Federal Maritime Commission

What is Federal Maritime Commission?

The Federal Maritime Commission (FMC) is a regulatory agency that plays a crucial role in overseeing and controlling the services, practices, and agreements of international water common carriers and noncontiguous domestic water carriers. In simpler terms, the FMC is responsible for ensuring that the transportation of goods by sea is conducted in a fair and efficient manner.

International water common carriers refer to shipping companies that operate between different countries. These carriers play a vital role in facilitating global trade by transporting goods across oceans. The FMC regulates their activities to ensure that they adhere to certain standards and practices. This includes monitoring their rates, terms, and conditions of service to prevent any unfair practices that could harm consumers or hinder competition.

Noncontiguous domestic water carriers, on the other hand, are shipping companies that operate within the United States but serve noncontiguous areas such as Alaska, Hawaii, and Puerto Rico. These carriers face unique challenges due to their geographical locations, and the FMC ensures that they have fair access to transportation services and that their rates are reasonable.

The FMC's primary goal is to promote a competitive and efficient maritime industry. It achieves this by reviewing and approving agreements between shipping companies, known as ocean carrier agreements. These agreements allow carriers to cooperate on various aspects such as vessel sharing, slot chartering, and joint pricing. The FMC ensures that these agreements do not result in anti-competitive behavior or harm the interests of shippers and consumers.

In addition to regulating carriers, the FMC also provides a platform for resolving disputes between shipping companies, shippers, and other parties involved in maritime transportation. This helps maintain a fair and transparent environment for all stakeholders.

Overall, the Federal Maritime Commission plays a vital role in ensuring that the transportation of goods by sea is conducted in a fair, efficient, and competitive manner. By regulating international water common carriers and noncontiguous domestic water carriers, the FMC helps facilitate global trade and protects the interests of shippers and consumers.