§40904 — Title 46 Shipping | U.S. Code

Summary

Common carriers may pay an ocean freight forwarder only if the forwarder gives a written statement that it has any required ocean transportation intermediary license and the forwarder both arranged or confirmed space on the ship with the carrier or its agent and prepared the shipping papers (like the bill of lading or dock receipt). A carrier can pay for those services only once per shipment. A forwarder cannot be paid for a shipment in which it has a direct or indirect financial interest, and a carrier cannot knowingly pay in that case. Carrier groups that set pay rates cannot stop a member from acting alone after up to 5 days’ notice, and they cannot agree to cap pay below 1.25% of the total tariff rates and charges billed to the cargo.

Title 46, §40904

Shipping — Source: USLM XML via OLRC

(a)A common carrier may compensate an ocean freight forwarder for a shipment dispatched for others only when the ocean freight forwarder has certified in writing that it holds an ocean transportation intermediary’s license (if required under section 40901 of this title) and has—

(1)engaged, booked, secured, reserved, or contracted directly with the carrier or its agent for space aboard a vessel or confirmed the availability of the space; and

(2)prepared and processed the ocean bill of lading, dock receipt, or other similar document for the shipment.

(b)A common carrier may not pay compensation for services described in subsection (a) more than once on the same shipment.

(c)An ocean freight forwarder may not receive compensation from a common carrier for a shipment in which the ocean freight forwarder has a direct or indirect beneficial interest. A common carrier may not knowingly pay compensation on that shipment.

(d)A conference or group of two or more ocean common carriers in the foreign commerce of the United States that is authorized to agree on the level of compensation paid to an ocean freight forwarder may not—

(1)deny a member of the conference or group the right, upon notice of not more than 5 days, to take independent action on any level of compensation paid to an ocean freight forwarder; or

(2)agree to limit the payment of compensation to an ocean freight forwarder to less than 1.25 percent of the aggregate of all rates and charges applicable under a tariff and assessed against the cargo on which the services of the ocean freight forwarder are provided.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 4090446 App.:1718(e).Pub. L. 98–237, § 19(e), Mar. 20, 1984, 98 Stat. 88; Pub. L. 105–258, title I, § 116, Oct. 14, 1998, 112 Stat. 1912. In this section, the words “ocean freight forwarder” are substituted for “ocean transportation intermediary, as defined in section 1702(17)(A) of this Appendix” and “ocean transportation intermediary” because the definition of “ocean transportation intermediary” in section 1702(17)(A) contains a definition of “ocean freight forwarder” which is restated as a separate definition. In subsection (d)(1), the word “calendar” is omitted as unnecessary.

§40904 Compensation by Common Carriers

Summary

Title 46, §40904

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata