Twelfth An

of 

Federal Maritim

For sale by the Superintendent of Docu

Washington U 

Stock Numbe
ii

FEDERAL 

W

HELEN DE

GEORGE H 

ASHTON C 

JAMES V 

CLARENCE 
LETTER OF T

Office of the Mhatrmaa

1cbetu1 W

Was1Q

TO NIL SPNATII AND IIOUSI 01 R

Pursuant to section 111

No 7 of 1961 and section 2

1936 as amended I repectft

of the federal Inritl Ic t mr

1973
iv
Table of 

SCOPE OF AUTHORITY ANI BASIC FU

HIGHLIGITES OF THE YEAR 

UNITED STATES OCEANBORNE COMM

Freight Rates and Surcharges in Foreign 

Rate Disparities

Trends in Trade hy Geographic Area 

Intermodalism

Terminal Operations and Modernization 

Development of Containenzation

Domestic Commer

Agreements Review

Informal Complaints

Field Activities

SURVEILLANCCOMPLIANCENFORCEME

Tariff Review and Fi linc 

Ocean Freight Forwanlees 

Water Pollution Financial Restm llimbili

Passenger Vessel Certification meoli

SPECIAL sTt DIES ND Homers

Eel 11011111 St tulle

Review of Bill of I wine Pro isin 

Tatiff Rules Iteishm

Interagem N Alerting

Carrier Information and Commedit Da

Propm ed Iiiilemakiug 011 11110110N Dth

Rulemaking Conn ruing 14reement an

Inland Terminal Prm t

Foreign 1oneminern Discrimination

PROCEEDINCS BEFORE ADMINI Ili 

Decisions lit11111111 V Lag 1140 

Conniu sio10

Pending Procemlings

FINAL DECISIO S OF Tim commis

IJULENI AKIN

ACTION IN THE COI RTS 

SIGNIFY NT C SES

Settlement and Non Adiuheator Mat

LEGISI TOF DEN El oroF T

Intetmodal liansportation en a Thloug

and Domestic Offshore tole 1

chant Marine and lislieties Commi

Federal V ter Pollution Control lo t 

inem Pncrsiote

Comprehensive Report on the Actid

Committee on Merchant Marine and 

Other Legislative Activity 
vi

Contents Continued

ADMINISTRATION 

Statement of Appropriation 

1973 

APPENDIX A

Statistical Abstract of Filin

APPENDIX 13

Organization Chart 
SCOPE OF AUTHO

FUNC

The Federal Maritime Comm

pendent agency by Reorganizatio

1961 Its basic regulatory author

Act 1916 Merchant Marine Ac

1933 Merchant Marine Act 19

ber 6 1966 and Public Law 91 2

The Commission is composed 

by the President with the advic

Commissioners are appointed fo

three of the Commissioners being 

party The President designates 

Chairman who also serves as the 

officer of the agency

The statutory authorities and 

brace the following principal a

practices and agreements of com

other persons engaged in the fore

2 acceptance rejection or disa

carriers engaged in the foreign c

regulation of rates fares charges 

and practices of common carrier

trades of the United States 4 

forwarders 5 investigation of 

sifications and practices in the w

Executive Order 11548 dated July 2

Commission the responsibility and autho

Quality Impro ement Act of 19 0 t i s

the certification by the Commission of pro

to meet the liability to the United States 
2

shore commerce 6 

responsibility of vessel 

personal injury or dea

formance of voyages o

dencing financial resp

operators to meet the lia

of oil and 8 rende

rules and regulations g

water terminal operat

subject to the Commisss

The Commission she

Washington DC 2057

follows

Atlantic District 

Pacific District 

Pacific District South

fornia 

Gulf District 

Puerto Rico Office 
HIGHLIGHTS 

Fiscal 1973 the twelfth ye

Maritime Commission saw c

in technology in the maritime 

LASH and SEABEE opera

ment and rollon rolloff vesse

In keeping with vessel dev

shoreside facilities at ports 

increase

Along with technological d

industry was on the threshold 

systems for cargo carriage

Progress however raised 

with which the Commission h

LASH and SEABEE opera

dictional areas for the Comm

systems of the United State

were involved only in local c

foreign and domestic offshore 

The enormous capital in

tainerization age has led 

arrangements and in som

mergers to use their resour

These attempts to strea

growing chorus of complaint

is being diverted to single lo

the smaller ports

The industry was also plag

ena which have disrupted a

rency devaluation inflatio

made their mark during fisca

551 605 OL 74 2

a
In addition an om

in lesser developed 

more and more soph

cargo for nationalflag 

At the close of fis

faced with the proble

disputes without hin

LASHISEABEE Opera

LASHSEABEE op

1973 In addition to 

US Gulf ports and p

have expanded to US 

America and the Far 

LASHSEABEE ta

offer services to rive

the river system tribu

and cities which are 

vessels

The conflicts betwe

the Shipping Act 19

these unique allwate

Interstate Commerce 

facilitate progress in 

discussion of the re

statutes the agencie

reserving regulation 

to the FMC when true 

and at the same time th

over the towboat oper

Intermodal Services

Intermodal services 

waterborne commerc

carriers continued to 

mini bridge service in

Europe via South Atla

4
the first joint truckocean ra

Boston via New York

Competition between inte

routes has grown in the trad

East Coast and Japan and 

West Coast Ports which ha

cargoes in allwater servic

traffic to the socalled mini 

Commission is directly invo

both through formal procee

surveillance of carrier and 

these efforts the Commission 

conference practices do no

interest and the US foreign 

During this year the Federa

closely with the Interstate Co

intermodalism to develop w

law To date however these 

tariffs filed to and from port 

This Commission has cont

intermodal legislation which 

of true intermodal transport

throughout the nation

SeaLand Service and United 

On February 12 1973 th

in Dockets Nos 6956 a

approval was granted to a

in the merger of US Line

Inc under the common ow

bacco Co and affiliates Or

for a 20year time charter to 

owned by US Lines with 

agreement was subsequent

merger of the two steamsh

of Sea Land s parent R J 

of 65 million flowing to W
US Lines In approv

claimed jurisdiction u

the objection of the 

Numerous conditions 

designed to insure t

continue to be operat

with each other At yes

in the US Court of A

Currency Devaluation

The Commission se

September 12 1972 

conference sattempt 

rates on dualrate con

tion The United Sta

devalue the US dolla

conference sought to 

notice required by con

tion clause of its c

90day notice was re

required official gover

be invoked and the US 

Commission also emp

rates without hearing 

premise used to supp

matter of substantive 

Labor Relations

On August 25 1972 

remand from the Cou

its previous decision 1

that the Boston Ship

collective bargaining u

Also found subject 

incorporation papers a

the agreement as to 

stevedores and the 

association members a

plemented via the labo

6
As a result of the views ex

Justice Labor and the Na

following a petition to review 

Appeals the Commission s

for the purpose of considering 

had not previously participate

In its decision on remand 

claim of jurisdiction over 

reversed itself on the other 

under consideration were e

from the antitrust and shipp

mandatory subjects of coll

products of bona fide armsle

Military Rates

The Commission has for 

the level of rates bid for m

that the rate level is so low 

burdened with correspondin

resolve this problem the Co

Order 29 Under the criteria 

must demonstrate that their 

Peruvian Cargo Reservation

In its report served March 

the Commission approved an 

Grace Lines and Compania 

mitted the former to partic

Coast to Peru trade

The Peruvian governmen

certain cargoes in the trade 

agreement gave Prudential

cargoes The agreement wa

who alleged that the agreem

The Commission in app

reasonable possibility of adv

might outweigh the benefits 
8

This delicate bala

problems arising und

governments
US OCEANBORN

REVIE

Freight Rates and Surcha

Numerous general rate i

Commission during fiscal y

to the carriers as a conseq

inflation Surcharges were co

differences in costs brought 

port congestion bunker inc

Currency 

A ten percent devaluation 

February 12 1973 the se

months resulted in both for

