Surface Freight Forwarder Deregulation Act of 1986
PL 99-521 (S.1124), enacted 10/22/1986

PUBLIC LAW 99-521—OCT. 22, 1986 
100 STAT. 2993 
Public Law 99-521 
99th Congress 
An Act 
To amend title 49, United States Code, to reduce regulation of surface freight 
forwarders, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Surface Freight Forwarder Deregu-
lation Act of 1986". 
SEC. 2. PURPOSE. 
This Act is part of the continuing effort by Congress to reduce 
burdensome and unnecessary government regulations and to ensure 
the competitiveness and efficacy of transportation services of sur-
face freight forwarders in the United States. 
SEC. 3. FINDINGS. 
The Congress finds that— 
(1) a safe, sound, and competitive surface freight forwarder 
industry is important to the national transportation system; 
(2) the statutes governing Federal regulation of the freight 
forwarder industry are outdated and must be revised to reflect 
present and future transportation needs and realities; 
(3) protective regulation heis resulted in anticompetitive pric-
ing and has restricted the range of price and service options 
available to shippers; 
(4) in order to reduce the uncertainty experienced by the 
Nation's transportation industries, the Interstate Commerce 
Commission's remaining responsibilities for the regulation of 
surface freight forwarders should be eliminated in accordance 
with this Act; and 
(5) legislative and resulting changes should be implemented 
with the least amount of disruption consistent with achieving 
the reforms enacted. 
SEC. 4. DEFINITIONS. 
Section 10102 of title 49, United States Code, is amended as 
follows: 
(1) COMMON CARRIER.—In paragraph (4), insert "household 
goods" before "freight forwarder". 
(2) FREIGHT FORWARDER.—In paragraph (9), after and below 
subpar£igraph (C), insert the following new sentence: 
"Such term does not include a person using transportation of an 
air carrier subject to the Federal Aviation Act of 1958.". 
(3) 
HOUSEHOLD GOODS FREIGHT FORWARDER.—Redesignate 
paragraphs (12) through (30), and any references thereto, £is 
paragraphs (13) through (31), respectively, and insert after para-
graph (11) the following new paragraph: 
Oct. 22, 1986 
[S. 1124] 
Surface Freight 
Forwarder 
Deregulation 
Act of 1986. 
Transportation. 
Commerce and 
trade. 
49 u s e 10101 
note. 
49 u s e 10101 
note. 
49 u s e 10101 
note. 
49 u s e app. 1301 
note. 
.".•^••»ocj| bloff©; 
M 
100 STAT. 2994 
PUBLIC LAW 99-521—OCT. 22, 1986 
"(12) 'household goods freight forwarder' means a freight 
forwarder of one or more of the following items: household 
goods, unaccompanied baggage, or used automobiles.". 
SEC. 5. INTERSTATE COMMERCE COMMISSION ADMINISTRATION. 
..'^B'^.:c^9 
(a) NOTICE OF REMOVAL OF OPERATING RESTRICTIONS.—Section 
msn .m 
10328(bX2) of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarder". 
(b) SERVICE OF NOTICE IN COMMISSION PROCEEDINGS.—Section 
10329 of title 49, United States Code, is amended— 
(1) in subsection (aX2) by inserting "household goods" before 
',/ , 
"freight forwarder"; 
;LI>^J 
(2) in subsection (cX3) by inserting "household goods" before 
I0tt)i >'.' *
*
t 
"freight forwarder" each place it appears; and 
a^o/i 
(3) in subsection (d) by inserting "household goods" before 
morm^fi 
"freight forwarder". 
SEC. 6. JURISDICTION. 
'" 
(a) LIMITATION ON JURISDICTION OVER PROCUREMENT OF MOTOR 
VEHICLE TRANSPORTATION.—Section 10521(a) of title 49, United 
Ki'^j '>v' 
States Code, is amended by inserting after "transportation" the 
• 
second place it appears ", except by a freight forwarder (other than 
a household goods freight forwarder),". 
