PRIA, Government Policy, Made Personal

Summary

Requires the Federal Maritime Commission to decide if a controlled carrier’s rates, charges, rules, or classifications are fair and cover costs. "Constructive costs" means the costs another similar, non‑controlled carrier would have in the same trade. The Commission must consider whether a rate is below what would fully cover actual or constructive costs, and can also consider if the rate matches other carriers, is needed to move certain cargo, or is needed to keep acceptable service at affected ports.

Title 46, §40702

Shipping, Source: USLM XML via OLRC

(a)Definition.—

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)Standards.—

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.

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.

§40702 Rate Standards

Summary

Title 46, §40702

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata