FED

ANNU

TABLE 

LETTER OF TRANSMITTAL 

MEMBERS OF COMMISSION 

SENIOR COMMISSION OFFIC

I THE COMMISSION

A History 

B Functions 

C Organization 

II THE YEAR IN REVIEW 

A Trade Developmen

B Restrictive Trade 

C Surveillance 

D Enforcement 

E Consumer Assistan

F Tariff Automation 

III SURVEILLANCE AND 

A Surveillance 

B Enforcement 

IV DEVELOPMENTS IN M

A Transatlantic 

13 Mediterranean 

C Middle East 

D Africa 

E Latin America and 

F Transpacific 

G Worldwide 

V AUTOMATED TARIFF 

A Introduction and B

B Early Studies on 

C First Step in Tariff 

D The Shipping Act 

E The Tariff Automa

F ATFI Feasibility 

The ATFI Advis

G Benefit Cost Analy

Procurement Au

H Inquiry on the Fu

Presolicitation C

I Remote Retrieval 

J Contract Award 
K Docket No 9023 

L Batch Filing Guide 

M Miscellaneous Miles

N Update on Remote 

VI THE FOREIGN SHIPPI

A General 

B

Top Twenty USL

Trading Partners 

VII SIGNIFICANT OPERAT

ORGANIZATIONAL UN

A Office of the Secreta

B Office of Administr

C Office of the Genera

D Office of Equal Em

E Office of Inspector G

F Office of the Manag

G Bureau of Economic

H Bureau of Tariffs C

I Bureau of Enforcem

J Bureau of Adminis

APPENDIXES

A Organization Chart 

B Commission Procee

C Agreement Filings a

D

Tariff and Service C

Special Permission 

E Civil Penalties Collec

F Investigations 

G Statement ofApprop

and Receipts 


FEDERAL M

WASH

To the United States Sen

Pursuant to section 1e

7 of 1961 and section 

1936 as amended I am 

annual report of the a

Commission for fiscal y

Additionally sectio

Update on Remote Acc

with the request of C

developments of reason

to the Commission s

Information System A

MEMBERS O

Ming C Hsu

Commissioner

Appointed 1990

Term Expired 1996

Har

Ap

Ter

DeH

C

Ap

Term 

One vacancy as of Fe

SENIOR COM

Secretary 

Chief Administrative L

General Counsel 

Director Office of

Equal Employment O

Inspector General 

Managing Director 

Deputy Managing Dire

Director Bureau of

Economics and

Agreement Analysis 

Director Bureau of

Tariffs Certification

and Licensing 

Director Bureau of

Enforcement 

Director Bureau of

Administration 

THE C

A 

The Federal Mariti

FMC was established as 

Reorganization Plan No 7 e

time the Federal Maritime 

regulation ofocean commerc

US Merchant Marine 

shipping laws of the 

categories regulatory an

associated with promotion of

Marine were assigned to the 

within the Department of Tr

was charged with the admin

the shipping laws

The Commission is 

oceanborne transportation in 

passage of the Shipping Act 

major change in the regula

operating in the US foreign 

B F

The principal statutes 

the Commission are the 1984 

of 1988 FSPA section 

1920 Act and Pub L No 

Commission also administere

and the Intercoastal Shippin

carriage in the US domest

responsibility for USdome
to the Surface Transportation 

1996 pursuant to the ICC T

10488 109 Stat 803 1995

The Commission sreg

Protecting sh

foreign comm

non market o

foreign gove

foreignflag ca

the commerce 

Protecting th

companies to t

oceanborne an

Reviewing and 

carriers and 

foreign comm

conference po

agreements

Receiving and 

regulation of 

engaged in the 

Regulating ra

regulations a

owned or con

are just and re

Issuing passe

financial res

charterers to p

death or to rep

a voyage or cr
Licensing inte

Bonding non

NVOCCs

Investigating 

classification

carriers te

forwarders o

the US

The Commission is au

1920 Act and section 13b5

ensure that the foreign comme

market barriers to ocean s

countervailing action to corr

USforeign commerce and m

by carriers or foreign governm

ofUScarriers in the USfor

access ofUSflag vessels to 

The 1984 Act is ap

carriers and other persons e

exempts agreements that hav

the US antitrust laws as c

Acts The Commission revie

that they do not exploit the gr

that agreements do not otherw

unreasonable increase in 

reduction in service

In addition to monito

Commission is also responsib

as well as those permitted by 

shippers and other members 

prohibits carriers from undu
other members of the shipp

carriers to make their rates c

in tariffs that must be on fil

only assess the rates and ch

Commission The Commiss

to approve or disapprove 

commodity rate levels in th

regard to certain foreign gov

Pub L No 89777 re

with 50 or more berths wh

establish financial coverage 

death injury or nonperforma

certifies such operators upon 

of financial responsibility

The Commission carr

conducting informal and f

hearings considers evidenc

appropriate orders and imple

also adjudicates disputes in

general shipping public and 

groups

C OR

The Commission is 

appointed for fiveyear terms 

consent of the Senate N

Commission may belong to 

designates one of the Comm

Chairman is the chief execu

agency

The Commission sorg

the Managing Director Office 
Counsel Office of Admin

Employment Opportunity O

Economics and Agreement A

and Licensing Bureau 

Administration The Man

providing

bureaus

executive

These offices

and adm

Commission sregulatory pro

In fiscal year 1997 t

180 fulltime equivalent po

14000 The majori

located in Washington DC 

Orleans Los Angeles Miam

THE YEA

The Commission co

international trade and trans

1997 Specific emphasis was 

from unjust activities or malp

equitable trading conditions

The Commission mo

in international liner shippin

assist its ongoing surveillanc

to react to unacceptable or ille

as a result of competitive pr

addressed the practices or law

restricted trade or created und

entities or US commerce 

information and assistance to 

USocean commerce

This Annual Report e

office basis and contains a 

accomplishments Special s

interest This section of 

Commission smajor activitie

A TRADE 

International ocean s

USeconomy and the rest o

assesses trade development

economic factors relevant to 
Overall a noticeable 

shipping industry More c

alliances with each other 

Consequently shippers port

being affected by this trend 

around these carrier alliance

Cargo volume in the 

improvement as US liner i

percent while exports incre

conditions shifted the liner 

exports for the first time sin

COSCO Kawasaki Kise

entered the trade as nonconf

space charter and cooperativ

Hanjin Shipping Co Ltd pla

Conference Agreement TAC

operating in the trade as an ind

plans for DSRSenator Hanj

into its own operations Als

enter the transatlantic in 1998 

by Neptune Orient Lines Two 

Services Ltd and Cast Line 

conjunction with Lykes Bros 

On regulatory matters 

collect information and comme

transatlantic carriers concerni

Europe attempts to resolve the 

Statement of Objections agai

rejection of TACA ssettleme

statement or a final decision e

will be resolved in the Europe

U S imports from the 

fiscal year prompted by a stro

Italy and Spain Exports to the 
including Turkey Italy and S

agricultural products An e

falling freight rates led to 

America Conference and th

agreement the United State

Trade between the US

sporadic growth in the latter 

Oman Saudi Arabia and 

United Arab Emirates Sau

violence and a breakdown o

economic stability and grow

U S imports from A

1997 and US exports ros

conditions prompted some 

while a sharp decline in fre

from the American West Afr

facilities and chronic cong

trade although some port im

Economic reforms a

liberalization continued to s

and Latin America Gain

machinery equipment and 

such as paper fabrics and 

imported from Latin Ame

overcapacity prompted ca

actively entering into v

cooperative working agree

The volume ofUS 

fiscal year 1997 but was 

outbound direction carg

depreciation of Asian curre

exports at a competitive 

Agreement activity among 
overcapacity competition be

carriers and concerns ove

deregulation After filing an 

capacity management pro

Stabilization Agreement w

Commission requested addit

ofthe AsiaNorth America E

service contract procedures t

into contracts with shippers 

ofChina PRC or China 

outbound discussion agree

Stabilization Agreement as a 

implemented rate regulations 

foreign trades through the 

regulations are not applicable 

PRC

B RESTRICTIV

One of the Commissis

eliminate protectionist practic

domestic companies and disc

ocean shipping The Commis

attaining this goal consistent

to the satisfaction of affected 

The Commission activ

effects of restrictive port p

retaliatory action this past fisca

voyage fee on Japanese line

Commission issued a final rul

April 14 1997 The most pro

consultation system which 

negotiation and preapprovals 

operational activities This s

Japan Harbor Transportation 
found suppressed competitio

its detractors and otherwise im

conditions have resulted 

inefficiencies

The final rule was 

diplomatic resolution but 

September 4 1997 Fees 

carriers with the first paymen

carriers advised the Commiss

fees owed and in response th

to bar or detain Japanese ves

highlevel bilateral negotiatio

contained a far reaching c

practices In light of these de

15 million in compromise o

month of September from th

will continue to monitor deve

is prepared to act should it be

The Commission con

from shipping lines serving B

preclude USflag carrier ope

and restrict US carriers 

between Brazil and other Sou

fiscal year 1997 the Commis

and cargo preference legisl

disadvantage UScarriers re

fiscal year 1998 the Commis

is appropriate concerning the

The Commission also 

trade The Chinese had co

consolidation services in 

subsidiaries and the Comm

assure that this commitment 

is reviewing the establishme
which is a combination fre

PRC The Commission is 

carriers

ensure that the Exchange 

C SU

The Commission m

ensure continued compli

requirements These efforts 

discriminatory trade practice

of compliance or enforceme

This past fiscal ye

reporting rules and regulatio

1984 Act The new regulat

form and instituted new req

monitoring reports The new 

into three classes depending 

share The monitoring rep

include market share car

Commission classified over 

notified the parties of the

monitoring report requireme

Other major monitor

fiscal year 1997 included 

regarding the Commission s

of a carrier agreement propos

program in the inbound tran

successful effort to elimi

Commission orders concer

certain carriers in the North 

alliances in ocean shipping a

practices of a controlled carr

trades
11 EN

The Commission s

obtaining compliance with 

equitable trading conditions 

in unison with our ongoing 

achieve these goals

In fiscal year 1997 th

the former Bureau ofInvestiga

Counsel into the new Burea

enables closer coordinatio

prosecutorial units and facili

initiatives or programs desig

The Commission als

district offices the last three 

We have maintained a pre

Orleans and Seattle thr

representatives serve the oth

centers within their respectiv

Commission and the mariti

intelligence and assessing in

In fiscal year 1997 

malpractices by ocean carrie

transpacific trades where 

measurements were a sig

malpractice investigations in 

and Caribbean trades and 

settlement agreements reac

through periodic reports 

conferences members T

formal investigations in 199

among carriers in theUSNo

were the outgrowth ofan ea
Commission directed at pos

TACA and its members

The Commission col

penalties this past fiscal yea

in several trades Settlement

maritime industry includin

forwarders and NVOCCs 

actions that result in unfair 

competition Voluntary com

assessment ofpenalties is use

violators who knowingly ign

E CONSU

The Commission co

timely and responsive to the 

initiatives to improve consu

requirements eg the Sma

Fairness Act SBREFA t

this past fiscal year

The Secretary sOffic

and Complaints and Dock

responsible for public ass

regarding docketed proceedin

readily available from the S

deal of this information was 

home page This has signific

obtain routine information or 

to its home page as time goes 

serve as the agency sombud

office responds to routine in

aggrieved parties and serves 

informal disputes The Off

beyond the strict limits of th
assisting the cruising public w

voyage or with a certain opera

over3000 consumers and inte

obtaining 158 964in moneta

The Commission sare

the public throughout the regio

questions and serve as liaisons 

past fiscal year they helped m

