21st 

Annual Report 
TWENTY FIRST AN

02 TH

FEDERAL MARITIM

TO T

CONGRESS OF Tit 

FOR FISCAL 

SEPTEMBER 



LETTER OF TRANSMITTAL

TABLE OF C

MEMBERS OF THE COMMISSION

I THE COMMISSION 

History Function

Organization

II THE YEAR IN REVIEW 

Strategic Planning Econ

and International A

III SIGNIFICANT FMC ACTIVITIE

AND THE YEAR S HIGH

Regulatory Programs

Bureau of Agreements

1 Processing

2 Surveillance

3 Program to 

Inactive Ag

4 Types of Ag

5 Comments by 

Commission Decisions 

Office of the Secre

1 Informal Do

2 Final Decis

the Commiss

3 Significant 

Proceedings 

Adjudicatory Procee

Before Administrativ

Law Judges 

Legislation and Litigatio

Office of the Gener

1 Litigation 

2 Legislation 

Shipping Ac

Hearings

The Export 

Act and Oth
Bureau 

7 

8 

Bureau 

2 

Bureau 

F

Bureau 

a

2 

3 

Admin

APPENDICES 

A Organ

B Forma

C Agreem

D Tariff 

E Civil 

S

F Field 

G Statem

O
TRne of the ellalrman

7rbrral Slindti

ItInshingI1

To the US Senate and House o

Pursuant to section 10e2

No 7 of 1961 and section 208 

1936 as amended I am pleased 

annual report of the activitie

Commission for fiscal year 19

S

A

C
Alan Green Jr

Chairman

Appointed 1981

Term Expires 1986

R Oregon

James V Day

Commissioner

Appointed 1962

Term Expires 1984

R Maine

MEMBERS 

Note Commissioner Richard J 

June 30 1982 resigned 

October 25 1982 The 

anyone to fill the exi
THE COM

History

The Federal Maritime Com

Independent regulatory agency by R

August 12 1961 As successor to 

Commission was charged with the 

provisions of the Shipping Act 191

States were thus separated into 

promotional with the responsibilit

adequate and efficient US Merch

Maritime Administration now lo

Transportation The Federal M

responsibility over the regulation o

States

Pune lion

The Federal Maritime Com

administration of varying portions 

Chief among these are the Shipp

Shipping Act of 1933 the Merchant 

the Federal Water Pollution Control 
years several other acts or 

Congress and signed into law 

statutory responsibilities

The Commission sprincipal 

Regulation of services 

foreignflag common 

engaged in US foreign 

Receipt and review of 

rates by US and 

engaged in the LS fore

Protection of US 

shippers and carriers 

United States from 

governments and or pr

an adverse effect on the 

Regulation of rates 

practices of US oc

offshore trades of the US

Licensing of independen
Issuance of passenger vessel 

responsibility of vessel owne

for personal injury or dea

nonperformance of a voyage o

Issuance of certificates to ves

shoeing financial responsibili

spills of oil or other hazar

vessels into the navigable wate

Investigations of discriminato

and practices of CS and fo

in both US foreign and dom

operators and freight forward

Rendering decisions issuing 

regulations governing common 

and domestic offshore comm

loruarders and other persons 

United States

The Commission sprimary respo

involves the administration of sectio
Section 15 grants groups 

exemption from US antitru

Clayton Acts once Commiss

been obtained The FlIC rev

to ensure that they do not ex

prevent abuses associated 

potentially anticompetitive a

Beyond the Commissios

activities of competing ocea

States the BBC as also co

public by ocean earriers 

prohibits carriers and confer

preferential practices in de

in US oceanborne comm

conferences to make their ra

and that the applicable rat

actually charged for service

file with the Commission c

authority to set these rates 

US foreign commerce The 

entry into the oceanborne co

Generally the Commis
stability in the conduct of US oce

percentage of US foreign trade 

shipping services or facilitated by 

purview of the Commission the Cos

efficiency and economy in the US 

protect the USshipping public

Organization

7 he Federal Maritime Com

Commissioners appointed by the Pre

advice and consent of the United S

members of the Commission may belo

President designates one of the Co

The Chairman is the chief executive 

agency

Five offices are directly r

Administrative Law Judges the 

Regulatory Policy and Planning 

operating bureaus report to the Ma

for the Commission sregulatory 

offices report to the Managing Dire

graphic representation of the Comms

In fiscal year 1982 the Fe

authorized a total of 306 perm

appropriation of 11498 000 Th
personnel are located in 

York Chicago San Francis

Juan Puerto Rico
TH

During fiscal year 19

actively Involved in critically 

independent regulatory age

governmental structure E

burden of government on 

regulation on the maritime 

undertook several activities 

of the agency and to re

consistent with the agency s

One way of reducing re

more responsive to the co

During the year the Comm

maritime regulatory framew

Congress in February of 19

the time consuming specu

section 15 agreements prior 

been Incorporated into the l

antitrust immunity and co

questions form the cornersto
The Commission 

granted to the agen

the year the Com

categories of non 

approval requiremen

include excluding ro

of GO 18 and ex

non exclusive equip

provide for the c

experience informat

or housekeeping m

proceedings to modi

third rebuttable pre

nonexclusive trans

requirements that w

The Commission 

domestic offshore 

Docket No 8214 

effectiveness of reg

Intercoastal Shipping 

comment on the reg

the system The res

fiscal year the 
the thorough and diverse view

In the past the Commis

the approval process for secti

chronically poor performa

Agreements Processing Revie

composed of high level Co

establish priorities and to pr

earls stagc in the proce bin 

that may be present in the ag

of the fiscal year the Board 

Inventory of agreements and 

for consideration of agree

improvements are expected a

The Commission also ini

user fee schedule to more ac

for services rendered to the 

where none existed previou

schedules are expected to bec

In the early part of 19

Council on Commerce and T

Shipping Policy Group Chair
CoChaired by the Depart

includes the Departments 

Trade Representative and 

Maritime Commission has 

it formulates US policy 

Given the growing List o

cargo allocation schemes i

force of the UNCTAD Cod

a wellconceived policy 

competitive access to the 

Despite a reduced ap

the Commission realized s

year 1982 The Comm

completed 495 logging 

respectively over the pr

proceedings initiated and 

Office of Administrative 

31 percent increase over 

reported a 13 percent incr