filing currency surcharges 

losses incurred in convertin

During this fiscal period nu

adjusted upwards in relatio

other currencies were allo

rash of adjustment surchar

freight tariffs in our foreig

staff expended considerable 

of currency surcharges filed 

carriers to insure that they 

Numerous requests for sp

charge increases in less tha

received but only those w

dence were permitted b

in no event were currenc

come effective on less th

provisions of the merchants 
P

During fiscal year 

surcharges throughout 

mission attempted to 

ports through the coo

and the involved carr

at foreign ports is pro

is utilized by the Com

surcharge is warrant

sessed on a oneway 

the conferences expla

equally by the expor

successful in reducing 

governing tariffs

Bunke

Bunker prices were 

year 1972 As a resul

increases in cost to th

location of purchase T

tion would become wo

Port D

During this period t

order Docket No 725

East Africa Conferen

directed the conferenc

of the 25 percent por

Kenya East Africa in 

from JS Atlantic and 

Africa should not be e

and contrary to the pub

and 17 of the Shipping 

the outbound conferenc

serving US Atlantic a

surcharge Although t

15 percent surcharge 

effecti ve

to
While the proceeding was 

ports in question improved 

rate making groups volunt

surcharges and notice w

proceeding

War Risk 

In the Vietnam area there 

charge to account for incre

crew bonuses The Commis

it to determine the need fo

surcharge and kept the mat

its elimination when appro

charge was reduced from a 

per ton

Rate Disparities

Rate Disparities in t

Following a comprehensiv

by the conferences and t

serving the inbound and ou

trades the staff submitted 

mission that an Order to 

the conferences and the li

the recommendation and 

August 4 1972 under Do

of approximately 102 rate 

order

In October the Commis

this case to permit the pa

issues on an informal basi

the conferences serving the 

resolved 36 of the 102 com

Rate Disparities in the 

After continued Commiss

of unjustified rate disparitie

failed to produce the desire

551 605 OL 74 3
orders against the ou

May 23 1973 to show 

not order elimination o

disparities in their imp

On June 22 1973 th

the date for respondin

action on a request for 

respondents Responde

agreement on the proce

of these proceedings

Environmen

The staff worked wit

Agency and the Counc

proposed Commission 

National Environmenta

anticipate the various p

rate matters and incl

resolving these problem

There are two procee

which encompass envir

was instituted by the C

other arose as a result 

wastepaper in the fall 

rates on virgin mate

recyclable or recycled 

ferent trades

The staff also spent 

similar matter to reac

certain carriers serving 

of scrap metal who all

high when compared w

Trends in Trade by G

United K

The ContinentalUS 

No 9988 conceived pri

containership operators 

12
on October 3 1972 It cove

Hamburg range including 

via said range to United St

Cape Canaveral Florida an

ports places or points on 

said ocean ports and ran

parties may serve ports o

waterways eg the Missis

use of their specialized equ

on December 4 1974

The North Atlantic W

Agreement No 5850 as am

1973 to extend the confes

Atlantic to include ports tr

on inland waterways which 

and deep draft ocean vesse

These two agreements ref

as a trend for conference

operating members to exten

to the inland navigable wat

benefits to be obtained by th

and equipment

There have been severa

conferences or conference 

independent carriers on th

arrangements are designed 

between operators of diff

container operators vers

operators versus allwater c

Another type of agreeme

the socalled Discussion 

usually provide for the exc

mation and data by the part

experiences and conditions 

defining problem areas an

be alleviated by further ag

is the recently filed Cana

ment No 10057 among t

Coast conferences serving 
14

Agreement No 997

among five Japanese fla

and US Atlantic Co

Commission on August 

tation of a seven vesse

temporary through Nov

for the impact of the a

ment was extended to 

by subsequent Commis

implemented to the b

The space chartering 

the carriage of loaded a

vessels have provided 

Commission has under 

approval of the arrange

from the date of comm

tainership thereunder 

Agreement No 9981 

Far East Discussion A

and foreign flag carrie

ports in the United St

arrangement for coope

change of information r

carrier services in suc

year extension of the 

Commission on May 15 

A review of the reports 

cates considerable a

methods for the compi

lating to changes in th

ment Negotiations are 

cargo pool contemplated 

mize the effect of overto

There is now pending 

arrangement Agreemen

flag carriers members 

allow greater cooperati
arriving at a common positi

pation in Agreement No 99

Latin 

The trend in Latin Ame

merchant ship growth thro

tinued in fiscal 1973 This e

pooling sailing and equal a

flag carriers and governm

American carriers There 

agreements in effect

Three of the 16 agreeme

10028 and 10029 involvin

approved by the Commissio

year terms and are multilat

A new type of bilateral ag

arrangement Agreement 

GulfColombia trade is p

approved it will permit the 

total import and export carg

A new development utiliz

ment is beginning to surfa

Atlantic CoastBrazil Disc

which was filed on May 1

action The agreement a

Incorporated Companhia 

and Companhia De Nave

the respective national flag 

Brazil directly concerned w

trade between the two cou

just and economical coop

promoting commerce betwe

more efficient service for s

The economic growth of 

flexible ocean service wh

comprised of varying co

unitization breakbulk an

services port complexes 

ment will permit the carrie
use of their combine

requirements for total 

plan for the rational 

separate and differing t

geographical sectors m

Intermodalism

At the close of fiscal 

for permission to exte

establishment and imp

from inland points in th

in other countries with

conference agreement

have been granted and 

one of which is under c

Only one conference 

intermodal rates on file 

Atlantic Westbound F

5850 This Association 

England Scotland an

Association sFMCTa

Britain and Northern I

Atlantic ports of the Un

Of the 26 intermod

mission 10 relate to 

European trades 10 to 

and Caribbean trades 

United StatesFar East 

tions for intermodalism 

opposition from one ind

intermodal rates on file 

In each of the eight F

member lines of the co

have filed socalled m

mission covering throu

Far East and inland poi

States Atlantic and Gu

16
Implementation of LASH 

LighterAboardShip LAS

ship and a complement of 

service is best suited for trad

tributary to the ocean port

but not deep draft ocean 

between the United State

Kingdom Far East and th

During fiscal 1973 beca

LASH services several co

were modified to accommo

their jurisdiction to points a

ways tributary to the range 

basic agreements

RollOnRollOff RoRo d

whereby cargo is moved on 

wheeled containers of veh

services continued to be m

North AtlanticEuropean 

service exists in the Puer

Most recently a new join

establishment of a RoRo 

East Coast ports and Guat

also planning to expand 

Honduras There is also 

service will soon be introdu

Terminal Operations an

The marine terminal in

connection between ocean 

it serves is also regulate

operators are required to 

Commission setting forth 

regulations for services o

agreements between term

carriers by water are requi

mentation in order that 

whether they qualify for 

under Section 15 of the Sh
In both primary areas 

tariffs and agreements 

increased in direct rela

providing for the deman

The impact exerted 

tinually accelerating r

systems has increased 

Commission and indust

Aside from providing 

for handling breakbulk 

dustry also provides the 

in the intermodal schem

technological advantage

