‘‘(1) maintain a rate or charge in a tariff or service contract, or 
charge or assess a rate, that is below a just and reasonable level; or 
‘‘(2) establish, maintain, or enforce in a tariff or service contract a 
classification, rule, or regulation that results, or is likely to result, in 
the carriage or handling of cargo at a rate or charge that is below a 
just and reasonable level. 
‘‘(b) COMMISSION PROHIBITION.—The Federal Maritime Commission, at 
any time after notice and opportunity for a hearing, may prohibit the publi-
cation or use of a rate, charge, classification, rule, or regulation that a con-
trolled carrier has failed to demonstrate is just and reasonable. 
‘‘(c) BURDEN OF PROOF.—In a proceeding under this section, the burden 
of proof is on the controlled carrier to demonstrate that its rate, charge, classi-
fication, rule, or regulation is just and reasonable. 
‘‘(d) VOIDNESS.—A rate, charge, classification, rule, or regulation that has 
been suspended or prohibited by the Commission is void and its use is unlaw-
ful. 
‘‘§ 40702. Rate standards 
‘‘(a) DEFINITION.—In this section, the term ‘constructive costs’ means the 
costs of another carrier, other than a controlled carrier, operating similar ves-
sels and equipment in the same or a similar trade. 
‘‘(b) STANDARDS.—In determining whether a rate, charge, classification, 
rule, or regulation of a controlled carrier is just and reasonable, the Federal 
Maritime Commission— 
‘‘(1) shall take into account whether the rate or charge that has been 
published or assessed, or that would result from the pertinent classifica-
tion, rule, or regulation, is below a level that is fully compensatory to 
the controlled carrier based on the carrier’s actual costs or constructive 
costs; and 
‘‘(2) may take into account other appropriate factors, including 
whether the rate, charge, classification, rule, or regulation is— 
‘‘(A) the same as, or similar to, those published or assessed by 
other carriers in the same trade; 
‘‘(B) required to ensure movement of particular cargo in the same 
trade; or 
‘‘(C) required to maintain acceptable continuity, level, or quality 
of common carrier service to or from affected ports. 
‘‘§ 40703. Effective date of rates 
‘‘Notwithstanding section 40501(e) of this title and except for service con-
tracts, a rate, charge, classification, rule, or regulation of a controlled carrier 
may not become effective, without special permission of the Federal Maritime 
Commission, until the 30th day after publication.
‘‘§ 40704. Commission review 
‘‘(a) REQUEST FOR JUSTIFICATION.—On request of the Federal Maritime 
Commission, a controlled carrier shall file with the Commission, within 20 
days of the request, a statement of justification that sufficiently details the 
carrier’s need and purpose for an existing or proposed rate, charge, classifica-
tion, rule, or regulation and upon which the Commission may reasonably 
base a determination of its lawfulness. 
‘‘(b) DETERMINATION.—Within 120 days after receipt of information re-
quested under subsection (a), the Commission shall determine whether the 
rate, charge, classification, rule, or regulation may be unjust and unreason-
able. 
‘‘(c) SHOW CAUSE ORDER.—Whenever the Commission is of the opinion 
that a rate, charge, classification, rule, or regulation published or assessed by 
a controlled carrier may be unjust and unreasonable, the Commission shall 
issue an order to the controlled carrier to show cause why the rate, charge, 
classification, rule, or regulation should not be prohibited. 
‘‘(d) SUSPENSION PENDING DETERMINATION.— 
‘‘(1) NOT YET EFFECTIVE.—Pending a determination of the lawfulness 
of a rate, charge, classification, rule, or regulation in a proceeding under 
subsection (c), the Commission may suspend the rate, charge, classifica-
tion, rule, or regulation at any time before its effective date. 
‘‘(2) ALREADY EFFECTIVE.—If a rate, charge, classification, rule, or 
regulation has already become effective, the Commission, on issuance of 
an order to show cause, may suspend the rate, charge, classification, rule, 
or regulation on at least 30 days’ notice to the controlled carrier. 
‘‘(3) MAXIMUM SUSPENSION.—A period of suspension under this sub-
section may not exceed 180 days. 
