Ocean Shipping Reform Act of 1998
PL 105-258 (S.414), enacted 10/14/1998

112 STAT. 1902 
PUBLIC LAW 105-258—OCT. 14, 1998 
Public Law 105-258 
105th Congress 
An Act 
Oct. 14, 1998 
To amend the Shipping Act of 1984 to encourage competition in international 
[S. 414] 
shipping and growth of United States exports, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
Ocean Shipping 
the United States of America in Congress assembled, 
Reform Act of 
1998. 
SECTION 1. SHORT TITLE. 
1701 note^^ 
This Act may be cited as the "Ocean Shipping Reform Act 
of 1998". 
46 u s e app. 
SEC. 2. EFFECTIVE DATE. 
Except as otherwise expressly provided in this Act, this Act 
and the amendments made by this Act take effect May 1, 1999. 
TITLE I—AMENDMENTS TO THE 
SHIPPING ACT OF 1984 
SEC. 101. PURPOSE. 
Section 2 of the Shipping Act of 1984 (46 U.S.C. App. 1701) 
is amended by— 
(1) striking "and" after the semicolon in paragraph (2); 
(2) striking "needs." in paragraph (3) and inserting "needs; 
and"; 
(3) adding at the end thereof the following: 
"(4) to promote the growth and development of United 
States exports through competitive and efficient ocean transpor-
tation and by placing a greater reliance on the marketplace.". 
SEC. 102. DEFINITIONS. 
Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) 
is amended by— 
(1) striking "the government under whose registry the ves-
sels of the carrier operate;" in paragraph (8) and inserting 
"a government;"; 
(2) striking paragraph (9) and inserting the following: 
"(9) 'deferred rebate' means a return by a common carrier 
of any portion of freight money to a shipper as a consideration 
for that shipper giving all, or any portion, of its shipments 
to that or any other common carrier over a fixed period of 
time, the pajrment of which is deferred beyond the completion 
of service for which it is paid, and is made only if the shipper 
has agreed to make a jPurther shipment or shipments with 
that or any other common carrier."; 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1903 
(3) striking paragraph (10) and redesignating paragraphs 
(11) through (27) as paragraphs (10) through (26); 
(4) striking "in £in unfinished or semifinished state that 
require special hemdhng moving in lot sizes too large for a 
container," in peiragraph (10), as redesignated; 
(5) striking "paper board in rolls, and paper in rolls." in 
paragraph (10) as redesignated and inserting "paper aind paper 
board in rolls or in pallet or skid-sized sheets."; 
(6) striking "conference, other than a service contract or 
contract based upon time-volume rates," in paragraph (13) as 
redesignated and inserting "agreement"; 
(7) striking "conference." in paragraph (13) as redesignated 
and inserting "agreement and the contract provides for a 
deferred rebate arrangement."; 
(8) striking "carrier." in paragraph (14) as redesignated 
and inserting "carrier, or in connection with a common carrier 
and a water carrier subject to subchapter II of chapter 135 
of title 49, United States Code."; 
(9) striking paragraph (16) as redesignated and redesignat-
ing paragraphs (17) through (26) as redesignated as paragraphs 
(16) through (25), respectively; 
(10) striking paragraph (17), as redesignated, and inserting 
the following: 
"(17) 'ocean transportation intermediary' means an ocean 
freight forwarder or a non-vessel-operating common carrier. 
For purposes of this paragraph, the term— 
"(A) 'ocean freight forwarder' means a person that— 
"(i) in the United States, dispatches shipments 
from the United States via a common carrier and books 
or otherwise arranges space for those shipments on 
behalf of shippers; and 
"(ii) processes the documentation or performs 
related activities incident to those shipments; and 
"(B) 'non-vessel-operating common carrier' means a 
common carrier that does not operate the vessels by which 
the ocean transportation is provided, and is a shipper in 
its relationship with an ocean common carrier."; 
(11) striking paragraph (19), as redesignated and inserting 
| 
the following: 
"(19) 'service contract' means a written contract, other than 
a bill of lading or a receipt, between one or more shippers 
and an individual ocean common carrier or an agreement 
between or among ocean common carriers in which the shipper 
or shippers makes a commitment to provide a certain volume 
or portion of cargo over a fixed time period, and the ocean 
common carrier or the agreement commits to a certain rate 
or rate schedule and a defined service level, such as assured 
space, transit time, port rotation, or similar service features. 
The contract may also specify provisions in the event of non-
performance on the part of any party."; and 
(12) striking paragraph (21), as redesignated, and inserting 
the following: 
"(21)'shipper'means— 
"(A) a cargo owner; 
"(B) the person for whose account the ocean transpor-
tation is provided; 
"(C) the person to whom delivery is to be made; 
\ 
112 STAT. 1904 
PUBLIC LAW 105-258—OCT. 14, 1998 
"(D) a shippers' association; or 
"(E) an ocean transportation intermediary, as defined 
in paragraph (17)(B) of this section, that accepts respon-
sibility for payment of all charges applicable under the 
tariff or service contract.". 
SEC. 103. AGREEMENTS WITHIN THE SCOPE OP THE ACT. 
(a) OCEAN COMMON CARRIERS.—Section 4(a) of the Shipping 
Act of 1984 (46 U.S.C. App. 1703(a)) is amended by— 
(1) striking "operators or non-vessel-operating common car-
riers;" in paragraph (5) and inserting "operators;"; 
(2) striking and" in paragraph (6) and inserting "or"; and 
(3) striking paragraph (7) and inserting the following: 
"(7) discuss and agree on any matter related to service 
contracts.". 
(b) MARINE TERMINAL OPERATORS.—Section 4(b) of that Act 
(46 U.S.C. App. 1703(b)) is amended by— 
(1) striking "(to the extent the agreements involve ocean 
transportation in the foreign commerce of the United States)"; 
(2) striking "and" in pEiragraph (1) and inserting "or"; and 
(3) striking "arrangements." in paragraph (2) and inserting 
"arrangements, to the extent that such agreements involve 
ocean transportation in the foreign commerce of the United 
States.". 