(b) EXEMPT MOTOR VEHICLE TRANSPORTATION.—Section 10523 of 
title 49, United States Code, is amended— 
(1) in subsection (aXlXBXiii) by inserting "household goods" 
before "freight forwarder"; 
(2) in subsection (aXlXC) by inserting "household goods" 
before "freight forwarder"; 
(3) in subsection (aX2) by inserting "household goods" before 
"freight forwarder"; 
(4) in subsection (bXlXBXiv) by inserting "household goods" 
before "freight forwarder"; and 
(5) in subsection (bX2) by inserting "household goods" before 
"freight forwarder" each place it appears. 
(c) LIMITATION ON GENERAL JURISDICTION OVER FREIGHT FOR-
WARDERS.—Section 10561 of title 49, United States Code, is amended 
by inserting "household goods" before "freight forwarder" each 
place it appears. 
(d) EXEMPT FREIGHT FORWARDER SERVICE.—(1) Section 10562 of 
title 49, United States Code, is repealed. 
(2) The section analysis of chapter 105 of title 49, United States 
Code, is amended by striking 
,. > 
"10562. Exempt freight forwarder service." 
,,^ '-
and inserting in lieu thereof 
• 'tin 
"10562. Repealed.". 
" 4 
SEC. 7. RATES, TARIFFS, AND VALUATIONS. 
(a) AUTHORITY TO ENTER INTO CONTRACTS WITH CERTAIN CAR-
RIERS.—Section 10703(aX4XE) of title 49, United States Code, is 
amended by inserting "household goods" before "freight forwarder". 
(b) AUTHORITY OF COMMISSION.—Section 10704 of title 49, United 
States Code, is amended— 
(1) in subsection (bXlXC) by inserting "household goods" 
before "freight forwarder"; 
imi 
PUBLIC LAW 99-521—OCT. 22, 1986 
100 STAT. 2995 
-' 
(2) in subsection (bX3) by inserting "household goods" before 
^ 
"freight forwarder"; and 
(3) in subsection (bX4) by inserting "household goods" before 
"freight forwarder" and "freight forwarding, respectively", 
(c) RATE AGREEMENTS; ANTI-TRUST LAWS.—Section 10706 of title 
49, United States Code, is amended— 
(1) in subsection (a)(2XA) by striking "(cXlXB)-(E)" and insert-
ing in lieu thereof "(dXlXBHE)"; and 
; 
(2) in subsection (dXlXE) by striking "Freight" and inserting 
' 
in lieu thereof "Household goods freight". 
'(d) INVESTIGATION AND SUSPENSION OF RATES.—Section 10708 of 
title 49, United States Code, is amended— 
(1) in subsection (dXl) by inserting "household goods" before 
^ 
"freight forwarder''; and 
' - *
• * -S'' '• ^ 
(2) in subsection (dX2) by inserting "household goods" before 
"freight forwarders" each place it appears. 
(e) SPECIAL PASSENGER RATES.—Section 10722(dX2) of title 49, 
United States Code, is amended by inserting "household goods" 
before "freight forwarder". 
(f) SPECIAL RATES.—Section 10725 of title 49, United States Code, is 
amended— 
(1) in subsection (b) by inserting "household goods" before 
.!':ctH c i : 
"freight forwarders''; and 
(2) in subsection (c) by inserting "household goods" before 
"freight forwarder". 
(g) RATES AND LIABILITY BASED ON VALUE.—Section 10730 of title 
49, United States Code, is amended— 
(1) in the last sentence of subsection (a) by inserting "by a 
household goods freight forwarder" after "Commission" the 
first place it appears; and 
(2) in subsection (b)— 
*;,^, 
(A) by inserting "or a freight forwarder" after "title" the 
first place it appears, 
, ^.; 
(B) by inserting ", with respect to a motor carrier," after 
g,,j. 
"including", and 
(C) by inserting "or freight forwarder" after "carrier" the 
^^ - 
last 5 places it appears. 
