fl 

an

r

FEDERAL 

C

Fiscal Year End

For sale by the Superintendent of D

Washington DC204

Stock Numb
ii

FEDERAL 

WA

HELEN DE

JAMES V 

ASHTON C 

GEORGE H 

CLARENCE 
Affire of the 06hai man

3heberal CN

lnehH

TO THE SENATE AND HOUSE OF 

Pursuant to section 

No 7 of 1961 and section 

1936 as amended 1 respe

of the Federal Maritime C

1974
iv
Table of Conten

SCOPE OF AUTHORITY AND BAS

HIGHLIGHTS OF THE YEAR 

US OCEANBORNE COMMERCE I

Intermodalism

Development of Containerization 

Trends in Trade by Geographic Area 

Freight Rates and Surcharges in Fore

Terminal Growth 

SURVEILLANCE COMPLIANCE A

Agreements Review

Tariff Review

Domestic Commerce 

Dual Rate Contract Systems 

Terminals 

Ocean Freight Forwarders

Passenger Vessel Certification 

Water Pollution Financial Responsi

Informal Complaints

Field Activities

SPECIAL STUDIES AND PROJECT

PROCEEDINGS BEFORE ADMINIS

FINAL DECISIONS OF THE COM

RULEMAKING

ACTION IN THE COURTS 

LEGISLATIVE DEVELOPMENT 

ADMINISTRATION 

Statement of Appropriation and O

June 30 1974

APPENDIX A

Statistical Abstract of Filings

APPENDIX B

Organization Chart

Scope of Author

and Basic Funct

The Federal Maritime Comm

pendent agency by Reorganizati

1961 Its basic regulatory autho

Act 1916 Merchant Marine A

1933 Merchant Marine Act 19

ber61966 and Public Law 91

The Commission is composed 

the President with the advice a

missioners are appointed for 5y

of the Commissioners being app

The President designates one of 

man who also serves as the chie

of the agency

The statutory authorities and 

the following principal areas 1 

and agreements of common car

sons engaged in the foreign com

ceptance rejection or disapprov

engaged in the foreign commer

tion of rates fares charges cla

practices of common carriers by 

of the United States 4 licen

warders 5 investigation of d

fications and practices in the 

offshore commerce 6 issuanc

responsibility of vessel owners 

Executive Order 11548 dated July 20 

mission the responsibility and authority 

Improvment Act of 1970 to issue regula

tion by the Commission of proof of finan

liability to the United States for the disc
2

personal injury or death 

formance of voyages or c

ing financial responsibilit

to meet the liability to th

hazardous substances an

and making rules and re

carriers by water termin

persons subject to the Coms

The Commission shead

Washington DC 20573 

Atlantic District 

Pacific District 

Pacific District Southern CaP

Gulf District 

Puerto Rico Office 
Highlights of th

Fiscal year 1974 saw continu

age with technological advanc

trade areas

Overshadowing this growth 

tion and energy shortages

The tremendous capital in

change was made more onerous 

result there was an increasing 

gether in one type of combinat

ital outlays

In the first part of the fiscal y

alarming rate driving up the c

continually forced to increase r

The shortage of fuel on the 

slowdowns in service to comba

fuel

Against this backdrop the F

its statutory authority to the ut

ofUSoceanborne commerce

The Commission sefforts w

effects of the energy crisis In 

efforts to bring order to intermo

Fuel Crisis

As the fuel crisis became ac

assisting to offset its effects

Conferences were encourage

ship capacity where they pos

ences did not have the auth

consideration to applying to t

alization plans

569 620 0 75 2
Inflationary Effects an

Burgeoning worldide 

ship operators attempting 

expensive services such as 

In an effort to offset t

amalgamate their resource

Thus the Commission a

foreignflag carriers in the 

lease of containers chassis 

The Commission also a

change Agreement provid

water rail and highway c

Another form of concer

increased use is the discus

approved arrangements g

discuss rates rules and reg

proposed thereunder howe

for its scrutiny

Intermodalism

The often tortuous journ

continued

More and more conferen

cuss and develop intermod

4

The Commission also s

in other ways The Intern

tors was formed to discus

quirements This agree

Commission

Carriers and conferenc

increases and surcharges 

where justification was sho

In addition the Comm

Utilization and Conservat

mation help and guidanc

to carriers in locating sour

sistance to the industry
The Commission sprincipal 

dalism continued to be in the leg

the Commission urged the Cong

by passage of legislation conferr

carrier with the Federal Marit

that intermodalism can only rea

guidance of this agency

Jurisdiction Upheld in La

The United States Court of Ap

the Commission sjurisdiction o

national Longshoremen sAssoc

Association which allocated ce

among NYSA members

The parties had contended tha

been made a part of the basic la

diction was ousted

Merger Order Vacated

The United States Circuit C

vacated an order of the Comm

R J Reynolds Industries of Uni

The Commission had approv

sive conditions designed to main

with another Reynolds subsidia

The Court concluded that the 

diction over such acquisitions 

conditions

Portland Diversion Case

In fiscal year 1974 the Comm

versy involving service at the P

Carriers and conferences we

Portland through the Port of S

land truck and rail movement T

for investigation from Portland 

revenues

The Commission resolved th
6

rier could engage in the 

to Portland on no less than 

Cotton Controversy

Upon petition of vario

ducted an investigation o

pean Conference with resp

The Conference had a

against any shipper found 

The Commission direct

practice pending completi

in the contract

Commonwealth Enters 

At fiscal year send the 

its intention to enter the fie

Under its proposal the 

the principal carriers in 

This novel situation und

problems
US Oceanborne 

in Review

INTERM

Tariffs

Carriers and conferences con

the Commission under which 

through service Such tariffs ha

in the following trades

US West Coast and the Un

and Gulf Ports Gateways

US East and Gulf Coasts 

Gateways

US Gulf Coast and the U

Atlantic Ports Gateways

Inland Points in the Unite

Ports

Inland Points in Italy to US

USAtlantic Ports to Iran 

Although presently limited 

will very shortly commence to 

in the recent past been granted 

sion The use of such authorit

the number of intermodal tarif

In the past it was somewhat d

containerized or intermodal 

Today however containerizat

long a reality in the develope

in the developing nations Gen

developing nations has been c

tured goods from the US an
8

goods and certain food st

of the physical characteris

able nature of others cont

of transport Accordingly 

from the developin nati

been experimenting in the

been improving port faci

tems and otherwise making 

beneficial to them These 

rise to an increase in cont

additional tariffs to be 

Commission

Although it is presently 

will increase many times 

should legislation be ena

operate unencumbered by 

and the possibility of ru

Agreements

During fiscal year 1974 

authority to establish and i

points in the United States 

within the scope of their re

total number of agreemen

the close of the year thre

pending one of which th

subject of an investigatio

Also during the year 

Pacific Freight Conference 

of JapanKorea implemen

intermodal rates with the 

conferences that have impl

position to offer intermoda

Of the 32 agreements wi

dual rate systems in effect 

received approval to extend 

to inland points All five a

Westbound Conference has 
include its OCP territory and 

consideration in a formal p

LASHSeabee Services

LighterAboardShip LASH 

a complement of barges or lighte

for trades with inland waterway 

which are navigable by barge b

LASH vessels operate between 

United Kingdom Far East an

Developments have continued 

service during fiscal year 197

LASH interchange agreements 

the parties to interchange barge

tion with their LASH liner ope

ing before the Commission a m

in the ContinentalUS North A