SEC. 104. AGREEMENTS. 
(a) IN GENERAL.—Section 5 of the Shipping Act of 1984 (46 
U.S.C. App. 1704) is amended by— 
(1) striking subsection (b)(8) and inserting the following: 
"(8) provide that any member of the conference may take 
independent action on any rate or service item upon not more 
than 5 calendar days' notice to the conference ana that, except 
for exempt commodities not published in the conference taxin, 
the conference will include the new rate or service item in 
its tariff for use by that member, effective no later than 5 
calendar days after receipt of the notice, and by any other 
member that notifies the conference that it elects to adopt 
the independent rate or service item on or after its effective 
date, in lieu of the existing conference tariff provision for that 
rate or service item; 
(2) redesignating subsections (c) through (e) as subsections 
(d) through (f); and 
(3) inserting after subsection (b) the following: 
"(c) OCEAN COMMON CARRIER AGREEMENTS.—^An ocean common 
carrier agreement may not— 
'(1) prohibit or restrict a member or members of the agree-
ment from engaging in negotiations for service contracts with 
1 or more shippers; 
"(2) require a member or members of the agreement to 
disclose a negotiation on a service contract, or the terms and 
conditions of a service contract, other than those terms or 
conditions required to be published under section 8(c)(3) of 
this Act; or 
"(3) adopt mandatory rules or requirements affecting the 
right of an agreement member or agreement members to nego-
tiate and enter into service contracts. 
An agreement may provide authority to adopt voluntary guidelines 
relating to the terms and procedures of an agreement member's 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1905 
or agreement members' service contracts if the guidelines explicitly 
state the right of members of the agreement not to follow the 
guidelines. These guidelines shall be confidentially submitted to Confidentiality, 
the Commission.", 
(b) APPLICATION.— 
(1) Subsection (e) of section 5 of that Act, as redesignated, 
46USC app. 
is amended by striking "this Act, the Shipping Act, 1916, and 1704. 
the Intercoastal Shipping Act, 1933, do" and inserting "this 
Act does"; and 
(2) Subsection (f) of section 5 of that Act, as redesignated, 
is amended by— 
(A) striking "and the Shipping Act, 1916, do" and 
inserting "does"; 
(B) striking "or the Shipping Act, 1916,"; and 
(C) inserting "or are essential terms of a service con-
tract" after "tariff". 
SEC. 105. EXEMPTION FROM ANTITRUST LAWS. 
Section 7 of the Shipping Act of 1984 (46 U.S.C. App. 1706) 
is amended by— 
(1) inserting "or publication" in paragraph (2) of subsection 
(a) after "filing"; 
(2) striking "or" at the end of subsection (b)(2); 
(3) striking "States." at the end of subsection (b)(3) and 
inserting "States; or"; and 
(4) adding at the end of subsection (b) the following: 
"(4) to any loyalty contract.". 
SEC. 106. TARIFFS. 
(a) IN GENERAL.—Section 8(a) of the Shipping Act of 1984 
(46 U.S.C. App. 1707(a)) is amended by— 
(1) inserting "new assembled motor vehicles," after "scrap," 
in paragraph (1); 
(2) striking "file with the Commission, and" in paragraph 
(1); 
(3) striking "inspection," in paragraph (1) and inserting 
"inspection in an automated tariff system, ; 
(4) striking "tariff filings" in paragraph (1) and inserting 
"tariffs"; 
(5) striking "freight forwarder" in paragraph (1)(C) and 
inserting "transportation intermediary, as defined in section 
3(17)(A),"; 
(6) striking "and" at the end of paragraph (1)(D); 
(7) striking "loyalty contract," in paragraph (1)(E); 
(8) striking "agreement." in paragraph (1)(E) and inserting 
"agreement; and"; 
(9) adding at the end of paragraph (1) the following: 
"(F) include copies of any loyalty contract, omitting 
the shipper's name.'; and 
(10) striking paragraph (2) and inserting the following: 
"(2) Tariffs shall be made available electronically to any 
person, without time, quantity, or other limitation, through 
appropriate access from remote locations, and a reasonable 
charge may be assessed for such access. No charge may be 
assessed a Federal agency for such access.". 
(b) SERVICE CONTRACTS.—Subsection (c) of that section is 
amended to read as follows: 
"(c) SERVICE CONTRACTS.— 
112 STAT. 1906 
PUBLIC LAW 105-258—OCT. 14, 1998 
Confidentiality. 
Public 
information. 
"(1) IN GENERAL.—^An individual ocean common carrier or 
an agreement between or among ocean common carriers may 
enter into a service contract with one or more shippers subject 
to the requirements of this Act. The exclusive remedy for a 
breach of a contract entered into under this subsection shall 
be an action in an appropriate court, unless the parties other-
wise agree. In no case may the contract dispute resolution 
forum be controlled by or in any way affiliated with a controlled 
carrier as defined in section 3(8) of this Act, or by the govern-
ment which owns or controls the carrier. 
"(2) FILING REQUIREMENTS.—Except for service contracts 
dealing with bulk CEirgo, forest products, recycled metal scrap, 
new assembled motor vehicles, waste paper, or paper waste, 
each contract entered into under this subsection by an individ-
ual ocean common carrier or an agreement shall be filed con-
fidentially with the Commission. Each service contract shall 
include the following essential terms— 
"(A) the origin and destination port ranges; 
"(B) the origin and destination geographic areas in 
the case of through intermodal movements; 
"(C) the commodity or commodities involved; 
"(D) the minimum volume or portion; 
"(E) the line-haul rate; 
"(F) the duration; 
"(G) service commitments; and 
"(H) the liquidated damages for nonperformance, if 
any. 