over traditional shipping 

Thus in response t

methods such as LASH

of larger containership

engaged in an unprec

and expansion involvin

dollars New berths are 

being modernized to 

Mobile cranes and asse

BEE barges ramps for 

vessels rail interchang

supporting upland hand

essential for the effici

and virtually every US 

its facilities and services 

as possible

In addition the dev

marine terminal faciliti

our vast inland waterwa

ports that once handled 

ments are now handlin

waterborne foreign com

SEABEE and miniship 

inland waterway system

Navigation System ha

18
cities such as Tulsa Oklaho

our foreign commerce

Development of Contain

The use of containers 

acceptance in the world s 

ocean ports domestically a

ahead with the developmen

harbor facilities to make t

sive to the newer genera

facilities for the handling 

LASH containerships and 

the pure containership

While containerization d

US ports its progress at G

ports has been slow Howe

port offers full container h

Illinois legislature seeks a 

container facilities at the P

Containerization repres

has fostered the integration 

can flow virtually without 

supplier to that of the ov

container revolution has sp

tions as allunit trains of 

prior or subsequent ocea

known as a mini bridg

Seatrain Lines Inc began 

trains between California 

and Penn Central Railro

transit time for a contain

port to Japan is approx

shippers charges are ide

by containership via the P

23 and 31 days

Despite the overwhelmi

there are still obstacles 

tonnaging profitable retur

551 605 OL 74 4
developing ports and f

certainties The contain

not the least of which is 

three foreign all co

North Atlantic to form a 

sailings and port calls T

10000 is the subject of 

opposition to the pooling 

The five Japanese ca

between Japan and Unite

Agreement No 9975 a

service to ports on the 

served by direct call on e

is performed by water ca

ommerce Commission 

which are on file with th

Japanese lines provide a 

and outbound to and fr

Nova Scotia under con

Maritime Coastal Conta

ments the ocean carrie

Far East Conference o

Atlantic Gulf Freight 

to Boston The rates of 

and Halifax assessed the 

Commission

The Uniform Intermod

which sets the rules und

carriers will interchange 

was finalized in May 19

representatives from the 

Committee Agreement 

American Railroads and 

Interchange Association 

agreement slongrange im

Emerging competition 

Company FESCO the S

a serious concern to shi

20
Fesco has introduced its fi

routes between Japan Ho

According to the planning 

new containerships schedu

ready for service within tw

Domestic Commerce

Tariff F

A total of 1580 pages 

for filing during fiscal year 

increase in the number o

year Of the total number 

rejected due to various tar

The Commission has th

notice provision of all tarif

offshore trades These sp

in the discretion of the 

cause In fiscal year 1973 1

were received in the do

granted and 31 denied by t

tions were withdrawn

During fiscal year 1973 

tariffs on file

Price 

Early in 1973 the Pric

tions requiring certificatio

mission that rate increas

with the provisions of the 

Price Commission regulat

the Federal Maritime C

data requirements in sup

Under its new policy a 

mestic offshore commerce 

inflationary while meeting 

continuing adequate servi
Freight For

A survey was conduct

brokerage is paid in the 

disclosed that in the Pu

compensation is genera

while in the less lucr

American Samoa and t

more extensive In the 

areas the level of co

percent and is paid by 

trade

Review of Freight F

Commission rules pe

to freight forwarders H

that such compensation 

by carriers to buy carg

a level to adequately an

rendered Since compe

review is being made of 

carriers are acting in a 

rules and regulations

Conta

As part of a continuin

and definite statement o

shipments exception w

carrier attempted to pub

in trailerload shipments 

suspended and an inv

lawfulness of the subject 

The Commission is p

clarify container rates

Ina

An audit was conducte

offshore trades so tha

22
cancelled As a result of th

were voluntarily cancelled 

At the same time the C

Orders against 26 carriers 

tariffs in question

Aut

The Seventh Annual INC 

with automobile manufact

model automobiles was pu

automobile weights as s

were included for informat

Non Vessel Oper

The Federal Maritime 

insuring that common carr

commerce establish and m

In an effort to establish a 

Commission may evalua

published by nonvesse

NVOCCs the Commiss

their operations In conn

mission has issued a tot

questioning financial and 

operating in the domestic 

Offshore State 

The Commission has be

jurisdiction over the ca

offshore trades Discussi

with the carriers officials 

tories and with other inte

Pu

The Puerto Rico trade 

during the first quarter o

carrier in the trade propo

board reductions on less 
This initiated a chain rea

carriers who followed 

magnitude of the propos

nonvessel operating com

would squeeze them out 

restored to this element 

considered their decision 

their proposed reduction

Again a potential ra

mission s decision to 

carrier s proposed reduc

fish and pet food moving 

Atlantic ports The Co

nature of the reductions 

be of sufficient impact on 

tion and suspension

A major innovation in t

a proposed intermodal 

fornia and Puerto Rico 

analysis to reveal a com

peared by its technical c

the Intercoastal Shipping 

publication was made th

and was later cancelled b

General rate increases 

major water carriers serv

wave of increases filed 

carriers in order to close 

structures and the exist

carriers

For some time the rate

Hawaii trade has been ra

primarily by competitive 

cost plus profit methodol

of the water carriers ap

resulting in the wave of 

21 
percent of the NVOCCs 

Hawaii trade As a result 

creases filed by the NVO

However it was anticipate

freeze period early in fisc

involved NVOCCs would a

The level of these increas

petitive reaction and it is 

depressed These margin

levels have been typical of 

the growth of misdescribe

of at least one NVOCC du

While the carriage of lu

modity by carriers servin

and Hawaii in the past ca

for this movement After 

mission the carriers have 

lumber rates to the shippe

more favorable rates and i

A forty one day strike 

Association ended Decemb

holiday cargoes destined f

Amer

Proposed general incre

in the American Samoa tr

tion and suspended for a 

30 1973 The proposed in

of concern to the citizen

expressed the fear they 

with foreign countries if th

to go into effect

Ihe Territory of Gua

remotely situated in the 

entirely upon ocean tran

In those instances in whi
sources the related oce

regulation than the serv

and territories The Com

related to ocean service

continue to fully discus

end meetings have bee

representatives of the G

resolve any dispute o

jurisdiction

26

Waterborne commerce 

and the State of Alask

undertaking is regulated 

preponderance of carg

jurisdiction of the Inter

FMC regulated carriers 

the line on increased rat

serving Alaska has been 

In the fall of the y

service to the far North 

navigation season the C

carriers willing to risk 

Commission allowed hig

applicable 30 days notic

costs incurred as a result 

Vi

The Federal Maritime 

study of traffic between 

Islands at the request of 

Department of Commer

the Merchant Marine A

completed in the relativ

was furnished to the M

the Governor of the Vi

parties 
Agreements Review

Pursuant to the Shipping 

views section 15 agreemen

these agreements should be 

fied Unless approval is ob

the concerted arrangemen

may be liable to a penalty 

day such violation continu

obtained from the Commis

munity from the application 

The surveillance of appro

of the basic agreement an

determine whether it contin

section 15 of the statute a

of the Commission and 

Commission and Court de

