commission

Summary of Changes

FY 2010 ‐ FY 2011

Category

FY 2010

Enacted

FY 2011

Request

Net

Change

Spending Authority $24,135,000.00 $25,498,000.00 $1,363,000.00

Full‐time Equivalents * 128.72 132.20 3.48

Positions * 131.00 132.00 1.00

Explanation of Changes : Amount

Annualization of FY 2010 salary increases $684,000.00

Salary for new position $89,000.00

2011 estimated pay raise (2.1%) $230,000.00

2011 promotions and WIGs for eligible staff $97,000.00

Costs associated with employee benefits $290,000.00

Cash awards ($3,000.00)

Part‐Time Employees $23,000.00

Total Personnel Compensation and Benefits $1,410,000.00

Travel and Administrative Expenses

(21.1) Travel and Transportation of Personnel $0.00

(22.0) Transportation of Things $7,000.00

Rent, Comunications & Utilities

(23.1) Rental Payments to GSA $16,000.00

(23.2) Rental Payments to Others $2,000.00

(23.5) Local & Long Distance, Cellular & FTS Telephones ($10,000.00)

(28.3) Postage ($2,000.00)

(24.0) Printing $25,000.00

(25.1) Consulting $3,000.00

(25.2) Purchase of Goods and Services From Commercial Accounts ($186,000.00)

(25.3) Purchase of Goods & Services from Government Accounts $138,000.00

(25.7) Equipment Maintenance ($12,000.00)

(26.0) Supplies and Materials ($10,000.00)

(31.0) Furniture & Equipment (Includes IT hardware and software) ($18,000.00)

Total Travel and Administrative Expenses ($47,000.00)

Total Changes $1,363,000.00

* Includes Part‐Time employees

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 24
   

             

Federal Maritime Commission

Appropriation Language 

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

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

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

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

[$24,135,000]:/\Provided, That not to exceed $2,000 shall be available for official reception and $25,498,000 

representation expenses (Consolidated Appropriations Act, 2010). 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 25
   

             

Federal Maritime Commission

FMC Fiscal Year 2011 Budget Request by Strategic Goal 

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

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

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

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

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

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

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

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

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

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

plan. The FMC’s fiscal year 2011 budget request totals $25,498,000 and funds 132.2 full-time 

equivalents (FTEs). This is an increase of $1,363,000 over the agency’s fiscal year 2010 

appropriation level. 

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

system 

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

resolve shipping disputes 

•	 Strategic Goal # 3: Advance agency objectives through high-performance leadership and 

efficient stewardship of resources 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 26
   

             

FY 2011 Budget Request by Program

Formal Proceedings IG EEO Operations Administration

38.8

3.0

1.0

63.0

26.4

FY 2011 FTE Request by Program

Formal Proceedings IG EEO Operations Administration

Federal Maritime Commission

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 27 
   

             

                                           

                                           

                                           

                                                   

                                           

                   

         

                                           

           

                         

       

       

                                   

Federal Maritime Commission

Program

Formal Proceedings

Equal Employment Opportunity

Inspector General

Operations

Administration

Unobligated

Budget Authority

Obligations

Outlays*

Outlay Rate (Obligation to Outlay)**

Obligation Rate

Total outlays forfiscal year 2004 disbursed in fiscal year 2009

Total outlays forfiscal year 2005 disbursed in fiscal year 2009

Total outlays forfiscal year 2006 disbursed in fiscal year 2009

Total outlays forfiscal year 2007 disbursed in fiscal year 2009

Total outlays forfiscal year 2008 disbursed in fiscal year 2009

Total outlays forfiscal year 2009

Outlays

* Represents Outlays for FY 2009 only

** Represents the percentage of FY 2009 obligations that were disbursed during FY 2009

($688.24)

$5,549,897.79 $4,894,582.00 $5,122,447.83

$0.00

$22,800,000.00 $24,135,000.00 $25,498,000.00

$22,733,715.78 $24,064,834.66 $25,423,872.15

Grosss Outlays for FY 2009

$19,556,373.50 $20,761,809.42 $21,934,311.85

$8,617.00

$22,050,745.03

$52,012.34

$19,556,373.50

$2,434,430.43

$10,323,222.07 $11,046,613.79 $11,442,648.28

$66,284.22 $0.00 $0.00

$151,451.41 $226,278.84 $228,185.00

$570,814.98 $762,729.05 $779,843.69

$6,138,329.53 $7,204,796.32 $7,924,875.20

Relationship of Obligations to Outlays

FY 2009 ‐ FY 2011

FY 2009

Actuals

FY 2010

Enacted

FY 2011

Requested

86.02% 86.02% 86.02%

99.71% 99.71% 99.71%

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 28 
   

             

 

   

   

           

           

           

           

       

   

         

         

     

     

     

   

Federal Maritime Commission

Formal Proceedings Program 

The Offices of the Commissioners, Secretary, General Counsel and Administrative Law Judges 

comprise the Formal Proceedings Program. Within this program, the Commission conducts 

hearings, renders formal decisions in the disposition of docketed cases, compiles and maintains 

all official documents arising from proceedings, and conducts external representation activities 

before the Congress, courts of law, and other agencies. 

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Chairman 0.62 2.98 3.00

Commissioners 4.36 6.97 8.00

Secretary 6.03 6.56 7.00

CADRS 7.60 5.79 6.80

Library 1.00 1.00 1.00

General Counsel 9.65 9.97 10.00

Administrative Law Judges 2.00 2.78 3.00

Total FTEs 31.26 36.05 38.80

Cost: Salaries & Benefits $4,415,897.87 $5,207,776.92 $5,920,407.19

Non‐Personnel Expenses $1,722,431.66 $1,997,019.40 $2,004,468.01

Total Cost $6,138,329.53 $7,204,796.32 $7,924,875.20

6.79

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission 

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Formal Proceedings

$1,208,585.68 $5,276,800.97 $1,439,488.55

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

5.91 26.09

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 29
   

             

   

     

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Office of the Chairman 

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

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

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

business and use of funds for administrative purposes. During fiscal year 2009, there was a 

vacancy in the Commission’s chairmanship until President Obama designated Commissioner 

Joseph E. Brennan as Acting Chairman in May 2009. Subsequently, on September 11, 2009, the 

President designated Commissioner Richard A. Lidinsky, Jr. as Chairman. Throughout the fiscal 

year, the Commission continued its regular meeting schedule, typically meeting on the second 

and fourth weeks of the month to discuss and act upon industry and administrative matters before 

it in both public and closed sessions. 

FY 2009 FY 2010

Actual Enacted

Federal Maritime Commission 

Formal Proceedings

Office of the Chairman

FY 2011

Request

FTE: Chairman 0.62 2.98 3.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$92,846.44

$35,540.75

$128,387.19

$506,783.47

$162,191.29

$668,974.76

$526,381.22

$159,271.80

$685,653.02

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.43 1.71 0.86

FY 2011 Cost by FMC Strategic Goal

$98,276.93 $390,822.22 $196,553.87

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 30
   

             

   

     

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Office of the Commissioners 

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

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

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

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

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

777. 

During the fiscal year ending September 30, 2009, the Commission issued 26 orders and notices 

in docketed proceedings. 

FY 2009

Actual

Formal Proceedings

Office of the Commissioners

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Commissioners 4.36 6.97 8.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$843,884.55

$256,256.50

$1,100,141.05

$1,275,982.46

$395,591.25

$1,671,573.71

$1,527,256.33

$418,100.98

$1,945,357.31

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.14 4.57 2.28

FY 2011 Cost by FMC Strategic Goal

$277,769.20 $1,112,049.71 $555,538.40

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 31
   

             

Federal Maritime Commission

Office of the Secretary (OS) 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

initiatives. 

During fiscal year 2009, the OS continued to administratively process and direct all major filings 

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

section 5 of the 1984 Act. The Office also issued 26 orders in docketed proceedings on behalf of 

the Commission. 

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

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

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

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

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

awareness of agency resources, remedies and regulatory requirements through education and 

outreach. Several initiatives were undertaken during the fiscal year to expand contact with all 

segments of the maritime community and public, including participating on industry discussion 

panels, coordinating and hosting industry briefings, and updating informational material. During 

fiscal year 2009, the Office continued to facilitate the Commission’s regular meeting schedule - 

providing a public forum for Commission discussion and action on industry and administrative 

matters before the Commission. During fiscal years 2010 and 2011, the Office plans to work 

with other Commission components to revisit and update agency-wide outreach initiatives 

previously identified, including those that focus on improving the Commission’s ability to reach 

the shipping community and deliver information about available Commission resources to 

resolve cargo shipping issues. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 32
   

             

 

Federal Maritime Commission

During fiscal year 2009, the Office collaborated with other Commission components to 

implement plans for upgrading and modernizing the communication technology in the 

Commission’s hearing room. Cabling and upgraded audio and video equipment were installed to 

facilitate more effective communication, both internally and externally. Through these 

improvements the Commission will be better positioned to timely disseminate information on its 

actions and activities, communicate its mission strategies and objectives, and reach a wider 

audience. Plans for system testing to digitally archive and broadcast public sessions of 

Commission meetings over the Internet are scheduled for fiscal year 2010. The Office will 

support this effort by providing the lead agency component advice on best government practices 

and technical, web-based requirements as related to web-broadcasting. 

The Office promotes transparency and accountability on behalf of the Commission by 

evaluating, developing and implementing improvements to the Commission’s website. During 

the fiscal year, the Office made adjustments to how information is presented, increased the 

amount of information available, and added functionality. For example, in May 2009, the Office 

worked with other Commission components to provide a publicly accessible, data-sharing tool to 

access carrier service contract statistics through the Commission’s website. This enhancement 

provides greater public awareness and real-time access to the number and type of filings in the 

Commission’s confidential service contract database. Providing access to this information 

illustrates the Commission’s efforts to continually evaluate areas where it can balance 

security/legal requirements with open government on its website. 

On an ongoing basis, the Office evaluates the overall usability of the website and works closely 

with other offices and bureaus to make content-driven, user-friendly improvements. During 

fiscal year 2010, the Office will oversee the upgrade of the Commission’s website operating 

platform. The new, more modern platform will support plans to enhance website graphics, 

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

Commission’s website. Once the new platform is in place and information and content has been 

migrated to the new system, during the latter part of fiscal year 2010 and into 2011, the Office 

will proceed with plans to systematically review and enhance website content. 

The Office also continued discussions during the fiscal year with the OIT regarding alternatives 

for redesigning the agency’s intranet. The scope of the agency’s intranet redesign project has 

been expanded to encompass OIT’s plans to improve the agency’s collaborative capabilities and 

enhance efficiency in administrative business processes during 2010 and 2011. 

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

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

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

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

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

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

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

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

available through its website. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 33
   

             

   

     

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

During the fiscal year, the Office made substantial progress towards completion of a largevolume project. The contents of 28 bound volumes of historical Commission decisions issued 

between the years 1919 and 1987 are in the process of being posted to the Commission’s 

website. These historical decisions are no longer available to the public in bound volume form. 

However, with the completion of this project, the entire body of historical Commission decisions 

issued in its adjudicatory proceedings will be available on the FMC website. Making this 

information readily available to the public in electronic form has proven to be a useful and cost 

effective resource, especially for attorneys practicing before the Commission. While significant 

data preparation was completed in fiscal year 2009 to further this project, limited staff resources 

were reallocated to meet the demands of preparing for, conducting and follow-up of twicemonthly Commission meetings. Pending availability of staff resources, the Office plans to 

complete this project in fiscal year 2010. 

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$181,546.04 $937,123.35 $91,637.52

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.05 5.42 0.53

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission 

Formal Proceedings

Office of the Secretary

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE:	 Secretary 6.03 6.56 7.00

Cost:	 Salaries & Benefits $692,725.41 $750,234.34 $884,600.89

Non‐Personnel Expenses $338,472.61 $347,759.56 $325,706.02

Total Cost $1,031,198.02 $1,097,993.90 $1,210,306.91

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

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

efficient research tool for historical cases and decisions related to Informal Docket proceedings 

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

Officers, and the Office of Administrative Law Judges. Coordination and support from OIT may 

be necessary. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 34
   

             

Federal Maritime Commission

During fiscal year 2009, the Office implemented an online catalogue for the Commission’s 

law/reference library collection that replaced an outdated card catalogue ahead of schedule and 

within the established project budget. The new automated system employs technology to 

improve workforce productivity by providing an in-house library access station, as well as 

agency-wide staff access to library holdings from individual desktops. The new system 

minimizes data entry into multiple library management systems, thus reducing redundancy and 

increasing administrative efficiencies. 

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

deceptive ocean transportation practices and resolve shipping disputes, during fiscal year 2011 

the Office plans to initiate a review to modernize the Commission’s Rules of Practice and 

Procedure, with particular emphasis on electronic filing of documents. 

Office of Consumer Affairs and Dispute Resolution Services (CADRS) 

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

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

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

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

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

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

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

be employed as needed. During fiscal year 2009, Commission mediators provided services in a 

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

goods. 

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

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

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

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

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

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

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

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

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

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

complaints involving issues with cruise lines. 

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

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

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

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

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

observe, and enforce just and reasonable regulations and practices. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 35
   

             

Federal Maritime Commission

During fiscal year 2009, 727 complaints were received that necessitated the opening of cases to 

provide dispute resolution services. These included 164 passenger complaints about cruise line 

issues (a 13% decrease from fiscal year 2008), 333 complaints with respect to household goods 

shipments (a 68% increase over fiscal year 2008), and 230 complaints involving other cargo 

shipment matters (a 27% increase over fiscal year 2008). Cargo shipment complaints continued 

to be of increasing complexity. Problems involving co-loaded shipments continue to be a 

significant issue. In addition to the above complaints, more than 650 information requests were 

processed. 

In fiscal year 2009, as an apparent result of the economic downturn, a number of licensed 

NVOCCs went out of business. Those NVOCCs focusing on household goods shipments seem to 

have been affected more than others, which is reflected in the 64% increase of complaints for 

this category. Some NVOCCs had credit lines reduced or eliminated, causing significant cash 

flow problems and immediate demands for payments. As these NVOCCs wound down their 

businesses, CADRS worked with them to ensure that shipments were completed and customers 

received their cargo. This is reflected in the 27% increase in cases handled for cargo other than 

household goods. 

CADRS received numerous complaints during fiscal year 2009 that involved a particular 

licensed NVOCC which specialized in household goods shipments. The NVOCC had a dispute 

with its United Kingdom (UK) agent over payments due that led to termination of a considerable 

line of credit. The NVOCC subsequently failed to make payments on shipments being held by 

the UK agent. The NVOCC then had problems with its agent in India and the vessel operator. In 

both instances, CADRS worked with the parties to ensure shippers obtained the release of their 

goods. These disputes concerned over $100,000 in freight charges and goods valued at over $1 

million. 

The Office also devoted substantial resources to mediating a dispute among an ocean carrier, two 

NVOCCs and a shipper, that also involved a U.S. port, where oil leakage from containers posed 

an environmental hazard. This problem was on the verge of generating at least three lawsuits in 

multiple fora. At the time CADRS received the request to mediate, the containers had been 

detained at the port for more than six months, and no party was stepping forward to remove 

them. Through mediation, an agreement was reached to fund and effect environmentally safe 

cleaning and removal of the containers, and then ultimately resolved various disputes as to the 

amount of damages. 

Another issue that arose in fiscal year 2009 concerned a licensed NVOCC that was the subject of 

more than thirty complaints. This particular company had ceased operating and abandoned a 

number of containers without paying the ocean carrier. As a result, at least twenty containers 

were abandoned in Argentina. The shipments consisted of valuable cargo including vehicles, 

electronics, and appliances. CADRS conservatively estimates that the cumulative value of the 

cargo exceeded well over $2 million. CADRS worked closely with Argentine customs and 

consulate staff, law enforcement officials, state agencies, shippers and carriers to locate shippers’ 

cargo and assist in obtaining its release. CADRS is continuing its efforts to locate and secure 

release of the remaining shipments. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 36
   

             

   

       

   

         

         

     

     

     

   

           

           

         

           

           

Federal Maritime Commission

In fiscal years 2010 and 2011, CADRS intends to further expand awareness of the ADR program 

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

promotes and encourages the use of ADR and its various processes rather than litigation. Further 

efforts will be made to increase shipping industry awareness of this less adversarial, more costeffective and time efficient means of resolving disputes in a manner that enables the parties to 

control the outcome. Use of mediation, in particular, will be promoted to assist in resolving 

formal proceedings and other significant disputes. CADRS will continue to make consumer 

protection information available and will expand its outreach with other Federal agencies, 

through various websites, and media sources. The real value of these efforts will be the number 

of consumers that are forewarned and thereby avoid problems. Through this means, assistance 

may be provided to many more consumers than could be possible through post-shipment 

problem resolution. 

FY 2009 FY 2010

Actual Enacted

Formal Proceedings

Consumer Affairs and Dispute Resolution Services

Federal Maritime Commission 

FY 2011

Request

FTE: CADRS 7.60 5.79 6.80

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$1,001,799.24

$293,678.74

$1,295,477.98

$736,054.36

$237,237.64

$973,292.00

$942,818.26

$269,703.54

$1,212,521.80

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 6.60 0.20

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$0.00 $1,176,859.39 $35,662.41

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Library 

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

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

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 37
   

             

   

       

   

         

         

     

     

     

   

           

           

           

           

 

Federal Maritime Commission

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

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

journals, magazines, reports, microforms, and videos. The Library also contains material on 

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

publications. The Library collection includes law encyclopedias, engineering textbooks, legal 

treatises, legislative materials, and selected titles of the National Reporter system. The Library’s 

holdings consist of approximately 8,700 volumes and numerous microfiches, CD-ROMs, and online services. 

FY 2009

Actual

Formal Proceedings

Library

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Library 1.00 1.00 1.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$102,068.49

$252,623.10

$354,691.59

$105,862.99

$284,238.99

$390,101.98

$111,184.04

$286,948.76

$398,132.80

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.12 0.86 0.02

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$47,775.94 $342,394.20 $7,962.66

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 38
   

             

   

       

   

         

         

     

     

     

   

           

           

       

           

           

 

Federal Maritime Commission

Office of the General Counsel (OGC) 

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

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

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

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

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

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

the Commission’s international affairs program. 

$520,174.44 $990,989.26 $387,283.16

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.74 5.22 2.04

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission 

Formal Proceedings

Office of the General Counsel

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE:	 General Counsel 9.65 9.97 10.00

Cost:	 Salaries & Benefits $1,400,916.49 $1,381,102.87 $1,485,294.63

Non‐Personnel Expenses $399,427.34 $424,719.82 $413,152.23

Total Cost $1,800,343.83 $1,805,822.69 $1,898,446.86

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 39
   

             

Federal Maritime Commission

Decisions 

The following are rulemakings and adjudications representative of matters prepared by the OGC: 

(a) Rulemakings 

Recodification of the Shipping Act as Positive Law; [Docket No. 09-06], 31 S.R.R.1048 

(September 16, 2009) 

The Commission issued a Final Rule revising 46 CFR Parts 501, 502, 503, 504, 506, 508, 515, 

520, 525, 530, 531, 535, 540, 545, 550, 551, 555, 560, and 565. The Shipping Act of 1984 and 

other statutes administered by the Commission were previously codified in the appendix to Title 

46 of the United States Code. The House of Representatives introduced H.R. 1442 to complete 

the codification of the appendix as positive law. On October 6, 2006, H.R. 1442 was enacted as 

Public Law 109-304. This rule changes prior statutory references in the Commission’s 

regulations to reflect the codification and does not involves any substantive changes. The Final 

Rule was published in the Federal Register on October 1, 2009, 74 FR 50713. 

Passenger Vessel Financial Responsibility; [Docket No. 02-15], ____ S.R.R. ____ 

(October 28, 2009) 

This proceeding was instituted by Proposed Rulemaking published on October 31, 2002, in FMC 

Docket No. 02-15. The Proposed Rule would have amended the Commission’s passenger vessel 

regulations at 46 CFR Part 540, which implement the statutory requirement to provide proof of 

passenger vessel financial responsibility. The proposed rule elicited a broad range of comments 

from many sectors of the cruise industry. The Commission, however, determined that the record 

amassed in prior years is no longer legally sufficient to sustain contemporary efforts to either 

adopt or propose new alternatives to the Commission’s financial responsibility requirements for 

PVOs. The record in this proceeding had effectively become stale, failing to account for changes 

in the industry that include, but are not limited to, the recent economic downturn that has greatly 

impacted most segments of the domestic and world economies. The proposed rulemaking was 

terminated on October 28, 2009, and the Commission is currently considering options for 

revising the passenger vessel regulations. 

