Fiscal Year 2012

A.FUNCTIONS

The Federal Maritime Commission (FMC) is an independent agency responsible for the regulation of oceanborne transportation in the foreign commerce of the United States for the benefit of U.S. exporters, importers, and the U.S. consumer. The principal statutes administered by the Commission are the Shipping Act of 1984 (1984 Act), the Foreign Shipping Practices Act of 1988 (FSPA), section 19 of the Merchant Marine Act, 1920 (1920 Act), and sections 2 and 3 of Pub. L. No. 89-777, 80 Stat. 1350, 46 U.S.C. 40101-44106.

The Commission’s regulatory responsibilities include:

 

• Reviewing and monitoring agreements among ocean common carriers and marine terminal operators (MTOs) relating to service in the U.S. foreign oceanborne trades, to ensure that they do not cause substantial increases in transportation costs or decreases in transportation services. Under the 1984 Act, the general antitrust laws do not apply to certain agreements between or among ocean common carriers and marine terminal operators. The Commission conducts preliminary reviews and performs ongoing oversight of such agreements and can take action to address agreement activity that does not meet the requirements of the 1984 Act, or that cause effects prohibited by the 1984 Act.
• Maintaining and reviewing confidentially filed service contracts and NVOCC Service Arrangements between ocean common carriers and shippers to guard against detrimental effects to shipping in the U.S. foreign trades.
• Providing a forum for exporters, importers, and other members of the shipping public to obtain relief from ocean shipping practices or disputes that impede the flow of commerce and otherwise cause economic harm.
• Ensuring common carriers tariff rates and charges are published in private, automated tariff systems and electronically available to the shipping public.
• Monitoring rates, charges, and rules of government-owned or -controlled carriers to ensure that they are just and reasonable.
• Issuing passenger vessel certificates evidencing financial responsibility of vessel owners or charterers to pay claims for personal injury or death, and to reimburse passengers in the event of nonperformance of a voyage or cruise.
• Licensing ocean transportation intermediaries (OTIs) in the U.S. to protect the public from unqualified, insolvent, or dishonest companies.
• Ensuring that OTIs maintain financial responsibility to protect the shipping public from financial loss.
• Protecting the shipping public from economic harm by investigating rates, charges, classifications, and practices of common carriers, MTOs, and OTIs operating in the foreign commerce of the United States, and acting to stop unjust or unlawful practices that violate the 1984 Act.
• Taking action to address unfavorable conditions arising out of foreign government or business practices in the U.S. foreign shipping trades.

 
The Commission carries out its regulatory responsibilities by conducting informal and formal investigations. It holds hearings, considers evidence, renders decisions, and issues appropriate orders and regulations. The Commission also adjudicates and mediates disputes involving regulated entities, the shipping public, and other affected individuals or interest groups.

 

B. ORGANIZATION

The Commission is composed of five Commissioners appointed by the president with the advice and consent of the Senate. Commissioners serve five-year, staggered terms, and no more than three members of the Commission may belong to the same political party. The President designates one of the Commissioners to serve as Chairman. The chairman is the chief executive and administrative officer of the agency.

 

The Commission's organizational units consist of: Office of the General Counsel; Office of the Secretary (including the Library); Office of Consumer Affairs and Dispute Resolution Services; Office of Administrative Law Judges; Office of Equal Employment Opportunity; Office of the Inspector General; Office of the Managing Director; the Offices of Human Resources, Budget and Finance, Management Services, and Information Technology; the Bureaus of Certification and Licensing, Enforcement, and Trade Analysis; and the Commissions Area Representatives. In fiscal year 2012, the Commission had a total appropriation of $24,100,000. That appropriation supported the actual employment of 123 full-time equivalent positions during the fiscal year. The majority of the Commission’s personnel are located in Washington, D.C., with Area Representatives in Houston, Los Angeles, New Orleans, New York, Seattle, and South Florida.