initiated with the parties to 

the necessary changes inco

During fiscal year 1973 

terminal agreements were 

tion A statistical table of 

ments is attached as Appe

Confere

In fiscal year 1973 the 

conference and ratemakin

Commission and reviewed 

The minutes of many co

do not always provide th

information Therefore in 

mission scontinuing surve

in rulemaking proceeding 

substantive changes relat

made If approved more m

will be obtained Confere

and complete as to those 

those on which action ha

enable the Commission to 

are carrying out the functio

551 605 OL 74 5
Shippers Re

The phrase shipper

any communication requ

or regulations objectin

changes protesting all

incorrect commodity 

measurement of cargo 

Routine requests for r

space availability and t

going General Order N

reports by conference a

whether shippers reque

complaints are being ha

year the conferences rec

and complaints of wh

granted in whole or in p

serves as a barometer in

requests are acted up

shippers may call upon 

ance or they may seek 

the filing of a formal co

In fiscal year 1973 39

requests and complaints 

In connection with its 

735 the Commission h

data such as the ident

practice and the amou

included in the quarterl

will be able to improve 

shipping public The inc

practices clearly sho

cerning concerted ratem

regulations must be rep

Selfpolicing of Con

Self policing reports 

mission of the extent to 

ments are policing the a

28 
respect to malpractices a

tariffs The Commission is 

agreements are not as act

required by section 15 of 

considering deletion of se

and promulgating a separat

specifically with this ma

rulemaking proceeding sh

ratemaking agreements mo

include more stringent self 

In an effort to improve 

in the North AtlanticEur

approved Agreement No 9

ing a common self policing 

the North Atlantic This sys

of a neutral organization 

Authority which is requi

continuing surveillance ov

lines of all the member co

the Enforcement Authority 

of the major ports served 

Since approval of this A

ence has joined and seve

agreements are in the pro

anticipated that many co

operating between the Un

come parties Thus far th

conducted several hundred 

numerous fines for malpra

or tariffs Noting the effec

ences in other trades are 

setting up a similar system

In fiscal 1973 154 self p

Commission and reviewed 

Opera

In view of the increa

submitted by conferences 
parties to such new agr

ments primarily in the 

tablished a new report 

Report In view of th

from advanced technolo

these reports will increa

a detailed analysis by 

activities of the parties 

the scope of their app

reports were filed and 

fiscal 1973

Poo

Pooling statements 

keep it apprised of the a

the parties to the poo

usually filed on a sem

complex and require a 

agreements covers the 

receives the approval 

American country serv

proval before they may 

Twentyfive pooling s

mission and audited by 

trend of such statemen

pooling activity in the L

Dual Rat

Common carriers or c

commerce are allowed t

the approval of the Co

Shipping Act 1916

There has been cons

ference dual rate syst

initial dual rate system

Commission action and 

the Inter American Fr

before approval Six co

30 
to modify contracts to cove

from inland points in Europ

conference in the Australi

devaluation authority upo

filed to merge two conferen

systems in the Spain an

westbound trade is pendin

the applications of two inb

the United States for a re

presently approved spread 

tween contract and non co

Informal Complaints

This was the second ful

of Informal Complaints w

ment The Office was esta

public with a point of con

prompt inexpensive and u

an amicable cooperative b

There were 50 informal 

ning of fiscal year 1973 a

were received an increase 

At the year s end only 42 

been concluded on 382 Of 

87 percent related to p

foreign and domestic offsh

to the activities of indep

15 4 percent related to p

ators and 1 related to a s

The Commission has no 

loss and damage claims 

under sections 14 Fourth 

1916 to correct practices fo

There was a significant i

number of complaints aga

ment and settlement of cla

claims were received an 

received in fiscal year 19
from a greater awarene

efforts to assist in this ar

Informal complaints 

are generally concerned 

rules or regulations Un

1916 elvery terminal op

enforce just and reasona

to or connected with 

delivering of property U

a possible violation of 

parties involved request

ing the dispute and upon 

tion renders an opinion 

Commission decisions o

the great majority of c

resolved at the staff leve

settlement of the proble

and appropriate action du

In early 1973 severa

a conference had illegall

rate privileges for bre

damages were paid The 

cotton shippers had the 

respect to certain shipm

via nonconference vesse

been made to resolve the 

forth in the contract the C

to show cause why the di

shippers should not be s

for in the contract why 

and desist from suspend

its contract with the sh

should not disapprove its 

to abide by its terms as 

Shipping Act 1916 This 

of the fiscal year

Field Activities

Field activities of the 

32
Washington DC are c

through three districts 

District and the Pacific D

are located in New Yor

Francisco Each of the thre

is staffed with investigative 

The program of the Co

Juan Puerto Rico through 

contact point with the sh

cial community in San Juan

Invest

Investigations conducte

wide range of alleged or su

provisions of the Shipping 

Shipping Act 1933 deter

of applicants for indep

licenses compliance chec

already licensed special i

issuance of certificates o

vessel operators

At the beginning of the 

were in process of comp

new investigative cases w

completed This represent

of new cases received an

completed compared to th

Pen

During the fiscal year 

against 25 carriers by c

settlement by the Commi

statutes This represents 

carrier violations penaliz

dollar penalties over the 

At the end of the year 

of investigation or pend

mission under its autho
Cont

The Commission con

veillance of container t

designed to obtain tran

applicable rates Inspec

applicable shipping doc

basis on import cargo

were taken when discre

34

claims or pending di

Department of Justice
SURVEILLANC

ENFO

Tariff Review and Filing

Foreig

In the foreign commerc

3151 tariffs on file at th

tariffs and amendments 

compliance with the Sh

statutes and various Co

examination took into acc

1 Section 18b and Gene

filing rules and regula

2 Section 15 as to whet

thereunder or wheth

therein might extend 

3 Section 141b and the 

contract systems as a

4 Sections 146 and 17 w

and undue or unfair p

5 General Order 4 The 

paid to licensed freig

tariff

6 General Order 8 Rule

free time and demur

York

7 General Order 10Tar

salted hides must con

weight for purposes 

8 General Order 26 Tar

rates at New York 

regulating free time 

There was an increase 

of approximately 18000 

about by the increased 

551 605 OL 74 6
charges devaluation of 

currencies bunker surc

creases in the price of 

1973 carriers and conf

increases to offset spira

numerous rate reductio

shippers who indicated 

rates

TariffFiling Stat

Filings Received 

Filings Accepted 

Filings Rejected 

Special Per

The Shipping Act 19

its discretion and for goo

in rates or issuance of 

statutory notice Genera

to advance an effective 

following lack of any se

expiration of a letter of c

and requirement of a par

Special Permission Applic

Granted 

Denied 

Withdrawn 

Comparison of Fo

Section 17 of the Shi

common carrier by water 

charge or collect any rat

discriminatory between s

dicial to exporters of the 

their foreign competitors 

subscribes to certain tra

both domestic and fore

36 
obtained relating to rate a

The staff maintains surve

order to determine the leve

applied by foreign carriers 

with the activity of carr

