[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1356 Introduced in Senate (IS)]

  1st Session
                                S. 1356

To amend the Shipping Act of 1984 to provide for ocean shipping reform, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 23, 1995

 Mr. Pressler introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To amend the Shipping Act of 1984 to provide for ocean shipping reform, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ocean Shipping Reform Act of 1995''.

                     TITLE I--OCEAN SHIPPING REFORM

SEC. 101. PURPOSES.

    Section 2 of the Shipping Act of 1984 (46 U.S.C. App. 1701) is 
amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) to permit carriers and shippers to develop 
        transportation arrangements to meet their specific needs.''.

SEC. 102. DEFINITIONS.

    Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) is 
amended--
            (1) effective January 1, 1997--
                    (A) by striking paragraph (9); and
                    (B) by redesignating paragraphs (10) through (19) 
                as paragraphs (9) through (18), respectively; and
            (2) effective June 1, 1997--
                    (A) by striking paragraph (4);
                    (B) in paragraph (7), by striking ``a common 
                tariff;'' and inserting ``a common schedule of 
                transportation rates, charges, classifications, rules, 
                and practices;'';
                    (C) by striking paragraph (10) (as redesignated by 
                paragraph (1) of this section);
                    (D) by striking paragraph (13) (as redesignated by 
                paragraph (1) of this section);
                    (E) by striking paragraph (16) (as redesignated by 
                paragraph (1) of this section);
                    (F) by striking paragraph (18) (as redesignated by 
                paragraph (1) of this section) and inserting the 
                following:
            ``(18) `ocean freight forwarder' means a person that--
                    ``(A)(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; or
                    ``(ii) processes the documentation or performs 
                related activities incident to those shipments; or
                    ``(B) acts 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.'';
                    (G) by striking paragraph (21);
                    (H) in paragraph (23)--
                            (i) by striking ``or'' the second place it 
                        appears and inserting a comma; and
                            (ii) by striking the period and inserting 
                        ``, a shippers' association, or an ocean 
                        freight forwarder that accepts responsibility 
                        for payment of the ocean freight.'';
                    (I) by striking paragraph (24) and inserting the 
                following:
            ``(24) `shippers' association' means a group of shippers 
        that consolidates or distributes freight, on a nonprofit basis 
        for the members of the group in order to secure carload, 
        truckload, or other volume rates or ocean transportation 
        contracts.'';
                    (J) by inserting after paragraph (18) (as 
                redesignated by paragraph (1) of this section) the 
                following:
            ``(19) `ocean transportation contract' means a contract in 
        writing separate from the bill of lading or receipt between 1 
        or more common carriers or a conference and 1 or more shippers 
        to provide specified services under specified rates and 
        conditions.'';
                    (K) by redesignating paragraphs (5) through (9) as 
                paragraphs (4) through (8), respectively;
                    (L) by redesignating paragraphs (11) and (12) (as 
                redesignated by paragraph (1) of this section) as 
                paragraphs (9) and (10), respectively;
                    (M) by redesignating paragraphs (14) and (15) (as 
                redesignated by paragraph (1) of this section) as 
                paragraphs (11) and (12), respectively;
                    (N) by redesignating paragraph (17) (as 
                redesignated by paragraph (1) of this section) as 
                paragraph (13);
                    (O) by redesignating paragraph (18) (as amended by 
                subparagraph (F) of this subsection) as paragraph (14);
                    (P) by redesignating paragraph (19) (as amended by 
                subparagraph (J) of this subsection) as paragraph (15);
                    (Q) by redesignating paragraph (20) as paragraph 
                (16); and
                    (R) by redesignating paragraphs (22) through (27) 
                as paragraphs (17) through (22), respectively.

SEC. 103. AGREEMENTS WITHIN THE SCOPE OF THE ACT.

    Effective June 1, 1997, section 4(a) of the Shipping Act of 1984 
(46 U.S.C. App. 1703(a)) is amended--
            (1) in paragraph (5), by striking ``non-vessel-operating 
        common carriers'' and inserting ``ocean freight forwarders''; 
        and
            (2) by striking paragraph (7) and inserting the following:
            ``(7) discuss any matter related to ocean transportation 
        contracts, and enter ocean transportation contracts and 
        agreements related to those contracts.''.