conference member that operate

to any vessel operating common 

type service There is also indi

the US West Coast South P

inaugurate its LASH service on 

Coast to Indonesia and Mainlan

plans to eliminate the carriage 

vessels wholly within the LASH 

Roll Services

RollonRolloff RORO 

whereby cargo is moved on an

containers or vehicles During f

was introduced into the US W

of fiscal year 1974 there was 

approval a new rate agreement 

service in the trade between F

lands Antilles There is also in

USAtlanticPuerto Rican tra

water trade routes possibly in

service This same carrier rec

liferation of its operations thro
DEVELOPMEN

Equipment

Intermodal containers l

a survey of projected aver

one billion dollars worth o

is expected to rise to almos

growth increments of 20 p

Gulf Coast

For example the seapor

a carefully planned search 

during the past year The

center upon Houston and 

trade Other ports such a

making determined bids to 

at least to have significant 

cities are content in their tr

bulk centers The smalle

services to spearhead their 

established commodities t

retained its position as the 

building new facilities ho

leans has taken a significa

ments by opening a new b

container crane in the port

Latin America

Progress is slow in Lat

this is the overall lack of 

Central American countrie

for their needs at the presen

Great Lakes

While containerization 

ports its progress at Grea

tinues to be slow Expendit

small as do container mov

10
Far East Interchange Agre

During fiscal year 1974 the C

10032 covering an arrangemen

eign flag carriers for the interch

trailers and related equipment 

mon carrier services in the trad

Far East ports in the range fro

Coast of India and Pakistan The 

tate and coordinate the develop

container interchange The agre

of other carriers which apply a

conditions Since the date of ap

become signatories

Container Agreement

Another significant developm

implementation of the Uniform 

UIIA This agreement was fi

the rules under which water ra

containers in the United States 

representatives from the Steams

Agreement No 9735 the Ass

the truck industry sEquipment 

officials see the agreement slo

modalism

Leasing

Although containerization co

nent role in the world trade c

which impedes the expansion 

cept is the huge investments re

tainers Not everyone can meet 

solution to this problem appear

to help carriers reduce the oper

ciated with transporting conta

more and more popular due t

containerization is no longer 

intermodal system including ov

507 629 0 75 3
TRENDS IN TR

United Kingdom Cont

In this geographic area 

ployed by both small and 

determining whether or 

ments of a more substan

new discussion agreemen

twoparty agreement to a 

these four agreements the

this area Those approved 

ment among five US co

10057 for the purpose 

nating disruptive cross bo

seven containerRORO c

Iberian Peninsula Trade 

American flag line and a

feasibility of a cooperativ

ment among 39 non cont

where necessary relative 

container operators 101

A new type of agreeme

the cross charter arrange

charter space to each oth

lieu of using their own v

proposed as both an ene

gency measure where a cas

cannot make a scheduled 

ments has been approved 

sion action

Also in fiscal year 19

Section 15 matters They 

AtlanticNorth Europe t

agree on rates and practic

pendent lines in this trade 

thorization for four tran

flag carrier covering ser

Baltic and Black Sea ports

12
Latin America

Agreement No 10064 a new 

a free access arrangement wh

year 1973 was approved by the 

This agreement covering the US 

parties thereto to have free acc

cargo available in the trade Ea

No 10066 another free acces

tical to Agreement No 10064 e

West CoastColombia trade wa

proval and is presently under in

Indian Ocean

A new development that of a 

ing fiscal year 1974 in the Indi

desh USAPool Agreement 

April 5 1974 is pending Comm

five of the six members of the Ca

ladesh USAConference wou

ings derived from the transport

tions from Calcutta and ports 

Gulf ports In addition to the p

nues under the agreement a ra

templated thereunder The initia

for five years from the date of 

mission

For East

On February 19 1974 the C

10107 entered into by the mem

Conference Hong Kong as on

Line Orient Overseas Containe

and Zim Container Line Inc in

conference trade from ports in H

West Coast of the United States

On the same date the Commi

10108 covering an identical a

the New York Freight Bureau H
Lines Inc Orient Overs

and Zim Container Line 

trade from Hong Kong 

Gulf ports

These agreements cove

may confer discuss and 

practices and related tarif

in said trades but with th

to alter for itself any rate 

tariff matter thus agreed 

giving the other parties at 

ments also authorize the 

reasonable charges and r

carriage of containers a

storage and other accesso

cargo under terms and co

Conditions prevailed i

the conferences The confe

the trades could be resolv

lines could be persuaded 

Nos 10107 and 10108 w

creating an appropriate 

ference lines and the inde

Since the date of appr

policing systems have be

ments The authority of th

as the conferences dual r

independent carriers und

The Japanese Revenu

filed by six Japanese flag 

pooling and division of 

proved space chartering a

and 9835 in the trades 

and ports in California O

common point cargo as a

ments

The minutes of meetin

carriers comprising the m

14
ment No 9981 contain matte

quirements type of cargo and 

carriers for incorporation in 

ment to apply in the United Sta

rangement is still in the discussi

Worldwide Discussion Agr

The general trend in discuss

past year with the filing of and a

ment No 10099 a worldwide di

ment established the Internation

tors ICCO by three American 

companies operating worldwid

ment is to provide a forum for d

tion with respect to a wide range 

including but not limited to 

regulations technological deve

ments monetary and fiscal polic

ernmental programs which affect 

FREIGHT RATES AND 

COM

General Rate Increases

Fiscal year 1974 as in prio

general freight rate increases 

accelerate requiring carriers to 

for the purpose of accommodatin

of operation Additionally as 

maintained and others newly i

situations or problem trading are

Surcharges

Surveillance over surcharges 

of the Commission While the C

must be compensated for increas

yond their control such as labor 

conditions currency fluctuations 

Commission is also concerned r
upon those engaged in th

Accordingly the Commis

order to determine the va

to which it should remain 

riers and data received 

sources the program has b

have been reduced and 

therefor

During the energy cris

quired to pay tremendous 

ternative to a suspension 

tation of a surcharge to o

shippers recognized the d

ment of the surcharge rat

Commission maintained 

working and meeting with 

fiscal year to have many 

expected to be reduced sh

carrier representatives an

seek additional reduction

Currency and port con

eliminated

surveillance

in a great ma

Activity in this importa

to insure that surcharges 

commerce and to further 

warranted

Disparities

Another important pro

parities which occur when 

than the other on the sam

trade Such disparities m

USexporters to compet

ingly it is endeavored to h

tariffs

Disparate rate situatio

three proceedingsDock

16
port Docket 1171 Outbound 

High Pressure Boilers Utility T

Components and Docket 6545 

tures in the Trade Between Uni

Ports in the United Kingdom and 

dom Freight Conference Agree

Westbound Freight Association 

ings the Commission set out gu

parities requiring carriers and c

As a result of the decisions 

Commission instituted a program 

in reciprocal trades Whenever a 

parate rates an effort is made to 

mal basis The program has been 