"(3) PUBLICATION OF CERTAIN TERMS.—When a service con-
tract is filed confidentially with the Commission, a concise 
statement of the essential terms described in paragraphs 2 
(A), (C), (D), and (F) shall be published and made available 
to the general public in tariff format. 
"(4) DISCLOSURE OF CERTAIN TERMS.— 
"(A) An ocean common carrier, which is a party to 
or is subject to the provisions of a collective bargaining 
agreement with a labor organization, shall, in response 
to a written request by such labor organization, state 
whether it is responsible for the following work at dock 
areas and within port areas in the United States with 
respect to cargo transportation under a service contract 
described in paragraph (1) of this subsection— 
"(i) the movement of the shipper's cargo on a dock 
area or within the port area or to or from redlroad 
cars on a dock area or within the port area; 
"(ii) the assignment of intraport carriage of the 
shipper's cargo between areas on a dock or within 
the port area; 
"(iii) the assignment of the carriage of the shipper's 
cargo between a container yard on a dock area or 
within the port area and a rail yard adjacent to such 
container yard; and 
"(iv) the assignment of container freight station 
work and container maintenance and repair work per-
formed at a dock area or within the port area. 
"(B) The common carrier shall provide the information 
described in subparagraph (A) of this paragraph to the 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1907 
requesting labor organization within a reasonable period 
of time. 
"(C) This pEiragraph requires the disclosure of informa-
tion by an ocean common carrier only if there exists an 
applicable and otherwise lawful collective bargaining agree-
ment which pertains to that carrier. No disclosure made 
by an ocean common carrier shall be deemed to be an 
admission or agreement that any work is covered by a 
collective bargaining agreement. Any dispute regarding 
whether any work is covered by a collective bargaining 
agreement and the responsibility of the ocean common 
carrier under such agreement shall be resolved solely in 
accordance with the dispute resolution procedures con-
tained in the collective bargaining agreement and the 
National Labor Relations Act, and without reference to 
this paragraph. 
"(D) Nothing in this paragraph shall have any effect 
on the lawfulness or unlawfulness under this Act, the 
National Labor Relations Act, the Taft-Hartley Act, the 
Federal Trade Commission Act, the antitrust laws, or any 
other Federal or State law, or any revisions or amendments 
thereto, of any collective bargaining agreement or element 
thereof, including any element that constitutes an essential 
term of a service contract under this subsection. 
"(E) For purposes of this paragraph the terms 'dock 
area' and 'within the port area' shall have the same mean-
ing and scope as in the applicable collective bargaining 
agreement between the requesting labor organization and 
the carrier.". 
(c) RATES.—Subsection (d) of that section is amended by— 
(1) striking the subsection caption and inserting "(d) TARIFF 
RATES.—"; 
(2) striking "30 days after filing with the Commission." 
in the first sentence and inserting "30 calendar days after 
publication,"; 
(3) inserting "calendar" after "30" in the next sentence; 
and 
(4) striking "publication and filing with the Commission." 
in the last sentence and inserting "pubucation.". 
(d) REFUNDS.—Subsection (e) of that section is amended by— 
(1) striking "tariff of a clerical or administrative nature 
or an error due to inadvertence" in paragraph (1) and inserting 
a comma; and 
(2) striking "file a new tariff," in paragraph (1) and insert-
ing "publish a new tariff, or an error in quoting a tariff,"; 
(3) striking "refund, filed a new tariff with the Commission" 
in paragraph (2) and inserting "refund for an error in a tariff 
or a failure to publish a tariff, published a new tariff; 
(4) inserting "and" at the end of paragraph (2); and 
(5) striking paragraph (3) and redesignating paragraph 
(4) as paragraph (3). 
(e) MARINE TERMINAL OPERATOR SCHEDULES.—Subsection (f) 
of that section is amended to read as follows: 
"(f) MARINE TERMINAL OPERATOR SCHEDULES.—A marine termi-
nal operator may make available to the public, subject to section 
10(d) of this Act, a schedule of rates, regulations, and practices, 
including Hmitations of liability for cargo loss or damage, pertaining 
112 STAT. 1908 
PUBLIC LAW 105-258—OCT. 14, 1998 
46 use app. 
1707. 
Publication. 
Deadline. 
to receiving, delivering, handling, or storing property at its msirine 
terminal. Any such schedule made available to the public shall 
be enforceable by an appropriate court as an implied contract with-
out proof of actual knowledge of its provisions.". 
(f) AUTOMATED TARIFF SYSTEM REQUIREMENTS; FORM.—Section 
8 of that Act is amended by adding at the end the following: 
"(g) REGULATIONS.—^The Commission shall by regulation pre-
scribe the requirements for the accessibility and accuracy of auto-
mated tariff systems established under this section. The Commis-
sion may, after periodic review, prohibit the use of any automated 
tariff system that fails to meet tne requirements established under 
this section. The Commission may not require a common carrier 
to provide a remote terminal for access under subsection (a)(2). 
The Commission shall by regulation prescribe the form and manner 
in which marine terminal operator schedules authorized by this 
section shall be published.". 
SEC. 107. AUTOMATED TARIFF FIUNG AND INFORMATION SYSTEM. 
Section 502 of the High Seas Driftnet Fisheries Enforcement 
Act (46 U.S.C. App. 1707a) IS repealed. 
SEC. 108. CONTROLLED CARRIERS. 
