[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 414 Enrolled Bill (ENR)]
S.414
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
eight
An Act
To amend the Shipping Act of 1984 to encourage competition in
international shipping and growth of United States exports, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

84f43b84e57a23ec46b174f8db47350969e01cb73ed17223f1a93f4527b33d36

This Act may be cited as the ``Ocean Shipping Reform Act of 1998''.

1d569908d747638ad5bb9a7d897e70716f5d8b58a0dcdf0a2e1b8e733057e660

Except as otherwise expressly provided in this Act, this Act and
the amendments made by this Act take effect May 1, 1999.

5899da8f03f8b8a6c5fc7731070234a878995115dd14ac1471748b67401db770

Section 2 of the Shipping Act of 1984 (46 U.S.C. App. 1701) is
amended by--
(1) striking ``and'' after the semicolon in paragraph (2);
(2) striking ``needs.'' in paragraph (3) and inserting ``needs;
and'';
(3) adding at the end thereof the following:
``(4) to promote the growth and development of United States
exports through competitive and efficient ocean transportation and
by placing a greater reliance on the marketplace.''.

53a7d9eb608b2c2c0f0fbc21211c34e5437248406b5e53c2c68d6c7611492d68

TITLE I

-AMENDMENTS TO THE SHIPPING ACT OF 1984

Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) is
amended by--
(1) striking ``the government under whose registry the vessels
of the carrier operate;'' in paragraph (8) and inserting ``a
government;'';
(2) striking paragraph (9) and inserting the following:
``(9) `deferred rebate' means a return by a common carrier of
any portion of freight money to a shipper as a consideration for
that shipper giving all, or any portion, of its shipments to that
or any other common carrier over a fixed period of time, the
payment of which is deferred beyond the completion of service for
which it is paid, and is made only if the shipper has agreed to
make a further shipment or shipments with that or any other common
carrier.'';
(3) striking paragraph (10) and redesignating paragraphs (11)
through (27) as paragraphs (10) through (26);
(4) striking ``in an unfinished or semifinished state that
require special handling moving in lot sizes too large for a
container,'' in paragraph (10), as redesignated;
(5) striking ``paper board in rolls, and paper in rolls.'' in
paragraph (10) as redesignated and inserting ``paper and paper
board in rolls or in pallet or skid-sized sheets.'';
(6) striking ``conference, other than a service contract or
contract based upon time-volume rates,'' in paragraph (13) as
redesignated and inserting ``agreement'';
(7) striking ``conference.'' in paragraph (13) as redesignated
and inserting ``agreement and the contract provides for a deferred
rebate arrangement.'';
(8) striking ``carrier.'' in paragraph (14) as redesignated and
inserting ``carrier, or in connection with a common carrier and a
water carrier subject to subchapter II of chapter 135 of title 49,
United States Code.'';
(9) striking paragraph (16) as redesignated and redesignating
paragraphs (17) through (26) as redesignated as paragraphs (16)
through (25), respectively;
(10) striking paragraph (17), as redesignated, and inserting
the following:
``(17) `ocean transportation intermediary' means an ocean
freight forwarder or a non-vessel-operating common carrier. For
purposes of this paragraph, the term--
``(A) `ocean freight forwarder' means a person that--
``(i) in the United States, dispatches shipments from
the United States via a common carrier and books or
otherwise arranges space for those shipments on behalf of
shippers; and
``(ii) processes the documentation or performs related
activities incident to those shipments; and
``(B) `non-vessel-operating common carrier' means a common
carrier that does not operate the vessels by which the ocean
transportation is provided, and is a shipper in its
relationship with an ocean common carrier.'';
(11) striking paragraph (19), as redesignated and inserting the
following:
``(19) `service contract' means a written contract, other than
a bill of lading or a receipt, between one or more shippers and an
individual ocean common carrier or an agreement between or among
ocean common carriers in which the shipper or shippers makes a
commitment to provide a certain volume or portion of cargo over a
fixed time period, and the ocean common carrier or the agreement
commits to a certain rate or rate schedule and a defined service
level, such as assured space, transit time, port rotation, or
similar service features. The contract may also specify provisions
in the event of nonperformance on the part of any party.''; and
(12) striking paragraph (21), as redesignated, and inserting
the following:
``(21) `shipper' means--
``(A) a cargo owner;
``(B) the person for whose account the ocean transportation
is provided;
``(C) the person to whom delivery is to be made;
``(D) a shippers' association; or
``(E) an ocean transportation intermediary, as defined in
paragraph (17)(B) of this section, that accepts responsibility
for payment of all charges applicable under the tariff or
service contract.''.

