The Federal Maritime Commission (FMC) was established as an independent regulatory agency by Reorganization Plan No. 7, effective August 12, 1961.  Prior to that time, the Federal Maritime Board was responsible for both the regulation of ocean commerce and the promotion of the United States Merchant Marine.  Under the reorganization plan, the shipping laws of the U.S. were separated into two categories: regulatory and promotional.  The newly created FMC was charged with the administration of the regulatory provisions of the shipping laws. The Commission is responsible for the regulation of ocean-borne transportation in the foreign commerce of the U.S.  The passage of the Shipping Act of 1984 brought about a major change in the regulatory regime facing shipping companies operating in the U.S. foreign commerce.  The subsequent passage of the Ocean Shipping Reform Act of 1998, with its deregulatory amendments and modifications to the Shipping Act of 1984, further signaled a significant paradigm shift in shipping regulation.  The principle statutes or statutory provisions administered by the Commission are: the Shipping Act of 1984, the Foreign Shipping Practices Act of 1988, section 19 of the Merchant Marine Act, 1920, and Public Law 89-777.  Most of these statutes were amended by the Ocean Shipping Reform Act of 1998, which took effect on May 1, 1999.

The Federal Maritime Commission:

• Monitors activities of ocean common carriers, marine terminal operators, conferences, ports, and ocean transportation intermediaries (OTIs) who operate in the U.S. foreign commerce to ensure they maintain just and reasonable practices, and oversees the financial responsibility of passenger vessel operators.

• Maintains a trade monitoring and enforcement program designed to assist regulated entities in achieving compliance, and to detect and appropriately remedy malpractices and violations set forth in section 10 of the Shipping Act.

• Monitors the laws and practices of foreign governments which could have a discriminatory or otherwise adverse impact on shipping conditions in the U.S.

• Enforces special regulatory requirements applicable to ocean common carriers owned or controlled by foreign governments (“controlled carriers”).

• Processes and reviews agreements and service contracts.

• Reviews common carriers’ privately published tariff systems for accessibility and accuracy.

• Issues licenses to qualified OTIs in the U.S. and ensures all maintain evidence of financial responsibility.

• Ensures passenger vessel operators demonstrate adequate financial responsibility for casualty and non-performance.