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FEDERAL MARITIME COMMISSION

FINAL ANNUAL PERFORMANCE PLAN

FOR FY 2004

March 2003

LIST OF ACRONYMS

1984 Act Shipping Act of 1984

ADR Alternative Dispute Resolution

ALJ Administrative Law Judge

BCCL Bureau of Consumer Complaints &Licensing

FMC/Commission Federal Maritime Commission

FTE Full Time Equivalent Employee

FY Fiscal Year

GC General Counsel

GPRA Government Performance and ResultsAct

IT Information Technology

OGC Office of General Counsel

OMB Office of Management and Budget

OSRA Ocean Shipping Reform Act of 1998

OTI Ocean Transportation Intermediary

PVO Passenger Vessel Operator

RPI Regulated Persons Index

VOCC Vessel-Operating Common Carrier

INTRODUCTION

This document comprises the FMC’s Final Annual Performance Plan for FY 2004.As set forth in GPRA and general guidelines published by OMB, the Commissionhas prepared a single Performance Plan so as to present a comprehensive picture ofperformance across the agency. This plan is closely linked to the agency’s StrategicPlan, although its content is more detailed and specific as opposed to the general andlong-term focus of the Strategic Plan. We also have concentrated on developingobjective performance goals and narrow, measurable performance indicators, so asto facilitate the plan’s implementation and assessment of performance.

Our FY 2004 Plan continues our efforts to take better advantage of emergingtechnologies and to offer time/cost saving e-services to regulated entities and thepublic at large. We have included several performance goals designed to automatecurrent processes and improve our exchange of information both internally andexternally.

Our FY 2004 Plan also places a particular focus on security as it relates to oceancommerce; we have been active in this regard since the events of September 11,2001. We have identified specific performance goals to improve the effectivenessof our joint activities with other government agencies, and to heighten our awarenessof security issues as we perform our ongoing statutory functions.

The Commission’s Annual Performance Plan comports with the overall objectivesof GPRA, while maintaining flexibility in its presentation and application. Thismodified approach has been authorized by OMB since the majority of Commissionactivities are statute-driven and our goals essentially are based upon legislativemandates which are clear and direct. Significant alteration of our existing programsis not possible, given that many measures and goals are required by statute. Accordingly, OMB agreed that the Commission should use an appropriately scaledmechanism for GPRA process and development with a framework which would beproductive, yet less resource-intensive. Nonetheless, our plan presents relevantinformation clearly and concisely, and strives to be as detailed as necessary whileavoiding minutiae.

Our plan sets forth the mission statement and general goals from our Strategic Plan,as a point of reference for the reader. In accordance with general OMB guidance, wehave prepared performance goals for each of the five Program Activities reflectedin our budget. The strategic goals aligned with these performance goals areappropriately displayed. Each performance goal has been stated as a narrow,measurable objective. For each performance goal, we have identified the intendedoutcomes, appropriate performance indicators, the processes and resources requiredto accomplish it, and the means for measuring/evaluating performance. To ensure

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a clear understanding of the plan’s contents, set forth below are definitions of basicterms used. We relied on OMB’s published guidance for these definitions, and haveincluded parenthetically our interpretation of their practical application.

Budget Program Activity - The FMC’s Program Activities as listed in the programand financing schedules of the agency budget (the agency’s major activities).

Performance Goal - A target level of performance; a measurable objective (aspecific, proposed performance action).

Outcome - Intended result or consequence of the Program Activity (the projectedeffect or what is hoped to be achieved).

Performance Indicator - A value or characteristic for measuring results (thequantifier or qualifier of performance).

Processes/Activities - The processes, skills, or resources that are required toeffectively accomplish a performance goal (what is needed to achieve the goal).

Performance Measure/Evaluation - The means used to verify and validate measuredvalues (methods used for assessing if programs achieved objectives, or, the specificmeans to measure if outcomes were realized).