parate rates have been adjuste

goods under lower rates Howe

which the Commission has had 

deal with disparate rate situatio

ing in the North Atlantic Contine

USAtlantic Gulf and Pacific p

mer trades many of the disparitie

latter trades initial remedial rat

In addition to the disparate ra

shippers also bring such matters 

individual basis Here too there 

parate rates again affording ship

sale of their goods in the foreign m

The obvious importance of th

on

efforts

our commerce

be intensified

resulting

in this

therefr

area

TERMINA

The role of marine terminal i

nection between the ocean carrie

In addition the terminal industry 

landsea interface in the interm

inherent technological advantages 
over traditional shipping 

point it appears that the 

and modernization to ac

transportation systems is 

dollars have been expend

rehabilitation of older fa

upland handling areas fo

sembly areas for serving 

for loading and unloading 

facilities either have been 

at virtually every major US

The involvement of ou

borne foreign commerce is 

tion of the recently inaugu

Not only is cargo that on

and inland destinations no

can heartland but the imp

exportoriented industry i

to direct ocean transportat

18
Surveillance Co

and Enforcemen

AGREEMEN

Section 15 of the Shipping A

approval shall not be permitted 

fails to provide certain terms an

admission to conference member

out penalty It further provides th

any such agreement after notice 

quate policing of the obligations 

maintain reasonable procedures 

shippers requests and complain

criteria for agreements that will 

tinued approval One of the crite

ment that is in violation of the Sh

During fiscal year 1974 154 

under Section 15 A statistical ta

ments appears as Appendix A

The surveillance of approved 

basic agreement and modification

it continues to meet the requirem

ble Commission sGeneral Order

and is in conformity with the late

and Commission policy If the a

with the above criteria correspon

ment parties in an attempt to hav

into conformity Occasionally t

after the implementation of a form

our surveillance program 153 ag

three letters have been sent conce

determine if they are still in effec

569 619 U 75 4
Reports are filed by p

determine that no malpra

that the parties are not 

their agreement and the 

and the shipping public

Minutes of Meetings

It is the responsibility 

to Section 15 conferenc

times complying with th

proved agreement In o

Commission must be ful

which conference operat

requires that meaningfu

furnished it While the a

sion only with respect to m

action rules have been p

the parties to summarize 

keep the Commission be

As more discussion ag

is imposing requirements 

and copies of data excha

Commission

In fiscal year 1974 1

ence ratemaking and dis

mission and reviewed by 

Shippers Requests a

The phrase shippers 

munication requesting a 

objecting to rate increase

erroneous billings due to 

correct weight or measu

of the tariff Under Dock

tion of shippers requests 

reporting of such other r

to carriers practices 

pers requests and comp

most always restricted t

20
adjustments only whereas confe

ceive complaints relative to carr

lished by concerted action of th

ence or other ratemaking group

In fiscal year 1974 325 repo

complaints were filed with the Co

Self Policing Reports

Pursuant to the Commission s

rate agreements with three or m

for a self policing system and to 

ing the months of January and Ju

sixmonth period Approximately 

are currently subject to these req

these conferences and rate agre

policing reports with the Comm

special requirement four quart

Executive Director of the Associ

ence

member

ANAFC

conferences

covering the po

As for actual self policing ac

approximately 700 investigation

about 200 being completed by ye

tions about 100 resulted in pro

levied in about forty percent of 

in the others Although this may 

self policing activity it actually 

fifteen conferences and rate agre

the investigations were conducte

covers the activities of its eigh

seven or more carriers each

In view of the many conferenc

policing systems have apparent

practices the Commission has 

Docket No 7364 to propose 

under General Order 7 It has a

Docket No 74 to determin

of four conferences in the Far 

meaning of Section 15 of the Ship
Pooling Statements

Pooling statements are 

prised of the activities of 

data on the financial sett

to the terms of the pool f

ments are usually filed o

are often quite complex 

and undercarriage forfei

amount of time for audit 

ing agreements provide f

of necessity have increa

time is needed when fou

statements to ensure com

agreements The majority 

can trades They usually 

Government served in ad

may be implemented The 

and the conditions desire

line usually government 

in the processing of such 

to be filed following the im

Sixtythree pooling st

for audit by the staff This 

increase over the numbe

sion during fiscal year 19

pooling statements is ant

the Latin American trad

agreements that monthly 

this regard however ther

provided for the filing of 

ified to delete the month

and annual reporting

There have been sever

due date and the actual f

to a large degree by the 

agreed to by all partici

pant s and because of th

pool formula

22
Operating Reports

In view of the increasing num

by conferences with intermodal a

new agreements as space charte

Japanese trade in addition to 

by parties to cooperative workin

ments in our Twelfth Annual R

category ie Operating Repo

in the industry it is expected th

crease in the future These repo

tailed analysis in order that the C

of the parties and assured that 

scope of their approved agreem

were filed with the Commission 

year 1974

Nonexclusive Transshipmen

On May 14 1968 the Comm

which exempted nonexclusive 

ments which do not prohibit eith

agreements with other carriers 

15 However such agreements m

in the General Order and the invo

required by the order The Comm

filings as is the Managing Direct

to approve transshipment agreem

mission Order No 1 Revised 

Order through June 30 197

agreements have been filed with 

terminated resulting in 398 suc

of the magnitude of these agree

corporating them for the first tim

ing them in the statistical worklo

Domestic Agreements

During fiscal year 1974 17 d

were filed for Commission con

ceipts and total active agreemen
24

Thrtyfive sets of minu

ference and ratemaking a

T

FOR

Filings

During fiscal year 197

ing an increase of appro

decade ago Tariffs have 

recent years as a result o

and intermodalism othe

changing trade patterns T

staff scrutiny and analysi

Section 18b and 

filing rules and regu

Section 15 as to whe

under or whether ra

extend beyond the Cos

Section 14band th

tract systems as appro

Sections 14 16 and 

and undue or unfair p

General Orders of the 

compensation impor

In fiscal year 1974 in 

ceived an increase of app

in fiscal year 1973 Expa

price increases general in

all contributed to the inc

rate reductions were filed 

lower transportation costs

Statistical Abstract

Filings r

Filings a

Filings re
Special Permission Applicat

Freight tariffs by statute mus

days in advance of becoming effe

that the Commission may in its d

allow a tariff to become effective 

cation to advance an effective d

accuracy of allegations related t

propriate recommendation is m

should be granted or denied In f

sion applications concerning fo

which 477 were granted 47 den

The majority of the applicatio

to implement bunker surcharges 

dinary increase in the cost of fu

report

Programs and Surveillance 

In addition to the requiremen

insure compliance with the time

ther scrutiny must be made wit

important statutory provisions a

sion

Conference tariffs are examin

whether they are filed consisten

approved agreements All tariff