‘‘(e) REPLACEMENT DURING SUSPENSION.—Whenever the Commission has 
suspended a rate, charge, classification, rule, or regulation under this section, 
the controlled carrier may publish a new rate, charge, classification, rule, or 
regulation to take effect immediately during the suspension in lieu of the sus-
pended rate, charge, classification, rule, or regulation. However, the Commis-
sion may reject the new rate, charge, classification, rule, or regulation if the 
Commission believes it is unjust and unreasonable. 
‘‘§ 40705. Presidential review of Commission orders 
‘‘(a) TRANSMISSION TO PRESIDENT.—The Federal Maritime Commission 
shall transmit to the President, concurrently with publication thereof, each 
order of suspension or final order of prohibition issued under section 40704 
of this title. 
‘‘(b) PRESIDENTIAL REQUEST AND COMMISSION ACTION.—Within 10 days 
after receipt or the effective date of a Commission order referred to in sub-
section (a), the President, in writing, may request the Commission to stay 
the effect of the order if the President finds that the stay is required for rea-
sons of national defense or foreign policy. The reasons shall be specified in 
the request. The Commission shall immediately grant the request by issuing 
an order in which the President’s request shall be described. During a stay, 
the President shall, whenever practicable, attempt to resolve the matter by ne-
gotiating with representatives of the applicable foreign governments. 
‘‘§ 40706. Exceptions 
‘‘This chapter does not apply to— 
‘‘(1) a controlled carrier of a foreign country whose vessels are entitled 
by a treaty of the United States to receive national or most-favored-na-
tion treatment; or 
‘‘(2) a trade served only by controlled carriers. 
‘‘CHAPTER 409—OCEAN TRANSPORTATION 
INTERMEDIARIES 
‘‘Sec. 
‘‘40901.
License requirement. 
‘‘40902.
Financial responsibility. 
‘‘40903.
Suspension or revocation of license. 
‘‘40904.
Compensation by common carriers. 
‘‘§ 40901. License requirement 
‘‘(a) IN GENERAL.—A person in the United States may not act as an ocean 
transportation intermediary unless the person holds an ocean transportation 
intermediary’s license issued by the Federal Maritime Commission. The Com-
mission shall issue a license to a person that the Commission determines to 
be qualified by experience and character to act as an ocean transportation 
intermediary. 
‘‘(b) EXCEPTION.—A person whose primary business is the sale of merchan-
dise may forward shipments of the merchandise for its own account without 
an ocean transportation intermediary’s license. 
‘‘§ 40902. Financial responsibility 
‘‘(a) IN GENERAL.—A person may not act as an ocean transportation 
intermediary unless the person furnishes a bond, proof of insurance, or other 
surety— 
‘‘(1) in a form and amount determined by the Federal Maritime Com-
mission to insure financial responsibility; and 
‘‘(2) issued by a surety company found acceptable by the Secretary of 
the Treasury. 
‘‘(b) SCOPE OF FINANCIAL RESPONSIBILITY.—A bond, insurance, or other 
surety obtained under this section— 
‘‘(1) shall be available to pay any penalty assessed under section 
41109 of this title or any order for reparation issued under section 41305 
of this title;
‘‘(2) may be available to pay any claim against an ocean transpor-
tation intermediary arising from its transportation-related activities— 
‘‘(A) with the consent of the insured ocean transportation inter-
mediary and subject to review by the surety company; or 
‘‘(B) when the claim is deemed valid by the surety company after 
the ocean transportation intermediary has failed to respond to ade-
quate notice to address the validity of the claim; and 
‘‘(3) shall be available to pay any judgment for damages against an 
ocean transportation intermediary arising from its transportation-re-
lated activities, if the claimant has first attempted to resolve the claim 
under paragraph (2) and the claim has not been resolved within a rea-
sonable period of time. 
‘‘(c) REGULATIONS ON COURT JUDGMENTS.—The Commission shall pre-
scribe regulations for the purpose of protecting the interests of claimants, 
ocean transportation intermediaries, and surety companies with respect to the 
process of pursuing claims against ocean transportation intermediary bonds, 
insurance, or sureties through court judgments. The regulations shall provide 
that a judgment for monetary damages may not be enforced except to the ex-
tent that the damages claimed arise from the transportation-related activities 
of the insured ocean transportation intermediary, as defined by the Commis-
sion. 
‘‘(d) RESIDENT AGENT.—An ocean transportation intermediary not domi-
ciled in the United States shall designate a resident agent in the United 
States for receipt of service of judicial and administrative process, including 
subpoenas. 