(b) Decisions 

Odyssea Stevedoring of Puerto Rico, Inc. v. Puerto Rico Ports Authority, [Docket No. 02-08]; 

International Shipping Agency, Inc. v. The Puerto Rico Ports Authority, [Docket No. 04-01]; 

and San Antonio Maritime Corp. and Antilles Cement Corp. v. Puerto Rico Ports Authority, 

[Docket No. 04-06], 30 S.R.R. 1339 (March 5, 2007) 

These cases came before the Commission for a determination whether the Puerto Rico Ports 

Authority (PRPA) is an arm of the Commonwealth of Puerto Rico and therefore entitled to 

sovereign immunity. Odyssea Stevedoring of Puerto Rico, Inc., International Shipping Agency, 

Inc. (Intership), San Antonio Maritime Corp. and Antilles Cement Corp. allege that PRPA’s 

marine terminal leasing practices violated sections 10(b)(10), 10(d)(1), 10(d)(3), and 10(d)(4) of 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 40
   

             

 

 

Federal Maritime Commission

the Shipping Act. Further, Intership alleged PRPA violated section 10(a) (3) of the Shipping Act 

by failing to act in accordance with the terms of an agreement filed with the Commission. PRPA 

filed motions for summary judgment or motions to dismiss in all three cases, arguing that the 

complaints were barred by PRPA’s sovereign immunity as an arm of the Commonwealth of 

Puerto Rico. In Odyssea and Intership, the ALJ ruled that PRPA was not entitled to sovereign 

immunity. The Commission, sua sponte, decided to review the ALJ’s decision. On November 

30, 2006, the Commission issued an order, on a 3-2 vote, finding that PRPA is not an arm of the 

Commonwealth of Puerto Rico and is therefore not entitled to sovereign immunity. 

The Commission’s order was appealed to the U.S. Court of Appeals for the D.C. Circuit (Case 

No. 06-1407). The Court heard oral argument on October 26, 2007. On July 8, 2008, the Court 

issued its opinion finding that PRPA is an arm of the Commonwealth of Puerto Rico and is 

therefore immune from suit absent its consent. Intership filed a motion on August 25, 2008, to 

stay the Court’s mandate pending filing of a petition for writ of certiorari. The Court granted 

Intership’s motion on September 16, 2008. A petition for a writ of certiorari at the United States 

Supreme Court was filed by Intership on October 8, 2008. The Supreme Court denied 

Intership’s writ on February 23, 2009. The D.C. Circuit issued their mandate for the 

Commission to dismiss all three cases on March 6, 2009. The Commission dismissed all three 

PRPA cases on April 8, 2009. 

EuroUSA Shipping, Inc., Tober Group, Inc. and Container Innovations, Inc. – Possible 

Violations of Section 10 of the Shipping Act of 1984 and the Commission’s Regulations at 46 

C.F.R. § 515.27, [Docket No. 06-06], 31 S.R.R. 540 (December 18, 2008) 

This proceeding was instituted by Order of Investigation and Hearing served May 11, 2006, to 

determine whether respondents violated section 10(b) (11) of the Shipping Act and the 

Commission’s regulations at 46 CFR 515.27, by knowingly and willfully accepting cargo from 

or transporting cargo for the account of an OTI that did not have a tariff and a bond as required 

by sections 8 and 19 of the Act. The ALJ granted Tober Group, Inc.’s (Tober) Motion for 

Summary Judgment, which was overturned by the Commission and remanded to the ALJ. 

On October 9, 2009, the ALJ issued an Initial Decision in which he determined that Tober did 

not violate section 10(b)(11) of the Shipping Act, as it did not accept cargo from or transport 

cargo for the account of an NVOCC that does not have a tariff or bond; Tober committed 278 

violations of section 10(b)(2)(A) of the Shipping Act; BOE did not meet its burden of persuasion 

regarding the amount of civil penalty to be assessed for Tober’s violations of section 10(b)(2)(A) 

of the Act and therefore no penalty was assessed; and BOE did not meet its burden of persuasion 

that a cease and desist order should be issued. BOE filed exceptions to the Initial Decision 

which will be considered prior to the issuance of final decision. 

With regard to Container Innovations, Inc., on October 9, 2009, the ALJ issued a Memorandum 

and Order in which he determined that additional briefing was necessary before the claims 

against it would be ripe for an initial decision. Therefore he directed BOE to file its proposed 

findings of fact and brief, and Container Innovations to file documents responsive to BOE’s 

filings. On December 1, 2009, the ALJ issued an Initial Decision in which he determined that 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 41
   

             

Federal Maritime Commission

Container Innovations violated section 10(b) (11) of the Shipping Act by knowingly and 

willfully accepting cargo from or transporting cargo for the account of an NVOCC that did not 

have a tariff or bond as required by the Shipping Act. The ALJ ordered Container Innovations to 

pay a civil penalty in the sum of $390,000 for 13 willful and knowing violations of the Shipping 

Act. 

With regard to EuroUSA Shipping, Inc., on October 9, 2009, the ALJ issued a Memorandum and 

Initial Decision in which he approved the settlement agreement between BOE and EuroUSA 

Shipping, Inc. This decision became administratively final on November 12, 2009. 

APM Terminals North America, Inc. v. Port Authority of New York and New Jersey, [Docket 

No. 07-01], 31 S.R.R. 623 (April 1, 2009) 

APM Terminals North America, Inc., commenced this proceeding by filing a complaint alleging 

that the Port Authority of New York and New Jersey violated section 10 of the Shipping Act of 

1984 alleging it had been harmed by the Port Authority’s failure to tender an additional portion 

of marine terminal property provided for in a lease between APM and the Port Authority. APM 

also claimed that the Port Authority’s actions unlawfully preferred Maher Terminals, LLC, also a 

marine terminal operator. PANYNJ denied liability and filed a counter-complaint against APM. 

PANYNJ filed a third-party complaint against Maher Terminals claiming that Maher failed to 

timely surrender the premises sought by APM. 

APM and PANYNJ entered into a settlement agreement and a supplemental agreement to the 

lease at issue between them resolving their claims and counter claims in this proceeding, which 

was approved by the presiding ALJ. On April 1, 2009, the Commission affirmed the ALJ’s 

decision. The Commission rejected assertions by Maher to block the settlement as the agreement 

met the Commission’s criteria for settlement and because Maher had not shown that the 

remaining claims between it and the Port Authority would be prejudiced. Maher’s separate 

claims have been consolidated within its separate complaint case, Docket No. 08-03. 

Global Link Logistics, Inc. – Emergency Petition for Declaratory Order, Rulemaking or Other 

Appropriate Relief in Voluntary Disclosure Investigation, [Docket No. 08-07], 31 S.R.R. 718 

(June 15, 2009) 

Petitioners Olympus Growth Fund, III, L.P. and Olympus Executive Fund, L.P. petitioned the 

Commission to issue a Declaratory Order, initiate a rulemaking or grant other appropriate relief 

to confirm that an industry practice involving domestic inland movements was not a violation of 

section 10(a)(1) of the Shipping Act. Alternatively, Petitioners requested that the Commission 

initiate a docketed proceeding for the purpose of granting Petitioners leave to intervene in a 

formal investigation of the shipment practices of Global Link Logistics, Inc. (Global Link), a 

non-vessel-operating common carrier in which Petitioners formerly owned a stake. In the 

Commission’s Notice of Filing of Petition, it was requested that Global Link and the 

Commission’s BOE reply to the petition. Subsequently, comments were invited from other 

interested parties with respect to the request in the petition to initiate a rulemaking proceeding. 

Global Link, BOE, and ABS Consulting filed comments generally opposing the relief sought in 

the Petition. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 42
   

             

Federal Maritime Commission

On June 15, 2009, the Commission issued an Order Denying the Petition. The Commission 

denied the request to issue a Declaratory Order, on the grounds that it did not meet the 

requirements of Commission Rule 68, as Petitioners are private equity funds not subject to 

Commission jurisdiction, and they were not seeking a legal ruling on a proposed future course of 

action, as the activities in question had already occurred. The Commission also denied the 

request for a rulemaking, as Petitioners failed to set forth supporting facts and data showing 

convincing need for the broad regulatory relief envisioned in a rulemaking proceeding. Finally, 

the Commission denied the request to initiate a formal proceeding on the grounds that it 

encourages informal resolution of cases through compromise proceedings and has delegated to 

BOE authority to compromise civil penalties, and Petitioners did not include in their petition 

information or evidence justifying the institution of a formal investigation by the Commission. 

R.O. White & Company and Ceres Marine Terminals, Inc. v. Port of Miami Terminal 

Operating Company, Continental Stevedoring & Terminals, Inc., Florida Stevedoring, Inc., 

Ports America, Ports America Florida, Dante Fascell Port of Miami Dade, Miami-Dade 

County Seaport Department and Miami-Dade County; [Docket No. 06-11], 31 S.R.R. 783 

(July 28, 2009) 

Complainants filed their complaint on November 22, 2006. Motions to dismiss were filed by 

Respondents. Complainants maintained that Respondents were MTOs subject to Commission 

jurisdiction. Complainants also alleged that Respondents operate as MTOs in violation of the 

Shipping Act by failing to follow agreements they filed with the Commission and by operating 

under agreements that should have been filed with the Commission. The Complainants, among 

other things, also alleged that Respondents adopted practices and implemented unfiled 

agreements which denied them the opportunity to perform stevedoring services for vessels at 

Respondents’ terminal facilities, unlawfully preferred Respondents’ stevedoring operations and 

engaged in unreasonable and discriminatory practices in violation of the Shipping Act. 

Though the presiding ALJ ruled that the Commission has jurisdiction over Respondents as 

MTOs, he concluded that Complainants had not met their burden of proof to show that 

Respondents had sufficient economic power with regard to marine terminal services to force 

ocean carrier customers to accept the services of Respondents’ preferred stevedores. The ALJ 

also concluded that Complainants had failed to carry their burden to show that Respondents’ 

practices were unreasonable or amounted to unlawful discrimination. The ALJ dismissed the 

case. Complainants and Respondents separately informed the Commission in writing that they 

would not file exceptions. As the Commission did not decide to review the Initial Decision on 

its own motion, it became administratively final pursuant to 46 CFR 502.227 of the 

Commission’s regulations. 

Litigation 

The OGC represents the Commission in litigation before courts and other administrative 

agencies. Although the litigation work largely consists of representing the Commission upon 

petitions for review of its orders filed with the U.S. Courts of Appeals, the OGC also participates 

in actions for injunctions, enforcement of Commission orders, actions to collect civil penalties, 

and other cases where the Comission’s interest may be affected by litigation. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 43
   

             

Federal Maritime Commission

The following is representative of matters litigated by the OGC: 

Landstar Express America, Inc. and Landstar Global Logistics, Inc. v. Federal Maritime 

Commission, D. C. Circuit, Case No. 08-1152 

This proceeding is an appeal of the February 15, 2008 order in Commission Docket No. 06-08, 

In the Matter of the Lawfulness of Unlicensed Persons Acting as Agents for Licensed Ocean 

Transportation Intermediaries – Petition for Declaratory Order. The Commission denied the 

petition filed by Team Ocean Services, Inc. (Team Ocean), following review of the petition and 

three comments submitted thereon, including the comments of Landstar America, Inc. and 

Landstar Global Logistics, Inc. (Landstar). On April 14, 2008, Landstar filed a Petition to 

Review the Commission’s Order, asserting in its Petition that it is a party aggrieved by the 

Commission’s denial of Team Ocean’s Petition. Petitioners submitted a single issue to be raised 

to the Court: 

Whether the FMC Order’s determination that it is unlawful under The Shipping 

Act of 1984, as amended, for an unlicensed agent to provide Non-VesselOperating Common Carrier (NVOCC) services in the name of and on behalf of a 

licensed NVOCC is arbitrary, capricious, contrary to the FMC’s statutory 

authority, jurisdiction and existing precedent, inconsistent with the plain language 

of the applicable statute, an abuse of discretion, unsupported by substantial 

evidence, or otherwise contrary to law. 

Pursuant to the schedule ordered by the Court, Landstar filed its opening brief December 4, 2008 

and the Commission filed its brief on January 12, 2009, with Landstar filing its reply brief 

January 26. Oral argument was held on April 21, 2009. On June 26, 2009, the Court issued its 

order and opinion granting Landstar’s Petition for Review, Vacating the Commission’s 

Declaratory Order and remanding the case to the Commission. The Court ruled that the plain 

language of section 19 of the Shipping Act does not provide authority to the Commission to 

require agents of ocean transportation intermediaries to obtain an OTI license in order to act as 

an agent. 

On November 6, 2009, the Commission issued an order granting the petition for declaratory 

order filed by Team Ocean, consistent with the Court’s decision in Landstar that it is lawful for a 

licensed ocean transportation intermediary (OTI) to engage an unlicensed person to act as its 

agent to perform OTI services on behalf of the disclosed licensed OTI. 

Federal Maritime Commission v. City of Los Angeles, California, Harbor Department of the 

City of Los Angeles, Board of Harbor Commissioners of the City of Los Angeles, City of Long 

Beach, California, Harbor Department of the City of Long Beach, and the Board of Harbor 

Commissioners of the City of Long Beach, U. S. District Court for the District of Columbia, 

Case No. 08-1895 

On October 31, 2008, the Commission filed a complaint seeking a permanent injunction pursuant 

to section 6(g) of the Shipping Act against certain aspects of the Ports of Los Angeles and Long 

Beach (the Ports) Clean Truck Plan and harmonized concession agreements. The CTP and 

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Federal Maritime Commission

concession agreements are designed to require new, less-polluting trucks to serve the Ports but 

also add a requirement at Los Angeles that employee drivers be used although trucking at the 

Port is dominated by independent owner-operators. The Commission’s action seeks to enjoin the 

employee driver requirements on the basis that it results in an unreasonable increase in costs and 

unreasonable decrease in service. On November 17, 2008, the Commission filed a motion for a 

preliminary injunction pending the Court’s decision on the merits of the Commission’s 

Complaint. On April 15, 2009, the Court denied the Commission’s motion for a preliminary 

injunction, finding that the Commission had not shown that it met the applicable equitable 

standards for injunction. On June 16, 2009, the Commission filed a motion to dismiss this 

proceeding, citing changed circumstances including a preliminary injunction issued against the 

employee driver requirement in unrelated litigation in the Ninth Circuit Court of Appeals and the 

U.S. District Court for the Central District of California. On July 24, 2009, the Commission and 

the Ports filed a joint stipulation dismissing the proceeding which was terminated as of July 29, 

2009. 

National Resources Defense Council, Inc., Sierra Club, Inc. and Coalition for Clean Air, Inc. 

v. Federal Maritime Commission, U.S. District Court for the Central District of California, 

Case No. 08-07436 

On November 10, 2008, the Complainants filed a complaint asserting that the Commission 

cannot take action that would impact the implementation of the Ports of Los Angeles and Long 

Beach Clean Trucks Program without first complying with the National Environmental Policy 

Act of 1969 (NEPA) and other environmental regulations. Attorneys from the Department of 

Justice Environment and Natural Resources Division and U.S. Attorney’s Office for the Central 

District of California defended the Commission and filed a Motion to Dismiss the Proceeding 

with the Court, which Natural Resources Defense Council, Inc. opposed. Complainants filed a 

Notice of Voluntary Dismissal on September 11, 2009, which terminated the proceeding on that 

date. 

National Resources Defense Council, Inc. v. Federal Maritime Commission, U.S. District 

Court for the District of Columbia, Case No. 1:09-cv-00935 

On May 19, 2009, the National Resources Defense Council, Inc. (NRDC) filed a complaint for 

declaratory and injunctive relief against the Commission for denying NRDC a full waiver of fees 

under the Freedom of Information Act (FOIA). An Assistant U.S. Attorney was assigned to 

defend the Commission. An answer to the complaint was filed on July 9, 2009. 

On September 28, 2009, NRDC filed its Motion for Summary Judgment on the merits of the case 

related to whether plaintiff qualifies for fee waivers. On November 6, 2009, DOJ and the 

Commission prepared the Consolidated Memorandum in Opposition to NRDC’s Motion for 

Summary Judgment and in Support of its own Cross Motion for Summary Judgment. The 

NRDC’s final brief on the fee waiver issue was filed on November 30, 2009 and the FMC’s final 

brief was filed on December 18, 2009. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 45
   

             

 

Federal Maritime Commission

Legislative Activities 

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

preparing testimony for Commission officials, responding to Congressional requests for 

information, commenting on proposed legislation, and responding to the Office of Management 

and Budget (OMB) requests for views on proposed bills and testimony. 

During fiscal year 2009, 80 bills, proposals and Congressional inquiries were referred to the 

OGC for review or comment. The Office prepared and coordinated testimony for the agency’s 

fiscal year 2010 budget authorization hearing before the U.S. House of Representatives 

Committee on Transportation and Infrastructure, Subcommittee on Coast Guard and Maritime 

Transportation. In addition, the Office assisted in the preparation for one confirmation hearing 

before the Senate Committee on Commerce, Science and Transportation. The Office also worked 

closely with Congressional staffs on proposed legislation that may affect the Commission. 

In fiscal years 2010 and 2011, the OGC will continue to take the lead in providing assistance and 

technical advice to Congress regarding issues for possible legislative consideration. The Office 

may also recommend legislative amendments as necessary to ensure uniformity with other 

Federal initiatives and to allow for the efficient and secure flow of ocean transportation. 

Other Significant Activity 

The Port of Los Angeles and Port of Long Beach Proposed Clean Trucks Program, and FMC 

Agreement No. 201170, Los Angeles and Long Beach Port Infrastructure and Environmental 

Programs Cooperative Working Agreement and FMC Agreement No. 201178, Los 

Angeles/Long Beach Port/Terminal Operator Administration and Implementation Agreement, 

Docket No. 08-05 

On September 24, 2008, the Commission initiated FMC Docket No. 08-05, an investigation to 

determine whether certain practices of the Ports violate the Shipping Act of 1984. The Ports are 

members of the Los Angeles and Long Beach Port Infrastructure and Environmental Programs 

Cooperative Working Agreement (FMC Agreement No. 201170), currently on file with the 

Commission, that permits them to discuss, consult, and agree on the establishment and 

implementation of programs and strategies to improve port-related transportation infrastructure 

and to decrease port-related air pollution. Practices under investigation include: the mandate, on 

a phased-in basis, that Licensed Motor Carriers (LMCs) which serve the Port of Los Angeles 

(Port) utilize only employee drivers and not independent owners and operators; the ban on 

independent owner-operators providing drayage service at the Port; Port payments to certain 

motor carriers as an incentive to provide drayage service at the Port, but not to other similarly 

situated motor carriers; exemption of some cargo owners from paying a Clean Truck Fee but not 

others despite the fact that their cargo is moved in compliant trucks; the requirement that motor 

carriers providing container drayage service at the Port submit an application for a concession, 

but not publishing standards or criteria by which such applications will be granted or denied; 

and, refusal to deal or negotiate with motor carriers otherwise authorized to provide drayage 

service at the Port who conduct their port operations using independent owner-operators. This 

proceeding is distinct from the Commission’s section 6(g) injunction proceeding in the U.S. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 46
   

             

Federal Maritime Commission

District Court for the District of Columbia discussed above (i.e., Case No. 08-1895). On July 28, 

2009, the Commission’s Bureau of Enforcement filed a motion to dismiss this proceeding, to 

which the Ports replied in support. On August 21, 2009, the Commission issued an order 

granting the motion due to significant changes in the current circumstances, including the 

preliminary injunction issued against the employee driver requirement in unrelated litigation in 

the U.S. Court of Appeals for the Ninth Circuit and the U.S. District Court for the Central 

District of California. 

Foreign Shipping Restrictions and International Affairs 

The OGC is responsible for the administration of the Commission's international affairs program. 

The OGC monitors potentially restrictive foreign shipping laws and practices, and makes 

recommendations to the Commission for investigating and addressing such practices. The 

Commission has the authority to address restrictive foreign shipping practices under section 19 

of the 1920 Act and the Foreign Shipping Practices Act. Section 19 empowers the Commission 

to make rules and regulations governing shipping in the foreign trade to adjust or meet 

conditions unfavorable to shipping. The FSPA directs the Commission to address adverse 

conditions that affect U.S. carriers in foreign trade and that do not exist for foreign carriers in the 

U.S. 

