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‘‘(3) MARINE TERMINAL OPERATOR SCHEDULES.—The Commission 
shall by regulation prescribe the form and manner in which marine ter-
minal operator schedules authorized by this section shall be published. 
‘‘§ 40502. Service contracts 
‘‘(a) IN GENERAL.—An individual ocean common carrier or an agreement 
between or among ocean common carriers may enter into a service contract 
with one or more shippers subject to the requirements of this part. 
‘‘(b) FILING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Each service contract entered into under this 
section by an individual ocean common carrier or an agreement shall 
be filed confidentially with the Federal Maritime Commission. 
‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to contracts re-
garding bulk cargo, forest products, recycled metal scrap, new assem-
bled motor vehicles, waste paper, or paper waste. 
‘‘(c) ESSENTIAL TERMS.—Each service contract shall include— 
‘‘(1) the origin and destination port ranges; 
‘‘(2) the origin and destination geographic areas in the case of 
through intermodal movements; 
‘‘(3) the commodities involved; 
‘‘(4) the minimum volume or portion; 
‘‘(5) the line-haul rate; 
‘‘(6) the duration; 
‘‘(7) service commitments; and 
‘‘(8) the liquidated damages for nonperformance, if any. 
‘‘(d) PUBLICATION OF CERTAIN TERMS.—When a service contract is filed 
confidentially with the Commission, a concise statement of the essential 
terms specified in paragraphs (1), (3), (4), and (6) of subsection (c) shall 
be published and made available to the general public in tariff format. 
‘‘(e) DISCLOSURE OF CERTAIN TERMS.— 
‘‘(1) DEFINITIONS.—In this subsection, the terms ‘dock area’ and 
‘within the port area’ have the same meaning and scope as in the appli-
cable collective bargaining agreement between the requesting labor or-
ganization and the carrier. 
‘‘(2) DISCLOSURE.—An ocean common carrier that is a party to or 
is otherwise subject to a collective bargaining agreement with a labor 
organization shall, in response to a written request by the labor organi-
zation, state whether it is responsible for the following work at a dock 
area or within a port area in the United States with respect to cargo 
transportation under a service contract:
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‘‘(A) The movement of the shipper’s cargo on a dock area or 
within the port area or to or from railroad cars on a dock area 
or within the port area. 
‘‘(B) The assignment of intraport carriage of the shipper’s 
cargo between areas on a dock or within the port area. 
‘‘(C) The assignment of the carriage of the shipper’s cargo be-
tween a container yard on a dock area or within the port area and 
a rail yard adjacent to the container yard. 
‘‘(D) The assignment of container freight station work and con-
tainer maintenance and repair work performed at a dock area or 
within the port area. 
‘‘(3) WITHIN REASONABLE TIME.—The common carrier shall provide 
the information described in paragraph (2) to the requesting labor or-
ganization within a reasonable period of time. 
‘‘(4) EXISTENCE OF COLLECTIVE BARGAINING AGREEMENT.—This 
subsection does not require the disclosure of information by an ocean 
common carrier unless there exists an applicable and otherwise lawful 
collective bargaining agreement pertaining to that carrier. A disclosure 
by an ocean common carrier may not be deemed an admission or an 
agreement that any work is covered by a collective bargaining agree-
ment. A dispute about whether any work is covered by a collective bar-
gaining agreement and the responsibility of an ocean common carrier 
under a collective bargaining agreement shall be resolved solely in ac-
cordance with the dispute resolution procedures contained in the collec-
tive bargaining agreement and the National Labor Relations Act (29 
U.S.C. 151 et seq.), and without reference to this subsection. 
‘‘(5) EFFECT UNDER OTHER LAWS.—This subsection does not affect 
the lawfulness or unlawfulness under this part or any other Federal or 
State law of any collective bargaining agreement or element thereof, in-
cluding any element that constitutes an essential term of a service con-
tract. 
‘‘(f) REMEDY FOR BREACH.—Unless the parties agree otherwise, the ex-
clusive remedy for a breach of a service contract is an action in an appro-
priate court. The contract dispute resolution forum may not be controlled 
by or in any way affiliated with a controlled carrier or by the government 
that owns or controls the carrier. 
‘‘§ 40503. Refunds and waivers 
‘‘The Federal Maritime Commission, on application of a carrier or ship-
per, may permit a common carrier or conference to refund a portion of the 
freight charges collected from a shipper, or to waive collection of a portion 
of the charges from a shipper, if—
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‘‘(1) there is an error in a tariff, a failure to publish a new tariff, 
or an error in quoting a tariff, and the refund or waiver will not result 
in discrimination among shippers, ports, or carriers; 
‘‘(2) the common carrier or conference, before filing an application 
for authority to refund or waive any charges for an error in a tariff 
or a failure to publish a tariff, has published a new tariff setting forth 
the rate on which the refund or waiver would be based; and 
‘‘(3) the application for the refund or waiver is filed with the Com-
mission within 180 days from the date of shipment. 
‘‘CHAPTER 407—CONTROLLED CARRIERS 
‘‘Sec. 
‘‘40701.
Rates. 
‘‘40702.
Rate standards. 
‘‘40703.
Effective date of rates. 
‘‘40704.
Commission review. 
‘‘40705.
Presidential review of Commission orders. 
‘‘40706.
Exceptions. 
‘‘§ 40701. Rates 
‘‘(a) IN GENERAL.—A controlled carrier may not— 
‘‘(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, 
classification, 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 
unlawful. 
‘‘§ 40702. Rate standards 
‘‘(a) DEFINITION.—In this section, the term ‘constructive costs’ means 
the costs of another carrier, other than a controlled carrier, operating simi-
lar vessels 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 classi-
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fication, rule, or regulation, is below a level that is fully compensatory 
to the controlled carrier based on the carrier’s actual costs or construc-
tive 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 
contracts, 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, classi-
fication, 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 lawful-
ness of a rate, charge, classification, rule, or regulation in a proceeding 
under subsection (c), the Commission may suspend the rate, charge, 
classification, 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.