Section 9 of the Shipping Act of 1984 (46 U.S.C. App. 1708) 
is amended by— 
(1) striking "service contracts filed with the Commission" 
in the first sentence of subsection (a) and inserting "service 
contracts, or charge or assess rates,"; 
(2) striking "or medntain" in the first sentence of subsection 
(a) and inserting "maintain, or enforce"; 
(3) striking "disapprove" in the third sentence of subsection 
(a) and inserting "prohibit the publication or use of; and 
(4) striking "filed by a controlled carrier that have been 
rejected, suspended, or disapproved by the Commission" in 
the last sentence of subsection (a) and inserting "that have 
been suspended or prohibited by the Commission"; 
(5) striking "may take into account appropriate factors 
including, but not limited to, whether—" in subsection (b) and 
inserting "shall take into account whether the rates or charges 
which have been published or assessed 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 actual costs or upon its 
constructive costs. For purposes of the preceding sentence, the 
term 'constructive costs' means the costs of another carrier, 
other than a controlled carrier, operating similar vessels and 
equipment in the same or a similar trade. The Commission 
may also take into account other appropriate factors, including 
but not limited to, whether—"; 
(6) striking paragraph (1) of subsection (b) and redesignat-
ing paragraphs (2), (3), and (4) as paragraphs (1), (2), and 
(3), respectively; 
(7) striking "filed" in peiragraph (1) as redesignated and 
inserting "published or assessed"; 
(8) striking "filing with the Commission." in subsection 
(c) and inserting "publication."; 
(9) striking "DISAPPROVAL OF RATES.—" in subsection (d) 
and inserting "PROHIBITION OF RATES.—Within 120 days after 
the receipt of information requested by the Commission under 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1909 
this section, the Commission shall determine whether the rates, 
charges, classifications, rules, or regulations of a controlled 
carrier may be unjust and unreasonable."; 
(10) striking "filed" in subsection (d) and inserting "pub-
lished or assessed"; 
(11) striking "may issue" in subsection (d) and inserting 
"shall issue"; 
(12) striking "disapproved." in subsection (d) and inserting 
"prohibited."; 
(13) striking "60" in subsection (d) and inserting "30"; 
(14) inserting "controlled" after "affected" in subsection (d); 
(15) striking "file" in subsection (d) and inserting "publish"; 
(16) striking "disapproval" in subsection (e) and inserting 
"prohibition"; 
(17) inserting "or" after the semicolon in subsection (f)(1); 
(18) striking paragraphs (2), (3), and (4) of subsection (f); 
and 
(19) redesignating paragraph (5) of subsection (f) as para-
graph (2). 
SEC. 109. PROHIBITED ACTS. 
(a) Section 10(b) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(b)) is amended by— 
(1) striking paragraphs (1) through (3); 
(2) redesignating paragraph (4) as paragraph (1); 
(3) inserting after paragraph (1), as redesignated, the fol-
lowing: 
"(2) provide service in the liner trade that— 
"(A) is not in accordance with the rates, charges, classi-
fications, rules, and practices contained in a tariff published 
or a service contract entered into under section 8 of this 
Act unless excepted or exempted under section 8(a)(1) or 
16 of this Act; or 
"(B) is under a tariff or service contract which has 
been suspended or prohibited by the Commission under 
section 9 of this Act or the Foreign Shipping Practices 
Act of 1988 (46 U.S.C. App. 1710a);"; 
(4) redesignating paragraphs (5) and (6) as paragraphs 
(3) and (4), respectively; 
(5) striking "except for service contracts," in paragraph 
(4), as redesignated, and inserting "for service pursuant to 
a tariff,"; 
(6) striking "rates;" in paragraph (4)(A), as redesignated, 
and inserting "rates or charges;"; 
(7) inserting after paragraph (4), as redesignated, the fol-
lowing: 
"(5) for service pursuant to a service contract, engage in 
any unfair or unjustly discriminatory practice in the matter 
of rates or charges with respect to any port;"; 
(8) redesignating paragraphs (7) and (8) as paragraphs 
(6) and (7), respectively; 
(9) striking paragraph (6) as redesignated and inserting 
the following: 
"(6) use a vessel or vessels in a particular trade for the 
purpose of excluding, preventing, or reducing competition by 
driving another ocean common carrier out of that trade;"; 
112 STAT. 1910 
PUBLIC LAW 105-258—OCT. 14, 1998 
(10) striking paragraphs (9) through (13) and inserting 
the following: 
"(8) for service pursuant to a tariff, give any undue or 
unreasonable preference or advantage or impose any undue 
or unreasonable prejudice or disadvantage; 
"(9) for service pursuant to a service contract, give any 
undue or unreasonable preference or advantage or impose any 
undue or unreasonable prejudice or disadvantage with respect 
to any port; 
"(10) unreasonably refuse to deal or negotiate;"; 
(11) redesignating paragraphs (14), (15), and (16) as para-
graphs (11), (12), and (13), respectively; 
(12) striking "a non-vessel-operating common carrier" in 
paragraphs (11) and (12) as redesignated and inserting "an 
ocean transportation intermediary"; 
(13) striking "sections 8 and 23" in paragraphs (11) and 
(12) as redesignated aind inserting "sections 8 and 19"; 
(14) striking "or in which an ocean transportation inter-
mediary is listed as an affiliate" in paragraph (12), as redesig-
nated; 
(15) striking "Act;" in paragraph (12), as redesignated, 
and inserting "Act, or with an affiliate of such ocean transpor-
tation intermediary;" 
(16) striking "paragraph (16)" in the matter appearing after 
paragraph (13), as redesignated, and inserting "paragraph (13)"; 
and 
(17) inserting "the Commission," after "United States," in 
(b) Section io(c) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(c)) is amended by— 
(1) striking "non-ocean carriers" in paragraph (4) and 
inserting "non-ocean carriers, unless such negotiations and any 
resulting agreements are not in violation of the antitrust laws 
and are consistent with the purposes of this Act"; 
(2) striking "freight forwarder" in paragraph (5) and insert-
ing "transportation intermediary, as defined by section 3(17)(A) 
of this Act,"; 
(3) striking "or" at the end of paragraph (5); 
(4) striking "contract." in paragraph (6) and inserting "con-
tract;"; and 
(5) adding at the end the following: 
"(7) for service pursuant to a service contract, engage in 
any unjustly discriminatory practice in the matter of rates 
or charges with respect to any locality, port, or persons due 
to those persons' status as shippers' associations or ocean 
transportation intermediaries; or 
"(8) for service pursuant to a service contract, give any 
imdue or unreasonable preference or advantage or impose any 
undue or unreasonable prejudice or disadvantage with respect 
to any locality, port, or persons due to those persons' status 
as 
shippers' 
associations 
or ocean 
transportation 
inter-
(c) Section 10(d) of the Shipping Act of 1984 (46 U.S.C. App. 
