FEDERAL MARITIME COMMISSION

STRATEGIC PLAN

FISCAL YEARS 2014-2018

November 20, 2013 
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Table of Contents

Overview ............................................................................................................................. 3

Summary of Strategic Goals, Objectives, and Performance Measures .............................. 6

FMC Strategic Plan Fiscal Years 2014-2018...................................................................... 7

STRATEGIC GOAL 1 - Maintain an efficient and competitive international ocean 

transportation system. ..................................................................................................... 7

OBJECTIVE 1: ENHANCE EFFICIENCY IN THE TRADES THROUGH THE USE OF ASSET 

SHARING AUTHORITY UNDER THE SHIPPING ACT OF 1984. .......................................... 7

STRATEGIC GOAL 2 – Protect the public from unlawful, unfair and deceptive ocean 

transportation practices and resolve shipping disputes. ................................................ 10

OBJECTIVE 1: IDENTIFY AND TAKE ACTION TO END UNLAWFUL, UNFAIR AND 

DECEPTIVE PRACTICES. .............................................................................................. 10

OBJECTIVE 2: PREVENT PUBLIC HARM THROUGH LICENSING AND FINANCIAL 

RESPONSIBILITY REQUIREMENTS. ............................................................................... 11

OBJECTIVE 3: ENHANCE PUBLIC AWARENESS OF AGENCY RESOURCES, REMEDIES 

AND REGULATORY REQUIREMENTS THROUGH EDUCATION AND OUTREACH. .............. 12

OBJECTIVE 4: IMPARTIALLY RESOLVE INTERNATIONAL SHIPPING DISPUTES 

THROUGH ALTERNATIVE DISPUTE RESOLUTION AND ADJUDICATION. ......................... 13

Administrative Strategies in Support of Agency Objectives ........................................ 15

Factors Affecting the Achievement of Goals .................................................................... 17

Program Evaluation .......................................................................................................... 18
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Overview

The Federal Maritime Commission (FMC) is pleased to issue this new 2014-2018 

Strategic Plan. This plan replaces and updates the current 2010-2015 Strategic Plan. 

OMB is requiring all federal agencies to prepare strategic plans for the 2014-2018 time 

period in an effort to coordinate planning across the federal government. This plan 

retains previous strategic goals one and two, as well as a section on the Administrative 

Strategies in support of Agency Objectives. This latter section was established for

administrative support functions such as human resources, information technology and 

financial management. Each of these important functions is subject to its own stringent 

planning and measuring regimes pursuant to various laws and executive mandates. 

Those related plans support this strategic plan and are referenced and described herein. 

This plan sets goals and objectives for each fiscal year through 2018 and contains targets 

and measures linked to objectives via strategies. It should be noted that for the most part 

the target measures for 2013 and the out years are below the actual 2012 performance. 

This is for two reasons. The first is that the 2012 actuals were markedly higher than the 

prior years’ thus belying the trend. Secondly, the trend forecasts of achievable targets 

were lowered to account for anticipated reductions in staff resources due to fiscal 

austerity. These objectives, strategies, targets, and measures drive the agency’s 

budgetary process. This strategic plan conforms with the spirit and letter of the GPRA

Modernization Act of 2010; OMB Circular A-11 Preparation of Submission of Strategic 

Plans, and Annual Program Performance Reports; and Executive Order 13450 – 

Improving Government Program Performance. 

Mission 

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

and to protect the public from unfair and deceptive practices. 

Strategic Goal 1 

Maintain an efficient and competitive international ocean transportation system.

Strategic Goal 2 

Protect the shipping public from unlawful, unfair and deceptive ocean 

transportation practices and resolve shipping disputes. 

History

 The FMC was established as an independent regulatory agency by Reorganization 

Plan No. 7, effective August 12, 1961. Prior to that time, the Federal Maritime Board 

was responsible for both the regulation of ocean commerce and the promotion of the 

United States Merchant Marine. Under the reorganization plan, the shipping laws of the 

U.S. were separated into two categories — regulatory and promotional. The 

responsibilities associated with the promotion of an adequate and efficient U.S. Merchant 
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Marine were assigned to the Maritime Administration, now located within the 

Department of Transportation. The newly created FMC was charged with administering

the regulatory provisions of the shipping laws. 

The Commission is responsible for the regulation of oceanborne transportation in 

the foreign commerce of the United States. The passage of the Shipping Act of 1984 

(Shipping Act) brought about major change in the regulatory regime applicable to 

shipping companies operating in the U.S. foreign commerce. The subsequent passage of 

the Ocean Shipping Reform Act of 1998 (OSRA), with its deregulatory amendments and 

modifications to the Shipping Act, further signaled a significant shift in shipping 

regulation. 