The Commission used its existing consultation process in developing this plan. Wehave kept key Congressional Committees apprised of our planning process andefforts, and have responded to any inquiries. We also have remained fully apprisedof the views and positions of all entities involved in the ocean shipping industry viaregular and continuing contacts at all levels of the agency. We have usedrulemakings and formal inquiries to solicit industry views on particular issues. Andwe continued our ad hoc meetings and visits with all sectors of the industry todiscuss the state of U.S. ocean shipping and the FMC’s oversight responsibilities.We continue to obtain industry feedback on specific areas of relevance that need tobe addressed, and ensure that all appropriate channels of communication are utilizedeffectively. The opinions and comments we received have assisted us in developingour performance goals and implementing approaches. While there is no industry consensus, it is clear that those involved in the varioussectors of U.S. ocean shipping have a full understanding of the Commission’s majorprogram activities, and at the same time, the Commission is fully cognizant of theviews of all parties with whom it interacts. Therefore, it was not necessary for theCommission to embark on further outreach efforts when developing this plan. In line with OMB guidance, the Commission has reflected the resources needed toaccomplish its performance goals. We have provided an FTE and funding figure for

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each Budget Program Activity, which reflects what we believe will be required toaccomplish the three performance goals under each respective Activity. It isimportant to note that these figures, when summed, do not reflect the full FTE andfunding levels of our FY 2004 budget. Naturally, the Commission performssignificant duties beyond those reflected in our performance goals, and alsoaccomplishes a host of day-to-day responsibilities that do not rise to the level of ahigh-profile performance goal. Those activities clearly require the allocation ofnecessary resources. The portion of our FTEs and funding not specifically reflectedin this plan is necessary to perform those other activities.

The Commission will post this Performance Plan on its Internet website to ensurethat it is readily accessible to interested parties, and will advise all employees to takethe time to review it. Additionally, all employee performance plans are required tocomport with the agency’s Strategic and Annual Performance Plans, and containspecific elements and standards aimed at achieving the agency’s strategic andperformance goals. Performance of managers and staff is evaluated in part on howthey achieve the objectives in this plan.

FMC MISSION

To achieve its vision, the FMC’s mission is:

Advance the Nation’s interests by fostering an efficient,competitive, secure, market-driven, and nondiscriminatory oceantransportation system that is free of unfair foreign maritime tradepractices and market-distorting activities.

OSRA and the events of September 11, 2001, have significantly changed the mannerin which the business of ocean shipping is being conducted. The industry continuesto restructure its operations to adapt to dynamic economic conditions, emergingtrends, and maritime security efforts. International trade remains dependent upon anefficient ocean transportation system. Therefore, it is imperative for the FMC toensure that its oversight activities produce a competitive trading environment in U.S.ocean commerce that is in harmony with and responsive to international shippingpractices, and permits fair and open commerce. We must focus our energies andefforts on this mission, and assure that the agency is organized and managed in amanner best suited to accomplish it with a minimum of government intervention andregulatory cost. Effective use of emerging information technologies will facilitateour efforts. Our actions also must encourage the development of a sound U.S.-flagliner fleet. Accordingly, the FMC has established the following five strategic goalsto carry out its statutory mandates.

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FMC STRATEGIC GOALS

1. Efficient Regulatory Process: Provide a timely, efficient and decisiveregulatory process, including alternative dispute resolution, to enable allsegments of the industry to operate more effectively, with a minimum ofregulatory costs.

2. Compliance: Promote efficiency and fairness in U.S. foreign waterbornecommerce through various means, including outreach and monitoring, toprotect the public and assist stakeholders in achieving compliance with oceantransportation statutes administered by the FMC.

3. Balanced Enforcement: Foster economic efficiencies, reliance onmarketplace factors and maritime security by administering U.S. shippingstatutes in a balanced and equitable manner to redress excessiveanticompetitive actions and other unlawful activities.

4. Technological Efficiencies: Employ technological enhancements to improveefficiency and to facilitate the exchange of information.

5. Management Capabilities: Ensure the FMC has the appropriateorganizational framework and management systems to carry out its statutorymandates.

LINKAGE BETWEEN MISSION STATEMENT

AND STRATEGIC GOALS

Our strategic goals address essential FMC statutory, programmatic, and managementresponsibilities. They were developed with a specific focus on accomplishing thebasic purposes of our mission and attaining the competitive, nondiscriminatoryshipping environment envisioned by the1984 Act, as amended by OSRA.

The primary intention of Strategic Goal 1 is to minimize regulatory costs bymaintaining timely and decisive regulatory processes, and providing various disputeresolution services. This will render the FMC more effective in addressing mattersthat perpetuate discrimination or preclude industry efficiency, while reducing thecosts of pursuing matters before the Commission. Decisive action and effectiveassistance in resolving informal complaints or disputes will help to remove

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uncertainties as to statutory interpretations or the application of FMC rules. Suchuncertainties may impede operational efficiencies or technological changes, each ofwhich can foster a more economical ocean shipping system.