SEC. 104. AGREEMENTS.

    Section 5 of the Shipping Act of 1984 (46 U.S.C. App. 1704) is 
amended--
            (1) effective January 1, 1997--
                    (A) in subsection (b)(4), by striking ``at the 
                request of any member, require an independent neutral 
                body to police fully'' and inserting ``state the 
                provisions, if any, for the policing of'';
                    (B) in subsection (b)(7), by striking ``and'' at 
                the end;
                    (C) in subsection (b)(8), by striking the period 
                and inserting ``; and''; and
                    (D) by adding at the end of subsection (b) the 
                following new paragraph:
            ``(9) provide that a member of the conference may enter 
        individual and independent negotiations and may conclude 
        individual and independent service contracts under section 
        8.'';
            (2) effective June 1, 1997--
                    (A) by 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 agreed upon by 
        the conference for transportation provided under section 8(a) 
        upon not more than 3 business days' notice to the conference, 
        and that the conference will provide the new rate or service 
        item for use by that member, effective no later than 3 business 
        days after receipt of that notice, and by any other member that 
        notifies the conference that it elects to adopt the independent 
        rate or service item on or after the effective date of that new 
        rate or service item, in lieu of the existing conference 
        provision for that rate or service item;'';
                    (B) in subsection (b)(9) (as added by paragraph (1) 
                of this subsection)--
                            (i) by striking ``service'' and inserting 
                        ``ocean transportation''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and'';
                    (C) by adding at the end of subsection (b) the 
                following:
            ``(10) prohibit the conference from--
                    ``(A) prohibiting or restricting the members of the 
                conference from engaging in individual negotiations for 
                ocean transportation contracts under section 8(b) with 
                1 or more shippers; and
                    ``(B) issuing mandatory rules or requirements 
                affecting ocean transportation contracts that may be 
                entered by 1 or more members of the conference, except 
                that a conference may require that a member of the 
                conference disclose the existence of an existing 
                individual ocean transportation contract or 
                negotiations on an ocean transportation contract, when 
                the conference enters negotiations on an ocean 
                transportation contract with the same shipper.''; and
                    (D) in subsection (e), by striking ``carrier that 
                are required to be set forth in a tariff,'' and 
                inserting ``carrier,''.

SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

    Section 7 of the Shipping Act of 1984 (46 U.S.C. App. 1706) is 
amended--
            (1) by striking subsection (a)(6) and inserting the 
        following:
            ``(6) subject to section 20(e)(2), any agreement, 
        modification, or cancellation, in effect before the effective 
        date of this Act and any tariff, rate, fare, charge, 
        classification, rule, or regulation explanatory thereof 
        implementing that agreement, modification, or cancellation.''; 
        and
            (2) in subsection (c)(1), by striking ``agency'' and 
        inserting ``agency, department,''.

SEC. 106. COMMON AND CONTRACT CARRIAGE.

    (a) In General.--Effective June 1, 1997--
            (1) section 502 of the High Seas Driftnet Fisheries 
        Enforcement Act (46 U.S.C. App. 1707a) is repealed; and
            (2) section 8 of the Shipping Act of 1984 (46 U.S.C. App. 
        1707) is amended to read as follows:

``SEC. 8. COMMON AND CONTRACT CARRIAGE.