Functions

The principal statutes administered by the Commission are the Shipping Act, the 

Foreign Shipping Practices Act of 1988 (FSPA), section 19 of the Merchant Marine Act, 

1920 (1920 Act), and Pub. L. No. 89-777. Most of these statutes were amended by 

OSRA and are now codified in Title 46 of the U.S. Code at sections 40101 through 

44106. 

The Commission’s principal regulatory responsibilities include:

■ Reviewing agreements among ocean common carriers and marine terminal 

operators (MTOs) relating to service in the U.S. foreign oceanborne 

trades, to ensure that they do not cause substantial increases in 

transportation costs or decreases in transportation services.

■ Maintaining the service contracts database and reviewing service contracts 

between ocean common carriers and shippers to guard against detrimental 

effects to shipping in the U.S. foreign trades. 

■ Providing a forum for exporters, importers and other members of the 

shipping public to obtain relief from ocean shipping practices or disputes 

that impede the flow of commerce and otherwise cause economic harm.

■ Ensuring that common carriers’ tariff rates and charges are accessible to 

the shipping public in private, electronically accessible systems. 

 

■ Monitoring rates, charges, and rules of foreign government-owned or 

controlled carriers to ensure that they are just and reasonable. 

■ Issuing passenger vessel certificates evidencing financial responsibility of 

vessel owners or charterers to pay judgments for personal injury or death, 

or to refund passenger fares for the nonperformance of a voyage or cruise.

■ Licensing ocean transportation intermediaries (OTIs) in the U.S. to protect 

the public from unqualified, insolvent, or dishonest companies. 
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■ Ensuring that OTIs maintain sufficient financial responsibility to protect 

the shipping public from financial loss. 

■ Protecting the shipping public against economic harm by investigating 

rates, charges, classifications, and practices of common carriers, MTOs, 

and OTIs operating in the foreign commerce of the U.S, and acting to stop 

unjust or unlawful practices.

■ Taking action to address unfavorable conditions arising out of foreign 

government or business practices in the U.S. foreign shipping trades. 

Organization 

 The Commission is composed of five commissioners appointed by the President 

with the advice and consent of the Senate. Commissioners serve five-year, staggered 

terms, and no more than three members of the Commission may belong to the same 

political party. The President designates one of the Commissioners to serve as Chairman. 

The Chairman is the chief executive and administrative officer of the agency.

 The Commission’s organizational units consist of: the Offices of the General 

Counsel, Secretary (including the Library), Consumer Affairs and Dispute Resolution 

Services, Administrative Law Judges, Equal Employment Opportunity, Inspector 

General, Managing Director, Budget and Finance, Human Resources, Information 

Technology, and Management Services; the Bureaus of Certification and Licensing, 

Enforcement, and Trade Analysis; and the Commission’s Area Representatives. 
Summary of Strategic Goals, Objectives, and Performance Measures 

STRATEGIC GOAL 1: Maintain an efficient and competitive international ocean transportation system.

OBJECTIVE 1: Enhance efficiency in the trades through the use of asset sharing authority under the Shipping Act of 

1984.

Performance Measure: Percentage share of U.S. 

containerized cargo moving on other agreement 

parties’ vessels in major U.S. trades.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

N/A1 39% 39.5% 40% 40.5% 41% 41.5%

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 end unlawful, unfair and deceptive practices.

Performance Measure: Percentage of enforcement 

actions taken under the Shipping of 1984 Act successfully resolved through favorable judgment, settlement, 

issuance of default judgment, or compliance letter or 

notice.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

88% 76% 76.5% 77% 77.5% 77.5% 77.5%

OBJECTIVE 2: Prevent public harm through licensing and financial responsibility requirements.

Performance Measure: Percentage of decisions on 

completed OTI license applications rendered within 60 

calendar days of receipt, facilitating lawful operation 

of OTIs with the appropriate character and experience.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

90.2% 75% 75% 75% 75% 75% 75%

Performance Measure: Percentage of cruise line 

operators examined during the year that have the full 

financial coverage required by regulation to protect 

against loss from non-performance or casualty.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

100% 93% 94% 95% 95% 95% 95%

OBJECTIVE 3: Enhance public awareness of agency resources, remedies and regulatory requirements through 

education and outreach.