while the Bureau of Tariffs 

pages in FMC history 50

previous fiscal year Ne
certification increased by 11 

from 1578 in 1981 to 1060

settled 81 malpractice ca

295 353 00in civil monet

over the previous fiscal ye

4399 503 00to shippers for 

waived or refunded under sec

amount represents an increase 

during fiscal year 1981 Fina

Fund of the Treasury almos

appropriation through fines 

Commission publications and 

The substantial increases 

by these various statistics are 

Maritime Commission Their 

budgetary constraints and to 

constant responsibilities rem

In fiscal year 1982 the people 
The Office of the 

weekly agenda of mat

and recording subsequ

items receiving and pr

the shipping statutes 

notices of actions of 

records of all formal p

directed to Commissi

Freedom of informatio

responding to informat

industry and the pub

the Commission issuin

Law Judges reports 

miscellaneous docum

Commission and comp

decisions The Secrets

rules designed to r

proceedings the on

Commission sorganiza

changes to the shipping 
During fiscal year 1

Volume 22 of the Commiss

of records under the Priva

section 15 agreements

I Informal Dockets

The Informal Docket 

Secretary and is responsible 

shippers against common 

domestic offshore commer

predicated upon violations 

Shipping Act 1933 for w

The vast number of cla

constitute shippers reques

overcharges by carriers in 

Act 1916

The Informal Docket 

orders or decisions disposin

2 Final Decisions of the C

Additionally the Off

proceeding program of th

Commission heard oral arg
decisions involving form

were discontinued 

determinations not to 

terminating proceeding

decisions in formal p

passage of the time 

review Three proce

Administrative Law Jud

The Commission al

276 informal dockets inv

resulted in refunds or 

amount of4399 503 32

In rulemaking proce

3 Significant Formal P

Docket No 8151 

SRH1047 August 5 1

The Commission is

requirements to prohib

shipper s overcharge cl

which require overcharg

cause of action has 

coincide with the perio

1916 The purpose of 

opportunity to resolve th
Docket No 8147 Lease 

Port Administration and Atlan

December 2 1981

The Commission declined 

Interpretation of a term in a 

Issues were presented no spe

dispute was necessary the ma

general jurisdiction and the 

be a potential source of admin

Docket No 8143 Indepe

Tokyo Express Co Inc and 

Trading Company 21SR12

The Commission approved 

certain alleged violations of 

for a civil penalty that had b

Judge The Commission dete

are generally presumed to be 

Judges should not be compelle

better judgement The Com

Officer s5000 increase of the 
Docket No 81 40 

Agreements from the Fil

the Shipping Act 1916 21

This proceeding exem

of section 15 of the Ship

agreements covering th

LASHSEABEE barges a

persons subject to the Ac

Docket No 8136 

SR405 January 20 1

This rulemaking am

clarifying certain cate

exclusions These chan

experience with the rules 

environmental assessm

significantly affecting th

Docket Nos 8130 a

v New York Shipping As

These consolidated 

section 22 Shipping Act 

1980 The Commission 
demonstrate that Rule 10 of Ce

Agreements was unlawful The 

assessments to be collected at the 

handled by longshore labor

Docket No 8126 Agreemen

Expense Agreement 21 SR372 D

The Commission had institut

whether Agreement No 102473 was 

Certain statements made by partie

they may have given their assent 

governmental exclusion from the tra

J nent s not the Mast 

was therefore subject to the filing 

15 of the Shipping Act 1916

Docket No 81 19 Eli Lilly SA 

Lines Ltd 21SR410 January 12 

The Commission found that a 

complaint proceeding obtain an ass

without being barred by the twoyea

of the Shipping Act 1916 It was 

claim assignment a complainant w

perfecting its claim in a manner not 

1
Docket No 8115 

Cooperative Study Agr

1981

The Commission ap

carriers serving European 

objections of the Dep

opponents to approval 

contravenes section 15

Docket No 81 11 

Ocean Common Carriers 

Violations of the Shipping 

The Commission issu

the implementation of 

Commission sjurisdiction 

1980 PL 96325 and 

under the shipping statut

decision

Docket No 818 R

212 November 13 1981

The Commission 

assignment for freight 

subsidiary after the statu
Docket No 811 Un

Co Division of Universal 

Ocean Freight Forwarder Li

The Commission approv

certain alleged violations 

for a civil penalty The 

shipperconnection did no

amendment effected by PL 

ber to licensing

Docket No 8077 Fa

the Foreign Commerce o

Certification Filing Requi

1916 21 SR706 March 1

The Commission took 

by water who had failed to 

required by section 21n 

carriers not actively offer

Carriers in technical viola

in their previously submitt

rectify them
Docket No 8070 

Tariff Filing Requireme

SR595 March 8 19

The Commission Is

bulk type cargo loaded 

of intermodal equipmen

moving in the foreign c

tariff filing requiremen

was based on a finding 

mark or count For the 

those commodities whi

homogeneous character

Docket No 8054 

Regulations Applicable 

Commerce of the United 

This rulemaking p

timevolume rates ie 

specific or minimum qu

rates may be offered 

they meet stated c

timevolume rates and 
with the Commission and be m

under the same terms and cond

Docket No 8050 Certi

Corporation Possible Violatio

SR468 January 21 1982

The Commission assessed 

Corporation for stipulates vio

the Shipping Act 1916 Th

occurred upon the payment of 

rates and charges

Docket No 80 45 Agre

As Amended Cargo Revenue 

United StatesArgentine Trade

The Commission approve

pooling agreements in the n

The Commission found that th

government to government ar

to be in the public interest

Docket No 79 68 Mil

Navy v Matson Navigation C

The Commission found 
general rate increase 

from the date the Com 

unreasonable The Co

judicata as to lawfulnes

available to It certai

reparation claim

Docket No 7959 

Freight Forwarder Appl

Subsequent to the e

license as a freight forw

of Independence the sta

forwarder was amended 

determined that altho

company to both a sh

preclude licensing as a f

Docket No 7995 

Harbor and Terminal Dis

The Commission fo

essential services in c

private terminal facilitie
the services it provides is an 

though tt does not own or 

warehouses serving common 

jurisdiction over the Port and 

the substantive provisions of th

violate sections 16 and 17 of the 

Docket No 799 Contin

