[Congressional Record Volume 142, Number 106 (Thursday, July 18, 1996)]
[Senate]
[Pages S8222-S8226]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     THE OCEAN SHIPPING ACT OF 1996

                                 ______
                                 

                PRESSLER (AND OTHERS) AMENDMENT NO. 4904

  (Ordered referred to the Committee on Commerce, Science, and 
Transportation.)
  Mr. PRESSLER (for himself, Mr. Lott, Mr. Gorton, Mrs. Hutchison, Mr. 
Exon, Mr. Inouye, and Mr. Breaux) submitted an amendment intended to be 
proposed by them to the bill (S. 1356) to amend the Shipping Act of 
1984 to provide for ocean shipping reform, and for other purposes; as 
follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``International Ocean Shipping 
     Act of 1996''.

     SEC. 2. EFFECTIVE DATE.

       Except as otherwise expressly provided in this Act, this 
     Act and the amendments made by this Act take effect on 
     October 1, 1997.
             TITLE I AMENDMENTS TO THE SHIPPING ACT OF 1984

     SEC. 101. PURPOSE.

       Section 1 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''; 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.''.

     SEC. 102. DEFINITIONS.

       Section 3 of the Shipping Act of 1984 (46 U.S.C. App. 1702) 
     is amended by--
       (1) striking paragraph (5) and redesignating paragraph (4) 
     as paragraph (5);
       (2) inserting after paragraph (3) the following:
       ``(4) `Board' means the Intermodal Transportation Board.'';
       (3) adding at the end of paragraph (7) the following: ``a 
     conference agreement does not result in the formation of a 
     single commercial identity, and members of the conference 
     retain their identity as individual carriers in the trade.'';
       (4) striking ``the government under whose registry the 
     vessels of the carrier operate'' in paragraph (8) and 
     inserting ``a government'';
       (5) striking ``in an unfinished or semifinished state that 
     require special handling moving in lot sizes too large for a 
     container'' in paragraph (11);
       (6) striking ``paper board in rolls, and paper in rolls.'' 
     in paragraph (11) and inserting ``paper and paper board in 
     rolls or in pallet or skid-sized sheets.'';
       (7) striking paragraph (17) and redesignating paragraphs 
     (18) through (27) as paragraphs (17) through (26), 
     respectively;
       (8) striking paragraph (18), as designated, and inserting 
     the following:

[[Page S8223]]

       ``(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; and
       ``(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.'';
       (9) striking paragraph (20) as redesignated and inserting 
     the following:
       ``(20) `service contract' means a written contract, other 
     than a bill of lading or a receipt, between one or more 
     shippers and one or more ocean common carriers or a 
     conference 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 
     carriers or a conference commits to a certain rate or rate 
     scheduled 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.'';
       (10) striking ``made.'' in paragraph (22), as redesignated, 
     and inserting ``made, a shippers' association, or an ocean 
     freight forwarder described in paragraph (18)(B) of this 
     section.''.

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

       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;''; 
     and
       (2) striking paragraph (7) and inserting the following:
       ``(7) discuss and agree upon any matter related to service 
     contracts, and enter service contracts and agreements related 
     to those contracts.''.

     SEC. 104. AGREEMENTS.

       (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 in a tariff 
     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.''; 
     and
       (2) striking ``this Act, the Shipping Act, 1916, and the 
     Intercoastal Shipping Act, 1933'' in subsection (d) and 
     inserting ``this Act and the Shipping Act, 1916''.
       (d) Special Effective Date.--The amendment made by 
     subsection (a)(2) shall take effect on September 30, 1996.

     SEC. 105. EXEMPTION FROM ANTITRUST LAWS.

       Section 7(a) of the Shipping Act of 1984 (46 U.S.C. App. 
     1706(a)) is amended by--
       (1) inserting ``or publication'' in paragraph (2) after 
     ``filing''; and
       (2) inserting ``Federal Maritime'' before ``Commission'' in 
     paragraph (6).