Our second strategic goal centers on achieving compliance with the substantiveprovisions of the shipping statutes the FMC administers, and protecting thoseinvolved in U.S. ocean commerce from unfair practices. We will address this goalparticularly by interacting with all sectors of the industry, and by vigilant monitoringof ongoing commercial activities. Accomplishing this goal should minimize theunjust discrimination and undue preference or prejudice that precludes certainshipping interests from obtaining rates or service levels that can render theirbusinesses more economic and efficient. Increasing industry compliance shouldenable stakeholders to concentrate on fair and legal means of enhancing operationalefficiency, secure in the knowledge that competitors are not engaging in widespreadillegal actions aimed at improving short-term profits. The agency’s focus on thequalifications of intermediaries operating in the U.S. trades will afford greaterprotection to our stakeholders and contribute to national maritime security. Andcruise passengers also will be protected through the demonstration of financialresponsibility by passenger vessel operators.

Strategic Goal 3 is designed to foster economic efficiencies, assist maritime securityinitiatives, promote reliance on marketplace factors, and redress excessiveanticompetitive practices harmful to international commerce. This is a direct link toour mission statement’s call for an efficient, secure, competitive, market-drivenocean transportation system. Our continuing efforts to address the actions of foreigngovernments that adversely affect U.S. interests and our foreign trade comport withthat aspect of our mission aimed at creating an environment “free of unfair foreignmaritime trade practices.” Our focus on commercial malpractices enhances ourobjective of limiting unlawful activities.

We also have a specific strategic goal that focuses on making effective use ofadvancements in IT to improve the efficiency of our operations and enhance ourexchange of information with external parties. Carrying out the agency’s mission intimes of budgetary limitations dictates that we appropriately utilize all availableresources. Dynamic changes continue to be made in this area, and the Commissionintends to take advantage of any improvement that can enable it to perform itsfunctions more effectively. We plan to improve our business operations so as to addefficiency to the Commission’s dissemination and receipt of information. We intendto perform the research and analysis necessary to identify the best options forimplementing technical enhancements to facilitate our efforts to achieve our mission.

Finally, our fifth strategic goal addresses Commission management and operations.In order to achieve the objectives of our mission, we must maintain effectiveprocesses that enhance efficiency, without serving as ends in themselves. It is

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essential that we manage for results, and that we effectively tie our budget needs toour performance. This strategic goal serves as the internal underpinning that enablesus to accomplish the policy objectives set forth in our mission statement. This goalalso ensures continuation of a comprehensive approach to the strategic managementof our human capital.

Achieving these mission-driven goals will enable us to address the external factorswe face, while assuring an equitable and efficient administration of the shippingstatutes under our jurisdiction. Our processes and procedures will be refined orupdated as necessary. We are committed to accomplishing our strategic goals andthe outcome goals related to them. Therefore, specific means have been identifiedto enable the FMC to achieve these goals in the most cost-efficient and leastdisruptive manner possible.

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Budget Program Activity:

Related Strategic Goals:

Formal Proceedings - 9.7 FTEs and $1,485,577 will be required to accomplish the goals under this Program Activity.

1. Efficient Regulatory Process: Provide a timely, efficient and decisive regulatory process, including alternative dispute resolution, toenable all segments of the industry to operate more effectively, with a minimum of regulatory costs.

3. Balanced Enforcement: Foster economic efficiencies, reliance on marketplace factors and maritime security by administering U.S.shipping statutes in a balanced and equitable manner to redress excessive anticompetitive actions and other unlawful activities.

4. Technological Efficiencies: Employ technological enhancements to improve efficiency and to facilitate the exchange of information.

Performance Goal Outcome Performance Indicator Process/Activity PerformanceMeasure/Evaluation

1. Compile and convert toelectronic form ALJ InitialDecisions and Commission Reportsand Orders issued for the first yearsubsequent to the period covered byVolume 28 of Federal MaritimeCommission Reports.

- Facilitate public access tothe Commission’s decisions.- Enable stakeholders andthe public to proceed withactions or make businessdecisions more promptlyand in a more informedmanner with regard to thereasoning the Commission’sALJs and the Commissionitself applies to theresolution of shippingdisputes.- Reduce burden ofproviding hard copies ofsuch documents tointerested parties.