Inc 21 SR1172 August 20 

The Commission found Co

regulation under the Shipping A

lr estern Elevator However 

of grain on Prudential LASH 

contained in a contract for the 

scope of Commission jurisdictio

J Future Activities

During fiscal year 1983 t

Secretary anticipates revising 

business confidential inform

Act developing procedures to 

Act compiling Volume 23 o

revision of regulations impl

Privacy and Government in 
procedure caused by 

integrated agencywid

inquiries and complaint

Adj

Administrative Law 

adjudieatory proceeding

by the Commission its

Judges under the direct

before the Administra

section 15 agreements 

various parties subject 

complaints under section 

Administrative Law 

and affirmations issue 

relevant evidence take 

ends of justice would 

hearing hold conference

by consent of the par

matters make decision

action authorized by a

Procedure Act
At the beginning of fiscal 

before Administrative Law Ju

added which included 3 ease

proceedings The judges held 

hearings in 13 cases and 

proceedings and 126 initial dec

Cases otherwise disposed 

informal proceeding

At the close of fiscal year 

11 of which were investigatio

remaining proceedings were i

applications by common carrie

authorities or districts term

stevedores

LEGISLAT

Office of 

The Office of the General 

issues and provides it with lega

The office reviews the legalit

formal and informal written o
and prepares draft dec

Commission action

1 Litigation

The Office of the G

and enforcing Commissi

largely consists of repre

of its orders in the C

appeals are brought in 

Columbia others are m

New Orleans and San F

Counsel s

office consists of order

the Department of Justi

in the US District Co

represented by the Gen

brought in the State Cou

At the close of the 

were carried over or fi

either through settleme

the 5 cases in Distri

settlement Three Su
comprised the balance of the litig

Counsel soffice during this fiscal p

Significant eases that have 

resolution are as follows

Council of North Atlantic S

Shipping Association v FMC US

the FMCS order in Docket Nos 7

regulations of certain carriers in 

that require container stuffing and 

ports by International Longshorems

The Court upheld the Commisss

Council of North Atl Shipping An

1982 but remanded the proceed

Court denied certiorari The case 

determination of the lawfulness of 

pending resolution of a related FM

NYSA et al v FMC and USA 

Shipping Association challenged t

81 11 which held that 50 mile 

Commission sjurisdiction under th

1980 PL96325
Totem Ocean Tra

80 7721 challenged an 

lacks jurisdiction ove

transportation of ag

regulation by the Inte

the contiguous United 

Hawaii The Court up

to its lack of jurisd

remanded the case to t

should be prohibited 

9th Cir 1981

Puerto Rico Mari

DC Cir cert d

Commission sdecision 

rate increase filed by 

the United StatesPuer

high and that similar 

reasonable The decis

to the Intercoastal Ship

to the Commission sad

Ship s Overseas Se

F2d 304 DC Cir 19
a common carrier on the bas

single shipment as an extraor

The Court of Appeals Geld 

sufficient in itself to establish 

Act

Federal Maritime Comm

et al and International Paper 

SR492 9th Cir 1982

In an unpublished opinion 

court order denying enforcem

ground that the district court s

USA v FMC DC Cir N

appeal by the Antitrust Divis

Inter alia challenged the 

agreements among ocean carr

for through intermodal serv

regulated by the Interstate Co

the FMC s authority to appro

vacated its affirmance and 

appeal as moot
Refrigerated Expres

Refrigerated Express Lin

Commission orders den

section 19 of the Mercha

its exclusion from the 

Australian Meat Liv

carriers under Australia

US foreign trade w

Commission srules at 4

the Commission sorde

agency by section 19 R

US Court of Appeals fo

2 Legislation

During fiscal year 

with legislation being c

provided substantive 

Committees and mem

maritime regulatory ma

a Shipping A

During the second 

Merchant Marine a
Commerce Committee contin

comprehensive shipping reform 

introduced during the first s

closely with these Committees 

comments on provisions of the 

On February 12 1982 

Subcommittee on Merchant M

suggested far reaching change

handling of section 15 agre

administrative delay in agreem

speculation as to the oper

Commission sought to greatl

process for section 15 agree

maritime industry with clear

which section 15 agreements 

greater clarity in the prohibi

Commission scomments were 

House and Senate bills

On April 22 1982 the Se

reported 5 1593 to the full Se

measure continued the antit

among carriers and others Th

with the FMC and provided th
days after filing unless 

agreement need not he a

to its becoming effec

conducted by the Com

eliminated Instead 

activities pursuant to a 

activity violates the sp

in the bill S 1593 a

specific jurisdiction ov

open conferences autho

provision for a right o

also has in effect loyalt

requirements for carrie

timevolume rates and s

The companion bil

amended by both the H

and the House Judiciary 

for a vote On Septem

margin of 350 to 33 Lik

HR 4374 would continu

delete the public intere

agreements will become 

suspended by the Comm

of antitrust immunity 
S 1593 and place specific co

pooling agreements HR 43

filing allowed shippers and c

timevolume rates and prov

shippers councils HN 43

Commission to study the prosp

b Hearings

The Chairman of the F

September 21 1981 in support 

On October 6 1982 Ch

Subcommittee on Mercant M

Congressman Biaggi sbill HR 

also presented the Subcomm

technical and substantive reco

of 1982 the Commission s 

Monopolies and Commercial L

Committee to articulate th

relationship between the propo

the antitrust laws Throughout 

members of Congress and their 

The General Counsel also 

Committee sSubcommittee on 
respect to S 2414 wh

carriers offering throug

or destined for the U

through a United States 

Commission offered su

responsibilities of ocean 

shippers of the United S

c The Export 

and Other L

The Congress con

reform administrative 

adudicatory proceedin

body on March 24 1982 

746 had not been cons

On October 9 198

was signed into law by 

formation of export tr

institutions to invest in 

assistance to smaller c

Among the services t

and transportation 

services the company 
regulations contained in sec

Commission srules The C

Company Act may have a s

commerce of the United Stat