release of cargo provided reg

the industry and informally 

formal procedures

The Commission con

unscrupulous or illintentione

of aggrieved parties in their ef

monetary reimbursements 

extensive advice to the crui

uncertified operators and exp

obtaining refunds from failed 

Commission also establishe

businesses to achieve complia

program began in fiscal year 

refined and fully operational 

F TARIF

The Commission sa

tariff matter to be created on t

to the Commission sAuto

System ATFI by discre

through a batch filing proc

since 1994 and permits the 

tariff environment
At the end of fiscal 

for batch filing The Comm

in fiscal year 1997 and clos

system This is an increase 

year Additionally the C

service contracts in fiscal 

increase from the prior ye

service contracts which re

tariffs and all essential term

24hour basis to the 4809 en

Commission continually add

ended the fiscal year with 35

The Commission 

Understanding MOU w

domestic offshore tariffs in 

trades was transferred from 

The MOU permits these tar

sets up specific protocols fo

Commission continued to off

operation and use of the A

contractor for STB on domes

annual STB reimbursements 

the FMC incurs

The Commission als

with its present contractor 

system through September 

determined to defer recom

refinements and enhancemen

given our budgetary constr

action to alter present tariff f
SURVEIL

ENFO

A SUR

The systematic sur

commercial conditions in the 

the Commission sresponsi

surveillance helps ensure tha

comply with the statutory 

requirements of relevant Com

Commission administers a va

research activities designed 

conditions emerging comm

service activities

The importance the 

monitoring activities is a dire

the 1984 Act of the Comms

disapprove agreements The 

under relevant statutory a

Commission shall become eff

30th day after notice in the 

Agreements can be rejected 

include statutory provisions 

Commission may extend the 

information from filing parti

Finally if the Commission d

of a reduction in competiti

transportation costs or decre

injunctive relief in the US 

Columbia
As a consequence o

block agreements from takin

evaluation of post impleme

considerably The Commiss

an evaluation through its 

including market share con

and service conditions as w

service contracting activity 

In fiscal year 1997 t

Analysis prepared a variety 

activities and practices of ca

trades Projects included 

regarding FMC sanctions on 

Docket No 9620 Port Rest

StatesJapan Trade 2 an a

to reinstitute a capacity m

transpacific trade 3 Com

violations by certain carrier

carrier strategic alliances in o

ocean freight rate trends and 

6 an economic analysis o

carrier in the transpacific and 

analysis in support of a 

8 classification of agreem

requests and data submissions 

reporting regulations

B EN

The 1984 Act esta

regulation of the shipping and 

statutory declaration of po

efficient and economic ocean 

international trade ofthe US 

a major area of Commission 

is to achieve compliance w
Compliance in turn provides 

of the 1984 Act Enforcem

compliance through deterrenc

Fiscal year 1997 was 

Commission snew Bureau o

merging the former Bureaus o

The new Bureau provides 

investigations and prosecutio

these two related functions

The Commission ma

Miami New Orleans and S

based in each of those cities 

other major port cities and 

respective areas Coverage 

responsibility of the Bureau s

Cooperation between 

and the US Customs Serv

exchange of investigative inf

both agencies and recently 

permits Commission perso

determining which entities sho

1984 Act

During 1997 the C

extensive malpractices partic

measurements in the transpa

subject of malpractice investig

Central American and Car

included improper shipper pr

rebates and absorptions 

misdeclaration of measureme

for untariffed and unbonded 
1

During fiscal yea

943 39 04in civil penal

different segments of the i

shippers forwarders oper

Appendix E
DEVELOPM

USFOR

A TRA

In fiscal year 1997 li

and North Europe improved s

results Fueled by sustained 

firm USdollar relative to cer

imports from North Europe re

consecutive years of contracti

from North Europe jumped 14 

growth over the 6 percent 

increase in liner imports c

including automobile parts 

beverages from Germany w

Norway and Iceland furniture 

goods from Finland Declinin

the USsupported demand fo

a 15 percent increase in impor

second quarter of 1997 So

among certain European Unio

support a sustained recovery 

years Yearend projections 

volume ofUSimports from 

After last year slu

beyond previous forecasts US

momentum during fiscal year 

percent increase in liner expo

percent gain Contributing 

competitiveness ofUSgood
productivity In addition th

the competitiveness of Eur

created greater demand fo

Increased paper output by Fi

surge in the demand for U S 

coated paper Resins and s

to Belgium while medical 

related goods logs and lumb

United Kingdom UK 

included logs and lumber to 

to Sweden and frozen fish 

expected to outpace Asiabo

economic recovery in Germa

UK Norway and Finlan

continue to generate demand 

expands its manufacturing ba

inputs is expected to cont

percent increase in the volum

Usually the inbound 

stronger ofthe two trade legs 

towards an overall balance 

imports During fiscal year 

USliner cargo exports to No

by more than 15000 TEUs 

volumes were better than ex

reporting favorable utilizatio

Favorable rates and tr

trade over the last several y

solidarity and relatively slow 

a number of carriers not y

operators China Ocean Ship

Kaisha KLine and Yangm

in mid February 1997 toget

conference service through 

cooperative working agreeme
232 011562 Their entry int

both shippers and incumben

conference carriers refrained 

actions taken by the newco

selected service contracts an

Contrary to earlier e

Agreement TACA No 

overall market position and r

by the entry of the new inde

growth during the first halfo

growth during the normally 

marketshare losses and hel

new services Neverthele

continued to decline during t

fell another 4 percentage p

market share fell 2 percentag

In addition to the add

the non conference tripart

uncertainties for TACA T

from TACA in the wake o

GmBH currently a TACA m

concern Hanjin is schedu

December 31 1997 and th

carrier service in the trade 

independent carrier and its 

TACA will certainly face m

Further competitive pressure

the trade by APL Ltd forme

acquisition by Neptune Orie

Reports indicate that APL i

partners a strong presence in 

Industry sources also indic

adding an unspecified amou

that could upset current cap
Added competitive p

1998 is also anticipated from 

Ltd CP Ships which is a

the Canadian trades After 

USflag carrier Lykes Line i

conglomerate consisting of 

Lines Contship Container 

operating alongside Canada M

of services are developed dur

and Gulf Coast ports and ma

In October 1997 TAC

1998 Business Plan For 199

and eastbound tariff and se

120 FEU This represents a

1997 rates Given the pote

carriers into the trade as w

changes during 1998 it is un

implementing this rate increa

During 1997 the C

connection with its inquiry i

among carriers in the transat

formal adjudicatory proceedin

may be in violation of the 

failing to file true and comple

agreements or by operating un

with the Commission Th

documents and information 

agreements in these trades T

Commission ssection 15 ord

members inquiring into pos

chartering in the transatlantic 

the close of fiscal year 1997

In addition to the Coms

its members activities TACA 
the EC The EC issued a fo

TACA in May 1996 allegin

through its service contractin

on inland European tran

concerning equipment exch

freight forwarder compensat

were prepared to publish a s

but delayed that action wh

efficiency of its inland transp

attempts to resolve the ECs 

with the EC rejecting TACs

now resume both in court 

proceedings It is expected 

Statement ofObjections refin

in early 1998 The case th

courts

The dispute concerni

EC to lift TACA s and 

Agreement TAA immun

is now before the Court ofFi

in this case are reportedly pre

date for the first hearing has 

Complicating matter

European rate fixing by shi

law The court action co

authority of TACAAA h

decision has been made on 

Kingdom North Continent 

The SUNAG decision could 

resolve similar cases now 

TACAAA Oral arguments 

Advocate General and a de

Europe shighest court decis

final and not subject to appe
B MED

The Mediterranean 

downswing in 1996 due to a 

demand Export shipments f

the first half of 1997 as the e

began to rebound The Italian 

lira has propelled exports a

pushed inflation down to th

Monetary Union Low i

outlooks are also stimulating 

from the region to the USha

of 1997 as the USeconomy 

Trade from the Medi

quarter 1997 Robust deman

Spanish peseta stimulated a 

goods namely furniture veg

gainers Imports from Italy 

gain with Spain supplying 

expected to grow 17 percent b

in Italy and Spain will contin

Exports to the Mediter

quarter of 1997 An expoled

rising cotton demand in Tur

Turkeybound traffic which 

increase was dominated by c

the growth in Italy and Spain 

15 percent in 1997

Competition in the l

intense that the conference in 

Conference SEAC No 

market share and falling ra

consensus on steps to improv
demise of the conference se

AP Moller Maersk Line a

agreement The United State

011587

C MI

The economies of th

anemic with the exception o

slowdown in growth with risi

production remains strong pa

electrical sectors Economic 

Privatization is gaining mome

economy As a result foreign 

a 10 percent drop in oil pric

economy and growth is exp

economy is so dependent on 

Imports from the M

However there was a pickup 

posting a 12 percent gain in 

increase in import traffic cam

the nonoil sectors should ke

Growth from Saudi Arabia 

recovered beverage cans 

number of sectors such as 

violence in this region thre

growth and is reflected by a 

USexports to the M

was an increase during t

counterbalanced a drop in t

Arabia and the United Arab E

Furniture was a strong mover 

exports were also strong thro

crop and intensified marketing 

showed a minimal gain as th
economic growth in the cou

region continues to decline 

the US combined with 

producers at a disadvantage

D 

Growth rates of A

domestic product were very 

had positive growth rates bu

percent Countries with high

with 5 percent and the Ivory 

Nigeria had rates of31 and 

fell below last year srate of

International financia

in financing development pro

The World Bank and its a

Association approved loan

projects This was a sha

274 billion Lending by 

amounted to 385 million for 

loaned in 1996 However d

percent from 1996 to 21 b

private investment worldwid

Trade between the US 

1997 Imports from Africa 

over 17 percent from 1996 E

86percent over 1996 to 1133

Ivory Coast were the main 

continued to export mainly h

spare parts electrical and 

equipment and supplies
New shipping servic

toUSEast Coast service by 

also started a new container 

North America South Am

OT Africa Line added a th

resumed calls at Monrovia 

ofthe civil war Safbank Lin

service to Southern Africa 

agreements with forty cou

expected to increase

Freight rates espe

dropped considerably below 

Maersk reduced rates by an 

followed its lead Port t

trade for example were re

Toward the end of fiscal 

Freight Conference No 

apparently due to differenc

action members frequently 

African ports cont

because of congestion poo

some improvements were 

145 million from Felixst

under an agreement with th

Ivory Coast the port auth

refurbished its terminal at a 

E LATIN AMER

After a period of slo

return to moderate growth i

began growing strongly du

expansion and liberalizatio

America meant strong US 

chemicals Increased man
paper and paperboard fabrics 

incomes increased electronic 

east coast of South Americ

restrictions on Argentine 

opportunities particularly im

refrigerated cargo Bananas a

for the majority ofUS impo

northern South America have 

melons fruits and vegetables 

The growth in perishab

was partly the fruition of 

development and impleme

technologies These technolog

of fragile but high valued cargo 

from Guatemala as well as an 

from the Dominican Republic a

