An Act to provide for the regulation of rates or charges by certain State-owned carriers in the foreign commerce of the United States, and for other purposes.
PL 95-483 (H.R.9998), enacted 10/18/1978

PUBLIC LAW 95-483—OCT. 18, 1978 
92 STAT. 1607 
Public Law 95-483 
95th Congress 
An Act 
To provide for the regulation of rates or charges by certain state-owned carriers in 
the foreign commerce of the United States, and for other purposes. 
Oct. 18, 1978 
[H.R. 9998] 
Ocean Shipping 
Act of 1978. 
46 use 842 note. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Ocean Shipping Act of 1978". 
SEC. 2. The first section of the Shipping Act, 1916, as amended (46 
U.S.C. 801), is further amended by inserting the following definition 
of the term "controlled carrier" immediately following the definition 
of the term "common carrier by water": 
"The term 'controlled carrier' means a common carrier by water "Controlled 
operating, offering, or proposing to offer service in the foreign com- carrier." 
merce of the United States which carrier is or whose operating assets 
are directly or indirectly owned or controlled by the government under 
whose registry the vessels of the controlled carrier operate. Ownership 
or control by such government shall be deemed to exist if a majority 
portion of the interest in the carrier is owned or controlled in any 
manner by such government, by any agency of the government, or by 
any person, corporation, or entity controlled by such government. 
Ownership or control shall also be deemed to exist if the government 
has the right to appoint or disapprove the appointment of a majority 
of the directors or the chief operating or executive officer of the 
carrier". 
SEC. 3. Section 18 of the Shipping Act, 1916, as amended (46 U.S.C. 
817), is further amended by adding at the end thereof, the following 
new subsection: 
"(c)(1) No controlled carrier subject to this Act shall maintain 
rates or charges in its tariffs filed with the Commission that are below a 
level which is just and reasonable, nor shall any such carrier establish 
or maintain unjust or unreasonable classifications, rules, or regulations 
in such tariffs. An unjust or unreasonable classification, rule, or regula-
tion means one which results or is likely to result in the carriage or han-
dling of cargo at rates or charges which are below a level which is just 
and reasonable. The Commission *may at any time after notice and 
hearing, disapprove any rates, charges, classifications, rules, or regula-
tions which the controlled carrier has failed to demonstrate to be just 
and reasonable. I n any proceeding under this subsection, the burden 
of proof shall be on the controlled carrier to demonstrate that its rates, 
charges, classifications, rules, or regulations are just and reasonable. 
Rates, charges, classifications, rules, or regulations filed by a controlled 
carrier which have been rejected, suspended, or disapproved by the 
Commission are void, and their use is unlawful. 
"(2) For the purpose of this subsection, in determining whether 
rates, charges, classifications, rules, or regulations by a controlled 
carrier are just and reasonable, the Commission may take into account 
appropriate factors, including, but not limited to, whether: (i) the 
rates or charges which have been filed or which would result from the 
pertinent classifications, rules, or regulations are below a level which 
is fully compensatory to the controlled carrier based upon that carrier's 
Notice and 
hearing. 
92 STAT. 1608 
PUBLIC LAW 95-483—OCT. 18, 1978 
actual costs or upon its constructive costs, which are hereby defined as 
the costs of another carrier, other than a controlled carrier, operating 
similar vessels and equipment in the same or a similar trade; (ii) the 
rates, charges, classifications, rules, or regulations are the same as or 
similar to those filed or assessed by other carriers in the same trade ; 
(iii) the rates, charges, classifications, rules, or regulations are required 
to assure movement of particular cargo in the trade; or (iv) the rates, 
charges, classifications, rules, or regulations are required to maintain 
acceptable continuity, level, or quality of common carrier service to 
or from affected ports. 
"(3) Notwithstanding the provisions of subsection (b)(2) of this 
section, rates, charges, classifications, rules, or regulations of controlled 
carriers shall not, without special permission of the Commission, 
become effective within less than thirty days following the date of 
filing with the Commission. Following the effective date of this 
subsection, each controlled carrier shall, upon the request of the 
Commission, file within twenty days of request, with respect to its 
existing or proposed rates, charges, classifications, rules, or regulations 
a statement of justification which sufficiently details the controlled 
carrier's need and purpose for such rates, charges, classifications, rules, 
or regulations, upon which the Commission may reasonably base its 
determination of the lawfulness thereof. 
"(4) Whenever the Commission is of the opinion that the rates, 
charges, classifications, rules, or regulations riled by a controlled 
carrier may be unjust and unreasonable, the Commission may issue 
an order to the controlled carrier to show cause why such rates, charges, 
classifications, rules, or regulations should not be disapproved. Pending 
a determination as to their lawfulness in such a proceeding, the 
Commission may suspend such rates, charges, classifications, rules, or 
regulations at any time prior to their effective date. In the case of 
any rates, charges, classifications, rules, or regulations which have 
already become effective, the Commission may, upon the issuance of 
an order to show cause, suspend such rates, charges, classifications, 
rules, or regulations on not less than sixty days notice to the controlled 
carrier. No period of suspension hereunder may be greater than one 
hundred and eighty days. Wlienever the Commission has suspended 
any rates, charges, classifications, rules, or regulations under this 
provision, the affected carrier may file new rates, charges, classifica-
tions, rules, or regulations to take effect immediately during the sus-
pension period in lieu of the suspended rates, charges, classifications, 
rules, or regulations: Provided^ however^^ That the Commission may 
reject such new rates, charges, classifications, rules, or regulations if 
it is of the opinion that they are unjust and unreasonable. 
"(5) Concurrently with the publication thereof, the Commission 
shall transmit to the President any order of suspension or final order 
of disapproval of rates, charges, classifications, rules, or regulations of 
a controlled carrier subject to the provisions of this subsection. Within 
ten days after the receipt or the effective date of such Commission 
order, whichever is later, the President may request the Commission in 
writing to stay the effect of the Commission's order if he finds that such 
stay is required for reasons of national defense or foreign policy which 
reasons shall be specified in the report. Notwithstanding any other pro-
vision of law, the Commission shall immediately grant such request by 
the issuance of an order in which the President's request shall be 
described. During any such stay, the President shall, whenever prac-
ticable, attempt to resolve the matter in controversy by negotiation 
with representatives of the applicable foreign governments. 
PUBLIC LAW 95-483—OCT. 18, 1978 
92 STAT. 1609 
"(6) The provisions of this subsection shall not apply to: (i) any 
controlled carrier of a state whose vessels are entitled by a treaty of 
the United States to receive national or most-favored-nation treat-
ment; (ii) any controlled carrier of a state which, on the effective date 
of this subsection, has subscribed to the statement of shipping policy 
contained in note 1 to annex A of the Code of Liberalization of Current 
Invisible Operations, adopted by the Council of the Organization for 
Economic Cooperation and Development; (iii) rates, charges, classifi-
cations, rules, or regulations of any controlled carrier in any particular 
trade which are covered by an agreement approved under section 15 of 
this Act, other than an agreement in which all of the members are 
controlled carriers not otherwise excluded from the provisions of this 
subsection; (iv) rates, charges, classifications, rules, or regulations 
governing the transportation of cargo by a controlled carrier between 
the country by whose government it is owned or controlled, as defined 
herein, and the United States, or any of its districts, territories, or pos-
sessions ; or (v) a trade served exclusively by controlled carriers.". 
SEC. 4. The provisions of this Act, including the amendments made Effective date, 
by this Act, shall become effective thirty days after its date of 46 USC 801 note, 
enactment. 
Approved October 18, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1381 (Coram, on Merchant Marine and Fisheries). 
SENATE REPORT No. 95-1260 (Coram, on Coramerce, Science, and Transportation). 
CONGRESSIONAL RECORD, VoL 124 (1978): 
July 31, considered and passed House. 
Oct. 3, considered and passed Senate.