Title 46 — ShippingRelease 119-73
§40702 Rate standards
Title 46 › Subtitle Subtitle IV— - Regulation of Ocean Shipping › Part Part A— - Ocean Shipping › Chapter CHAPTER 407— - CONTROLLED CARRIERS › § 40702
Summary
Federal Maritime Commission must check whether a controlled carrier’s rates cover its actual costs or “constructive costs” — what a similar carrier would pay. The Commission may also consider if rates match others, are needed to move certain cargo, or keep acceptable port service.
Full Legal Text
Title 46, §40702
Shipping — Source: USLM XML via OLRC
(a)In this section, the term “constructive costs” means the costs of another carrier, other than a controlled carrier, operating similar vessels and equipment in the same or a similar trade.
(b)In determining whether a rate, charge, classification, rule, or regulation of a controlled carrier is just and reasonable, the Federal Maritime Commission—
(1)shall take into account whether the rate or charge that has been published or assessed, or that would result from the pertinent classification, rule, or regulation, is below a level that is fully compensatory to the controlled carrier based on the carrier’s actual costs or constructive costs; and
(2)may take into account other appropriate factors, including whether the rate, charge, classification, rule, or regulation is—
(A)the same as, or similar to, those published or assessed by other carriers in the same trade;
(B)required to ensure movement of particular cargo in the same trade; or
(C)required to maintain acceptable continuity, level, or quality of common carrier service to or from affected ports.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 4070246 App.:1708(b).Pub. L. 98–237, § 9(b), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(5)–(7), Oct. 14, 1998, 112 Stat. 1908.
Reference
Citations & Metadata
Citation
46 U.S.C. § 40702
Title 46 — Shipping
Last Updated
Apr 6, 2026
Release point: 119-73