In fiscal year 2009, the Commission continued to monitor potentially restrictive shipping 

practices of the Government of Japan, including the effects of amendments to the Port 

Transportation Business Law enacted in 2000 and 2005. The Commission continued to receive 

and evaluate semiannual reports from United States-flag and Japanese-flag vessels operating in 

the trades with Japan pursuant to its proceeding in Docket No. 96-20, Port Restrictions and 

Requirements in the United States/Japan Trade. OGC staff served as technical advisors to the 

U.S. delegation to the semiannual U.S.-Japan Regulatory Reform talks held in Washington, D.C. 

in April 2009. 

The OGC also pursued informally several matters that involved potentially restrictive foreign 

practices including new legislation, new interpretations of existing legislation, new regulations of 

non-domestic carriers’ terminal handling charges and implementation by the People’s Republic 

of China of new requirements on carriers to file tariff and service contract rates with a quasigovernmental entity and for that entity to establish a freight index based upon information 

received. OGC also provided expert assistance relating to non-ratemaking agreements among 

vessel-operating common carriers for the purpose of discussion by the United States’ delegation 

at the Asian-Pacific Economic Cooperation conference in Singapore in July 2009. 

Another responsibility of the OGC is the identification and verification of controlled carriers 

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

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

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

recommendations to the Commission regarding the status of potential controlled carriers. The 

OGC, in conjunction with other Commission components, also monitors the activities of 

controlled carriers. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 47
   

             

   

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

The OGC continues to take the lead in accomplishing the agency's performance goals relating to 

eliminating restrictions that unjustly disadvantage U.S. interests. OGC monitors foreign laws 

and practices to determine whether there are any unjust non-market barriers to trade. Where 

appropriate, the OGC will recommend Commission action. 

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$1,235.73 $1,235.73 $1,235.73

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 0.00 0.00

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission 

Formal Proceedings

Ethics

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE:	 Ethics 0.00 0.00 0.00

Cost:	 Salaries & Benefits $0.00 $0.00 $0.00

Non‐Personnel Expenses $0.00 $3,466.86 $3,707.19

Total Cost $0.00 $3,466.86 $3,707.19

Designated Agency Ethics Official 

The Designated Agency Ethics Official is administratively within the Office of the Chairman, 

but the position is performed presently as a collateral duty by an attorney in the OGC. 

The Ethics Official is responsible for administering public and confidential financial disclosure 

systems in order to prevent conflicts of interest from arising in the execution of the agency's 

regulatory functions. The Ethics Official conducts annual ethics training and provides day-today advice and guidance to ensure compliance with the standards of ethical conduct that apply to 

Executive Branch officials. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 48
   

             

   

   

       

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Office of Administrative Law Judges (OALJ) 

Administrative Law Judges regulate the course of proceedings, conduct hearings, approve 

settlements, and render decisions in adjudicatory proceedings held after receipt of a private 

complaint or when instituted by the Commission. ALJs have authority to administer oaths and 

affirmations; issue subpoenas; rule upon motions and offers of proof; receive evidence; authorize 

depositions; regulate the course of hearings; hold pre-hearing conferences for the settlement or 

simplification of the issues involved; refer matters to mediation when appropriate; dispose of 

procedural requests; act as Settlement Judges in particular cases; and take any other action 

authorized by agency rule or the Administrative Procedure Act. 

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

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

matters assigned in furtherance of the Commission's regulatory functions. Proceedings which 

come before the Office include, but are not limited to, the adjudication of discriminatory or 

unfair and unreasonable practices between various parties subject to the shipping acts, and 

adjudication of shipper complaints. ALJs also can process special docket applications on an asneeded basis. 

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Administrative Law Judges 2.00 2.78 3.00

Cost: Salaries & Benefits $281,657.25 $451,756.43 $442,871.82

Non‐Personnel Expenses $146,432.62 $141,813.99 $127,877.49

Total Cost $428,089.87 $593,570.42 $570,749.31

Federal Maritime Commission 

Formal Proceedings

Office of Administrative Law Judges

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$81,807.40 $325,327.11 $163,614.80

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.43 1.71 0.86

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

At the beginning of fiscal year 2009, 20 formal proceedings were counted as pending (on hand) 

before the OALJs. During the year, six formal proceedings were added. OALJ dismissed one 

formal proceeding and entered Initial Decisions resolving all issues in ten formal proceedings. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 49
   

             

 

Federal Maritime Commission

In one formal proceeding (07-01), OALJ issued a decision approving a settlement agreement 

between two parties, but claims between one of the settling parties and a third party were not 

resolved; therefore, this formal proceeding is counted as OALJ output, but also remains on hand 

at fiscal year end. In one formal proceeding (08-05), OALJ referred a motion to dismiss to the 

Commission (output). Pursuant to instructions from the United States Court of Appeals for the 

District of Columbia Circuit, the Commission dismissed three formal proceedings (02-08, 04-01, 

04-06) counted by OALJ as on hand on September 30, 2008 and not counted as on hand at the 

end of fiscal year 2009. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 50
   

             

Federal Maritime Commission

Equal Employment Opportunity Program 

The Commission’s Office of Equal Employment Opportunity Program follows Federal EEO and 

personnel management laws, concepts, procedures and regulations to develop, implement and 

manage a comprehensive program of equal employment opportunity. The program is statutorily 

mandated with required activities in complaints processing, adjudication, affirmative 

employment program planning, workforce diversity management, special emphasis programs, 

community outreach, monitoring and evaluation. 

The Chairman is responsible for ensuring equal opportunity at the Commission. The Chairman 

has delegated this authority to the Director of Equal Employment Opportunity. Operational 

responsibility for compliance with EEO policies and programs lies with the Commission's frontline managers. The Director of EEO works independently under the direction of the Chairman to 

provide advice to senior staff and management in improving and carrying out policies and 

programs of non-discrimination, workforce diversity and affirmative employment program 

planning. The Director arranges for EEO counseling or ADR for employees who raise 

allegations of discrimination; provides for the investigation, hearing, fact-finding, adjustment, or 

early resolution of such complaints of discrimination; accepts or rejects formal complaints of 

discrimination; prepares and issues decisions for resolution of formal complaints; and monitors 

and evaluates the program’s impact and effectiveness. In addition, the Director represents the 

agency on several intergovernmental committees, coordinates all affirmative program planning 

efforts, directs programs of special emphasis, coordinates the activities of the Selective 

Placement and Federal Equal Opportunity Recruitment Coordinators, and also supervises two 

collaterally-assigned EEO counselors. 

The Office works closely with senior management and with the Commission's OHR to: 

(1) monitor affirmative employment programs; (2) expand outreach and recruitment initiatives; 

(3) improve the representation, career development and retention of women, minorities and 

persons with disabilities; (4) provide adequate career counseling; (5) facilitate early resolution of 

employment-related problems; and (6) develop program plans and progress reports. 

Significant accomplishments in fiscal year 2009 include the following: (1) coordinated ongoing 

“No FEAR Act” (Notification and Federal Employee Antidiscrimination and Retaliation Act of 

2002) training for all new employees; (2) provided EEO and non-EEO related counseling 

assistance to Commissioners, managers, supervisors and employees in addressing issues that 

arose; (3) continued providing support and assistance to managers and supervisors in striving to 

maintain and effectively manage a diverse workforce; (4) supported the ongoing Federal Hiring 

Reform initiative through participation on an FMC “SWAT” team; (5) collaborated with OGC 

and Federal Shared Neutrals to effective utilize mediation as a mechanism to resolve EEO issues 

at the formal stage of the EEO process; (6) continued to administer an effective EEO complaint 

process that strives to attempt resolution of issues informally through collaborative ADR 

techniques at the lowest possible level; (7) held commemorative programs for all FMC 

employees for National Black History Month, Women’s History Month, and Asian Pacific 

Heritage Month while also recognizing Hispanic Heritage Month, Native American Indian 

Heritage Month, and Gay and Lesbian Pride Month through electronic announcement; 

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Federal Maritime Commission

(8) coordinated the agency effort during the FEDS FEEDS FAMILIES national food drive; 

(9) attended various EEO-related training conferences and seminars, including the EXCEL 

Conference and the Human Resource (HR) and EEO in the Federal Workplace Conference; 

(10) prepared all required EEO and affirmative employment program accomplishment reports 

and plans; and (11) continued to administer the EEO process in support of the goal of achieving 

and maintaining a model work environment in accordance with Federal EEO policy and 

affirmative employment goals and objectives. 

Federal Maritime Commission 

Equal Employment Opportunity Program

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Headquarters 0.73 1.00 1.00

Cost: Salaries & Benefits $115,154.06 $156,219.08 $160,155.89

Non‐Personnel Expenses $36,297.35 $70,059.76 $68,029.11

Total Cost $151,451.41 $226,278.84 $228,185.00

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.14 0.57 0.29

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$31,945.90 $130,065.45 $66,173.65

During fiscal years 2010 and 2011, the Office will continue all existing programs and initiate 

additional activities designed to increase an understanding of EEO concepts and principles, 

including monitoring workforce diversity, conducting diversity training, outreach, retention, 

career development initiatives, administering a barrier analysis as part of Management Directive 

715 (MD-715) requirements, orchestrating interactive mediation training for all interested FMC 

employees, and administer mandatory No FEAR Act training. MD-715 is the policy guidance 

which the Equal Employment Opportunity Commission provides to Federal agencies for their 

use in establishing and maintaining effective programs of equal employment opportunity under 

Section 717 of Title VII of the Civil Rights Act of 1964 (Title VII), as amended, 42 U.S.C. 

2000e et seq., and Section 501 of the Rehabilitation Act of 1973 (Rehabilitation Act), as 

amended, 29 U.S.C. 791 et seq. 

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Inspector General Program 

The Office of Inspector General (OIG) operates pursuant to the Inspector General Act of 1978 

(1978 Act) (5 U.S.C. App. 3), as amended in 1988, and by the Inspector General Reform Act of 

2008 (Reform Act) (5 U.S.C. app. 8G). The 1988 amendments created additional statutory 

Offices of Inspector General at various designated Federal entities, including the Federal 

Maritime Commission. The Reform Act further enhanced the independence of Office of 

Inspectors General by adding IG compensation, staffing and removal provisions. 

The purpose of the 1978 Act, as amended, and as applicable to the FMC, is to create an 

independent and objective unit to conduct audits; review operations and programs; investigate 

possible fraud, waste and mismanagement of resources; and promote economy, efficiency and 

effectiveness in programs and operations administered by the FMC. 

The OIG is staffed by an IG, an Assistant Inspector General for Audit and an IG Counsel / Chief 

Investigator. 

The IG works independently under the general supervision of the Chairman. The IG does not 

report to, and is not subject to supervision by, any other Officer or employee of the FMC. The 

OIG has Memorandums of Understanding with Office of Inspectors General at the U. S. Social 

Security Administration for investigative assistance and the Federal Trade Commission for audit 

quality assurance support. In addition, the Office utilizes the expertise of private sector 

accountants and information security analysts to assist in performing specialized audits and 

reviews. 

During fiscal year 2009, the OIG issued two semiannual reports to Congress discussing the 

Office’s audit and investigative activity for the fiscal year. OIG individual reports included an 

audit of the agency’s fiscal year 2008 financial statements and a companion report to 

management containing financial-related findings and recommendations resulting from the audit. 

The OIG also issued an evaluation report on information security, six separate reports to 

management on time and attendance practices in select FMC bureaus and offices, and performed 

a program inspection of the agency’s checkout process. 

On the investigative side, the OIG processed 42 complaints received on the office’s hotline and 

anonymous e-mail link. OIG opened one preliminary investigation based on information 

provided by a member of the maritime industry. 

During the year, the OIG implemented several provisions pertaining to the Reform Act, 

including revising an internal Commission Order on OIG processes and procedures to reflect 

Reform Act requirements and working with the agency’s webmaster to provide a direct link to 

the OIG’s website from the FMC’s homepage. 

The OIG also coordinated with FMC program staff to provide assistance to other Federal 

agencies. For example, the OIG arranged a briefing by the Office of Operations (including the 

Bureau of Enforcement and the Bureau of Certification and Licensing) for OIG agents from the 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 53
   

             

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Export-Import Bank of the United States. Also during the period, the OIG requested assistance 

from BTA on behalf of the U.S. Army Criminal Investigation Division pertaining to an ongoing 

investigation. 

The OIG responded to the House Committee on Oversight and Government Reform, Ranking 

Minority Member’s request, regarding open (unimplemented) OIG recommendations. On a 

separate matter, the IG briefed Senate Commerce Committee staff, at staff’s request, on 

background information concerning agency and OIG program activities. 

In addition to these audit and investigative activities and initiatives, the IG staff participated in 

several activities pertaining to the Council of Inspectors General on Integrity and Efficiency, 

(CIGIE), including actively serving on the Legislation Committee where IG staff reviewed and 

commented on several legislative initiatives affecting the IG community. The OIG also 

performed a peer review of the audit quality control policies and procedures at a sister OIG from 

the U.S. Election Assistance Commission. 

During fiscal years 2010 and 2011, the OIG will continue to place a high priority on audits and 

reviews with the objective of improving agency programs and operations. The OIG will 

complete statutorily-required reviews to include separate audits of the FMC’s fiscal years 2010 

and fiscal year 2011, financial statements and an evaluation of the agency’s information security 

program and privacy assurance controls, as required by the Federal Information Security 

Management Act, continue site visits to FMC area offices to better understand regulatory and 

programmatic issues and concerns from a field office perspective and continue to focus on 

reviews of FMC mission-based programs. 

The OIG will continue to actively participate in IG community activities and maintain 

membership in the CIGIE, the Council of Counsels to Inspectors General (CCIG) and the 

Federal Audit Executive Council (FAEC). The OIG will continue to work with the OMB, 

CIGIE, CCIG and FAEC on joint projects which affect the IG community. The Office will also 

continue to keep the Chairman, Commissioners, OMB and the Congress fully informed 

regarding its audit and investigative activities. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 54
   

             

   

           

           

   

           

           

       

   

         

         

     

     

     

   

Federal Maritime Commission

Federal Maritime Commission 

Inspector General Program

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Inspector General 2.50 2.97 3.00

Field 0.00 0.00 0.00

Cost: Salaries & Benefits $355,064.91 $498,704.04 $522,128.86

Non‐Personnel Expenses $215,750.07 $264,025.01 $257,714.83

Total Cost $570,814.98 $762,729.05 $779,843.69

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 0.00 3.00

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$0.00 $0.00 $779,843.69

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 55
   

             

     

     

       

   

     

   

   

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Office of Operations (OPs) 

Operations

Federal Maritime Commission 

FY 2009

Actual

FY 2010

Enacted

FY 2011

Request

FTE: Office of the Director

Area Representatives

Bureau of Trade Analysis

Bureau of Certification and Licensing

Bureau of Enforcement

Total FTEs

3.77

8.08

19.65

17.12

11.85

60.47

4.00

8.00

20.00

19.00

12.00

63.00

4.00

8.00

20.00

19.00

12.00

63.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$7,705,349.24

$2,617,872.83

$10,323,222.07

$8,089,175.23

$2,957,438.56

$11,046,613.79

$8,536,330.53

$2,906,317.75

$11,442,648.28

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

15.00 42.32 5.68

FY 2011 Cost by FMC Strategic Goal

$2,740,965.00 $7,519,656.51 $1,182,026.77

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Office of the Director 

The Director of Operations, as a senior staff official, is responsible to the Chairman for the 

management and coordination of the: 

Bureau of Trade Analysis; 

Bureau of Certification and Licensing; 

Bureau of Enforcement; and 

Area Representatives.
 

OPs oversees the development and operation of various programs and recommends new 

programs and necessary changes in staff objectives. The Director of OPs has been designated 

as the agency’s Performance Improvement Officer (PIO). Subject to the direction of the 

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

development of the agency’s goals, plans and performance reports. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 56
   

             

     

   

     

     

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

In the PIO capacity, in fiscal year 2009, the OPs finalized the agency’s strategic plan for 2010-

2015, which revised the agency’s mission statement and strategic goals. The plan reflects a more 

streamlined and mission-focused description of the agency, its functions, and direction to achieve 

these goals. It highlights the Commission’s primary program activities and sets performance 

goals designed to measure the impact of those activities on the shipping public. The OMB 

reviewed the plan, and after opportunity for public comment in fiscal year 2008, the final plan 

was adopted by the Commission on December 3, 2008 and submitted to Congress. 

FY 2009 FY 2010

Actual Enacted

Operations (Including Area Representatives)

Office of the Director

Federal Maritime Commission 

FY 2011

Request

FTE: Office of the Director 3.77 4.00 4.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$584,477.04

$320,824.91

$905,301.95

$594,885.21

$404,305.44

$999,190.65

$622,025.30

$417,873.58

$1,039,898.88

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.20 2.15 0.65

FY 2011 Cost by FMC Strategic Goal

$311,969.66 $558,945.65 $168,983.57

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

In fiscal year 2009, the Office led the operational Bureaus, through oversight and guidance, 

towards the accomplishment of many programmatic achievements. The Office continued work 

with staff to review and report to the Commission on emerging industry changes in all sectors. 

This fiscal year saw a continuing high volume in the number of OTI licenses sought and granted 

as well as an increase in the number of MTO discussion agreements filed. In fiscal year 2009, 

the Commission considered agreements including the Los Angeles/Long Beach/Terminal 

Operator Administration and Implementation Agreement, and the Los Angeles and Long Beach 

Port Infrastructure and Environmental Programs Cooperative Working Agreement. OPs 

coordinated and assisted in the Bureaus’ recommendations and consideration of these highprofile agreements. The activities of the various Offices are described below. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 57
   

             

Federal Maritime Commission

During fiscal year 2009, the OPs continued to lead the Bureaus of Enforcement and Certification 

and Licensing in the review and coordination of compliance and enforcement policy. OPs 

worked with other Commission offices toward the integration and modernization of agency 

databases and the automation of key agency forms to facilitate ease of access and efficiency of 

agency processes. 

The Commission’s ARs act as liaisons with the shipping industry at a local level and as a 

resource to all Bureaus and Offices of the Commission. The Commission maintains a presence 

in Los Angeles, South Florida, New Orleans, New York, Houston and Seattle through ARs based 

in each of those cities. These representatives also serve other major port cities and transportation 

centers within their respective areas. In addition to monitoring and investigative functions, ARs 

represent the Commission within their jurisdictions, provide liaison between the Commission 

and the maritime industry and the shipping public, collect and analyze information of regulatory 

significance, and assess industry conditions. Liaison activities involve cooperation and 

coordination with other governmental agencies and departments, providing regulatory 

information and relaying Commission policy to the shipping industry and the public, and 

handling informal complaints within each representative's area of responsibility. The ARs also 

work on Commission outreach through seminars, participation at various conferences and trade 

shows, presentations, and local community contacts. 

In fiscal year 2009, hundreds of informal complaints were handled by the ARs. These 

complaints often involved unlawful activity that could not be resolved and compliance achieved 

informally, and in other cases as required, investigations were opened by OPs. If a potential 

violation remained unresolved, a proceeding was referred to the Bureau of Enforcement for 

further action as described later in this report. 

The ARs were instrumental in broadcasting public service announcements published by the OPs 

for each major port area in fiscal year 2009, warning against the use of unlicensed OTIs. The 

Area Representatives contributed to this effort through selection of appropriate local 

publications. These warnings facilitated numerous inquiries and reports to the ARs regarding 

licensed and unlicensed OTI activity and an apparent decrease in complaints about the activities 

of unlicensed entities in communities in which they were published. 

In fiscal year 2009, the ARs, with the assistance of the BCL, made presentations on OTI 

licensing requirements and compliance for recently licensed companies, current applicants and 

persons interested in becoming licensed, to audiences in Florida, Oregon, and Texas. Area 

Representatives also briefed or addressed key officials of the New York City Police Department, 

New Jersey State Police, Houston Police Department, Association of Ship Brokers and Agents, 

Steering Committee of Sea Cargo Americas, University of Miami School of Law, International 

Cargo Committee of the Greater Miami Chamber of Commerce, Columbia River Customs House 

Brokers and Freight Forwarders, Export-Import Bank Office of Inspector General, National 

Defense Transportation Association, and U.S. Customs and Border Patrol. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 58
   

             

   

   

           

           

     

           

           

       

   

         

         

     

     

     

   

Federal Maritime Commission

Federal Maritime Commission 

FY 2009 FY 2010

Actual Enacted

Operations (Including Area Representatives)

Area Representatives

FY 2011

Request

FTE: Area Representatives 8.08 8.00 8.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$1,171,993.24

$500,109.86

$1,672,103.10

$1,184,601.04

$459,551.48

$1,644,152.52

$1,230,203.50

$439,324.04

$1,669,527.54

0.08

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.72 7.20

FY 2011 Cost by FMC Strategic Goal

$150,257.48 $1,502,574.78 $16,695.28

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

The ARs participated in task forces and initiatives sponsored by local law enforcement agencies, 

the U.S. Department of Justice, the Department of Homeland Security, through Customs and 

Border Patrol and Immigration and Customs Enforcement, and the Department of Commerce. 

