Federal Maritime Commission

Federal Maritime Commission in the United States

The Federal Maritime Commission regulates the waterborne foreign commerce of
the United States. It ensures that U.S. oceanborne trades are open to all on fair and equitable terms and protects against concerted activities and unlawful practices.

The Federal Maritime Commission was established by Reorganization Plan No.
7 of 1961 (46 U.S.C. 301–307), effective August 12, 1961. It is an independent
agency that regulates shipping under the following statutes: the Shipping Act of
1984, as amended (46 U.S.C. 40101–41309); Section 19 of the Merchant
Marine Act, 1920 (46 U.S.C. 42101–42109); the Foreign Shipping Practices
Act of 1988 (46 U.S.C. 42301–42307);and the act of November 6, 1966 (46
U.S.C. 44101–44106).

Activities

Agreements

The Commission reviews agreements by and among ocean common carriers and/or marine terminal operators, ?led under section 5 of the
Shipping Act of 1984, for statutory compliance as well as for likely impact
on competition. It also monitors activities under all effective agreements for
compliance with the provisions of law and its rules, orders, and regulations.

Tariffs

The Commission monitors and prescribes requirements to ensure
accessibility and accuracy of electronic tariff publications of common carriers
engaged in the foreign commerce of the United States. Special permission
applications may be submitted for relief from statutory and/or Commission tariff
requirements.

Service Contracts

The Commission receives and reviews ?lings of con?dential service contracts between
shippers and ocean common carriers. The Commission also monitors
publication of certain essential terms of those service contracts.

Non-Vessel-Operating Common Carrier Service Arrangements

The Commission receives and reviews service arrangements entered into by non-vesseloperating common carriers and their
customers. Cargo moving under these service arrangements are exempt from
the tariff publication and adherence requirements of the Shipping Act, on the
condition that the service arrangements must be ?led with the Commission.

Licenses

The Commission issues licenses to those persons and entities in the United States who wish to carry out the business of providing freight
forwarding services and non-vessel- operating common carrier services.

Passenger Indemnity

The Commission administers the passenger indemnity provisions of the act of November
6, 1966, which require shipowners and operators to obtain certi?cates of
financial responsibility to pay judgments for personal injury or death or to refund
fares in the event of nonperformance of voyages.

Complaints

The Commission reviews alleged or suspected violations of the shipping statutes and rules and regulations of the Commission and may
take administrative action to institute formal proceedings, to refer matters to
other governmental agencies, or to bring about voluntary agreement between the
parties.

Formal Adjudicatory Procedures

The Commission conducts formal investigations and hearings on its
own motion and adjudicates formal complaints in accordance with the
Administrative Procedure Act (5 U.S.C.note prec. 551).

Alternative Dispute Resolution

The Commission reviews informal complaints and attempts to assist parties in resolving
disputes. Mediation and other dispute resolution services are available in order
to assist parties in achieving a more acceptable resolution to a dispute at less
cost than may be possible in litigation. These services are available before and
after the commencement of litigation. The Commission also provides an
informal process to adjudicate certain complaints involving less than $50,000
in damages.

Rulemaking

The Commission promulgates rules and regulations to interpret, enforce, and ensure compliance with shipping and related statutes by
common carriers and other persons subject to the Commission’s jurisdiction.

Investigation and Economic Analyses

The Commission prescribes and administers programs to ensure
compliance with the provisions of the shipping statutes. These programs
include: education and outreach activities; the collection of information
relating to ?eld investigation of activities and practices of ocean common carriers,
terminal operators, agreements among ocean common carriers and/or marine
terminal operators, ocean transportation intermediaries, passenger vessel
operators, and other persons subject to the shipping statutes; and rate analyses,
studies, and economic reviews of current and prospective trade conditions,
including the extent and nature of competition in various trade areas.

International Affairs

The Commission conducts investigations of foreign governmental and carrier practices
that adversely affect the U.S. shipping trade. In consultation with other
executive agencies, the Commission takes action to effect the elimination of
discriminatory practices on the part of foreign governments against shipping
in the United States foreign trade, and to achieve comity between the United
States and its trading partners.

For further information, contact the Office of the Secretary, Federal Maritime Commission, 800 North Capitol Street NW., Washington, DC 20573–0001. Phone, 202–523–5725. Fax, 202–523–0014. Email,secretary@fmc.gov. Internet, http://www.fmc.gov.

Introduction to Federal Maritime Commission

Federal Maritime Commission, independent agency of the United States government, established in 1961 to regulate waterborne shipping in domestic and foreign offshore commerce. It is composed of five members appointed for 5-year terms by the president with the consent of the Senate.

The commission regulates the practices of common carriers and others engaged in the offshore commerce of the U.S. It sets and regulates rates and classifications for common carriers in domestic offshore trade, and it conducts investigations of any discriminatory rates or practices in either domestic offshore commerce or waterborne foreign commerce. The agency administers programs to ensure compliance with provisions of shipping statutes; these programs include field investigations, inspections, and audit reports. It issues or denies licenses to parties desiring to engage in ocean freight forwarding activities. The commission rules on financial responsibility of shipowners or operators in the event of passenger injury or death, refunds fares in the case of cancellation of voyages, and issues certificates indicating the financial responsibility of vessel operators in the event of discharge of oil or hazardous substances in U.S. waters. The commission acts with the Department of State to eliminate discriminatory practices by foreign governments against U.S. shipping.” (1)

Federal Maritime Commission

In Legislation

Federal Maritime Commission in the U.S. Code: Title 46, Subtitle I, Chapter 3

The current, permanent, in-force federal laws regulating federal maritime commission are compiled in the United States Code under Title 46, Subtitle I, Chapter 3. It constitutes “prima facie” evidence of statutes relating to Shipping (including federal maritime commission) of the United States. The readers can further narrow their legal research on the topic by chapter and subchapter.

Resources

Notes and References

Guide to Federal Maritime Commission

About U.S. Federal Departments

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(including Department of Energy Purpose, Department of Energy Organization and Department of Energy Research and Development), Department of Health and Human Services (including Department of Health and Human Services History and Department of Health and Human Services Agencies and Services), Department of Homeland Security (including Department of Homeland Security Organization and Functions, Department of Homeland Security Origins and Department of Homeland Security Supporting Agencies), Department of Housing and Urban Development, Department of Justice (including Department of Justice Functions, Department of Justice Structure and Department of Justice Associated Agencies), Department of Labor, Department of National Defence, Department of State (including Department of State Administration and Department of State Bureaus), Department of the Air Force, Department of the Army, Department of the Interior (including Department of the Interior Functions and Department of the Interior Principal Agencies), Department of the Navy, Department of the Treasury, Department of Transportation, Department of Veterans Affairs (including the Department of Veterans Affairs Service Categories, Department of Veterans Affairs Benefits Available and GI Bill of Rights) and Department of War.

Federal Maritime Commission in the International Business Landscape

Definition of Federal Maritime Commission in the context of U.S. international business and public trade policy: Federal agency that regulates the waterborne foreign and domestic offshore commerce of the United States, assures that U.S. international trade is open to all nations on fair and equitable terms, and guards against unauthorized monopoly in the waterborne commerce of the United States.


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