STRATEGIC PLA

AND INT

Given the international 

rapidly evolving economic 

among the nations of the wo

necessary to increase its ca

and economic analysis an

developments and trends in 

international liner shipping in

In September of 1980 

Regulatory Policy and Pla

conduct of strategic plannin

the area of international 

endeavors to ensure that t

impact of its current d

developments affecting o

international trade Office a

economic trends legislativ
changes in the ocean 

international affairs a

research and analysis 

regulatory role

During fiscal yea

expert testimony for n

domestic offshore ge

Commission as form

special planning stud

included long range 

Commission sfuture 

Commission stariff f

Liner Conferences a 

trades and the impac

governments on the US 

direction provided te

the interagency Intern

charged with formula

UNCTAD Code and d

implemented The re

current Commission 

industries and US oce

activities with those o
Given the expected entry 

Conduct for Liner Conferences i

widespread adoption of non ma

governments of other nations 

greater involvement in internati

will likely depend more heavily o

Planning to conduct the relat

Commission with timely and accu
SIGNIFICANT FMC 

The Commission s

through various bureaus 

the Office of the Mana

by statutory function 

tariff filing and enfo

certification and licen

within the agency Ea

entire Commission re

from other Commission 

organization during fisc

The Bureau of Ag

all agreements filed u

evaluation of dual rat
the transportation need to 

accomplished through such s

the changing patterns of int

conference activities var

submitted by ocean carrier

audits are performed in ord

objectives upon which Com

predicated are truly being ac

current trade conditions an

continued approval of an ag

changing international s

Commission approved section 

Important function of the Co

1 Processing

M the beginning of fisca

section 15 approval on file w

additional applications were 

applications available for p

section 15 new or modi

overwhelming majority of 

requiring that the parties to 

to meet specific conditions 

should the parties fail 
would be null and void 

order to protect the publ

maintain adequate surve

contemplated in a section 

In addition to the ag

the year and 33 were with

year on 166 miscellane

agreements which were 

section 15 of the Shipping 

the close of the fiscal y

reduction from the numbe

year 1982

During the fiscal ye

more responsive to the pu

procedures and expeditin

approval with the Commis

Board was established to 

agreements review proce

Managing Director the 

Bureau of Agreements a

Policy and Planning Th

stage of processing and cl
present As a result of 

recommendation reflecting 

the Commission is commenc

possible and the entire review 

Secondly the Commissio

prescribes improved procedu

for approval pursuant to se

revised regulation provides n

filing of agreement approval 

such agreements and responsi

approval requests by the Com

Thirdly the Commissio

Procedures governing the pr

establish internal responsibil

agreements submitted to 

procedures impose strict dead

analysis and processing functi

2 Surveillance

The Shipping Act 1916 

responsibility to cancel disa

finding after notice and hea

to prescribed standards T
programs to ensure that 

intelligence is available t

Commission with sufficie

situation that is contrary 

Conferences and oth

to submit to the Comm

matters discussed ann

complaints and semiannu

addition the Commission 

certain other types of 

chartering sailing poolin

of uniform regulation a

initiated to standardize re

3 Program To Eliminate 

An important activit

of surveillance over the o

section 15 agreements S

agreements are dormant 

During fiscal year 1

program to review the 3

file with the Commission 

was structured to determ
Active status was determin

advertisea settings recent co

minutes of meetings held pu

year 74 agreements were 

terminated At the end of fis

were on file and considered a

year 1983 an additional 26 

pursuant to this program

4 Types of Agreements

a Marine Terminal 

Marine terwi Lopera

provide the facilities and la

land and sea carriers and 

shippers and consignees A

operators and other persons 

involving the lease license o

space or for services to be 

approval of the Commissi
Act 1916 In addition 

activities of parties to te

During fiscal year 

completion 173 agreeme

the use and provision of p

An unusually high nu

year between ports an

financing of new and im

tax exempt revenue 

improvements in lieu o

revenue sources refle

administrators Because 

common reouirement 

finalization of the financ

procedures for expediting 

Another type of ag

fiscal year is the reven

ports to secure longte

carriers Such agreemen

container carriers The

competitiveness among 

investments in container 

in this respect has occurr
A major intercoastal 

operators on the Atlantic an

acted upon during the fiscal 

close of the year relative to 

the discussion of rates and ch

Commission early in the yea

authority be removed because 

standards Upon petition the 

The Commission is aiso 

number of labor managemen

Labor Agreements Act of 1

provides that such agreeme

funding of collectively bargain

a uniform manhour basis re

vessel or equipment utilized 

the Commission During fisc

agreements of this type were 

b Pooling and Equal 

Pooling agreements ap

carriers In some cases Incr

from the pooling of vessels e
agreements often set 

relating to overall se

formalize nationalflag 

controlled by the govern

cargo preference laws 

section 15 agreements co

At the end of fisca

three equal access agree

agreements approved 

agreements apply to th

agreements affect the 

Chile Colombia and Pe

strictly commercial poo

the IsraelUS North A

Pool No 10116 the 

ItalyUS North Atlantic 

During fiscal year 

actions in the area of 

fouryear extension of 

10286 and approved a 

10425 in the USChile 
The Commission also approve

and the ArgentinaUS Atlantic 

Report and Order in Docket N

scheduled to expire December 31 

No 10333 which was before th

determine its continued approva

and pursuant to their request the 

e Space Charter Agree

Space charter agreemen

cross chartering of vessel space 

ocean carriers The puroose of 

access to vessel accommodations 

available There were fifteen ac

at the end of fiscal year 1982 N

the trade between the US a

agreements involve the UUades b

