94-29760. Information Form and Post-Effective Reporting Requirements for Agreements Among Ocean Common Carriers Subject to the Shipping Act of 1984

[Federal Register Volume 59, Number 232 (Monday, December 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29760]


[[Page Unknown]]

[Federal Register: December 5, 1994]


-----------------------------------------------------------------------


FEDERAL MARITIME COMMISSION
46 CFR Part 572

[Docket No. 94-31]

 

Information Form and Post-Effective Reporting Requirements for 
Agreements Among Ocean Common Carriers Subject to the Shipping Act of 
1984

AGENCY: Federal Maritime Commission.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Maritime Commission proposes to amend its 
regulations governing the information submission requirements for 
agreements among ocean common carriers subject to the Shipping Act of 
1984. The Commission proposes to replace the current information form 
that accompanies newly filed agreements with a new form applicable to 
certain kinds of agreements, which requires the submission of specific 
data on the agreement member lines' cargo carryings, revenue results 
and port service patterns before they entered into the agreement. In 
addition, the Commission proposes regulations that require the member 
lines of certain kinds of effective agreements to submit reports on 
their operations on a regular and ongoing basis, which would reflect 
the lines' cargo carryings, revenue results and port service patterns 
after they entered into the agreement. The application of the proposed 
rule to a particular agreement depends primarily on whether the 
agreement authorizes its carrier members to engage in certain 
activities, and secondarily on the carrier members' combined market 
share. An agreement that does not authorize any of the activities 
specified by the proposed rule would still be filed with the 
Commission, unless it qualifies for one of the Commission's existing 
filing exemptions, but would not have any information form or reporting 
obligations. The intent of the proposed rule is to provide the 
Commission with improved information on the impact of concerted carrier 
practices on the foreign commerce of the United States, and to 
facilitate the processing and monitoring of ocean carrier agreements 
under the standards of the Shipping Act of 1984.

DATES: Comments due February 3, 1995.

ADDRESSES: Send comments (original and fifteen copies) to: Joseph C. 
Polking, Secretary, Federal Maritime Commission. 800 North Capitol 
Street NW., Washington, DC 20573-0001.

FOR FURTHER INFORMATION CONTACT:
Robert D. Bourgoin, General Counsel, Federal Maritime Commission, 800 
North Capitol Street NW., Washington, DC 20573-0001, [phone]
Austin L. Schmitt, Director, Bureau of Trade Monitoring and Analysis, 
Federal Maritime Commission, 800 North Capitol Street NW., Washington, 
DC 20573-0001, [phone]

SUPPLEMENTARY INFORMATION:

A. Background

    The jurisdiction of the Federal Maritime Commission (``FMC'' or 
``Commission'') over ocean carrier agreements in the foreign commerce 
of the United States extends under section 4(a) of the Shipping Act of 
1984 (``1984 Act'') to all agreements to:
    (1) Discuss, fix, or regulate transportation rates, including 
through rates, cargo space accommodations, and other conditions of 
service;
    (2) Pool or apportion traffic, revenues, earnings, or losses;
    (3) Allot ports or restrict or otherwise regulate the number and 
character of sailings between ports;
    (4) Limit or regulate the volume or character of cargo or passenger 
traffic to be carried;
    (5) Engage in exclusive, preferential, or cooperative working 
arrangements * * *;
    (6) Control, regulate, or prevent competition in international 
ocean transportation; and
    (7) Regulate or prohibit * * * use of service contracts.

