§40702 — Title 46 Shipping | U.S. Code

Summary

The Federal Maritime Commission must check whether a controlled carrier’s rates, charges, rules, or classifications are fair by seeing if a published or charged rate is low enough that it does not fully cover the carrier’s actual costs or its constructive costs. Constructive costs means the costs of another carrier (not the controlled one) running similar ships and equipment in the same or a similar trade. The Commission may also consider other things, such as whether the rate is like what other carriers charge in the same trade, is needed to move particular cargo, or is needed to keep acceptable continuity, level, or quality of shipping service to or from the affected ports.

Title 46, §40702

Shipping — Source: USLM XML via OLRC

(a)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)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