     SEC. 106. TARIFFS.

       Section 8 of Shipping Act of 1984 (46 U.S.C. App. 1707) is 
     amended by--
       (1) inserting ``new assembled motor vehicles,'' after 
     ``scrap,'' in subsection (a)(1);
       (2) striking ``file with the Commission, and'' in 
     subsection (a)(1);
       (3) striking ``inspection,'' in subsection (a)(1) and 
     inserting ``inspection in an automated tariff system approved 
     by the Board,'';
       (4) striking ``tariff filings'' in subsection (a)(1) and 
     inserting ``tariffs'';
       (5) striking ``loyalty contract,'' in subsection (a)(1)(E);
       (6) striking paragraph (2) of subsection (a) 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 terminals, and a reasonable 
     charge may be assessed for such access. No charge may be 
     assessed for access by a Federal agency.
       (7) striking subsection (c) and inserting the following:
       (c) ``Service Contracts--
       ``(1) In general.--One or more ocean common carriers or 
     conferences 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.
       ``(2) Agreement service contracts.--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 agreement of 2 or more ocean common carriers shall be 
     filed with the Board, and at the same time, a concise 
     statement of its essential terms shall be filed with the 
     Board and made available to the general public in tariff 
     format, and those essential terms shall be available to all 
     shippers similarly situated. The essential terms shall 
     include--
       ``(A) the origin and destination port ranges in the case of 
     port-to-port movements, and the origin and destination 
     geographic areas in the case of through intermodal movements;
       ``(B) the commodity or commodities involved;
       ``(C) the minimum volume;
       ``(D) the line-haul rate;
       ``(E) the duration;
       ``(F) service commitments; and
       ``(G) the liquidated damages for nonperformance, if any.
       ``(3) Individual service contracts.--Service contracts 
     entered into under this subsection between one or more 
     shippers and an individual ocean common carrier may be made 
     on a confidential basis. Service contracts entered into under 
     this subsection shall be retained by the parties of the 
     contract for 3 years subsequent to the expiration of the 
     contract.
       ``(4) Agreement service contract provisions.--Any agreement 
     among ocean common carriers that is filed under section 5(a) 
     of this Act may--
       ``(A) not prohibit the members of the agreement from 
     negotiating and entering into individual service contracts 
     under this subsection;
       ``(B) establish voluntary rules or requirements affecting 
     the rates, terms, and conditions included in individual 
     service contracts under this subsection; and
       ``(C) require a member of the agreement to disclose the 
     existence of an existing individual service contract under 
     this subsection or negotiation on a service contract under 
     this subsection when the agreement enters into negotiations 
     with or has an existing contract with the same shipper.'';
       (8) striking ``30 days after filing with the Commission'' 
     in the first sentence of subsection (d) and inserting ``7 
     calendar days after publication'';
       (9) striking ``30'' in the second sentence of subsection 
     (d) and inserting ``7''; and
       (10) striking ``and filing with the Commission'' in the 
     last sentence of subsection (d);
       (11) striking subsection (e) and inserting the following:
       ``(e) Marine Terminal Operator Schedules.--A marine 
     terminal operator may make available to the public a schedule 
     of rates, regulations, and practices, including limitations 
     of liability (other than for negligence), pertaining to 
     receiving, delivering, handling, or storing property at its 
     marine terminal. Any such schedule made available to the 
     public shall be enforceable as an implied contract, without 
     proof of actual knowledge of its provisions.''; and
       (12) striking subsection (f) and inserting the following:
       ``(f) Regulations.--The Board shall by regulation prescribe 
     the requirements for automated tariff systems established 
     under this section and shall approve any automated tariff 
     system that complies with those requirements. The Board shall 
     disapprove or, after periodic review, cancel any automated 
     tariff system that fails to meet the requirements established 
     under this section. The Board shall by regulation prescribe 
     the form and manner in which marine terminal operator 
     schedules authorized by this section shall be published.''.