- Paper copies of ALJ InitialDecisions and CommissionReports and Orders for involvedperiod compiled and convertedto electronic format.- Positive feedback fromexternal and internal users.

- Office of Secretary compiles,on an FY basis, ALJ InitialDecisions and CommissionReports and Orders issued forthe first year subsequent to theperiod covered by Volume 28 ofFederal Maritime CommissionReports.- Hard copies scanned intoelectronic format.

- Office of Secretary reviewsnumber of paper copies of ALJInitial Decisions andCommission Reports and Orderscompiled and converted toelectronic form. - Assess feedback from externaland internal users. - Progress achieved andfeedback dictate whether tocontinue program in the future.


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2. Review Commission rules andevaluate for consistency with portand maritime security initiativesundertaken by Congress and otherFederal agencies. Amend rules asnecessary.

- Ensure uniformity amongFederal initiatives toimprove port and maritimesecurity.- Provide oceantransportation industry withclear and consistentregulatory requirements, toallow for efficient andsecure flow of oceantransportation.- Enhance protection of U.S.importers and exporters.

- Positive feedback fromstakeholders, the public andother agencies.

- OGC monitors legislative andregulatory efforts relating toport and maritime securityinitiatives. - OGC serves as liaison withCongress and with the NationalInfrastructure SecurityCommittee, Container WorkingGroup. - Chairman provides policydirection to OGC.- OGC coordinates withbureaus.- GC circulatesrecommendations to bureaus forinput.- GC submits to Commissionany recommendations to amendrules.

- Final Commissiondeterminations on staffrecommendations. - Assess comments received toproposed actions.- Assess impact of any proposalsfinalized.

3. Permanent Task Force onInternational Affairs monitorsforeign laws and practices todetermine whether there is anydisadvantage to U.S. interests or anyunjust non-market barriers to fairtrade.

- Helps eliminaterestrictions that unjustlydisadvantage U.S. interests.- Addresses non-marketbarriers that may impede thesecure and efficient flow ofU.S. imports and exports.- Advises FMC programareas of potential impact ofinternational laws orpractices on their programfunctions.

- Ongoing regular reports to theCommission. - Semiannual briefing papers toCommission. - Recommend appropriate FMCaction.

- Task Force comprised ofattorneys, economists andtransportation specialists whomeet on a regular basis. - Task Force researches,analyzes and exchangesinformation and preparesupdates and recommendations toCommission.- OGC liaison maintains regularcontact with Federal agenciesand representatives of foreigngovernments.

- GC monitors Task Forceefforts.- Information provided toCommission through reports andbriefings.- Ongoing dialogue with Federalagencies, U.S.-flag carriers andU.S. shipping interests. - Annual report to Congress andbudget submissions to OMB andCongress.

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Operational and Administrative - 15.2 FTEs and $2,348,492 will be required to accomplish the goals under this Program Activity.

1. Efficient Regulatory Process: Provide a timely, efficient and decisive regulatory process, including alternative dispute resolution,to enable all segments of the industry to operate more effectively, with a minimum of regulatory costs.

5. Management Capabilities: Ensure the FMC has the appropriate organizational framework and management systems to carry outits statutory mandates.


1. Ensure that informationdisseminated to the public complieswith all requirements of section 515of the Treasury and GeneralGovernment Appropriations Act forFiscal Year 2001, in accordancewith the procedures and standardsset forth in the Commission’spublished Information QualityGuidelines.

- Quality standards becomeintegral to the creation andcollection of information bythe agency.- Accurate, objectiveinformation furnished to thepublic. - Facilitate the staff’smaintenance anddissemination ofinformation. - Any inaccurateinformation disseminated ispromptly and properlycorrected.

- Number of requests forinformation correction receivedfrom the public.- Other feedback from interestedparties. - Bureau and office heads’oversight of the creation,collection, and maintenance ofinformation.

- Final Information QualityGuidelines issued in first quarterof FY 2004. - Guidelines posted on FMCwebsite. - Bureau/office heads ensurestaff complies with guidelines. - Office of Secretary coordinatesall dissemination of informationand processing of requests forcorrection.