America Longer refrigerati

controlled reefer containers hav

on vessels destined to continu

carry cargo destined to both t

achieving better vessel utiliza

benefit back to shippers in term

have increased the quantity 

dramatically increase the numb

trade Some carriers have gon

in some cases to build new sp

area Agreements containing p

Europe and South America incr

than the exception in the Atlan

Brazil is the largest Sou

USaccounting for more than 

50 percent of the exports to the 

growth to Brazil mirroring the 

1996 but regained speed in 199

but recovered and began to gro
Another major deve

involves the improvement o

regarded as a watershed even

ofSantos Brazil slargest co

at present the cost ofmoving 

to be 500 with vessel wa

during periods of heavy co

improve conditions at the 

handling cost and eliminate 

On the west coast o

development and modernizat

as the principal port serving B

the port of Callao Peru s

concession to a private termin

port scapability from 250 00 

Central America ha

Evergreen Marine Corpora

Coco Solo near the Caribbea

Maersk has opened the Ma

Caribbean end of the Cana

carriers to split their Caribbe

feeders Cargo which previo

able to be transshipped as so

shippers time and lowering 

The Caribbean port 

offering strong competition 

especially for transshipmen

owned and operated the po

US status which allows fa

and its geographic location 

Freeport appears to be attrac

from the USports For exa

MSC a recent entrant i

with 12 to 14day sailings u
Freeport Similarly a five

active in the UStrades has 

2400TEU vessels between 

America Given the expansio

and Europe there appears to 

cargo to pass through Freepo

or Jacksonville

APL joined with t

American Transport Inc to i

South America service Initia

Sailing Agreement No 203 0

but it was extended subseque

vessels instead opting to use 

Maersk and SeaLan

Transroll Sealand Joint Serv

No 232 011500 when the J

the scope of their service to 

forming the USEast Coast 

011583 which allows them 

non binding basis In an effo

transiting the Panama Canal M

the Maersk SLVCL Agreeme

Container Lines to coordinat

Caribbean Central America 

initiated a triangle service betw

the east coast of South Ameri

Transroll formed a new 

Transroll Navieras Express 

service Grupo Libra Naciona

203 011590 with Grupo Li

parties will use six 1200TE

coast of South America weekl
Columbus Line and 

to form a US East C

ColumbusAliancaIvaran Ag

also added a new 136TEU 

service This is a smalle

significantly more refrigerat

Empresa Lineas Ma

government carrier has pul

vessels four 1220TEU c

East coast of South 

throughout 1996 but began 

the third quarter rates were 

southbound Historically 

Brazilian trade flows such th

normally would increase Ye

made available by carriers du

available Furthermore th

IAFC No 202 009648 

ofMSC into the trade as an i

discounted rates for NVOCC

150TEU and 300 FEU ra

merchandise and FAK cargo

Rates to and from 

declined In an effort to incre

ofSouth America Agreemen

ofSouth America Discussion 

011426 agreements coveri

Gulf Coasts and the west 

amendments authorizing th

cargo under their individual 

South America Independent 

new agreement made up of 

WCSADA and the South Am

202 011465 filed amendm
and agree on terms and con

aggregating contract volum

conjunction with members 

were intended to permit t

additional service ofbeing ab

have that cargo volume coun

in the shipper sservice co

offering was a 300 rate in

additional service at the 30

carriers to break ranks and 

certain cases rates actually 

proposed 300 rate increase

Similar to WCSAD

Maritime Association No 20

Carrier Agreement No 20

their members to discuss an

service contracts including 

their members and members 

to which they are a party the 

203011383 and the Colom

011367 These discussion a

their non conference membe

members of the above confere

aggregation option had not b

fiscal year 1997

In March 1997 the 

Southeastern Caribbean Agree

to the Commission srequest f

amendment to the agreement 

independent NVOCCs in th

NVOCCs to use only conferen

deleted the pertinent languag
F TR

The transpacific trad

export markets in the USa

terms ofvolume and rate lev

volume accompanied the 19

into the start of 1997 How

rebounded due to lively US

the carriers growth expecta

previous year but appears 

volumes and rates which ha

as a result of devaluations 

goods more expensive

Organizationally t

Japan United States Eastb

No 202 011528 which co

sub trade and the AsiaNor

ANERA No 202 010

the Far East to UStrades a

The membership of the two 

addition to these two co

composed of the members o

non conference carriers that 

Transpacific Stabilization A

a discussion agreement It 

coordination between the co

trade The TSA has a mark

the inbound transpacific tra

The organizational 

export trades is similar 

Westbound Rate Agreemen

membership is essentially th

whose geographical scope co

Indian Subcontinent The 
conference lines is the W

Agreement WTSA No 

almost identical to TSA se

not a member of WTSA Co

been in the 80 percent range

Until September 19

COSCO that did not part

discussion agreements altho

prices independently of thes

COSCO joined WTSA w

agreement smarket share to 

For carriers operating 

fiscal year 1997 began with 

recovery with increased vess

additions in early 1997 and 

combined to continue rate e

increase of100 150 FEU

in contract negotiations with 

The westbound tran

relatively strong cargo volum

fortunes in 1997 The revers

commodity exports ie wast

metal as a result of increa

competitors Currency deva

US goods relatively more 

exported

Three factors often cit

levels in the transpacific trade

concerning the deregulation 

competition between conferen

the closing of the service diffe

has reflected these factors 

reinstitute the capacity manag
suspended in 1995 The FMC 

the agreement parties conce

discussions with them regar

consequences of this propo

amendment reinstituting the 

ANERA amended its 

more flexible and more cond

that agreement now allows tw

service contracts with shipper

and permits crediting of ca

ANERA service contracts s

Several agreement fi

carriers operations One of 

in late 1996 that it planned 

Senator and filed an agr

coordination and rationaliza

trades The parties continue t

year the Singapore carrier N

American President Lines a 

two carriers to use space on 

becomes final the carriers fil

Cross Utilization Agreemen

transpacific trades The merg

fiscal year 1998

Given trade conditi

inbound transpacific trade

Commission continues to foc

COSCO a PRC government

has been one of a handful o

rates and for a number of pa

carrier COSCO competes 

independents in the transpac

itself as the carrier with the 
G W

Fiscal year 1997 wa

change in the liner industry at 

of conferences and discuss

overtonnaging expansion ofm

new trade lanes and perhaps 

changes to conferences abil

affected considerably both 

conferences

Most notable among 

consolidations that included Ns

Lines Hanjin spurchase of a 

CP Ship spurchase of Lyke

merger consolidation and its 

Alliance and APL NO sla

Alliance created new lineup

strategic alliances Hanjin sp

cemented its dominance of th

Shipping Co

The new Global Allia

APL NO Mitsui OSK L

Merchant Marine Co Ltd Th

independent operator Orien

original member of the Globa

Alliance

At the same time that m

were concentrating and reorde

occurring at the conference an

Two years of rate decreases 

average revenue decline of 75

in rates have raised questions 

transpacific rate conference 

changes in the TSA a disc
conference and non conferen

of about 85 percent of the tra

suggest that high marketshar

at least in the transpacific tr

cooperation among carriers

The transpacific trad

conferences experienced sign

solidarity In the Mediterrane

of its members to form a n

American trades new entry an

lines led to rate reductions 

conferences ability to sup

diminishing and tradewide 

memberships have formed In 

Africa Freight Conference wa

end of the fiscal year

Despite the entry of a 

by COSCO K Line and Yan

it will leave the conference at 

directional conference TAC

continues to be the case nex

announced capacity increase

trade as they are generally e

Much of 1997 s me

conferencelevel instability ha

overtonnaging in key trades 

global expansion in others 

to legislative proposals that 

Act s service contracting 

legislation underwent severa

Senate version was not introd

respect to regulatory changes 
Nevertheless a numb

that even absent passage o

already responded to poten

virtually deregulated marke

case fiscal year 1997 did see 

to conference service contra

shippers with 3000 or more 

directly with their preferred c

contracting activity Also 

suggest that NVOCCs are 

environment among confer

previously

Considered from a g

extremely prominent in fisc

direct Chinese governmental 

centrality of China to internat

and growing import mark

expanding network of contai

the world spremier trade grow

carrier service to China and 

within the country expanded 

China socean connec

COSCO long a strict indepe

WTSA the westbound tran

TWRA members and the inde

Asia

Also growing howe

direction of China s mariti

particular the Shanghai Shipp

rates in the ShanghaitoEuro

greeted with strong disappr

organizations Minimum r

China UStrades because ac

tariff filing and enforcement re
adequate regulatory mechanis

legislative proposals to end t

presumably some aspects of 

would cause China to impose 

remains a source of concern

AUTOMATED 

INFORMATIO

A INTRODUCTI

The 1984 Act requ

foreign commerce of the 

inspection their tariffs appl

Act also requires that service 

terms be made available to th

app 817 and 1707

A freight tariff filed 

of rates charges and rules a

by a carrier or conference A 

between shipper sand cas

tariff Mutual commitments 

shipper guaranteeing the car

period oftime in considerat

certain rate and service leve

Additionally termin

persons engaged in carrying 

dock warehouse or other t

common carrier by water 

commerce

The applicable statut

the Commission to ensu

standards before tariff mat

service contracts may be rej

meet certain statutory and re
compliance with the law the 

for not filing or ifproperly 

of a tariff or the essential te

USCapp 812 815 81

The Commission use

for surveillance and investig

raised by private parties For 

any court case the tariff or 

Commission and in effect is 

charge or rule While tariff a

for regulatory purposes the s

provide rate information 

competition and to facilitate 

All such tariffdata is filed w

Prior to implementation of t

receiving up to a million pap

The enormous amou

process with a limited numbe

technology as a means of alle

the government and the shipp

of this subject area by the Co

studies beginning in 1981 an

year 1983

B EARLY ST

The Commission cond

of the premises upon which 

The study contained three 

Conunission analysis interv

ocean freight forwarders an

conferences
The overall conclu

retention of the requiremen

in the maritime industry 

modernization particularly 

conducting this threepart 

internal study of the impact 

itself

With the results 

Commission explored the i

carriers conferences f

transportation service firm

overall belief that implem

overdue

C FIRST STEP I

Recognizing the need 

automation the Commissio

were interested in deve

November 14 1983 the C

Business Daily a Notice o

Paperless Federal Mar

Storage and Retrieval Syste

were received The comm

legal and policy nature w

proceeding

D THE SH

On March 20 198

though the continued need f

questioned by certain govern

during hearings on the Act 

file and abide by tariffs S
alternative to a tariff Whil

filed confidentially with the 

to be filed with the Commis

the general public

E THE TARIFF AU

In August 1984 a sp

formed to gather additional 

questionnaires to ocean ca

forwarders and shippers on 

improve the process

At about the same tim

house survey was conducte

needs for tariff automation 

In August 1985 th

TariffAutomation A Functio

the results of the 1985 ind

described the problems wit

Commission sneed for autom

and the objectives of an auto

The report recomme

to evaluate the technical a