9c63ef501402d15f26553f2a3bf9d2de4423a0007aa5fa9ea35992e2e066ca02

(a) Ocean Common Carriers.--Section 4(a) of the Shipping Act of
1984 (46 U.S.C. App. 1703(a)) is amended by--
(1) striking ``operators or non-vessel-operating common
carriers;'' in paragraph (5) and inserting ``operators;'';
(2) striking ``and'' in paragraph (6) and inserting ``or''; and
(3) striking paragraph (7) and inserting the following:
``(7) discuss and agree on any matter related to service
contracts.''.
(b) Marine Terminal Operators.--Section 4(b) of that Act (46 U.S.C.
App. 1703(b)) is amended by--
(1) striking ``(to the extent the agreements involve ocean
transportation in the foreign commerce of the United States)'';
(2) striking ``and'' in paragraph (1) and inserting ``or''; and
(3) striking ``arrangements.'' in paragraph (2) and inserting
``arrangements, to the extent that such agreements involve ocean
transportation in the foreign commerce of the United States.''.

8333b679ae20559741b1d1d53c57e9b11da2756a7dc37902b8a207e6b327dedb

(a) In General.--Section 5 of the Shipping Act of 1984 (46 U.S.C.
App. 1704) is amended by--
(1) striking subsection (b)(8) and inserting the following:
``(8) provide that any member of the conference may take
independent action on any rate or service item upon not more than 5
calendar days' notice to the conference and that, except for exempt
commodities not published in the conference tariff, the conference
will include the new rate or service item in its tariff for use by
that member, effective no later than 5 calendar days after receipt
of the notice, and by any other member that notifies the conference
that it elects to adopt the independent rate or service item on or
after its effective date, in lieu of the existing conference tariff
provision for that rate or service item;
(2) redesignating subsections (c) through (e) as subsections
(d) through (f); and
(3) inserting after subsection (b) the following:
``(c) Ocean Common Carrier Agreements.--An ocean common carrier
agreement may not--
``(1) prohibit or restrict a member or members of the agreement
from engaging in negotiations for service contracts with 1 or more
shippers;
``(2) require a member or members of the agreement to disclose
a negotiation on a service contract, or the terms and conditions of
a service contract, other than those terms or conditions required
to be published under section 8(c)(3) of this Act; or
``(3) adopt mandatory rules or requirements affecting the right
of an agreement member or agreement members to negotiate and enter
into service contracts.
An agreement may provide authority to adopt voluntary guidelines
relating to the terms and procedures of an agreement member's or
agreement members' service contracts if the guidelines explicitly state
the right of members of the agreement not to follow the guidelines.
These guidelines shall be confidentially submitted to the
Commission.''.
(b) Application.--
(1) Subsection (e) of section 5 of that Act, as redesignated,
is amended by striking ``this Act, the Shipping Act, 1916, and the
Intercoastal Shipping Act, 1933, do'' and inserting ``this Act
does''; and
(2) Subsection (f) of section 5 of that Act, as redesignated,
is amended by--
(A) striking ``and the Shipping Act, 1916, do'' and
inserting ``does'';
(B) striking ``or the Shipping Act, 1916,''; and
(C) inserting ``or are essential terms of a service
contract'' after ``tariff''.

a58f149a8205256665c2501a97cbaa6c1fa67bfdab694d2d2bf3c42676377148

Section 7 of the Shipping Act of 1984 (46 U.S.C. App. 1706) is
amended by--
(1) inserting ``or publication'' in paragraph (2) of subsection
(a) after ``filing'';
(2) striking ``or'' at the end of subsection (b)(2);
(3) striking ``States.'' at the end of subsection (b)(3) and
inserting ``States; or''; and
(4) adding at the end of subsection (b) the following:
``(4) to any loyalty contract.''.