- Office of Secretary ensuresagency compliance withapplicable statutoryrequirements, as well asattendant proceduralrequirements. - Office of Secretary assessesagency dissemination ofinformation. - Office of Secretary preparesrequired reports to OMB.


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2. Assess all forms, processes, andsystems changed to comport withthe Government PaperworkElimination Act, anddevelop/implement a plan for theorganized and effective use of theinvolved information/data.

- Coordinated and efficientuse of agency data andinformation. - Increased effectiveness ofagency operations. - Wider use of availableinformation in preparationof agency analyses andreports.

- Reduction in paper documentsfiled and reviewed, and increasein electronic work processing.- Processing time for variousagency operations is reduced.- Agency staff indicatesincreased effectiveness inperforming day-to-dayoperations. - Bureau/office heads indicatewider use of availableinformation in memoranda andreports.

- Deputy Executive Directorcoordinates with bureau/officeheads in preparation ofappropriate plan. - Deputy Executive Directoroversees execution of all stepsof plan, including IT integrationand requirements.

- Deputy Executive Directoraudits use of availableinformation fromoperational/technologicalstandpoint.- Senior management assessesquality and timeliness of workproducts.

3. Assess the agency’s performanceappraisal process to ensure thatemployee performance elementsdirectly support accomplishment ofthe agency mission, and employeeappraisals accurately reflect thelevel of achievement.

- All employees worktoward accomplishment ofagency’s major goals andobjectives.- Employees have clearunderstanding ofresponsibilities andexpectations. - Employees are providedwith timely and appropriatefeedback on theirperformance.- Positive performance isappropriately rewarded, andperformance requiringimprovement is properlyaddressed.

- Appropriate performance plansin place in a timely manner.- Employees all working towardmajor goals and objectivesestablished by seniormanagement. - Timely and effective appraisalof employee performance.

- Bureau/office heads ensureeffective performance plans inplace. - Bureau/office heads ensurethat all employees are givenappropriate appraisals of theirperformance in a timely andstraightforward manner.- Executive Director overseesoverall effort.

- Executive Director’s Officeassesses a sampling ofperformance plans from eachagency unit.- Executive Director, as agencyPerformance Awards BudgetManager, reviews employeeappraisals. - Chairman reviews andapproves all awardrecommendations. - Executive Director assessesbureau/office heads’ efforts todeal with employees whoseperformance requiresimprovement.

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Consumer Complaints & Licensing - 10.7 FTEs and $1,578,528 will be required to accomplish the goals under this Program Activity.


3. Compliance: Promote efficiency and fairness in U.S. foreign waterborne commerce through various means, including outreach andmonitoring, to protect the public and assist stakeholders in achieving compliance with ocean transportation statutes administered bythe FMC.

4. Technological Efficiencies: Employ technological enhancements to improve efficiency and to facilitate the exchange of information.


1. By 9/30/04, modernize theFMC’s RPI database.

- Software is updated to takeadvantage of more powerfulsearches/queries.- Provides agency withtimely, accurate informationabout persons doingbusiness with theCommission.- Facilitates informationavailability to othergovernment agencies.

- Modernized RPI is on the localarea network by 9/30/04.- Users have access to easilyretrievable information.

- Determine data to be collectedand maintained in database. - Determine how data to beinput into database. - Determine access. - Develop appropriate reports,queries, etc. - BCCL coordinates with otherbureaus for consistency andappropriate integration ofCommission databases.

- Bureau Director assessesdatabase integrity and ease ofdata manipulation/retrieval.- Feedback from users.

2. Complete a rulemaking by9/30/04 that makes the changesnecessary to ensure that PVOs’financial responsibility requirementsfor nonperformance are providingappropriate protection for thepublic.

- Rules that ensure cruisepassengers are protectedadequately againstnonperformance by PVOs.- Compliance with statutoryintent.- Reasonable regulationsthat consider the concernsand views of all affectedentities.

- Rules drafted and publishedfor comment.- Assessment of all commentsreceived and appropriatechanges to proposed rule, if any.- Final Rule implemented.

- Research industry practices. - Analysis of rules, PVO data,comments, commercial andcompetitive impact, andcomplaints with regard to PVOnoncompliance. - Preparation of draft rule withsenior management and legalreview.

- Bureau Director evaluates staffefforts.- Executive Director reviewsfinal draft. - Bureau Director oversees staffefforts.- FMC action on staff proposal.