    ``(a) Common Carriage.--
            ``(1) A common carrier and a conference shall make 
        available a schedule of transportation rates which shall 
        include the rates, terms, and conditions for transportation 
        services not governed by an ocean transportation contract, and 
        shall provide the schedule of transportation rates, in writing, 
        upon the request of any person. A common carrier and a 
        conference may assess a reasonable charge for complying with a 
        request for a rate, term, or condition, except that the charge 
        may not exceed the cost of providing the information requested.
            ``(2) A dispute between a common carrier or conference and 
        a person as to the applicability of the rates, terms, and 
        conditions for ocean transportation services shall be decided 
        in an appropriate State or Federal court of competent 
        jurisdiction, unless the parties otherwise agree.
            ``(3) A claim concerning a rate for ocean transportation 
        services which involves false billing, false classification, 
        false weighing, false report of weight, or false measurement 
        shall be decided in an appropriate State or Federal court of 
        competent jurisdiction, unless the parties otherwise agree.
    ``(b) Contract Carriage.--
            ``(1) 1 or more common carriers or a conference may enter 
        into an ocean transportation contract with 1 or more shippers. 
        A common carrier may enter into ocean transportation contracts 
        without limitations concerning the number of ocean 
        transportation contracts or the amount of cargo or space 
        involved. The status of a common carrier as an ocean common 
        carrier is not affected by the number or terms of ocean 
        transportation contracts entered.
            ``(2) A party to an ocean transportation contract entered 
        under this section shall have no duty in connection with 
        services provided under the contract other than the duties 
        specified by the terms of the contract.
            ``(3)(A) An ocean transportation contract or the 
        transportation provided under that contract may not be 
        challenged in any court on the grounds that the contract 
        violates a provision of this Act.
            ``(B) The exclusive remedy for an alleged breach of an 
        ocean transportation contract is an action in an appropriate 
        State or Federal court of competent jurisdiction, unless the 
        parties otherwise agree.
            ``(4) The requirements and prohibitions concerning 
        contracting by conferences contained in paragraphs (9) and (10) 
        of section 5(b) shall also apply to any agreement among one or 
        more ocean common carriers that is filed under section 5(a).''.
    (b) Confidentiality of Contracts.--Effective January 1, 1998, 
section 8(b) of the Shipping Act of 1984 (46 U.S.C. App. 1707(b)), as 
amended by subsection (a) of this section, is further amended by adding 
at the end the following new paragraph:
            ``(5) A contract entered under this section may be made on 
        a confidential basis, upon agreement of the parties. An ocean 
        common carrier that is a member of a conference agreement may 
        not be prohibited or restricted from agreeing with 1 or more 
        shippers that the parties to the contract will not disclose the 
        rates, services, terms, or conditions of that contract to any 
        other member of the agreement, to the conference, to any other 
        carrier, shipper, conference, or to any other third party.''.

SEC. 107. PROHIBITED ACTS.