46 U.S.C. app. 1703(a).

    The reforms in 1984 to the Shipping Act were intended in large part 
to facilitate the swift effectiveness, with immunity from the antitrust 
laws, of such agreements. Section 15 of the former Shipping Act, 1916 
(``1916 Act''), had required carriers to secure Commission approval for 
any agreement governing rates, conditions of service, or similar 
matters, before such an agreement could become effective. Under 
standards set forth in section 15, the Commission was permitted to 
disapprove, cancel, or modify any agreement that it found to be 
unjustly discriminatory or unfair, or to operate to the detriment of 
the commerce of the United States, or to be contrary to the public 
interest, or to be in violation of the 1916 Act. 46 U.S.C. 814 (1982).
    The Commission, with Supreme Court approval, had taken the position 
that agreements to set rates, pool revenues, restrict capacity, or to 
engage in other activities that normally would be contrary to the 
antitrust laws were presumed to be contrary to the public interest, and 
would be approved only if they were shown to be ``required by a serious 
transportation need, necessary to secure important public benefits or 
in furtherance of a valid regulatory purpose of the Shipping Act.'' FMC 
v. Svenska Amerika Linien, 390 U.S. 238, 243 (1968). The burden of 
making this showing was placed upon the carrier proponents of an 
agreement, on the ground that information regarding the operation and 
probable future impact of an agreement ``[a]lmost uniformly * * * is in 
the hands of those seeking approval * * * and it is incumbent upon 
those in possession of such information to come forward with it.'' 
Mediterranean Pools Investigation, 9 F.M.C. 264, 290 (1966). Under 
these procedures, the implementation of agreements had often been 
delayed for considerable amounts of time, especially if formal protests 
were made. See Marine Space Enclosures, Inc. v. FMC, 420 F.2d 577 (D.C. 
Cir. 1969) (requiring that the Commission hold a hearing when a protest 
raising substantial issues had been filed). In many cases, protests 
were filed by other carriers, who effectively delayed or blocked their 
competitors' business plans.
    The 1984 Act did away with the requirement that an agreement had to 
be approved by the Commission before it could lawfully operate. 
Instead, agreements now generally become effective forty-five days 
after they are filed. As a partial counterbalance to this liberalized 
approach, conference agreements\1\ are required by section 5(b) of the 
Act, 46 U.S.C. app. 1704(b), to include a number of procompetitive 
provisions, and the Commission may reject a conference agreement that 
does not meet this standard. Especially noteworthy is the requirement 
that all conference agreements must clearly state that any member line 
may take ``independent action'' on any rate or service item required to 
be filed in a tariff with the Commission; this empowers any member line 
to set an individual rate below (or above) the conference rate, without 
having to obtain approval of the rate from the other member lines. The 
conference is then required to publish the independent action rate in 
its conference tariff upon no more than ten days' notice.
---------------------------------------------------------------------------

    \1\Under the 1984 Act, a conference is an association of ocean 
common carriers which engage in concerted activities and utilize a 
common tariff. Section 3(7), 46 U.S.C. app. 1702(7).
---------------------------------------------------------------------------

    The Commission may also prescribe the ``form and manner'' in which 
agreements of any kind must be filed, and may reject an improperly 
drafted agreement. In addition, the Commission may request information 
and documents in connection with a newly filed agreement and, if its 
demand is not ``substantially'' met, may seek a delay in the 
agreement's effective date or other relief from the United States 
District Court for the District of Columbia.\2\
---------------------------------------------------------------------------

    \2\Sections 6 (d) and (i) of the 1984 Act, 46 U.S.C. app. 1705 
(d) and (i).
---------------------------------------------------------------------------

    The 1984 Act sets forth an extensive list of prohibited acts, 
barring many anticompetitive practices that previously had been 
outlawed under the broad ``public interest'' standard of section 15 of 
the 1916 Act. For example, section 10(b)(6) of the 1984 Act, 46 U.S.C. 
app. 1709(b)(6), carries forward section 15's prohibition of agreements 
that are unfair or unjustly discriminatory between shippers or ports. 
Sections 10(c)(1)-(3) and (5) of the 1984 Act, id. app. 1709(c)(1)-(3) 
and (5), prohibit boycotts, restrictions on technological innovations, 
predatory practices and the denial of reasonable freight forwarder 
compensation, all of which the Commission previously had found violated 
section 15.\3\
---------------------------------------------------------------------------

    \3\See S. Rep. No. 3, 98th Cong., 1st Sess. 35-37 (1984).
---------------------------------------------------------------------------

    If the Commission has indications that an agreement may be 
operating in violation of the 1984 Act, it may institute an 
investigation of the agreement and its member lines. In addition, the 
Commission may ask any U.S. district court to temporarily enjoin the 
agreement while the investigation proceeds.\4\ If the court should find 
that continued operation of the agreement would be inequitable, it can 
issue an order barring further effectiveness of the agreement until ten 
days after issuance of the Commission's final decision. If the 
Commission should find in its final decision that violations of the 
1984 Act in fact occurred, it may ``disapprove, cancel or modify'' the 
agreement,\5\ which would in effect supersede the existing court 
injunction. In addition, the Commission may assess fines against the 
agreement member lines.\6\
---------------------------------------------------------------------------

