§40303 Content Requirements

Summary

Limits what ocean carrier agreements can do and sets rules for conferences. Agreements cannot stop a member from negotiating a service contract. They cannot force a member to reveal contract talks or terms, except what must be published under section 40502(d). They cannot make mandatory rules that take away a member’s right to negotiate or sign service contracts. Agreements may create voluntary guidelines about service contracts only if members are told they may ignore them, and the guidelines must be sent confidentially to the Federal Maritime Commission. Conference agreements must say their purpose, give fair rules to join or rejoin, let members leave with reasonable notice and no penalty, allow an independent neutral to enforce rules if asked, forbid conduct banned by section 41105(1) or (3), set up dispute and shipper complaint procedures, and let any member act alone on a rate or service item with up to 5 days’ notice; the conference must put that new rate in its tariff within 5 days and other members may adopt it. Agreements between carriers not in the same conference, or between conferences, must also allow independent action. Defined carrier: one that has not been the owner, operator, or bareboat charterer for at least one year of U.S. liner vessels eligible for the Maritime Security Fleet Program and enrolled in the Emergency Preparedness Program under chapter 531.