Performance Measure: Percentage of key 

Commission issuances, orders and reports are 

available through the Commission’s website 

within 5 working days of receipt.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

79% 76% 76% 78% 80% 82% 84%

OBJECTIVE 4: Impartially resolve international shipping disputes through alternative dispute resolution and 

adjudication.

Performance Measure: Number of cases opened and 

closed each fiscal year using ombuds and ADR 

services assisting consumers to recover goods or funds.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

893 800 825 825 825 850 850

Performance Measure: Percentage of formal 

complaints or Commission initiated orders of 

investigation completed within two years of filing or 

Commission initiation.

2012 

Actual

2013 

Target

2014 

Target

2015

Target

2016 

Target

2017 

Target

2018 

Target

73% 56% 58% 58% 60% 62% 64%

 

1

 This is a new Objective and Measure for 2013 so there is no actual 2012 performance data. 
7 

FMC Strategic Plan

Fiscal Years 2014-2018 

STRATEGIC GOAL 1 - Maintain an efficient and competitive international ocean 

transportation system. 

The Federal Maritime Commission (FMC) or (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 of 1984 (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. 

 Following the global economic downturn and during this time of recovery, the 

Commission’s oversight is of key importance. Efficiency and competition in the 

transportation system are essential to the re-growth of trade and the creation of jobs. 

OBJECTIVE 1: ENHANCE EFFICIENCY IN THE TRADES THROUGH THE USE OF ASSET 

SHARING AUTHORITY UNDER THE SHIPPING ACT OF 1984.

The agency will achieve this objective through a number of strategies (as 

indicated below) aimed at using its statutory authority in a fair and expeditious manner to 

readily permit use of asset sharing agreements. 

The FMC is also 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 vessel operating common carriers (VOCCs) and 

marine terminal operators (MTOs) that wish to establish agreements that would benefit 

from antitrust immunity file copies of their agreements with the FMC. FMC staff review 

these proposed agreements when they are initially filed, and before they take effect. The

FMC allows agreements to proceed when they do not cause competitive harm. The FMC 

is authorized, pursuant to section 6(g) of the Shipping Act, to seek appropriate injunction 

relief against any agreement which is likely to result in a reduction in competition of the 

sort that could be expected to unreasonably raise transportation costs or reduce 

transportation service. 
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 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 requires them, once the agreement comes into effect. 

These reporting requirements, and the economic data and information about agreement 

activities they provide, allow the FMC to initially evaluate, and continue to monitor on an 

on-going basis, the conduct of the parties to VOCC and MTO agreements with limited 

antitrust immunity.

In recent years, the FMC has seen an increase in operational VOCC and MTO 

agreements, many of which allow cooperation to improve efficiency, allow sustainable 

growth, or respond to new or imminent environmental regulations. The FMC gives 

consideration to likely efficiency, sustainability, and environmental benefits when 

evaluating their net impact on competition, transportation cost, and transportation service. 

 Under the Foreign Shipping Practices Act of 1988 (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 foreign government-owned 

or -controlled carriers to ensure that they are just and reasonable. 

1. Strategies

The Commission’s performance measure tracking the use of asset sharing

agreements will be achieved through the following strategies. These strategies cover a 

broad range of Commission activities, all using agency resources to foster the purposes of 

the Shipping Act, particularly with regard to the asset sharing agreements under this 

objective: 

• 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 anti-competitive 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 anti-competitive conduct or unfavorable trade 

conditions. 

• Initiate meetings with representatives of the FMC’s various stakeholder industries 

to help determine whether anti-competitive behavior or unfavorable trade 

conditions exist in U.S. trades. 
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• 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.

• Ensure 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 and efficiency in ocean transportation by seeking 

appropriate injunctive relief under section 6 of the Shipping Act for agreements 

likely, by a reduction in competition, to produce an unreasonable reduction in 

transportation service or an unreasonable increase in transportation cost. 

• Assess, acknowledge and promote environmentally sustainable shipping practices 

and environmentally protective agreement activities.

• Address disruptions in the ocean transportation marketplace by investigating 

carrier and 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, pursuant to the 1920 Act, 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 an electronic library, accessible from the FMC’s website, of agreement 

documents so as to allow interested parties to easily search for and download 

those documents. 

2. Five-Year Performance Measure

• Percentage share of U.S. containerized cargo moving on other agreement parties’ 

vessels in major U.S. trades. 
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STRATEGIC GOAL 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 violation of the Shipping Act. To carry out 

its broad mission, the FMC uses various means including monitoring, investigation, 

education, enforcement, and ombuds services. 