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3. Utilize ADR, including exploringthe use of arbitration, to resolvepassenger claims in the PVOprogram.

- Quicker resolution andpayment of nonperformancedisputes. - Informal resolutionwithout resort to formalprocesses.

- Less time involved to resolveand pay legitimate passengerclaims against performancecoverage.- Bureau has direct involvementin resolving claims.

- Appropriate research andanalysis. - ADR specialist plans initiativeto use ADR to resolve PVOpassenger claims againstperformance coverage.- Bureau Director overseesoperation of ongoing efforts.

- Feedback from industry andcruising public. - Measure length of timeresources expended and numberof cases resolved in overalleffort.

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Trade Analysis - 14.4 FTEs and $2,064,245 will be required to accomplish the goals under this Program Activity.


4. Technological Efficiencies: Employ technological enhancements to improve efficiency and to facilitate the exchange of information.5. Management Capabilities: Ensure the FMC has the appropriate organizational framework and management systems to carry out its

statutory mandates.


1. By 1/1/04, develop andimplement an automated agreementlibrary that will be accessible onlinethrough the agency’s website, anduse the agency’s website toannounce agreement filings.

- Agreement filinginformation more readilyavailable to the generalpublic, as well as internally. - Reduced agency costs inproducing agreementinformation for the public.- Virtual elimination ofcopying costs for the public. - Heightened publicawareness of agreementfilings, possibly leading tomore public input/commenton commercial/economicconsequences ofagreements.

- Number of “hits” on theagency website for agreementinformation. - Positive feedback from thepublic and internally on theutility of the automated libraryand filing notices. - Higher productivity in otheradministrative/programfunctions.

- Identify software and hardwareneeds to accomplish task.- Develop methodology forloading agreement information,including necessary indices, intoan appropriate format for easyaccess and download.- Develop processes forcontinuing record maintenance. - Seek input from potential userson the concept and whetheradditional functions would beuseful.

- Assess complaints andcomments from within andoutside the agency on theusefulness of the automatedsystem.-Review agency costs forreproducing agreementinformation. - Assessing productivity ofinvolved staff in other areas. - Greater amount of publiccomment on filed agreements.


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2. By 9/30/04 develop prototype forconfidential, semiannualCommission trade profile oneconomic and liner trade conditionsin major U.S. trade lanes.

- Improve Commissionaccess to and awareness ofcompetitive economicconditions in major tradelanes.- More comprehensive andconsistent analysis ofagreement activities andtrade conditions, e.g.,service contract activities.- Compliance withCommission InformationForm and MonitoringReport regulations. - More efficient use ofinformation for multipleCommission programs,activities or analyses.

- Accurate and clearly presentedtrade profile data/informationforwarded to the Commissionand other Commissioncomponents in a routine andtimely manner.- Positive feedback fromCommission and otherCommission components.- Reduction in the number ofinquiries requesting furtherinformation or clarification onagreement/trade activities. - Heightened Commissionawareness of economicactivities in major trades.

- Designated Bureau stafferscoordinate with bureau/officesto identify and coordinateinformation to be captured andappropriate format to be used.- Review and analyze economicdata and information filed inagreement monitoring reports.- Review databases and tradeperiodicals for informationpertinent to agreement/tradeanalysis.- Capital requirements includehaving appropriate software andhardware for continued accessto various agency/outsidedatabases and the possibledevelopment of new databases.

- Bureau Director managesongoing staff efforts. - Assess responsiveness toinquiries on agreement, servicecontract, and tariff activities.- Determine if informationgenerated for profile isincorporated into otherCommission programs,activities or analyses, such asAnnual Report to Congress, 6(g)analysis, or identification ofpossible discriminatorypractices.- Assess agreement parties’compliance with applicableinformation filing requirements.

3. Refine and update methodologyto develop freight rate indices formajor U.S. trade lanes.

- More comprehensive andconsistent analysis of linerfreight rate trends in majorU.S. trade lanes. - Ability to identify ratetrends and respond toinquiries/complaintsregarding concerted carrierrate activity. - Enhance agreementreview process throughmore timely rate analysis.- Reduce number of requestsfor information fromagreement parties on ratematters.

- Sound methodology fordeveloping freight rate indicesused in evaluating competitiveimpact of agreements. - Number of complaints aboutcollective carrier activityconcerning freight rates. - Positive feedback from theCommission and shippingindustry.