structures rules or regulations d

or among particular persons or 

advantage to any particular per

as proscribed by statute

Whenever it is determined tha

tact is made with the tariff filing 

particular matter or situation co

informal negotiations fail an a

to the Commission for formal de

There are additionally ongoin

for the purpose of examining 1 

contained therein are not incon

the Commission has jurisdictio
sation rules 3 intermo

4 trading area patterns 

Further the Commiss

which allegations are mad

carriers or conferences 

deavoring to render assis

Additionally meetings 

particularly those engage

and seeking solutions to p

ings are held when reque

shipper associations

The shipping statutes 

in unjust prejudice to Am

foreign counterparts Th

as much data as possible 

the implementation of 

foreigntoforeign trades 

the Commission sfiles 

faced with operating and 

serving US foreign com

toward higher transporta

extraordinary and unexp

fluctuations bunker increa

foreign commerce are als

There is no indication that 

atory rate actions designe

Tariffs under which n

not only meaningless but 

riers actively engaged in 

Commission takes steps to 

ing entities Each year n

program

Conferences under the p

to report to the Commissio

requests and complaints 

that 6213 requests were 

or approximately 57 perc

a request be denied shi

assistance

26
During the fiscal year the C

Commerce published a revised ed

Rate Guidelines for Shippers 

dated and expanded in the new e

to provide United States exporte

exporters with general informat

of ocean shipping including such 

surance Packing and Containeri

a wide range of technical services 

exporters by both the Commissio

DOMESTIC 

Filings

The Commission sregulation 

trades is prescribed by section 1a

the Intercoastal Shipping Act 19

unlike the US foreign comme

to suspend a rate prior to its effe

to determine the reasonableness 

making recommendations to the 

of its suspension power care m

trade patterns as the shipping ind

shifting competitive positions 

ernmental actions and 4 adva

During fiscal year 1974 127

912 were rejected Additionally 

mission to waive the provisions 

1933 or the Commission sregula

Energy Crisis

When the energy crisis emerg

quick to assess the impact of the 

permission from the Commission 

mission responded by waiving o

ulations to facilitate the surcha

quiring full cost justification of th

where the carriers could fully an
by paid invoices fuel cont

surcharges were permitted 

ship lines serving the dome

was preserved while at the 

consumer against unfair pr

NVOCC Study

The Commission attemp

in the domestic offshore tr

riers Utilizing Section 21 

and General Orders No 

NVOCC swere compared t

routes The NVOCC paym

then reviewed to indicate 

revenues of the vessel opera

The study indicates that 

ity NVO scontributed 42 

teen underlying vessel ope

percent of the total gross 

domestic trades

Automobile Shipping 

In December the Commi

of the FMC Guide on Ship

turers Measurements for 

1974 guide was smaller th

24 automobile manufactu

nishing of this information 

the automobile shippers is 

manufacturers There was 

ufacturers for their sudden 

Puerto Rico

At the close of the 1974 f

ping Authority PRMSA 

tiating the acquisition of th

Puerto Rico from the US 

a merchant marine with the 

tial rate treatment to com

28
Rican based industries As PRM

mission will vigilantly monitor 

The Commission suspended 

proceeding the proposed reduct

All Kinds rate applicable from 

since the carrier failed to also 

Atlantic Coast ports The Comm

ation to be unlawful

Minimum charges per shippe

became effective in March an

docketed proceedings now befo

mitted justification at the time 

claiming a need to more adequ

The Commission placed und

posed uniform wharfage charge 

through which Puerto Rican ca

charges were placed under susp

violation of the Shipping Act 

are lawful and reasonable und

ping Act

Alaska

In response to the needs of th

the Alaska Pipeline the curre

tercoastal Shipping Act 1933 a

lations applicable thereto for t

between Seattle Washington a

and Beechy Point and Tigvaria

of Alaska the Bering Sea and 

was amended by the Commissio

United States except ports in 

Baton Rouge Louisiana and 

tion of one of the carriers in 

Commission also extended the 

cember 31 1975

HawaiiGuam

The US West CoastHawa

one dominant underlying water 
carrier of a major portion o

simultaneously withdrew fro

previously had not served G

rate levels applicable to G

purchase

General rate increases in 

fected in the US West Co

proposed increase in the iden

Guam from the USEast Co

were indications that the c

return if the increase was all

the matter and withdrew from 

DUAL RATE 

Section 14b of the Shippin

to approve dual rate contrac

ference of such carriers in fo

be violative of the antitrust st

During fiscal year 1974 

cations were processed by the 

The Trans Pacific Freigh

Atlantic and Gulf Freight C

for a spread of 95 percent 

rates The Commission appro

the institution of appropriate 

systems should be continued 

been assigned Dockets Nos 7

sideration before an Administ

The Commission approved 

African Freight Conference 

tract system covering coffee c

full shipload lots in its westb

The Commission also appr

Gulf of AdenUSAtlantic a

term of its dual rate contra

period

The petition of the South 

30
extend the term of its dual rat

cept coffee for an indefinite 

Wallenius Line filed an ap

system on new automobiles t

vehicles unboxed moving 

Lakes ports to ports in the Le

navian Baltic ports to apply 

mission action thereon is pen

The Commission set for h

contract systems of the Pacif

DR3and the North Atlant

7770DR4 These modif

to raise rates in the event of 

rency This course was take

were completely lacking in an

safeguards designed to meet 

rulemaking in Docket No 735

TE

All USterminal operators 

required to publish and file 

the rates charges rules and 

fered at their facilities Also 

operators and or common ca

prior to their implementation 

sion as to whether or not they 

corded under section 15 of th

Tariff Filing

In the course of fiscal year 

received on behalf of termin

fiscal year the Commission h

on file

Agreements Review

During fiscal year 1974 1

Commission consideration A 

active agreements is attached 
Conference Minutes

In fiscal year 1974 14

domestic offshore carrier co

filed with the Commission 

Rulemaking

The continuing trend o

simultaneously as stevedo

coupled with the tremendo

and rollonrolloff vessels 

between terminal operator

inclusive terminalstevedo

raised jurisdictional proble

tion over the activities of 

never been ruled on by the C

In order to provide guid

section 15 filing requiremen

mission has decided to revis

Rules Governing the Filing 

andor Other Persons Su

pose of the revision is to 

agreements and to propose 

Act 1916 for certain type

revision will be published 

ceived during fiscal year 1

Alternatives were explor

rulemaking proceeding to e

strike situations where the 

operator is unable to tend

port cargo This measure 

rently no uniform rules c

demurrage charges for carg

terminal facilities due to la

York export and import ca

rules and regulations which 

from the assessment of dem

of labor tieups which preve

other ports do provide some 

32
currently exists a lack of unifo

port cargoes and no uniform 

carrier or terminal operator in 

to either tender import cargo 

through no fault of the shippe

OCEAN FREIG

Congress amended the Ship

enactment of Public Law 872

and regulation of ocean freigh

Commission Pursuant to that 

its General Order 4 which set

by freight forwarder applicant

the conduct and activities of reg

Licensing

Since the enactment of the 

have been licensed after a th

fit willing and able prope

tions in the public interest