 The Commission, and its regional area representatives, also have a role in the 

education of the public and of industry groups involved in U.S. international trade with 

respect to their rights and/or responsibilities under the Shipping Act – including 

informing them of available Commission resources that might be of use to them. 

OBJECTIVE 1: IDENTIFY AND TAKE ACTION TO END UNLAWFUL, UNFAIR AND 

DECEPTIVE PRACTICES. 

This objective will be met through agency strategies including gathering 

intelligence, monitoring OTI activity, audits, effective prosecution and dealing with 

complaints on violations. 

 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 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. 

1. Strategies

The following strategies are specifically aimed at achieving the five year 

performance measure of successfully resolving enforcement actions through various 

means.
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• Gather intelligence through visible and accessible presence in the regulated 

community in order to identify unlicensed OTIs and other violations. 

• Monitor advertising in print, television, radio and online to identify illegal 

practices.

• Gather information related to potential unlicensed OTIs. 

• Receive and respond to complaints regarding egregious violations and practices. 

• Identify subjects who offer, advertise or provide passage on vessels having berths 

or staterooms to accommodate 50 or more passengers and have not met FMC 

financial requirements.

• Audit ocean carriers and OTIs based upon information received and on a random 

basis.

• Exchange information and liaise with other federal, state and local investigative 

and regulatory agencies and bureaus. 

• Review tariffs for accessibility and accuracy.

• Investigate allegations of unlawful, unfair and deceptive practices. 

• Efficiently prosecute alleged violations of the Shipping Act. 

• Reach voluntary agreement with alleged violators to cease unlawful, unfair and 

deceptive practices.

• Respond to inquiries regarding complaint history of transportation providers and 

advise consumer of means to protect themselves.

2. Five-Year Performance Measures

• Percentage of enforcement actions taken under the Shipping Act successfully 

resolved through favorable judgment, settlement, issuance of default judgment, or 

compliance letter or notice.

OBJECTIVE 2: PREVENT PUBLIC HARM THROUGH LICENSING AND FINANCIAL 

RESPONSIBILITY REQUIREMENTS. 

 To prevent public harm the Commission has developed the following four 

strategies: OTI licensing, issuing PVO certificates, monitoring PVO unearned passenger 

revenue and updating bond and coverage amounts. 
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The FMC licenses and regulates ocean transportation intermediaries (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 

passenger vessels (PVOs) that have evidenced financial responsibility to satisfy liability 

incurred for nonperformance of voyages and for death or injury to passengers and other 

persons. 

1. Strategies

The following strategies support the Commission’s five year performance 

measures of tracking the expeditious review of OTI licensing applications and assuring 

cruise line operator compliance with FMC financial responsibility requirements. 

• 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 (UPR) reports and conduct on-site 

review of PVOs’ UPR receipts.

• Review and update OTI bonds and coverage amount. 

2. Five-Year Performance Measures

• Percentage of decisions on completed OTI license applications rendered within 60 

calendar days, facilitating lawful operation of OTIs with the appropriate character 

and experience requirements.

• Percentage of cruise line operators examined during the year that have the full 

financial coverage required by regulation to protect against loss from nonperformance or casualty.

OBJECTIVE 3: ENHANCE PUBLIC AWARENESS OF AGENCY RESOURCES, REMEDIES 

AND REGULATORY REQUIREMENTS THROUGH EDUCATION AND OUTREACH. 

 The Commission developed various educational and outreach strategies in support 

of this objective in assuring that the public is fully aware of their regulatory 

responsibilities and how the agency can be of service to them. 

 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. 
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1. Strategies

 The following strategies aimed at enhancing public awareness include a specific 

focus on the performance measure of posting certain actions on the agency website 

within 5 days. 

• Maintain an accessible presence in local regulated communities. 

• Proactively educate regulated parties of regulatory requirements. 

• Maintain VOCC and NVOCC tariff location information on the agency website. 

• Emphasize OTI requirements to new licensees by letter.

• Promote awareness of FMC licensing and financial requirements. 

• 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 Commission’s website.

• Continuously expand and update information available to the public through the 

website, including list of licensed OTIs.

2. Five -Year Performance Measures

• Percentage of key Commission issuances, orders and reports that are available 

through the Commission’s website within 5 working days of receipt.

OBJECTIVE 4: IMPARTIALLY RESOLVE INTERNATIONAL SHIPPING DISPUTES 

THROUGH ALTERNATIVE DISPUTE RESOLUTION AND ADJUDICATION. 

