Legal Definitions - Maritime Commission

The term "Maritime Commission" most commonly refers to the Federal Maritime Commission (FMC), an independent agency of the U.S. government.

The Federal Maritime Commission (FMC) is responsible for regulating the international ocean transportation system of the United States. Its primary mission is to ensure a competitive, efficient, and reliable ocean transportation supply chain, protecting the public from unfair or discriminatory practices by ocean common carriers and marine terminal operators. The FMC oversees agreements between ocean carriers, investigates complaints, and enforces regulations to promote fair dealing and prevent discrimination in the U.S. foreign ocean trades, ultimately benefiting U.S. exporters, importers, and consumers.

Here are some examples of how the Federal Maritime Commission's work applies:

• Example 1: Protecting Shippers from Unfair Charges

  A small furniture importer in North Carolina regularly ships containers from Vietnam to the Port of Charleston. One month, their ocean carrier suddenly adds a new "peak season surcharge" to their invoice, even though the shipping volume is typical for the time of year and there's no clear justification provided. The importer believes this charge is arbitrary and excessive.

  How it illustrates the term: The importer can file a complaint with the Federal Maritime Commission. The FMC would investigate whether the carrier's surcharge is reasonable, properly disclosed, and non-discriminatory under U.S. shipping laws, ensuring that ocean carriers do not impose unjustified fees on American businesses.

• Example 2: Ensuring Competition Among Carriers

  Two of the largest global container shipping lines propose to form a new operational alliance. This alliance would allow them to share vessel space, coordinate sailing schedules, and jointly market their services on routes between the U.S. and Asia. While this could lead to more efficient service, there's a concern that it might reduce competition and potentially lead to higher freight rates for shippers.

  How it illustrates the term: Before such an alliance can operate, the carriers must submit their agreement to the Federal Maritime Commission for review. The FMC will scrutinize the agreement to ensure it does not unduly reduce competition, create an unreasonable increase in transportation costs, or operate to the detriment of U.S. commerce, thereby maintaining a healthy competitive market.

• Example 3: Addressing Port Terminal Issues

  A trucking company that serves the Port of Long Beach frequently encounters extremely long wait times at a particular marine terminal, sometimes hours beyond their scheduled appointment. These delays often result in the trucking company incurring "demurrage" fees (penalties for containers sitting too long at the terminal) and "detention" fees (penalties for holding carrier equipment too long), even though the delays are caused by the terminal's operational inefficiencies.

  How it illustrates the term: The trucking company, or the shippers they represent, can bring these issues to the attention of the Federal Maritime Commission. The FMC has regulations in place, such as those related to demurrage and detention, designed to ensure that marine terminal operators and ocean carriers apply these charges fairly and reasonably, preventing them from being used as revenue generators when delays are beyond the control of the cargo owner or trucker.