At the end of fiscal year 19

dependent ocean freight forwa

applications were received an

24 applications over fiscal yea

Denials and Revocations

During fiscal year 1974 th

licenses for various reasons 

withdrawn

Significant Proceedings

Significant freight forward

during the fiscal year were Do

Zanelli Co which found t

chaser of shipments to foreign 

44 Shipping Act 1916 and t

Docket 7410 Freight Forw

at United States Ports Possibl
and General Order 4 wh

bidding practices of cert

ministration forwarder se

This investigation was 

certain statistical inform

licensees who were succes

tracts at variousUSports 

bids were in violation of 

sions of the Shipping Act 

Examination of Forw

There is a continuing 

forwarders to determine w

relationships with export 

of substantive Commissio

Steps are taken to resolve 

compliance or where nec

actions The most serious 

where a freight forwarder 

port shipper or consignee 

statute

Automatic Data Proce

An automatic data proce

pendent ocean freight forw

pilation identifies the nam

branch offices of all curre

updated and reissued app

bution to Commission Fiel

forwarder information on 

carrying out the Commisss

ing fiscal year 1974 as a b

to the freight forwarding in

Rulemaking Proceedin

The Commission srules 

freight forwarders Gener

order to keep the Commisss

34
interest and abreast of the m

industry Proposed revisions 

and a proposed rulemaking 

year 1975

PASSENGER V

Sections 2 and 3 of Public 

dence of financial responsib

operators of passenger vesse

embark passengers at United 

or injury and to indemnify 

ance of a voyage or cruise

Certificates Issued

The Commission approve

financial responsibility The

cates of Financial Responsi

for Nonperformance of Tran

tificates of Financial Respo

Injury and 23 amendment

added vessels to their fleets 

tered their corporate partne

Certificates Revoked

The Commission revoked 

were withdrawn from service 

ent ownerships

Enforcement

On August 24 1973 the 

tigation and Hearing on Win

Cruises Ltd Docket No 735

at United States ports in vio

89777 and the Commissios

the statute This matter is cu

One new certificant abrup

the 1974 fiscal year These s
by the Commission includ

the Commission sfield inve

tion afforded to passenger

demonstrated No passenge

fare due to the cancellation 

oil problems or as the 

operations

Passenger vessel operati

many difficulties The oil 

availability of fuel the inc

itability and some vessel

to be withdrawn from serv

to effect bunker price incr

sengers who had made rese

increased fares as a result o

Passenger Conference a

During fiscal year 1974 

conference and passenger ca

ger agency and sales agree

ments between passenger c

passenger carriers revisio

agents and group organizers 

At the end of the year 3 

action

WATER POLLUTION 

The Federal Maritime C

bility for carrying out the 

Federal Water Pollution Co

Section 311 p1requ

300 gross tons including ce

port or place in the United 

United States including the 

tain with the Federal Mari

responsibility to meet the lia

vessels could be subjected f

stances discharged into Unite

36
The financial responsibility 

been in effect since April 3 1

to hazardous substances will b

tal Protection Agency establish

pated that this list will be is

year

Level of Responsibility

The evidence of financial r

100 per gross ton of a subj

is the lesser Such evidence 

maintained to indemnify the U

curred in the removal of discha

of the United States adjoining 

of the contiguous zone

The Commission sregulatio

nancial responsibility require

the certification of vessels hav

cial responsibility requireme

the owners or operators of sub

evidence of financial respons

required by the Commission f

as the basis for denial revo

certificates

Enforcement Provisions 

The Federal Water Pollutio

enacted on October 18 1972 

ance with the finanical resp

jected to a fine not to exceed 

detained by the United States 

ance by the United States Cus

eral Order 27 was amende

provisions

Coordination of Enforcem

The enforcement authority 

sibilit requirements involves 

Guard and the United States 
necessary for the Commis

with these two agencies t

leaving United States wate

sponsibility requirements

Enforcement under sec

10000 denial of vessel 

Guard and refusal of c

Service By the close of t

had agreed to a coordinate

Filing Requirements 

General Order 27 as o

ment of evidence of financ

insurer The regulations r

semiannual financial sta

reports

Experience has demons

cial statements and annu

serves no useful purpose 

of such persons Accordin

General Order 27 it being 

of annual financial statem

lic accountants is sufficien

regulation provides that th

require the more frequent 

New Implementing R

The Federal Water Po

provides for the addition o

lutants for which vessel o

cial responsibility The ad

come effective however u

issues regulations designa

Because of the addition 

viously certified as having 

moval of oil must be rec

financial responsibility re

well as oil The Commissio

1973 implementing this ch

38
effective and replace General O

Protection Agency slist of haz

and is intended to provide for o

substance requirement by the 

vessels

Insurers Examined

Generally vessel owners and 

cial responsibility by submissi

surance is written not only b

underwriters throughout the wo

The Commission must analyz

ity of the insurer before accepti

by such insurer During the fisc

independent foreign underwrit

individual underwriters

Certificates Issued

During the 1973 fiscal yea

3126 vessels certificates wer

covering 2511 vessels were re

sale of the vessel to new owner

were withdrawn

At the end of the fiscal year 

certificates and applications in

were pending processing

The workload does not dimi

it increases due to changes of 

tors substitution of one type o

for another annual submissio

transfer of ownership charte

situations which necessitate da

of records together with the re

numerous certificates

Automatic Data Processin

An automated record retent

the fiscal year This system p
vessels vessel particulars 

e

owners and operators and th

the close of the fiscal year th

was being verified and plan

analytical data for the Comms

INFORM

Effective September 1 19

complaints except complai

lems were assigned to the 

merce and one employee is n

of informal complaints with 

tariffs and terminal problem

and Terminal Branches for 

more efficient utilization of m

savings to the Commission 

such complaints has increase

ping public with fewer person

There were 42 informal c

fiscal year 1974 and during 

At year end only 35 compla

been concluded on 308 Of th

related to practices of water c

shore trades 29 10 re

operators 16 5 related 

freight forwarders and 4 1 

In addition to the foregoin

ism handled informal compla

andor protests At the close 

plaints of this nature were pe

complaints were received m

upon At the close of fiscal ye

leaving 81 to be carried forw

complaints received 124 7

lems concerning rate protest

27 fell into miscellaneous 

40
FIELD 

The Commission maintains 

Orleans and San Francisco an

in San Juan Puerto Rico in a

lated shipping industry and th

handles matters at ports in t

Great Lakes the San Francisc

USPacific Coast Hawaii G

office handles matters at ports 

lantic Coast and offshore are

States are covered by the Coms

These offices furnish infor

Commission public document

persons They receive and re

violations of the shipping sta

ance checks special surveys a

conduct investigations of freig

their fitness to be licensed by 

passenger vessel operators to 

ance bonds required by the Co

New Investigative Cases

Field activity includes inve

riety of alleged or suspected 

and the Intercoastal Shipping 

gative cases were opened duri

completed Alleged carrier vio