- Review and analyze previousmethodologies employed todetermine most feasible andeffective approach under currentliner shipping environment. - Review and evaluate datasources and computer softwareto be used for development ofindices. - Establish contact withappropriate industryrepresentatives to obtain andverify rate information. - Conduct pilot program tocompile and test freight rateindices in two major trade lanes.

- Bureau Director reviews themethodology that is developed,and oversees testing andimplementation. - Bureau Director assessesreports/results of analyses. - Assess Commissionresponsiveness toinquiries/complaints regardingfreight rate activity.

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Enforcement - 15.4 FTEs and $2,291,876 will be required to accomplish the goals under this Program Activity.

1. Efficient Regulatory Process: Provide a timely, efficiency and decisive regulatory process, including alternative disputeresolution, to enable all segments of the industry to operate more effectively, with a minimum of regulatory costs.

2. Compliance: Promote efficiency and fairness in U.S. foreign waterborne commerce through various means, including outreach andmonitoring, to protect the public and assist stakeholders in achieving compliance with ocean transportation statutes administered bythe FMC.

3. Balanced Enforcement: Foster economic efficiencies, reliance on marketplace factors and maritime security by administering U.S.shipping statutes in a balanced and equitable manner to redress excessive anticompetitive actions and other unlawful activities.


1. Utilize existing databases (i.e.,Customs’ Automated CommercialSystem, Journal of Commerce PortImport Export Reporting Service,FMC Internet-based ServiceContract Filing System) to identifyunlicensed and non-compliant OTIsparticipating in transportationsubject to FMC jurisdiction andVOCCs which providetransportation services to theseentities.

- Ensure appropriateprotection for users byidentifying unbondedentities. - Promote lawfulcompetition among OTIsand VOCCs. - Improve security inmaritime commerce byidentifying unknown entitiesand curtailing theirparticipation in U.S. foreigntransportation.

- Reduction in number ofunbonded, unlicensed OTIs. - Increase in number of licensedentities. - Reduction in complaintsregarding unbonded, unlicensedentities.

- Review databases for evidenceof activity by unknown OTIs.- Coordinate with BCCLregarding licensing processingand review of entities.

- Review the type and number ofcomplaints received.- Log of time utilized andnumber of entities identified.- Review number of complianceletters sent and/or enforcementactions required.

2. Coordinate databases withagencies or government groupsinvolved in homeland security toimprove identification of entitiesproviding and utilizing maritimetransportation services. Formalizecoordination through memoranda ofunderstanding where possible.

- More efficient exchange ofpertinent information withthese groups. - More readily identifypotential security threats orother problematic situations.- Coordinated and moreeffective approach inaddressing problems thatarise.

- Implement formal memorandaof understanding with othergovernmental entities.- Databases improved andcapable of transmission to otherentities.- Increased and more effectivecoordination on matters ofmutual interest.

- Assign FMC staffer to leadnecessary liaison activities withother governmental entities.- Meet with counterpartorganizations to developmemoranda of understanding.- Create databases and acquireIT capability and equipment tofacilitate transmission andreceipt of database information.

- Determine if appropriatedatabases are developed.- Memoranda of understandingand IT capabilities in place.- Assess the value of theongoing exchange ofinformation and success ofcoordinated efforts in responsethereto.


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3. Utilize public outreach programto educate maritime transportationusers and providers with regard toFMC statutes and regulations, and toencourage voluntary compliancewith applicable laws andregulations.

- Less uncertainty amongregulated entities as to thelegality of their operations.- Improved compliance withstatutes and regulations.- More efficient operationsin U.S. ocean commerce.- More equitable tradingconditions.

- Number of licenses issuedincreases.- Reduction in complaints ofunlawful activity. - Positive feedback fromproviders and users.

- Prepare materials discussingFMC and its functions fordistribution at public andindustry meetings and to beavailable electronically also. - Appear at seminars andindustry meetings to discussFMC and its functions. - Area Representatives and otherFMC personnel are madeavailable to answer questionsand assist with preparation offorms or applications necessaryfor compliance.

- Materials created and madeavailable to public and industry.- Feedback on Commissionrepresentatives’ participation inpublic and industry functions todiscuss FMC and its purposes.- Assess number and type ofentities licensed.- Review complaint activity incomparison to prior periods.

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