[Federal Register Volume 59, Number 229 (Wednesday, November 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29409]


[[Page Unknown]]

[Federal Register: November 30, 1994]


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FEDERAL MARITIME COMMISSION
 

Fact Finding Investigation No. 21; Activities of the Trans-
Atlantic Agreement and Its Members; Amended Order of Investigation

    On July 27, 1994, pursuant to sections 5, 6, 8, 10, 11, 12 and 23 
of the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1704, 1706, 
1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of Title 46 of 
the Code of Federal Regulations, 46 CFR 502.281, et seq., the Federal 
Maritime Commission (``Commission'') issued an order (``July 27 
Order'') to institute a nonadjudicatory investigation into the 
practices of the Trans-Atlantic Agreement (``TAA'') and its member 
lines. Recent events have demonstrated a need to clarify and amend 
various parts of the July 27 Order as explained below.
    On July 5, 1994, the TAA member lines filed amendments to the TAA, 
including a change of the conference's name to the Trans-Atlantic 
Conference Agreement (``TACA'').\1\ As noted in footnote 1 of the July 
27 Order, the Commission intended that this nonadjudatory investigation 
would continue if TACA became effective. On October 24, 1994, TACA 
became effective, with certain modifications. To ensure clarity as to 
its intent regarding investigation of TACA, the Commission is revising 
the first ordering paragraph of the July 27 Order to state expressly 
that this nonadjudicatory investigation is to develop evidence on 
whether or not TAA, TACA, and some or all of the sixteen ocean common 
carriers which comprise TACA's membership\2\ may have engaged in, or 
may be engaged in activities violative of various provisions of the 
1984 Act, and to provide a basis for any subsequent adjudicatory, 
assessment or injunctive action.
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    \1\Despite this modification, the members continue to refer to 
the modified agreement as TAA. For clarity, this order refers to the 
modified agreement as TACA.
    \2\On August 29, 1994, Hanjin Shipping Co., Ltd. became a member 
of TAA (and, subsequently, of TACA); the Commission is amending the 
appended list of conference member lines to include this carrier.
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    By three separate orders issued this date, the Commission has 
commenced adjudicatory proceedings to determine whether TAA and some or 
all of its members violated various provisions of the 1984 Act in 
connection with the establishment and operation of container pools; 
limitations on the right of independent action; and restrictions 
contained in certain vessel sharing agreements in the trans-Atlantic 
trades. In view of the institution of these adjudicatory proceedings, 
the Commission will not seek testimony or further evidence from TAA (or 
TACA) and its members in the remainder of the Fact Finding 
investigation as to the issues under adjudication.
    To ensure a thorough examination of the facts regarding TACA's 
implementation, and to provide adequate resources and flexibility for 
addressing the issues remaining in this investigation, the Commission 
is amending the July 27 Order to add a sixth Investigative Officer to 
the proceeding and to give the Investigative Officers additional time 
for the preparation of a final report of findings and recommendations. 
The July 27 Order required issuance of a final report within 180 days 
after publication of that Order. The amendment extends that deadline 
for approximately two months, to March 24, 1995.
    Now therefore, it is ordered, That pursuant to sections 5, 6, 8, 
10, 11, 12 and 23 of the Shipping Act of 1984, 46 U.S.C. app. 1704, 
1706, 1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of Title 
46 of the Code of Federal Regulations, 46 CFR 502.281, et seq., the 
Commission's July 27 Order is amended to preclude the Investigative 
Officers from seeking additional testimony or further evidence in this 
proceeding from the Trans-Atlantic Agreement (or the Trans-Atlantic 
Conference Agreement), or any of its members on the following issues:

    1. Whether or not TAA (or TACA) or any of its members has 
violated or is violating any of the prohibited acts set forth in 
section 10 of the 1984 Act by providing chassis and/or container 
equipment to shippers at U.S. West Coast and interior locations 
other than the carrier's designated containeryard or terminal 
facility;
    2. Whether or not TAA (or TACA) or any of its members has 
violated or is violating section 5(b)(8), 10(a)(2), or 10(a)(3) of 
the 1984 Act, or 46 CFR 572.801 of the Commission's regulations by 
imposing restrictions on the right of members to take independent 
action; and
    3. Whether or not any of the members of TAA (or TACA), and of 
agreement Nos. 203-011171, 203-011394, 203-011395, and 203-011396, 
has violated or is violating section 5(b) (2) or (3) of the 1984 
Act, by failing to provide reasonable and equal terms and conditions 
for admission and readmission to conference membership, or by 
failing to permit any member to withdraw from conference membership 
upon reasonable notice without penalty.

