An Act to amend the Shipping Act, 1916 to provide for licensing independent ocean freight forwarders, and for other purposes.
PL 87-254 (S.1368), enacted 09/19/1961

522 
PUBLIC LAW 87-254-SEPT. 19, 1961 
[75 S T A T 
September 19,1961 
[S. 1368] 
Public Law 87-254 
AN ACT 
To amend the Shipping Act, 1916, to provide for licensing independent ocean 
freight forwarders, and for other purposes. 
S h i p p i n g Act, 
1916, amendment. 
Ocean 
f r e i g h t 
forwarders. 
39 Stat. 728. 
Definitions. 
40 Stat. 903. 
46 u s e 842. 
Licenses. 
Issuance. 
• 9 Stat. 1985. 
46 u s e 1245. 
Conditions, 
Be it enacted hy the Senate and House of Representatwes 
of the 
United States of America in Congress assemhled^ That the first sec-
tion of the Shipping Act, 1916 (46 U.S.C. 801), is amended by adding 
at the end thereof the following new paragraphs: 
"The term 'carrying on the business of forwarding' means the dis-
patching of shipments by any person on behalf of others, by ocean-
going common carriers in commerce from the United States, its Terri-
tories, or j>ossessions to foreign countries, or between the United 
States and its Territories or possessions, or between such Territories 
and possessions, and handling the formalities incident to such ship-
ments. 
"An 'independent ocean freight forwarder' is a person carrying on 
the business of forwarding for a consideration who is not a shipper or 
consignee or a seller or purchaser of shipments to foreign countries, 
nor has any beneficial interest therein, nor directly or indirectly con-
trols or is controlled by such shipper or consignee or by any person 
having such a beneficial interest." 
SEC. 2. The Shipping Act, 1916j is further amended by redesignat-
ing section 44 as section 45, and inserting immediately after section 
43 the following new section: 
"SEC. 44. (a) No person shall engage in carrying on the business 
of forwarding as defined in this Act unless such person holds a license 
issued by the Federal Maritime Commission to engage in such busi-
ness: Provided^ hoioever^ That a person whose primary business is 
the sale of merchandise may dispatch shipments of such merchandise 
without a license. 
"(b) A forwarder's license shall be issued to any qualified applicant 
therefor if it is found by the Commission that the applicant is, or 
will be, an independent ocean freight forwarder as defined in this 
Act and is fit, willing, and able properly to carry on the business of 
forwarding and to conform to the provisions of this Act and the 
requirements, rules, and regulations of the Commission issued there-
under, and that the proposed forwarding business is, or will be, con-
sistent with the national maritime policies declared in the Merchant 
Marine Act, 1936; otherwise such application shall be denied. 
Any 
independent ocean freight forwarder who, on the effective date of this 
Act, is carrying on the business of forwarding under a registration 
number issued by the Commission may continue such business for 
a period of one hundred and twenty days thereafter without a license, 
and if application for such license is made within such period, such 
forwarder may, under such regulations as the Commission shall 
prescribej continue such business until otherwise ordered by the 
Commission. 
"(c) The Commission shall prescribe reasonable rules and regula-
tions to be observed by independent ocean freight forwarders and no 
such license shall be issued or remain in force unless such forwarder 
shall have furnished a bond or other security approved by the Com-
mission in such form and amount as in the opinion of the Commission 
will insure financial responsibility and the supply of the services in 
accordance with contracts, agreements, or arrangements therefor. 
" (d) Licenses shall be effective from the date specified therein, and 
shall remain in effect until suspended or terminated as herein provided. 
Any such license may, upon application of the holder thereof, in the 
discretion of the Commission, be amended or revoked, in whole or in 
75 S T A T . ] 
PUBLIC LAW 87-255-SEPT. 20, 1961 
523 
part, or may upon complaint, or on the Commission's own initiative, 
after notice and hearing, be suspended or revoked for willful failure 
to comply with any provision of this Act, or with any lawful order, 
rule, or regulation of the Commission promulgated thereunder. 
"(e) A common carrier by water may compensate a person carrying ii^'^'"^^"^^"°" °^ 
on the business of forwarding to the extent of the value rendered 
such carrier in connection with any shipment dispatched on behalf of 
others when, and only when, such person is licensed hereunder and 
has performed with respect to such shipment the solicitation and secur-
ing of the cargo for the ship or the booking of, or otherwise arranging 
for space for, such cargo, and at least two of the following services: 
" f 1) The coordination of the movement of the cargo to shipside; 
" (2) The preparation and processing of the ocean Dili of lading; 
"(3) The preparation and processing of dock receipts or 
delivery orders; 
"(4) The preparation and processing of consular documents 
or export declarations; 
"(5) The payment of the ocean freight charges on such ship-
ments : 
Provided^ however^ That where a common carrier by water has paid, ^nXltlon^^ *^°"* 
or has incurred an obligation to pay, either to an ocean freight broker 
or freight forwarder, separate compensation for the solicitation or 
securing of cargo for the ship or the booking of, or otherwise arrang-
ing for space for, such car^o, then such carrier shall not be obligated to 
pay additional compensation for any other forwarding services ren-
dered on the same cargo. Before any such compensation is paid to or 
received by any person carrying on the business of forwarding, such 
person shall, if he is qualified under the provisions of this paragraph 
to receive such compensation, certify in writing to the common carrier 
by water by which the shipment was dispatdied that he is licensed 
by the Federal Maritime Commission as an independent ocean freight 
forwarder and that he performed the above specified services with 
respect to such shipment. 
Such carrier shall be entitled to rely on 
sucn certification unless it knows that the certification is incorrect." 
Approved September 19, 1961. 
Public Law 87-255 
AN ACT 
To amend the Federal Airport Act so as to extend the time for making grants 
[H. R. 8102] 
under the provisions of such Act, and for other purposes. 
September 20, 1961 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assefnbled, That section 4 of the Ac^^l^endmen't"'^* 
Federal Airport Act (49 U.S.C. 1103) is amended by inserting " ( a ) " 
69 stat?4'4i" ' 
immediately after "SEC. 4." and by adding at the end thereof the 
following new subsection: 
"Announcement of Program 
"(b) It shall be the duty of the Administrator to make public by 
January 1 of each year the proposed program of airport development 
intended to be undertaken during the fiscal year next ensuing, and 
he may revise such program to the extent he finds necessary to accom-
plish the purposes of this Act."