[Federal Register Volume 70, Number 89 (Tuesday, May 10, 2005)]
[Notices]
[Page 24581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9322]


=======================================================================
-----------------------------------------------------------------------

FEDERAL MARITIME COMMISSION


Controlled Carriers Under The Shipping Act of 1984

AGENCY: Federal Maritime Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Federal Maritime Commission is publishing an updated list 
of controlled carriers, i.e., ocean common carriers operating in U.S.-
foreign trades that are owned or controlled by foreign governments. 
Such carriers are subject to special regulatory oversight by the 
Commission under the Shipping Act of 1984.

FOR FURTHER INFORMATION CONTACT: Amy W. Larson, General Counsel, 
Federal Maritime Commission, 800 North Capitol Street, NW., Washington, 
DC 20573. (202) 523-5740.

SUPPLEMENTARY INFORMATION: The Federal Maritime Commission is 
publishing an updated list of controlled carriers. Section 3(8) of the 
Shipping Act of 1984 (``Act''), 46 U.S.C. app. 1702(3), defines a 
``controlled carrier'' as:

    An ocean common carrier that is, or whose operating assets are, 
directly or indirectly, owned or controlled by a government; 
ownership or control by a government shall be deemed to exist with 
respect to any carrier if--
    (A) a majority portion of the interest in the carrier is owned 
or controlled in any manner by that government, by any agency 
thereof, or by any public or private person controlled by that 
government; or
    (B) that government has the right to appoint or disapprove the 
appointment of a majority of the directors, the chief operating 
officer, or the chief executive officer of the carrier.

    As required by the Shipping Act, controlled carriers are subject to 
special oversight by the Commission. Section 9(a) of the Act, 46 U.S.C. 
app. 1708(a), states, in part:

    No controlled carrier subject to this section may maintain rates 
or charges in its tariffs or service contracts, or charge or assess 
rates, that are below a level that is just and reasonable, nor may 
any such carrier establish, maintain, or enforce unjust or 
unreasonable classifications, rules, or regulations in those tariffs 
or service contracts. An unjust or unreasonable classification, 
rule, or regulation means one that results or is likely to result in 
the carriage or handling of cargo at rates or charges that are below 
a just and reasonable level. The Commission may, at any time after 
notice and hearing, prohibit the publication or use of any rates, 
charges, classifications, rules, or regulations that the controlled 
carrier has failed to demonstrate to be just and reasonable.

Congress enacted these protections to ensure that controlled carriers, 
whose marketplace decision making can be influenced by foreign 
governmental priorities or by their access to non-market sources of 
capital, do not engage in unreasonable below-market pricing practices 
which could disrupt trade or harm privately-owned shipping companies.
    The controlled carrier list is not a comprehensive list of foreign-
owned or -controlled ships or shipowners; rather, it is only a list of 
ocean common carriers (as defined in section 3(16) of the Act) that are 
owned or controlled by governments. Thus, tramp operators and other 
non-common carriers are not included, nor are non-vessel-operating 
common carriers, regardless of their ownership or control.
    Since the last publication of this list on June 9, 2003 (68 FR 
34388), the Commission has newly classified two ocean common carriers 
as controlled carriers. On September 27, 2004, American President 
Lines, Ltd. and APL Co. Pte, Ltd. (one ocean common carrier designated 
``APL'') was classified as a carrier controlled by the Government of 
the Republic of Singapore (``GOS''). The majority ownership of APL's 
parent company, Neptune Orient Lines (``NOL'') had been purchased by a 
GOS controlled holding company. On November 29, 2004, the Commission 
classified China Shipping (Hong Kong), Ltd. (``CSHK'') as a carrier 
controlled by the Government of the People's Republic of China. CSHK 
was a new entrant in the U.S.-foreign trades. Neither APL nor CSHK 
raised any objections to these classifications.
    It is requested that any other information regarding possible 
omissions or inaccuracies in this list be provided to the Commission's 
Office of the General Counsel. See 46 CFR 501.23. The amended list of 
currently classified controlled carriers and their corresponding 
Commission-issued Registered Persons Index numbers is set forth below:

(1) American President Lines, Ltd and APL Co., Pte. (RPI No. 000240)--
Republic of Singapore;
(2) Ceylon Shipping Corporation (RPI No. 016589)--Democratic Socialist 
Republic of Sri Lanka;
(3) COSCO Container Lines Company, Limited (RPI No. 015614)--People's 
Republic of China;
(4) China Shipping Container Lines Co., Ltd. (RPI No. 016435)--People's 
Republic of China;
(5) China Shipping Container Lines (Hong Kong) Company, Ltd. (RPI No. 
019269)--People's Republic of China;
(6) Compagnie Nationale Algerienne de Navigation (RPI No. 000787)--
People's Democratic Republic of Algeria;
(7) Sinotrans Container Lines Co., Ltd. (d/b/a Sinolines)(RPI No. 
017703)--People's Republic of China;
(8) Shipping Corporation of India Ltd., The (RPI No. 001141)--Republic 
of India.

    By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 05-9322 Filed 5-9-05; 8:45 am]
BILLING CODE 6730-01-P