including a market analysis o

the likelihood that the Comms

report concluded that the fea

since the Commission lack

Because the Commission n

were unbiased thorough 

consultant in August 1985 

provided that the consulta
feasibility study contractor 

the pilot or operating syste

F ATFI FE

TARIFF A

THE ATFI AD

The Commission en

of understanding with the G

in August 1985 for the deve

in a contract for this task w

Early in 1985 the 

importance of not only so

arena the opinions of all 

automation of tariff filing 

provisions of the Fede

Commission sATFI Indust

Candidates for mem

The nineteen industry mem

carriers three steamship co

forwarders and the Natio

Association three ports a

Authorities two exporter

Association of Exporters a

firms and the Information 

The critical objecti

established as follows

To allow ea

formulate a

process of a
To educate ea

about the nee

such a proce

To investigate 

and foresee

technology to 

Then if fea

compromises 

industry seg

acceptable an

The ATFI Advisory 

between January and Novem

input to and reviewed th

Contractor The final repo

principle by the Advisory Co

In summary the Feasibilit

Commission tariff processi

requirements and also ident

The functions and 

identified in the study have 

backbone of subsequent effo

The Feasibility Study 

Tariff automation app

maritime industry and 

appears to be politica

tariff automation app

when balanced agains

practical limits in the 
G BENEFIT 

PROCURE

In October 1987 a B

a commercial contractor and 

of the project This analy

Management and Budget 

delegation of procurement a

from GSA

H INQUIRY ON T

ATFI and PRESOL

In December 1987 th

request for proposals RFP 

vendor community on the 

Commission sought public c

of the system in a first ATF

The purpose of this o

the regulated community an

aware of the Commission sp

were requested from other 

functionality of the proposed 

set forth in the NOI has rem

The electron

Commission is seeki

the contractor scentr

at the Commission 

retrieval The format 

is being developed 

Transportation Data 

emphasize tariff lin
under the present sys

equivalent to commo

and can be amended 

entire revised page

As recommen

Committee standardi

will not be mandated 

have the capability t

appropriate time The 

terms of service cont

Full implemen

to allow commercial 

Exemptions at least 

types of tariff filers w

the electronic system

The system w

existing computer equ

full connectibility F

by using asynchronous 

in with a modem to th

software will provide 

tariff information is 

provisions are comp

officially on file Su

able to electronically i

as a rate increase o

problems for which re

or conflicting tariff pr

by Commission staff 

Commission level 

however will facilitat
The ATFI sy

mechanisms to protec

Tariff filers w

materials by remote a

carriers or conference

or conference will be 

appropriate item can b

can also continue to be 

filing egby direct 

tariffs on instruction fr

paper tariffs into ele

encourage commercia

who may find it diffic

Once the tar

Commission will down

formatted onto comp

person at the relati

dissemination This w

duty of providing cop

In order to keep up 

changing freight rates 

interested persons mus

frequently The Co

service to provide this 

The Commissi

processing of the tariff 

competition with com

that those services w

facilitate their valuea

however must use 

internally for investig
and will continue to u

added services of com

In order to ca

making tariffs and 

available for public 

continue to have a pu

in Washington DC 

terminal on which in

brought up on the sc

rates and rules Pa

available upon written 

courts and other tribu

over historical tariff 

December 22 1987 

The Commission also 

RFP that remote access to t

would be available any tim

information by any intereste

While the Commissio

the proposed features and 

system a draft RFP was iss

and individuals on the bidd

questions on the proposed c

presolicitation conference 

questioning

In April 1988 the C

Automation Inquiry 53 Fed 

for the features and function
I REMO

While the Commissio

RFP it became aware of 

Subcommittee on Informatio

concerning the functionality o

intended to allow the shippi

access to an individual tarif

give access to one tariff at 

sophisticated searches Ques

an apparent perception that 

existing or intended valuead

firms In June 1988 

commitment to tariff automa

system on hold to resolve t

Reg 22048

During the period Ju

reassessed the functionality 

area of remote retrieval T

officials of Congress and the 

were made to the RFP to ref

requirements In October 

200 potential offerors a se

technical revisions Howeve

about the questions on remot

After much analysis 

decided in December 1988 t

with remote retrieval In its 

Inquiry the Commission sta

The controll

functionality of its 

properly considered a
as 1 the system 

members of the ship

privatesector inform

believes it has

In October 

heard of any comp

privatesector contra

of the Feasibility of 

report accurately des

ATFI system in terms 

firms to fully under

proposals This publ

by the Commission s

time and there were 

More impor

Commission and the 

Study Report suboptim

as an accommodation 

Accordingly 

allow the general 

rudimentary retrievals 

of the data

In considera

Commission and the 

properly perform thes

appeared reasonable 

The shipping 

modern technology b
tariff data on a lim

services the utilizat

filing and retrieval 

efficient tariff filing a

competition and facili

Accordingly 

Commission believes 

policies and conflicti

system and has struc

functionality of ATFI 

Study and as further 

1988 53 Fed Reg 57

J CONTRACT AWA

After receiving many 

RFPs and after resolving 

Commission issued a final 

potential offerors on the b

received in March 1989 and 

effectiveness

On August 8 1989 

Phase I System Concept inc

and Phase II System Desig

PRC Inc or Contractor 

Data Exchange International 

which had the best technical 

contract for the 5 year syste

subsequent Phase ie D

Operation and Fullscale O

approximately 7M with th

Phase I began on September 
the Contractor finished Ph

Development and Testing

The system Proto

1990 As required by th

existing software being deve

was any that could be incor

to improve it The surve

package one being develop

requirements of the system 

and the Commission ident

technology that could imp

change was the substitution 

originally planned mainfram

provide sufficient capaci

friendliness The Contract

containing the desired cha

Authority was obtained from 

Since DXI contempla

its proprietary software it 

the software to the Comm

cosponsor approach unde

FAR at 48 CFR 24

enhancement and relinquishm

Thus the new contractual a

in this software through lice

Commission in turn has 

accepts the software and 

documentation source code 

Under the license a

copyright notice as foll

International Inc Unpub

copyright laws ofthe United 
5222714 The Commission 

any other commercial prod

contract requires any comme

affiliate of the Contractor to 

performance Accordingly t

encouraged by the FAR 

Commission scontractual 

language in H Rep No 31 

addition the Commission in 

take all appropriate steps to 

precluded from gaining an 

companies in the provision o

1990 the contract was modif

The last optional pha

towards the end of fiscal year 

elected to continue its contrac

limited basis while it consid

select a contractor to design 

ATFI system Accordingly 

of the PRC Inc contract that 

of the ATFI equipment and ot

began the process of develop

contractor to design and deve

K DOC

On August 1 1990 t

9023 in which it issued a se

Proposed Rulemaking reques

of the basic features being co

impact current paper tariff p

Commission issued a first I

comments received and resol
On March 25 199

Interim Report that respond

filer firms which had ra

Commission sfiscal year 1

Subcommittee on Merchan

Merchant Marine and Fish

concerns were submitted to 

The Second Interim Report 

The Commission sT

was issued on July 23 199

issues listed in the August 1

Rulemaking could be issued

The proposed rule in 

Contracts was issued on Sep

as a new Part 514 of Title 46 

being October 31 1991 P

part covering tariffs and 

Commission selectronic sy

the filing of paper tariffs and 

the CFR ie Parts 515 52

Still further commen

session was conducted by the 

of all the comments the Com

an interim rule of August 1

interim rule addressed three 

The Harmon

was changed 

preferred 

rulemakings
As suggested 

terms of serv

text vis vis 

rule with so

rule number

developed afte

the public

Algorithms ne

possible asse

not pre deter

the algorithm 

option for lin

Items ie 

linkage Un

terms no alg

Further comments 

publication As a result of th

Amendments were issued on 

effective on February 3 19

Interim ATFI Amendments wa

filing essential terms so th

format

L BATCH 

The proposed refine

issues contained in the fisca

required revision of the File T

Tables transaction set o

NOI in Docket No 90 23 als

not make available to the pu

distribute file transfer formats 

filing guide to facilitate form
if privatesector firms de

software

Accordingly the fir

Docket No 9023 appen

containing among other 

formats data dictionary an

issuance the Batch Filing 

to reflect major system im

attempting to provide the 

such changes as possible 

such as the ATFI Fundam

when necessary and made 

process is expected to cont

M MISCELLA

Certifications of firm

late fiscal year 1992 There 

On February 11 1

ATFI implementation prev

have to be postponed as a 

FMC headquarters offices 

would take place in August 

Order in Docket No 9023 

a new implementation sched

by trade areasoperations o

The implementation 

1992 at 57 Fed Reg 599

1993 at 58 Fed Reg 352

official tariffs be filed elect

year 1993 Carriers 

WorldwideAsian South 
first followed by those in the 

trades the North AmerCaribb

America trades Terminal o

offshore trades filed last F

beginning of the electronic 

service contracts

Many filers were no

periods and were granted 

petitions representing 219 c

which were granted enabling 

Even with the extensions h

target December 31 1993 

should be in compliance 

Commission schedule found 

cause why their tariffs sho

timely in ATFI format The 

order on this matter ear

approximately 310 carriers 

failure to file in the new ele

During fiscal year 1

ATFI system This figure d

were filed in the ATFI system 

fiscal year there were 4738 

increase of 72 tariffs compa

new tariffs has leveled off s

conversion from paper to th

Additionally all esse

into after November 22 199

Commission received 10565 

1997 which represented an 

the prior year And the p

continued its increasing tre
amendments received this 

increase over the number fi

service contract essential te

basis to any of the 4809 in

government agencies registe

of ATFI registrants increased 

The Commission has 

by routinely and systematica

issuing press releases and 

Commission also continua

system and ended the fisca

database Additionally AT

many documents the Commis

on the Commission sInterne

In fiscal year 1996 t

affording filers the option 

service contract which incorpo

in the electronic essential te

reduce Commission and carr

the Commission srecords 

filers has taken advantage of 

During fiscal year 1

MOU with the STB regardin

tariffs in ATFI Legislation 

jurisdiction over the US do

to the STB The MOU perm

in ATFI and sets up spe

administration The FMC als

on the operation and use o

particular aspects or actions r

The Commission remains the 

and continues to deal with t
behalf of the STB The MO

reimbursements to the FMC 

incurs

The Commission als

ATFI contract in fiscal yea

maintain the system thr

Commission sbudgetary co

in certain services and main

from operating at optim

accessibility and effectiv

compromised Recompe

refinements and enhancemen

continues to be held in abe

and the possibility of legisla

requirements

N UPDATE O

SEPT

Since 1986 during t

members of the public e

accessibility of the ATFI sy

more detailed description 

Annual Report of the Federa

material was to be made 

Commission sATFI system 

compete with private sect

Congress expressed these c