    It is further ordered, That the first ordering paragraph of the 
Commission's July 27 Order is amended to read as follows:

    Now therefore, it is ordered, That pursuant to sections 5, 6, 8, 
10, 11, 12 and 23 of the Shipping Act of 1984, 46 U.S.C. app. 1704, 
1706, 1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of 
Title 46 of the Code of Federal Regulations, 46 CFR 502.281, et 
seq., a nonadjudicatory investigation is hereby instituted into the 
practices of TAA (or TACA) and its member lines (including Hanjin 
Shipping Co., Ltd.), listed in the Appendix to this order, to 
develop the issues set forth in this order and to provide a basis 
for any subsequent adjudicatory, assessment or injunctive action by 
the Commission.

    It is further ordered, That the first sentence of the second 
ordering paragraph of the July 27 Order is amended as follows:

    It is further ordered, That the Investigative Officers shall be 
Wm. Jarrel Smith, Jr., Vern W. Hill, Charles L. Haslup III, Carolyn 
H. Grigg, Peter J. King and Martha C. Smith of the Commission.

    It is further ordered, That the third ordering paragraph of the 
July 27 Order is amended as follows:

    It is further ordered, That the Investigative Officers shall 
issue a joint report of findings and recommendations not later than 
March 24, 1995, and interim reports if it appears that more 
immediate Commission action, particularly injunctive action, is 
necessary, such reports to remain confidential unless and until the 
Commission provides otherwise;

    It is further ordered, That the Appendix of the July 27 Order is 
amended. The amended Appendix is attached as an appendix to this Order;
    It is further ordered, That this Amended Order of Investigation be 
served on the respondents listed in the Appendix attached to this Order 
and the July 27 Order be served on Hanjin Shipping Co., Ltd.;
    Finally, it is ordered, That the July 27 Order is in every other 
respect unchanged.

    By the Commission.
Joseph C. Polking,
Secretary.

Amended Appendix

Trans-Atlantic Agreement, Meadows Office Complex, 201 Route 17 
North, Rutherford, NJ 07070
Polish Ocean Lines, 1001 Durham Ave., South Plainfield, NJ 07080
Neptune Orient Lines Ltd., c/o Tricom Shipping Agency, 15 Exchange 
Place, 7th Floor, Jersey City, NJ 07302
Mediterranean Shipping Company S.A., 420 5th Avenue, 8th Floor, New 
York, NY 10008-2702
DSR/Senator Joint Service, 50 Cragwood Rd., South Plainfield, NJ 
07080
Sea-Land Service, Inc., 150 Allen Road, Liberty Corner, NJ 07938
P&O Containers Limited, One Meadowlands Plaza, 12th Fl., E. 
Rutherford, NJ 07073
Hapag-Lloyd AG, 399 Hoes Lane, Piscataway, NJ 08854
Orient Overseas Container Line, 4141 Hacienda Drive, Pleasanton, CA 
90731
Atlantic Container Line AB, 50 Cragwood Road, South Plainfield, NJ 
07080
A.P. Moller-Maersk Line, Giralda Farms, P.O. Box 880, Madison, NJ 
07940-0880
Nedlloyd Lijnen BV, c/o Nedlloyd Lines (USA) Corp., 2100 RiverEdge 
Pkwy, Ste. 300, Atlanta, GA 30328-4656
Nippon Yusen Kaisha, NYK Line, 300 Lighting Way, 5th Floor, 
Secaucus, NJ 07094
Transportacion Maritima Mexicana, S.A. de C.V., c/o Trans-America 
S.S. Agency, 140 W. 6th Street, San Pedro, CA 90731
Tecomar S.A. de C.V., c/o Phoenician Int'l Shipping, 2350 N. Belt 
East, Suite 720, Houston, TX 77032
Cho Yang Shipping Co. Ltd., 301 Route 17 North, 6th Floor, 
Rutherford, NJ 07070
Hanjin Shipping Co., Ltd., 1521 Pier C Street, Long Beach, CA 90813

[FR Doc. 94-29409 Filed 11-29-94; 8:45 am]
BILLING CODE 6730-01-M