Title 46ShippingRelease 119-73not60

§40701 Rates

Title 46 › Subtitle Subtitle IV— Regulation of Ocean Shipping › Part A— Ocean Shipping › Chapter 407— CONTROLLED CARRIERS › § 40701

Last updated Apr 5, 2026|Official source

Summary

Controlled carriers must not set or keep tariffs, service-contract terms, rates, charges, or rules that make cargo be moved or handled for less than a just and reasonable level. After giving notice and a chance for a hearing, the Federal Maritime Commission can ban any rate or related rule a controlled carrier cannot show is just and reasonable. The carrier must prove its fairness. Any banned or suspended item is void and illegal to use.

Full Legal Text

Title 46, §40701

Shipping — Source: USLM XML via OLRC

(a)A controlled carrier may not—
(1)maintain a rate or charge in a tariff or service contract, or charge or assess a rate, that is below a just and reasonable level; or
(2)establish, maintain, or enforce in a tariff or service contract a classification, rule, or regulation that results, or is likely to result, in the carriage or handling of cargo at a rate or charge that is below a just and reasonable level.
(b)The Federal Maritime Commission, at any time after notice and opportunity for a hearing, may prohibit the publication or use of a rate, charge, classification, rule, or regulation that a controlled carrier has failed to demonstrate is just and reasonable.
(c)In a proceeding under this section, the burden of proof is on the controlled carrier to demonstrate that its rate, charge, classification, rule, or regulation is just and reasonable.
(d)A rate, charge, classification, rule, or regulation that has been suspended or prohibited by the Commission is void and its use is unlawful.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4070146 App.:1708(a).Pub. L. 98–237, § 9(a), Mar. 20, 1984, 98 Stat. 76; Pub. L. 102–100, § 5(a), Aug. 17, 1991, 105 Stat. 492; Pub. L. 105–258, title I, § 108(1)–(4), Oct. 14, 1998, 112 Stat. 1908.

Reference

Citations & Metadata

Citation

46 U.S.C. § 40701

Title 46Shipping

Last Updated

Apr 5, 2026

Release point: 119-73not60