United States ports Port 

publications The informa

tions provides the Commis

at ports and trading rang

publications have revealed 

commerce have increased 

rates in United States c

gestion occurs at a particu

in the United States or 

surcharge to offset additio

noted that the foreign c

bunker surcharges and 

information available it 

has been made 00 behalf 

carriers serving United S

than those in effect in 

information has proved h

mission is continuing to ma

Inactive 

The Office of Tariffs a

to determine the status o

revised for a period of 12 

utilized During the fisc

were eliminated from the 

Infor

Beginning fiscal year 1

84 informal complaints p

148 new complaints whi

parities rate protests a

fortynine were processed 

the basis of no violation 
mission was able to ne

obtain a satisfactory set

to assure that exporters 

marketplace is not hampe

Tariff M

The staff maintains a t

and regulations which 

statutes are questioned a

filing agents The followin

the year

Failure to include a b

include a reference 

such as the Carriage 

Publication of duplica

Participation of two o

approved agreement 

Questionable free time 

Application of containe

Improper Freight Forw

Change without approp

Rules related to absor

to discrimination or 

localities or ports

Less than full disclosu

modal tariffs

Ocean Freight Forward

Congress amended the 

the enactment of Public L

licensing and regulation o

Federal Maritime Commi

Commission promulgated G

the conduct and activities 

forth the criteria which m

applicants in order to be 

the Licensing statute a 

licensed

fitness willingness

after a thorough

and a

forwarding functions in th

38
L

At the end of fiscal y

licensed independent oce

new applications were rec

increase of 6 applications 

Also the Commission 

for various reasons and 

withdrawn

Eight cases involving 

suspension or revocatio

licenses were formally 

hearing

GSA Forwardin

During fiscal year 197

certain statistical inform

forwarder licensees who 

GSA forwarding contract

The collection of this data 

for the Commission to d

in full compliance with 

appropriate statutory req

that certain of these bids 

General Order 4 and pro

The data received is bei

further action by the Com

Possible 

Connections 

Examination of informa

freight forwarders in res

in fiscal year 1972 indic

were not in full complia

Commission sGeneral O

affiliation or control relati

consignees in violation o

tions and the shipping st

solve these problems eith
where necessary fullsc

The most serious matte

where a freight forward

an export shipper or co

licensing statute

Automatic Data P

An automatic data 

license number affiliatio

licensed freight forward

yearly for distribution 

licensed freight forward

yearly for distribution 

program will maintain f

current basis and will 

out the Commission s

will also be used as a cu

important regulatory info

industry

Rulema

The Commission sru

pendent ocean freight fo

in order to keep the Cos

with the public interest 

which have occurred in 

during fiscal year 1973 tha

Order No 4 by adding a

eliminating others which 

Preliminary meetings 

industry association re

determining industry vie

Further industry discus

rulemaking proceeding w

Water Pollution Finan

Since June 1970 the 

had the responsibility fo

40
section 11pof the Fed

as amended by the Water 

On October 18 1972 Con

section 311

Section 311 p1requir

over 300 gross tons inclu

size which use any port 

the navigable waters of 

Panama Canal to estab

financial responsibility wit

sion In the event that oi

waters and contiguous zon

responsible for the disch

States for the cost of rem

The evidence of financ

amount of 100 per gross 

million whichever is less

The Commission sGen

to implement the statuto

bility requirements Vess

financial responsibility re

Commission The rule 

quired by the Commission 

Financial Responsibility O

for denial revocation m

Certificates

Amendm

On October 18 1972 

Water Pollution Control 

1972 amendments adde

financial responsibility 

oil spills Further it prov

substances to the clas

owners or operators mus

Pursuant to section 31b2

of the Environmental Pro

regulations designating ha
42

The above mentioned 

mission s General Orde

a new or revised General 

New Certific

Because of the 1972 

mately 20150 currently 

will eventually require n

coverage for both oil and 

non self propelled barges 

have oil on board but 

require the new Certifica

Enforcement Proc

The newly enacted e

certain functions of the 

Customs Service Acco

effectively obtain full co

necessary for the three 

forcement procedures

Enforcement under se

to exceed 10000 denia

vessels by the Coast Gu

eign ports by the Custom

Insure

Generally vessel owne

strate their financial resp

of insurance Such insura

can insurance firms bu

world

The Commission must 

capability of the insurer 

agreement During the 1

11 foreign underwriters 

acceptable insurers
Certificates Issued

During fiscal year 1973 

ing 3747 vessels Certifica

vessels At the same tim

vessels were revoked for 

of the vessel to new own

covering 108 vessels were w

At the end of the fiscal y

by valid Certificates and 

The work of the Commis

is certified In fact it incre

companies by vessel oper

evidence of financial resp

semi annual submission o

transfer of ownership cha

situations which necessita

servicing of records togeth

and the reissuance of num

Automa

An automated record re

put into its initial phase of 

data This system provid

vessels vessel particulars 

numbers owners and op

each vessel It also quick

regulatory needs The av

information greatly enhan

ment program

Passenger Vessel Certi

Indemnification Certif

Pursuant to Public Law 

1966 protection is prov

owners charterers or o

passenger vessels having 

passengers and embark
ports to furnish evid

meet any liability to wh

injury or death and to 

of the nonperformance o

During fiscal year 1

applications for Certifi

There were 18 new app

Responsibility for Inde

performance of Transpo

Certificates of Financia

for Death or Injury

Amendments to issu

because of a variety of c

course of certificants o

vessels to fleets vesse

changes and an alterat

or managerial organiza

35 such amendments to 

and approved

The passenger public 

tection afforded by Publ

tions prescribed in the 

20 over the past seven 

Again this year the 

guarding passengers whe

cial difficulty and eventu

pleting a scheduled cruis

a passenger sustained a 

result of such an occurren

Certif

Nineteen certificates w

of vessels from service 

tions ownership or the 

operations

44

Stat
Passenger Conferenc

On July 17 1972 the C

No 9857 which establishe

Association This agreem

to permit the institution o

meet the rapidly rising co

The Commission appro

agreements and cooperat

a passenger carrier dire

represents other passenge

The Commission appro

passenger carrier agreem

agreements were pending 

SPECIAL STUDI

Economic Studies

The Office of Econom

major special studies and p

projects were

1 Assembling and 

Non Vessel Op

NVOCCs in th

2 Studying exchange 

relationship to 

dollar devaluatio

February 1973

3 Developing a majo

tion system for 

sion regulatory 

4 Continuation of 

in accordance 

the Sealift Pro

curity SPANS 

A study was undertaken 

and information kept by t

Carriers INVOCCs in th

a financial information 

developed for use in eval

persons A questionnaire 

and a proposed annual 

system was developed a

The proposed system is 

7315

A study relating to exch

of the currency surcharg

Report of the Federal Ma

economic conditions tha
surcharges seemed like

was recognized to esta

governing the filing doc

surcharges The study 

although some tentative 

before the end of the fis

A computerized info

started toward the end o

1973 the Office of Eco

ment of a computerized 

that will process vess

information generated 