ed3299b167515740961d8e3c178d4c90c730b6e2e19ff59ba06ef80983ca502f

(a) In General.--Section 8(a) of the Shipping Act of 1984 (46
U.S.C. App. 1707(a)) is amended by--
(1) inserting ``new assembled motor vehicles,'' after
``scrap,'' in paragraph (1);
(2) striking ``file with the Commission, and'' in paragraph
(1);
(3) striking ``inspection,'' in paragraph (1) and inserting
``inspection in an automated tariff system,'';
(4) striking ``tariff filings'' in paragraph (1) and inserting
``tariffs'';
(5) striking ``freight forwarder'' in paragraph (1)(C) and
inserting ``transportation intermediary, as defined in section
3(17)(A),'';
(6) striking ``and'' at the end of paragraph (1)(D);
(7) striking ``loyalty contract,'' in paragraph (1)(E);
(8) striking ``agreement.'' in paragraph (1)(E) and inserting
``agreement; and'';
(9) adding at the end of paragraph (1) the following:
``(F) include copies of any loyalty contract, omitting the
shipper's name.''; and
(10) striking paragraph (2) and inserting the following:
``(2) Tariffs shall be made available electronically to any
person, without time, quantity, or other limitation, through
appropriate access from remote locations, and a reasonable charge
may be assessed for such access. No charge may be assessed a
Federal agency for such access.''.
(b) Service Contracts.--Subsection (c) of that section is amended
to read as follows:
``(c) Service Contracts.--
``(1) In general.--An individual ocean common carrier or an
agreement between or among ocean common carriers may enter into a
service contract with one or more shippers subject to the
requirements of this Act. The exclusive remedy for a breach of a
contract entered into under this subsection shall be an action in
an appropriate court, unless the parties otherwise agree. In no
case may the contract dispute resolution forum be controlled by or
in any way affiliated with a controlled carrier as defined in
section 3(8) of this Act, or by the government which owns or
controls the carrier.
``(2) Filing requirements.--Except for service contracts
dealing with bulk cargo, forest products, recycled metal scrap, new
assembled motor vehicles, waste paper, or paper waste, each
contract entered into under this subsection by an individual ocean
common carrier or an agreement shall be filed confidentially with
the Commission. Each service contract shall include the following
essential terms--
``(A) the origin and destination port ranges;
``(B) the origin and destination geographic areas in the
case of through intermodal movements;
``(C) the commodity or commodities involved;
``(D) the minimum volume or portion;
``(E) the line-haul rate;
``(F) the duration;
``(G) service commitments; and
``(H) the liquidated damages for nonperformance, if any.
``(3) Publication of certain terms.--When a service contract is
filed confidentially with the Commission, a concise statement of
the essential terms described in paragraphs 2 (A), (C), (D), and
(F) shall be published and made available to the general public in
tariff format.
``(4) Disclosure of certain terms.--
``(A) An ocean common carrier, which is a party to or is
subject to the provisions of a collective bargaining agreement
with a labor organization, shall, in response to a written
request by such labor organization, state whether it is
responsible for the following work at dock areas and within
port areas in the United States with respect to cargo
transportation under a service contract described in paragraph
(1) of this subsection--
``(i) the movement of the shipper's cargo on a dock
area or within the port area or to or from railroad cars on
a dock area or within the port area;
``(ii) the assignment of intraport carriage of the
shipper's cargo between areas on a dock or within the port
area;
``(iii) the assignment of the carriage of the shipper's
cargo between a container yard on a dock area or within the
port area and a rail yard adjacent to such container yard;
and
``(iv) the assignment of container freight station work
and container maintenance and repair work performed at a
dock area or within the port area.
``(B) The common carrier shall provide the information
described in subparagraph (A) of this paragraph to the
requesting labor organization within a reasonable period of
time.
``(C) This paragraph requires the disclosure of information
by an ocean common carrier only if there exists an applicable
and otherwise lawful collective bargaining agreement which
pertains to that carrier. No disclosure made by an ocean common
carrier shall be deemed to be an admission or agreement that
any work is covered by a collective bargaining agreement. Any
dispute regarding whether any work is covered by a collective
bargaining agreement and the responsibility of the ocean common
carrier under such agreement shall be resolved solely in
accordance with the dispute resolution procedures contained in
the collective bargaining agreement and the National Labor
Relations Act, and without reference to this paragraph.
``(D) Nothing in this paragraph shall have any effect on
the lawfulness or unlawfulness under this Act, the National
Labor Relations Act, the Taft-Hartley Act, the Federal Trade
Commission Act, the antitrust laws, or any other Federal or
State law, or any revisions or amendments thereto, of any
collective bargaining agreement or element thereof, including
any element that constitutes an essential term of a service
contract under this subsection.
``(E) For purposes of this paragraph the terms `dock area'
and `within the port area' shall have the same meaning and
scope as in the applicable collective bargaining agreement
between the requesting labor organization and the carrier.''.
(c) Rates.--Subsection (d) of that section is amended by--
(1) striking the subsection caption and inserting ``(d) Tariff
Rates.--'';
(2) striking ``30 days after filing with the Commission.'' in
the first sentence and inserting ``30 calendar days after
publication.'';
(3) inserting ``calendar'' after ``30'' in the next sentence;
and
(4) striking ``publication and filing with the Commission.'' in
the last sentence and inserting ``publication.''.
(d) Refunds.--Subsection (e) of that section is amended by--
(1) striking ``tariff of a clerical or administrative nature or
an error due to inadvertence'' in paragraph (1) and inserting a
comma; and
(2) striking ``file a new tariff,'' in paragraph (1) and
inserting ``publish a new tariff, or an error in quoting a
tariff,'';
(3) striking ``refund, filed a new tariff with the Commission''
in paragraph (2) and inserting ``refund for an error in a tariff or
a failure to publish a tariff, published a new tariff'';
(4) inserting ``and'' at the end of paragraph (2); and
(5) striking paragraph (3) and redesignating paragraph (4) as
paragraph (3).
(e) Marine Terminal Operator Schedules.--Subsection (f) of that
section is amended to read as follows:
``(f) Marine Terminal Operator Schedules.--A marine terminal
operator may make available to the public, subject to section 10(d) of
this Act, a schedule of rates, regulations, and practices, including
limitations of liability for cargo loss or damage, pertaining to
receiving, delivering, handling, or storing property at its marine
terminal. Any such schedule made available to the public shall be
enforceable by an appropriate court as an implied contract without
proof of actual knowledge of its provisions.''.
(f) Automated Tariff System Requirements; Form.--Section 8 of that
Act is amended by adding at the end the following:
``(g) Regulations.--The Commission shall by regulation prescribe
the requirements for the accessibility and accuracy of automated tariff
systems established under this section. The Commission may, after
periodic review, prohibit the use of any automated tariff system that
fails to meet the requirements established under this section. The
Commission may not require a common carrier to provide a remote
terminal for access under subsection (a)(2). The Commission shall by
regulation prescribe the form and manner in which marine terminal
operator schedules authorized by this section shall be published.''.

