An Act to amend the Intercoastal Shipping Act, 1933, and for other purposes.
PL 95-475 (H.R.6503), enacted 10/18/1978

92 STAT. 1494 
PUBLIC LAW 95-475—OCT. 18, 1978 
Public Law 95-475 
95th Congress 
An Act 
Oct. 18. 1978 
To amend the Intercoastal 
Shipping Act, 1933, and for other purposes. 
[H.R. 6503] 
Intercoastal 
Shipping Act, 
1933, 
amendment. 
"General 
increase 
in rates." 
"General 
decrease 
in rates." 
Hearing. 
Publication in 
Federal Register. 
Guidelines. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the first sec-
tion of the Intercoastal Shipping Act, 1933 (46 U.S.C. 843), is 
amended by inserting "(1)" immediately before "The term"; and 
by adding at the end thereof the following: 
"(2) The term 'general increase in rates' means any change in rates, 
fares, or charges which will (A) result in an increase in not less than 
60 per centum of the total rate, fare, or charge items in the tariffs per 
trade of any common carrier by water in intercoastal commerce; and 
(B) directly result in an increase in gross revenues of such carrier 
for the particular trade of not less than 3 per centum. 
" (3) The term 'general decrease in rates' means any change in rates, 
fares, or charges which will (A) result in a decrease in not less than 
50 per centum of the total rate, fare, or charge items in the tariffs per 
trade of any common carrier by water in intercoastal commerce; and 
(B) directly result in a decrease in gross revenue of such carrier for 
the particular trade of not less than 3 per centum.". 
SEC. 2. The second paragraph of section 2 of the Intercoastal Ship-
ping Act, 1933 (46 U.S.C. 844), is amended— 
(1) by striking out ''''Provided^'' and inserting in lieu thereof 
the following: ''''Provided^ That no general increase in rates or 
general decrease in rates shall take effect before the close of the 
sixtieth day after the day on which such general increase in rates 
or general decrease in rates is posted and filed with the Commis-
sion : Provided further^''; and 
(2) by inserting "or sixty days" immediately after "thirty days" 
in the second proviso thereto. 
SEC. 3. Section 3 of the Intercoastal Shipping Act, 1933 (46 U.S.C. 
845), is amended— 
(1) by inserting "(a)" immediately before "Whenever" at the 
beginning of the first paragraph thereof; 
(2) by amending subsection (a) (as so designated by paragraph 
(1)) by— 
(A) striking out "complaint" each place it appears therein 
and inserting in lieu thereof "protest"; 
(B) striking out the colon after "practice" and inserting 
in lieu thereof a period; and 
(C) striking out the proviso and inserting in lieu thereof 
the following: 
"The Commission shall not order a hearing pursuant to this subsec-
tion, on its own motion or upon protest, unless the Commission pub-
lishes in the Federal Register the reasons, in detail, why it considers 
such a hearing to be necessary and the specific issues to be resolved by 
such hearing. For purposes of facilitating the administration of this 
Act, the Commission shall, within one year after the effective date of 
this sentence, by regulation prescribe guidelines for the determination 
of what constitutes a just and reasonable rate of return or profit for 
common carriers by water in intercoastal commerce. After the regula-
PUBLIC LAW 95-475—OCT. 18, 1978 
92 STAT. 1495 
tions referred to in the preceding sentence are initially prescribed, the 
Commission shall from time to time thereafter review such regula-
tions and make such amendments thereto as may be appropriate."; 
(3) by inserting " ( b ) " immediately before "Pending" at the 
beginning of the second paragraph thereof; 
(4) by amending subsection (b) (as so designated by paragraph 
(3)) b y -
(A) inserting ", except as provided in subsection 
(c)," 
immediately before "from time to time'' in the first sentence 
thereof; 
(B) striking out "four months" and inserting "one hun-
dred and eighty days" in lieu thereof in the first sentence 
thereof; 
(C) striking out "and decide the same as speedily as pos-
sible" at the end of the last sentence thereof; and 
(D) inserting at the end thereof the following new sen-
tences : 
"Notwithstanding any other provision of law, the Commission shall 
complete such hearing under this section within sixty days; the initial 
decision resulting therefrom, if any, shall be submitted in writing to 
the Commission within one hundred and twenty days; and the Com-
mission shall issue a final decision thereon within one hundred and 
eighty days. The sixty-day, one hundred and twenty-day, and one 
hundred and eighty-day periods referred to in the preceding sentence 
shall each begin on the day on which such rate, fare, charge, classifica-
tion, regulation, or practice first takes effect or, in the case of suspended 
matter, shall begin on the day on which such matter would have 
otherwise gone into effect. However, the Commission may, in its dis-
cretion and for good cause, extend the time period or suspension 
period for a period of not more than sixty days, if three or more Com-
missioners agree to such an extension. If such extension is granted, the 
Connnission shall report in writing to Congress within ten days from 
the granting of such extension together with— 
" (A) a full explanation of the reasons for the extension, 
"(B) the issues involved in the matter before the Commission, 
"(C) the names of the personnel of the Commission working on 
such matter, and 
" ( D ) a record of how each Commissioner voted on the extension. 