101 92 which provided th

reasonable controls upon the 

any one person
This statutory restrict

in HR Rep 173 to HR 

Commission sfiscal year 19

In implementing 

Commission to deve

ATFI will not com

information services 

Study recommended 

only rudimentary with 

addition the proced

provide that the use

limited number of ite

In response to this dir

for remote retrieval of tariff 

filers in the following two r

1 A tariff retriever wo

individual tariff per conne

and

2 A tariff retriever wo

as 30 minutes per connecti

These restrictions w

preparation for the planned 

indicated herein implementat

because of the relocation of th

In the interim on November 

No 102582 section 502 o

repeals the statutory restrictio

Pub L No 101 92 The m

are as follows
a The Commiss

data without time quantity o

b A direct acce

retrieval and

c A secondary 

use of tariff data maintained 

tariff information obtaine

Commission This seconda

September 30 1995

The Commission imp

102582 by publishing regula

that wish to obtain the ATF

collecting secondary user fee

use fee provisions on Septem

have direct access at a cos

secondary use of tariff data 

THE FORE

PRACTICE

A 

The Omnibus Trade 

enacted by Congress and eff

August 23 1988 contains 

Shipping Practices Act of 19

The FSPA directs 

conditions affecting UScarr

which conditions do not exis

under US law or as a res

providing maritime or maritim

During fiscal year 

potentially restrictive practic

China which may warrant ins

FSPA or other statutes The

access intermodal services fo

China and Brazilian restrict

with other South American na

of non Brazilian vessels in th
B TOP TWEN

TRADI

Section 1000g 

Competitiveness Act of 19

annual report to Congress a 

generated the largest volume 

recent calendar year in bilat

The data that the sta

top twenty partners were f

Census Census data dist

dry cargo service Census 

service offered by a regular 

itineraries and sailing sch

predetermined and fixed 

Commission are intended 

accordance with this definit

The export data a

Export Declarations while 

import entry and warehouse 

required to be filed with C

forwarded to Census Bot

shipments between the US

post exports and import

transactions such as militar

fuels and other supplies in t

The most recent year 

the Commission is calendar 

gives the twenty foreign cou

of oceanborne liner cargo i

The figures in the table re

imports and exports in thous
Top Twenty 

Trading 

Rank Country 

1 Japan 

2 China PRC 

3 Taiwan 

4 South Korea 

5 Germany 

6 Hong Kong 

7 United Kingdom Incl N 

8 Brazil 

9 Italy 

10 The Netherlands Hollan

11 Indonesia 

12 France 

13 Thailand 

14 Belgium 

15 Australia 

16 Malaysia 

17 India 

18 Spain 

19 Philippines 

20 Venezuela 

Source U S Department of Comm

above are based on monthly data pro
The same countries 

Trading Partners in 1996 as 

ofranking order only minor 

As compared to the precedin

to 7th France from 13th to 

Countries descending in ra

include Brazil from 7th to 

Spain from 16th to 18th

Since the Commissio

has remained theUSstop 

however other countries am

Japan srate of trade growt

policies aimed at reducing 

growth along with booming 

have accelerated trade be

countries The volume of 

Indonesia Malaysia India 

doubled since 1987 Ho

surpassed China srapid rate 

among the top 20 Since 19

and China grew by 412 pe

20 USliner cargo trading 

1994
SIGN

OPE

ACT

ORGANIZA

A OFFICE OF 

1 General

The Office of the Sec

matters submitted to and e

Commission Accordingly t

and submitting regular an

consideration by the Commiss

minutes ofactions taken by the 

and processing formal and inf

of the shipping statutes and 

processing special docket ap

clerical or administrative err

and notices of actions of the 

and records of all formal proc

petitions notices pleadings 

administrative proceedings an

or members and employees 

Information Government i

responding to information 

maritime industry and th

authenticating instruments 

compiling and publishing bou

and maintaining official copie

Office also is responsible fo

requests

The Secretary sOffice 

rules designed to reduce t

proceedings and participate

changes to the shipping statu

The Commis

formal proce
were discon

while 11 ini

judge beca

Commission 

concluded 9

informal do

against car

same period 

five rulema

proposed ru

Special Doc

proceedings 

Eight rulemaking pro

pending before the Comm

decisions in these matters a

2 Office of Informa

Informal Docket

This Office coordin

system throughout the Comm

information requests were pr

to the general public of o

attributable to the compla

158 964 Since 1988 this 

over1750 00

The Office facilitat

industry representatives an

materials and information re

fiscal year 1997 this Offic

requests and inquiries The O

of the President sConsumer 

throughout the fiscal year
In addition the Of

adjudication of reparation cl

shippers against common ca

commerce of the US The

violations of the 1984 Act M

program constitute shippers r

from alleged overcharges by 

pertain to the mishandling o

fiscal year 1997 nine claims 

were carried over from the pre

informal docket claims were c

3 pending cases at the close o

During fiscal year 19

The Office co

Bureau of 

activities of 

These efforts 

concerned fir

The Office as

the Seattle Ar

multiple carg

failed NVOC

invaluable to 

which had op

the Philippin

The Office c

activities E

wider variety 

B O

ADMINISTRA

1 General

Administrative Law 

after the receipt of a compla

Commission sown motion

ALJs have the autho

issue subpenas rule upon 

evidence take or cause depo

justice would be served ther

hold conferences for the settl

consent of the parties disp

matters make decisions or re

action authorized by agency 

Procedure Act

At the beginning of fi

and three special docket proc

During the year 65 cases w

3 proceedings dismissed or 

5 initial decisions in formal 

docket proceedings One spe

2 Commission Acti

The Commission ado

adopted 1 formal initial dec

and adopted 43 special dock
3 Decisions of Ad

proceedings not y

Compania Sud Americ

American Freight Confe

In this proceeding a 

Freight Conference alleged 

windingup expenses ofan e

Section to perform administra

although there was no author

to hire the entity which 

Accordingly complainant 

sections 10a2and 10a3

from operating outside their A

asked for a refund of its mon

initial decision it was found 

authority to hire the entity 

Conference Section equal s

dissolution and the compla

Application ofStar Ship

the Benefit of Lynden 

No 3103

In this proceeding th

permission to waive collec

over9700 on a shipment 

from Florida to England Sts

to section 8eof the 1984 A

permit carriers to waive co

because of tarifffiling errors 

increase transportation costs 

The application was denied b
in question a mistaken rate 

not the type of tariff filing e

Application ofUSAu

USANA and Columb

Customs Brokers Limit

In this proceeding 

belonged applied for permis

in freight charges in connect

carrier had transported from 

The applicants expla

the shipper but the Confere

for a different routing cau

initial decision granted the a

1984 Act and additionally re

of having to file a special no

in previous cases of this typ

authorized by section 8e3

applicants were to notify any 

relief given to the involved 

could be given the same rel

4 Pending Proceed

At the close of fisc

proceedings before the ALJs 

by the Commission The re

the filing of complaints or ap

shippers conferences port a

trade associations and steve

C O

THE GENE

The General Couns

Commission This includes 

recommendations for Commis

implement Commission po

orders and regulations for Co

Office ofthe General Counse

to the Commission its staff 

cases As described in more 

represents the Commission 

administers the Commission s

1 Decisions and Ru

The following are 

representative of matters prep

Administrative Offset R

61 Fed Reg 50444 Sep

The Debt Collection I

104134 Chapter 10 section 3

into law on April 26 1996 T

agency may collect any delin

first must either adopt withou

offset promulgated by the Dep

General Accounting Office G

consistent with the aforement

To satisfy this requirem

change existing Treasury 

administrative offset The new 
CFR Part 505 were publishe

on September 26 1996 effe

Noncontiguous Domes

9604 61 Fed Reg 

February 14 1996 

October 7 1996

The Commission is

regarding the transfer from th

and rate regulation jurisdictio

pursuant to the ICC Termina

desire that the STB continue 

carriers to file their tariffs e

into an arrangement where

domestic trade tariffs filed th

and reimburses the Commi

receiving those tariffs

Petition of South Car

Declaratory Order Doc

August 12 1997

South Carolina Stat

Petition For Declaratory O

issuing its FMCfiled tariff g

license stevedores and marine 

at SCSPA facilities SCSPA 

stevedores and MTOs doing 

public port facilities is neces

the facilities Replies to the 

between stevedores and nonp

and public ports who supp

found that the proposed ta

raised issues insofar as they 
material issues of fact which c

the existing record and it r

evidentiary hearing After 

submission ofdeclarations do

an Initial Decision ID o

guidelines prospectively in vi

On August 12 1997 

deciding the case de novo 

SCSPA had not met its burde

for licensing stevedores was j

that certain other proposed lice

in unreasonable prejudice or p

unduly prejudicial to applicant

marine terminal operations T

Amzone International 

Management Inc v Hyu

Docket No 9417 27S

This proceeding was in

International Inc and Unive

Hyundai Merchant Marine C

8c and 10b2 of the 

Complainants attempts to m

between Hyundai and another 

On April 28 1995 the 

he both found that Universal h

granted Universal scompla

decision to which Universal r

The Commission dec

interlocutory appeal so that it c

law The Commission then 

access a service contract that 
hour later The Commission 

service contract does not ext

earlier requested access T

contract termination must b

effectively cut off a shipper s

remanded the proceeding t

remaining issues

After soliciting openin

ALJ on June 6 1996 issued 

service contract did exist be

was subsequently breached by 

that Universal sexclusive r

court or arbitration Univers

which Hyundai replied 

October 23 1996 the Comm

binding service contract had 

jurisdiction over the case a

decided The case was reman

Subsequently the par

ajoint motion for approval o

the Chief ALJ served an 

dismissing the complaint 

became administratively fin

2 Litigation

The General Counsel 

before courts and other ad

litigation work largely consis

petition for review ofits orde

the General Counsel also 

enforcement of Commission 

and other cases where the Cs

litigation
Office

The following are rep

FMC v Wilfredo Garci

W Garcia Forwarding I

Court Middle District 

Number 3 CV921760

On December 7 19

seeking a preliminary injun

violations ofthe 1984 Act pen

administrative proceeding D

allegedly violated the 1984 A

services without a license and 

tariff and bond knowingly an

means to obtain ocean tra

applicable engaging in unf

settlement ofclaims and failin

and reasonable regulations and 

receiving handling storing o

also allegedly had engaged 

conduct in booking or attempt

carriers and NVOCCs in u

forwarders without their know

fictitious names to conceal the

After entry of a prelim

stipulating to violations of the 

defendants from engaging in 

related activities requiring fu

terminating all of defendants 8

motion

failed to

to

appear

find

for

defendant

a hearing

in

o

c

warrant for Garcia s arrest 

Customs upon action by Cana

Garcia to the USon Novemb
Garcia pled guilty to two co

District Court for the Middle 

to 3 months imprisonment c

probation with a special co

Defendant made restitution 

make restitution through the 

ofthe Attorney General for th

Consumer Affairs Division 

the restitution funds

SeaLand Service Inc 

971083 Military Sea

No 971084 and Amer

DCCir No 971085

These consolidated 

Commission sdecision in 

Command v Sea Land Serv

Commission found in that c

between aUSflag carrier a

foreignflag carriers agreed 

from the USflag carrier 

preference laws were alloc

meaning of section 10c6

were required by the law o