This participation facilitates sharing of information on illegal activities. 

The Office’s key objectives for fiscal years 2010 and 2011 include instituting the Commission’s 

policies by refining and enhancing programs and operations. Upcoming challenges that will 

require coordination and policy oversight of the Office include review of regulations affecting 

those entities recently impacted by both the economic downturn and various legal challenges. In 

particular, the FMC’s rules for PVOs and OTIs will be closely examined. OPs will work with 

the OA in pursuit of integrated and automated agency information systems, including 

enhancements to currently available electronic applications such as the FMC-18. In cooperation 

with the OS, OPs will build upon outreach efforts and raise public awareness of agency 

regulations and services. Through the ARs, OPs will use investigative, liaison and outreach 

functions to continue to increase protection of the shipping public from unlawful practices in the 

marketplace. The ARs will be instrumental in any review of rules concerning OTIs or OTI 

licensing. OPs will continue to refine the Commission’s strategic and annual performance 

planning and reporting process, working to further focus performance goals and measures. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 59
   

             

Federal Maritime Commission

Bureau of Trade Analysis (BTA) 

BTA plans, develops, and administers the following activities: (1) monitoring general trade 

conditions and economic developments in liner shipping; (2) overseeing individual and 

concerted carrier and MTO activity; (3) developing and analyzing economic studies in support of 

the Commission's regulatory responsibilities; (4) processing and analyzing carrier and marine 

terminal agreements; (5) providing expert economic testimony and support in formal 

proceedings, particularly regarding unfair foreign shipping practices; (6) processing, reviewing, 

and monitoring confidential service contracts and amendments (filed by ocean common carriers, 

conferences, and agreements), and NVOCC service arrangements (NSAs); (7) reviewing 

requests to correct clerical or administrative errors in service contracts; (8) ensuring that 

statements of certain essential terms associated with service contracts are published in tariffs and 

made available to the public; (9) auditing tariff publishing systems to ensure that tariffs are 

accessible and accurate; (10) processing FMC-1 registration forms submitted by carriers and 

conferences and posting and updating the location of carrier tariffs on the Commission’s website; 

(11) acting on special permission applications to deviate from tariff publishing rules; 

(12) monitoring the activities of controlled carriers; and (13) supporting other Commission 

components with regard to regulatory requirements. 

The Bureau furnishes support in formal proceedings arising in the areas of its expertise. The 

Bureau provides analyses and recommendations on petitions, information demand orders, and 

Commission-initiated rulemakings, and provides expert witness testimony in investigations of 

potential statutory violations and unfair foreign shipping practices. Further, the Bureau prepares 

economic testimony in Commission investigations. 

In fiscal year 2009, BTA participated in the following matters: (1) acting as expert witness in the 

Commission’s litigation in the U.S. District Court pursuant to section 6(h) of the Shipping Act of 

1984 against FMC Agreement No. 201170; (2) conducting semiannual meetings with agreement 

representatives pursuant to the settlement terms of Fact Finding Investigation No. 25, Practices 

of Transpacific Stabilization Agreement Members Covering the 2002-2003 Service Contract 

Season; and (3) issuance of Section 15 Orders to VOCCs in the U.S.-Australia and New Zealand 

northbound and southbound trades. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 60
   

             

     

   

       

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Office of the Director 4.38 4.00 4.00

OSCT 5.27 6.00 6.00

OECA 6.00 6.00 6.00

Agreements 4.00 4.00 4.00

Total FTEs 19.65 20.00 20.00

Cost: Salaries & Benefits $2,314,628.10 $2,464,296.14 $2,574,828.05

Non‐Personnel Expenses $765,838.72 $885,182.13 $866,779.16

Total Cost $3,080,466.82 $3,349,478.27 $3,441,607.21

Federal Maritime Commission 

Bureau of Trade Analysis

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$1,872,780.73 $1,129,103.63 $439,722.85

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

11.00 6.80 2.20

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

The three operating Offices under the supervision of the Bureau Director are: the Office of 

Service Contracts and Tariffs (OSCT), the Office of Economics and Competition Analysis 

(OECA), and the Office of Agreements (OAGR). The OSCT is responsible for processing, 

reviewing, and monitoring confidential service contracts and NSAs, and ensuring that the 

statements of certain essential terms associated with service contracts and NSAs are published 

and made available to the public. Further, OSCT ensures that carrier tariffs are accessible and 

accurate; that the location of carrier tariffs as submitted in FMC-1 registration forms is correct; 

and that those locations are published on the Commission’s website and updated periodically. 

OECA develops and administers programs overseeing individual and concerted carrier activities, 

carriers' dealings with shippers and intermediaries, activities of controlled carriers in U.S. foreign 

commerce, foreign shipping practices, and overall U.S. liner trade conditions. OAGR is 

responsible for processing and analyzing carrier and marine terminal agreements filed with the 

Commission and maintaining various agreement databases. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 61
   

             

     

   

       

   

         

         

     

     

     

   

           

           

       

     

           

           

Federal Maritime Commission

Federal Maritime Commission 

FY 2009

Actual

Bureau of Trade Analysis

Office of the Director

FY 2010

Enacted

FY 2011

Request

FTE: Office of the Director 4.38 4.00 4.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$689,001.47

$765,838.72

$1,454,840.19

$601,374.04

$885,182.13

$1,486,556.17

$624,859.91

$866,779.16

$1,491,639.07

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.10 1.20 0.70

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$783,110.51 $447,491.72 $261,036.84

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Office of Service Contracts and Tariffs 

The Shipping Act allows ocean common carriers, either individually or through agreements, to 

negotiate and execute service contracts with one or more shippers or shippers’ associations. 

Under service contracts, shippers make a commitment to provide a certain volume or portion of 

cargo over a fixed period of time, and carriers commit to a specified rate and a defined service 

level. These contracts are filed confidentially with the Commission in the automated service 

contract filing system (SERVCON). In January 2005, the Commission permitted NVOCCs to 

enter into NSAs with their shipper customers. These are also filed in SERVCON. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 62
   

             

   

       

   

         

         

     

     

     

   

           

           

       

           

           

           

 

Federal Maritime Commission

Federal Maritime Commission 

Bureau of Trade Analysis

Office of Service Contracts and Tariffs (OSCT)

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: OSCT 5.27 6.00 6.00

Cost: Salaries & Benefits $496,632.59 $663,054.38 $687,714.07

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $496,632.59 $663,054.38 $687,714.07

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.80 2.30 0.90

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$320,933.23 $263,623.73 $103,157.11

During fiscal year 2009, there were 45,328 service contracts and 412,570 contract amendments 

filed into the Commission’s automated SERVCON system. OSCT recorded 7 new VOCCs filing 

registrations in fiscal year 2009. Since NSAs were first allowed, more than 796 entities have 

registered to file NSAs. During fiscal year 2009, 1,289 original NSAs and 2,389 amendments 

were filed by 62 NVOCCs. 

The Shipping Act requires carriers and conferences to publish their tariffs electronically. Tariffs 

are to be made available, typically through internet access, to any person, without time, quantity, 

or other limitation. Carriers are permitted under law to charge a reasonable fee for providing 

public access to their tariffs. OSCT reviews and monitors the accessibility and accuracy of these 

private systems, and reviews published tariff material for compliance with the Shipping Act’s 

requirements. 

OSCT collects and processes information provided by carriers, MTOs, and OTIs concerning, 

among other things, the Internet location (URL) of their tariffs and schedules via Form FMC-1 

filings. In fiscal year 2009, OSCT received, processed and reviewed 1,190 Form FMC-1 filings. 

These Internet locations in turn are made available to the shipping public via the Commission’s 

website. Last year, OSCT posted 4,709 active/current tariff/schedule internet addresses to the 

agency’s website. Also, in fiscal year 2009, OSCT posted the historical tariff addresses for 

2,744 inactive/cancelled tariffs. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 63
   

             

 

 

Federal Maritime Commission

Unlike carriers, who are required to maintain a tariff publication, MTOs have the option of 

publishing schedules of their rates, regulations, and practices, including limitations of liability 

for cargo loss or damage. Last year, 152 MTOs made their schedules available to the public. At 

the end of the year, there were 4,225 NVOCCs, 326 VOCCs, 6 conferences and 152 MTOs with 

FMC-1 forms on file indicating the location of their tariffs or MTO schedule publications. 

OSCT also evaluates applications for special permission to deviate from tariff publishing rules 

and regulations. During fiscal year 2009, OSCT received and processed two special permission 

applications. 

OSCT monitors the tariff and service contract activity of controlled carriers. Under the Shipping 

Act, no controlled carrier may maintain rates or charges in its tariffs or service contracts that are 

below a level that is just and reasonable, or establish or maintain unjust or unreasonable 

classifications, rules, or regulations in its tariffs or service contracts. In addition to monitoring 

the activities of known controlled carriers, the Bureau reviews trade publications to identify 

carriers that might be controlled by a foreign government. No changes to the Commission’s prior 

classifications of controlled carriers were made in fiscal year 2009. 

Office of Economics and Competition Analysis 

To keep the Commission apprised of current trade conditions, emerging commercial and 

economic trends, and the impact of regulations affecting ocean liner transportation, OECA 

prepares studies and profiles of major trades, monitoring reports, economic analyses, and 

agreement/carrier profiles, and undertakes special projects to identify and track relevant 

competitive and economic activity in major U.S. trade lanes. The Bureau’s monitoring activities 

include surveillance programs to identify: (1) concerted activity without an effective agreement 

on file with the Commission, or concerted activity exceeding the scope or authority of an 

effective agreement; (2) activity contravening the mandatory conference agreement provisions 

required under 46 U.S.C. 40303; (3) the potential for, or emergence of, unreasonable service 

reductions/cost increases that contravene the general standard in 46 U.S.C. 41307(b)(1); 

(4) controlled carrier activity in accordance with the statutory requirements in 46 U.S.C. 40701-

40706; (5) the occurrence of prohibited activities as proscribed in 46 U.S.C. 41101-41106; 

(6) economic harm associated with unfair trade practices of foreign governments; and 

(7) whether the continued operation of an effective agreement in its present form is consistent 

with the statutes and current Commission decisions, rules, and policies. Activities conducted 

under certain types of operational agreements among MTOs, particularly those with rate 

authority, also are monitored. The Bureau also develops profiles of major trade areas to assess 

carrier behavior under agreements, to determine compliance with regulatory requirements, and to 

ascertain the competitive posture of carriers, shippers, and shippers’ associations within each 

trade. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 64
   

             

   

       

           

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Federal Maritime Commission 

Bureau of Trade Analysis

Office of Economics and Competition Analysis (OECA)

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: OECA 6.00 6.00 6.00

Cost: Salaries & Benefits $742,579.38 $781,312.63 $806,872.48

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $742,579.38 $781,312.63 $806,872.48

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

3.60 2.05 0.35

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$484,123.49 $275,681.43 $47,067.56

In fiscal year 2009, BTA administered its agreement oversight activities relating to ocean 

common carriers and marine terminal operators and prepared various reports and analyses. 

These included: (1) in conjunction with other Offices and Bureaus, preparing a competitive 

impact assessment of the Clean Trucks Program that was devised as part of the Clean Air Action 

Plan under the Los Angeles and Long Beach Port Infrastructure and Environmental Programs 

Cooperative Working Agreement; (2) preparing expert testimony in support of the Commission’s 

challenge in U.S. District Court to the Los Angeles and Long Beach Port Infrastructure and 

Environmental Programs Cooperative Working Agreement; (3) collecting and analyzing specific 

pricing, financial and operational data from carriers serving the trade between the U.S. and 

Australia/New Zealand following the issuance of an order under section 15 of the Shipping Act 

to address concerns about competitive conditions in the trade that may affect prices and services 

to an unreasonable extent; (4) preparing a formal request for additional information for the 

Commission following the filing of an amendment by the Transpacific Stabilization Agreement 

that would have allowed the agreement parties to discuss the development of a plan to jointly 

rationalize capacity in the nation’s largest inbound liner trade; (5) defining the parameters of a 

study that will examine the impact of eliminating antitrust immunity in the U.S.-Europe trades as 

a result of the repeal by the EU of the block exemption [Council Regulation (ECC) No. 4056/86] 

for liner shipping conferences in the EU trades, with the study design allowing input from the 

shipping industry and others; (6) monitoring of controlled carriers to ensure that U.S. trades 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 65
   

             

 

Federal Maritime Commission

remain substantially free of unfair trading practices of foreign governments; and (7) updating 

financial figures for the recommendation in FMC Docket No. 02-15, Passenger Vessel Financial 

Responsibility, in order to provide estimates of the weighted average cost of capital for two large 

cruise lines using the latest publicly available financial data for 2008. 

During fiscal year 2009, OECA prepared several formal requests for additional information for 

the Commission to issue to the parties of several agreements, completed the initial review and 

competitive analysis of newly filed agreements and amendments to agreements, designed and 

imposed special reporting requirements on several terminal agreements, and assisted the 

Commission in preparing for hearings before Congress and for official speaking engagements. 

OECA also receives and reviews minutes of meetings and reports filed by various agreement 

parties. OECA reviews these reports for filing compliance and uses the data to support its 

monitoring activities. In fiscal year 2009, the Bureau received and reviewed 1,050 sets of 

minutes, 368 monitoring reports, 167 Voluntary Service Contract Guidelines (VSCGs), 24 ad 

hoc reports, and 5 applications for waivers to the minutes and/or monitoring report filing 

requirements. 

In fiscal year 2009, several carrier agreements began using, on a voluntary basis, a web-based 

system for filing meeting minutes, monitoring reports and VSCGs under a pilot program begun 

in fiscal year 2008. Most documents required to be filed are now being received in this manner, 

and the Bureau hopes to formalize and expand this process with the assistance of the OIT. 

Office of Agreements 

The focus of OAGR is to analyze the potential impact carrier or terminal agreements will have 

on competition, in particular whether it is likely that agreements will result in an unreasonable 

increase in transportation cost or decrease in service. 

During fiscal year 2009, OAGR received 158 agreement filings, including amendments to 

existing agreements. The Bureau reviewed, evaluated, and processed 156 filings, including 6 

pending from fiscal year 2008. The number of agreement filings in 2009 was down by 14% from 

2008. In 2009, there were 224 effective carrier agreements on file, a decrease of 2 from fiscal 

year 2008. The number of carrier agreements on file has declined slightly since fiscal year 2004, 

when there were 232 agreements on file. Operational agreements, those involving the sharing of 

vessel space, continued to be the predominant type of agreement on file, accounting for 71% of 

agreements on file in 2009. Conferences, once the dominant pricing forum, have lost much of 

their influence over the last ten years. Since fiscal year 2000, the number of conferences has 

fallen 78%, from 23 to 5. Conferences accounted for just 2% of all effective carrier agreements 

in 2009. 

The number of marine terminal agreements on file continues to fall as terminal operators take 

advantage of the Commission’s filing exemption for terminal leases and terminal services 

agreements. In 2009, there were 164 terminal agreements on file, down from 182 at the end of 

2008. Although the decline in the number of MTO agreements can be attributed mostly to the 

filing exemptions, OAGR ascertained that a number of older agreements that were on file had 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 66
   

             

   

       

   

         

         

     

     

     

   

           

           

       

   

           

           

Federal Maritime Commission

expired or were terminated without notice to the agency. The foregoing notwithstanding, the 

Bureau has seen an increase in the number of new discussion agreements among MTOs, 

especially those concerning environmental issues. Since fiscal year 2005, the number of MTO 

discussion agreements on file has more than doubled, from 7 to 19. This increase represents the 

largest percentage gain by any class of MTO agreement during that period. During that same 

time frame, the number of MTO conferences dropped by 35%, from 14 to 9. 

FY 2009

Actual

Bureau of Trade Analysis

Office of Agreements

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Agreements 4.00 4.00 4.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$386,414.66

$0.00

$386,414.66

$418,555.09

$0.00

$418,555.09

$455,381.59

$0.00

$455,381.59

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

2.50 1.25 0.25

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$284,613.49 $142,306.75 $28,461.35

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Agreement regulations enacted in fiscal year 2005 allowed for low market-share agreements 

without pricing or capacity rationalization authorities to become effective upon filing. From 

fiscal year 2005 through fiscal year 2007, the percentage of new agreements filed that qualified 

for the low market share exemption increased from 12% to 33%. Since 2007, the percentage of 

agreement filings that qualified for the exemption has fallen to 15% in 2009. 

During the fiscal year, BTA analyzed the potential impacts of a number of significant agreement 

filings, including, for example, two discussion agreements (the Port of Seattle/Terminal 

Operator Agreement and the Oakland MTO Agreement) involving marine terminal operators in 

the Ports of Seattle and Oakland relating to the implementation of clean truck programs at the 

respective ports; a discussion agreement among heavy lift carriers (the United States 

Supplemental Agreement to the Heavy Lift Club Agreement) concerning commercial issues 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 67
   

             

Federal Maritime Commission

facing operators in this niche market; an amendment to the primary pricing agreement in the 

inbound transpacific trades (the Transpacific Stabilization Agreement) seeking to add the 

authority to discuss vessel capacity in the trade; an amendment to a major MTO conference on 

the west coast (the West Coast MTO Agreement) seeking to expand its membership; and a 

cooperative working agreement dealing with implementation of the Ports of Los Angeles’ and 

Long Beach’s clean truck programs. In the face of concerns expressed by the Commission and 

shippers on the potential adverse impact of the Transpacific Stabilization Agreement and the 

West Coast MTO Agreement amendments, the parties thereto withdrew their proposed 

amendments. In addition to the foregoing, BTA analyzed a number of new or amended vesselsharing agreements reflecting the restructuring of services in the face of falling demand for 

services resulting from the downturn in the global economy. 

The Bureau maintains an agreements database and electronic library (e-library) containing up-todate copies of effective agreements. The e-library gives the public direct access to copies of all 

effective and pending agreements, including marked copies of amendments, through the 

agency’s website. The agreements library on the agency’s website averaged 727 hits per month 

during fiscal year 2009. 

In fiscal years 2010 and 2011, the Bureau will continue to monitor service contract, tariff and 

agreement activities, to prepare reports and economic analyses on developments and issues in 

key U.S. trades, to report on the activities of controlled carriers, and to respond to inquiries and 

informal complaints. The Bureau plans to consult with key stockholders to discuss parameters of 

the Commission’s study on the repeal of the EU’s block exemption for liner shipping 

conferences, proposed methodologies, industry interviews, and study milestones. Publication of 

a Notice of Inquiry to gather input and data from interested parties is expected at the end of fiscal 

year 2010. 

The Bureau will also conduct research in support of the statutory standards and requirements of 

relevant Commission regulations and regulatory proposals, and assess the impact and 

effectiveness of current regulations. The Bureau plans to improve its agreements monitoring 

program to address such supply-chain and operational issues as port congestion, security, air 

pollution and environmental concerns that affect local communities and the industry. 

BTA will continue to monitor developments on the EC’s review of its block exemption 

regulations for consortia agreements between carriers [Commission Regulation No. 823/2000]. 

Similarly, the Bureau will monitor and assist other agency Offices in advising the Commission 

on proposals by other Government agencies, foreign governments, or multi-lateral organizations 

for regulatory change or research falling within the Commission’s subject matter expertise. 

The BTA will continue to assist the Commission’s investigative and enforcement initiatives, and 

oversee international trade issues, such as unfair foreign shipping practices, and continue to 

participate with the U.S. Customs and Border Protection in development of the Automated 

Commercial Environmental/International Trade Data System (ACE/ITDS). The Bureau also will 

participate in the Maritime Data Working Group and the Interagency Action Team for the 

National Committee on the Marine Transportation System dealing with data collection and 

information management issues. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 68
   

             

Federal Maritime Commission

BTA's support of formal proceedings during fiscal years 2010 and 2011 will depend on the 

number and subject matter of the proceedings initiated over the period. We anticipate a likely 

increase in workload in this area due to situations and practices that may have been caused or 

exacerbated by the severe global economic downturn which began in late 2008. 

In fiscal year 2011, the Bureau has several program objectives that are either directly related to 

newly automated functions and procedures or that involve the improvement or enhancement of 

current automation. These program objectives must be accomplished in conjunction with the 

OIT. OAGR expects to enhance public access to agreements and to develop and implement 

procedures for the electronic filing of agreements. 