The following strategies carry out this objective of fostering ADR and 

adjudication as an efficient and least costly and contentious means of resolving shipping 

disputes. These strategies concern ombuds services, facilitating ADR, arbitration, and 

timely conduct of proceedings. 

 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 Area Representatives. Formal 

complaints of alleged Shipping Act violations may be filed for adjudication by an 
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administrative law judge. Parties may seek the assistance of a trained neutral at any stage 

in a formal proceeding or in the first instance for resolution using ADR processes. 

1. Strategies

The principle measure capturing the effectiveness of these strategies is the 

number of cases using ombuds and ADR services. The strategies were developed to 

encourage the use of such services and bring about timely resolution of disputes. 

• Provide ombuds services to informally resolve passenger vessel, household goods 

and other shipper complaints. 

• Encourage the use of and provide facilitative ADR services to parties who request 

services of a trained neutral in resolving disputes and shipping problems that 

affect international ocean shipping. 

• Adjudicate disputes under the jurisdiction of the agency through the 

administrative law judge (ALJ), with the possibility of appeal to the Commission, 

use of settlement officers and through arbitration. 

• Timely conduct Commission proceedings so that litigants and industry can adjust 

behavior accordingly. 

2. Five -Year Performance Measures

• Number of cases opened and closed each fiscal year using ombuds and ADR 

services assisting consumers to recover goods or funds. 

• Percentage of formal complaints or Commission initiated orders of investigation 

will be completed within two years of filing or Commission initiation
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Administrative Strategies in Support of Agency Objectives

In pursuing its 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. Separate but linked plans 

and measurement mechanisms are in place for human capital, information technology and 

financial management at the Commission.

The Commission’s ability to carry out its mission and serve its customers depends 

on having a well-trained, highly skilled, and flexible workforce. Critical to 

accomplishing the agency mission is a commitment to the principles of Equal 

Employment Opportunity (EEO), diversity and the implementation of EEO policies and 

objectives to enhance the quality of our work life and productivity of our workforce. The 

Commission’s Office of Equal Employment Opportunity effectively carries out this 

mission.

 The Commission’s Human Capital Plan (for FY 2012 – 2017) aligns our human 

capital with our operational, information technology, and support processes in order to 

develop a performance-based organization. FMC’s Human Capital Accountability Plan 

guides human capital decisions using data-driven information and results-oriented 

planning techniques. It will ensure human capital needs are carefully considered as part 

of the Commission’s strategic planning and budgeting processes and will contribute to 

our mission success by monitoring and evaluating the progress and results of human 

capital goals, programs, and activities. 

 Planning is ongoing for use of information technology (IT) resources necessary to 

drive accomplishment of the Commission’s strategic goals. Upon the publication of this 

plan in final, the Commission will have in place a 2014-2018 IRM Strategic Plan. The 

Commission is committed to an integrated approach to IT capital planning and 

investment control — both of which are driven by the Commission’s Strategic Plan and 

its need to meet mission objectives in an efficient, transparent, and effective manner. 

Information technology planning is driven by programmatic needs of the Commission. 

Financial systems are monitored and audited annually as required by the Federal 

Manager’s Financial Integrity Act of 1982, the Chief Financial Officers Act of 1990 

(CFO Act), as amended, and the Government Management Reform Act (GMRA) of 1994 

and reported annually through the Performance and Accountability Report. The Federal 

Managers’ Financial Integrity Act (FMFIA) of 1996 requires that agencies establish 

controls that reasonably ensure that obligations and costs comply with applicable law; 

assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and 

revenues and expenditures are properly recorded and accounted for. It requires the 

agency head to provide an assurance statement of the adequacy of management controls 

and conformance of financial systems with Government standards. As well, the CFO Act 

mandates annual audits of the Commission’s internal controls systems. The Commission 

is committed to maintaining an unqualified audit opinion on audits of its Annual 
16 

Financial Statements. Further, the Commission is committed to addressing matters 

identified through the Financial Statement Audits involving internal controls and 

operations considered material weaknesses. 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, 

efficient, and sustainable use of the scarce resources with which it has been entrusted. 

1. Strategies

 The FMC realizes the critical importance of the administrative component of the 

agency in support of agency strategic goals, objectives and performance measures. The 

following strategies addressing budget, planning, human resources, procurement and IT 

were developed to assure an effective administrative support program within the FMC. 

• Develop annual budget directly linked to strategic and annual performance plans 

for submission to the 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, 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. 

