FEDERAL MARITIME COMMISSION
The Federal Maritime Commission (FMC) regulates the waterborne foreign and domestic off-shore commerce of the United States; ensures that U.S. international trade is open to all nations on fair and equitable terms; and protects against unauthorized activity in the waterborne
commerce of the United States. The FMC
reviews agreements made by groups of common
carriers (those who operate ships for commer-
cial purposes), ensures that carriers charge rates
on file with the FMC, and guarantees equal
treatment to carriers and those who ship their
goods. The FMC also ensures that adequate lev-
els of financial responsibility are maintained for
the indemnification of passengers who sail on
commercial passenger ships. The commission
comprises a chairman and four commissioners,
who are appointed by the president.
The FMC was established by REORGANIZA-
TION PLAN No. 7 of 1961 (5 U.S.C.A. app.),
effective August 12, 1961. It is an independent
agency that regulates shipping under the follow-
ing statutes: the Shipping Act of 1984 (46
U.S.C.A. app. at 1701–1720); the Shipping Act,
1916; the Merchant Marine Act, 1920; the For-
eign Shipping Practices Act of 1988 (46 U.S.C.A.
app. at 1710a); the Intercoastal Shipping Act,
1933 (46 U.S.C.A. app. at 843 et seq.); and cer-
tain provisions of the Act of November 6, 1966
(46 U.S.C.A. app. at 817(d), 871(e)).
The commission reviews agreements made
by common carriers, terminal operators (i.e.,
those who operate the docking facilities in har-
bors), and other persons subject to the shipping
statutes. The FMC also monitors activities under
all effective or approved agreements, for compli-
ance with the provisions of the law and its rules,
orders, and regulations.
The FMC accepts or rejects tariff filings,
including filings dealing with service contracts,
of common carriers engaged in foreign and
domestic offshore commerce of the United
States, or conferences of such carriers. The FMC
regulates the rate of return of carriers in domes-
tic offshore trades. It has the authority to grant
exemptions from tariff requirements.
The commission issues licenses to persons,
partnerships, corporations, and associations
desiring to engage in ocean freight forwarding
activities. Shipowners and the operators of pas-
senger ships that carry more than fifty passen-
gers are required to obtain certificates from the
FMC that demonstrate that they have the finan-
cial resources and responsibility to pay judg-
ments for personal injury or death, or to refund
fares in the event that voyages are canceled.
When a violation of the shipping laws is
alleged or suspected, the FMC is authorized to
investigate and may take administrative action
to start formal proceedings, to refer matters to
other government agencies, or to bring about
voluntary agreement between the parties. It also
may conduct formal investigations and hearings
on its own motion and may adjudicate formal
complaints.
The FMC promulgates rules and regulations
to interpret, enforce, and ensure compliance with
shipping and related statutes by common carri-
ers and other persons subject to those statutes.
The staff of the FMC administers programs
to ensure compliance with the provisions of the
shipping statutes. These programs include the
submission of information, and field investiga-
tions and audits of activities and practices of
common carriers, terminal operators, and oth-
ers subject to the shipping statutes. The FMC
also conducts rate analyses, studies, and eco-
nomic reviews of current and future trade con-
ditions, including the extent and nature of
competition in various trade areas.
The FMC conducts investigations of prac-
tices by foreign governments and foreign carri-
ers that adversely affect the U.S. shipping trade.
The commission works with the DEPARTMENT
OF STATE to eliminate discriminatory practices
on the part of foreign governments against U.S.-
flag shipping and to promote fairness between
the United States and its trading partners.
The FMC has sought to become more effi-
cient by implementing an electronic filing sys-
tem. By 2002, it was able to issue service on
companies electronically, which proved crucial
during the fall of 2001, when the anthrax crisis
prevented the delivery of mail by the U.S. POSTAL
SERVICE in some areas. In addition, it now posts
filings of important public proceedings on its