OSCT plans to work with OIT to: (1) improve SERVCON, specifically to modify the Bureau’s 

service contracts analysis tool (SERVCON CAT) to expand its use in investigations and for 

program and research purposes and ensure data filed in SERVCON is adequately indexed and 

searchable; (2) automate OSCT’s FMC-1 program; and (3) automate the filing of SERVCON 

registration forms (FMC-78 and FMC-83) to simplify and expedite the public registration 

process. 

OECA plans to: (1) expand the use of data derived from the Port Import Export Reporting 

Service’s (PIERS) Trade Intelligence system in the review of agreements, and monitoring of 

agreement activities and trade conditions; and (2) implement measures to add value to the 

Bureau’s data collections, including refining the data flags that distinguish between Ocean 

Freight Forwarders and NVOCC shipments and continuing to update records that identify ship 

flag, operator and owner. 

Bureau of Certification and Licensing (BCL) 

BCL licenses U.S.-based OTIs, including OFFs and NVOCCs; receives surety bonds and 

processes registrations for foreign-based (unlicensed) NVOCCs; issues certificates to owners and 

operators of passenger vessels that have evidenced financial responsibility to satisfy liability 

incurred for nonperformance of voyages or for death or injury to passengers and other persons; 

manages programs assuring financial responsibility of OTIs and PVOs by developing policies 

and guidelines, and analyzing financial documents; and develops and maintains information 

systems that support the Bureau’s programs as well as those of other Commission entities. 

The Bureau is composed of two Offices: the Office of Transportation Intermediaries, which has 

responsibility for reviewing and approving applications for OTI licenses, and maintaining and 

updating records about licensees; and the Office of Passenger Vessels and Information 

Processing, which has responsibility for reviewing applications for certificates of financial 

responsibility with respect to passenger vessels, managing all activities with respect to evidence 

of financial responsibility for OTIs and PVOs, and developing and maintaining all Bureau 

databases. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 69
   

             

     

   

           

           

       

           

           

       

   

         

         

     

     

     

   

Federal Maritime Commission

Federal Maritime Commission 

Bureau of Certification and Licensing

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE:	 Office of the Director 4.20 4.00 4.00

OPVIP 5.17 6.00 6.00

OTI 7.75 9.00 9.00

Total FTEs 17.12 19.00 19.00

Cost:	 Salaries & Benefits $1,990,612.60 $2,119,921.54 $2,305,140.29

Non‐Personnel Expenses $567,843.11 $637,576.34 $644,413.97

Total Cost $2,558,455.71 $2,757,497.88 $2,949,554.26

2.25

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$0.00 $2,490,515.04 $459,039.22

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 16.75

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 70
   

             

     

   

       

   

         

         

     

     

     

   

           

           

       

     

           

           

Federal Maritime Commission

FY 2009 FY 2010

Actual Enacted

Bureau of Certification and Licensing

Office of the Director

Federal Maritime Commission 

FY 2011

Request

FTE: Office of the Director 4.20 4.00 4.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$623,930.32

$567,843.11

$1,191,773.43

$594,970.49

$637,576.34

$1,232,546.83

$632,208.37

$644,413.97

$1,276,622.34

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 3.00 1.00

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$0.00 $957,466.76 $319,155.59

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Office of Passenger Vessels and Information Processing 

The Commission administers 46 U.S.C. 44102-44103, which requires evidence of financial 

responsibility for vessels which have berth or stateroom accommodations for 50 or more 

passengers and embark passengers at U.S. ports and territories. The program now encompasses 

202 vessels and 43 operators, which have evidence of financial responsibility coverage in excess 

of $319 million for nonperformance and over $637 million for casualty. Certificates of 

performance cover financial responsibility for indemnification of passengers for nonperformance 

of transportation. This requirement helps prevent unscrupulous or financially weak operators 

from entering or operating from U.S. ports. Some potential operators with unfavorable histories 

may find it difficult or impossible to obtain a bond from a reputable surety company. The 

financial responsibility requirement ensures that liability will be met even after an operator has 

ceased operations and dissolved its corporate existence because the evidence of financial 

responsibility is still valid and available to claimants against the guarantor. Certificates of 

casualty are required to meet any liability that may occur for death or injury to passengers or 

other persons on voyages to or from U.S. ports in the amounts established by the statute. The 

certificates issued pursuant to this program are necessary for U.S. Customs and Border 

Protection’s clearance of thousands of passenger vessel sailings annually. During fiscal year 

2009, the Commission approved and issued 14 casualty certificates and 18 performance 

certificates. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 71
   

             

   

       

   

         

         

     

     

     

   

           

           

       

             

           

           

 

Federal Maritime Commission

Federal Maritime Commission 

Bureau of Certification and Licensing

Office of Passenger Vessels & Information Processing (OPVIP)

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: OPVIP 5.17 6.00 6.00

Cost: Salaries & Benefits $594,419.55 $656,917.91 $703,203.16

Non‐Personnel Expenses $0.00 $0.00 $0.00

Total Cost $594,419.55 $656,917.91 $703,203.16

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 5.45 0.55

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$0.00 $638,742.87 $64,460.29

In conjunction with CADRS, the Bureau offers information and guidance to the cruising public 

throughout the year on passenger rights and obligations regarding monies paid to cruise lines that 

fail to perform voyages. Over the past few years, a number of cruise operators discontinued 

operations or filed for bankruptcy. When cruise lines fail to perform because of bankruptcies or 

other failures, the Commission works closely with the cruise line and the financial responsibility 

provider, if necessary, to facilitate the refund process. The public is kept informed through press 

releases posted on the Commission’s website and advice given to passengers who contact staff. 

During fiscal year 2009, three cruise operators under the PVO program ceased operation and 

none filed for bankruptcy. Staff continued to assist passenger vessel operators and financial 

responsibility providers to resolve passenger claims for several cancelled cruises. 

The Bureau examines PVO activities and operations by monitoring current industry events and 

reviewing cruise lines’ financial records. Oversight of cruise line operators’ operations and 

activities ensures compliance with applicable statutes and Commission regulations. One 

component of the Bureau’s PVO monitoring program is to perform on-site reviews of PVOs’ 

financial responsibility. The on-site review confirms the passenger vessel operator’s compliance 

with the Commission’s reporting requirements relating to UPR and the appropriate amount of 

coverage required to ensure adequate financial responsibility. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 72
   

             

 

 

Federal Maritime Commission

During fiscal year 2009, BCL staff also completed updates to the April 15, 2004 memorandum, 

Docket No. 02-15, Passenger Vessel Financial Responsibility. The staff conducted two on-site 

reviews of cruise lines that established financial responsibility with surety bonds and guarantees; 

and modified its internal procedures to assist staff review of PVOs to ensure cruise line operators 

provide timely and accurate information with respect to the submission of reports and records. 

In fiscal years 2010 and 2011, BCL will continue to examine issues raised in Docket No. 02-15 

and continue to present new options, if available, to the Commission for consideration to ensure 

that PVOs’ financial responsibility requirements for nonperformance provide appropriate 

protection for the public. BCL will continue research into the various means of ensuring 

adequate coverage and prepare additional mechanisms to seek input from the general public on 

the adequacy of current regulations. The Bureau intends to perform an on-site review of a cruise 

line’s unearned passenger revenue each year; conduct quarterly reviews of the PVO monitoring 

files to ensure cruise line operators provide timely and accurate information with respect to the 

submission of reports and records; and make appropriate corrections in staff procedures and 

monitoring schedules. 

Automated Database Systems 

During fiscal year 2009, BCL continued to modernize and expand the Regulated Persons Index 

(RPI), a database containing up-to-date records of licensed OTIs, ocean common carriers, and 

other entities. Among other data uses, the RPI is used to post on the Commission’s website a list 

of compliant OTIs so that carriers and others can ascertain whether an OTI is properly licensed, 

bonded, and if required, has posted the location of its automated tariff. The OTI list also 

indicates whether an NVOCC has filed an optional rider for additional proof of NVOCC 

financial responsibility. Also, in conjunction with the OIT, BCL continues to work towards 

automating the PVO Application Form FMC-131, Application for Certificate of Financial 

Responsibility, and continues to work on a requirements analysis to facilitate the filing of PVO 

applications. 

In fiscal years 2010 and 2011, BCL will continue to work with the OIT to initiate a redesign of 

the OTI list maintained on the Commission’s website to increase accessibility to information, 

facilitate public search capability, and make it more interactive for users. 

Office of Transportation Intermediaries 

OTIs are transportation middlemen for oceanborne cargo moving in the U.S. foreign trades and 

includes two types: NVOCCs and OFFs. NVOCCs are common carriers that do not operate the 

vessels by which transportation is provided. OFFs in the U.S. arrange for the transportation of 

cargo with a common carrier on behalf of shippers and process documents related to those 

shipments. Both NVOCCs and OFFs must be licensed by the Commission if they are located in 

the U.S. NVOCCs doing business in the U.S. foreign trades but located outside the U.S. (foreign 

NVOCCs) may choose to become licensed, but are not required to do so. Whether licensed or 

not, foreign NVOCCs must establish financial responsibility. All NVOCCs must publish 

electronic tariffs which contain the NVOCC’s rates, charges, rules, and practices. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 73
   

             

 

Federal Maritime Commission

To become licensed by the Commission, an OTI must establish that it, through its Qualifying 

Individual (QI), has a minimum of three years of experience in ocean transportation intermediary 

activities in the U.S. and the necessary character to render OTI services as well as establish its 

financial responsibility by means of a bond, insurance, or other instrument. An investigation of 

the applicant’s qualifications addresses such issues as accuracy of information provided in its 

application; integrity and financial responsibility of the applicant; character of the applicant and 

its QI; and length and nature of the QI’s experience handling OTI duties. 

Licensed OFFs must establish financial responsibility in the amount of $50,000, and licensed 

NVOCCs, $75,000. An additional $10,000 of coverage is required for each unincorporated 

branch office in the United States other than the one used to establish a presence. If an OTI is a 

licensed NVOCC, it must file a Form FMC-1 and publish a tariff. Furthermore, non-U.S.-based 

NVOCCs that do not wish to be licensed must provide the Commission with proof of financial 

responsibility in the amount of $150,000, file a Form FMC-1, and ensure a tariff is published at 

the site listed on the Form FMC-1. A non-U.S.-based NVOCC must list in its tariff an agent for 

service of process in the United States, and it must use a licensed OTI for any OTI services 

performed on its behalf in the United States. The financial instrument must be available to pay 

claims against the OTI arising from its transportation-related activities, any order of reparation 

assessed under the Shipping Act, and any judgments for damages against an OTI arising from its 

transportation-related activities under the Shipping Act. 

During fiscal year 2009, the Commission received 482 new OTI applications and 277 amended 

applications, issued 414 OTI licenses and revoked 264 licenses. At the end of the fiscal year, 

1,123 OFFs, 1,709 U.S. NVOCCs, 1,449 joint NVOCC/OFFs, and 51 foreign NVOCCs held 

active OTI licenses. An additional 1,068 foreign NVOCCs maintained proof of financial 

responsibility on file with the Commission, but chose not to be licensed. Overall, there was a 

gain of 96 licensed and/or bonded OTIs, representing a 2% increase from 5,304 OTIs in fiscal 

year 2008 to 5,400 in fiscal year 2009. U.S. NVOCCs may file riders to their existing NVOCC 

bonds to meet financial responsibility requirements imposed by the Chinese government. The 

Commission received 56 riders providing optional proof of financial responsibility for NVOCCs 

serving in the U.S.-China trade. 

The Bureau continues to experience a backlog of applications. Much delay in processing has 

occurred because of incomplete submissions. The Commission is evaluating the licensing 

process in order to streamline its procedures, and to utilize technology to improve productivity. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 74
   

             

   

       

   

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

Federal Maritime Commission 

FY 2009 FY 2010

Actual Enacted

Bureau of Certification and Licensing

Office of Transportation Intermediaries

FY 2011

Request

FTE: Transportation Intermediaries 7.75 9.00 9.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$772,262.73

$0.00

$772,262.73

$868,033.14

$0.00

$868,033.14

$969,728.76

$0.00

$969,728.76

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.00 8.30 0.70

FY 2011 Cost by FMC Strategic Goal

$0.00 $894,305.41 $75,423.35

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

In fiscal year 2009, the Bureau reviewed updates to the electronic filing of an automated Form 

FMC-18, Application for a License as an Ocean Transportation Intermediary, permitting filers 

to complete an OTI application on-line, scan and attach required documents, and submit the 

application electronically. The filing system incorporates significant security features for the 

purpose of protecting applicant data, and detecting and preventing unauthorized system 

intrusions. At the present time, approximately 90% of all incoming OTI applications received 

are from the electronic system. 

In fiscal years 2010 and 2011, BCL will pursue revisions to its electronic application process, 

utilizing a new Enterprise Content Management system. Also, in fiscal year 2010, the Bureau 

will continue its outreach and programs to promote awareness of OTI requirements. In addition, 

BCL plans to evaluate its current rules and regulations regarding OTI licensing requirements to 

ensure that it is protecting the shipping public. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 75
   

             

 

Federal Maritime Commission

Bureau of Enforcement (BOE) 

The BOE has primary responsibility for ensuring compliance with shipping statutes administered 

by the Commission, principally the Shipping Act. The Bureau is actively involved in the 

Commission=s outreach activities and interacts regularly with all segments of the ocean 

transportation industry. The Bureau is also active in maritime security and works closely with 

BCL to promote prompt licensing of all qualified OTIs, and with the Department of Homeland 

Security=s (DHS) CBP to ensure submission of complete and accurate shipping data. Bureau 

attorneys serve as legal advisors to the Director of OPs and to other Bureaus and Offices, and 

may be designated as Investigative Officers in nonadjudicatory fact finding proceedings. 

Additionally, Bureau attorneys work closely with the Commission=s investigatory personnel and 

participate as trial counsel in formal adjudicatory proceedings. BOE monitors all other formal 

Commission proceedings and relevant court actions in order to identify major regulatory issues 

and to advise the Director of OPs and the other Bureaus and Offices. The Bureau participates 

with other Bureaus and Offices in committees and task forces in the development of Commission 

policies, rules, and regulations, and also intervenes in formal complaint proceedings where 

appropriate. 

With investigative personnel, the Bureau monitors and conducts investigations into the activities 

of ocean common carriers, OTIs (NVOCCs and OFFs), shippers, ports, MTOs, and other persons 

to ensure compliance with the statutes and regulations administered by the Commission, thereby 

providing maximum protection to all participants in the ocean transportation shipping industry. 

Activities include: (1) monitoring tariffs, service contracts and NSAs to determine compliance 

with applicable statutes and regulations; (2) reviewing of VOCC and OTI operations, including 

monitoring OTI compliance with bonding requirements and post-licensing and routine 

compliance checks of licensees to determine whether operations conform with regulatory 

requirements; and (3) monitoring operation of carrier and MTO agreements, including review of 

minutes and quarterly reports. Investigations are conducted into alleged violations of the full 

range of statutes and regulations administered by the Commission, including: illegal rebating, 

misdescriptions or misdeclarations of cargo, illegal or unfiled agreements, abuses of antitrust 

immunity, unlicensed OTI activity, untariffed cargo carriage, unbonded passenger vessel 

operations, unlawful MTO activity and various types of consumer abuses, such as failure of 

carriers or intermediaries to carry out transportation obligations resulting in cargo delays and 

financial losses for shippers. Through these activities, the enforcement program supports the 

agency=s objectives of obtaining statutory compliance and ensuring equitable and efficient 

trading conditions and focusing enforcement efforts on activities which have market-distorting 

effects and those which impact most directly on the shipping public. 

BOE prepares and serves notices of violations of the shipping statutes and Commission 

regulations and may compromise and settle civil penalty demands arising out of those violations. 

If settlement is not reached, Bureau attorneys act as prosecutors in formal Commission 

proceedings that may result in settlement or in the assessment of civil penalties. The Bureau also 

participates, in conjunction with other Bureaus, in special enforcement initiatives, fact finding 

investigations, ADR processes, rulemaking efforts, and homeland security issues. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 76
   

             

     

   

           

           

   

           

           

       

   

         

         

     

     

     

   

Federal Maritime Commission

During fiscal year 2009, the Bureau worked to obtain statutory compliance in all major trades 

and with all segments of the transportation industry, i.e., carriers, carrier agreements, MTOs, 

PVOs, and OTIs. The Bureau also initiated actions to address and seek compliance for marketdistorting activities such as various forms of secret rebates and absorptions, misdescriptions of 

commodities and misdeclarations of measurements, illegal equipment substitution, unlawful use 

of service contracts, as well as carriage of cargo by and for untariffed and unbonded NVOCCs, 

and joint carrier activities outside the authority of existing agreements or pursuant to unfiled 

agreements. Particular emphasis was placed on industry service contracting activities to ensure 

fair trading conditions and protection of the public. Most of these malpractice investigations 

result in compromise settlements of civil penalties or are treated as compliance matters and 

closed without action. However, certain investigations of carriers and MTO practices have 

required the institution of formal adjudicatory proceedings in order to pursue remedies under the 

1984 Act. 

FY 2009 FY 2010 FY 2011

Actual Enacted Request

FTE: Office of the Director 11.85 12.00 12.00

Cost: Salaries & Benefits $1,643,638.26 $1,725,471.30 $1,804,133.39

Non‐Personnel Expenses $463,256.23 $570,823.17 $537,927.00

Total Cost $2,106,894.49 $2,296,294.47 $2,342,060.39

$97,585.85

FY 2011 Cost by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Federal Maritime Commission 

2.08 9.42 0.50

Bureau of Enforcement

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

$405,957.13 $1,838,517.41

A major investigation, completed late in fiscal year 2009, into the respective Clean Truck 

Programs of Los Angeles and Long Beach, CA, concerned the impact on the Ports’ users and the 

compatibility of the respective programs with the Ports’ responsibilities under the 1984 Act. The 

Bureau also continued its ongoing investigation of household goods movers allegedly operating 

as unlicensed OTIs, including investigation of the VOCCs and licensed NVOCCs that provide 

service to the alleged unlicensed movers. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 77
   

             

Federal Maritime Commission

In fiscal year 2009, the compliance audit program continued as a major focus. This program, 

conducted from headquarters primarily by mail and telephone, reviews the operations of licensed 

OTIs to assist them in complying with the statutory requirements and the Commission’s rules 

and regulations. The audit program also reviews entities holding themselves out as VOCCs, but 

with no indication of actual vessel operations. At the beginning of fiscal year 2009, 6 audits were 

pending. During the fiscal year, 98 audits were commenced, 99 audits were completed, and 5 

were pending on September 30, 2009. 

At the beginning of fiscal year 2009, 25 enforcement cases were pending final resolution by the 

Bureau, the Bureau was party to 9 formal proceedings, and there were 93 matters pending which 

the Bureau was investigating or for which it was providing legal advice. During the fiscal year, 

14 new enforcement actions were commenced; 19 were compromised and settled, 

administratively closed, or referred for formal proceedings; and 20 enforcement cases were 

pending resolution at fiscal year’s end. Also, 4 formal proceedings were initiated; 5 formal 

proceedings were completed, and 8 were pending at the end of the fiscal year. Additionally, 47 

matters involving investigation or legal advice were received during the fiscal year, 67 such 

matters were completed, and 73 were pending on September 30, 2009. 

In fiscal years 2010 and 2011, the Bureau will continue to pursue market-distorting, fraudulent, 

and anticompetitive practices harmful to the industry and the public and to monitor U.S. trades, 

to the extent that resources permit. The Bureau will continue to pursue initiatives aimed at 

VOCCs and NVOCCs engaged in unfair service contracting practices, particularly those which 

permit improper entities to compete unlawfully with carriers and OTIs operating in compliance 

with U.S. laws, and will continue to expand the OTI monitoring and audit programs. The 

enforcement and monitoring activities will include focusing on the unlawful operations of 

household goods carriers - both licensed and unlicensed - which have increasingly caused 

economic harm to individual consumers, as well as competitive injury to those carriers operating 

lawfully. 