‘‘§ 40903. Suspension or revocation of license 
‘‘(a) FAILURE TO MAINTAIN QUALIFICATIONS OR TO COMPLY.—The Fed-
eral Maritime Commission, after notice and opportunity for a hearing, shall 
suspend or revoke an ocean transportation intermediary’s license if the Com-
mission finds that the ocean transportation intermediary— 
‘‘(1) is not qualified to provide intermediary services; or 
‘‘(2) willfully failed to comply with a provision of this part or with 
an order or regulation of the Commission. 
‘‘(b) FAILURE TO MAINTAIN BOND, PROOF OF INSURANCE, OR OTHER 
SURETY.—The 
Commission 
may 
revoke 
an 
ocean 
transportation 
intermediary’s license for failure to maintain a bond, proof of insurance, or 
other surety as required by section 40902(a) of this title. 
‘‘§ 40904. Compensation by common carriers 
‘‘(a) CERTIFICATION OF LICENSE AND SERVICES.—A common carrier may 
compensate an ocean freight forwarder for a shipment dispatched for others 
only when the ocean freight forwarder has certified in writing that it holds
an ocean transportation intermediary’s license (if required under section 
40901 of this title) and has— 
‘‘(1) engaged, booked, secured, reserved, or contracted directly with the 
carrier or its agent for space aboard a vessel or confirmed the avail-
ability of the space; and 
‘‘(2) prepared and processed the ocean bill of lading, dock receipt, or 
other similar document for the shipment. 
‘‘(b) DUAL COMPENSATION.—A common carrier may not pay compensation 
for services described in subsection (a) more than once on the same shipment. 
‘‘(c) BENEFICIAL INTEREST SHIPMENTS.—An ocean freight forwarder may 
not receive compensation from a common carrier for a shipment in which the 
ocean freight forwarder has a direct or indirect beneficial interest. A common 
carrier may not knowingly pay compensation on that shipment. 
‘‘(d) LIMITS ON AUTHORITY OF CONFERENCE OR GROUP.—A conference or 
group of two or more ocean common carriers in the foreign commerce of the 
United States that is authorized to agree on the level of compensation paid 
to an ocean freight forwarder may not— 
‘‘(1) deny a member of the conference or group the right, upon notice 
of not more than 5 days, to take independent action on any level of com-
pensation paid to an ocean freight forwarder; or 
‘‘(2) agree to limit the payment of compensation to an ocean freight 
forwarder to less than 1.25 percent of the aggregate of all rates and 
charges applicable under a tariff and assessed against the cargo on which 
the services of the ocean freight forwarder are provided. 
‘‘CHAPTER 411—PROHIBITIONS AND PENALTIES 
‘‘Sec. 
‘‘41101.
Joint ventures and consortiums. 
‘‘41102.
General prohibitions. 
‘‘41103.
Disclosure of information. 
‘‘41104.
Common carriers. 
‘‘41105.
Concerted action. 
‘‘41106.
Marine terminal operators. 
‘‘41107.
Monetary penalties. 
‘‘41108.
Additional penalties. 
‘‘41109.
Assessment of penalties. 
‘‘§ 41101. Joint ventures and consortiums 
‘‘In this chapter, a joint venture or consortium of two or more common 
carriers operating as a single entity is deemed to be a single common carrier. 
‘‘§ 41102. General prohibitions 
‘‘(a) OBTAINING TRANSPORTATION AT LESS THAN APPLICABLE RATES.— 
A person may not knowingly and willfully, directly or indirectly, by means 
of false billing, false classification, false weighing, false report of weight, false 
measurement, or any other unjust or unfair device or means, obtain or at-
tempt to obtain ocean transportation for property at less than the rates or 
charges that would otherwise apply.
‘‘(b) OPERATING CONTRARY TO AGREEMENT.—A person may not operate 
under an agreement required to be filed under section 40302 or 40305 of this 
title if— 
‘‘(1) the agreement has not become effective under section 40304 of this 
title or has been rejected, disapproved, or canceled; or 
‘‘(2) the operation is not in accordance with the terms of the agree-
ment or any modifications to the agreement made by the Federal Mari-
time Commission. 