    \4\Section 11(h)(1) of the 1984 Act, 46 U.S.C. app. 1710(h)(1).
    \5\Section 11(c) of the 1984 Act, 46 U.S.C. 1710(c).
    \6\Section 13(a) of the 1984 Act, 46 U.S.C. 1712(a).
---------------------------------------------------------------------------

    The other procedure provided by the 1984 Act by which the 
Commission can prevent an agreement from going into effect, or prevent 
further operation of an existing agreement, is set forth in section 
6(g). This provision authorizes the Commission to seek an injunction in 
the U.S. District Court for the District of Columbia against an 
agreement that is ``likely, by a reduction in competition, to produce 
an unreasonable reduction in transportation service or an unreasonable 
increase in transportation cost.'' 46 U.S.C. app. 1705(g). A proceeding 
under section 6(g) does not involve questions of discrimination or 
unfairness, which are covered by the section 10 prohibited acts, nor 
does it involve questions of statutory violations or fines against the 
carriers. Section 6(g) was meant to provide a way of dealing with 
``unusual or severe cases not addressed by other prohibitions in the 
Act,''\7\ and the only remedy available under the provision is an 
injunction against the agreement itself.
---------------------------------------------------------------------------

    \7\H.R. Rep. No. 600, 98th Cong., 2d Sess. 37 (1984).
---------------------------------------------------------------------------

B. The Commission's Agreement Program

    The Commission's procedures for evaluating and monitoring carrier 
agreements reflect the new responsibilities and limitations imposed by 
the 1984 Act. When an agreement is first filed, its provisions are 
immediately reviewed to ensure that they contain the 1984 Act's 
mandatory provisions and do not run afoul of the prohibited acts 
sections. In the ordinary case, that is a one-time process and does not 
entail ongoing periodic review.
    An agreement's effect on shippers, ports and maritime commerce is a 
different matter. An agreement of significant anticompetitive 
dimensions--for example, a large market share combined with authority 
to fix rates and control service contracts--poses potential dangers of 
unlawful activities and unreasonable rate increases or service 
reductions both when it is first filed and for as long as it remains in 
effect. Thus, under the new regulatory framework established by the 
1984 Act, the role of the Commission as a monitoring and surveillance 
agency was greatly enhanced. In discharging that responsibility, the 
Commission cannot merely examine an agreement's provisions; rather, it 
must continually gather, review and interpret data on the impact of the 
agreement on U.S. foreign commerce. As for the source of such 
information, the 1984 Act removed the burden of proof in agreement 
investigations from the carriers, but did not alter the accuracy of the 
Commission's 1966 observation in Mediterranean Pools Investigation that 
the primary source for information on the operation of an agreement is 
the carriers that are the parties to the agreement.
    At present, the Commission has regulations in place that obtain 
information from carriers about their agreements in two principal ways. 
All new agreements, unless specifically exempted,\8\ and all 
``significant modifications'' to existing agreements\9\ must submit an 
information form\10\ which, at a minimum, requires the parties to state 
the full name of the agreement (Part I); whether the agreement 
authorizes collective rate fixing (Part II(A)), cargo or revenue 
pooling (Part II(B)), or the establishment of a ``joint service/
consortium'' arrangement (Part II(C)); whether the agreement was 
entered into as a response to any law or other official action by a 
foreign government (e.g., cargo reservation laws) (Part VI); and 
persons who can be contacted by the Commission's staff for further 
information if necessary (Part IX). If an agreement does authorize 
collective rate fixing, cargo or revenue pooling, or the establishment 
of a ``joint service/consortium'' arrangement, the parties are required 
additionally to provide market share and cargo carryings information 
for the previous year (Part III), to identify the nature and extent of 
any competition on the trade (Part IV), and to identify any reports, 
studies or other research on competitive conditions in the trade (Part 
VIII). Agreements that authorize service rationalization are required 
to provide information on any changes in port calls or reductions in 
service that will result from the agreement within the next twelve 
months (Part V). In addition, filing parties may voluntarily describe 
the benefits that they anticipate will accrue from the agreement to 
themselves (such as improved operational efficiencies) or to shippers 
and U.S. commerce (such as improved service) (Part VII).
---------------------------------------------------------------------------