     SEC. 107. AUTOMATED TARIFF FILING AND INFORMATION SYSTEM.

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

     SEC. 108. CONTROLLED CARRIERS.

       Section 9 of the Shipping Act of 1984 (46 U.S.C. App. 1708) 
     is amended by--
       (1) striking ``filed with the Commission'' in the first 
     sentence of subsection (a) and inserting a comma and ``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 Board'';
       (5) striking ``may take into account appropriate factors 
     including, but not limited to, whether--'' in subsection (b) 
     and inserting ``shall take into account whether'';
       (6) striking ``(1)'' in paragraph (1) of subsection (b) and 
     resetting the text of paragraph (1) as a full measure 
     continuation of the matter preceding it;
       (7) striking ``filed'' each place it appears in subsection 
     (b) and inserting ``published or assessed'';
       (8) striking ``similar trade;'' in subsection (b) and 
     inserting ``similar trade. The Board may also take into 
     account other appropriate factors, including, but not limited 
     to, whether--'';
       (9) redesignating paragraphs (2), (3), and (4) of 
     subsection (b) as paragraphs (1), (2), and (3), respectively; 
     and
       (10) striking ``filing with the Commission'' in subsection 
     (c) and inserting ``publication'';
       (11) striking ``Disapproval.--'' in subsection (d) and 
     inserting ``Prohibition of Rates.--Within 120 days after the 
     receipt of information requested by the Board under this 
     section, the Board shall determine whether the rates, 
     charges, classifications, rules, or regulations of a 
     controlled carrier may be unjust and unreasonable.'';

[[Page S8224]]

       (12) striking ``filed'' in subsection (d) and inserting 
     ``published or assessed'';
       (13) striking ``may'' in the second sentence of subsection 
     (d), as amended by paragraph (11) of this section, and 
     inserting ``shall'';
       (14) striking ``disapproved'' in such sentence and 
     inserting ``prohibited'';
       (15) striking ``60'' in subsection (d) and inserting 
     ``30'';
       (16) inserting ``controlled'' after ``affected'' in 
     subsection (d);
       (17) striking ``file'' in subsection (d) and inserting 
     ``publish''.
       (18) striking ``disapproval'' in subsection (e) and 
     inserting ``prohibition'';
       (19) inserting ``or'' after the semicolon in subsection 
     (f)(1);
       (20) striking paragraphs (2), (3), and (4) of subsection 
     (f); and
       (21) redesignating paragraph (5) of subsection (f) as 
     paragraph (2).

     SEC. 109. PROHIBITED ACTS.

       (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 contained in a 
     tariff published or a service contract entered into under 
     section 8 of this Act;
       ``(B) is not under an arrangement authorized by an 
     exemption under section 16 of this Act; or
       ``(C) is under a tariff or service contract which has been 
     suspended or prohibited by the Board;'';
       (4) redesignating paragraphs (5) through (16) as paragraphs 
     (3) through (14);
       (5) inserting ``against a person, place, port, class or 
     type of shipper, or ocean freight forwarder'' after 
     ``practice'' in paragraph (3), as redesignated;
       (6) in paragraph (5), as redesignated, inserting ``or 
     engage in a pattern of unjust or unreasonable below-market 
     pricing which causes meaningful harm to another carrier in 
     the same trade'' after ``fighting ship'';
       (7) in paragraph (8), as redesignated, inserting ``except 
     for service contracts,'' before ``demand,'';
       (8) in paragraph (10), as redesignated, inserting ``except 
     for service contracts,'' after ``deal or,'';
       (9) striking ``a non-vessel-operating common carrier'' each 
     place it appears in paragraph (12) and paragraph (13), as 
     redesignated, and inserting ``an ocean freight forwarder'';
       (10) striking ``and 23'' in paragraph (12) and paragraph 
     (13), as redesignated, and inserting ``and 19'';
       (11) striking ``paragraph (16)'' in the matter appearing 
     after paragraph (14), as redesignated, and inserting 
     ``paragraph (14)''; and
       (12) inserting ``the Board,'' after ``United States,'' in 
     such matter.
       (b) Section 10(d)(3) of the Shipping Act of 1984 (46 U.S.C. 
     App. 1709(d)(3)) is amended by striking ``subsection (b)(11), 
     (12), and (16) of this section'' and inserting ``subsection 
     (b)(9), (10), and (14) of this section''.