(h) PROHIBITION AGAINST DISCRIMINATION.—Section 10741(c) of 
title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarder" each place it appears. 
(i) PAYMENT OF RATES.—Section 10743(bX2) of title 49, United 
States Code, is amended by inserting "household goods" before 
"freight forwarder". 
(j) LIMITATION ON USE OF COMMON CARRIERS.—(1) Section 10749(b) 
of title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarder" each place it appears. 
(2) The heading of section 10749 of title 49, United States Code, is 
amended 
by 
inserting 
"household 
goods" 
before 
"freight 
forwarders". 
(3) The item relating to section 10749 in the section analysis of 
chapter 107 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarders". 
(k) GENERAL TARIFF REQUIREMENTS.—Section 10762(aX2) of title 
49, United States Code, is amended by inserting "household goods" 
before "freight forwarder". 
(1) TRAFFIC AGREEMENTS.— 
i; 
100 STAT. 2996 
PUBLIC LAW 99-521—OCT. 22, 1986 
g j 
»tt. 
s)' 
(1) HOUSEHOLD GOODS FREIGHT FORWARDERS.—Section 10766 of 
title 49, United States Code, is amended by inserting "household 
£•!' goods" before "freight forwarder" each place it appears. 
(2) CONTINUING AUTHORITY OF DEREGULATED FREIGHT FOR-
:4i WARDERS TO CONTRACT.—Section 10766 of title 49, United States 
Code, is further amended by redesignating subsection (c), and 
any reference thereto, £is subsection (d) and by inserting after 
subsection (b) the following new subsection: 
"(c) AUTHORITY OF FREIGHT FORWARDERS TO ENTER INTO CON-
TRACTS.—A freight forwarder (other than a household goods freight 
forwarder) providing service which, on the day before the date of the 
enactment of the Surface Freight Forwarder Deregulation Act of 
1986, would have been service subject to the jurisdiction of the 
49 use 10561. 
Commission under subchapter IV of chapter 105 of this title may 
contract with— 
"(1) a rail carrier, 
"(2) a water common carrier providing transportation subject 
' t o 
the Shipping Act, 1916 (46 U.S.C. App. 801-842) or the 
Intercoastal Shipping Act, 1933 (46 U.S.C. App. 843-848), 
p.j 
"(3) a motor common carrier providing transportation subject 
to the jurisdiction of the Commission under subchapter II of 
49 use 10521. 
si< such chapter, 
"(4) a motor contract carrier of property providing transpor-
tation subject to the jurisdiction of the Commission under such 
subchapter II, and 
"(5) a shipper.". 
, ^ , , j ^ . . . , „ . 
? 
SEC. 8. LICENSING. 
(a) PERMITS.—(1) Section 10923 of title 49, United States Code, is 
amended by inserting "households goods" before "freight for-
warder" each place it appears. 
(2) The heading of section 10923 of title 49, United States Code, is 
amended 
by 
inserting 
"household 
goods" 
before 
"freight 
forwarders". 
(3) The item relating to section 10923 in the section analysis of 
chapter 109 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarders". 
(b) EFFECTIVE PERIOD OF PERMITS.—Section 10925 of title 49, 
United States Code, is amended by inserting "household goods" 
before "freight forwarder" each place it appears. 
(c) TRANSFERS OF PERMITS.—Section 10926 of title 49, United 
States Code, is amended by inserting "household goods" before 
"freight forwarder" each place it appears. 
(d) SECURITY.—(1) Section 10927(c)(1) of title 49, United States 
Code, is amended by inserting "household goods" before "freight 
forwarder" each place it appears. 
(2) Section 10927(c)(2) of title 49, United States Code, is amended— 
(A) by inserting "household goods" before "freight forwarder" 
the first place it appears, 
(B) by inserting or a freight forwarder" after "permit", and 
(C) by striking under this subtitle". 
(e) LIMITATIONS ON PERMITS.—Section 10930(b) of title 49, United 
States Code, is amended by inserting "household goods" before 
"freight forwarder" each place it appears. 