editerranean Europe and the Iv

During fiscal year 1982 

AmerieenFlag Charter Agreem

earners The agreement provid

among the parties that toget

breakhulkOntainer rO PC 
USFar East trades This 

Far East Discussion Agree

efficiency of available s

competitive climate in a 

conditions Final approval w

Charter Agreement No 1

The agreement encompasse

container vessels in these 

trade from the Ivory Coa

approved

d Agreements Cov

The development of inte

role in marine transport du

criteria for approval of confe

first articulated in American 

768039 20 SAR 1196 1

Conference Agreement No 3

in fiscal year 1981 in three 

Nos 6200 20 99888 and 952

the types of factual demon

conference intermodal through

has clearly indicated its full s

services At the same time 
that no rate group would be gran

clear manifestation that the pub

allowing concerted activity as o

intermodal services to the individ

the Commission using the guide

approved intermodal authority 

Philippines North America Conf

Conference Hong gong Independ

At the close of fiscal year 

Agreements having Commission 

intermodal services thirtyon

agreements Out of the total o

both in the United States and for

limited to the United States a

overseas The portion of our tra

intermodal services has reached 

are that it will continue to in

progresses

e Conference and Rat

Conference and ratemaking 

discussion agreement and es

practices by groups of ocean ca
geographic area or trade 

conference and rate agr

usually a major or dominan

whereas rate agreemen

Conference agreements are 

large numbers of member c

collective ratemaking proced

for independent action by in

other hand are typically c

frequently only 2 have 

comparatively democratic 

liberal opportunities for indiv

During the year the Co

conference and rate agreeme

agreementsamendments wer

and 19 were withdrawn by t

Commission At the end of 

agreements were in effect

f Joint Service Agr

Joint service and conso

and separate line or service 

venture The new and sepa
publishes its own tariffs markets it

lading and acts generally as a single 

At the end of fiscal year 19

consortia agreements approved an

virtually all of the US foreign tr

specialized automobile carrier op

services During fiscal year 

significant actions in this area inc

the Johnson Seanstar Joint Serv

between Mexico and US Pacific 

approval to an extension of the 

Service Agreement No 9925 pen

5 Comments by Trade Area

a Trans Atlantic

Depressed world economic 

non conference competition has 

situation in the North Atlant

Northern Europe Another 

competitive situation is the div

ports via Canadian transport s
world economic conditions 

business conditions for fiscal y

b Mediterranean

The carriers serving the 

diverse services that include b

and RORO There are eigh

area and numerous non confe

cargoes move via Mediterrane

Persian Gulf the Middle Eas

there is a keen rivalry betwe

Mediterranean area and those 

trade

c TransPacific

Keen competition rate in

and bilateral arrangements 

continued to characterize the 

The conferences in these tra

competition from independent 

independent action dual rate a

minority of a conference smem

competition srates while still re
d Central and South Am

Conditions in the Central and 

did not change markedly in fiscal 

heavily imbalaneed with siznifica

from the DS While the involved 

of all US trades steps are being 

to upgrade port facilities in order 

containerized traffic As this situ

should expect a significant change 

e Africa

Historically a breakhulk 

containerized services in the tra

shift to take place in the types a

commitments of ports and carrier

facilitating this change With p

carriers to increase the contain

concomitant development of the 

containerized cargo could becom

6 SelfPolicing

Section 15 of the Shipping 

Commission the responsibility 

upon a finding of inadequate self 
General Order 7 Revise

agreements except those be

describing the methods and 

authorities to investigate an

any of the membershio and 

Those ratemaking groups su

Order are required to file wit

cover that group sself polic

preceding sixmonth period 

body self policing rules was a

Appeals for the DCCircuit a

During fiscal year 1982 

achieve full compliance from 

of General Order 7 Revis

agreements to these requir

ratemaking groups with order

should not be cancelled or mo

Commission sself policing rule

conditions of approval relatin

groups that were otherwise in f

other pending agreements relat

the fiscal year
Pursuant to the Commission s

regulations has been conducted an

changes in the in the regulations 

the affected industry of unnec

provide for improved and more ef

7 Rulemaking

Section 35 of the Shipping A

authority to exempt for the fu

Persons subject to the 1916 Sn

such persons from any require

Intereoastal Shipping Act 1933 

not substantially Impair effectiv

or he detrimental to commerc

been reviewing its regulations 

regulation that Imposes an und

end the Commission has continu

authority over agreements to 

clearly necessary and productiv

During fiscal year 1982 

requirements by taking fina

proceedings
Exclusion of routine 

requirements of Gen

Exemption from the 

requirements of agre

administrative or ho

No 81 6

Exemption from the 

requirements of cert

8116

Exemption from the 

requirements of agre

collection compilatio

experience Informati

Exemption from the s

requirements of exclu

interchange agreeme

In addition to the abov

exemptions under section 35 

rulemaking proceedings have be

close of the fiscal year
Modification of the Uniform Me

s

for a third rebuttable presumptio

rule being drafted

A proposed rule to exempt nonex

agreements from the filing requ

adopted by the Commission on S

8 Other Significant Developments

a NVOCC Co Loading Ag

Non vessel operating comm

agreements authorize an NVOCC t

for forwarding in the same Contain

NVOCC Three such agreements w

which encountered strenuous oppos

the trades in which the agreements 

agreements Nos 10435 and 1013

insufficiently justified and the t

considered by the Commission in fis

b USAmazon Discussio

During fiscal year 1982 th

extensions of the US Atlan
US GulfBrazil Amazon B

10410 respectively These 

principal nationalflag c

establishment of cargo 

agreements in these trad

Brazilian law before foreign 

blanket waivers for the 

Brazilianflag carriers Alth

prior extensions and the car

vet achieved concrete resu