837d64d1f6b747831cdccb88e11de6e7e26489e52ea0b9829c6e9a77038d8f0a

Section 502 of the High Seas Driftnet Fisheries Enforcement Act (46
U.S.C. App. 1707a) is repealed.

9d8427b9bc957abc28b89058b980a30250032a55e7f90bb806b9cb0727ba4de9

Section 9 of the Shipping Act of 1984 (46 U.S.C. App. 1708) is
amended by--
(1) striking ``service contracts filed with the Commission'' in
the first sentence of subsection (a) and inserting ``service
contracts, or charge or assess rates,'';
(2) striking ``or maintain'' in the first sentence of
subsection (a) and inserting ``maintain, or enforce'';
(3) striking ``disapprove'' in the third sentence of subsection
(a) and inserting ``prohibit the publication or use of''; and
(4) striking ``filed by a controlled carrier that have been
rejected, suspended, or disapproved by the Commission'' in the last
sentence of subsection (a) and inserting ``that have been suspended
or prohibited by the Commission'';
(5) striking ``may take into account appropriate factors
including, but not limited to, whether--'' in subsection (b) and
inserting ``shall take into account whether the rates or charges
which have been published or assessed or which would result from
the pertinent classifications, rules, or regulations are below a
level which is fully compensatory to the controlled carrier based
upon that carrier's actual costs or upon its constructive costs.
For purposes of the preceding sentence, the term `constructive
costs' means the costs of another carrier, other than a controlled
carrier, operating similar vessels and equipment in the same or a
similar trade. The Commission may also take into account other
appropriate factors, including but not limited to, whether--'';
(6) striking paragraph (1) of subsection (b) and redesignating
paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3),
respectively;
(7) striking ``filed'' in paragraph (1) as redesignated and
inserting ``published or assessed'';
(8) striking ``filing with the Commission.'' in subsection (c)
and inserting ``publication.'';
(9) striking ``Disapproval of Rates.--'' in subsection (d) and
inserting ``Prohibition of Rates.--Within 120 days after the
receipt of information requested by the Commission under this
section, the Commission shall determine whether the rates, charges,
classifications, rules, or regulations of a controlled carrier may
be unjust and unreasonable.'';
(10) striking ``filed'' in subsection (d) and inserting
``published or assessed'';
(11) striking ``may issue'' in subsection (d) and inserting
``shall issue'';
(12) striking ``disapproved.'' in subsection (d) and inserting
``prohibited.'';
(13) striking ``60'' in subsection (d) and inserting ``30'';
(14) inserting ``controlled'' after ``affected'' in subsection
(d);
(15) striking ``file'' in subsection (d) and inserting
``publish'';
(16) striking ``disapproval'' in subsection (e) and inserting
``prohibition'';
(17) inserting ``or'' after the semicolon in subsection (f)(1);
(18) striking paragraphs (2), (3), and (4) of subsection (f);
and
(19) redesignating paragraph (5) of subsection (f) as paragraph
(2).