(f) AUTHORIZING ABANDONMENT OF SERVICE.—(1) Section 10933 of 
title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarder" each place it appears. . - «> ... 
PUBLIC LAW 99-521—OCT. 22, 1986 
100 STAT. 2997 
(2) The heading of section 10933 of title 49, United States Code, is 
amended 
by inserting 
''household 
goods" 
before 
"freight 
forwarder". 
(3) The item relating to section 10933 in the section analysis of 
chapter 109 of title 49, United States Code, is amended by inserting 
"household goods'' before * 'freight forwarder''. 
SEC. 9. OPERATIONS OF CARRIERS. 
(a) PROVIDING TRANSPORTATION AND SERVICE.—Section 11101(b) of 
title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarders". 
(b) SERVICE.—(1) Section 11127 of title 49, United States Code, is 
amended by inserting "household goods" before "freight forwarder" 
and "freight forwarders" each place they appear. 
(2) The heading of section 11127 of title 49, United States Code, is 
amended 
by inserting 
"household 
goods" 
before 
"freight 
forwarders". 
(3) The item relating to section 11127 in the section analysis of 
chapter 111 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarders". 
(c) REPORTS AND RECORDS.—Section 11141(1) of title 49, United 
States Code, is amended by inserting "household goods" before 
"freight forwarder". 
SEC. 10. FINANCE. 
(a) LIMITATION ON OWNERSHIP OF OTHER CARRIERS.—Section 11323 
of title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarder" each place it appears. 
(b) CONFORMING AMENDMENTS.—(1) The heading of section 11323 
of title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarders". 
(2) The item relating to section 11323 in the section analysis of 
chapter 113 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarders". 
SEC. 11. FEDERAL-STATE RELATIONS. 
(a) ICC AUTHORITY OVER INTERSTATE TRANSPORTATION.—Section 
11501 of title 49, United States Code, is amended— 
(1) in subsection (a) by striking "carrier" and inserting in lieu 
thereof "household goods freight forwarder"; and 
(2) by adding at the end thereof the following new subsection: 
"(g) 
PREEMPTION 
OF STATE 
REGULATION OF FREIGHT 
FOR-
WARDERS.— 
"(1) GENERAL RULE.—Subject to paragraph (2) of this subsec-
tion, no State or political subdivision thereof and no interstate 
agency or other political agency of two or more States shall 
enact or enforce any law, rule, regulation, standard, or other 
provision having the force and effect of law relating to inter-
state rates, interstate routes, or interstate services of any 
freight forwarder. 
"(2) CONTINUATION OF HAWAII'S AUTHORITY.—Nothing in this 
Hawaii, 
subsection and the amendments made by the Surface Freight 
Forwarder Deregulation Act of 1986 shall be construed to affect 
the authority of the State of Hawaii to continue to regulate a 
motor carrier operating within the State of Hawaii.". 
71-19A 0 - 89 - A : QL. 3 Part4 
100 STAT. 2998 
PUBLIC LAW 99-521—OCT. 22, 1986 
(b) 
STATE 
AUTHORITY 
TO 
ENJOIN 
ABANDONMENTS.—Section 
11505(b) of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarder". 
SEC. 12. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES. 
(a) GENERAL AUTHORITY.—(1) Section 11701(a) of title 49, United 
States Code, is amended by striking "or broker" each place it 
appears and inserting in lieu thereof ", broker or freight forwarder". 
(2) Section 11701(b) of title 49, United States Code, is amended by 
inserting ", or freight forwarder" before the period at the end of the 
first sentence. 
(b) RIGHTS AND REMEDIES OF INJURED PERSONS.—Section 11705 
of 
title 49, United States Code, is amended— 
(1) in subsection (a) by inserting "or a freight forwarder" after 
. ^ "title"; 
r , „ | 
(2) in subsection (b)(1)— 
* • 
(A) by inserting "or a freight forwarder" after "title" the 
first place it appears, and 
(B) by inserting "or the applicable freight forwarder rate, 
as the case may be" after "title" the second place it ap-
pears; and 
(3) in subsection (b)(3) by inserting "or a freight forwarder" 
after "title". 