1709(d)) is amended by— 
(1) striking "fireight forwarders," and inserting "transpor-
tation intermediaries,"; 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1911 
(2) striking "freight forwarder," in paragraph (1) and insert-
ing "transportation intermediary,"; 
(3) striking "subsection (b)(ll), (12), and (16)" and inserting 
"subsections (b)( 10) and (13)"; and 
(4) adding at the end thereof the following: 
"(4) No marine terminal operator may give any undue 
or unreasonable preference or advantage or impose any undue 
or unreasonable prejudice or disadvantage with respect to any 
person. 
"(5) The prohibition in subsection (b)(13) of this section 
applies to ocean transportation intermediaries, as defined by 
section 3( 17)(A) of this Act". 
SEC. 110. COMPLAINTS, INVESTIGATIONS, REPORTS, AND REPARA-
TIONS. 
Section 11(g) of the Shipping Act of 1984 (46 U.S.C. App. 
1710(g)) is amended by— 
(1) striking "section 10(b)(5) or (7)" and inserting "section 
10(b)(3) or (6)"; and 
(2) striking "section 10(b)(6)(A) or (B)" and inserting "sec-
tion 10(b)(4)(A) or (B).". 
SEC. 111. FOREIGN SHIPPING PRACTICES ACT OF 1988. 
Section 10002 of the Foreign Shipping Practices Act of 1988 
(46 U.S.C. App. 1710a) is amended by— 
(1) striking " *non-vessel-operating common carrier'," in sub-
section (a)(1) and inserting "'ocean transportation 
inter-
mediary',"; 
(2) striking "forwarding and" in subsection (a)(4); 
(3) striking "non-vessel-operating common carrier" in sub-
section (a)(4) and inserting "ocean transportation intermediary 
services and"; 
(4) striking "freight forwarder," in subsections (c)(1) and 
(d)(1) and inserting "transportation intermediary,"; 
(5) striking "filed with the Commission," in subsection 
(e)(1)(B) and inserting "and service contracts,"; 
(6) inserting "gind service contracts" after "tariffs" the sec-
ond place it appears in subsection (e)(1)(B); and 
(7) strikmg "(b)(5)" each place it appears in subsection 
(h) and inserting "(b)(6)". 
SEC. 112. PENALTIES. 
(a) Section 13(a) of the Shipping Act of 1984 (46 U.S.C. App. 
1712(a)) is amended by adding at the end thereof the following: 
"The amount of any penalty imposed upon a common carrier under 
this subsection shall constitute a lien upon the vessels operated 
by that common carrier and any such vessel may be libeled therefore 
in the district court of the United States for the district in which 
it may be found.". 
(b) Section 13(b) of the Shipping Act of 1984 (46 U.S.C. App. 
1712(b)) is amended by— 
(1) striking "section 10(b)(1), (2), (3), (4), or (8)" in para-
graph (1) and insertin^r "section 10(b)(1), (2), or (7)"; 
(2) by redesignatmg paragraphs (4), (5), and (6) as para-
graphs (5), (6), and (7), respectively; 
(3) inserting before paragraph (5), as redesignated, the 
following: 
112 STAT. 1912 
PUBLIC LAW 105-258—OCT. 14, 1998 
"(4) If the Commission finds, after notice and an oppor-
tunity for a hearing, that a common carrier has failed to supply 
information ordered to be produced or compelled by subpoena 
under section 12 of this Act, the Commission may request 
that the Secretary of the Treasury refuse or revoke any clear-
ance required for a vessel operated by that common carrier. 
Upon request by the Commission, the Secretary of the Treasury 
shall, with respect to the vessel concerned, refuse or revoke 
any clearance required by section 4197 of the Revised Statutes 
of the United States (46 U.S.C. App. 91)."; and 
(4) striking "pguragraphs (1), (2), and (3)" in paragraph 
(6), as redesignated, and inserting "paragraphs (1), (2), (3), 
and (4)". 
(c) Section 13(f)(1) of the Shipping Act of 1984 (46 U.S.C. 
App. 1712(f)(1)) is amended by— 
(1) striking "or (b)(4)" and inserting "or (b)(2)"; 
(2) striking "(b)(1), (4)" and inserting "(b)(1), (2)"; and 
(3) adding at the end thereof the following "Neither the 
Commission nor any court shall order any person to pay the 
difference between the amount billed and agreed upon in writ-
ing with a common carrier or its agent and the amount set 
forth in any tariff or service contract by that common c£irrier 
for the transportation service provided.". 
SEC. 113. REPORTS AND CERTIFICATES. 
Section 15 of the Shipping Act of 1984 (46 U.S.C. App. 1714) 
is amended by— 
(1) striking "and certificates" in the section heading; 
(2) striking "(a) REPORTS.—" in the subsection heading 
for subsection (a); and 
(3) striking subsection (b). 
SEC. 114. EXEMPTIONS. 
Section 16 of the Shipping Act of 1984 (46 U.S.C. App. 1715) 
is amended by striking "substantially impair effective regulation 
by the Commission, be unjustly discriminatory, result in a substan-
tial reduction in competition, or be detrimental to commerce." and 
inserting "result in substantial reduction in competition or be det-
rimental to commerce.". 
SEC. 115. AGENCY REPORTS AND ADVISORY COMMISSION. 
Section 18 of the Shipping Act of 1984 (46 U.S.C. App. 1717) 
is repealed. 
SEC. 116. OCEAN FREIGHT FORWARDERS. 