ing variety 1 commencing 

complying with the Commisss

ments 2 assessing rates hig

the carriers tariffs on file w

agreements with other carrier

the Commission and 4 un

the like

Alleged shipper violations 

tion of cargo or underdeclar

carriers to obtain lower transp
Most of the freight forwar

cants seeking a license from 

In some instances applicant

activities prior to licensing 

applicants are essential to est

able to perform such operation

Civil Penalties Collected

During the year a total of 

lected by the Commission from 

to its authority under PL 94

tion Act of 1966

At the end of the year 418 c

tigation or pending final act

authority to compromise civil 

of criminal cases by the Depar

Surveillance of Containe

The Commission continued 

container cargoes to obtain t

tariff rates on file with the Co

were inspected on a spotchec

import shipping documents w

Wherever discrepancies were 

tive actions were taken

Cargo Theft

Further consideration was g

of final rules requiring comm

isdiction to file quarterly rep

Docket No 7174 The pu

Commission with information 

statutory functions Additiona

mission as well as other govern

and Federal and local law enf

mation which will benefit the en

The rules adopted July 1 1

water in domestic offshore co

42
be finalized In due course th

common carriers by water in 

In this connection the Com

member of the Interagency C

The loss damage and theft c

expects to collect after its ru

similar data already collected 

sion with respect to truck tra

Board with respect to air car

Service on import cargo

Special Studies

and Projects

Currency Devaluation Un

During 19711973 the d

the dollar and certain other 

foreign commerce of the Un

problem was especially acut

rate contract systems since 

the existing short notice provi

apply to de facto devalua

Since major fluctuations 

events a rulemaking procee

Order 19 which governs du

ferences with dual rate syste

short notice currency surchar

fluctuation resulting in the re

SelfPolicing Rules

Initially changes to the 

General Order 7 were includ

ing to Section 15 agreements 

of the number and intensity 

policing rules the Commiss

No 735 and place them in 

order to give them the full co

After consultation with a r

men concerning major obj

Commission on October 17 

Register of a separate rulem

to consider changes to its s

objections raised by the confe
The modified rules howev

intent in changing its self po

of self policing by requirin

establish a continuing surve

rely solely on the filing of 

reporting requirements are p

sion to better evaluate the ade

Following publication in 

still objected to certain elem

many of the previously comp

or mitigated However after 

the Commission proposed a

the more objectionable elem

impair the basic purpose of th

Automation of Records 

Forms were developed to 

agreement and General Ord

into the Commission sauto

anticipated that in August 19

this program detailed agree

a short period of time This w

analysis of any Section 15 m

pending agreements In add

sion publication Approved 

Agreements in the Foreign C

in great demand by the ship

year 1975

Cotton in the United State

In early February 1974 

Shippers Association ACSA 

serious shortage of vessel acc

US Gulf ports to the Far E

Commission might provide 

sentatives advised that the 

deliver approximately 1 m

the Far East area through Ma

46
Through constant contact w

Conference Chairman and th

became rather apparent tha

resolution would be for the c

by chartering additional vess

The necessary incentive would 

On April 1 1974 the Far 

sion for a waiver of the 9

pursuant to Article 5c of 

traordinary conditions not e

special permission be granted 

of Section 18bof the Shipp

proposed action requiring o

As the conference had open

member lines increased their 

According to information 

cotton reported during March 

bales by the end of June Th

rates to become effective on 

before said effective date Th

conference sactivities with re

Foreign Government Di

A study and analysis of e

decrees affecting US flag ca

tion 19 b of the Mercha

the Commission staff during 

a brief summary of those law

could give rise to conditions 

commerce of the United Stat

carriers Matters relative to 

are kept under continuing su 

may be aware of any signifi

occur

Bunker Fuel Shortage

As the Government agency 

borne transportation by comm

in the foreign and domestic o
the Federal Maritime Comm

this transportation which is e

necessity Therefore when t

latter part of calendar year 1

action to effect energy conser

try and to assure the availab

throughout the world so that th

oceangoing commerce would 

The Commission took the p

be allocated to both foreign 

basis to assure that any vesse

to complete its scheduled voy

obtain adequate fuel at a fo

advocated the prudent use of 

of extensive fuel conservatio

needed space availability in th

The Chairman met with r

mestic carriers serving our 

unilaterally avoid the unnece

menting fuel conservation mea

sailings maximum utilizatio

revision of sailing schedules 

advised that any energy conse

which were subject to approv

of the Shipping Act 1916 w

the Commission Three such a

did implement such measures 

unilateral conservation progr

10 to 25 percent

The Commission also wor

Office in the promulgation an

regulations implementing the 

of 1973 A Federal Maritime 

to work full time at the Feder

allocation regulations

By independent efforts the 

need for allocation of bunker 

ports an allocation for carg

48
quirements for bunker fuels 

support equipment used to p

In addition the Commiss

Energy Office task forces Th

and submitted written testim

tees considering emergency e

When certain carriers wer

both in the United States and 

by contacting the Federal E

carriers that might have had 

made to avoid the stranding 

Section 19 of the Mercha

Federal Maritime Commiss

foreign nations or carriers w

flag vessels unfavorable to s

mission was prepared to use 

therefore worked closely wi

ernment agencies to insure n

fuel to United States vessels a

By the end of fiscal year 1

to the extent that ample bun

ever should such a situation o

to assist the vessels operating 

offshore commerce of the Uni

fuel supplies available

Proceedings Be

Administrative 

Administrative Law Judges 

of

own

a

motion

complaint or institution 

Administrative Law Judges 

and affirmations issue subpe

ceive relevant evidence take 

ever the ends of justice would 

of the hearing hold conferenc

of the issues by consent of the 

or similar matters make decis

any other action authorized b

ministrative Procedure Act

At the beginning of fiscal ye

before Administrative Law Ju

added which included 1 case 

tive Law Judges for further pro

ing conferences conducted he

decisions in formal proceedin

applications and 3 decisions 

Cases otherwise disposed o

1 small claim

The Commission adopted 8 

decisions

Decisions of Administrativ

yet decided by the Comm

Docket No 7053Lerat

Lines Inc Respondent was fo

and 16 First by failing to ob

procedures in connection with 
period of time in 1967 Res

nated against complainant u

disadvantage given rebate

house companies which req

pursuant to section 15

Docket No 7154Paci

to Extend its Exclusive Pat

Include its OCP Territory T

contract to include overland 

violative of section 14b a

that Canadian ports properly 

Conference sorganic agree

policy reasons for not inc

Finally it was found that Se

Act had no application to th

its dual rate contract

Docket No 71 85Inde

plicationAirMar Shippin

freight forwarder slicense 

1916 in that it performed 

censed by the Commission 

ceased such activities and w

able to carry on the busines

provisions of the Act

Docket No 7193Viki

Co Inc Possible Viola

Shipping Act 1916 Mere 

pensive commodities as toys 