    Section 10 of the Shipping Act of 1984 (46 U.S.C. App. 1709) is 
amended--
            (1) effective January 1, 1997, in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) except for service contracts, subject a person, 
        place, port, or shipper to unreasonable discrimination;'';
                    (B) by striking paragraphs (2), (3), (4), and (8);
                    (C) by redesignating paragraphs (5) through (7) as 
                paragraphs (2) through (4), respectively; and
                    (D) by redesignating paragraphs (9) through (16) as 
                paragraphs (5) through (12), respectively;
            (2) effective June 1, 1997, by striking subsection (b) and 
        inserting the following:
    ``(b) Common Carriers.--No common carrier, either alone or in 
conjunction with any other person, directly or indirectly, may--
            ``(1) except for ocean transportation contracts, subject a 
        person, place, port, or shipper to unreasonable discrimination;
            ``(2) retaliate against any shipper by refusing, or 
        threatening to refuse, cargo space accommodations when 
        available, or resort to other unfair or unjustly discriminatory 
        methods because the shipper has patronized another carrier or 
        has filed a complaint, or for any other reason;
            ``(3) employ any fighting ship;
            ``(4) subject any particular person, locality, class, or 
        type of shipper or description of traffic to an unreasonable 
        refusal to deal;
            ``(5) refuse to negotiate with a shippers' association;
            ``(6) knowingly and willfully accept cargo from or 
        transport cargo for the account of an ocean freight forwarder 
        that does not have a bond, insurance, or other surety as 
        required by section 19;
            ``(7) knowingly and willfully enter into an ocean 
        transportation contract with an ocean freight forwarder or in 
        which an ocean freight forwarder is listed as an affiliate that 
        does not have a bond, insurance, or other surety as required by 
        section 19; or
            ``(8)(A) knowingly disclose, offer, solicit, or receive any 
        information concerning the nature, kind, quantity, destination, 
        consignee, or routing of any property tendered or delivered to 
        a common carrier without the consent of the shipper or 
        consignee if that information--
                    ``(i) may be used to the detriment or prejudice of 
                the shipper or consignee;
                    ``(ii) may improperly disclose its business 
                transaction to a competitor; or
                    ``(iii) may be used to the detriment or prejudice 
                of any common carrier;
        except that nothing in this paragraph shall be construed to 
        prevent providing the information, in response to legal 
        process, to the United States, or to an independent neutral 
        body operating within the scope of its authority to fulfill the 
        policing obligations of the parties to an agreement effective 
        under this Act, and no ocean common carrier that is a party to 
        a conference agreement approved under this Act, receiver, 
        trustee, lessee, agent, or employee of that carrier, or any 
        other person authorized by that carrier to receive information, 
        shall be prohibited from giving information to the conference 
        or any person, firm, corporation, or agency designated by the 
        conference or to prevent the conference or its designee from 
        soliciting or receiving information for the purpose of 
        determining whether a shipper or consignee has breached an 
        agreement with a conference or for the purpose of determining 
        whether a member of the conference has breached the conference 
        agreement or for the purpose of compiling statistics of cargo 
        movement (but the use of that information for any other purpose 
        prohibited by this Act or any other provision of law is 
        prohibited); and
            ``(B) after December 31, 1997, the rates, services, terms, 
        and conditions of an ocean transportation contract may not be 
        disclosed under this paragraph if the contract has been made on 
        a confidential basis under section 8(b).
The exclusive remedy for a disclosure under this paragraph shall be an 
action for breach of contract as provided in section 8(b)(3).'';
            (3) effective June 1, 1997--
                    (A) by striking subsection (c)(1) and inserting the 
                following:
            ``(1) boycott, take any concerted action resulting in an 
        unreasonable refusal to deal, or implement a policy or practice 
        that results in an unreasonable refusal to deal;'';
                    (B) in subsection (c)(5), by inserting ``as defined 
                in section 3(14)(A)'' after ``freight forwarder''; and
                    (C) in subsection (c)(6), by striking ``a service 
                contract.'' and inserting ``an ocean transportation 
                contract.''; and
            (4) effective June 1, 1997, in subsection (d)(3), by 
        striking ``subsection (b) (11), (12), and (16) of this 
        section'' and inserting ``paragraphs (1), (4), and (8) of 
        subsection (b)''.

SEC. 108. REPARATIONS.

    Effective June 1, 1997, section 11(g) of the Shipping Act of 1984 
(46 U.S.C. App. 1710(g)) is amended--
            (1) by inserting ``or counter-complainant'' after 
        ``complainant'' the second place it appears;
            (2) by striking ``10(b) (5) or (7)'' and inserting ``10(b) 
        (2) or (3)''; and
            (3) by striking the last sentence.

SEC. 109. FOREIGN LAWS AND PRACTICES.

    Effective on June 1, 1997, section 10002 of the Foreign Shipping 
Practices Act of 1988 (46 U.S.C. App. 1710a) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ```non-vessel-operating common 
                carrier',''; and
                    (B) by inserting ```ocean freight forwarder','' 
                after ```ocean common carrier','';
            (2) in subsection (a)(4), by striking ``non-vessel-
        operating common carrier operations,'';
            (3) in subsection (e)(1), by striking subparagraphs (B) 
        through (D) and inserting the following:
            ``(B) suspension, in whole or in part, of the right of an 
        ocean common carrier to operate under any agreement filed with 
        the Secretary, including any agreement authorizing preferential 
        treatment at any terminal, a preferential terminal lease, space 
        chartering, or pooling of cargo or revenues with other ocean 
        common carriers; and
            ``(C) a fee, not to exceed $1,000,000 per voyage.''; and
            (4) in subsection (h), by striking ``section 13(b)(5) of 
        the Shipping Act of 1984 (46 U.S.C. App. 1712(b)(5))'' and 
        inserting ``section 13(b)(2) of the Shipping Act of 1984 (46 
        U.S.C. App. 1712(b)(2))''.

SEC. 110. PENALTIES.