Section 19 of the Shipping Act of 1984 (46 U.S.C. App. 1718) 
is amended by— 
(1) striking "freight forwarders" in the section caption and 
inserting "transportation intermediaries"; 
(2) striking subsection (a) and inserting the following: 
"(a) LICENSE.—No person in the United States may act as 
an ocean transportation intermediary unless that person holds a 
license issued by the Commission. The Commission shall issue 
an intermediarys license to any person that the Commission deter-
mines to be qualified by experience and character to act as an 
ocean transportation intermediary."; 
(3) redesignating subsections (b), (c), and (d) as subsections 
(c), (d), and (e), respectively; 
PUBLIC LAW 105-25S~OCT. 14, 1998 
112 STAT. 1913 
(4) inserting after subsection (a) the following: 
"(b) FINANCIAL RESPONSIBILITY.— 
"(1) No person may act as an ocean transportation inter-
mediary unless that person furnishes a bond, proof of insurance, 
or other surety in a form and amount determined by the 
Commission to insure financial responsibility that is issued 
by a surety company found acceptable by the Secretary of 
the Treasury. 
"(2) A bond, insurance, or other surety obtained pursuant 
to this section— 
"(A) shall be available to pay any order for reparation 
issued pursuant to section 11 or 14 of this Act, or any 
penalty assessed pursuant to section 13 of this Act; 
"(B) may be available to pay any claim against an 
ocean 
transportation 
intermediary 
arising 
from 
its 
transportation-related activities described in section 3(17) 
of this Act with the consent of the insured ocean transpor-
tation intermediary and subject to review by the surety 
company, or 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 
"(C) shall be available to pay any judgment for damages 
against an ocean transportation intermediary arising from 
its transportation-related activities under section 3(17) of 
this Act, provided the claimant has first attempted to 
resolve the claim pursuant to subparagraph (B) of this 
paragraph and the claim has not been resolved within 
a reasonable period of time. 
"(3) The Commission shall prescribe regulations for the Regulations. 
purpose of protecting the interests of claimants, ocean transpor-
tation intermediaries, and surety companies with respect to 
the process of pursuing claims against ocean transportation 
intermediary bonds, insurance, or sureties through court judg-
ments. The regulations shall provide that a judgment for mone-
tary 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. 
"(4) An ocean transportation intermediary not domiciled 
in the United States shall designate a resident agent in the 
United States for receipt of service of judicial and administra-
tive process, including subpoenas."; 
(5) striking, each place such term appears— 
(A) "freight forwarder" and inserting "transportation 
intermediary'; 
(B) "a forwaider's" and inserting "an intermediary's"; 
(C) "forwarder" and inserting "intermediary"; and 
(D) "forwarding" and inserting "intermediary"; 
(6) striking "a bond in accordance with subsection (a)(2)." 
in subsection (c), as redesignated, and inserting "a bond, proof 
j 
of insurance, or other surety in accordance with subsection 
' 
(b)(1)."; 
(7) striking "FORWARDERS.—" in the caption of subsection 
(e), as redesignated, and inserting "INTERMEDIARIES.—"\ 
(8) strilang "intermediary" the first place it appears in 
subsection (e)(1), as redesignated and as amended by paragraph 
112 STAT. 1914 
PUBLIC LAW 105-25&—OCT. 14, 1998 
(5)(A), and inserting "intermediary, as defined in section 
3(17)(A)ofthisAct,"; 
(9) striking "license" in paragraph (1) of subsection (e), 
as redesignated, and inserting "license, if required by subsection 
(a),"; 
(10) striking paragraph (3) of subsection (e), as redesig-
nated, and redesignating paragraph (4) as paragraph (3); and 
(11) adding at the end of subsection (e), as redesignated, 
the following: 
"(4) No conference or group of 2 or more ocean common 
carriers in the foreign commerce of the United States that 
is authorized to agree upon the level of compensation paid 
to an ocean transportation intermediary, as defined in section 
3(17)(A) of this Act, may— 
"(A) deny to any member of the conference or group 
the right, upon notice of not more than 5 calendar days, 
to take independent action on amy level of compensation 
paid to an ocean transportation intermediary, as so defined; 
or 
"(B) agree to limit the payment of compensation to 
an ocean transportation intermediary, as so defined, to 
less than 1.25 percent of the aggregate of all rates and 
charges which are applicable under a tariff and which 
are assessed against the cargo on which the intermediary 
services are provided.". 
SEC. 117. CONTRACTS, AGREEMENTS, AND LICENSES UNDER PRIOR 
SHIPPING LEGISLATION. 
Section 20 of the Shipping Act of 1984 (46 U.S.C. App. 1719) 
is amended by— 
(1) striking subsection (d) and inserting the following: 
"(d) EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS.—All 
agreements, contracts, modifications, licenses, and exemptions pre-
viously issued, approved, or effective under the Shipping Act, 1916, 
or the Shipping Act of 1984, shall continue in. force and effect 
as if issued or effective under this Act, as amended by the Ocean 
Shipping Reform Act of 1998, and all new agreements, contracts, 
and modifications to existing, pending, or new contracts or agree-
ments shall be considered under this Act, as amended by the 
Oceain Shipping Reform Act of 1998."; 
(2) inserting the following at the end of subsection (e): 
"(3) The Ocean Shipping Reform Act of 1998 shall not 
affect any suit— 
"(A) filed before the effective date of that Act; or 
"(B) with respect to claims arising out of conduct 
engaged in before the effective date of that Act filed within 
1 year after the effective date of that Act. 
Regulations. 
"(4) Regulations issued by the Federal Maritime Commis-
sion shall remain in force and effect where not inconsistent 
with this Act, as amended by the Ocean Shipping Reform 
Act of 1998.". 
SEC. 118. SURETY FOR NON-VESSEL-OPERATING COMMON CARRIERS. 
Section 23 of the Shipping Act of 1984 (46 U.S.C. App. 1721) 
is repealed. 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1915 
TITLE II—AUTHORIZATION OF APPRO-
PRIATIONS FOR THE FEDERAL MARI-
TIME COMMISSION 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
1998. 