(c) LIMITATION ON COURT ACTIONS.—Section 11706(a) of title 49, 
United States Code, is amended— 
(1) by inserting "or a freight forwarder" after "title"; and 
• 
(2) by inserting "or freight forwarder" after "carrier" the 
' 
second place it appears. 
(d) LIABILITY UNDER RECEIPTS AND BILLS OF LADING.—Section 
'11707(a) of title 49, United States Code, is amended— 
(1) in paragraph (1)— 
(A) by inserting "and a freight forwarder" after "title" 
1-0 B'ii¥.t* the first place it appears, 
^niiF 8 : 
(B) by inserting "or freight forwarder" after "carrier" the 
first place it appears in the second sentence, 
(C) by inserting ", except in the case of a freight for-
warder," after "and" in the third sentence, and 
'!Oil->?>H- 
(D) by inserting "or freight forwarder" after "carrier" in 
the fourth sentence; and 
(2) in paragraph (2) by striking "subject to this subtitle". 
(e) PRIVATE ENFORCEMENT OF LICENSES.—(1) Section 11708(a) of 
title 49, United States Code, is amended by inserting "household 
. goods" before "freight forwarder". 
(2) The heading of section 11708 of title 49, United States Code, is 
_ amended 
by 
inserting 
"household 
goods" 
before 
"freight 
forwarder". 
(3) The item relating to section 11708 in the section analysis of 
,' chapter 117 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarder". 
SEC. 13. CIVIL AND CRIMINAL PENALTIES. 
(a) ADDITIONAL RATE AND DISCRIMINATION VIOLATIONS.—Section 
jte'.v'.si 
. 11904(d)(1) of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarder" each place it appears. 
(b) ABANDONMENT OF SERVICE.—(1) Section 11908 of title 49, 
= United States Code, is amended by inserting "household goods" 
before "freight forwarder" each place it appears. 
PUBLIC LAW 99-521—OCT. 22, 1986 
100 STAT. 2999 
(2) The heading of section 11908 of title 49, United States Code, is 
amended 
by 
inserting 
"household 
goods" 
before 
"freight 
forwarder". 
(3) The item relating to section 11908 in the section analysis of 
chapter 119 of title 49, United States Code, is amended by inserting 
"household goods" before "freight forwarder". 
' /-" " 
(c) RECORDKEEPING AND REPORTING VIOLATIONS.—Section 11909(d) 
of title 49, United States Code, is amended by inserting "household 
goods" before "freight forwarder" each place it appears. 
(d) UNLAWFUL DISCLOSURE OF INFORMATION.—Section 11910(a)(4) 
,5,^, /.J 
,-
of title 49, United States Code, is amended by inserting "household 
' ' \f^"'-: 
goods" before "freight forwarder" each place it appears. 
• • ' •' 
SEC. 14. LIMITATION ON STATUTORY CONSTRUCTION. 
49 USC 10101 
Nothing in this Act (including any amendment made by this Act) 
shall be construed to limit or otherwise affect the authority of the 
Secretary of Transportation to regulate a freight forwarder and the 
transportation the freight forwarder uses (whether or not such 
transportation is provided by a carrier subject to the jurisdiction of 
the Interstate Commerce Commission under chapter 105 of title 49, 
United States Code). 
.., 
49 use 10501 et 
SEC. 15. EFFECTIVE DATE. 
4?USC 10102 
This Act shall take effect sixty days after the date of the enact- 
"°^-
ment of this Act. 
t Approved October 22, 1986. 
J 
t'fv 
LEGISLATIVE HISTORY—S. 1124: 
SENATE REPORTS: No. 99-120 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD: 
Vol. 131 (1985): Nov. 4, considered and passed Senate. 
Vol. 132 (1986): Sept. 30, considered and passed House, amended. 
Oct. 8, Senate concurred in House amendment.