The Federal Maritime Commission is an independent regulatory agency with responsibility over the oceanborne trade of the United States. The Commission has jurisdiction over common carriers by water and conferences, shippers, independent ocean freight forwarders, and terminal operators. The principal mission of the Commission is to monitor and regulate competitive forces in ocean shipping to insure that exporters and importers in this country are provided adequate service and reasonable rates. Thus, Federal Maritime Commission regulation has economic impact on the entire spectrum of international trade. The process embraces rulemaking and adjudication; investigations of alleged violations; handling of complaints and grievances as expeditiously as possible; and, in general, carrying out the Congressional purposes expressed in the statutes under fair and modern procedures.

During the past year, the Commission continued to pursue an aggressive enforcement program to deal with the problem of illegal rebating and other forms of malpractice by common carriers and shippers operating in the ocean trades of the United States. Since Sea-Land Service, Inc. disclosed its rebating practices in the United States foreign trades last year, other voluntary disclosures have been made by carriers, shippers and consignees involving United States and foreign flag lines, and over 200 shippers are presently under investigation for giving or receiving illegal rebates in United States foreign trades.

The expansion of international trade, economic factors and technological advancement in the areas
of containerization and intermodalism, have all had a significant impact on the workload and
responsibilities of the Commission with regard to its role under the shipping statutes.

During fiscal year 1977, the Commission, pursuant to the requirements of the Sunshine Act, promul-
gated and implemented regulations which permit the public to observe most deliberations of the
Commission members which result in the conduct or disposition of official agency business. Advance
public notice of agency meetings is given. The discussion of items in closed session is limited to
statutorily exempted matters which the Commission by majority vote determines to be properly closed.
In January 1977, the Commission was given the responsibility to administer the vessel certification
and financial responsibility provisions of subsection 204 (c), Trans-Alaska Pipeline Authorization

Act of 1973 (TAPAA). In addition to the liability to the United States for the cost of removing oil, the TAPAA evidence must cover liabilities for all types of damages sustained by any public or private entity, including residents of Canada.

(a) Continue to conduct an aggressive enforcement program to eliminate rebating and other forms of malpractices by common carriers in the ocean trades of the United States.

Examination and comparative analysis of the tariffs of ocean carriers; terminal operators; and conference of such carriers.

Pursue a consumer representation program designed to insure consideration of consumer interests in all matters before the Commission.

(f) Administer the vessel certification and financial responsibility provisions of the Federal Water Pollution Control Act amendments of 1972 and the Trans-Alaska Pipeline Authorization Act. In addition, recertify approximately 26,000 vessels with regard to liability for the cost of removing "hazardous substances," as well as oil pollution.

(g) Active review of the practices of independent freight forwarders.

Implementation of additional revisions to General Order 4 will provide for the increased surveillance of freight forwarder activities through the submission of financial and statistical data.

(h) Oversee a consumer protection program to provide protection to persons traveling on passenger vessels.

(1) Investigate the economics of closed versus open conferences, bilateral pooling agreements and controlled carrier legislation.