Enforcement

The Bureau participates in investigations conducted under the Office of Operations into the activities of ocean common carriers, ocean transportation intermediaries ("OTIs"), shippers, ports, marine terminal operators, and other persons to ensure effective compliance with the statutes and regulations administered by the Commission.  These investigations often result from information provided by the industry or by other government entities. 

The Bureau prepares and serves notices of violations of the relevant statues and Commission regulations, and may enter into negotiations to compromise and settle civil penalty demands arising out of those violations under the informal procedures set forth in Subpart W of the Commission’s Rules of Practice and Procedure, 46 C.F.R.502.601 et seq.   In the event settlement is not reached, Bureau attorneys may recommend institution of a formal Commission proceeding, which may result in  the assessment of civil penalties,  in which the Bureau would act as a designated party, prosecuting the formal proceeding on behalf of the Commission. 

Enforcement actions and investigations into alleged violations of the Shipping Act include the prohibited acts in section 10, and the regulations administered by the Commission, such as:

• Rebating

• Misdescriptions or misdeclarations of cargo

• Unfilled agreements

• Abuses of antitrust immunity

• Unlicensed OTI activity

• Untariffed cargo carriage

• Unbonded Passenger Vessel operations

• various types of consumer abuses, including failure of carriers or intermediaries to carry out transportation obligations, resulting in cargo delays and financial losses for shippers

• unfair or unjustly discriminatory practices of ocean carriers and OTIs

• unreasonable refusals to deal or negotiate