     SEC. 110. COMPLAINTS, INVESTIGATIONS, REPORTS, AND 
                   REPARATIONS.

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

     SEC. 111. DEFINITIONS.

       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 freight forwarder,'';
       (2) striking ``non-vessel-operating common carrier 
     operations,'' in subsection (a)(4);
       (3) striking ``filed with the Commission,'' in subsection 
     (e)(1)(B) and inserting ``and service contracts,'';
       (4) inserting ``and service contracts'' after ``tariffs'' 
     the second place it appears in subsection (e)(1)(B); and
       (5) striking ``13(b)(5) of the Shipping Act of 1984 (46 
     App. U.S.C. 1712(b)(5))'' in subsection (h) and inserting 
     ``13(b)(3) of the Shipping Act of 1984 (46 U.S.C. App. 
     1712(b)(3))''.

     SEC. 112. AMENDMENTS TO FOREIGN SHIPPING PRACTICES ACT.

       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 freight forwarder''; 
     and
       (2) striking ``non-vessel-operating common carrier 
     operations,'' in subsection (a)(4);
       (3) striking ``filed with the Commission,'' in subsection 
     (e)(1)(B) and inserting ``and service contracts,''; and
       (4) inserting ``and service contracts'' after ``tariffs'' 
     the second place it appears; and
       (5) striking ``13(b)(5) of the Shipping Act of 1984 (46 
     U.S.C. App. 1712(b)(5))'' in subsection (h) and inserting 
     ``13(b)(3) of the Shipping Act of 1984 (46 U.S.C. 
     1712(b)(3))''.

     SEC. 113. PENALTIES.

       (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 of the common carrier and any such vessel may be 
     libeled therefor in the district court of the United States 
     for the district in which is 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 paragraphs (1) through (3) and redesignating 
     paragraphs (4) through (6) as paragraphs (2) through (4);
       (2) inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) If the board 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 Board 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 board, 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
       (3) striking ``paragraphs (1), (2), and (3) of this 
     subsection.'' in paragraph (3), as redesignated, and 
     inserting ``paragraph (1) of this subsection.''.
       (c) Section 13(f)(1) of the Shipping Act of 1984 (46 U.S.C. 
     App. 1712(f)(1)) is amended by striking ``section 10(a)(1), 
     (b)(1), or (b)(4)'' and inserting ``section 10(a)(1) or 
     10(b)(1).''.

     SEC. 114. REPORTS AND CERTIFICATES.

       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; 
     and
       (3) striking subsection (b).

     SEC. 115. EXEMPTIONS.

       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 substantial reduction in competition, or be 
     detrimental to commerce.'' and inserting ``result in 
     substantial reduction in competition or be detrimental to 
     commerce.''.

     SEC. 116. AGENCY REPORTS AND ADVISORY COMMISSION.

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

     SEC. 117. OCEAN FREIGHT FORWARDERS.