‘‘(c) PRACTICES IN HANDLING PROPERTY.—A common carrier, marine ter-
minal operator, or ocean transportation intermediary may not fail to estab-
lish, observe, and enforce just and reasonable regulations and practices relat-
ing to or connected with receiving, handling, storing, or delivering property. 
‘‘§ 41103. Disclosure of information 
‘‘(a) PROHIBITION.—A common carrier, marine terminal operator, or 
ocean freight forwarder, either alone or in conjunction with any other person, 
directly or indirectly, may not knowingly disclose, offer, solicit, or receive any 
information concerning the nature, kind, quantity, destination, consignee, or 
routing of any property tendered or delivered to a common carrier, without 
the consent of the shipper or consignee, if the information— 
‘‘(1) may be used to the detriment or prejudice of the shipper, the con-
signee, or any common carrier; or 
‘‘(2) may improperly disclose its business transaction to a competitor. 
‘‘(b) EXCEPTIONS.—Subsection (a) does not prevent providing the informa-
tion— 
‘‘(1) in response to legal process; 
‘‘(2) to the Federal Maritime Commission or an agency of the United 
States Government; or 
‘‘(3) to an independent neutral body operating within the scope of its 
authority to fulfill the policing obligations of the parties to an agreement 
effective under this part. 
‘‘(c) DISCLOSURE
FOR DETERMINING BREACH
OR COMPILING STATIS-
TICS.—An ocean common carrier that is a party to a conference agreement 
approved under this part, a receiver, trustee, lessee, agent, or employee of the 
carrier, or any other person authorized by the carrier to receive informa-
tion— 
‘‘(1) may give information to the conference or any person or agency 
designated by the conference, for the purpose of— 
‘‘(A) determining whether a shipper or consignee has breached an 
agreement with the conference or its member lines; 
‘‘(B) determining whether a member of the conference has 
breached the conference agreement; or
‘‘(C) compiling statistics of cargo movement; and 
‘‘(2) may not prevent the conference or its designee from soliciting or 
receiving information for any of those purposes. 
‘‘§ 41104. Common carriers 
‘‘A common carrier, either alone or in conjunction with any other person, 
directly or indirectly, may not— 
‘‘(1) allow a person to obtain transportation for property at less than 
the rates or charges established by the carrier in its tariff or service con-
tract by means of false billing, false classification, false weighing, false 
measurement, or any other unjust or unfair device or means; 
‘‘(2) provide service in the liner trade that is— 
‘‘(A) not in accordance with the rates, charges, classifications, 
rules, and practices contained in a tariff published or a service con-
tract entered into under chapter 405 of this title, unless excepted or 
exempted under section 40103 or 40501(a)(2) of this title; or 
‘‘(B) under a tariff or service contract that has been suspended 
or prohibited by the Federal Maritime Commission under chapter 
407 or 423 of this title; 
‘‘(3) retaliate against a shipper by refusing, or threatening to refuse, 
cargo space accommodations when available, or resort to other unfair or 
unjustly discriminatory methods because the shipper has patronized an-
other carrier, or has filed a complaint, or for any other reason; 
‘‘(4) for service pursuant to a tariff, engage in any unfair or unjustly 
discriminatory practice in the matter of— 
‘‘(A) rates or charges; 
‘‘(B) cargo classifications; 
‘‘(C) cargo space accommodations or other facilities, with due re-
gard being given to the proper loading of the vessel and the avail-
able tonnage; 
‘‘(D) loading and landing of freight; or 
‘‘(E) adjustment and settlement of claims; 
‘‘(5) for service pursuant to a service contract, engage in any unfair 
or unjustly discriminatory practice in the matter of rates or charges 
with respect to any port; 
‘‘(6) use a vessel in a particular trade for the purpose of excluding, 
preventing, or reducing competition by driving another ocean common 
carrier out of that trade; 
‘‘(7) offer or pay any deferred rebates; 
‘‘(8) for service pursuant to a tariff, give any undue or unreasonable 
preference or advantage or impose any undue or unreasonable prejudice 
or disadvantage;
‘‘(9) for service pursuant to a service contract, give any undue or un-
reasonable preference or advantage or impose any undue or unreasonable 
prejudice or disadvantage with respect to any port; 
‘‘(10) unreasonably refuse to deal or negotiate; 
‘‘(11) knowingly and willfully accept cargo from or transport cargo 
for the account of an ocean transportation intermediary that does not 
have a tariff as required by section 40501 of this title and a bond, insur-
ance, or other surety as required by section 40902 of this title; or 
‘‘(12) knowingly and willfully enter into a service contract with an 
ocean transportation intermediary that does not have a tariff as required 
by section 40501 of this title and a bond, insurance, or other surety as 
required by section 40902 of this title, or with an affiliate of such an 
ocean transportation intermediary. 