b42a383faff438ba16d0c5837e0768c1c1dcfdcf27519b9d24ddc4c07fc78629

(a) Section 10(b) of the Shipping Act of 1984 (46 U.S.C. App.
1709(b)) is amended by--
(1) striking paragraphs (1) through (3);
(2) redesignating paragraph (4) as paragraph (1);
(3) inserting after paragraph (1), as redesignated, the
following:
``(2) provide service in the liner trade that--
``(A) is not in accordance with the rates, charges,
classifications, rules, and practices contained in a tariff
published or a service contract entered into under section 8 of
this Act unless excepted or exempted under section 8(a)(1) or
16 of this Act; or
``(B) is under a tariff or service contract which has been
suspended or prohibited by the Commission under section 9 of
this Act or the Foreign Shipping Practices Act of 1988 (46
U.S.C. App. 1710a);'';
(4) redesignating paragraphs (5) and (6) as paragraphs (3) and
(4), respectively;
(5) striking ``except for service contracts,'' in paragraph
(4), as redesignated, and inserting ``for service pursuant to a
tariff,'';
(6) striking ``rates;'' in paragraph (4)(A), as redesignated,
and inserting ``rates or charges;'';
(7) inserting after paragraph (4), as redesignated, the
following:
``(5) for service pursuant to a service contract, engage in any
unfair or unjustly discriminatory practice in the matter of rates
or charges with respect to any port;'';
(8) redesignating paragraphs (7) and (8) as paragraphs (6) and
(7), respectively;
(9) striking paragraph (6) as redesignated and inserting the
following:
``(6) use a vessel or vessels in a particular trade for the
purpose of excluding, preventing, or reducing competition by
driving another ocean common carrier out of that trade;'';
(10) striking paragraphs (9) through (13) and inserting the
following:
``(8) for service pursuant to a tariff, give any undue or
unreasonable preference or advantage or impose any undue or
unreasonable prejudice or disadvantage;
``(9) for service pursuant to a service contract, give any
undue or unreasonable preference or advantage or impose any undue
or unreasonable prejudice or disadvantage with respect to any port;
``(10) unreasonably refuse to deal or negotiate;'';
(11) redesignating paragraphs (14), (15), and (16) as
paragraphs (11), (12), and (13), respectively;
(12) striking ``a non-vessel-operating common carrier'' in
paragraphs (11) and (12) as redesignated and inserting ``an ocean
transportation intermediary'';
(13) striking ``sections 8 and 23'' in paragraphs (11) and (12)
as redesignated and inserting ``sections 8 and 19'';
(14) striking ``or in which an ocean transportation
intermediary is listed as an affiliate'' in paragraph (12), as
redesignated;
(15) striking ``Act;'' in paragraph (12), as redesignated, and
inserting ``Act, or with an affiliate of such ocean transportation
intermediary;''
(16) striking ``paragraph (16)'' in the matter appearing after
paragraph (13), as redesignated, and inserting ``paragraph (13)'';
and
(17) inserting ``the Commission,'' after ``United States,'' in
such matter.
(b) Section 10(c) of the Shipping Act of 1984 (46 U.S.C. App.
1709(c)) is amended by--
(1) striking ``non-ocean carriers'' in paragraph (4) and
inserting ``non-ocean carriers, unless such negotiations and any
resulting agreements are not in violation of the antitrust laws and
are consistent with the purposes of this Act'';
(2) striking ``freight forwarder'' in paragraph (5) and
inserting ``transportation intermediary, as defined by section
3(17)(A) of this Act,'';
(3) striking ``or'' at the end of paragraph (5);
(4) striking ``contract.'' in paragraph (6) and inserting
``contract;''; and
(5) adding at the end the following:
``(7) for service pursuant to a service contract, engage in any
unjustly discriminatory practice in the matter of rates or charges
with respect to any locality, port, or persons due to those
persons' status as shippers' associations or ocean transportation
intermediaries; or
``(8) for service pursuant to a service contract, give any
undue or unreasonable preference or advantage or impose any undue
or unreasonable prejudice or disadvantage with respect to any
locality, port, or persons due to those persons' status as
shippers' associations or ocean transportation intermediaries;''.
(c) Section 10(d) of the Shipping Act of 1984 (46 U.S.C. App.
1709(d)) is amended by--
(1) striking ``freight forwarders,'' and inserting
``transportation intermediaries,'';
(2) striking ``freight forwarder,'' in paragraph (1) and
inserting ``transportation intermediary,'';
(3) striking ``subsection (b)(11), (12), and (16)'' and
inserting ``subsections (b)(10) and (13)''; and
(4) adding at the end thereof the following:
``(4) No marine terminal operator may give any undue or
unreasonable preference or advantage or impose any undue or
unreasonable prejudice or disadvantage with respect to any person.
``(5) The prohibition in subsection (b)(13) of this section
applies to ocean transportation intermediaries, as defined by
section 3(17)(A) of this Act.''.

8d9de1ec60984f2c760f6e9374923319b780c0d0214538bdfbe90e00dcf9a778

Section 11(g) of the Shipping Act of 1984 (46 U.S.C. App. 1710(g))
is amended by--
(1) striking ``section 10(b)(5) or (7)'' and inserting
``section 10(b)(3) or (6)''; and
(2) striking ``section 10(b)(6)(A) or (B)'' and inserting
``section 10(b)(4)(A) or (B).''.

0abbc833266b0546fe45052070e7d13add459e54c8cb6c6f087240c755078ac0

Section 10002 of the Foreign Shipping Practices Act of 1988 (46
U.S.C. App. 1710a) is amended by--
(1) striking ```non-vessel-operating common carrier','' in
subsection (a)(1) and inserting ```ocean transportation
intermediary','';
(2) striking ``forwarding and'' in subsection (a)(4);
(3) striking ``non-vessel-operating common carrier'' in
subsection (a)(4) and inserting ``ocean transportation intermediary
services and'';
(4) striking ``freight forwarder,'' in subsections (c)(1) and
(d)(1) and inserting ``transportation intermediary,'';
(5) striking ``filed with the Commission,'' in subsection
(e)(1)(B) and inserting ``and service contracts,'';
(6) inserting ``and service contracts'' after ``tariffs'' the
second place it appears in subsection (e)(1)(B); and
(7) striking ``(b)(5)'' each place it appears in subsection (h)
and inserting ``(b)(6)''.