       Section 19 of the Shipping Act of 1984 (46 U.S.C. App. 
     1718) is amended--
       (1) striking subsection (a) and inserting the following:
       ``(a) License.--No person may act as an ocean freight 
     forwarder unless that person holds a license issued by the 
     Board. The Board shall issue a forwarder's license to any 
     person that the Board determines to be qualified by 
     experience and character to act as an ocean freight 
     forwarder.'';
       (2) redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively;
       (3) inserting after subsection (a) the following:
       ``(b) Financial Responsibility.--
       ``(1) No person may act as a ocean freight forwarder unless 
     that person furnishes a bond, proof of insurance, or other 
     surety in a form and amount determined by the Board 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 judgment for damages 
     against an ocean freight forwarder arising from its 
     transportation-related activities under section 3(18) of this 
     Act, or 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; and
       ``(B) may be available to pay any claim deemed valid by the 
     surety company against an ocean freight forwarder arising 
     from its transportation-related activities under section 
     3(18) of this Act.
       ``(3) An ocean freight forwarder 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) 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)'';
       (5) striking paragraph (3) of subsection (e), as 
     redesignated, and redesignating paragraph (4) as paragraph 
     (3); and
       (6) 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 freight forwarder, as defined in section 3(18)(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 freight forwarder; or
       ``(B) agree to limit the payment of compensation to an 
     ocean freight forwarder, as defined in section 3(18)(A) of 
     this Act, 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 forwarding 
     services are provided.''.

     SEC. 118. CONTRACTS, AGREEMENTS, AND LICENSES PRIOR TO 
                   SHIPPING LEGISLATION.

       Section 20 of the Shipping Act of 1984 (46 U.S.C. App. 
     1719) is amended by--

[[Page S8225]]

       (1) striking subsection (d) and inserting the following:
       ``(d) Effects on Certain Agreements and Contracts.--All 
     agreements, contracts, modifications, 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 International Ocean Shipping Act of 1996, 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 International Ocean 
     Shipping Act of 1996.'';
       (2) inserting the following at the end of subsection (e):
       ``(3) The International Ocean Shipping Act of 1996 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 International Ocean Shipping Act 
     of 1996.''.

     SEC. 119. SURETY FOR NON-VESSEL-OPERATING COMMON CARRIERS.

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

     SEC. 120. REPLACEMENT OF FEDERAL MARITIME COMMISSION WITH 
                   INTERMODAL TRANSPORTATION BOARD.

       The Shipping Act of 1984 (46 U.S.C. App. 1701 et seq.) is 
     amended by--
       (1) striking ``Federal Maritime Commission'' each place it 
     appears, except in section 20, and inserting ``Intermodal 
     Transportation Board'';
       (2) striking ``Commission'' each place it appears 
     (including chapter and section headings), except in sections 
     7(a)(6) and 20, and inserting ``Board''; and
       (3) striking ``Commission's'' each place it appears and 
     inserting ``Board's''.
 TITLE II TRANSFER OF FUNCTIONS OF THE FEDERAL MARITIME COMMISSION TO 
                  THE INTERMODAL TRANSPORTATION BOARD

     SEC. 201. TRANSFER TO THE INTERMODAL TRANSPORTATION BOARD.

       (a) Change of Name of Surface Transportation Board to 
     Intermodal Transportation Board.--The ICC Termination Act of 
     1955 (Pub. L. 104-88) is amended by striking ``Surface 
     Transportation Board'' each place it appears and inserting 
     ``Intermodal Transportation Board''.
       (b) Functions of the Federal Maritime Commission.--All 
     functions, powers and duties vested in the Federal Maritime 
     Commission shall be administered by the Intermodal 
     Transportation Board.
       (c) Regulations.--No later than July 1, 1997, the Federal 
     Maritime Commission, in consultation with the Surface 
     Transportation Board, shall prescribe final regulations to 
     implement the changes made by this Act.
       (d) Authorization of Appropriations for Fiscal Year 1997.--
     There is authorized to be appropriated to the Federal 
     Maritime Commission, $19,000,000 for fiscal year 1997.
       (e) Commissioners of the Federal Maritime Commission.--
     Subject to the political party restrictions of section 701(b) 
     of title 49, United States Code, the 2 Commissioners of the 
     Federal Maritime Commission whose terms have the latest 
     expiration dates shall become members of the Intermodal 
     Transportation Board first appointed under this subsection, 
     the one with the first expiring term (as a member of the 
     Federal Maritime Commission) shall serve for a term ending 
     December 31, 1997, and the other shall serve for a term 
     ending December 31, 2000.
       (f) Membership of the Intermodal Transportation Board.--
       (1) Number of members.--Section 701(b)(1) of title 49, 
     United States Code, is amended by--
       (A) striking ``3 members'' and inserting ``5 members''; and
       (B) striking ``2 members'' and inserting ``3 members''.
       (2) Qualifications.--Section 701(b)(2) of title 49, United 
     States Code, is amended by inserting after ``sector.'' the 
     following: ``Effective October 1, 1997, at least 2 members 
     shall be individuals with--
       ``(A) professional standing and demonstrated knowledge in 
     the field of maritime transportation or its regulation; or
       ``(B) professional or business experience in the maritime 
     transportation private sector, including marine terminal or 
     public port operation.''.
        TITLE III AMENDMENTS TO OTHER SHIPPING AND MARITIME LAWS

