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. 
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‘‘(3) MAXIMUM SUSPENSION.—A period of suspension under this 
subsection 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 suspended rate, charge, classification, rule, or regulation. However, 
the Commission may reject the new rate, charge, classification, rule, or reg-
ulation 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 subsection (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 reasons of national defense or foreign policy. The reasons shall be speci-
fied 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 negotiating with representatives of the applicable foreign govern-
ments. 
‘‘§ 40706. Exceptions 
‘‘This chapter does not apply to— 
‘‘(1) a controlled carrier of a foreign country whose vessels are enti-
tled by a treaty of the United States to receive national or most-fa-
vored-nation 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 trans-
portation intermediary’s license issued by the Federal Maritime Commis-
sion. The Commission shall issue a license to a person that the Commission 
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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 mer-
chandise 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 
Commission 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 adequate 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 extent that the damages claimed arise from the transportation-related 
activities of the insured ocean transportation intermediary, as defined by the 
Commission. 
‘‘(d) RESIDENT AGENT.—An ocean transportation intermediary not domi-
ciled in the United States shall designate a resident agent in the United 
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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 
Federal Maritime Commission, after notice and opportunity for a hearing, 
shall suspend or revoke an ocean transportation intermediary’s license if the 
Commission 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 
availability 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 compensa-
tion 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 no-
tice of not more than 5 days, to take independent action on any level 
of compensation 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 
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