shortterm extensions were w

c United States At

Steamship Confe

Agreement No 10424 t

and Hispaniola Steamship Co

trade between US Atlantic 

the Dominican Republic and H

resulted in the consolidation 

all encompassing conferenc

administrative economy and 

the trades

Appendix C summarizes 

fiscal year 1982
The Bureau of Tariffs is resp

domestic tariffs filed with the C

periodic tariff audits to ensure c

rules and regulations In conjuncti

bureau also monitors trade con

commerce of the United States T

the bureau is responsible for the 

rate increases pursuant to the Cos

domestic offshore trades Adm

statutes has also

become an increasingly important 

1 Foreign Commerce

BUREAU 

a AntiRebating Certi

The Shinning Act Amendm

signed into law on June 19 1

Officer of every vessel operatin

foreign commerce file with 

anti rebate certification Gener

of the above certification by t

also file a provision in each of 
policy against the payment 

anti rebate certifications 

October 24 1980 in Docke

their certification for 1980 

not be found in violation of 

The Commission sOrder in 

As a result of this order 37 

Commission staff cancelle

certifications of the balance 

Commission srequirements

b Rulemakings

The Commission sfinal 

81 50 were published on Jun

1982 The effective date sub

to provide time for filing and 

The Commission publi

procedures and requirements 

Docket No 8236 on July 2

are being reviewed

e Controlled Carrie

The Commission continue
carriers as required by the Ocean S

significant restrictions placed on 

controlled by the governments o

legislation provides that lower freig

a period of 30 days after filing 

Commission grants them special 

date As a consequence of this 

renuests were received from 

processed by the staff during fisca

Corporation of the Philippines was 

the Commission on September 1 19

d Tariff Activity Forei

In fiscal year 1982 the numb

or 22 percent over fiscal year 19

the Commission at the end of the 

300 The Commission began a pr

that have been dormant for over 

resulted in the cancellation of 232 

In addition the Commissi

cancelled tariffs on microfiche 

being transferred to government 

year 1982 one million cancelle

microfiche Appendix 1 summ

fiscal year 1982
e Transfer of Fu

During the fiscal yea

under the Bureau of Tariffs 

to the Office of Foreign 

functions involving the a

activities

f Tariffs for Bulk 

The Commission issued 

making the transportation 

containers trailers rail car

exception of LASH or SEAB

of the United States subjec

Shipping Art 1916 Howeve

was stayed until further orde

Docket 82 13 that would ex

carried in eontainer trailers 

from the tariff filing requirem

g Terminal Handlin

The North Atlantic Po

requesting that the Commissi

imposition of terminal hand
operating in the North Atlantic tr

Commission on the ground that no 

statutes had been shown

h TimeVolume Rates an

The Commission concluded 

TimeVolume Rate Contracts T

Carriers and Conferences in the 

States This rulemaking proceedin

culminated in the Commission sad

9 19R2 which prescribes nito

publication recordkeeping reportin

2 DOMESTIC COMMERCE

The Intereoastal Shipping Ac

Shipping Act 1916 require the 

describing the practices of com

offshore trades as well as of 

Commission involvement in for

charged with regulating the lev

commerce from the mainland to 

Hawaii Guam Puerto Rico A

Midway Johnston Wake and North
In order to carry out the 

and practices in these dom

analyzes tariff filings of do

operators rejects improperly 

alternate appropriate acti

permission to waive tariff 

recommendations to the 

activities and general rate in

The Office of Domestic 

tariffs filed by 282 carrie

terminal operators There w

tariff revisions and 7300 term

a Significant Com

US MainlandPu

By Order issued Septem

Service Inc Trailer Marin

Marine Lines Inc and P

Proposed General Rate Incre

Trades the Commission foun

which had become effective 

Authority PRMSA were un
exceeded an average increase of1

5 

the Commission ordered PRMSA to 

increase had been to effect duri

PRMSA was also required to refund 

rate Increase found to be not j

required that these refunds include 

On October 23 1981 PRMSA 

reducing the increase by 25 per

Atlantic ports and 2 percent in 

Atlantic ports PRMS Asrate red

1981 Identical increases of SeaLan

Marine Transport Corporation TM

carriers in the same docket but 

carriers to the same level place

because of competitive pressures 

the Commission sOrder was vaca

Order in the United States Court 

Circuit PRMSA on June ll 198

Relief with the Commission req

requiring refund of freight charg

PRMSA petitioned the Supreme C

of fiscal year 1982 these matters 
In another rate a

the rates of approx

effective November 2

an increase would af

carrier revenues On 

were permitted to bec

were suspended and p

requested authority to 

proposed 29 percent 

cancelled its proposed 

In late December 

by PRMSA SeaLand 

Commission considera

findings and considera

resulted in Commission 

increase applied to its 

Puerto Rico and the 

Puerto Rico and ports 

applied to its operation

Rico and the Virgin Is

between San Juan Pue
In August of 1982 SeaLand 

increase of five percent in its 

ports and ports in Puerto Rico a

in its service between San Jua

Phzabeth New Jersey Thes

SeaLand schief competitors P

rate increases with the Interstate 

US Mainland West 

Matson Navigation Compan

rate increase between US Pa

There were no protests filed ag

review and analysis it was dete

in an unjust or unreasonable rate 

was permitted to become effecti

BUREAU OF HEARIN

The Bureau of Hearings an

Office of Hearing Counsel an O

Offices systematically monitors 

to curtail illegal rebating and o

consignees and other persons su
The Office of Hearing 

formal adjudicatory dockets 

are initiated by the Comm

counsel where interventio

proceedings instituted under 

prosecutorial and settlement 

addition to the formal proc

party the bureau monitors 

ascertain that all issues im

general public as distinguis

litigating parties are adequ

60 such proceedings under 

request furnishes legal advi

special Commission projects 

authorized to participate in 

Commission The bureau r

Office of Investigations and 

appropriate depending on 

compromise or settlement is 

claim in a formal Commission 
The Office of Investigations c

investigations of violations of th

administered by the Commission a