     SEC. 301. AMENDMENTS TO SECTION 19 OF THE MERCHANT MARINE 
                   ACT, 1920

       Section 19 of the Merchant Marine Act, 1920 (46 U.S.C. App. 
     876) is amended by--
       (1) striking ``Federal Maritime Commission'' each place it 
     appears and inserting ``Intermodal Transportation Board'';
       (2) inserting ``ocean freight'' after ``solicitations,'' in 
     subsection (1)(b);
       (3) striking ``non-vessel-operating common carrier 
     operations,'' in subsection (1)(b);
       (4) striking ``methods or practices'' and inserting 
     ``methods, pricing practices, or other practices'' in 
     subsection (1)(b);
       (5) striking ``filed with the Commission'' in subsection 
     (9)(b); and
       (7) striking ``Commission'' each place it appears 
     (including the heading) and inserting ``Board''.

     SEC. 302. TECHNICAL CORRECTIONS.

       (a) Public Law 89-777.--
       (1) The Act of November 6, 1966, (Pub. L. 89-777; 80 Stat. 
     1356 46 U.S.C. App. 817 et seq.) is amended by--
       (A) striking ``Shipping Act, 1916'' in section 2(d) and 
     inserting ``Shipping Act of 1984'';
       (B) striking ``Shipping Act, 1916'' in section 3(d) and 
     inserting ``Shipping Act of 1984'';
       (C) striking ``Federal Maritime Commission'' each place it 
     appears and inserting ``Intermodal Transportation Board''; 
     and
       (D) striking ``Commission'' each place it appears and 
     inserting ``Board''.
       (2) The amendments made by subparagraphs (A) and (B) of 
     paragraph (1) take effect on September 30, 1996.
       (b) Shipping Act, 1916.--The Shipping Act, 1916 (46 U.S.C. 
     App. 801 et seq.) is amended by--
       (1) striking ``Federal Maritime Commission'' each place it 
     appears and inserting ``Intermodal Transportation Board''; 
     and
       (2) striking ``Commission'' each place it appears and 
     inserting ``Board''.
       (c) Title 28, United States Code, and Cross Reference.--
       (1) Section 2341 of title 28, United States Code, is 
     amended by--
       (A) striking ``Commission, the Federal Maritime 
     Commission,'' in paragraph (3)(A); and
       (B) striking ``Surface'' in paragraph (3)(E) and inserting 
     ``Intermodal''.
       (2) Section 2342 of such title is amended by--
       (A) striking paragraph (3) and inserting the following:
       ``(3) all rules, regulations, or final orders of the 
     Secretary of Transportation issued pursuant to section 2, 9, 
     37, 41, or 43 of the Shipping Act, 1916 (46 U.S.C. App. 802, 
     803, 808, 835, 839, or 841a) or pursuant to part B or C of 
     subtitle IV of title 49 (49 U.S.C. 15101 et seq.);''; and
       (B) striking paragraph (5) and inserting the following:
       ``(5) all rules, regulations, or final orders of the 
     Intermodal Transportation Board--
       ``(A) made reviewable by section 2321 of this title; or
       ``(B) pursuant to--
       ``(i) section 19 of the Merchant Marine Act, 1920 (46 
     U.S.C. App. 876);
       ``(ii) section 14 or 17 of the Shipping Act of 1984 (46 
     U.S.C. App. 1713 or 1716); or
       ``(iii) section 2(d) or 3(d) of the Act of November 6, 1966 
     (46 U.S.C. App. 817d(d) or 817e(d));''.
       (3) Section 10002(i) of the Foreign Shipping Practices Act 
     of 1988 (46 U.S.C. 1710a(i)) is amended by striking 
     ``2342(3)(B)'' and inserting ``2342(5)(B)''.