‘‘§ 41105. Concerted action 
‘‘A conference or group of two or more common carriers may not— 
‘‘(1) boycott or take any other concerted action resulting in an unrea-
sonable refusal to deal; 
‘‘(2) engage in conduct that unreasonably restricts the use of inter-
modal services or technological innovations; 
‘‘(3) engage in any predatory practice designed to eliminate the par-
ticipation, or deny the entry, in a particular trade of a common carrier 
not a member of the conference, a group of common carriers, an ocean 
tramp, or a bulk carrier; 
‘‘(4) negotiate with a non-ocean carrier or group of non-ocean carriers 
(such as truck, rail, or air operators) on any matter relating to rates 
or services provided to ocean common carriers within the United States 
by those non-ocean carriers, unless the negotiations and any resulting 
agreements are not in violation of the antitrust laws and are consistent 
with the purposes of this part, except that this paragraph does not pro-
hibit the setting and publishing of a joint through rate by a conference, 
joint venture, or association of ocean common carriers; 
‘‘(5) deny in the export foreign commerce of the United States com-
pensation to an ocean freight forwarder or limit that compensation to 
less than a reasonable amount; 
‘‘(6) allocate shippers among specific carriers that are parties to the 
agreement or prohibit a carrier that is a party to the agreement from 
soliciting cargo from a particular shipper, except as— 
‘‘(A) authorized by section 40303(d) of this title; 
‘‘(B) required by the law of the United States or the importing 
or exporting country; or 
‘‘(C) agreed to by a shipper in a service contract;
‘‘(7) for service pursuant to a service contract, engage in any unjustly 
discriminatory practice in the matter of rates or charges with respect to 
any locality, port, or person due to the person’s status as a shippers’ as-
sociation or ocean transportation intermediary; or 
‘‘(8) for service pursuant to a service contract, give any undue or un-
reasonable preference or advantage or impose any undue or unreasonable 
prejudice or disadvantage with respect to any locality, port, or person 
due to the person’s status as a shippers’ association or ocean transpor-
tation intermediary. 
‘‘§ 41106. Marine terminal operators 
‘‘A marine terminal operator may not— 
‘‘(1) agree with another marine terminal operator or with a common 
carrier to boycott, or unreasonably discriminate in the provision of ter-
minal services to, a common carrier or ocean tramp; 
‘‘(2) give any undue or unreasonable preference or advantage or im-
pose any undue or unreasonable prejudice or disadvantage with respect 
to any person; or 
‘‘(3) unreasonably refuse to deal or negotiate. 
‘‘§ 41107. Monetary penalties 
‘‘(a) IN GENERAL.—A person that violates this part or a regulation or 
order of the Federal Maritime Commission issued under this part is liable 
to the United States Government for a civil penalty. Unless otherwise pro-
vided in this part, the amount of the penalty may not exceed $5,000 for each 
violation or, if the violation was willfully and knowingly committed, $25,000 
for each violation. Each day of a continuing violation is a separate violation. 
‘‘(b) LIEN ON CARRIER’S VESSELS.—The amount of a civil penalty im-
posed on a common carrier under this section constitutes a lien on the vessels 
operated by the carrier. Any such vessel is subject to an action in rem to en-
force the lien in the district court of the United States for the district in 
which it is found. 
‘‘§ 41108. Additional penalties 
‘‘(a) SUSPENSION OF TARIFFS.—For a violation of section 41104(1), (2), 
or (7) of this title, the Federal Maritime Commission may suspend any or 
all tariffs of the common carrier, or that common carrier’s right to use any 
or all tariffs of conferences of which it is a member, for a period not to exceed 
12 months. 
‘‘(b) OPERATING UNDER SUSPENDED TARIFF.—A common carrier that ac-
cepts or handles cargo for carriage under a tariff that has been suspended, 
or after its right to use that tariff has been suspended, is liable to the United 
States Government for a civil penalty of not more than $50,000 for each ship-
ment.