PRIA, Government Policy, Made Personal

Summary

You must register a shipping exchange with the Federal Maritime Commission before running one that handles ocean freight in U.S. foreign trade. To register, you file an application in the form the Commission sets and include the exchange’s rules and any other information the Commission asks for. The Commission can exempt an exchange if it is already closely regulated in the foreign country where it is based. The Commission must write rules within 3 years after the Ocean Shipping Reform Act of 2022 takes effect to set standards for registered exchanges. For service contracts, the Commission can only use the basic, essential contract terms already set. A shipping exchange means a platform that connects shippers with common carriers to make cargo transport agreements by ship or other transport.

Title 46, §40504

Shipping, Source: USLM XML via OLRC

(a)In General.—

No person may operate a shipping exchange involving ocean transportation in the foreign commerce of the United States unless the shipping exchange is registered as a national shipping exchange under the terms and conditions provided in this section and the regulations issued pursuant to this section.

(b)Registration.—

A person shall register a shipping exchange by filing with the Federal Maritime Commission an application for registration in such form as the Commission, by rule, may prescribe, containing the rules of the exchange and such other information and documents as the Commission, by rule, may prescribe as necessary or appropriate to complete a shipping exchange’s registration.

(c)Exemption.—

The Commission may exempt, conditionally or unconditionally, a shipping exchange from registration under this section if the Commission finds that the shipping exchange is subject to comparable, comprehensive supervision and regulation by the appropriate governmental authorities in a foreign country where the shipping exchange is headquartered.

(d)Regulations.—

Not later than 3 years after the date of enactment of the Ocean Shipping Reform Act of 2022, the Commission shall issue regulations pursuant to subsection (a), which shall set standards necessary to carry out subtitle IV of this title for registered national shipping exchanges. For consideration of a service contract entered into by a shipping exchange, the Commission shall be limited to the minimum essential terms for service contracts established under section 40502 of this title.

(e)Definition of Shipping Exchange.—

In this section, the term “shipping exchange” means a platform (digital, over-the-counter, or otherwise) that connects shippers with common carriers for the purpose of entering into underlying agreements or contracts for the transport of cargo, by vessel or other modes of transportation.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of the Ocean Shipping Reform Act of 2022, referred to in subsec. (d), is the date of enactment of Pub. L. 117–146, which was approved June 16, 2022.

Statutory Notes and Related Subsidiaries

Applicability of Registration Requirement Pub. L. 117–146, § 4(b), June 16, 2022, 136 Stat. 1273, provided that: “The registration requirement under section 40504 of title 46, United States Code (as added by subsection (a)), shall take effect on the date on which the Federal Maritime Commission states the rule is effective in the

Regulations

issued under such section.”

§40504 Shipping Exchange Registry