conjunction with vesse

compiled by the Census 

The MARIS system w

range of definitive infor

available from any sou

types itineraries and c

oceanborne foreign com

commodity of each ca

enable the Commission 

modity movements betw

pooling agreements and 

itor the effect of rate c

modities to determine th

trade and to forecast t

ports and trade routes

The system will be a v

sion in evaluating the 

of

program

proposed

to eliminate

agreements

rate

tive identification of reci

by facilitating the match

with tariff descriptions 

oil pollution certification a

Commission providing f

ness in the discharge of th

The Commission appr

and finalized contractual 

48
and use of the necessary 

1973 Detailed system des

conversion of relevant reco

1973

MARIS is composed of 

interactive sub systems Fi

Spill sub system due to 

because vessel and carrie

will form the essential b

other sub systems The Oil 

tional in July 1973 and th

completed and functioning 

The study relating to the 

This project was conducted 

sis until October of 1972 a

Office of the Managing D

Study Group took over 

project although it mainta

Office of Economic Analys

committee the SPANS c

the Director Bureau of Ce

a membership comprising 

Counsel Chief Office of 

Sealift Procurement Studie

Two important recomme

that the FMC should rev

bidding under the military 

to disapproving rates so 

merce and second tha

Maritime Administration 

standard industrywide co

provide the Commission 

ascertain carriers costs

The Commission took 

mendations in the promu

in November of 1972 The 

is to require carriers in th

States who bid on reque

by the Military Sealift Co
which equal or exceed 

carriage of that cargo T

No 29 is section 18b5

in relevant part directs 

prove any rate which 

unreasonably high or lo

merce of the United Sta

The SPANS Study Gr

21 Order questions aim

from selected carriers re

2nd Cycle

The Section 21 Orders 

in the late part of Janua

riers responses thereto 

conducted a number 

on the data received T

bid rates for the carriag

US West Coast and Ja

nental Europe and the 

Europe In all some 27 

great depth and Docket

opened At the end of t

completed through the e

To carry out the secon

ing uniform cost accoun

Administration solicited 

a mechanism wherein th

accurately determine t

shipping certain kinds of 

the various trade route

steps the development 

prerequisite to a uniform 

and 2 a cost informa

obtain cost data and o

books and records make 

tion for the FMC The SP

Committee participated 

Advisory Group compose

carriers in the process of 

50
private contractor was to 

implementing the Uniform 

and the Cost Information 

December 1972 the contr

Peat Marwick Mitchell 

the Director of the SPANS 

the private contractor in 

UCAS and the CIRS by 

objectives of the systems 

with the Industry Advisory 

Group acted with the pri

carriers about the progre

analyzed the carriers c

concerning these systems 

lated and discussed by all 

ington DC in May 1973

Review of Bill of Ladi

Bills of lading contain n

actually predate the move

Such provisions may be 

today stransportation sy

Some bills also appear t

clauses which are incon

Carriage of Goods by Sea 

The Commission has h

with other government a

This combined interest h

The US Standard Mas

improved paperwork sys

which can be produced w

sary to export goods The 

of this bill of lading form 

carriers The response to 

virtually every major ca

accepts this form Antiqu

resulting therefrom will s
52

Tariff Rules Revisio

The Commission ent

revise its tariff filing rul

to benefit tariff users T

for tariff standardizatio

provide more precise s

it is expected that tarif

will be more certain and 

rules will also recogni

operations and provide 

tion and filing of multi

received from the publ

stages

Interagency Meetings

From time to time 

have met with represen

agencies For the mos

after a carrier or confer

sidered in the opinion 

be detrimental to US tra

instances the matter wa

of the carriers and confe

odic meetings for the pur

and exchanging informa

in the early part of 1973 

ings scheduled every oth

required that a special m

Commission the commit

of the Department of 

Administration and the 

ment The meetings pro

assistance to the agencie

ing regarding intermoda

charges rate levels lig

service patterns are amo

cussed by the committee
Carrier Information and 

The Commission comme

1973 to determine the ty

containerLASH RoRo et

over which the Commission 

there is a lack of service or 

other areas are overtonnage

operating below capacity O

of malpractices and with ve

commodity data the Com

better position to deal with 

in any trading area

Further a commodity da

for dealing with rate disp

have to rely on outside s

bank will contain accura

Commission by the Depart

Proposed Rulemaking 

Because of the two re

US dollar and the growi

monetary system the C

ferences and carriers emp

broader authority under th

the event of the devaluati

erally increases in rates 

ninety days notice exce

devalued the dollar In t

decided to institute a rule

use of a contract provisio

rate increases under dual 

fluctuations in the inter

currencies A feature of 

also provide for rate red

currency increases in valu

with similar protection
Rulemaking Concer

On February 23 197

Federal Register a Notic

section 15 agreements 

coordinate all current G

Commission concerning 

General Order Additio

the rules in order to as

its regulatory functions 

1 detailed information 

will be required to file a

tion 2 a requirement t

provide for an independ

rected to constantly po

through inspection of b

and investigations of ru

ments that minutes of m

matters discussed at th

ad hoc committees or oth

ing of the number of part

voted on and 4 a req

agreements file annual c

fiscal year 1973 the proce

During fiscal year 197

tion of a proposed rulema

Order 8 The effect of the 

establish uniform rules a

on import containerized 

The present rule does not 

necessary to correct and 

bility of discrimination ag

the shipment of their carg

Docket No 71 75 Ru

ments Between Common 

Persons Subject to the 

in fiscal year 1972 The 

proposed rules has been 

the Commission This p

54
establish new guidelines fo

agreements under section 

Initiation of other rulem

consideration ie 1 an 

No 15 Filing of Tariffs 

uniform strike storage and 

3 container detention rule

forth the duties of shipper

respect to descriptions 

documents

Inland Terminal Project

During the past fiscal y

in a program to identify inla

mission sjurisdiction This 

after a Joint Jurisdictional 

Interstate Commerce Comm

Commission This statem

Maritime Commission wo

transportation of freight i

foreign and United States p

With the advent of LAS

so called mini vessel servic

at an intermediate USpo

US inland ports and ose

necessary to identify those 

their service in connection 

miniship operations com

More specifically the Cs

which requires the filing o

application to these termin

of this project

A program has also be

filing of any possible Secti

terminals subject to the C

carriers they serve who ar

sion jurisdiction
Foreign Governmen

In light of the grow

to issue laws decree

establish conditions u

the Commission has 

entitled Regulations 

favorable To Shipping 

72 62 pursuant to sec

Act 1920 As an initia

which may require sec

rulemaking is designed 

the necessary vehicle 

criminatory situations a

chant Marine

56
PROCEEDINGS 

TRATIVE 

Administrative Law Judg

receipt of a complaint or in

Commission sown motion

Administrative Law Judg

ister oaths and affirmations 

of proof and receive relevan

tions to be taken wheneve

served thereby regulate t

conferences for the settlem

by consent of the parties 

or similar matters make de

and take any other action au

with the Administrative P

At the beginning of fisca