of the except clause of sec

by orders of the Maritime 

Transportation which orde

court of competent jurisdic

On March 20 1997 

in these consolidated cases 

Service Inc v Federico Pe

file motions to govern furth

and DC Cir No 931846 

orders of the Maritime Adm
and charter arrangements be

carriers The FMC filed ajoin

SeaLand Service Inc and Am

all parties have been submitt

cases and in No 931846 wa

3 Legislative Activit

The General Counsel r

all matters before Congress T

legislation proposing leg

Commission officials respo

assistance and preparing agen

proposed bills and testimony

During fiscal year 

Congressional inquiries wer

comments The Office also p

two Congressional hearings a

staffs on proposed legislatio

particular the Office monitor

various aspects of ocean sh

amend the Commission sstat

4 Significant Ongoin

Port Restrictions and 

StatesJapan Trade Doc

February 26 1997

On February 26 1997 

impose fees of100 0 per v

response to unfavorable rest

ports The imposition of th

November 6 1996 pursuant t

extensive FMC investigation i
rule originally was schedule

postponement to allow diplo

took effect on September 4 

In its decision the C

conditions involving the dom

Japan by the Japan Harbor T

association of Japanese wa

found that shipping lines in 

make operational changes m

JHTA That organization 

administration of the prio

process ofnegotiations and p

and waterfront unions No w

for appeal were given for 

control over access to the 

competition and allocate wo

Commission also found tha

business operations of its de

fees and impose operational 

As a result of these conditi

were burdened with unreaso

The Commission fo

ultimate responsibility for JHs

permission of and under t

guidance of the Ministry 

member companies are subje

their rates and business plans 

that the imposition of fees wa

repeated diplomatic efforts o

other major trading nations 

reforms

The sanctions were 

April 14 1997 However b

Commission sconcerns were 
the Government of Japan 

Memorandum ofConsultati

In the Memorandum of Co

committed to a framework 

system by July 31 1997 Bas

Commission on April 13 p

imposition of fees until Septe

however no reform plans for 

agreed upon or implemented 

action to further stay the sa

Under the payment provisions 

carriers were due on October 

the fees assessed for the 

4 million

A number of import

proceeding in fiscal year 199

international interest in thes

depiction of the Commissios

Annual Report includes a sum

the Commission was inform

intend to pay the amounts 

Commission announced its in

of the final rule addressing 

provisions liner vessels oper

barred from or detained in 

clearance until their debts to 

The likelihood of sh

urgency to ongoing USJap

Maritime Administration o

together with the Department 

proved successful On Octo

actually detained US an

documents which would co

reaching commitment to refo

these developments the Comm
Japanese shipping lines on fe

accepting 15 million in co

In November once 

negotiators were formally ra

industry leaders the Commi

final rule assessing sanctions 

also executed a compromise 

in recognition of the substan

this case and the signing of 

collect those fees assessed on 

and November 1997 The C

open however to monitor c

by the negotiators and to 

actually implemented

Maryland Port Admin

Commission and USA 

This proceeding seek

in Docket No 9401 Ceres M

Administration Ceres an 

10b1b12d1and 

and 17 of the 1916 Ac

Administration MPA eng

and unreasonable discriminat

terms and terminal facilities 

carrier in the latter slease w

common carriers and MTOs 

disparate treatment was not 

On October 10 199

decided the case de novo T

MPA had violated sections 

relying on a vessel call guara

lease terms to an ocean com
substantially similar terms to 

where the vessel call guarante

security or assurances than 

section 10dby imposing o

excessive in relation to the b

degree of disparity in the r

committed to moving substa

also found that respondent vi

refusing to grant the MTO 

comparable to those offered 

MTO dropped its existing s

allegedly due and section 1d

its barge service that were 

provided to the operator of an

and were not reasonably relat

Respondent MPA has 

the US Court of Appeals 

Virginia and Ceres has bee

proceeding Petitioner sb

respondents and intervenor s

argument was scheduled for t

James J Flanagan Ship

Flanagan Stevedores v F

al DCCir No 97161

This case is the resu

Shipping Corporation to revie

No 9432 James J Flanagan 

Flanagan Stevedores v Lake 

and Lake Charles Stevedore

Commission found in that cas

charge imposed by the res

complainant stevedore violat

because the complainant stev
service and derived no alloc

further found that an increase 

to 150 per ton did not vio

was justified by expensive c

On November 17 1

dismiss for lack of sub

Commission sorder was 

January 12 1998 the Court 

dismissed the case

5 Foreign Shipping 

Affairs

The General Counse

the Commission sinternat

Counsel monitors potential

practices and makes reco

investigating and addressing 

The Commission ha

foreign shipping practices u

FSPA Section 19 empow

regulations governing shippi

conditions unfavorable to 

Commission to address adve

foreign trade which conditio

US

In fiscal year 199

addressed a number of pot

shipping practices by foreign 

With regard to Chin

continues to monitor a numb

ofa Chinese commitment to a
and logistics services in the P

The Office also is reviewin

Shipping Exchange a comb

body recently established b

operations do not impede or 

region

The Commission con

from shipping lines on certain 

of Brazil which may contrav

the Commission seeks to as

authorities to permit a US

warehouse in Brazil created c

foreign trade under section 19 

conditions affecting US c

carriers in conflict with the F

to whether restrictions on US

cross trades between Brazil 

impair access of USflag v

ports in violation of sect

Commission also recently c

cargo preference legislation 

at a severe competitive disad

If information collected by 

law it may launch formal a

Such proceedings could re

including imposition ofperv

suspension of tariffs

The Office of the 

interagency groups and in

coordinated and participated 

Another responsibili

verification of controlled ca

Common carriers that are 

governments are required 
requirements under the 1984 

appropriate recommendations 

ofpotential controlled carrier

Commission components als

carriers In fiscal year 199

information relating to the c

carriers
D O

EQUAL E

OPPO

The Office of Equa

applies knowledge of Fede

concepts procedures and r

comprehensive program of 

Office works independently 

provide advice to the Comms

carrying out its policies an

affirmative program plannin

The Office is respon

special emphasis programm

adjudication with the ass

counselors and a Special Em

The Office works clo

Personnel managers and sup

Improve re

women mino

conditions in 

Provide adeq

Facilitate ea

problems

Develop prog

The Director Office 

employees who raise allegat

investigation hearing fact fi
such complaints of discr

complaints of discriminati

resolution of formal comp

program simpact and effecti

Significant accomplis

following

1 Provided briefings t

2

Provided workshops 

3

Provided counseling 

and employees

4 Reviewed and asses

human resource activity an

5 Continued to utilize 

agency to upgrade the skills 

staff

6 Developed informati

executives area representat

7 Planned and develo

FMC employee participatio

8 Continued to improv

Federal agencies and the co

programs in the special em

9 Continued nondisc

response to Pub L No 103
During fiscal year 19

programs and initiate additio

understanding of EEO conce

E O

INSPECT

The Office of Inspec

was established pursuant to t

was amended in 1988 to pro

general at designated Federa

It is the duty and res

Provide po

supervise an

relating to 

operations

Review exis

regulations r

and operatio

concerning 

regulations o

the preventio

the administ

and operatio

Recommend 

or coordina

financed by 

promoting 

administrati

fraud and a

and operatio

Recommend 

or coordin

Commission 
local governm

agencies with 

promotion 

administratio

of fraud and 

administered 

the identifica

in any fraud 

Keep the Ch

currently inf

other reports 

problems ab

administratio

administered 

recommend 

problems ab

the progress 

action

In fiscal year 1997 th

including a comprehensive r

Economics and Agreement A

and procedures for receiving 

complaints and a review o

procedures

During the year va

informal were opened and pu

referred to the Department 

formal investigations were 

agency

The Office issued i

outlines the OIG sassessme

end of fiscal year 2002 In 

mission developed goals to s
for achieving goals and set fo

the OIG seffectiveness in m

In fiscal year 199

comprehensive program of au

priority on program evaluat

operations while continuing 

that may exist in agency prog

to both the agency sand the 

Office will conduct a peer rev

GAO Government Auditing 

The Inspector Genera

Council on Integrity and Effi

and participates at meetings h

a forum for the exchange 

community and provides a 

inspector

OIG will participate

general projects

in any su

I

1998

to the

F OFFI

MANAGIN

The Managing Directo

to the Chairman for the 

Commission programs manag

Bureau of Eco

Bureau of Ta

Bureau of Enf

Bureau of Ad

and thereby implements the r

and the administrative policies 

Also the Managing Dir

Office of the S

Office of the G

Office of Adm

and administrative assistance 

Office of Equa

Office of the I

Further the Office of Informa

directly to the Office of the M

This management struc

timely and proper achievemen

In addition the Managi

Management Internal Contro
Office manages those prog

agency s Senior Procurem

Information Officer and the 

The Deputy Managin

the Commission sATFI sys

the Deputy Managing D

administration of this con

requirements Additionally 

of the Commission as th

Processing ADP Commit

A significant achiev

1997 was the continued coor

operations structure This re

the Commission sactivities 

representatives to carry ou

liaison activities within th

response to several cruise lin

the

statutorily

public was

required

kept

rules

informed

in t

Commission splanning and 

Performance and Results A

directives and OMB sguid

management reform A

development of internal pro

implementation ofPub L N

Enforcement Fairness Act 

continues to oversee a rulema

operators financial responsi

adequate levels of coverage 

The Office skey obje

the further development of th

the continued coordination o

of the ATFI system and p

completion of the passenge
organization of staff action 

directives with respect to stre

SBREFA and continuing 

restrictive practices of foreig

Office of Informa

The Office ofInforma

administers the Commissios

IRM program under the 

amended as well as oth

responsibility for operating th

include conducting IRM man

data telecommunications de

applications coordinating 

administering IRM contracts 

Act clearances for submis

responsible for managing the 

forms programs The Direc

Manager Forms Control Offi

Management Officer and AD

The Director of the Office a

Contracting Officer sTechni

During fiscal year 19

Modified and 

Developed an 

Electronic 

requirements 

Published I

Information T

share curren

employees
Coordinate

security

worldwide

is

systems cre

Commissio

Furnished a

records ma

of informat

Arranged fo

the Internet

Upgraded th

to include 

Internet

Continued 

contractor i

the agency s

Coordinated 

from the Co

Developed a

Continued t

on audits o

ensure com

provided te

In addition to imple

providing technical support 

major initiatives for fis

1 providing guidance for 

Intranet site 2 finalizing 

management schedule to 
Administration to include as 

Locator Service GILS re

page 4 upgrading hardwa

servers 5 conducting an a

6 maintaining liaison with th

that FMC sGILS entries re

administrative support to agen

8 evaluating Commercial O

compliance and for Commis

Desk to provide assistance to 

to IRM equipment software 

G BUREAU 

AND AGRE

1 General

During fiscal yea

consolidated its internal offic

Office ofEconomics and th