The Bureau will continue to review the operations of MTOs and, together with other 

Commission Bureaus and Offices, will monitor MTO-filed agreements to ensure compliance 

with the Shipping Act and Commission regulations. The Bureau will also continue its ongoing 

monitoring of NVOCC activity involving NSAs. Public outreach efforts will continue to educate 

maritime transportation users and providers with regard to FMC statutes and regulations, and the 

program will continue to improve participation in security issues as they relate to U.S. ocean 

commerce, specifically to include efforts to coordinate the use of available database systems with 

other agencies engaged in homeland security to improve identification of entities providing and 

utilizing maritime transportation services. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 78
   

             

     

     

     

     

   

   

           

           

       

   

         

         

     

     

     

   

           

           

 

Federal Maritime Commission

Administration Program
 

Office of Administration (OA) 

Federal Maritime Commiss

Administration

ion 

FY 2009

Actual

FTE: Office of the Director 3.00

Office of Information Technology 6.98

Office of Human Resources 4.42

Office of Financial Management 5.00

Office of Management Services 5.20

Total FTEs 24.60

Cost: Salaries & Benefits $2,819,573.02

Non‐Personnel Expenses $2,730,324.77

Total Cost $5,549,897.79

FY 2011 FTE by FMC Strategic Goal

FY 2010 FY 2011

Enacted Request

3.93 4.00

7.00 8.00

4.77 4.40

5.00 5.00

5.00 5.00

25.70 26.40

$3,085,704.27 $3,370,977.53

$1,808,877.73 $1,751,470.30

$4,894,582.00 $5,122,447.83

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

3.91 7.68

FY 2011 Cost by FMC Strategic Goal

14.81

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$761,109.87 $1,439,315.26 $2,922,022.71

Office of the Director 

The OA provides administrative support to the program operations of the Commission. OA 

interprets governmental policies and programs and administers these consistent with Federal 

guidelines, including those involving procurement, information technology, financial 

management and human resources. OA initiates recommendations, collaborating with other 

elements of the Commission as warranted, for long-range plans, new or revised policies and 

standards, and rules and regulations with respect to its program activities. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 79
   

             

     

   

     

           

           

       

   

         

         

     

     

     

   

           

           

Federal Maritime Commission

The Director is responsible for the administration and coordination of the: 

Office of Information Technology; 

Office of Human Resources; 

Office of Financial Management; and 

Office of Management Services. 

Many functions and achievements of OA are reflected below in the narratives for these Offices. 

FY 2009

Actual

Administration

Office of the Director

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Office of the Director 3.00 3.93 4.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$396,829.53

$107,489.50

$504,319.03

$594,375.24

$166,936.15

$761,311.39

$656,323.30

$168,432.34

$824,755.64

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.60 1.00 2.40

FY 2011 Cost by FMC Strategic Goal

$123,713.35 $206,188.91 $494,853.38

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

The Director provides administrative guidance to the Offices of the Chairman and 

Commissioners, OS, OGC, OALJ and OPs, and administrative assistance to the OIG and OEEO. 

The Director is the FMC=s Chief Acquisition Officer, Audit Follow-up and Management 

(Internal) Controls Official, Senior Agency Official for Privacy, and Forms Control Officer. The 

Director also represents the FMC as Principal Management Official on the Small Agency 

Council (SAC). As the Chief Financial Officer, the Director provides program oversight for the 

agency=s budget and financial management responsibilities, and ensures agency compliance with 

the Financial Integrity Act, the Antideficiency Act, and the Debt Collection Improvement Act 

(DCIA) of 1996. OA staff act as the point of contact for the Small Business Administration=s eforms initiative. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 80
   

             

 

 

Federal Maritime Commission

The Deputy Director of Administration serves as the agency’s Chief Information Officer (CIO). 

The CIO oversees the Office of Information Technology operations and activities administered 

under the Clinger-Cohen Act of 1996, as well as other applicable laws which prescribe 

responsibility for operating the program. The Deputy Director also serves as the agency’s 

Competition Advocate and Records Management Officer. 

During fiscal year 2009, the Office of the Director guided the agency=s continuing efforts to 

enhance its IT program. The agency once again received an unqualified opinion in its FY 2009 

Financial Statement Audit. The Office prepared the Federal Activities Inventory Reform Act 

report, and the PAR (which included the Management’s Discussion & Analysis (MD&A) and the 

Federal Managers Financial Integrity Act report). The Office continued to direct the update of 

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

activities, guided Commission efforts to comply with the GPEA and FISMA, and responded to 

Congressional inquiries. Additionally, the Office guided the development of the FY 2010 

baseline documents to OMB and the FY 2010 President=s Budget submission, and directed the 

audit of the Commission=s FY 2009 Financial Statements. The Office also provided primary 

support for the OMB clearance and records management programs, and guided the further 

development of the Disaster Recovery Plan for the agency=s COOP. 

OA=s key objectives for fiscal years 2010 and 2011 are: continuing to refine and enhance agency 

administrative programs and operations by reviewing, developing and/or updating internal 

Commission Orders and Standard Operating Procedures; assessing agency records disposition 

requirements in accordance with the National Archives and Records Administration guidelines; 

monitoring the accomplishment of agency performance goals, including the full implementation 

of Pay.gov for acceptance of electronic payments from the industry; initiating further 

information technology improvements, including the implementation of document/workflow and 

records management technology, upgrading information system technology (servers, desktop 

operating systems, laptops, and software), and the implementation of Voice over Internet 

Protocol (VoIP) and video conferencing; and working with senior managers to ensure effective 

strategic succession planning. OA will take the lead in ensuring an effective agency-wide 

computer security program, that the agency=s financial management system receives an 

unqualified opinion in annual financial audits, and that the agency continues to comply fully with 

government-wide initiatives. 

Office of Information Technology (OIT) 

OIT provides management support and services with respect to IT systems facilitating the 

program and administrative operations of the Commission, and thus is responsible for ensuring 

that the IT program is administered in a manner consistent with applicable rules, regulations and 

guidelines. OIT receives program guidance from the agency’s CIO. 

The Director, OIT serves as the Commission’s Information Technology Officer, 

Telecommunications Manager, and Help Desk and Database Administration Manager, and 

oversees the IT security program. The OIT Director plans, coordinates, and facilitates the use of 

automated information systems. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 81
   

             

     

   

       

   

         

         

     

     

     

   

           

           

     

           

           

Federal Maritime Commission

Federal Maritime Commission 

FY 2009

Actual

Administration

Office of Information Technology

FY 2010

Enacted

FY 2011

Request

FTE: Office of Information Technology 6.98 7.00 8.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$847,051.31

$2,164,917.10

$3,011,968.41

$876,912.29

$1,110,410.62

$1,987,322.91

$1,026,268.61

$1,060,038.99

$2,086,307.60

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

1.20 2.00 4.80

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$312,946.14 $521,576.90 $1,251,784.56

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

During fiscal year 2009, significant OIT activities included the following: (1) completed 

renovation of the Data Center; (2) continuously upgraded the Form FMC-18 application system; 

(3) converted the programming language for all web-based applications to .NET; (4) upgraded 

data lines; (5) set up and configured new telecommunications equipment to accommodate the 

VoIP systems in development; (6) updated policies and procedures associated with technical 

assistance provided to staff and changes in the IT infrastructure; (7) administered the agency’s IT 

technical support and assistance contracts; (8) continued to work with Verizon and General 

Services Administration (GSA) to upgrade the FMC’s phone system to VoIP under the new 

NETWORX contract; (9) furnished agency-wide advice and coordination on electronic records; 

(10) reviewed and completed security assessments for all FMC systems; (11) coordinated and 

monitored IT Security Awareness training; (12) improved agency compliance with FISMA and 

other Federal IT initiatives; (13) upgraded the COOP systems located in Germantown, MD; 

(15) coordinated with OMS to initiate a technology upgrade of the Commission’s Hearing Room, 

conference areas and executive Offices; and (16) continued a study of current databases to begin 

the process of creating enterprise-wide interconnection between all applicable FMC databases. 

For fiscal years 2010 and 2011, major initiatives include plans to: (1) work toward becoming 

fully compliant with FISMA requirements; (2) complete implementation of VoIP; (3) create an 

FMC Enterprise Architecture Plan; (4) subject to adequate funding, upgrade the existing desktop 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 82
   

             

     

   

       

   

         

         

     

     

     

   

           

           

     

           

           

Federal Maritime Commission

operating system, software applications and equipment; (5) upgrade the Virtual Private Network 

security infrastructure; (6) incorporate the Pay.gov initiative; (7) subject to adequate funding, 

complete the technology upgrade of the Commission’s Hearing Room and conference rooms; 

and (8) upgrade the FMC’s COOP site to be a mirror image of HQ. 

To pursue IT initiatives to comply with governing statutes and regulations, as well as evaluating 

use of IT to increase productivity, we are requesting an additional IT position. We believe 

enhanced information systems are critical to identification of regulated entities, to information 

sharing with our counterparts at CBP and other Federal agencies, and to permitting our ARs, 

BOE and consumer affairs representatives timely and comprehensive access to data needed to 

address OTI practices that abuse or defraud the shipping public. 

Office of Human Resources (OHR) 

OHR plans and administers a complete human resources management program including: 

recruitment and placement, position classification and pay administration, occupational safety 

and health, employee assistance, workforce discipline, performance management and incentive 

awards, employee benefits, retirement, employee development and training, and personnel 

security. 

Federal Maritime Commissi

Administration

Office of Human Resources

on 

FY 2009

Actual

FTE: Office of Human Resources 4.42

Cost: Salaries & Benefits $473,221.24

Non‐Personnel Expenses $129,516.26

Total Cost $602,737.50

FY 2011 FTE by FMC Strategic Goal

FY 2010 FY 2011

Enacted Request

4.77 4.40

$485,949.13 $507,099.89

$206,297.28 $197,390.20

$692,246.41 $704,490.09

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.66 1.23

FY 2011 Cost by FMC Strategic Goal

2.51

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

$105,673.52 $196,937.00 $401,879.57

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 83
   

             

Federal Maritime Commission

Major accomplishments during fiscal year 2009 include: (1) monitored activities of the agency’s 

payroll/personnel service provider, the National Finance Center (NFC), and worked with OA 

staff to ensure security, continuity and accuracy of payroll and personnel services; (2) 

coordinated with senior management to review and evaluate leadership development programs 

and activities to address succession planning; (3) conducted a comprehensive training program in 

accordance with the agency’s budget and strategic and performance plans, promoting e-learning 

and on-line training opportunities, continuing the college tuition reimbursement program, 

ensuring training for new employees on the No Fear Act, and participating in the SAC Training 

Program; (4) planned, implemented, and promoted new programs for Personal Financial Literacy 

Education and Volunteer/Community Service Awareness and issued newsletters highlighting 

appropriate information and activities; (5) conducted a comprehensive personnel and information 

security program, including initiating and adjudicating security investigations for new and 

reinvestigated employees, and collaborating with the CBP to gain access to the ACE/ITDS; (6) 

coordinated with OPM regarding results from the Federal Human Capital Survey, worked with 

senior management to identify areas needing improvement after analyzing results, preparing 

interpretation and trend analysis, and working with the Partnership for Public Service in 

connection with Best Place to Work Awards; (7) implemented provisions of the Federal 

Workforce Flexibility Act and finalized the agency’s Human Capital Plan, Workforce Plan, 

Accountability, and Succession Management Plans in accordance with OPM’s Human Capital 

Assessment and Accountability Framework; (8) conducted a comprehensive performance 

management and incentive awards program; (9) conducted a comprehensive recruitment 

program; (10) coordinated with OPM, OMB, and others on human capital initiatives related to 

the President’s Management Agenda; (11) maintained the partnership for acquisition of assistive 

devices through the Department of Defense’s Computer/Electronic Accommodations Program; 

(12) continued to work with the Small Agency Human Resources Consortium, OPM and 

Northrop Grumman Integic officials to complete program activities to implement electronic 

Official Personnel Folder (eOPF); (13) promoted the Preventive Health and Awareness Program 

and OPM’s Healthier Feds initiatives, publicized and hosted wellness seminars sponsored by the 

Employee Assistance and Federal Occupational Health Programs; (14) in concert with OPM’s 

hiring reform initiative, developed revised vacancy announcement template to enhance our 

recruitment efforts; (15) enhanced workplace flexibilities; (16) provided recommendations to 

OPM regarding the agency’s work/life program and best practices; (17) implemented pertinent 

provisions of the IG Reform Act of 2008; (18) participated in the planning and implementation 

of the Automatic External Defibrillator (AED) program and full-time clinical services; (19) 

managed and conducted employee benefit and charitable contributions programs and Open 

Seasons, such as the Combined Federal Campaign, Long-Term Care Insurance Program, Flexible 

Spending Accounts, the annual Benefits Open Season and FMC Health Fair, etc.; (20) continued 

implementation of the Enterprise Human Resources Integration Project, and administered other 

e-Gov initiatives such as Recruitment One-Stop, e-payroll, e-clearances, and e-learning; 

(21) conducted a proactive retirement program that included computing benefits, providing 

retirement seminars, related training and one-on-one counseling, and processing all retirements; 

(22) coordinated with other administrative units and the GSA to implement pertinent provisions 

of Homeland Security Presidential Directive 12 (HSPD-12) and meet OMB requirements related 

to issuance of Federal employee credentials; (23) evaluated contractor performance in the area of 

classification/position management; and (24) worked with contractors to facilitate agency-wide 

implementation of the automated training data management reporting system required by OPM. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 84
   

             

Federal Maritime Commission

In fiscal years 2010 and 2011, OHR plans to: (1) advise agency management and staff on all 

human resources matters and maintain a sound and progressive human resources program; 

(2) implement pertinent portions of the agency’s strategic, training and related performance 

plans, particularly performance goals related to the management of human resources; (3) explore 

and implement simplification, flexibility, and accountability of human resources management 

programs, including investigating automated solutions to address program requirements; 

(4) partner with agency officials in concert with the President’s goal to build a transparent, highperformance government specifically with respect to Federal hiring reform and improving 

employee satisfaction and wellness; (5) continue with eOPF implementation and conversion of 

HR records to electronic format to address program requirements and meet agency business 

needs; (6) explore automated solutions or pilot programs for evaluation of training; (7) monitor 

the processes and database modernization activities of the NFC in conjunction with the 

government-wide e-payroll initiative and ensure timely and accurate payroll and personnel 

services; and (8) assess progress in achieving human capital goals as outlined in the agency’s 

Human Capital, Workforce, Succession Management and Accountability Plans. 

Office of Financial Management (OFM) 

OFM administers the Commission's financial management program and is responsible for 

offering guidance on optimal use of the Commission's fiscal resources. OFM's main 

responsibilities are to: (1) produce, submit and support annual budget justifications and 

estimates to OMB and the Congress; (2) execute annual budgets to ensure that appropriated 

funds are properly expended; (3) review audited financial reports; (4) administer the control 

system over workyears of employment; (5) collect and deposit all fees and forfeitures due the 

Commission and pursue collections of debts; (6) process accounts payable documents; (7) verify 

financial, accounting and payroll reports generated by the agency’s fiscal services agents; 

(8) process travel orders and vouchers; and (9) manage the Commission’s Travel Charge Card 

and Cash Management Programs. 

The Commission has an interagency agreement (IAG) with the Bureau of Public Debt (BPD) to 

provide travel, procurement, and financial reporting. OFM serves as the Commission’s primary 

contact with BPD and verifies all accounting transactions, oversees the timely submission of 

quarterly financial statements to OMB, annual and semiannual report submissions to the U.S. 

Treasury and works to ensure that an unqualified opinion is received on the annual financial 

statement audit. The NFC provides the Commission with payroll services via an IAG. OFM 

serves as the primary contact with NFC regarding time card transmission and verifies all payroll 

disbursement costs. NFC transmits documentation of payroll costs directly to BPD for inclusion 

in the agency’s accounting records. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 85
   

             

     

   

       

   

         

         

     

     

     

   

           

           

     

           

           

 

Federal Maritime Commission

Federal Maritime Commission 

FY 2009

Actual

Administration

Office of Financial Management

FY 2010

Enacted

FY 2011

Request

FTE: Office of Financial Management 5.00 5.00 5.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$515,879.84

$134,298.18

$650,178.02

$535,892.85

$152,303.46

$688,196.31

$567,338.46

$158,392.08

$725,730.54

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.70 2.20 2.10

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$101,602.27 $319,321.45 $304,806.82

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

During fiscal year 2009, OFM’s important accomplishments include the following: (1) managed 

the Commission’s Cash Management Program and collected and deposited $1,130,000 to the 

U.S. Treasury from fines and penalty collections, publications, reproductions, and user fees; 

(2) coordinated and prepared budget justifications and estimates for the FY 2010 Congressional 

budget and FY 2011 OMB budget; (3) prepared required external reports; (4) prepared monthly 

status reports on budget matters; (5) revised procedures for forecasting the cost of performance 

goals; (6) pursued delinquent receivables and referred applicable debts to the U.S. Treasury for 

collection; (7) worked with BPD staff and independent auditors regarding the audits of the fiscal 

years 2008 and 2009 Financial Statements (an unqualified opinion was received for FY 2008 

and FY 2009); (8) worked with the OA to finalize FMC’s 2008 MD&A and 2008 PAR and to 

initiate work on the 2009 versions of those documents; (9) worked with OA to complete the 2009 

FAIR Act Report and post results to OMB’s MAX database; (10) updated the agency’s internal 

control forms (Form FMC-29 and Form FMC-30) in compliance with OMB A-123; (11) assisted 

in the preparation of materials requested by the Congressional Oversight Subcommittee; 

(14) prepared detailed responses to Questions for the Record submitted by the House Committee 

on Appropriations, Subcommittee on Transportation, and Urban Development, and Related 

Agencies; (15) updated a number of Commission Orders and OA procedural documents; 

(16) participated in the Commission’s Pay.gov implementation team; and (17) developed a new 

methodology for calculating user fees. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 86
   

             

 

Federal Maritime Commission

Goals for fiscal years 2010 and 2011 include: (1) facilitating implementation of Pay.gov for 

acceptance of electronic payments from the industry; (2) continuing to pursue initiatives leading 

to economy and efficiency in budget and financial operations; (3) improving the Cash 

Management Program and updating relevant Standard Operating Procedures; and (4) developing 

detailed training documents for the Commission’s Travel Charge Card Program to improve 

cardholders’ knowledge of appropriate use and responsibilities. 

Office of Management Services (OMS) 

OMS is responsible for procuring and furnishing all services, office equipment and supplies 

necessary to support the day-to-day operations and performance goals of the Commission. To 

accomplish this, OMS administers a variety of management service functions, including: 

(1) administering procurement and contracting; (2) controlling and administering the 

Commission's property utilization, maintenance, inventory and disposition programs; 

(3) planning and administering programs for improvement of the workplace environment and 

other space utilization operations for all Commission locations, including office space and 

provision of office furnishings; (4) managing the receipt, storage, distribution and inventory of 

all supplies, forms and accessories; (5) coordinating and fulfilling all printing, copying, and 

graphic service requirements; (6) coordinating the use of the headquarters (HQ) physical 

facilities with respect to maintenance, security, and parking; (7) conducting safety inspections 

and coordinating the emergency planning and evacuation plan; and (8) directing the 

Commission's participation, development and goal-setting efforts under the Small Business 

Act. 

During fiscal year 2009, OMS: (1) provided procurement information to the incoming 

administration’s Transition Team on acquisitions made during fiscal year 2008; (2) coordinated 

and arranged new formal credentials for the Commissioners, agency executives, BOE personnel, 

and the ARs; (3) updated and/or established procedures for processing incoming/outgoing mail; 

the ordering, replenishing, and issuance of routinely used office supplies and disposal of excess 

and/or surplus property; (4) awarded a contract to bridge the Choicepoint Services used by BOE 

and BCL, while BPD completed the acquisition process to award new contract with option years, 

and provided guidance in preparing the sole-source justification to continue using Choicepoint 

Services; (5) worked with OHR and Management Concepts to host a mandatory training course, 

Contracting Officer’s Representative, in accordance with the Office of Federal Procurement 

Policy’s new procurement regulations; (6) arranged for a vehicle for the new AR in New 

Orleans; (7) arranged for disposal of microfiche files and the quarterly shredding and disposal of 

excess documents and material; (8) coordinated with the contracting officer/subject matter expert 

of the Federal Protective Service for the HQ building security force contract on their bi-annual 

security assessment of the building, and provided signature concurrence of the assessment as the 

Chairman of the Building Security Committee (BSC); (9) coordinated with the other members of 

the BSC to arrange to have the building’s Health Services Unit expanded from half-day to fullday, eight-hour service; (10) arranged for the Houston AR to have access to a health services 

facility for use as needed; (11) traveled to Seattle to conduct site visits of the available GSA 

properties and coordinated the relocation of the Seattle Office to Tacoma; (12) coordinated with 

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Federal Maritime Commission

OIT and GSA on the renovation of the Data Center in OIT, the media upgrades in the HQ 

Hearing Room, and for the installation of monitors in the executives’ offices and select 

conference rooms; (13) developed cost analysis and received approval to increase the agency’s 

Transit Subsidy Benefit program level of distribution from $115 per month to $230 as maximum 

allowable assistance; (14) hosted on-site procurement overview meeting with BPD officials that 

provide direct support to OMS and other agency activities, for discussions with individual 

activities on their specific acquisition needs for fiscal year 2009 and beyond; and (15) arranged 

for the installation of AED Units at HQ and training of 27 HQ personnel on the proper use of an 

AED Unit, including a formal meeting with the Federal Occupational Health’s AED Program 

officials on final implementation steps for this important new agency program. 