c525a259e3a1f22523e93a3515b4be9782aa2d82fd2c1f95d7c39df67190de00

(a) Section 13(a) of the Shipping Act of 1984 (46 U.S.C. App.
1712(a)) is amended by adding at the end thereof the following: ``The
amount of any penalty imposed upon a common carrier under this
subsection shall constitute a lien upon the vessels operated by that
common carrier and any such vessel may be libeled therefore in the
district court of the United States for the district in which it may be
found.''.
(b) Section 13(b) of the Shipping Act of 1984 (46 U.S.C. App.
1712(b)) is amended by--
(1) striking ``section 10(b)(1), (2), (3), (4), or (8)'' in
paragraph (1) and inserting ``section 10(b)(1), (2), or (7)'';
(2) by redesignating paragraphs (4), (5), and (6) as paragraphs
(5), (6), and (7), respectively;
(3) inserting before paragraph (5), as redesignated, the
following:
``(4) If the Commission finds, after notice and an opportunity
for a hearing, that a common carrier has failed to supply
information ordered to be produced or compelled by subpoena under
section 12 of this Act, the Commission may request that the
Secretary of the Treasury refuse or revoke any clearance required
for a vessel operated by that common carrier. Upon request by the
Commission, the Secretary of the Treasury shall, with respect to
the vessel concerned, refuse or revoke any clearance required by
section 4197 of the Revised Statutes of the United States (46
U.S.C. App. 91).''; and
(4) striking ``paragraphs (1), (2), and (3)'' in paragraph (6),
as redesignated, and inserting ``paragraphs (1), (2), (3), and
(4)''.
(c) Section 13(f)(1) of the Shipping Act of 1984 (46 U.S.C. App.
1712(f)(1)) is amended by--
(1) striking ``or (b)(4)'' and inserting ``or (b)(2)'';
(2) striking ``(b)(1), (4)'' and inserting ``(b)(1), (2)''; and
(3) adding at the end thereof the following ``Neither the
Commission nor any court shall order any person to pay the
difference between the amount billed and agreed upon in writing
with a common carrier or its agent and the amount set forth in any
tariff or service contract by that common carrier for the
transportation service provided.''.

589e34ef86a4bbf613ac97aa821aa9928e4bc6ed6a21c05f099ac51bef4f1048

Section 15 of the Shipping Act of 1984 (46 U.S.C. App. 1714) is
amended by--
(1) striking ``and certificates'' in the section heading;
(2) striking ``(a) Reports.--'' in the subsection heading for
subsection (a); and
(3) striking subsection (b).

81f041b06ea2bf635f8c770751eae4c1f280b3cdf2e092bec5013c0806ee90a3

Section 16 of the Shipping Act of 1984 (46 U.S.C. App. 1715) is
amended by striking ``substantially impair effective regulation by the
Commission, be unjustly discriminatory, result in a substantial
reduction in competition, or be detrimental to commerce.'' and
inserting ``result in substantial reduction in competition or be
detrimental to commerce.''.

95b4e3e33b809f9a893c372dcb1a63e334430d61cd9732915110e266992b417b

Section 18 of the Shipping Act of 1984 (46 U.S.C. App. 1717) is
repealed.

960e74e9a842c3547eb6e69352a52dcbc2a316b765ddf4929dfcbaa468a1d7da

Section 19 of the Shipping Act of 1984 (46 U.S.C. App. 1718) is
amended by--
(1) striking ``freight forwarders'' in the section caption and
inserting ``transportation intermediaries'';
(2) striking subsection (a) and inserting the following:
``(a) License.--No person in the United States may act as an ocean
transportation intermediary unless that person holds a license issued
by the Commission. The Commission shall issue an intermediary's license
to any person that the Commission determines to be qualified by
experience and character to act as an ocean transportation
intermediary.'';
(3) redesignating subsections (b), (c), and (d) as subsections
(c), (d), and (e), respectively;
(4) inserting after subsection (a) the following:
``(b) Financial Responsibility.--
``(1) No person may act as an ocean transportation intermediary
unless that person furnishes a bond, proof of insurance, or other
surety in a form and amount determined by the Commission to insure
financial responsibility that is issued by a surety company found
acceptable by the Secretary of the Treasury.
``(2) A bond, insurance, or other surety obtained pursuant to
this section--
``(A) shall be available to pay any order for reparation
issued pursuant to section 11 or 14 of this Act, or any penalty
assessed pursuant to section 13 of this Act;
``(B) may be available to pay any claim against an ocean
transportation intermediary arising from its transportation-
related activities described in section 3(17) of this Act with
the consent of the insured ocean transportation intermediary
and subject to review by the surety company, or when the claim
is deemed valid by the surety company after the ocean
transportation intermediary has failed to respond to adequate
notice to address the validity of the claim; and
``(C) shall be available to pay any judgment for damages
against an ocean transportation intermediary arising from its
transportation-related activities under section 3(17) of this
Act, provided the claimant has first attempted to resolve the
claim pursuant to subparagraph (B) of this paragraph and the
claim has not been resolved within a reasonable period of time.
``(3) The Commission shall prescribe regulations for the
purpose of protecting the interests of claimants, ocean
transportation intermediaries, and surety companies with respect to
the process of pursuing claims against ocean transportation
intermediary bonds, insurance, or sureties through court judgments.
The regulations shall provide that a judgment for monetary damages
may not be enforced except to the extent that the damages claimed
arise from the transportation-related activities of the insured
ocean transportation intermediary, as defined by the Commission.
``(4) An ocean transportation intermediary not domiciled in the
United States shall designate a resident agent in the United States
for receipt of service of judicial and administrative process,
including subpoenas.'';
(5) striking, each place such term appears--
(A) ``freight forwarder'' and inserting ``transportation
intermediary'';
(B) ``a forwarder's'' and inserting ``an intermediary's'';
(C) ``forwarder'' and inserting ``intermediary''; and
(D) ``forwarding'' and inserting ``intermediary'';
(6) striking ``a bond in accordance with subsection (a)(2).''
in subsection (c), as redesignated, and inserting ``a bond, proof
of insurance, or other surety in accordance with subsection
(b)(1).'';
(7) striking ``Forwarders.--''  in the caption of subsection
(e), as redesignated, and inserting ``Intermediaries.--'';
(8) striking ``intermediary'' the first place it appears in
subsection (e)(1), as redesignated and as amended by paragraph
(5)(A), and inserting ``intermediary, as defined in section
3(17)(A) of this Act,'';
(9) striking ``license'' in paragraph (1) of subsection (e), as
redesignated, and inserting ``license, if required by subsection
(a),'';
(10) striking paragraph (3) of subsection (e), as redesignated,
and redesignating paragraph (4) as paragraph (3); and
(11) adding at the end of subsection (e), as redesignated, the
following:
``(4) No conference or group of 2 or more ocean common carriers
in the foreign commerce of the United States that is authorized to
agree upon the level of compensation paid to an ocean
transportation intermediary, as defined in section 3(17)(A) of this
Act, may--
``(A) deny to any member of the conference or group the
right, upon notice of not more than 5 calendar days, to take
independent action on any level of compensation paid to an
ocean transportation intermediary, as so defined; or
``(B) agree to limit the payment of compensation to an
ocean transportation intermediary, as so defined, to less than
1.25 percent of the aggregate of all rates and charges which
are applicable under a tariff and which are assessed against
the cargo on which the intermediary services are provided.''.