  Mr. PRESSLER. Mr. President, I rise today to take another step in my 
overall maritime reform agenda, the International Ocean Shipping Act of 
1996.
  Last October, I introduced S. 1356, a companion bill to H.R. 2149. I 
did so to begin Senate discussion of this important reform proposal. In 
November, I chaired a Committee on Commerce, Science, and 
Transportation hearing on the bill. The hearing revealed numerous 
issues affecting all segments of the liner ocean shipping industry that 
required further consideration.
  Today, I am submitting an amendment (No. 4904) to S. 1356. By so 
doing, I am putting out for public comment a proposed refined version 
of the bill which would institute comprehensive reforms in how the 
Federal Government regulates the liner trade in the foreign commerce of 
the United States. This amendment addresses the concerns raised in the 
November hearing.
  I am pleased to be joined by Senators Gorton, Lott, Hutchison, 
Inouye, Exon, and Breaux as cosponsors in this amendment. This 
bipartisan approach demonstrates just how serious we are about 
achieving meaningful reform.
  The House has passed its version of ocean shipping reform 
legislation. The Senate does not have much time left in this Congress 
to make its mark on this issue. I intend to hold a hearing on this 
legislation in the near future. With the support of my fellow Commerce 
Committee members and other Senators, we can pass ocean shipping reform 
legislation this year.
  Mr. President, 95 percent of U.S. foreign commerce is transported via 
ocean shipping. Approximately half of this amount is shipped in bulk 
form, e.g., oil, grain, chemicals, etc., on an unregulated vessel 
charter basis. The remainder is shipped by container on liner vessels--
regularly scheduled service--under the Shipping Act of 1984, as 
regulated by the Federal Maritime Commission [FMC]. As the 
international liner shipping trade has evolved since 1984, many 
industry segments have requested changes in the Shipping Act of 1984 to 
keep pace with this evolution.
  My amendment, the International Ocean Shipping Act of 1996, would 
improve the Shipping Act of 1984 in several key areas.

[[Page S8226]]

  First, it would eliminate the filing of common carrier tariffs with 
the Federal Government. Instead of requiring Government approval, 
tariffs would become effective upon publication through private 
systems. My amendment also would increase tariff rate flexibility by 
easing restrictions on tariff rate changes and independent action by 
conference carriers.
  Second, it would allow for greater flexibility in service contracting 
by shippers and ocean common carriers. The amendment would allow 
individual ocean common carriers and shippers to negotiate confidential 
service contracts. It also would allow shippers' associations and ocean 
freight forwarders to negotiate service contracts as shippers.
  Third, responsibility for enforcing U.S. ocean shipping laws would be 
shifted to the Surface Transportation Board, which would be renamed the 
Intermodal Transportation Board. The Federal Maritime Commission would 
be terminated at the end of fiscal year 1997. A single independent 
agency would then administer domestic surface, rail, and water 
transportation and international ocean transportation regulations. The 
Government would catch up to the carriers and shippers, who are already 
thinking intermodally.
  Finally, the Intermodal Transportation Board would be given new tools 
to address predatory pricing ocean common carriers while ensuring 
increased competition in the industry.

                          ____________________