Title 46, ShippingRelease 119-110

§40704 Commission Review

Title 46 › Subtitle IV — Regulation of Ocean Shipping › Part A — Ocean Shipping › CHAPTER 407 — CONTROLLED CARRIERS › § 40704

Last updated Sep 22, 2026|Official source

Summary

The Federal Maritime Commission can require a controlled carrier to explain why a current or proposed rate, charge, classification, rule, or regulation is needed. The carrier must give that written explanation within 20 days. After getting the information, the Commission has 120 days to decide if the item might be unfair or unreasonable. If the Commission thinks it may be unfair, it will order the carrier to explain why it should be allowed. The Commission can pause a rate before it starts or, if it already started, suspend it with at least 30 days’ notice. Any suspension can last no more than 180 days. During a suspension the carrier may publish a replacement that takes effect right away, but the Commission can reject that replacement if it finds it unfair.

Full Legal Text

Title 46, §40704

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(a)Request for Justification.—
On request of the Federal Maritime Commission, a controlled carrier shall file with the Commission, within 20 days of the request, a statement of justification that sufficiently details the carrier’s need and purpose for an existing or proposed rate, charge, classification, rule, or regulation and upon which the Commission may reasonably base a determination of its lawfulness.
(b)Determination.—
Within 120 days after receipt of information requested under subsection (a), the Commission shall determine whether the rate, charge, classification, rule, or regulation may be unjust and unreasonable.
(c)Show Cause Order.—
Whenever the Commission is of the opinion that a rate, charge, classification, rule, or regulation published or assessed by a controlled carrier may be unjust and unreasonable, the Commission shall issue an order to the controlled carrier to show cause why the rate, charge, classification, rule, or regulation should not be prohibited.
(d)Suspension Pending Determination.—
(1)Not yet effective.—
Pending a determination of the lawfulness of a rate, charge, classification, rule, or regulation in a proceeding under subsection (c), the Commission may suspend the rate, charge, classification, rule, or regulation at any time before its effective date.
(2)Already effective.—
If a rate, charge, classification, rule, or regulation has already become effective, the Commission, on issuance of an order to show cause, may suspend the rate, charge, classification, rule, or regulation on at least 30 days’ notice to the controlled carrier.
(3)Maximum suspension.—
A period of suspension under this subsection may not exceed 180 days.
(e)Replacement During Suspension.—
Whenever the Commission has suspended a rate, charge, classification, rule, or regulation under this section, the controlled carrier may publish a new rate, charge, classification, rule, or regulation to take effect immediately during the suspension in lieu of the suspended rate, charge, classification, rule, or regulation. However, the Commission may reject the new rate, charge, classification, rule, or regulation if the Commission believes it is unjust and unreasonable.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4070446 App.:1708(c) (last sentence), (d).Pub. L. 98–237, § 9(c) (last sentence), (d), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(9)–(15), Oct. 14, 1998, 112 Stat. 1908. In subsection (d)(1), the words “in a proceeding under subsection (c)” are substituted for “in such a proceeding” for clarity.

Reference

Citations & Metadata

Citation

46 U.S.C. § 40704

Title 46, Shipping

Last Updated

Sep 22, 2026

Release point: 119-110