resulting from sue investigations

The District Offices are loca

DC Chiengo New Orleans San F

Suboffices are located in Miam

represent the Commission within 

liaison between the shipping indus

in Washington DC In addition 

shipping statutes and regulations 

field offices conduct compliance 

recervg and reolve informal corn n

vessel operators to determine t

required by the Commission Ihev 

access to Commission nnblie docum

persons

Tlurinn fiscal year 1982 the 

malpractice eases totaling 82935

enrly 65 of the cavil penaltie

against foreign firms Appendix 

civil penalties assessed or settled
At the beginning of 

investigations of all type

investigations initiated durin

hand and scheduled for inv

shipper malpractices rebate

misdescription or misdeelara

rates in US foreign and do

unlicensed ocean freight 

Completed investigations to

end of the fiscal year 

investigative activities

As of the close of fisc

had 57 formal proceedings p

were received and 32 were c

on hand as of September 30 

the staff on more than 225 

the fiscal year

BUREAU OF Cf

1 Financial Responsibility fo

The Commission adm

provisions of three water po
Control Act as amended by th

FransAlaska Pipeline Authorizati

Shelf Lands Aet Amendments of 

delegations of authority from the 

operators are required to maintain 

of their financial ability to meet p

certain other damages resulting 

substances Vessel operators who 

their ability to meet such liability 

waters

The scope of the Commiss

function involves the entire por

industry which either totally or p

States waters The Commission 

environmental standards field enf

matters are accomplished by the E

Customs Service and the US Coas

This proeram provides an inc

without government intervention 

a vessel operator must maintain p

operate in US waters In the e

nrueh to gain by expediting the c

current magnify the area of dam

operator owner or insurer
Pursuant to the above m

keep on file with the Com

surety bonds guarantee

reimbursement to the US G

the limits required by law 

Financial Responsibility P

financial responsibility requ

the US Customs Service and 

with the requirement that 

subject vessels Failure of 

automatic detainment of the 

complied with the law

During fiscal year 1982 

for certificates An additiona

over from fiscal year 1981 

processed and 374 certieate

scrapping sinking etc At 

vessels of all types and flags 

2 Passenger Vessel Financial 

The Commission also ad

89777 46 USC817 d and 
operators of US and foreignfla

more berth or stateroom accomo

ports to establish their financial 

fares in the event of nonperforma

statutorily prescribed liabilities 

passengers or other persons

Certificates are issued once 

evidence of insurance surety 

self insurance A Certificate Pe

evidence of financial responsibil

amount of evidence of financial 

amount of anticipated unearned 

showing of 10000 The 

responsibility required for a Ce

vessel s number of berth or stat

accordance with a schedule contai

Over 100 passenger vessel

performance certificates at the e

million passengers hoarded these 

with no known incidents of fa

compensate passengers for 

Furthermore the Commission i

suffered by passengers without me
During the year 71 appli

new certificates were issued 

applications for two certificat

were revoked reflecting w

completion of scheduled cruise

3 FREIGHT FORWARDERS

Section 44 of the Shippin

authority for the licensing and 

forwarders The ocean freig

persons who in effect hold 

departments for dire Ocean f

arranging for the ocean transpo

by handling the paperwork leg

other incidentals related to s

export is received from the ex

vessel was selected by the forwa

In 1961 Congress found 

forwarders was necessary to 

rebates and to ensure that un

irresponsible persons were pre

Section 44 was enacted at that 
export climate for OS business

lack the expertise to do their own 

The continued maintenance 

ouotifications and financial respo

assured by means of a license is

bond reouired to be maintained 

issued a license need not be rene

noon the number of offices throu

freight forwarding services

Fiscal year 1982 was the 

Commission scompletely revised 

which govern the licensing of i

This was the first extensive revisio

1961 Commission and industry e

rules were required to reflect c

over the last twenty years and 

freight forwarders export shipp

The Commission instituted new 

forwarder sbusiness structure adj

During the fiscal year the C

comply with statutory amendme

Reconciliation Act of 1981 nub
adopted policies which continu

forwarding service free of charg

to allow forwarders who are cs 

forwarder commissions from such 

During fiscal year 1982 the 

for independent ocean freight fo

applications pending from the 

applications were approved two w

S8 incomplete applications were 

were revoked primarily because 

surety bonds required by section 4

In addition to applications fo

Commission received 159 applicati

licenses and other organizational 

etc were carried over from the 

requests were approved during the 

Every few years of an onsite 

as part of the Commissions 

forwarder complies with the prov

the Commission sregulations Du

were reviewed with the following 

sent to licensees in connection w
avoid recurring violations 2 one 

3 58 cases involving violations o

Commission sregulations were ref

and Licensing to the Bureau of H

assessment of appropriate civil pe

were determined to require no form

Other activities during the ye

surety bond actions including ne

cancellation of bonds 2 the r

submitted by forwarders under sec

the review and processing of 31 i

most part monies owed by forward

review of 1551 anti rebate certif

of General order 4 At the end o

ocean freight forwarders represe

fiscal year 1981

ADMINISTRA

The Managing Director is a

administrative programs of the 

Chairman Several offices of 

administrative support of the Coms
The Office of Pers

management programs inc

training and development 

and equal employment oppo

completed implementation 

performance appraisal progr

Act of 1978 In additio

administrative procedures C

During the year the office c

as to their responsibilities 

conduct awards and disc

distribution of information 

restrictions on political ac

training programs and all pe

In the course of its reg

wide range of meuiries and 

maritime industry and the p

informal inquiries the Com

Inquiries and Complaints fo

This office seeks the resolut