    Effective June 1, 1997, section 13 of the Shipping Act of 1984 (46 
U.S.C. App. 1712) is amended--
            (1) in subsection (b)--
                    (A)(i) by striking paragraphs (1) through (3); and
                    (ii) by redesignating paragraphs (4) through (6) as 
                paragraphs (2) through (4), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) If the Secretary 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, the Secretary 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 Secretary, 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
                    (C) in paragraph (3), as so redesignated, by 
                striking ``finds appropriate,'' and all that follows 
                through the period at the end of the paragraph and 
                inserting ``finds appropriate, including the imposition 
                of the penalties authorized under paragraph (2).''; and
            (2) in subsection (f)(1), by striking ``section 10 (a)(1), 
        (b)(1), or (b)(4)'' and inserting ``section 10(a)(1)''.

SEC. 111. REPORTS.

    (a) In General.--Effective January 1, 1997, section 15 of the 
Shipping Act of 1984 (46 U.S.C. App. 1714) is amended--
            (1) in the section heading by striking ``and 
        certificates'';
            (2) by striking ``(a) Reports.--''; and
            (3) by striking subsection (b).
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by striking 
the item relating to section 15 and inserting the following:

``Sec. 15. Reports.''.

SEC. 112. REGULATIONS.

    Section 17 of the Shipping Act of 1984 (46 U.S.C. App. 1716) is 
amended--
            (1) by striking ``(a)''; and
            (2) by striking subsection (b).

SEC. 113. REPEAL.

    (a) Repeal.--Section 18 of the Shipping Act of 1984 (46 U.S.C. App. 
1717) is repealed.
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by striking 
the item relating to section 18.

SEC. 114. OCEAN FREIGHT FORWARDERS.

    Effective June 1, 1997, section 19 of the Shipping Act of 1984 (46 
U.S.C. App. 1718) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) License.--No person in the United States may act as an ocean 
freight forwarder unless that person holds a license issued by the 
Commission. The Commission shall issue a forwarder's license to any 
person that the Commission determines to be qualified by experience and 
character to render forwarding services.'';
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Financial Responsibility.--
            ``(1) No person may act as an ocean freight forwarder 
        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 shall be available to pay any judgment for 
        damages against an ocean freight forwarder arising from the 
        transportation-related activities of that ocean freight 
        forwarder under this Act or order for reparation issued 
        pursuant to section 11 or 14.
            ``(3) An ocean freight forwarder that is 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.'';
            (4) in subsection (c), as redesignated by paragraph (2) of 
        this section, by striking ``a bond in accordance with 
        subsection (a)(2)'' and inserting ``a bond, proof of insurance, 
        or other surety in accordance with subsection (b)(1)''; and
            (5) in subsection (e), as redesignated by paragraph (2) of 
        this section--
                    (A)(i) by striking paragraph (3); and
                    (ii) by redesignating paragraph (4) as paragraph 
                (3); and
                    (B) by adding at the end 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 freight forwarder, as defined in section 3(14)(A), may--
                    ``(A) deny to any member of the conference or group 
                the right, upon notice of not more than 3 business 
                days, to take independent action on any level of 
                compensation paid to an ocean freight forwarder; or
                    ``(B) agree to limit the payment of compensation to 
                an ocean freight forwarder as defined in section 
                3(14)(A), to less than 1.25 percent of the aggregate of 
                all rates and charges which--
                            ``(i) are applicable under a common 
                        schedule of transportation rates provided under 
                        section 8(a); and
                            ``(ii) are assessed against the cargo on 
                        which the forwarding services are provided.''.

SEC. 115. EFFECTS ON CERTAIN AGREEMENTS AND CONTRACTS.