by water being provided a

plicable although effected b

was found insufficient to es

of section 16 First

Docket No 7217Agree

A proposed pooling arrange

natories filing of a rationaliz

member scapacity to its s

concomitant withdrawal of 

tions imposed by the Comm

for three years

52
Docket No 7241Truck 

This recommended decision is 

ject proceeding concerned w

proposed Truck Detention R

Proposed Rule B1a conce

and of dock receipts It was fo

used in connection with imp

proposed in proposed Rule B1

lodging of dock receipts use

should be permitted to be co

assessed for each prelodged 

Docket No 7246Pacific 

Authority for Intermodal Se

conference requested author

effect establish porttopoint 

and joint rates with inland c

provable because no present 

ity was shown and the public 

this time

Docket No 7261In the 

T2553 Agreements for sub 

Port of Philadelphia were fou

15 of the Shipping Act 191

Commission approval are no

unfair between carriers do n

merce of the United States 

terest The agreements were fo

regulations and practices rela

or delivering of property

Docket No 7324Agree

Association Final Pay Guaran

to a collective bargaining ag

and which would fund the pla

was found not to subject auto

and 17 of the Shipping Act 

thereof

Docket No 7336Abbo

A shipment described as Intra

higher Cargo NOSrate inst
under Sets Parenteral Ad

amount of the difference be

Docket No 7350The 

States Lines Inc Reparati

charged and collected only 

its tariff Respondent starif

otherwise unlawful

Docket No 746Hugo 

Respondent a licensed oce

acted as a purchaser and s

foreign consignees in violat

of the Commission issued 

cease and desist from such 

to the requirements establish

of revocation of his license

734273

Judges also issued initial 

7334451965

459 460 Informal Docket 

scribed under Decisions of 

Pending Proceedings

At the close of fiscal year 

of which 43 were investiga

remaining proceedings wer

by common carriers by wate

or districts terminal operat

in its own name and instrum

54
Final Decisions

of the Commis

In proceedings other than 

oral arguments and issued 

discontinued or dismissed wi

or remanded to the office of Ad

The Commission also iss

docket applications and twelv

claims against carriers in th

Docket No 6539Empir

American Export Lines Inc e

46 Truck Loading and Unloa

posed New York Terminal C

composite hourly cost of labo

loading and unloading at the P

and lawful Complaint challen

ing rates was dismissed inasm

unlawful

Docket No 6921Trans

in the US South Atlantic P

solidated with Docket No 

General Increases in Rates i

TradeIn proceedings on re

respondents were found to h

their rates in the Puerto Ric

demonstrating past and projec

Docket No 709Bolton 

Freight Forwarder License N

plemental reports clarified it

freight forwarder sunlawfu

ities and affirmed its conclu

continued if respondent is to 
Docket No 7019Inte

Indirect service to Portlan

members of TransPacific F

Kong whereby cargo is dis

Washington and transported 

carrier sexpense was foun

on condition that each carrie

directly by water with a freq

Docket No 7112Unite

ship Co IncAlthough res

rate not published or on file 

the violation of the Shipp

reparation when a prior ag

existed between the parties

Docket No 7132Agreem

Association Puerto Rico 

Puerto Rico Ocean Services 

Puerto Rican trade providin

and practices except ocea

oneyear approval subject to 

satisfactory record as to dem

tial trial approval period of 

Docket No 71 57Agre

West Coast United States 

Ceylon Rate AgreementA

viding explicitly for previo

ing authority was found to 

spondent and approvable u

1916

Docket No 7176Beth

Commission Assessment b

Charge on every vessel en

provided nor benefits confe

practice under section 17 o

Docket No 7189Inth

ment among independent o

poration to engage in the 

freight forwarding and 

56
founded corporation and an 

mestic freight forwarder for t

ing rights was found subject 

except insofar as the agreeme

proposed operations

Docket No 7194Equa

warders Inc Possible Violat

Shipping Act 196Consign

to have knowingly and willf

foreign shippers of commoditi

transportation by water at rate

in violation of section 16 Fir

ments was found not to have 

evidence of broker sindifferen

ping documents was insufficie

attempt to illegally obtain low

Docket No 7224Inthe 

Agreement between Canavera

pany granting Eller an exclu

at Port Canaveral was found 

provable even though exclu

among other factors that th

warrant additional operators

Docket No 7238Carbor

Shipper sclaim for reparatio

ocean freight was granted on

that the entire shipment in q

ments for obtaining the palle

tariff

Docket No 7239Ocean 

lands Steamship Company

leged overcharge by carrier o

shipper had failed to meet i

shipped was entitled to a ra

assessed by the carrier

Docket No 7253Gene

partment of AgricultureRe

carrier service during longshs

its rates would be based on 
reasonably failed to includ

stacked and baled unprep

plainant and entitling him to 

Docket No 7318Possib

Conference Rate Agreem

ence and certain dual rate c

such shippers had the lega

certain shipments of cotton 

was directed to be submitte

the Conference sShipper Ra

tration conference was orde

against the cotton shippers 

rights under the Agreement

Docket No 73 19Rohm 

mack Lines Inc Shippes

charge by carrier of ocean f

as shipper failed to demo

reasonable certainty and d

the claim

Docket No 7323Kra

Shipper sclaim for reparat

ocean freight was denied ina

ment in question met all th

the pallet allowance prov

Docket No 7325Seat

in Rates in the USPacific 

percent general rate increa

trade was found reasonable b

strating need to recover sp

Docket No 7331Rohm 

Grancolombiana SA Shs

overcharge by carrier of o

evidence of record concl

shipped was other than that 

Docket No 73 44Kra

IncShipper sclaim for r

rier of ocean freight was de

requires claims for adjustm

58
errors of weight or measurem

writing before the shipment lea

Docket No 7351Rohm a

IncShipper sclaim for repa

rier of ocean freight was denie

the shipments exceeded the pe

by the carrier sminimum conta

Docket No 7359Merck 

vision of Merck Company In

for reparation on alleged overc

denied on basis that shipper 

tainty and definiteness that a 

Anhydrous USP Glucose q

appearing in the carrier stari

Docket No 7365Union 

zuelan Line Shipper sclaim 

of ocean freight was awarded 

strated that the commodity sh

thereby entitled to the rate pre

shipments

Rulemaking

The following rulemaking 

year 1974 are still in progress

Docket No 73 39Filing 

Water in the Foreign Commerc

ences of Such Carriers

Docket No 7340Filing 

Water in the Domestic Offshore 

Docket No 7353Rules 

Contract Rates on Less than S

Currency Devaluation

Docket No 7364Additi

quirement Applicable to Self P

Docket No 7411Misce

Practice and Procedure

Docket No 74Rules R

Filings

Docket No 7416Propose

on United States and Canadian 

The following rules were p

result of rulemaking proceedin

General Order 29 Amendm

of Military Rates Miscellaneo

General Order 31Financi

and Hazardous SubstancesD

General Order 5 Amendme

for Maritime CarriersDocket 

General Order 27 Amendm

Oil Pollution Cleanup Enforc

General Order 27 Amendm

ment 1Financial Responsib

ous Substances Reporting Re
The following rulemaki

of Administrative Law Jud

Docket No 7355Un

Free Time on Import Conta

62
Action in the C

Petitions to review Federal 

ous US Courts of Appeals 

totaled 14 Eight more petition

Commission orders and one p

Court decision affecting FMC s

As of June 301974 nine ap

and the remaining 14 were pe

One FMC decision was also t

filed in the Supreme Court

During this fiscal year the C

and filed briefs in the appeal o

Significant Cases

The following were among t

in the courts

American Mail Line Ltd e