pending before Administrat

80 cases were added whic

remanded to Administrative 

ings The judges held 38 p

hearings in 16 cases and is

proceedings and 13 init

applications

Cases otherwise dispos

ceedings

Decisions of Administra

ings not vet decide

Docket No 6539Emp

Inc v American Export L

6546Truck Loading an

Harbor Truck loading an
New York were found 

rule as modified defi

and machinery for tru

of New York was foun

was also found to be law

ing rates and practice

activities of the New Y

Agreement No 8005 we

Docket No 7112 U

Steamship Company In

respondent violated se

rate for transportation 

tariff on file with the Co

Docket No 71 29B

Inc v Cargill Incorpo

conditions imposed by 

terminal elevator on ste

vessels at Port Allen L

tion of a lease between 

Rouge Port Authority 

sion whose implementa

by the Commission is 

that one of the steved

did not constitute an un

under section 16 First w

assessed and imposed o

assessed and the cond

related to the services 

constituted unjust and 

section 17

Docket No 7153S

creases in Rates in the US 

creased rates filed by S

CoastPuerto Rico Trad

doing the revenue tonm

of costs to the trade rath

was applied

Docket No 7157A

of the West Coast Unite

58
Burma Ceylon Rate Agree

providing general overland 

proved conference rate agre

stration that the amendment 

portation need or necessa

benefits because the authori

agreement

Docket No 7176Be

Indiana Port Commission 

respondent which assessed 

all vessels entering the Bur

violative of section 17 bec

fact render services to ves

to and from the docks

Docket No 71 89 In th

Cooperative Working Arra

preorganization agreement 

of this agency neverthele

within the jurisdiction of 

of the Act the agreement is 

agency As the subject m

within our jurisdiction filing 

Docket No 7194 Equ

Forwarders Inc Possible 

Paragraph Shipping Ac

spondents violated section 

to obtain transportation at 

which would otherwise be a

Docket No 7238T

Venezuelan Line It was he

sufficient information to 

determine the weight of th

and was entitled to palle

respondents tariff regulat

not furnished the compla

allowance

Docket No 7250 Flo

Independent Ocean Freig
Revocation or suspen

forwarder was withheld 

by water the freight it 

portation and complian

Docket No 7253 G

Department of Agricu

from Vancouver Brit

shown to be unlawful u

Docket No 7319 R

McCormack Lines Inc 

that a product consiste

higher rate by classifyin

it was held that the claim

awarded

Judges also issued in

71 9 71 46 71 67 7

7311 Special Docket N

451 452 453 454 455 4

and 288 1described un

Pending Proceedings

At the close of fisca

proceedings of which 4

Commission The rem

by the filing of compla

shippers conferences p

operators trade associa

name and instrumenta

60
FINAL DECIS

COMM

In proceedings other tha

heard 11 oral arguments a

proceedings were discontinu

and two were referred or rem

trative Law Judges for heari

The Commission also 

special docket applications 

mal dockets claims against 

or less

Docket Nos 6956A

States Lines Inc And Sea 

Kidde Co Inc And 

Guarantors and 7051

Among R J Remolds Tob

Sea Land Service Inc A

Inc United States Lines In

Agreement which would 

States Lines Inc and Sea 

ownership of R J Reyn

was found subject to Co

approved subject to con

U S Lines and SeaLand 

independent of and in comp

Docket No 703 Unit

Shipping Association

In proceedings on reman

for the First Circuit the 

forming the Boston Shipp

among its members as to 

dores and the first call re
to a labor exemption 

and thereby not requ

section 15 of the Act

Docket No 709

Ocean Freight Forwar

reconsideration the C

conclusions that respo

in numerous violations 

result of certain activ

connection License p

that violations be c

removed

Docket No 7014

Ltd v C Brewer Co

And Terminal Compa

respondent terminal ops

loaning of its labor for

16 First or 17 of the 1916 

Docket No 7028 

Delivery Rates and P

rate increases for pick

Rico were found just 

increase in fixed costs 

regarding pickup and 

ceased or modified

Docket No 7045No

Ocean Freight Forwarde

found to control or be c

to foreign countries in 

License permitted to be 

association with the sh

Docket No 714U

Lines Inc Adopted in

failed to adduce suffi

ocean shipment of plas

carrier Reparation den

Docket No 71 9Ro

Industries Inc and T

Possible Violations ofS

62
Act 1916 Adopted initial d

respondent custom house 

to apparent discrepancies i

of such a degree as to con

that respondent consignee w

consented to a misdescriptio

of obtaining transportation 

Docket Nos 7115Harr

Shippers Co ofNYIndepen

License No 35 and Forwar

and Stephen M Betheil a

Freight Forwarder License A

Inc

license

Adopted

is revoked

the initial

for perm

dec

license to another without p

and further application for l

because of participation in 

shareholder of original lic

wrongdoing

Docket No 7118 Mats

eral Increase in Rates In Th

Increased rates and charge

unjust unreasonable or oth

not produce an excessive ra

Docket No 7137Purc

tion Company Sea Land 

Corp Respondents failure 

their agreements for the s

pleted containerships did n

Act

Docket Nos 7146 and 76

national v Venezuelan 

wherein reparation was de

ocean freight inasmuch a

commodities shipped were 

the bill of lading

Docket No 7171 Agr

To GovernmentControlled 

Working ArrangeAgreem
Sailing And Equal Ac

Agreement Equal acc

among carriers in US 

approvable under sec

record shows no reas

on competitors which m

flow from approval the

Docket No 7176

diana Port Commiss

prior order asserting j

tions as an other pers

Docket No 7192G 

spondent srequest to 

towards revocation of f

for suspension of licens

Docket No 71 97I

ApplicationAlvarez 

freight forwarder slicen

of forwarding because o

violation of section 44 

Docket No 725A

ference Proposed Impo

charge Increase of 

devaluation provision o

orized where devaluati

official governmental a

authority over the curre

rate filing without hear

Docket No 7215 R

tions of North Atlantic 

Relating To the Movem

initial decision wherein 

heavylift rules was a

lift rate modifications t

on modern container or r

Docket No 7251 N

NYSAILA Man HourT

Possible Violation of Se

64
1916Assessment formul

association and union whe

to be funded found subje

of the 1916 Act and furthe

from the requirements of th

Docket No 7256Un

The Delta Steamship Line

wherein reparation in the 

the assessment of a rate f

as to be detrimental to the 

States

Docket No 7257Un

Lines Adopted initial dec

for alleged ocean freight 

of evidence as to effective

modity in question and co

Docket No 73 6In T

2719 Agreement for leas

Houston Texas found not 

Act inasmuch as lessee do

carriers and thereby falls 

person subject to the Act

Docket No 73 11 Kra

Lines Adopted initial d

awarded reparation in the 

of a shipment via respond

by conference rule requir

within six months of shipm

RULE

The following rulemakin

fiscal year 1973 are still in p

Docket No 72 41 Truc

York

Docket No 7254Proc

National Environmental Po

Docket No 7262 Reg

tions Unfavorable to Shipp

Docket No 734Non V

of Used Household Good

Filing Requirements

Docket No 73 Sect

Shipping Act 1916

Docket No 7315 Fin

Operating Common Carrie

Offshore Trade

The following final rules 

year as a result of rulemaki

General Order 16 Arnd

Small Claims Settlement O

General Order 4 Rev Ar

Ocean Freight Forwarders 

No 724

General Order 29 Crite

Military Rates not Detrime

Section 18bSof the Sh

7243

General Order 30 Colle

Penalties Docket No 72 6

The following rulemaking 

without adoption of rules
Docket No 7236T

York discontinued Augu

The following procee

year reported were still p

Docket No 7122Sc

Docket No 714Q

Damage Claims

Docket No 7175 Ru

Between Common Carrie

Subject to the Shipping 

further notice

68
ACTION IN 

At the beginning of fisca

Federal Maritime Commis