Management A second Off

employees were reassigne

operating offices are under 

The primary functio

administer programs related 

common carriers by water u

Bureau smajor program ac

Administer

programs 

competitive 

each majo

Commissio

conditions 

affecting w

Conducting 

activity

administrat

in 

Developing 

support 

responsibi
Providing ex

in formal p

unfair foreig

Processing a

marine term

2 Surveillance

The goal of the Bures

that carriers operating in these 

standards of the applicable US

To that end the Bureau admin

and other research efforts de

current trade conditions em

pricing and service activities

For a description of 

fiscal year 1997 see Section 

3 General Economi

In addition to research 

monitoring programs the Bur

variety of Commission initiati

Bureau economists prepare te

and cases of unfair shipping 

Act and FSPA They also pre

agency officials

Key projects the Bu

included 1 an economic an

sanctions on Japaneseflag 

Commission sRule in Dock

Requirements in the United 

analysis of a proposed agreem
management program in t

conjunction with other burea

possible statutory violations 

4 reports on carrier st

5 comprehensive studies an

market conditions in major l

the pricing practices of a 

transpacific and transatlanti

support of a specific enforce

report ofcontrolled carrier a

profiles 9 classification of 

waiver requests and data s

agreement reporting regulati

agreement database with a co

or on diskette 11 guideline

regulatory flexibility report

12 revision ofthe Bureau s

13 semiannual meetings w

Commission s1995 settleme

and complaints from Congr

Congressional hearings o

15 preparation of speech

Commission officials

4 Types of Agreem

a Conference 

Conference agreeme

agreement and establishmen

groups of ocean common c

limited to a geographical 

agreements are between two 

shared administration or p

common interest
During fiscal year 19

84 conference and intercon

modifications to existing ag

there were 32 conference 

agreements on file at the Com

Since fiscal year 199

has declined by over 50 pe

consolidation of conferences 

in the North Atlantic trades 

conferences covering the va

Today one conference cove

b Pooling and 

Pooling agreements 

carriers in a given trade provi

of cargo or revenues or both 

through stabilizing competitiv

set forth sailing requireme

improving overall service eff

to formalize nationalflag car

the governments ofreciproca

laws import quotas or other 

There were eight poo

at the end of the fiscal year

c Space Charte

Space charter agreem

space or container slots be

operators Sailing agreemen

parties sailing schedules T

vessels and the space on 

agreements are able to prov
operating costs These agree

to exchange equipment

During fiscal year 

charter and sailing agreemen

fiscal year there were 87 spa

file

Over the past several 

filings have been in the chsa

agreement categories

d Joint Service 

Parties to joint servic

under a single name in a sp

issues its own bills of lading 

entity

Three joint service a

1997 Nineteen joint serv

conclusion of the fiscal year

e Cooperative 

Cooperative working 

from discussion agreements 

competitively sensitive trad

operational undertakings tha

agreement categories This 

discussion agreements

Carriers filed 129 C

year 1997 There were 122 

year
f Marine Term

Marine terminals ope

provide facilities services an

passengers between land and 

delivery of cargo from ship

responsible for reviewing an

marine terminal industry

During fiscal year 1

agreements relating to por

facilities Certain terminal ag

under Commission rules th

terminal agreements from th

1984 Act Terminal agreem

processed under applicable st

fiscal year 625 terminal 

Commission

The number of ma

decreased significantly sinc

Commission exempted termin

to that time the Commissio

terminal agreements a yea

received 71 terminal agreeme

5 Overview of Agre

In fiscal year 1997 

including modifications to ex

over the previous fiscal ye

agreements in fiscal year 19

Appendix C contains a bre

categories for the fiscal year
At the end of fiscal ye

carrier agreements and 625 te

6 Future Plans and 

The Bureau soverall 

focus on systematic oversigh

emphasis on analyzing marke

reporting

submitted

requirements

by agreement

revie

pa

and monitoring current develo

publicly available sources oftr

employed to assess the impa

order to monitor developm

agreements in the foreign trade

The Bureau also will c

economic testimony in forma

proceedings under section 19 

analyses and recommendatio

orders and Commission initia

and small business impact 

analyses of newly filed agree

likely to raise issues and specif

10 of the 1984 Act or rais

recommendations to the C

agreements and those agreeme

other agreement matters inter

Commission

II BUREA

CERTIFICATIO

1 General

The Bureau of Tar

responsible for the review o

conferences of such carriers a

filed by carriers and confere

appropriate evidence of fina

ocean freight forwarders a

operators ofpassenger vessels 

these responsibilities the Bur

Reviews and 

tariff filings r

to the Comms

Ensures that 

are not subjec

discriminator

in the USfo

Approves o

applications 

tariff filing ru

Administers 

program by 

reviewing fin

financial res

Processes se

publications 

conferences 
intent to 

provisions w

regulations

Prepares rec

clerical or a

terms of ser

Licenses oce

Certifies own

in US tra

responsibilit

satisfy any l

of voyages 

other person

Assists

ATFI system

in th

administratio

contract ess

As part of its program 

Develops lon

and standa

respect to its 

Initiates reco

proceedings 

with other of

Cooperates 

with

regulatory

regard

re
Maintains sev

the Regulated 

names addre

and other pert

Commission r

Information concernin

administers is available to the 

the Commission shome pag

information are the regulations 

under 46 CFR Part 510 the 

under 46 CFR Part 514 pas

requirements under 46 CFR 

requirements under 46 CFR 

requirements for NVOCCs u

electronic downloadable vers

ofthe Bureau sregulatory pro

egthe freight forwarder app

and the application for certific

In fiscal year 199

Commission sefforts toward 

Debt Collection Improvemen

whose purpose is to maximize 

to the Federal Government

2 Foreign Commerc

a Foreign Tari

Section 8 of the 1984 

common carriers to file tariffs 

and practices for transporti

commerce of the US Sectio

authority to regulate rate lev

carriers However the Bureau 
matter which fails to com

statutory requirements The

fulfill the Commission sob

and discriminatory practice

During fiscal year 1

complete tariffs from carrie

foreign commerce Addit

ATFI can be found in the A

processed 246 foreign specia

controlled carrier special per

statutory provisions of the 1

filing regulations

b Service Con

Section 8c of the 1

that ocean common carrie

operating in the foreign c

confidential service contr

associations A concise state

contract is publicly availa

system The essential terms 

to all similarly situated shipp

its filing

Service contracts offe

tariff terms Their flexib

transportation services to a

operational needs During f

essential terms publication

28868 amendments The Co

in fiscal year 1997 than it did 

more service contract amen

The service contract filings in

conferences and 99 individ
contracts 167 contracts we

associations

c

Controlled Ca

A controlled carrier 

operating assets are directly o

government under whose regi

are operated Section 9 of 

provides that no controlled ca

its tariffs filed with the Comm

and reasonable nor may any s

or unreasonable classification

In addition such rates charge

a controlled carrier may no

Commission become effective 

of filing with the Commissi

include rates of controlled 

entitled by a treaty of the 

treatment

The Bureau monitors t

assure that the required noti

given During fiscal year 199

for special permission from 

requests from COSCO North 

permission to be relieved of 

filing requirements The C

determining that the request w

d Common C

Program

Every common carrie

the US and licensed ocea

section 15bofthe 1984 Act 

582 to file a swom Certificati
Combat Rebating in the F

This certification is to be file

on or before December 31 o

is to be signed by the Chief 

or ocean freight forwarder 

CFR 582 1bprovide that 

may result in a civil penal

continues Effective Octob

pursuant to the Federal Civ

1990 Pub L No 101 410 

addition to the civil penalty 

provide upon 45 days noti

those carriers and the sus

freight forwarders who fail 

initial tarifffiling or applicat

that does not include an ant

Part 582 is returned Carrier

their initial certification or 

certification form directly 

page

A program supported 

in place to ensure that comm

their certifications Certifica

year 1997 At the end of th

rebate certifications were su

and orfreight forwarders we

notice that they had not filed 

given 45 days to file the re

having their tariffs canceled 

suspended At the end ofthe 

and were subject to tariff ca

e NVOCC Fin

Section 23 of the 198

NVOCC operating in the fore
insurance or other surety as 

Commission sregulations req

the amount of50000 Evide

pursuant to this requirement 

transportation related activ

Commission pursuant to se

program approximately 245

currently on file The Burea

surety bond matters were ha

3 Domestic Comme

a

Domestic Ta

The regulatory resp

commerce was transferred t

pursuant to the ICC Termina

109 Stat 803 1995 The FM

provides for tariffs under the j

filed in the Commission s

administrative control in sup

all domestic trade tariffs fi

provides the STB with advic

system ATFI administrative 

affect domestic offshore tar

b Marine Term

The Commission is 

related to the marine termin

facilities services and labo

entities in connection with 

shippers and consignees and 

and ocean carriers The Bu

tariffs along with numerou

ATFI system during the fisc
4 Passenger Vesse

The Commission ad

89777 46 USC817d an

Commission sregulations 

Protection ofthe Public Pu

to present the Commission w

to indemnify passengers a

nonperformance of transpo

stateroom accommodations 

passengers at USports

Upon the submissio

responsibility in accordance 

Commission issues a Cert

Indemnification of Pas

Transportation Upon the 

accordance with Subpart B o

Certificate ofFinancial Resp

Death or Injury to Passenge

program now encompasses a

have evidence of financial 

310 million for nonperform

The certificates issued pursua

Customs clearance ofthousan

During fiscal year 1997 the C

passenger vessel certificate

certificates and 42 performan

to passenger vessel applican

The Bureau complete

Further Notice ofProposed R

proportion ofpassenger depos

Financial Responsibility R

Transportation At the end o

was being conducted for this 
During fiscal year 1

matters arising from an ongo

involving a cruise line whic

Bureau monitored the situat

guidance to the public and the 

inquiries concerning develop

In fiscal year 1997 th

of the reduced value of the 

protection for cruisestono

passenger berths the lack of 

USfor cruises embarking at 

the penalties provided in Pub 

The Bureau assisted 

violation of Pub L No 

advertising of the Royal 

VENTURE Docket No 96 1

Anastassios Kiriakidis Pos

Certification Requirements T

violations involving the passe

Bureau ofEnforcement

5 Freight Forwarde

The Commission s

forwarding industry are foun

freight forwarders are persons 

shippers as export departme

operate in the export commerc

transportation of cargo by c

paperwork legal requirem

incidentals related to the shipm

receive a fee from the export

well as compensation from th

to carry the cargo
During fiscal year 

applications were received 

approved 245 applications 

returned and 9 applications 

licenses were issued while 6

the fiscal year 2007 license

Commission sjurisdiction 

revised form FMC18 Applic

Forwarder The streamlined 

financial data and reduced 

burden from 18 hours to 2 ho

In fiscal year 1997 t

report which made reco

Commission srole with respe

Forwarders Association sC

program While certain legal 

prohibited the Commission 

expansive options that the 

Commission determined th

completion of the COF exam 

applicant meets the experie

Director was named the Cos

