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Title 46 — ShippingRelease 119-73

§40704 Commission review

Title 46 › Subtitle Subtitle IV— - Regulation of Ocean Shipping › Part Part A— - Ocean Shipping › Chapter CHAPTER 407— - CONTROLLED CARRIERS › § 40704

Last updated Apr 6, 2026|Official source

Summary

When the Federal Maritime Commission asks, a controlled carrier must file a written explanation within 20 days that says why an existing or planned rate, charge, rule, or classification is needed. The Commission then has 120 days to decide if that rate or rule might be unfair. If the Commission thinks it might be unfair, it will order the carrier to explain why the rate or rule should not be stopped. While the Commission reviews the matter, it can suspend the rate or rule. It can suspend it any time before the rate takes effect. If the rate is already in effect, the Commission can suspend it with at least 30 days’ notice. Any suspension cannot last more than 180 days. During a suspension, the carrier may put a new rate or rule into immediate effect, but the Commission can reject that new one if it believes it is unfair.

Full Legal Text

Title 46, §40704

Shipping — Source: USLM XML via OLRC

(a)On request of the Federal Maritime Commission, a controlled carrier shall file with the Commission, within 20 days of the request, a statement of justification that sufficiently details the carrier’s need and purpose for an existing or proposed rate, charge, classification, rule, or regulation and upon which the Commission may reasonably base a determination of its lawfulness.
(b)Within 120 days after receipt of information requested under subsection (a), the Commission shall determine whether the rate, charge, classification, rule, or regulation may be unjust and unreasonable.
(c)Whenever the Commission is of the opinion that a rate, charge, classification, rule, or regulation published or assessed by a controlled carrier may be unjust and unreasonable, the Commission shall issue an order to the controlled carrier to show cause why the rate, charge, classification, rule, or regulation should not be prohibited.
(d)(1)Pending a determination of the lawfulness of a rate, charge, classification, rule, or regulation in a proceeding under subsection (c), the Commission may suspend the rate, charge, classification, rule, or regulation at any time before its effective date.
(2)If a rate, charge, classification, rule, or regulation has already become effective, the Commission, on issuance of an order to show cause, may suspend the rate, charge, classification, rule, or regulation on at least 30 days’ notice to the controlled carrier.
(3)A period of suspension under this subsection may not exceed 180 days.
(e)Whenever the Commission has suspended a rate, charge, classification, rule, or regulation under this section, the controlled carrier may publish a new rate, charge, classification, rule, or regulation to take effect immediately during the suspension in lieu of the suspended rate, charge, classification, rule, or regulation. However, the Commission may reject the new rate, charge, classification, rule, or regulation if the Commission believes it is unjust and unreasonable.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4070446 App.:1708(c) (last sentence), (d).Pub. L. 98–237, § 9(c) (last sentence), (d), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(9)–(15), Oct. 14, 1998, 112 Stat. 1908. In subsection (d)(1), the words “in a proceeding under subsection (c)” are substituted for “in such a proceeding” for clarity.

Reference

Citations & Metadata

Citation

46 U.S.C. § 40704

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73