    Section 20(e) of the Shipping Act of 1984 (46 U.S.C. App. 1719) is 
amended to read as follows:
    ``(e) Savings Provisions.--
            ``(1) Each service contract entered into by a shipper and 
        an ocean common carrier or conference before the date of the 
        enactment of the Ocean Shipping Reform Act of 1995 may remain 
        in full force and effect according to its terms.
            ``(2) This Act and the amendments made by this Act shall 
        not affect any suit--
                    ``(A) filed before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995;
                    ``(B) with respect to claims arising out of conduct 
                engaged in before the date of the enactment of the 
                Ocean Shipping Reform Act of 1995, filed not later than 
                1 year after the date of the enactment of the Ocean 
                Shipping Reform Act of 1995;
                    ``(C) with respect to claims arising out of conduct 
                engaged in after the date of the enactment of the Ocean 
                Shipping Reform Act of 1995 but before January 1, 1997, 
                pertaining to a violation of section 10(b) (1), (2), 
                (3), (4), or (8), as in effect before January 1, 1997, 
                filed not later than June 1, 1997;
                    ``(D) with respect to claims pertaining to the 
                failure of a common carrier or conference to file its 
                tariffs or service contracts in accordance with this 
                Act in the period beginning January 1, 1997, and ending 
                June 1, 1997, filed not later than December 31, 1997; 
                or
                    ``(E) with respect to claims arising out of conduct 
                engaged in on or after the date of the enactment of the 
                Ocean Shipping Reform Act of 1995 but before June 1, 
                1997, filed not later than December 31, 1997.''.

SEC. 116. REPEAL.

    (a) Repeal.--Effective June 1, 1997, section 23 of the Shipping Act 
of 1984 (46 U.S.C. App. 1721) is repealed.
    (b) Clerical Amendment.--Effective June 1, 1997, the table of 
contents contained in the first section of such Act (46 U.S.C. App. 
1701) is amended by striking the item relating to section 23.

SEC. 117. MARINE TERMINAL OPERATOR SCHEDULES.

    (a) In General.--Effective June 1, 1997, the Shipping Act of 1984 
(46 U.S.C. App. 1701 et seq.) is amended by adding at the end the 
following:

``SEC. 24. MARINE TERMINAL OPERATOR SCHEDULES.

    ``A marine terminal operator shall make available to the public a 
schedule of rates, regulations, and practices, including limitations of 
liability, pertaining to receiving, delivering, handling, or storing 
property at its marine terminal. The schedule shall be enforceable as 
an implied contract, without proof of actual knowledge of its 
provisions, for any activity by the marine terminal operator that is 
taken to--
            ``(1) efficiently transfer property between transportation 
        modes;
            ``(2) protect property from damage or loss;
            ``(3) comply with any governmental requirement; or
            ``(4) store property in excess of the terms of any other 
        contract or agreement, if any, entered into by the marine 
        terminal operator.''.
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act (46 U.S.C. App. 1701) is amended by adding at 
the end the following:

``Sec. 24. Marine terminal operator schedules.''.

                TITLE II--CONTROLLED CARRIERS AMENDMENTS

SEC. 201. CONTROLLED CARRIERS.

    Effective June 1, 1997, section 9 of the Shipping Act of 1984 (46 
U.S.C. App. 1708) is amended--
            (1)(A) in the first sentence of subsection (a)--
                    (i) by striking ``in its tariffs or service 
                contracts filed with the Commission''; and
                    (ii) by striking ``in those tariffs or service 
                contracts''; and
            (B) in the last sentence of subsection (a), by striking 
        ``filed by a controlled carrier'';
            (2) in paragraphs (1) and (2) of subsection (b), by 
        striking ``filed'' and inserting ``published'';
            (3) in subsection (c), by striking the first sentence;
            (4) by striking subsection (d) and inserting the following:
    ``(d) Not later than 120 days after receiving information requested 
by the Secretary under this section, the Secretary shall determine 
whether the rates, charges, classifications, rules, or regulations of a 
controlled carrier may be unjust and unreasonable. If the Secretary 
makes a determination under the preceding sentence that the rates, 
charges, classifications, rules, or regulations involved may be unjust 
and unreasonable, the Secretary shall issue an order to the controlled 
carrier to show cause why those rates, charges, classifications, rules, 
or regulations should not be approved. Pending a determination, the 
Secretary may suspend the rates, charges, classifications, rules, or 
regulations at any time. No period of suspension may be greater than 
180 days. Whenever the Secretary suspends any rates, charges, 
classifications, rules, or regulations under this subsection, the 
affected carrier may publish and, after notification to the Secretary, 
assess new rates, charges, classifications, rules, or regulations, 
except that the Secretary may reject the new rates, charges, 
classifications, rules, or regulations if the Secretary determines that 
those rates, charges, classifications, rules, or regulations are 
unreasonable.'';
            (5) in subsection (f), by striking ``This'' and inserting 
        ``Subject to subsection (g), this''; and
            (6) by adding at the end the following new subsections:
    ``(g)(1) In addition to applying to the controlled carriers 
referred to in subsection (f), the provisions of this section 
concerning rate standards, information submissions, remedies, reviews, 
and penalties shall apply to any ocean common carrier that is not a 
controlled carrier if the Secretary determines that ocean common 
carrier to be structurally or financially affiliated with a government 
or private nontransportation entity or organization in such manner as 
to affect the pricing or marketplace behavior of that ocean common 
carrier in an unfair, predatory, or anticompetitive manner that 
disadvantages 1 or more other ocean common carriers.
    ``(2) After conducting an investigation and public hearing, the 
Secretary may make a determination under paragraph (1)--
            ``(A) at the request of any person; or
            ``(B) upon the initiative of the Secretary.
    ``(h) Not later than June 1, 1997, the Secretary shall issue 
regulations that prescribe the procedures and requirements to govern 
the manner in which controlled carriers and carriers determined 
pursuant to subsection (g)(1) to be subject to provisions of this 
section referred to in that subsection shall submit price information 
and other information that is necessary for the Secretary to determine 
whether rates or charges of those carriers are unfair, predatory, or 
anticompetitive.
    ``(i) In any case in which information provided to the Secretary 
under this section does not result in an affirmative finding or 
enforcement action by the Secretary, that information may not be made 
public and shall be exempt from disclosure under section 552 of title 
5, United States Code, except as may be relevant to an administrative 
or judicial action or proceeding. This section does not prevent 
disclosure to either body of Congress or to a duly authorized committee 
or subcommittee of Congress.''.