If a final decision is not issued by the Commission within the one 
hundred and eighty day period, or by the end of any extension period, 
such rate, fare, charge, classification, regulation, or practice shall, for 
purposes of this section, thereafter be deemed to be just and reasonable. 
However, if the Commission finds that it is unable to issue a final 
<lecision within such period or within such extension due to delays 
which are directly attributable to the proponent of such rate, charge, 
classification, regulation, or practice, the Commission may disapprove 
such rate, fare, charge, classification, regulation, or practice, upon the 
expiration of such period or extension. This provision shall not pre-
clude any remedies available pursuant to section 22 of the Shipping 
Act of 1016. Notwithstanding any other provision of law. in providing 
46 USC 821. 
a hearing for the purposes of this Act. it shall be adequate to provide 
an opportunity for the submission of all evidence in written form, 
followed by an opportunity for briefs, written statements, or confer-
ences of the parties. Any such conference may be chaired by an indi-
vidual Commissioner, an administrative law ]udge, or any designated 
employee of the Commission."; 
92 STAT. 1496 
PUBLIC LAW 95-475—OCT. 18, 1978 
Refunds. 
46 use 821. 
Effective date. 
46 u s e 843 note. 
(5) by adding at the end thereof the following new subsection : 
"(c)(1) Notwithstanding any olher provision of this section, the 
Commission may not suspend— 
"(A) any tariff scliedule or service which extends to any addi-
tional port, actual service at the rates of the carrier involved for 
similar service already in effect at the nearest port of call to sucli 
additional port; or 
"(B) the operation of that portion of any changed rate, fare, 
or charge representing an increase or decrease of 5 per centum or 
less and filed as part of a general increase in rates or a general 
decrease in rates, except that the aggregate of such changes exempt 
from suspension shall not exceed 5 per centum during any period 
of twelve consecutive months; nothing in this subparagraph shall 
be construed as establishing a presumption that any increase or 
decrease in excess of 5 per centum is not just and reasonable, or 
that any increase or decrease less than 5 per centum is just and 
reasonable. 
"(2) If the Commission finds, as a result of any proceeding under 
this section with respect to a general increase in rates, that any unsus-
pended portion of the increase is not just and reasonable, the Com-
mission shall order the carrier involved to refund to any person who 
was charged on the basis of such general increase an amount equal to 
that portion thereof found to be not just and reasonable plus interest 
on such amount computed on the basis of the average of the prime rate 
charged by major banks, as published by the Board of Governors of 
the Federal Reserve System, during the period to which the refund 
applies.". 
SEC. 4. Section 4 of the Intercoastal Shipping Act, 19.33 (46 ILS.C. 
845a) is amended by changing the period at the end thereof to a colon, 
and inserting thereafter the following: '•'•Provided further^ That upon 
such finding of unjustness or unreasonableness in a proceeding insti-
tuted by a complainant pursuant to the provisions of section 22 of the 
Shipping Act, 1916, the Commission shall direct full reparation to the 
complainant of the difference between the charge collected and the just 
and reasonable rate, fare, or charge, plus interest on such amount 
computed on the basis of the average of the prime rate charged by 
major banks, as published by the Board of Governors of the Federal 
Reserve System, during the period to which the reparation applies.". 
SEC. 5. This Act shall take effect ninety days after enactment. 
Approved October 18, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-474 (Comm. on Merchant Marine and Fisheries). 
SENATE REPORT No. 95-1240 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
May 8, considered and passed House. 
Oct. 3, considered and passed Senate.