FY 2009

Actual

Administration

Office of Management Services

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Office of Management Services 5.20 5.00 5.00

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$586,591.10

$194,103.73

$780,694.83

$592,574.76

$172,930.22

$765,504.98

$613,947.27

$167,216.69

$781,163.96

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

0.75 1.25 3.00

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$117,174.59 $195,290.99 $468,698.38

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

In fiscal years 2010 and 2011, OMS’ objectives include: (1) continuing to work with GSA and 

other tenant agencies at our HQ and field locations to upgrade and/or improve security measures 

and emergency preparedness; (2) in conjunction with the agency’s other administrative offices, 

continuing to research methods and practices for the enhancement and improvement of support 

services; (3) continuing to work with BPD on streamlining the FMC’s acquisition and 

procurement programs; and (4) continuing to provide advice and assistance regarding innovative 

support-service approaches to FMC activities. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 88
   

             

   

   

       

   

         

         

     

     

     

   

           

           

   

           

           

Federal Maritime Commission

FY 2011 Strategic Goals 

FY 2009

Actual

Federal Maritime Commission

Executive Summary

Federal Maritime Commission 

FY 2010

Enacted

FY 2011

Request

FTE: Headquarters & Field 119.56 128.72 132.20

Cost: Salaries & Benefits

Non‐Personnel Expenses

Total Cost

$15,414,639.10

$7,319,076.68

$22,733,715.78

$17,105,000.00

$7,030,000.00

$24,135,000.00

$18,515,000.00

$6,983,000.00

$25,498,000.00

Maintain an efficient and

competitive international ocean

transportation system

Protect the public from unlawful,

unfair and deceptive practices and

resolve shipping disputes

Advance agency objectives

through high‐performance

leadership and efficient

stewardship of resources

24.96 76.67 30.57

FY 2011 FTE by FMC Strategic Goal

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

FY 2011 Cost by FMC Strategic Goal

$4,742,606.45 $14,365,838.18 $6,389,555.37

Strategic Goal 1 Strategic Goal 2 Strategic Goal 3

Factors Affecting the Achievement of Goals 

The FMC is a small agency that has established considerable in-house expertise in the legal, 

economic and organizational aspects of international liner shipping and the intermodal 

movement of ocean cargo. That expertise allows the FMC to effectively pursue its goals of 

maintaining a competitive international ocean transportation system and protecting the public 

from unlawful, unfair and deceptive practices efficiently at a very modest cost to the taxpayer 

and with a minimum regulatory burden on stakeholder industries. 

To continue to accomplish its goals, the agency will need to maintain its relevant expertise 

through the recruitment, training and retention of highly qualified attorneys, economists, industry 

specialists, and information technology experts. The importance of the recruitment and retention 

issue is likely to increase as the agency’s experienced personnel reach retirement age, and in the 

face of competition from other Federal agencies seeking to replace their retiring personnel. 

Expanding and enhancing the use of IT is one way that the FMC is able to improve its 

efficiencies. The increasing importance of IT results not only from its contribution to the 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 89
   

             

Federal Maritime Commission

agency’s ability to collect and process information more efficiently and accurately, but also 

because of the agency’s need to keep up with the electronic business practices of the industries it 

regulates. Greater use of IT technology also helps make many of the aspects of licensing, 

certification and information filing simpler and easier to accomplish for the agency’s 

stakeholders. It is critical to the maintenance and effective use of various key agency databases. 

The security of agency databases, confidential business reports and associated documents filed 

with the FMC has received increasing attention in recent years. Enhanced and extended 

applications of information technologies helps ensure that security. 

Although the FMC primarily regulates international ocean liner transportation, it is also 

involved, through its regulation of MTOs, with aspects of the intermodal movement of ocean 

cargo in the U.S. In addition, foreign-based OTIs are subject to statutory bonding requirements 

under FMC jurisdiction. To the extent that there are changes in the regulatory treatment of 

international liner operations by foreign governments, as was the case in Europe beginning in 

late 2008, the FMC will need to conduct research to determine the likely effect of such changes 

on U.S. trades. Over time, regulatory changes in other regions could also provide an impetus for 

a review of U.S. statutes or regulations on liner shipping. Consequently, FMC analyses of 

possible future proposals for statutory revisions may be required. 

Finally, in recent years the FMC has witnessed the filing of new types of agreements, especially 

marine terminal agreements, which address nontraditional issues such as traffic congestion, 

environmental protection, terminal operational efficiencies, and infrastructure funding. These 

nontraditional agreements tend to involve industries (drayage trucking and rail service), 

operations (pooling of chassis), and issues (air pollution, public health, infrastructure finance) 

which require the development by agency staff of additional information sources and areas of 

expertise. Not infrequently, these nontraditional agreements have potentially significant pricing 

and service consequences. To the extent that the filing of nontraditional agreements increase in 

coming years, which seems to be the likely trend, they will continue to weigh heavily on the 

agency’s limited resources. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 90
   

             

 

$1,208,585.68

$31,945.90

$0.00 $2,740,965.00

$761,109.87

Strategic Goal 1

Funding Requirements by Program

Formal Proceedings EEO IG Operations Administration

Federal Maritime Commission

Strategic Goal Number 1: 

Maintain an efficient and competitive international ocean transportation system. 

The Commission is responsible for the regulation of oceanborne transportation in the foreign 

commerce of the United States pursuant to the provisions of the Shipping Act. A stated policy 

objective of the Shipping Act is “to promote the growth and development of United States 

exports through competitive and efficient ocean transportation and by placing a greater reliance 

on the marketplace.” The Commission’s oversight of carrier and terminal operator antitrust 

immunity, as part of a non-discriminatory regulatory process, works to provide an efficient and 

economic transportation system in the ocean commerce of the United States. In addition, the 

Commission addresses unfavorable conditions affecting U.S. carriers in U.S. oceanborne trades 

when such conditions do not exist for foreign carriers. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 91
   

             

 

 

5.91

0.14

0.00 15.00

3.91

Strategic Goal 1

FTE Requirements by Program

Formal Proceedings EEO IG Operations Administration

Federal Maritime Commission

Objective 1: 

Identify and take actions to address substantially anticompetitive conduct or unfavorable trade 

conditions in U.S. trades. 

The FMC is charged with protecting the shipping public, and ultimately American exporters and 

consumers, from possible abuse of the limited antitrust immunity granted by Congress to 

international liner carriers and domestic marine terminal operators under the Shipping Act. In 

addition, the FMC is responsible, under the Foreign Shipping Practices Act of 1988, for 

investigating whether laws, rules, regulations or practices of foreign governments, or the 

practices of foreign carriers result in the existence of unfavorable conditions in U.S. trades. 

The Shipping Act requires that VOCCs and MTOs that benefit from antitrust immunity by 

agreeing among themselves file copies of those agreements with the FMC. FMC staff review 

these proposed agreements when they are initially filed, and before they take effect. The FMC is 

authorized, pursuant to section 6(g) of the Shipping Act, to seek appropriate injunctive relief 

against any agreement which is likely to result in a significant reduction in competition of the 

sort that could be expected to unreasonably raise transportation costs or reduce transportation 

service. 

The Shipping Act and implementing regulations also authorize the FMC to require that 

agreement parties: (a) provide accompanying information needed to assess certain categories of 

agreements upon request; (b) file certain standard types of reports -- including quarterly 

economic data and/or minutes of meetings held by the agreement parties -- depending on the 

authorities sought in the agreement; and (c) submit special informational reports, if the FMC 

requests them, once the agreement goes into effect. These reporting requirements, and the 

economic data and information about agreement activities they provide, allow the FMC to 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 92
   

             

     

                               

     

                           

             

Federal Maritime Commission

initially evaluate, and continue to monitor on an on-going basis, the conduct of the parties to 

VOCC and MTO agreements with limited antitrust immunity. 

Under the FSPA the Commission can address adverse conditions affecting U.S. carriers in the 

U.S. oceanborne trades, when such conditions do not exist for foreign carriers or others 

providing maritime or maritime-related services in the U.S. Section 9 of the Shipping Act also 

charges the Commission with regulating the rates, charges, and rules of government-owned or 

–controlled carriers to ensure that they are just and reasonable. 

Strategic Goal 1:

Maintain an efficient and competitive international ocean transportation system

Objective 1:

Identify and take action to address substantially anticompetitive conduct or unfavorable trade conditions in U.S. trades

Performance Measure 1: Percentage share of total U.S. international oceanborne trade moved by containership, as an

indicator of liner efficiency

FY 2010

Plan

FY 2011

Target Target

FY 2012

18.00% 18.50% 19.00%

Strategy for accomplishing Strategic Goal #1, Objective #1 

•	 Review initial agreements and amendments, including any additional information 

requested by the FMC, to determine the likelihood that the agreement parties could 

engage in substantially anticompetitive conduct with respect to transportation costs or 

services. 

•	 Review, on a regular, on-going basis, the data and information provided in standard 

reports and special reporting measures to assess the existence or likelihood of 

substantially anticompetitive conduct or unfavorable trade conditions. 

•	 Initiate meetings with representatives of the FMC’s various stakeholder industries to help 

determine whether anticompetitive behavior or unfavorable trade conditions exist in U.S. 

trades. 

•	 Conduct research studies on current competition issues with respect to U.S. trades. 

•	 Actively monitor for and record the presence of all foreign-controlled carriers in U.S. 

trades, and regularly review their pricing practices. 

•	 Obtain information via inquiries and/or complaints about conduct or conditions that 

impede the efficient movement of cargo. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 93
   

             

Federal Maritime Commission

•	 Assure competitive conditions in the U.S. foreign oceanborne trades by working with 

agreement parties on an informal basis to negotiate changes in agreements that raise 

competitive concerns. 

•	 Preserve competition in ocean transportation by seeking appropriate injunctive relief 

under section 6 of the Shipping Act for agreements likely, by a reduction in competition, 

to produce an unreasonable reduction in transportation service or an unreasonable 

increase in transportation cost. 

•	 Address disruptions in the ocean transportation marketplace by investigating carrier and 

marine terminal operator violations of the Shipping Act. 

•	 Take action under the FSPA to address adverse conditions affecting U.S. carriers in the 

U.S. oceanborne trades, when such conditions do not exist for foreign carriers or others 

providing maritime or maritime-related services in the U.S. 

•	 Make rules and regulations affecting shipping in the foreign trade not in conflict with law 

in order to adjust or meet general or special conditions unfavorable to shipping in the 

foreign trade. 

•	 Ensure timely action on formal proceedings undertaken to protect competition. 

•	 Maintain and keep up-to-date an electronic library, accessible from the FMC’s website, 

of agreement documents to allow interested parties to easily search for and download 

those documents. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 94
   

             

$5,276,800.97

$130,065.45

$0.00

$7,519,656.51

$1,439,315.25

Strategic Goal 2

Funding Requirements by Program

Formal Proceedings EEO IG Operations Administration

Federal Maritime Commission

Strategic Goal Number 2: 

Protect the public from unlawful, unfair and deceptive ocean transportation practices and 

resolve shipping disputes. 

The FMC has jurisdiction over activities of ocean carriers and marine terminal operators in a 

variety of their commercial activities in international ocean commerce. The FMC has a wide 

variety of responsibilities in protecting the shipping public from financial harm. 

Those responsibilities include the licensing of ocean transportation intermediaries that serve U.S. 

trades; assisting the public in the resolution of informal complaints related to the shipment of 

goods or to passenger vessel cruises; the identification and prosecution of unreasonable or unjust 

practices by carrier or marine terminals; and the investigation and satisfaction of formal 

complaints alleging violations of the Shipping Act. To carry out its broad mission, the FMC uses 

various means including monitoring, investigation, education, enforcement, and ombuds 

services. 

The Commission, and its regional ARs, also have a role in the education of the public and of 

industry groups involved in U.S. international trade with respect to their rights and/or 

responsibilities under the Shipping Act – including informing them of available Commission 

resources which might be of use to them. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 95
   

             

 

26.09

0.57

0.00

42.32

7.68

Strategic Goal 2

FTE Requirements by Program

Formal Proceedings EEO IG Operations Administration

     

                               

                       

                           

                           

Federal Maritime Commission

Objective 1: 

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

The FMC is responsible for ensuring that individual carriers and marine terminal operators, as 

well as those permitted by agreement to act in concert, treat shippers and other members of the 

shipping public fairly by not engaging in prohibited acts as set out in the Shipping Act. In the 

effort to identify such practices, the FMC maintains a visible presence amongst regulated 

entities, collects intelligence in a variety of ways and exchanges intelligence with other 

regulatory and law enforcement agencies. 

In order to ensure compliance with laws and regulations under the jurisdiction of the FMC, 

various formal and informal actions may be taken by the Commission. Formal investigations are 

initiated when violations are discovered, though often the Commission enters into settlement 

agreements ending violative activities. 

Strategic Goal 2:

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

Objective 1:

Identify and take action to address substantially anticompetitive conduct or unfavorable trade conditions in U.S. trades

Performance Measure 1: Percentage of enforcement actions taken under the Shipping Act of 1984 successfully resolved

through favorable judgment, settlement, issuance of default judgment or compliance letter or notice

Plan

FY 2010

Target

FY 2011

Target

FY 2012

70.00% 72.00% 74.00%

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 96
   

             

 

Federal Maritime Commission

Strategy for accomplishing Strategic Goal #2, Objective #1 

•	 Gather intelligence through visible and accessible presence in the regulated community in 

order to identify unlicensed OTIs and other violations. 

•	 Monitor advertising in print, television, radio and online to identify illegal practices. 

•	 Gather information related to potential unlicensed OTIs. 

•	 Receive and respond to complaints regarding egregious violations and practices. 

•	 Identify subjects who offer, advertise or provide passage on vessels having berths or 

staterooms to accommodate 50 or more passengers and have not met FMC financial 

requirements. 

•	 Audit ocean carriers and OTIs based upon information received and on a random basis. 

•	 Exchange information and liaise with other Federal, state and local investigative and 

regulatory agencies and Bureaus. 

•	 Review tariffs for accessibility and accuracy. 

•	 Investigate allegations of unlawful, unfair and deceptive practices. 

•	 Efficiently prosecute alleged violations of the Shipping Act. 

•	 Reach voluntary agreement with alleged violators to cease unlawful, unfair and deceptive 

practices. 

•	 Respond to inquiries regarding complaint history of transportation providers and advise 

consumers of means to protect themselves. 

Objective 2: 

Prevent public harm through licensing and financial responsibility requirements. 

The FMC licenses and regulates OTIs, including ocean freight forwarders and NVOCCs, and 

ensures that OTIs have sufficient financial responsibility. As well, the FMC issues certificates to 

owners and operators of PVOs that have evidenced financial responsibility to satisfy liability 

incurred for nonperformance of voyages and for death or injury to passengers and other persons. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 97
   

             

 

 

     

                               

                 

             

                           

Federal Maritime Commission

Strategic Goal 2:

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

Objective 2:

Prevent public harm through licensing and financial responsibility requirements

Performance Measure 1: Percentage of decisions completed on OTI license applications rendered within 90 business days,

facilitating lawful operation of OTIs with the appropriate character requirements

Plan

FY 2010

Target

FY 2011

Target

FY 2012

55% 57.00% 59.00%

Strategy for accomplishing Strategic Goal #2, Objective #2 

•	 License OTIs with the requisite character, experience and financial responsibility. 

•	 Issue PVO certificates to cruise line operators that have met regulatory requirements for 

proof of financial responsibility. 

•	 Monitor PVO unearned passenger revenue reports and conduct on-site review of PVOs’ 

UPR receipts. 

•	 Review and update OTI bonds and coverage amounts. 

Objective 3: 

Enhance public awareness of agency resources, remedies and regulatory requirements 

through education and outreach. 

Protection of the public requires knowledge on the part of regulated parties and users of their 

services as to FMC regulatory requirements. As well, the public needs to be well informed of 

the services offered by the FMC and the remedies available in the event of noncompliance, 

injury or unresolved disputes. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 98
   

             

     

                             

       

                         

                           

Federal Maritime Commission

Strategic Goal 2:

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

Objective 3:

Enhance public awareness of agency resources, remedies and regulatory requirements through education and outreach

Performance Measure 1: Percentage of attendees at agency‐sponsored outreach presentations that rate the program as

"Useful" in their compliance efforts

Plan

FY 2010

Target

FY 2011

Target

FY 2012

70.00% 75.00% 80.00%

Strategy for accomplishing Strategic Goal #2, Objective #3 

•	 Maintain an accessible presence in local regulated communities. 

•	 Proactively educate regulated parties of regulatory requirements through educational 

presentations. 

•	 Maintain VOCC and NVOCC tariff location information on the agency website. 

•	 Emphasize OTI requirements to new licensees by letter. 

•	 Promote awareness of FMC licensing and financial responsibility requirements by 

conference participation and seminars. 

•	 Make available to the public key documents in all Commission formal proceedings 

through the Commission website. 

•	 Create and produce brochures to educate industry and public about FMC requirements 

and services. 

. 

•	 Promote general awareness of resources available through the Commission’s website. 

•	 Continuously expand and update information available to the public through the website, 

including the list of licensed OTIs. 

FY 2011 Budget Estimates submitted to the Appropriations Committees  Page 99
   

             

 

     

                                 

         

                   

                           

Federal Maritime Commission

Objective 4: 

Impartially resolve international shipping disputes through alternative dispute resolution and 

adjudication. 

The Commission has several means by which the public or entities in the shipping industry may 

seek resolution of disputes or complaints. The Commission provides ombuds services to assist 

parties in resolving complaints informally through its Office of Consumer Affairs and Dispute 

Resolution and its ARs. Formal complaints of alleged Shipping Act violations may be filed for 

adjudication by an ALJ. Parties may seek the assistance of a trained neutral at any stage in a 

formal proceeding or in the first instance for resolution using ADR processes. 

Strategic Goal 2:

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

Objective 4:

Impartially resolve international shipping disputes through alternative dispute resolution and adjudication

Performance Measure 1: Number of cases opened and closed each fiscal year using ombuds or ADR services assisting

consumers to recover goods or funds

Plan

FY 2010

Target

FY 2011

Target

FY 2012

550 625 700

Strategy for accomplishing Strategic Goal #2, Objective #4 

•	 Provide ombuds services to informally resolve passenger vessel, household goods and 

other shipper complaints. 

•	 Encourage the use of and provide ADR services to parties who request the services of a 

trained neutral in resolving disputes and shipping problems that affect international ocean 

shipping. 

•	 Adjudicate disputes under the jurisdiction of the agency before an ALJ, with the 

possibility of appeal to the Commission. 

•	 Timely conduct Commission proceedings so that litigants and industry can adjust 

behavior accordingly. 

FY 2011 Budget Estimates submitted to the Appropriations Committees	 Page 100
   

             

$1,439,488.55

$66,173.65

$779,843.69

$1,182,026.77

$2,922,022.71

Strategic Goal 3

Funding Requirements by Program

Formal Proceedings EEO IG Operations Administration

Federal Maritime Commission

Strategic Goal Number 3: 

Advance agency objectives through high-performance leadership and efficient stewardship of 

resources. 

In pursuing its core strategic goals of maintaining an efficient and competitive international 

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

ocean transportation practices, the FMC recognizes the critical importance of providing 

effective, performance-oriented management and of ensuring that all resources allocated to its 

mission are wisely employed. 

Given the importance of maintaining agency expertise in carrying out its various regulatory 

responsibilities, the strategic management of our human resources will remain a primary 

concern. In addition, on-going review and streamlining of current agency work processes, 

particularly through the effective use of new technologies to enhance and improve performance 

is seen as a critical function. 

By carefully and closely monitoring all of its operational programs, personnel needs, planning 

processes, financial and procurement practices, and vital support activities, the agency strives to 

ensure that its strategic goals are not only being met – but being advanced in ways that make the 

most productive use of the scarce resources with which it has been entrusted. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 101
   

             

6.80

0.29

3.00 5.68

14.81

Strategic Goal 3

FTE Requirements by Program

Formal Proceedings EEO IG Operations Administration

     

                             

             

                   

Federal Maritime Commission

Strategic Goal 3:

Advance agency objectives through high‐performance leadership and efficient stewardship of resources

Objective 1:

Ensure performance of agency programs through performance‐oriented management and planning

Performance Measure 1: Attain an "unqualified" opinion on financial and performance monitoring systems through FY 2015

Plan

FY 2010

Target

FY 2011

Target

FY 2012

Unqualified Unqualified Unqualified

Strategy for accomplishing Strategic Goal #3, Objective #1 

•	 Develop annual budget directly linked to strategic and annual performance plans for 

submission to Congress and OMB. 