Association in connection wi

6 Automated Datab

a ATFI

ATFI a computerb

efficiency reduce processing 

electronic filing processing 

carrier tariffs marine terminal 

and amendments thereto Th

conferences with greater flex

offerings by streamlining th
those offerings with the Com

1984 Act The Commis

February 22 1993 Through 

has achieved a paperless ta

year 1997 there were 4738 

shows the number of tariff o

year 1997

b Other Datab

The Bureau maintain

other than its ATFI system 

System 2 Regulated Pers

4 Ocean Freight Forwarder 

contains certain key service 

available to the Commissios

law The Regulated Persons 

person the Commission regu

the address telephone numb

information The Microfich

canceled tariffs and amendm

Ocean Freight Forwarder 

concerning licensees inclu

databases provide support fo

Certain information containe

public
7 Rulemaking and 

The Bureau recomme

rulemakings and Commissio

year 1997 the Bureau partic

Financial Respons

Nonperformance ofTra

In Docket No 9406 

Proposed Rulemaking to pro

deposits and prepaid fares T

to the proposed rule and is aw

analysis

Royal Venture Cruise 

Kiriakidis Possible V

Certification Requireme

The Bureau assisted 

violation of Pub L No 

advertising of the Royal 

VENTURE Bureau staff 

Enforcement and prepared tes

ALJ A final decision was iss

for violating section 3 of P

advertising passage on a ves

ofFinancial Responsibility f
SeaAir Cargo Agency 

Line Possible Violatio

Shipping Act of1984 Do

Shipping Co Ltd db

Possible Violations ofSe

of1984 Docket No 96

Violations of Sections 

Shipping Act of1984 D

The Bureau prepared 

for the Bureau ofEnforcemes

9619 The proceedings resu

I BUREAU O

The Bureau ofEnforc

prosecutorial arm of the Co

Bureaus of Investigations a

provides for closer coord

prosecutions and streamline

functions Attorneys of the 

attorneys in formal proceed

1984 Act and in investigatio

attorneys serve as legal advis

bureaus and also may be 

nonadjudicatory fact finding 

other formal proceedings in o

and to advise the Managing 

Bureau also participates in the 

regulations On occasion und

attorneys from the Bureau 

litigation to which the Comm

Through investigative 

conducts investigations into t

NVOCCs freight forwarders 

persons to ensure complian

administered by the Comm

1 service contract reviews to 

statutes and regulations 2 re

compliance with bonding req

compliance checks of licensed 

whether their operations co

4 audits of passenger ves

protection of cruise passenge

to support Commission progr

alleged violations of the fu

administered by the Com

misdescriptions or misdecla
agreements abuses of an

forwarding untariffed carg

passenger vessel operations 

such as failure of carvers or i

obligations resulting in cargo 

The Commission m

Miami New Orleans and Sea

in each of those cities The

major port cities and transp

areas Coverage of the North 

the Bureau sstaff in Washing

investigative functions 

Commission within their jur

Commission and the marit

collect and analyze intelligen

industry conditions Liais

coordination with other gov

information and relaying Com

and the public and handling 

The Bureau prepares 

shipping statutes and Commi

and settle civil penalty dem

settlement is not reached B

formal Commission proceed

the assessment of civil pena

conjunction with other burea

During 1997 the Bu

malpractices particularly 

measurements in the transpa

subject ofmalpractice invest

Central American and Ca

included improper shipper p

rebates and absorptions 

misdeclaration ofmeasurem
for untariffed and unbonded N

Bureau worked closely with th

Analysis in developing evid

which led to formal proceed

Unfiled Agreement Between 

Ltd and Mediterranean Ship

Possible Unfiled Agreements A

Nedlloyd Limited and SeaLa

The cooperation 

representatives and Custom

investigative information con

and recently has expanded 

shipments which enterUSc

that which had appeared on 

This information permits Co

selective in determining whi

violations of the 1984 Act A

expect this avenue of coopera

the USto continue to increa

In fiscal year 1997 the 

implemented the Freight For

reviews the operations of li

assists them in complying wit

Commission srules and regu

At the beginning of f

were pending final resolution 

40 new enforcement actio

compromised and settled ad

formal proceedings Twentye

resolution at fiscal year send

At the start of fiscal ye

formal proceedings During 

in twelve new formal proceed
Bureau participated were co

proceedings were pending a

At the beginning offi

legal advice pending in the 

advice were received during 

projects were completed Ac

pending in the Bureau on Se

1

As a result of enforce

943 39 04in civil penalti

reached with many different 

cruise operators shippers fo

trades Civil penalty collectio

III Surveillance and Enforc

In fiscal years 1998 

pursue fraudulent and antico

monitor major UStrades to 

closing of all seven of the Cs

percent reduction in Bureau p

may impact enforcement a

However the Bureau will co

and advisory functions albe
J BUREAU OF 

Office 

The Bureau of 

administrative support to the 

The Bureau interprets gove

administers these in a mann

including those involving 

financial management and 

recommendations collabor

Commission as warranted 

policies and standards and r

program activities The Dire

administration and coordinat

Office of Adm

Office ofBud

Office of Per

Many ofthe functions 

in the narratives for these Off

The Director serves 

challenging barriers to com

practices

representative

as specified

as Principal

in the F

Agency Council SAC 

Director provides program o

financial management re

compliance with the Financia

and the Debt Collection Impr

The Commission sTr

the Director The Training O

assistance and career counsel
technical assistance to the Ex

Officer also serves as a mem

FMC employees took adv

programs through SAC Co

required by statute were offe

with the US Department of

The Office of the D

directing and administering t

Program which includes an 

program to ensure effective 

12958

1 Office ofAdminis

a General Offic

The Office ofAdmini

a variety of management ser

administrative support to the 

Commission

Contracting Officer

The Directo

The Office ssuppor

telecommunications procur

services property managem

copying management mail a

designs facilities and equip

The Office smajor functions 

equipment

mission and

and

to

services

formulate

req

methods governing the use an

compliance with the applica
b Achievements

During fiscal year 19

Provided con

support of th

Revised Com

line with c

regulations

Arranged fo

FMC s35th A

Arranged fo

including the 

profit organi

Developed 

provide IT 

support of its 

Conducted a 

implemented 

annual savin

Conducted 

alteration p

savings

Implemented 

accordance w

streamlining 
c Future Plans

In fiscal year 1998 

following 1 expand the au

for use in other Commiss

2 continue efforts to expand 

program for paperless offi

International Merchant Purcha

of the government purchase 

Electronic Funds Transfer pr

FMC activities regarding inn

2 Office ofBudget a

a General Offic

The Office ofBudget 

the Commission sfinancial m

accounting activities fee and 

ensures that Commission 

appropriated funds are proper 

for submission to Congress 

internal controls systems th

funds administers the Comms

programs as well as the Cs

accountability for official pas

of proper levels of user fees

b Achievements

During fiscal year 199

Collected and 

and fine and p
Prepared fisca

estimates co

justifications a

Congressional 

budget to OM

Congressional 

Prepared a var

Civil Monetar

Asset Manage

Cash Flow D

Report on Firs

FY 1996 G

Management 

Management I

Leave Year Re

and Personn

Management 

Occupational 

Department 

Bureau of E

Planning Boa

Report OMB

Provided mana

on workyears 

Completed im

manager softw

Participated 

implementatio

Improvement 
c Future Plans

During fiscal years 

1 continue to develop and 

automate the processing ofpur

in conjunction with the Office 

2 review procedures an

3 continue to pursue initiativ

financial operations and 

requirements of the Debt Col

3 Office of Personn

a General Offic

The Office of Person

personnel management pr

placement position class

occupational safety and he

relations workforce discipl

awards employee benefits 

personnel security

b Achievement

During fiscal year 19

Updated Co

Absence and L

and Superv

guidelines fo

procedures

Expanded fa

reported on t

in conjunctio
Act and the Fe

Leave Act

Conducted fou

Seasons three 

Updated retire

prepared an

employees an

use of volunta

retirement aut

Monitored an

Program contr

very successfu

Conducted the 

Program and 

including spo

Benefits Fair 

Service Days 

each month w

Advised s

responsibilitie

performance 

milestones an

to supervisor

members con

process

Reviewed an

strategic plan 

keeping and c

the Nationa

Reporting Pr

Services Offic
Coordinated 

Campaign e

Developed a

Work Plan 

to hire welfa

Prepared a 

reports incl

Program 

racenationa

Luevano D

staffing act

competitive 

reports and 

action progr

and externa

interagency 

annual fede

screening p

political app

pay and per

c Future Plan

During fiscal years 

to advise the Commission o

maintenance of a sound an

Office will continue its re

implement provisions of th

performance plans and w

guidance and career transi

employees to assist those in
AP

0

co2

Es

8c

mp

ht

15

at 0

C 0O

0

0m

ORGANI

m

a

2

0

N

cc320

mco

APP

4C

U S 

h 

Y 

0 

O 

u2

64 

0
Formal Proceedings

AP

COMMISSI

Fisc

Decisions 

Discontinuances Dismis

Initial Decisions Not Revi

Rulemakings Final Rules 

Withdrawn 

Total 

Special Dockets 

Informal Dockets 
AGREEMENT 

Fi

Agreements Filed in FY 1997

including modifications

AP

Carrier 

Terminal 

Total 

Agreements Processing Categ

Fortyive Day Review 

Shortened Review 

ExemptEffective Upon Filing 

Rejection of Filing 

Formal Extension of Review Pe

Terminations 

Withdrawals 

Total 

Carrier Reports Submitted fo

Minutes of Meetings and Ad Ho

Monitoring Reports 

Total 

Agreements on File as of Sept

Conference 

Interconference 

Pooling Equal Access 

Joint Service 

Space CharteringSailing 

Cooperative Working Agency 

Terminal 

Total 
Electronic TariffFilings

Essential Terms Documents

Special Permission Applications

Foreign

APP

TARIFF AND SERV

AND SPECIAL PER

Fisca

Electronic Tariffs in Effect 

Tariffs new 

Rules 

Commodity Descriptions 

TariffLine Items 

Inland Tables 

TariffRecords 

Organization Records 

New Service Contracts 

Service Contract Amend

Granted 

Denied 

Withdrawn 

Includes essential terms public
APP

CIVIL PENA

Fisc

Alexander Air Express Inc 

Alliance Shippers Inc 

American Classic Voyages 

CommSino Limited Co 

FD Loadline Corporation 

Frederic Henjes Jr Inc 

Galaxy Trading Inc 

Glacier Bay Park Concession

Haewoo Air Shipping C

Honorwell Shipping Ltd 

Hyundai Merchant Marine 

Inter American Freight Co 

International Transportati

Kawasaki Kisen Kaisha Ltd 

Longrow Shipping Ltd 

Ocean Concord USA 

Ocean World Lines Inc 

Overcom Trade Inc 

Pacific Shipping Ltd 

Pactrans Marine Inc 

Phoenix International Frei

Schenker International Inc 

Seair International Line 

South Seas Steamship Co L

Speedmark Consolidation 

Three Hands Corp 

Trans Ocean Pacific Forwa

Ulysses Cruises Inc 

Total Civil Penalties Collec
APP

INVES

Fisca

InvestigationsSpecial Inq

AuditsCompliance Check

Compliance Check

Cruise Audits 

InvestigationsSpecial Inq

AuditsCompliance Check

Compliance Check

NVOCC Audits 

Cruise Audits 

Sharp increase in Compliance C

Freight Forwarder Audit Progra
STATEMENT O

OBLIGATIONS 

THE FISCA

SEPTEM

APPROPRIATIONS

APP

Public Law 104208 For necessary 

as authorized by section 201 dof th

46 AppUSC1111 including se

passenger motor vehicles authorize

allowances therefor as authorized 

exceed 2000 shall be available for 

OBLIGATIONS AND UNOB

Net obligations for salaries and expe

ended September 30 1997 

STATEMENT OF RECEIPT

Fund of the Treasury for the Fiscal 

Publications and reproduction

Fees and Vessel Certifica

and Freight Forwarder Ap

Fines and penalties

Total general fund receipts

Cr USGOVE