various US Courts of App

Four more petitions wer

two of the appeal proceed

remaining 13 were pendin

as of June 30 1972

During fiscal year 1973 

filed in the Supreme Cour

SIGNIFI

The following were amon

cases in the courts

Federal Maritime Com

et al 411 US 726 197

approving under section 

sale of six vessels and rela

ship Co to Pacific Far Ea

court decision 460 F2d 7

Court found that while the 

to approve ongoing or 

carriers and thereby givin

immunity such jurisdictio

mergers and asset acquis

a single noncontinuing e

Imerirun Dail Line Ltd 

Ltd et al v Federal M

731252 DC Cir and 

Commission sconditional 

bacco Co acquiring from W

ship of United States Lin

owner of Sea Land Servic

mission s order to maintai

of each of these water carr

by the DC Circuit Court o

Vert Fork Shipping Asso

shoremen s Association AC

Commission and Lnited Sta

ing application is made to 

Circuit to review the Coms

has jurisdiction under the S

agreement to allocate asses
nal operators and other m

of raising monies necess

for maritime laborers w

agreement differs from th

subject to FMC sjurisdi

Maritime Commission 3

the case in Volkswagenw

is a party to the agreem

District Council of the 

Longshoremen sAssocia

Civ Act No 73812 ED

plaint for damages alleg

and the antitrust laws 

alleged diversions of ca

tioned to intervene and 

Eastern District of Pen

issues pending final det

within its primary jur

argument before the Co

Transamerican Traile

Commission et al No 

cases presents for re

approval of an assess

labor

Association

accord

and

reached

NYSA

b

comprised of ocean car

at the Port of New Yo

associated with loadin

carriers The assessme

modified by the Comm

costs of various benefits 

the union and NYSA T

the Court in June 1973

United States v Seat

DNJ 1973 charges 

the criminal provisions 

1916 on certain shipme

in early and mid 1970 

favoring certain shippe

72
erential treatment in conn

criminal case which is 

one present official and 

defendants

Settlement and NonAd

The Commission has c

program under the Federa

and with the enactment of

the Shipping Act to permit 

provided by that Act ha

claims under this new a

During fiscal 1973 settlem

made with 16 carriers for v

of section 18 of the Shipp

the Intercoastal Shipping 

the recoveries from civil 

or settled before litigation 

violations of statutes admin

LEGISLATIVE 

Intermodal Transporta

Factor Rate in the Fo

Trades Progresses w

Merchant Marine and F

The Commission spro

the Congress on June 6 

Act 1916 to provide for 

rates under a through bil

of property in the foreign 

of the United States

Introduced in the House 

subject of hearings both i

in September 1972 Cha

the Subcommittee on Me

Marine and Fisheries Com

18 1972 The Chairman p

latory structure in trades co

trading involves at least tw

different carriers different 

tion and constantly varying 

sized American businessm

of red tape and overlappin

the Federal Maritime Co

foreign trading practices 

equips it the Chairman st

intermodal movement

The hearings provided a v

of the maritime and relat

record regarding this vital 

Chairman of the Merchant 
the Commission revised 

objections raised at the 

the exclusion of the no

as an intermodal ca

licensing provisions Th

the first session of the 93

Federal Water Polluti

Recommended Enfor

Public Law 72 500 

amended the Federal W

Environmental Protectio

responsibilities under th

Act with additional auth

and eliminate pollution 

Public Law includes pro

operator to fines of up 

financial responsibility 

issued in connection w

visions of the Federal 

Public Law further auth

to deny clearance to an

of compliance and auth

access to any port or pla

any vessel about to dep

responsibility Thus the 

this Commission had p

responsibilities with res

enacted as a part ofPubl

further action on S 261

request of the Federal M

Comprehensive Rep

Federal Maritime Co

Committee on Merc

the House

On November 2 19

the Committee on Me

76
House of Representatives 

activities of the Federal M

The presentation cove

general mission of the C

evaluations conclusions a

The Chairman stated th

mission in a manner whic

affected the carrier as wel

without discrimination p

avoided regulating for the 

in our power to protect 

United States and to negate 

flag ships The fact that 

of resolution as new transp

the world was stressed a

said that The Commission 

contribute its expertise an

tion of such problems

Other Legislative Activi

Responsi

Chairman Bentley appea

chant Marine and Fisherie

to outline the various statut

derives its basic respons

transportation in our fore

cussed outlining the vario

led to eventual enactment 

principal basic statutory 

actments and reorganization 

and its predecessors were 

Reorganization Plan No 7 o

promotional and regulato

pointed out that since that 

maritime industry as conte

has been actively and effe
Discriminatory R

With ecological conce

Maritime Commission 

Senate Committee on C

S 1122 S 1593 and 

alleged discrimination in 

materials which are mov

United States by regulat

Chairman Bentley tes

Commission is concerne

ports the goal of pres

recycling

feeling that

related

existing

activitie

sta

investigatory processes 

the Commission furthe

sary at this time

It is the Commissios

that to impose overly co

lines is not conducive t

The Chairman urged th

impossible unnecessary 

Transporting 

On June 15 1973 

appeared before the Su

the House Merchant M

presented the views of t

The legislation would c

tion on the Commissio

containers or containeriz

the barge is used as a 

in lieu of a vessel call 

accordance with interpr

Commission even thou

two US points is in th

and moving on a through 

ment is subject to the In

78
in unnecessary and fragm

Enactment of this legislat

tion and provide for regul

single regulatory agency

Uniform Commodity 

On June 29 1973 Cha

subcommittee on Foreign 

Senate Committee on Co

The bill provides for a syst

tions and tariffs filed with 

contemplates a uniform 

commodities and provides 

between the inbound and o

If the filing did not cont

rate for the transportation 

opposite direction the C

to reject the filed rate m

S 1488 provides the neede

cans engaged in the forei

United States will not be a

trading Passage of S 1488 

mate objective of elimina

Legisla

During fiscal year 1973 

many bills that had been 

filed reports thereon with t

Commissioners

ADMIN

There have been no cha

during fiscal year 1973 H

continued to serve as C

Ashton C Barrett of Mis

George H Hearn of New 

California

On July 26 1972 Com

his colleagues for a secon

of the Federal Maritime 

missioner Barrett
Statement of Appropriatio

Ende

APPROPRIATION

Public Law 92 544 92nd Cong

necessary expenses of the Fe

services as authorized by 5 

vehicles and uniforms or a

5 USC5901 5902 

OBLIGATIONS AND UNORLICATED BAL

Net obligations for salaries an

June 30 1973 

82

Unobligated balance withdraw

STATEMENT OF RECEIPTS DEPOSIT

TREASURY FOR THE FISCAL YEAR 

Publications and reproductions 

Freight forwarder license fees 

Oil pollution application and cer

Fines and penalties 

Miscellaneous 

Total general fund receipts 
Ap

Statistical A

Fisca

SECTION 15 AGREEMENTS

Foreign commerce 

Domestic offshore 

Terminal 

SECTION 14b DNA RATE CONTRACTS

New systems includes modificatio

REPORTS REVIEW

a Shippers requests and complain

b Minutes ol meetings 

e Self policing of conference and r

d Pooling statements 

e Operating reports 

APPROVED AGREEMENTS ON FILE AS OF 

Conference 

Rate 

Joint conference 

Pooling 

Joint service 

Sailing 

Transshipment 

Cooperative working agency and c

Domestic offshore 

Terminal 

Dual rate mitt act SN St 

Total 

TNRIFTS

Tamil pages filed

Foreign 

Domestic Offshore 

Terminal 

Tariffs on file as of June 30 1973

Foreign 

Domestic 

Terminals 

U E G
84

W

5

0

w

2

5

oz3 K1

ZW

D

1

r