The FMC was established as an independent regulatory agency by Reorganization Plan No. 7, effective August 12, 1961. Prior to that time, the United States 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, while the promotional role was vested in the Maritime Administration (now part of the U.S. Department of Transportation).[3]
The passage of the Shipping Act of 1984 brought about a major deregulatory 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 further deregulatory amendments and modifications to the Shipping Act of 1984, represented another pro-market 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 (OSRA) of 1998,[4] which took effect on May 1, 1999, and the Ocean Shipping Reform Act of 2022.[5][6]
Organization
The commission is composed of five commissioners, appointed by the President by and with the advice and consent of the Senate. It is a bipartisan commission, so no more than three commissioners may be appointed from the same political party. The term of each commissioner is five years, with one term ending every year on June 30. When the term of a commissioner ends, the commissioner may continue to serve until a successor is appointed and qualified, but for a period not to exceed two years. Commissioners may serve a maximum of three terms. If they were initially appointed to fill a vacancy for an unexpired term, they may serve three terms in addition to that initial partial term. The President designates one of the commissioners as Chairman, who serves as the chief executive and administrative officer of the commission.[7]
Current commissioners
List of commissioners as of September 11, 2024:[8]
Regulations concerning Ocean Transport Intermediaries
Definitions
The FMC regulations regulate the activities of Ocean Transport Intermediaries (OTIs) in the US. The FMC regulations define OTI to include two classes of logistics service providers: (1) ocean freight forwarders and (2) non-vessel operating common carriers (NVOCCs).[10]
The FMC regulations define "ocean freight forwarder" as 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.[10]
The FMC regulations define "NVOCC" as 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.[10]
Licensing requirements
OTIs must be licensed by the FMC before they perform OTI services in the United States.[11] Requirements for licensing are found at 46 CFR §§ 515.11-515.27.
The FMC regulations set out certain rules regarding fees that freight forwarders may charge to their customers and compensation that freight forwarders may receive from carriers at 46 CFR §§ 515.41-515.91.
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