SEC. 202. NEGOTIATING STRATEGY TO REDUCE GOVERNMENT OWNERSHIP AND 
              CONTROL OF COMMON CARRIERS.

    Not later than January 1, 1997, the Secretary of Transportation 
shall develop, submit to the Congress, and begin implementing a 
negotiation strategy to persuade foreign governments to divest 
themselves of ownership and control of ocean common carriers (as that 
term is defined in section 3(14) of the Shipping Act of 1984).

SEC. 203. ANNUAL REPORT BY THE SECRETARY.

    Not later than September 30, 1998, and annually thereafter, the 
Secretary shall prepare and submit a report to the Congress 
concerning--
            (1) the actions taken under the Foreign Shipping Practices 
        Act of 1988, including section 10002 of that Act (46 U.S.C. 
        App. 1710a), section 9 of the Shipping Act of 1984 (46 U.S.C. 
        App. 1708), and section 202 of this Act; and
            (2) the effect on United States maritime employment of 
        laws, rules, regulations, policies, or practices of foreign 
        governments, or any practices of foreign carriers or other 
        persons providing maritime or maritime-related services in a 
        foreign country that result in the existence of conditions that 
        adversely affect the operations of United States carriers in 
        United States oceanborne trade.

       TITLE III--ELIMINATION OF THE FEDERAL MARITIME COMMISSION

SEC. 301. PLAN FOR AGENCY TERMINATION.

    (a) In General.--
            (1) In general.--Not later than 30 days after the date of 
        the enactment of this Act, the Director of the Office of 
        Management and Budget, in consultation with the Secretary of 
        Transportation, shall submit to the Congress a plan to 
        eliminate the Federal Maritime Commission by not later than 
        October 1, 1997.
            (2) Content of plan.--The plan referred to in paragraph (1) 
        shall--
                    (A) include a timetable for the transfer of 
                remaining functions of the Federal Maritime Commission 
                to the Secretary of Transportation, commencing on the 
                earliest feasible date in fiscal year 1996; and
                    (B) address matters related to personnel and other 
                resources necessary for the Secretary of Transportation 
                to perform the remaining functions of the Federal 
                Maritime Commission.
    (b) Implementation.--The Director of the Office of Management and 
Budget shall implement the plan developed by the Director of the Office 
of Management and Budget under this section to eliminate the Federal 
Maritime Commission submitted to Congress under subsection (a) 
commencing on the earliest feasible date in fiscal year 1996.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this Act and 
the amendments made by this Act.
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