8ca53cd4ead4155ca2ceb846f32ece3e86c0466a2ff134ccd7dd239e55202efd

LEGISLATION.
Section 20 of the Shipping Act of 1984 (46 U.S.C. App. 1719) is
amended by--
(1) striking subsection (d) and inserting the following:
``(d) Effects on Certain Agreements and Contracts.--All agreements,
contracts, modifications, licenses, and exemptions previously issued,
approved, or effective under the Shipping Act, 1916, or the Shipping
Act of 1984, shall continue in force and effect as if issued or
effective under this Act, as amended by the Ocean Shipping Reform Act
of 1998, and all new agreements, contracts, and modifications to
existing, pending, or new contracts or agreements shall be considered
under this Act, as amended by the Ocean Shipping Reform Act of 1998.'';
(2) inserting the following at the end of subsection (e):
``(3) The Ocean Shipping Reform Act of 1998 shall not affect
any suit--
``(A) filed before the effective date of that Act; or
``(B) with respect to claims arising out of conduct engaged
in before the effective date of that Act filed within 1 year
after the effective date of that Act.
``(4) Regulations issued by the Federal Maritime Commission
shall remain in force and effect where not inconsistent with this
Act, as amended by the Ocean Shipping Reform Act of 1998.''.

6ee7c3e2da4f3e20f8aabea171afdbc1f14d9341f04f2d60ab034008b3c0fd2e

Section 23 of the Shipping Act of 1984 (46 U.S.C. App. 1721) is
repealed.
COMMISSION

561d462cd204feb5a7239e8bc9cc8cb66a2c9516a69389d7b9f6c06586a9b81a

There are authorized to be appropriated to the Federal Maritime
Commission, $15,000,000 for fiscal year 1998.

8e949595ce7f6b7d35a4b68a8ffcbf9bff4664f44a93969e0d726579d14e0989

TITLE II

-AUTHORIZATION OF APPROPRIATIONS FOR THE FEDERAL MARITIME

Section 102(d) of Reorganization Plan No. 7 of 1961 (75 Stat. 840)
is amended to read as follows:
``(d) A vacancy or vacancies in the membership of Commission shall
not impair the power of the Commission to execute its functions. The
affirmative vote of a majority of the members serving on the Commission
is required to dispose of any matter before the Commission.''.

e2f67205a3eba60445885b3b0947cd52d83a64699c69d2b58885c9f569201fee

Not later than March 1, 1999, the Federal Maritime Commission shall
prescribe final regulations to implement the changes made by this Act.