There are authorized to be appropriated to the Federal Mari-
time Commission, $15,000,000 for fiscal year 1998. 
SEC. 202. FEDERAL MARITIME COMMISSION ORGANIZATION. 
Section 102(d) of Reorganization Plan No. 7 of 1961 (75 Stat. 
840) is amended to read as follows: 
5 USC app; 46 
"(d) A vacancy or vacancies in the membership of Commission 
USC app. nil 
shall not impair the power of the Commission to execute its func- '^*'*^ 
tions. The affirmative vote of a majority of the members serving 
on the Commission is required to dispose of any matter before 
the Commission.". 
SEC. 203. REGULATIONS. 
Deadline. 
Not later than March 1, 1999, the Federal Maritime Commis- iTienote!*^ 
sion shall prescribe final regulations to implement the changes 
made by this Act. 
TITLE III—AMENDMENTS TO OTHER 
SHIPPING AND MARITIME LAWS 
SEC. 301. AMENDMENTS TO SECTION 19 OF THE MERCHANT MARINE 
ACT, 1920. 
(a) IN GENERAL.—Section 19 of the Merchant Marine Act, 1920 
(46 U.S.C. App. 876) is amended by— 
(1) striking "forwarding and" in subsection (l)(b); 
(2) striking "non-vessel-operating common carrier oper-
ations," in subsection (l)(b) and inserting "ocean transportation 
intermediary services and operations,"; 
(3) strilang "methods or practices" and inserting "methods, 
pricing practices, or other practices" in subsection (l)(b); 
(4) striking "tariffs of a common carrier" in subsection 
7(d) and inserting "tariffs and service contracts of a common 
carrier"; 
(5) striking "use the tariffs of conferences" in subsections 
(7)(d) 2md (9)(D) and inserting "use tariffs of conferences and 
service contracts of agreements"; 
(6) striking "tariffs filed with the Commission" in subsection 
(9)(b) and inserting "tariffs and service contracts"; 
(7) striking "freight forwarder," each place it appears and 
inserting "transportation intermediary,"; and 
(8) striking "tariff' each place it appears in subsection 
(11) and inserting "tariff or service contract". 
j 
(b) STYLISTIC CONFORMITY.—Section 19 of the Merchant Marine 
Act, 1920 (46 U.S.C. App. 876), as amended by subsection (a), 
is further amended by— 
(1) redesignating subdivisions (1) through (12) as sub-
sections (a) through (1), respectively; 
112 STAT. 1916 
PUBLIC LAW 105-258—OCT. 14, 1998 
(2) redesignating subdivisions (a), (b), and (c) of subsection 
(a), as redesignated, as paragraphs (1), (2), and (3); 
(3) redesignating subdivisions (a) through (d) of subsection 
(f), as redesignated, as paragraphs (1) through (4), respectively; 
(4) redesignating subdivisions (a) through (e) of subsection 
(g), as redesignated, as paragraphs (1) through (5), respectively; 
(5) redesignating clauses (i) and (ii) of subsection (g)(4), 
as redesignated, as subparagraphs (A) and (B), respectively; 
(6) redesignating subdivisions (a) through (e) of subsection 
(i), as redesignated, as paragraphs (1) through (5), respectively; 
(7) redesignating subdivisions (a) and (b) of subsection (j), 
as redesignated, as paragraphs (1) and (2), respectively; 
(8) striking "subdivision (c) of paragraph (1)" in subsection 
(c), as redesignated, and inserting "subsection (a)(3)"; 
(9) strilang "paragraph (2)' in subsection (c), as redesig-
nated, and inserting "subsection (b)"; 
(10) striking "paragraph (l)(b)" each place it appears and 
inserting "subsection (a)(2)'; 
(11) striking "subdivision (b)," in subsection (g)(4), as 
redesignated, and inserting "paragraph (2),"; 
(12) striking "paragrapn (9)(d)' in subsection (j)(l), as 
redesignated, and inserting "subsection (i)(4)"; and 
(13) striking "paragraph (7)(d) or (9)(b)" in subsection (k), 
as redesignated, and inserting "subsection (g)(4) or (i)(2)". 
SEC. 302. TECHNICAL CORRECTIONS. 
(a) PUBLIC LAW 89-777.—Sections 2 and 3 of the Act of Novem-
ber 6, 1966 (46 U.S.C. App. 817d and 817e) are amended by striking 
"they in their discretion" each place it appears and inserting "it 
in its discretion". 
(b) TARIFF ACT OF 1930.—Section 641(i) of the Tariff Act of 
1930 (19 U.S.C. 1641) is repealed. 
TITLE IV—CERTAIN LOAN GUARANTEES 
AND COMMITMENTS 
46 use app. 
SEC. 401. CERTAIN LOAN GUARANTEES AND COMMITMENTS. 
(a) The Secretary of Transportation may not issue a guarantee 
or commitment to gusirantee a loan for the construction, reconstruc-
tion, or reconditioning of a liner vessel under the authority of 
title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 
et seq.) after the date of enactment of this Act unless the Chairman 
of the Federal Maritime Commission certifies that the operator 
of such vessel— 
(1) has not been found by the Commission to have violated 
section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 
876), or the Foreign Shipping Practices Act of 1988 (46 U.S.C. 
App. 1701a), within the previous 5 years; and 
(2) has not been found by the Commission to have conmiit-
ted a violation of the Shipping Act of 1984 (46 U.S.C. App. 
1701 et seq.), which involves unjust or unfair discriminatory 
treatment or undue or unreasonable prejudice or disadvantage 
with respect to a United States shipper, ocean transportation 
intermediary, ocean common carrier, or port within the previous 
5 years. 