liaison between the public an

During fiscal year 1082 a 
information were processed by the 

office complainants were able to 

amount of 127 000 In addition 

regarding state and local consum

referred when the FMC lacks appro

The Office of Energy and Env

compliance with the National Env

Energy Policy and Conservation 

Commission to complete analyse

aspects of all section 15 agreemen

Where Commission action is like

energy conservation or the envi

complete an anlysic of the situatio

and environmental impact state

Commission issued a final rule 

Policv Analysis fO 45 46 

Commission actions categorically 

The rule became effective on Ma

reviewed 298 section 15 agreem

these 256 were categorically exc

while an analysis of the ream

significant impact It was not 

or environmental impact statemen
The Office of Data Syste

efficient management of data an

of the Commission sregulatory 

management systems are ad

certification freight forwarder 

addition systems were maintain

to seniorlevel managers res

performance evaluation as w

vesselcommodity movement da

costs and to reduce inherent log

during fiscal year 1982 to inst

discontinue external computer le

year involved conversion of the 

and Commission mailing systems 

the year the office also produce

selected trade areas for use 

supporting Commission action 

docketed proceedings and in pre

The Office of Administrati

and non personnel services for th

office is responsible for mana

supplies as well as performing 
communication safety contracts 

retrieval An automated system 

implemented during fiscal year 198

The Office of Management Ev

assessing Commission efficiency i

and human resources as well as 

compliance with applicable laws 

the Commission sInspector Gene

charged with uncovering any wast

exist in the Commission During 

formal internal Auditing Manual 

Commission sfinancial control sy

program study regarding the most 

commerce Ongoing activities inc

with the requirements of the 

monitoring public reporting and rec

with other elements of the agency 

resources management plan for the 

The Office of Budget and Fi

Commission sfinancial manageme

optimal utilization of the Commiss

resources The office is charged w

8
and financial policies and pro

an annual budget for submi

Management and Budget T

systems for agency funds 

obligations and receipts for fi


hm

Oaa

DC

or

NO

D COa

1N C

IMPEL
1 Oral Arguments

79 9 82 7

FOR

2 Commission De

7129 79 5

72 35 79 6

73 17 79 7

74 40 80 4

79 9 80 5

79 45 80 6
4 No Review by Commission 

78 1 80 62 80 7

80 20 80 65 80 8

80 57 80 66 81 1

80 60 80 76 81 1

80 61

5 Dockets Remanded to ALs

7129 80 76 818

6 Commission Rulemakings

80 13 81 4 813

80 54 81 16 81 4

80 70 8118 81 4
AGREEMEN

Sections 14b and 15 Ag

including modific

Foreign and Domestic C

Terminals

LaborManagement 

Includes 74 staff init

Conference Reports Sub

Shippers Requests and 

Minutes of Meetings 

SelfPolicing of Confe

Pooling Statements

Operating Reports 

Approved Agreements on 

Conference 

Rate

Joint Conference 

Pooling 

Joint Service 

Sailing 
A

C

Transshipment 

Cooperative Working Agency 

Dual Rate Contract Systems 

Terminals 

Labor Management Approvals an
TARIFF FILING

FOREIGN COMMERCE

Total Number of Tariff 

Total Number of Tariff 

Total Number of Tariffs 

Total Number of Tariffs 

Special Permission App

Granted 

Withdrawn 

Denied 
APP

Con

DOMESTIC COMMERCE

Total Number of Tariff Filings 

Domestic Offshore 

Terminals 

Total Number of Tariff Filings 

Domestic Offshore 

Total Number of Tariffs on Hand 

Domestic Offshore 

Terminals 

Total Number of Tariffs on Hand 

Domestic Offshore 

Terminals 
SPECIAL PERMISSION APPILC

Domestic Offshore 

Granted 

Withdrawn 

Denied 

Pending 

INVESTIGATION AND SUSPEN

Domestic Offshore

Completed

Pending
AP

CIVIL PENALTIES ASS

Kuehne Nagle F 

Daniel F Young 

Trans Overseas 

Rohner Gehrig 

Ideal Cargo

Services 

Alltrans 

Intercontinental 

Transport F

Hapag Lloyd F 

Comp Gen Mar F 

Moller Maersk F 

Harrington Agents

Naviera

for A Bottachi F

Navion F

Atlanttrafik F

Nicaraguense F

Misty Valley Inc

Major Van Lines

Transportation

Services Int lInc

Atlantic Cargo

Services AB F

Imex Int Inc

Alfa Aerofreight

Services Inc
Almar Int l

of Miami FL

Central Gulf

Internationa

China co I

Erskine FF 

Certified C

Seaway Dist

Paulssen S G

Ltd and Pau

S Guice Midw

Chumet Shipp

Cardinal For

Dolphin Freig

Forwarders

ICT Consulta

Kanematsu Gos

TSI Transpor

Services 

Wall Shipping 

Sam Young Ex

Goodyear 

Scindia Steam

Nay Co In

Cosmos Shippi

Ui Shipping terwyk F 

Imes Tours 

Jose Gilberto

Velasquez 
Damar Cargo

Services

Susanne Fontana

Sovereign Int

Dean Forwarding Co

Gulf Caribbean

Marine Lines Inc

Gemini Int

Marquis Surface

Airpac Int l

Alrod Int l

Universal Trans

Corp and

JS Stass Co

AP

C

Int lShipping Co 

Holders Overseas 

Holsum Foods 

Div Honeymead

John Doe

An Attorney 

FESCO F 

VIP Export Import 

Hapag Lloyd F 

WPM International 

Bond International 

BIL Int Corp 

Rocargo 

The Wallace

Companies 

Impex Services 
Enterprise Ship

Wallenius Lines 

Metal Purchasing

Co

ONeill Whita

A R Pradillo

Ecuadorian Line 

World Jet Shippi

Gibbons Int 

American Global 

American Hawaii

Cruises

Rohde 

Liesenfeld

Ramon Arguelles 

Horizon Air 

Freight

John Scalice 

Trans World Inl

Galapagos Lines 

Maurice C Perry 

US Miami In

DMC Shipping 

Miguel del Prad

Inc 

Bremen Internati

Refrigerated Ca

Consolidators
Cargo Express

Customs Brokers

Dorick Navigation

SA F

Lykes Bros SS Co

Tokyo Express Co

Kimura d ba

Cosmos Trading Co

AP

C

TOTAL 2

30

Note F indicates a foreign
FIELD INVE

Investigations Total 

Pending

093081 711 

Opened

FY 1982 611 

Completed

FY 1982 788 

Pending

093082 534 
A

STATEMENT OF APPROPRIA

FOR THE FISCAL YEA

APPROPRIATION

Continuing Resolutions PL 

For necessary expens

Commission includin

5 USC 3109 hire 

and uniforms or allow

by 5 USC 5901 590

1500 shall be ava

representation expen

Public Law 97 257 97th Co

10 1982 Supplemental Ap

increased pay cost 

Appropriation availability 
OBLIGATIONS AND UNOBLIGATED 

Net obligations for sala

fiscal year ended Septem

Unobligated balance retu

STATEMENT OF RECEIPTS DEP

TREASURY FOR THE FISCAL YEAR 

Publications and reprodu

Water pollution applicat

certificate fees

Fines and penalties

Total general fund rece

Receipts are 20551 higher 

Treasury which are in erro