•	 Annually measure performance as established in the strategic plan and assess the efficacy 

of performance measures for preparation of the annual performance plan. 

•	 Identify and alleviate current and future skill gaps by fostering human resources 

management principles, including recruitment and placement, position classification and 

pay administration, occupational safety and health, employee assistance, employee 

relations, workforce discipline, performance management and incentive awards, 

FY 2011 Budget Estimates submitted to the Appropriations Committees	 Page 102
   

             

     

                                   

             

                       

                   

Federal Maritime Commission

employee benefits, career transition, retirement, employee development and training, 

personnel security, and equal employment opportunity. 

•	 Promote economy and efficiency by detecting waste, fraud and abuse in the agency=s 

programs via auditing agency operations. 

•	 Ensure program compliance with various rules and regulations regarding such areas as 

forms clearance, Paperwork Reduction, Small Business Paperwork Reduction Act, and 

other Federally required reports and submissions. 

Objective Number 2: 

Allocate technological, financial and human resources efficiently and effectively toward 

support of agency programs. 

Strategic Goal 3:

Advance agency objectives through high‐performance leadership and efficient stewardship of resources

Objetive 2:

Allocate technological, financial and human resources efficiently and effectively toward support of agency programs

Performance Measure 2: Percentage of all recruitment actions for GS positions are completed within OPM's 45 day hiring

model and within 30 days for SES positions

Plan

FY 2010

Target

FY 2011

Target

FY 2012

60.00% 65.00% 70.00%

Strategy for accomplishing Strategic Goal #3, Objective #2 

•	 Execute financial management policies and programs, manage agency appropriations, 

administer internal control systems for agency funds, travel and cash management, and 

coordinate with contractors who provide accounting and payroll services. 

•	 Monitor performance to ensure the agency’s program operations are effectively supported 

via telecommunications, procurement of administrative goods and services, property 

management, space, printing and copying, mail and records services, facilities and 

equipment maintenance, and transportation. 

•	 Provide guidance to staff regarding administrative matters, including procurement, 

personnel and contracting issues. 

•	 Utilize technology and IT expertise to streamline the agency’s work processes and 

enhance the productivity of the workforce to support the needs of the Commission. 

FY 2011 Budget Estimates submitted to the Appropriations Committees	 Page 103
   

             

Federal Maritime Commission

Appendix A 

Workload Statistics: 

Office of the Secretary
 

Office of the Secretary 

Formal Proceedings Program 

Statistical Workload Summary 

Workload Units FY 2009 Actual FY 2010 Estimate FY 2011 Estimate 

On Hand 

09/30/08 Receipts Output 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 

Commission Docketed 

Proceedings (Formal, 

Special & Informal) 10 26 26 10 25 25 10 25 25 10 

Commission Non-Docketed 

Proceedings 1 3 2 2 2 3 1 2 2 1 

Service Contract 

Correction Applications 0 0 0 0 1 1 0 1 1 0 

Non-Docketed Informal 

Complaints 133 727 744 116 450 426 140 510 510 140 

Docketed Informal 

Complaints 20 14 7 27 10 26 11 12 8 15 

Agenda Items 0 261 261 0 200 200 0 200 200 0 

Pages of Minutes 0 321 321 0 220 220 0 220 220 0 

Federal Register Notices 0 415 415 0 325 325 0 325 325 0 

FOIA Requests 12 30 20 22 30 40 12 25 30 7 

Certifications 0 27 27 0 20 20 0 20 20 0 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 104
   

             

Office of the General Counsel

 

 

Federal Maritime Commission

Office of the General Counsel 

Formal Proceedings 

Office of the General Counsel 

Statistical Workload Summary 

Workload Units Fiscal 2009 Estimate Fiscal 2010 Estimate Fiscal 2011 Estimate 

*On Hand 

09/30/08 Receipts Output 

*On Hand 

09/30/09 Receipts Outputs 

*On Hand 

09/30/10 Receipts Outputs 

*On Hand 

09/30/11 

Litigation 4 6 5 5 3 4 4 2 4 2 

Legislation 0 80 80 0 90 90 0 100 100 0 

Legal Opinions, case 

summaries, decisions 

and final orders 10 87 88 9 90 94 5 95 94 6 

Sec. 19/Sec. 13 (b)(5) 

FSPA Proceedings 1 0 0 1 2 1 2 1 1 2 

International affairs 

reports, policy 

papers, breifings, 

controlled carrier 

recommendations 0 30 30 0 35 35 0 40 40 0 

Speeches, articles, 

presentations 0 15 15 0 20 20 0 25 25 0 

Interagency & 

international group 

participation 0 30 30 0 35 35 0 40 40 0 

Response to requests 

for information, oral & 

written 0 275 275 0 280 280 0 285 285 0 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 105
   

             

 

 

 

 

 

Federal Maritime Commission

Office of the Administrative Law Judges 

Formal Proceedings Program 

Office of the Administrative Law Judges 

Statistical Workload Sum m ary 

Workload 

Units FY 2009 Actual FY 2010 Estimate FY 2011 Estim ate 

On Hand 

09/30/08* Receipts Output 

On Hand 

9/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 

Form al 

Proceedings 20 6 12 12* 7 11 8 8 10 6 

Special 

Proceedings 0 0 0 0 0 0 0 0 0 0 

Informal 

Proceedings 0 0 0 0 0 0 0 0 0 0 

*Three formal proceedings counted as on hand 09/30/08 (02-08, 04-01, 04-06) w ere Subtracted from the OALJ w orkload 

w hen the Commission dismissed them pursuant to instructions from the United States Court of Apeals for the District of 

Columbia Circuit. One formal proceeding (07-01) for w hich OALJ issued an initial decision approving a settlement 

agreement betw een tw o parties is counted as output but also remains on hand 09/30/09 because claims betw een one of 

the settling parties and a third party are not resolved. One formal proceeding (08-05) w as referred to the Commission for 

a decision on a motion to dismiss and counted as output and not on hand 09/30/09. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 106
   

             

 

 

 

 

 

 

Federal Maritime Commission

Bureau of Trade Analysis 

Operations Program 

Bureau of Trade Analysis 

Statistical Workload Sum mary 

Workload Units FY 2009 Actual FY 2010 Estim ate FY 2011 Estim ate 

On Hand 

09/30/08 Receipts Output 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 

Agreements Filed 6 158 156 8 150 152 6 150 150 6 

Rulemakings, 

Proceedings, 

Petitions,Demand 

Orders 0 1 1 0 1 1 0 1 0 1 

Waiver Requests 0 5 5 0 5 5 0 5 5 0 

Bureau Reports * 0 104 104 0 104 104 0 104 104 0 

Agreement Reports

 Minutes 15 1,050 1,050 15 1,050 1,050 15 1,050 1,050 15

 Monitoring 0 368 368 0 370 370 0 370 370 0

 VSCG 3 167 167 3 170 170 3 170 170 3 

Service Contracts 0 45,328 45,328 0 45,781 45,781 0 46,239 46,239 0 

Contract Amds 0 412,570 412,570 0 371,313 371,313 0 375,000 375,000 0 

Special Perm issions 0 2 2 0 4 4 0 4 4 0 

NVOCC Service 

Arrangements 0 1,289 1,289 0 1,300 1,300 0 1,315 1,315 0 

Arrangement Amds. 0 2,389 2,389 0 2,450 2,450 0 2,500 2,500 0 

Informal Inquiries ** 0 2,636 2,636 0 2,700 2,700 0 2,800 2,800 0 

* 

** 

Bureau Reports - include w eekly reports to Commissioners on agreements filed and w eekly 

Federal Register Notice reports. 

These numbers are higher than in previous years due to a change in the tracking system for 

informal inquiries and the types of inquiries included in this figure. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 107
   

             

Federal Maritime Commission

Bureau of Certification and Licensing 

Operations Program 

Bureau of Certification and Licensing 

Statistical Workload Summary 

Workload Units FY 2009 Actual FY 2010 Estimate FY 2011 Estimate 

On Hand 

09/30/08 Receipts Output 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 

OTI Applications 

New * 

224 482 414 292 497 515 274 512 580 206 

OTI Applications 

Amended * 

103 277 252 128 291 300 119 306 320 105 

OTI License 

Terminations ** 0 264 264 0 277 277 0 290 290 0 

Passenger Vessel 

Applications 

(Performance) 1 18 18 1 19 19 1 20 20 1 

Passenger Vessel 

Applications 

(Casualty) 12 18 14 16 19 15 20 20 16 24 

* OTI application output figures primarily include the number of (1) licenses issued, and (2) approvals 

for license and other changes not requiring the issuance of a license. 

** Revoked or surrendered licenses not subsequently re-issued. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 108
   

             

Federal Maritime Commission

Bureau of Enforcement 

Operations Program 

Bureau of Enforcement 

Statistical Workload Summary 

Workload Units FY 2009 Actual FY 2010 Estimate FY 2011 Estimate 

On Hand 

09/30/08 Receipts Output 

On Hand 

09/30/09 Receipts Output 

On Hand 

09/30/10 Receipts Output 

On Hand 

09/30/11 

Audits and 

Monitoring 

Activities* 4 6 5 5 3 4 4 2 4 2 

OTI Applicant and 

License Checks 

0 80 80 0 90 90 0 100 100 0 

Formal 

Proceedings 10 87 88 9 90 94 5 95 94 6 

Civil Penalty Cases 1 0 0 1 2 1 2 1 1 2 

Staff Legal Advice 0 30 30 0 35 35 0 40 40 0 

* Category of Investigations changed to Audits and Monitoring Activities. Audits and monitoring activity 

seperated from investigations. Investigations are included in other categories in the Statistical 

Workload Summary. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 109
   

             

Federal Maritime Commission

Appendix B 

Certification of the Office of Inspector General’s Fiscal Year 2011 Budget Request 

The Inspector General Reform Act (Pub. L. 110-149) was signed by the President on October 14, 

2008. Section 6(f) (1) of the Inspector General Act of 1978, 5 U.S.C. app. 3, was amended to 

require certain specifications concerning Office of Inspector General (OIG) budget submissions 

each fiscal year. 

Each inspector general (IG) is required to transmit a budget request to the head of the 

establishment or designated Federal entity to which the IG reports, specifying: 

•	 The aggregate amount of funds requested for the operations of the OIG, 

•	 The portion of this amount requested for OIG training, including a certification from the 

IG that the amount requested satisfies all OIG training requirements for the fiscal year, 

and 

•	 The portion of this amount necessary to support the Council of the Inspectors General on 

Integrity and Efficiency (CIGIE). 

The head of each establishment or designated Federal entity, in transmitting a proposed budget to 

the President for approval, shall include: 

•	 An aggregate request for the OIG; 

•	 The portion of this aggregate request for OIG training; 

•	 The portion of this aggregate request for support of the CIGIE; and 

•	 Any comments of the affected IG with respect to the proposal. 

The President shall include in each budget of the U.S. Government submitted to Congress. 

•	 A separate statement of the budget estimate submitted by each IG; 

•	 The amount requested by the President for each OIG; 

•	 The amount requested by the President for training of OIGs; 

•	 The amount requested by the President for support of the CIGIE; and 

•	 Any comments of the affected IG with respect to the proposal if the IG concludes that the 

budget submitted by the President would substantially inhibit the IG from performing 

duties of the OIG. 

Following the requirements as specified above, the Federal Maritime Commission Inspector 

General submits the following information relating to the OIG’s requested budget for fiscal year 

2011: 

•	 The aggregate budget request for the operations of the OIG is $779,844; 

•	 The portion of this amount needed for OIG training is $5,500; and 

•	 The portion of this amount needed to support the CIGIE is $ 1,700. 

FY 2011 Budget Estimates submitted to the Appropriations Committees	 Page 110
   

             

Federal Maritime Commission

I certify as the IG of the Federal Maritime Commission that the amount I have requested for 

training satisfies all OIG training needs for fiscal year 2011. 

Inspector General 

Federal Maritime Commission 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 111
   

             

Federal Maritime Commission

Appendix C 

Employee Satisfaction and Wellness 

Employee Satisfaction Initiatives 

Overall, results from the 2008 Federal Human Capital Survey indicate that FMC employees like 

the work they do and believe the Commission does a good job in the areas of recruitment, 

employee development, and retention. The rate of positive responses by FMC employees 

exceeded the government-wide average in all but 3 of the 74 questions included in the survey. 

The Commission’s response rate of 69% for 2008 was comparable to the 70% response rate for 

the 2006 Survey. 

The FMC’s highest scores were in the area of employee benefits and support for work/life 

balance. Ninety-one percent of FMC employees expressed satisfaction with the Commission’s 

paid leave policies. Eighty-seven percent of employees believe their immediate supervisors 

support their needs to balance work and life issues. FMC employees were also very satisfied 

with the retirement, health insurance, and life insurance benefits. Each of these questions 

received over 75% positive responses. Our strong employee benefits program is helping the 

Commission compete with the private sector to recruit and retain mission critical employees as 

evidenced by the 82% of survey respondents who believe their work unit is able to recruit people 

with the right skills. 

FMC employees demonstrate a high level of commitment to the work they do and work 

cooperatively with one another to effectively carry out the agency’s mission. This enables the 

FMC to provide a high level of service to the American public. For example, almost 90% of 

employees understand how their work relates to agency goals and priorities. Ninety-three 

percent of survey respondents said that FMC employees cooperate to get their work done. 

Eighty-four percent responded that employees share job knowledge with colleagues within their 

work units. 

Questions about training and employee development at the FMC also received positive 

responses. Almost 80% of employees believe that they are given a real opportunity to improve 

their skills within the Commission. Eighty-two percent responded that management in their 

work units support employee development. Ninety-five percent said they can easily access 

electronic learning and training programs from their desks. 

The Commission scored well on questions relating to the creation of an effective results-oriented 

performance culture but some areas for improvement have been identified. On the positive side, 

over 86% of Commission employees believe that they are held accountable for achieving results 

at work. Additionally, most employees believe their performance appraisals are accurate 

reflections of their performance and that conversations with their supervisors about their 

performance are worthwhile. The Commission has been successful in communicating to 

employees via performance standards what is expected of them in order to be rated at different 

performance levels during the annual performance appraisal process. Eighty-five percent of 

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employees acknowledged they understood what was expected of them in terms of job 

performance in order to be rated at different levels on their most recent performance appraisals. 

Areas for improvement include the ability of the performance management system to deal with 

poor performers and a perception that pay raises are not dependent on how well employees 

perform their jobs. The FMC improved its positive rating in this area by 26.9% over the 2006 

Survey; however, the Commission strives for additional improvement in this area. Also notable 

were concerns expressed by employees about limited opportunities for employees to get a better 

job at the FMC. Nearly 55% of employees surveyed responded positively to this survey 

question. This is a 16% improvement over the results of the 2006 survey at the FMC. Within 

the last year, the Commission has taken steps such as reexamining its policy on upward mobility 

to address concerns raised by the Survey in this area. 

Forty-one items reflected marked shifts from the 2006 results where a variance of more than 9% 

was recorded. All 41 questions constituted positive increases, with no decreases. The largest 

shift was seen in the area of recruitment, development, and retention where the positive response 

rate increased by more than 31% between the 2006 and 2008 Surveys in response to a question 

about the Commission’s ability to recruit people with the right skills. The results also spoke to 

an improved perception of the “performance culture” at the FMC where positive response rates 

increased over 15% for several questions in that category. 

The Commission substantially improved its scores in questions relating to overall job 

satisfaction. Notable was a 20% increase in satisfaction with the practices and policies of the 

FMC’s senior leaders, a 17% increase in satisfaction with training FMC employees receive for 

their present jobs, and an 11% increase in job satisfaction. Overall satisfaction with the FMC 

increased by 20% above the 2006 Survey results. 

Twenty-two questions shifted by between 3% and 9% from the figures reported in the 2006 

Survey. All responses except one constituted a more favorable opinion than was registered in the 

2006 Survey. A question regarding supervisor support for work and other life issues fell by 4% 

from the 2006 Survey results. The FMC’s positive rate of response to this question was 86% and 

exceeded the government wide average by 11%. Nine questions showed less than a 3% change, 

too small to reflect a trend having statistical significance. 

The Commission’s percentage of positive responses exceeded the government-wide average in 

all but three questions. One question measured employees’ commitment to their job by asking if 

they liked the kind of work they do. The FMC received a 79% positive response rate while the 

government wide average was 84%. At FMC, the number of positive responses to this question 

increased by less than 1% between the 2006 and 2008 Surveys. When asked if employees 

believe the work they do is important, the Commission received an 84% positive response rate 

while the government wide average was 91%. The number of positive responses to this question 

by FMC employees was unchanged from the 2006 Survey. 

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Federal Maritime Commission

Health and Wellness Initiatives 

The Federal Maritime Commission operates a robust health and wellness program for its 

employees in support of the President’s Work-Life initiative. The FMC recognizes that an 

effective health and wellness program helps drive employee satisfaction and positions the 

Commission as an employer of choice. 

In fiscal year 2008 and 2009, the Commission linked its wellness programs to the U.S. Office of 

Personnel Management’s (OPM) Retirement Readiness: NOW model. This model emphasizes 

career-long retirement planning with preventative care and making decisions that promote 

healthy living as essential parts of the planning process. This linkage provided an opportunity 

for the FMC to tie wellness with its financial literacy education plan and volunteerism initiatives, 

which are the other elements of the Retirement Readiness: NOW model. 

The FMC contracts with the Federal Occupational Health Service (FOH) to operate a health unit 

at the Commission’s headquarters. The FOH nurse provides many of the on-site health and 

wellness services to our employees. Services available include first aid, immunizations for flu 

and pneumonia, blood pressure monitoring, lipid panels to test cholesterol levels, allergy clinics, 

lactation support for pregnant and nursing women, and tests for exposure to tuberculosis. All are 

provided at no cost to the employees. The health unit also stocks literature and videos on various 

health-related topics. During FY 2009, the FMC worked with other tenants in its headquarters 

building to commit the needed funding to have the health unit open four additional hours each 

day. Previously, the health unit closed at 12:30 PM each day. 

The Commission also contracts with FOH to provide an Employee Assistance Program (EAP). 

All FMC employees and their dependants can receive up to three confidential counseling 

sessions for any emotional, relationship, financial, or job concern. The FMC receives quarterly 

utilization reports from FOH to monitor usage and employee satisfaction with the services 

provided by EAP. In the past, the EAP counselor assigned to the FMC has presented seminars 

for FMC employees on topics like managing holiday stress and time management. FOH also 

sends a representative to the FMC’s annual health fair to distribute literature about EAP services 

and stress test cards. 

The FMC’s Office of Human Resources takes the lead for planning and marketing health and 

wellness initiatives. OHR publishes a bimonthly newsletter titled BodyWatch, which highlights 

wellness information and activities. The newsletter is distributed to all employees via e-mail and 

posted on bulletin boards in common areas. OHR also issued a memorandum promoting the 

President’s Challenge for Physical Fitness, and encouraged employees to meet recommended 

goals for physical activity set by the President’s Council for Physical Fitness. 

During the Federal Benefits Open Season, OHR sponsors a benefits fair that is open to FMC 

employees as well as other Federal employees in the headquarters building. In fiscal year 2009, 

eight insurance carriers, the FMC’s on-site nurse, EAP counselor, and representatives from the 

Flexible Spending Account and Federal Long Term Care Insurance Program had booths. About 

300 Federal employees attended the fair. 

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In July, OHR partnered with Blue Cross and Blue Shield to bring in a nutritionist from Virginia 

Hospital Center to present a seminar on healthy living. Thirty FMC employees attended the 

Seminar. Four employees from other Federal agencies in the headquarters building also 

participated. 

To promote health and safety in the workplace, the Commission implemented an Automatic 

External Defibrillator Program during FY 2009. Training on the equipment was provided to 28 

FMC employees who have responsibilities on the Commission’s Emergency Response Team. 

The Commission recently completed an inventory of its worksite wellness programs using the 

automated WellCheck tool provided by OPM. Senior management will use the inventory to 

assess the effectiveness of our wellness program and set targets for improvement. 

FY 2011 Budget Estimates submitted to the Appropriations Committees Page 115