\ 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1917 
(b) The Secretary of Commerce may not issue a guarantee 
or a commitment to guarantee a loan for the construction, 
reconstruction, or reconditioning of a fishing vessel under the 
authority of title XI of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1271 et seq.) if the fishing vessel operator has been— 
(1) held liable or liable in rem for a civil penalty pursuant 
to section 308 of the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1858) and not paid the penalty; 
(2) found guilty of an offense pursuant to section 309 of 
the Magnuson-Stevens Fishery Conservation and Management 
Act (16 U.S.C. 1859) and not paid the assessed fine or served 
the assessed sentence; 
(3) held liable for a civil or criminal penalty pursuant 
to section 105 of the Marine Mammal Protection Act of 1972 
(16 U.S.C. 1375) and not paid the assessed fine or served 
the assessed sentence; or 
(4) held liable for a civil penalty by the Coast Guard 
pursuant to title 33 or 46, United States Code, and not paid 
the assessed fine. 
Approved October 14, 1998. 
LEGISLATIVE fflSTORY—S. 414: 
SENATE REPORTS: No. 105-61 (Comm. on Commerce, Science, and Transpor-
tation). 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
Apr. 3, 21, considered and passed Senate. 
Aug. 4, considered and passed House, amended. 
' 
Oct. 1, Senate concurred in House amendment. 
112 STAT. 1916 
PUBLIC LAW 105-258—OCT. 14, 1998 
(2) redesignating subdivisions (a), (b), and (c) of subsection 
(a), as redesignated, as paragraphs (1), (2), and (3); 
(3) redesignating subdivisions (a) through (d) of subsection 
(f), as redesignated, as paragraphs (1) through (4), respectively; 
(4) redesignating subdivisions (a) through (e) of subsection 
(g), as redesignated, as paragraphs (1) through (5), respectively; 
(5) redesignating clauses (i) and (ii) of subsection (g)(4), 
as redesignated, as subparagraphs (A) and (B), respectively; 
(6) redesignating subdivisions (a) through (e) of subsection 
(i), as redesignated, as paragraphs (1) through (5), respectively; 
(7) redesignating subdivisions (a) and (b) of subsection (j), 
as redesignated, as paragraphs (1) and (2), respectively; 
(8) striking "subdivision (c) of paragraph (1)" in subsection 
(c), as redesignated, and inserting "subsection (a)(3)"; 
(9) strilang "paragraph (2)' in subsection (c), as redesig-
nated, and inserting "subsection (b)"; 
(10) striking "paragraph (l)(b)" each place it appears and 
inserting "subsection (a)(2)'; 
(11) striking "subdivision (b)," in subsection (g)(4), as 
redesignated, and inserting "paragraph (2),"; 
(12) striking "paragrapn (9)(d)' in subsection (j)(l), as 
redesignated, and inserting "subsection (i)(4)"; and 
(13) striking "paragraph (7)(d) or (9)(b)" in subsection (k), 
as redesignated, and inserting "subsection (g)(4) or (i)(2)". 
SEC. 302. TECHNICAL CORRECTIONS. 
(a) PUBLIC LAW 89-777.—Sections 2 and 3 of the Act of Novem-
ber 6, 1966 (46 U.S.C. App. 817d and 817e) are amended by striking 
"they in their discretion" each place it appears and inserting "it 
in its discretion". 
(b) TARIFF ACT OF 1930.—Section 641(i) of the Tariff Act of 
1930 (19 U.S.C. 1641) is repealed. 
TITLE IV—CERTAIN LOAN GUARANTEES 
AND COMMITMENTS 
46 use app. 
SEC. 401. CERTAIN LOAN GUARANTEES AND COMMITMENTS. 
(a) The Secretary of Transportation may not issue a guarantee 
or commitment to gusirantee a loan for the construction, reconstruc-
tion, or reconditioning of a liner vessel under the authority of 
title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 
et seq.) after the date of enactment of this Act unless the Chairman 
of the Federal Maritime Commission certifies that the operator 
of such vessel— 
(1) has not been found by the Commission to have violated 
section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 
876), or the Foreign Shipping Practices Act of 1988 (46 U.S.C. 
App. 1701a), within the previous 5 years; and 
(2) has not been found by the Commission to have conmiit-
ted a violation of the Shipping Act of 1984 (46 U.S.C. App. 
1701 et seq.), which involves unjust or unfair discriminatory 
treatment or undue or unreasonable prejudice or disadvantage 
with respect to a United States shipper, ocean transportation 
intermediary, ocean common carrier, or port within the previous 
5 years. 
\ 
PUBLIC LAW 105-258—OCT. 14, 1998 
112 STAT. 1917 
(b) The Secretary of Commerce may not issue a guarantee 
or a commitment to guarantee a loan for the construction, 
reconstruction, or reconditioning of a fishing vessel under the 
authority of title XI of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1271 et seq.) if the fishing vessel operator has been— 
(1) held liable or liable in rem for a civil penalty pursuant 
to section 308 of the Magnuson-Stevens Fishery Conservation 
and Management Act (16 U.S.C. 1858) and not paid the penalty; 
(2) found guilty of an offense pursuant to section 309 of 
the Magnuson-Stevens Fishery Conservation and Management 
Act (16 U.S.C. 1859) and not paid the assessed fine or served 
the assessed sentence; 
(3) held liable for a civil or criminal penalty pursuant 
to section 105 of the Marine Mammal Protection Act of 1972 
(16 U.S.C. 1375) and not paid the assessed fine or served 
the assessed sentence; or 
(4) held liable for a civil penalty by the Coast Guard 
pursuant to title 33 or 46, United States Code, and not paid 
the assessed fine. 
Approved October 14, 1998. 
LEGISLATIVE fflSTORY—S. 414: 
SENATE REPORTS: No. 105-61 (Comm. on Commerce, Science, and Transpor-
tation). 
CONGRESSIONAL RECORD, Vol. 144 (1998): 
Apr. 3, 21, considered and passed Senate. 
Aug. 4, considered and passed House, amended. 
' 
Oct. 1, Senate concurred in House amendment.