DCCir 1974 dealt with C

conditionally approving R J 

tion of the United States Lines 

ated in competition with ano

Service Inc In vacating the 

that Section 15 of the Shippi

jurisdiction over mergers or 

even though such transactions 

tinuing obligations nor could t

authority over such acquisiti

covenants requiring Commissio

SeaLand Service Inc v 

Circuit No 732014 is a cha

tions 46CFRPart 549 est

carried in foreign commerce 

challenge to only the rule w
uniform capacity utilizat

for purposes of bidding o

tice inits role as statuto

the entire Commission Ord

mand Department of Defe

disapprove rates pursuant 

through general rule maki

The case is pending argume

On January 28 1974 t

District of Columbia Circ

Trailer Transport Inc v 

affirming

T

the Commissios

2336 New York Shipp

in which the Commission gr

fied by it which allocate

Shipping Association NY

ments for the purpose of ra

fits for maritime laborers 

under a collective barga

Longshoremen sAssociatio

following the standards en

wagenwerk v FMC 390 S

the assessments imposed up

received and that the Coms

by substantial evidence

On April 8 1974 the 

Second Circuit issued its de

v Federal Maritime Comm 

ing the Commission srepor

ciation 16 FMC381 19

jurisdiction under Section 

agreement between the In

union and the New York 

cate assessments between 

and other maritime emplo

necessary to fund various f

assessment allocation agree

assessment allocation agre

proval of which was affirme

64
for the District of Columbia C

Transport Inc v FMC supra 

the collective bargaining agreem

In affirming the Commission sd

the agreement in this case was i

Supreme Court found subject 

Volkswagenwerk v FMC 390 

mission was not deprived of juri

of NYSA smembers were not s

Federal Maritime Commissi

Court for the Western District o

72112 denied the Commissios

of discovery orders finding the 

tion to investigate certain cons

Port of Seattle on inbound oce

appealed the order of denial to 

Circuit and the case has been b

Norman G Jensen Inc v F

F 2d 8th Cir 1974 I

that Jensen saffiliation with an 

independence required by Se

United States Court of Appeals 

Commission in holding that the 

sen and its affiliate did not disq

forwarder slicense because in 

become a shipper within the me

relationship was not likely to re

under Section 16

NonAdjudicatory Matters

During the past fiscal year

claims under the settlement an

eral Claims Settlement Act of 1

claims were for alleged violatio

ping Act 1916 and Section 2 o

Most of the alleged offenses in

provisions under the shipping 

Commission senforcement cla

in fiscal year 1974

Legislative Dev

Proposed Uniform Comm

Subsequent to hearings in la

Committee reported S 1488

This bill a duplicate of th

933 submitted to the Office 

allow the Commission to set u

and require carriers to file ra

outbound disparities

If the carrier sfiling did not 

rate for the transportation of 

direction the Commission could 

thereafter unlawful S 1488 s

shippers engaged in the foreign 

States will not be at an internat

On April 23 1974 S 1488 

to the House Merchant Marine 

action

Intermodal Proposals

Since 1972 the Commission 

posed legislation which would 

provide for the establishment o

hill of lading for the transport

domestic offshore commerce o

Present regulatory structure 

ments to involve at least two 

different statutes This raises ra

tions for the shipper

The Commission sproposals 

reflected to varying degrees in f

HR12428 and HR12429
Working closely with th

Fisheries Committee legis

major revisions made The 

proposals was the exclusio

and other carriers as int

riers by water can qualify 

Hearings were schedule

government agencies and 

and other interested parties

Alaska Pipeline Law

PL 93153 signed in

known as the Alaska Pipeli

affecting the Federal Marit

Section 204 c3 requ

cilities to evidence proof o

Maritime Commission for 

14000amount rega

vessel will be allowed to p

the Commission has issued 

Section 409 of this Act a

of information from the pu

ceed through the General A

a survey to insure nonduplic

Both statutory provisions 

priate Commission action

Energy Crisis Response

On the legislative Offic

and Federal Energy Office 

upon to respond during the 

Chairman Bentley appeared 

Commerce Committee and s

In seeking to contribute s

age as it affects our for

trades the Commission pled

existing and additionally gra

During the length of the c

over 10 bills and numerous O

68
Minimum Rates for Nonnati

On December 6 1973 Cha

Merchant Marine Committee o

testifying in behalf of S 2576 

mum rate provisions by non n

commerce of the United States

As proposed the bill would 

from filing a rate which is low

flag carrier in a given trade

If S 2576 is enacted Mrs Be

effectively with the rate preda

American economic system inv

on notice that they can ship A

efficient services at prices dictat

Independent Freight Forw

The role of the Federal Mari

independent ocean freight forw

exporter was the topic of testim

March 26 1974 before the Su

ternational Trade of the House 

After outlining the policies 

mission concerning the entry 

the international trade of the 

in recognition of the many smal

forwarding the Commission ha

reporting requirements on the

she pointed out to assist them 

vital role in the cargo transporta

Information Gathering

The Subcommittees on Interg

ing Management and Expend

Government Operations held 

tabulation and dissemination 

structure stock ownership deb

to the shipping industry

On June 25 1974 Chairman 

Maritime Commission gathers 
through the medium of t

reports and information s

cluded that to date this d

administration of the leg

the Commission asked fo

close liaison with the com

legislative initiatives

Barge Bill Passes

On April 2 1974 the Ho

which would confer exclus

Commission over movemen

and domestic offshore com

of whether the Interstate C

time Commission has regu

the Port of Sacramento by 

cargo between Sacramento 

The Commission which 

actions in the past looks 

session of the 93rd Congres

Legislation Studied

During fiscal year 197

bills that had been introdu

of Management and Budg

mitted for comment

70
Administration

There have been no changes 

fiscal year 1974 Helen Delich 

serve as Chairman Other mem

sissippi James V Day of Ma

and Clarence Morse of Californ

On November 27 1973 Co

colleagues for a third time to t

Maritime Commission succeed
Statement of Appropr

Year Ended June 30 1

APPROPRIATION

Public Law 93162 93rd Con

necessary expenses of the Fed

ices as authorized by 5 USC

and uniforms or allowances 

5902 

Publio Law 93305 93rd Co

Supplemental Appropriation 

Appropriation availability 

OBLIGATIONS AND UNOBLICATED BA

Net obligations for salaries and 

1974 

STATEMENT OF RECEIPTS DEPOS

TREASURY FOR THE FISCAL YEAR 

Publications and reproduction

Water pollution application a

Fines and penalties 

Miscellaneous 

72

Unobligated balance withdraw

Total general fund receipts 
Appendix A

STATISTICAL AB

FISCAL 

SECTION 15 AGREEMENTS

Foreign commerce 

Domestic offshore 

Terminal 

SECTION 14b DUAL RATE CONTRACTS

New systems includes modifications 

REPORTS REVIEW

Shippers requests and complaints 

Minutes of meetings 

Self policing of conference and rate a

Pooling statements 

Operating reports 

APPROVED AGREEMENTS ON FILE AS OF JUNE 

Conference 

Rate 

Joint conference 

Pooling 

Joint service 

Sailing 

Transshipment 

Cooperative working agency and conta

Domestic offshore 

Terminals 

Dual rate contract systems 

Nonexclusive transshipment agreemen

TARIFFS

Tariff pages filed

Foreign 

Domestic offshore 

Terminal 

Tariffs on file as of June 30 1974

Foreign 

Domestic offshore 

Terminal 
74

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0

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