• Increase energy efficiency by implementing environmental programs throughout 

agency operations, including reducing green house gases, recycling waste and 

conservation of resources. 

• 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. 

• 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, 

efficiently, and sustainably supported via telecommunications, procurement of 

administrative goods and services, property management, space, printing and 
17 

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 and efficiency of the workforce to support the needs of 

the Commission.

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 

inter-modal 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. 

A significant challenge facing the agency is the potential reduction in its operating 

budget. Given that the predominant portion of the agency’s costs is salaries, reductions 

in payroll through attrition or furloughs (as is the case in FY 2013) may be inevitable. 

The agency will continue to be seriously hampered in making necessary IT 

improvements. 

In spite of the above fiscal austerity, 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. 

 Addressing the use of information technologies is one way in which the FMC is 

able to do more with less. The increasing importance of information technologies results 

not only from its contribution to the agency’s ability to collect and process information 

more efficiently and accurately, but also because of the agency’s need to keep up with the 

electronic-business practices of the industries it regulates. Greater use of information 

technology also helps make many of the aspects of licensing, certification and 

information filing simpler and easier to accomplish for the agency’s stakeholders. IT is 

critical to the maintenance and effective use of various key agency databases. 

The security of agency databases and 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.
18 

 The FMC regulates international ocean liner transportation, and is also involved, 

through its regulation of marine terminal operators, with aspects of the intermodal 

movement of ocean cargo in the U.S. In addition, foreign-based ocean transportation 

intermediaries are subject to statutory bonding requirements under FMC jurisdiction. To 

the extent that there are changes in the regulatory treatment of international liner 

operations by foreign governments, as was the case in Europe beginning in late 2008 with 

the FMC’s publication of its Study of the 2008 Repeal of the Liner Conference Exemption 

from European Union Competition Law, the agency will continue to monitor such 

changes and the likely effect of such changes on U.S. trades. Over time, and depending 

on their actual impacts, regulatory changes in other regions could also provide a possible 

impetus for a review of U.S. statutes or regulations on liner shipping. Consequently, 

FMC analyses of possible future proposals for statutory revisions may be required. 

 Finally, in recent years the FMC has witnessed the filing of new types of 

agreements -- especially marine terminal agreements -- that address nontraditional issues 

such as traffic congestion, environmental mitigation proposals, terminal operational 

efficiencies, and infrastructure funding. These nontraditional agreements tend to involve 

industries (drayage trucking and rail service), operations (pooling of chassis), and issues 

(air pollution, public health, infrastructure finance) that require the development, by 

agency staff, of additional information sources and areas of expertise. Not infrequently, 

these nontraditional agreements have potentially significant pricing and service 

consequences. To the extent that the filing of nontraditional agreements increases in 

coming years – which seems to be the likely trend – they will continue to weigh heavily

on the agency’s limited resources. 

Program Evaluation

In general, the FMC will continue to evaluate its programs, both that address 

industry competition and those designed to protect the public from unlawful, unfair and 

deceptive practices, to ensure that they focus on the areas of greatest concern as 

determined by the analysis of required and special reporting requirements, stakeholder 

outreach discussions, and informal complaints. In addition, the agency will evaluate the 

extent to which its compliance activities are effectively addressing identified problem 

areas, and will implement any changes needed to improve compliance targeting.

The FMC will periodically review its initial agreement review process and ongoing monitoring programs to determine whether the current reporting requirements 

continue to provide adequate information in light of changing industry conduct and new 

types of agreements being filed. In particular, the process for monitoring non-traditional 

agreements, and ensuring oversight of agreement implementation activities, will be 

assessed.

 Taking into account the discussions with stakeholder industries, the agency will 

regularly assess which research study topics likely will best address the competitive 

effects, in the U.S. trades, of changing industry operations and business practices, foreign 

government regulatory changes, and controlled carrier activity. 
19 

The agency will, on an on-going basis, continue to assess the effectiveness of its 

auditing, investigatory and information gathering procedures with respect to unlawful, 

unfair and deceptive transportation practices. Particular attention will be given to ways to 

efficiently and accurately identify, and take appropriate compliance action with respect 

to, unlicensed ocean transportation intermediaries, including foreign-based 

intermediaries.

 Educational and stakeholder outreach activities will be tracked and periodically 

evaluated to ensure their effectiveness in reaching targeted audiences on specific topics. 

Possible alternative activities and approaches will be considered as part of each periodic 

evaluation. These evaluations will also include the educational material provided via the 

FMC website.