a38680e024aed5bbc3f3e2b13e4ecf03b43533eb47532b055c0f53dc0ccb6e01

1920.
(a) In General.--Section 19 of the Merchant Marine Act, 1920 (46
U.S.C. App. 876) is amended by--
(1) striking ``forwarding and'' in subsection (1)(b);
(2) striking ``non-vessel-operating common carrier
operations,'' in subsection (1)(b) and inserting ``ocean
transportation intermediary services and operations,'';
(3) striking ``methods or practices'' and inserting ``methods,
pricing practices, or other practices'' in subsection (1)(b);
(4) striking ``tariffs of a common carrier'' in subsection 7(d)
and inserting ``tariffs and service contracts of a common
carrier'';
(5) striking ``use the tariffs of conferences'' in subsections
(7)(d) and (9)(b) and inserting ``use tariffs of conferences and
service contracts of agreements'';
(6) striking ``tariffs filed with the Commission'' in
subsection (9)(b) and inserting ``tariffs and service contracts'';
(7) striking ``freight forwarder,'' each place it appears and
inserting ``transportation intermediary,''; and
(8) striking ``tariff'' each place it appears in subsection
(11) and inserting ``tariff or service contract''.
(b) Stylistic Conformity.--Section 19 of the Merchant Marine Act,
1920 (46 U.S.C. App. 876), as amended by subsection (a), is further
amended by--
(1) redesignating subdivisions (1) through (12) as subsections
(a) through (l), respectively;
(2) redesignating subdivisions (a), (b), and (c) of subsection
(a), as redesignated, as paragraphs (1), (2), and (3);
(3) redesignating subdivisions (a) through (d) of subsection
(f), as redesignated, as paragraphs (1) through (4), respectively;
(4) redesignating subdivisions (a) through (e) of subsection
(g), as redesignated, as paragraphs (1) through (5), respectively;
(5) redesignating clauses (i) and (ii) of subsection (g)(4), as
redesignated, as subparagraphs (A) and (B), respectively;
(6) redesignating subdivisions (a) through (e) of subsection
(i), as redesignated, as paragraphs (1) through (5), respectively;
(7) redesignating subdivisions (a) and (b) of subsection (j),
as redesignated, as paragraphs (1) and (2), respectively;
(8) striking ``subdivision (c) of paragraph (1)'' in subsection
(c), as redesignated, and inserting ``subsection (a)(3)'';
(9) striking ``paragraph (2)'' in subsection (c), as
redesignated, and inserting ``subsection (b)'';
(10) striking ``paragraph (1)(b)'' each place it appears and
inserting ``subsection (a)(2)'';
(11) striking ``subdivision (b),'' in subsection (g)(4), as
redesignated, and inserting ``paragraph (2),'';
(12) striking ``paragraph (9)(d)'' in subsection (j)(1), as
redesignated, and inserting ``subsection (i)(4)''; and
(13) striking ``paragraph (7)(d) or (9)(b)'' in subsection (k),
as redesignated, and inserting ``subsection (g)(4) or (i)(2)''.

1caf3454011bd2620b2b94407f8e4f4139c8e675d82043814054edbf71aec0ce

TITLE III

-AMENDMENTS TO OTHER SHIPPING AND MARITIME LAWS

(a) Public Law 89-777.--Sections 2 and 3 of the Act of November 6,
1966 (46 U.S.C. App. 817d and 817e) are amended by striking ``they in
their discretion'' each place it appears and inserting ``it in its
discretion''.
(b) Tariff Act of 1930.--Section 641(i) of the Tariff Act of 1930
(19 U.S.C. 1641) is repealed.

b7873cdf9c46c4320792f2241c6d55e0ad980f544baa449d0e2bb06911556c14

(a) The Secretary of Transportation may not issue a guarantee or
commitment to guarantee a loan for the construction, reconstruction, or
reconditioning of a liner vessel under the authority of title XI of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) after the date
of enactment of this Act unless the Chairman of the Federal Maritime
Commission certifies that the operator of such vessel--
(1) has not been found by the Commission to have violated
section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 876),
or the Foreign Shipping Practices Act of 1988 (46 U.S.C. App.
1701a), within the previous 5 years; and
(2) has not been found by the Commission to have committed a
violation of the Shipping Act of 1984 (46 U.S.C. App. 1701 et
seq.), which involves unjust or unfair discriminatory treatment or
undue or unreasonable prejudice or disadvantage with respect to a
United States shipper, ocean transportation intermediary, ocean
common carrier, or port within the previous 5 years.
(b) The Secretary of Commerce may not issue a guarantee or a
commitment to guarantee a loan for the construction, reconstruction, or
reconditioning of a fishing vessel under the authority of title XI of
the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) if the
fishing vessel operator has been--
(1) held liable or liable in rem for a civil penalty pursuant
to section 308 of the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1858) and not paid the penalty;
(2) found guilty of an offense pursuant to section 309 of the
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C.
1859) and not paid the assessed fine or served the assessed
sentence;
(3) held liable for a civil or criminal penalty pursuant to
section 105 of the Marine Mammal Protection Act of 1972 (16 U.S.C.
1375) and not paid the assessed fine or served the assessed
sentence; or
(4) held liable for a civil penalty by the Coast Guard pursuant
to title 33 or 46, United States Code, and not paid the assessed
fine.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

fa1e406408705d6e7ed75fee1f757098b2e303ba64d5d028c8841d370eafb457

Ocean Shipping Reform Act of 1998

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

Want the full experience?