    \8\See 46 CFR 572.302-11.
    \9\``Significant modifications'' are presently defined at 46 CFR 
572.403(a)(3) to include * * *
    * * * significant changes in the geographic scope of conference 
or pooling agreements which expand the scope to cover additional 
foreign countries or U.S. port ranges, including initial conference 
intermodal authority, or the extension of the scope of a joint 
service agreement to ports outside the scope of the existing joint 
service agreement currently served by two or more of the parties; 
additions to the number of parties in pooling or joint service 
agreements; significant reductions in service levels; significant 
changes in pool penalty provisions or carrying charges; and changes 
in cargo categories or descriptions that result in a significant 
increase in the amount of cargo subject to the pool, or changes in 
the allocation of cargo or revenue that significantly change the 
cargo or revenue shares of national or non-national flag lines.
    \10\The current information form is published as appendix A to 
part 572 of the Commission's regulations, following 46 CFR 572.991.
---------------------------------------------------------------------------

    The data and information shown on an agreement's information form 
are the basis for pre-implementation review of an agreement under 
section 10 and section 6(g) of the 1984 Act, unless additional 
information is obtained as a result of a formal request issued under 
section 6(d),\11\ in which case the agreement's effective date is 
delayed until the 45th day after the Commission receives the 
information requested, so that pre-implementation review can include 
the additional material.
---------------------------------------------------------------------------

    \11\N. 2, supra, and accompanying text.
---------------------------------------------------------------------------

    In addition, parties to effective agreements are required to file 
minutes of meetings of the carriers or other persons authorized to take 
action on behalf of the carriers, which include reports on shippers' 
requests and complaints and reports on consultations with shippers and 
shippers' associations.\12\
---------------------------------------------------------------------------

    \12\46 CFR 572.702-703.
---------------------------------------------------------------------------

C. Areas of Needed Improvement

    While the information-gathering processes for agreements 
established by the Commission immediately after passage of the 1984 Act 
have served their purpose adequately, the increasingly comprehensive 
and complex agreements filed in recent years indicate a need for 
updating and augmentation. Agreements with multi- country geographic 
ranges are now common. New devices and arrangements for dealing with 
excess capacity have appeared. Rate discussion agreements between 
conference and nonconference lines have become more prevalent, and such 
arrangements have not been required to include the procompetitive 
provisions applicable to conferences. Networks of vessel and space 
charter agreements covering a multitude of trade lanes have been 
established, and some of those agreements operate within larger 
conference agreements.
    In addition, some of the provisions of the current information form 
have not produced much useful information. It appears that these 
provisions either have become outdated or, with the benefit of 
hindsight, were not sufficiently relevant to the Commission's pre-
implementation review of a new agreement under the standards of the 
1984 Act. This is particularly true of Part VI, which concerns whether 
the agreement was entered into as a response to a law or other action 
by a foreign government, and Part VII, which allows the carriers to 
describe the expected benefits of the agreement if they wish. Further, 
the activity queries in Part II of the current form which, if answered 
in the affirmative, trigger the further requirements of Parts III, IV 
and VIII, do not reach rate discussion agreements between independent 
lines or between conference lines and independents, nor do they reach 
agreements to discuss costs or exchange cost information. These types 
of agreements do not directly authorize rate setting but nonetheless 
have a direct and substantial impact on rate competition, as discussed 
further below.
    Due to the limitations of the current post-implementation reporting 
requirements, monitoring of effective agreements at present depends 
primarily on other reports that are not required by regulation, but 
rather must be negotiated as to content and frequency by the 
Commission's staff with the carrier parties during the initial review 
period. Such reports produce data bearing on the carriers' concerted 
practices and operating results, such as percentage of capacity being 
utilized by shippers and average gross revenue per twenty-foot-
equivalent container unit (``TEU'') of cargo. Major agreements that 
currently are subject to negotiated reporting requirements include the 
Trans Atlantic Conference Agreement, the Transpacific Stabilization 
Agreement and the Inter-American Discussion Agreement.
    Obtaining data about the economic impact of effective agreements 
through ad hoc negotiations during the initial review period has been a 
flawed procedure. Carrier representatives have shown good will and 
substantial cooperation, but both they and the Commission's staff are 
inevitably hampered by the 1984 Act's strict time limits for agreement 
processing. Once an agreement has gone into effect, the Commission can 
always issue an order under section 15 of the 1984 Act to obtain 
information from the member carriers,\13\ but that power is better 
suited for special circumstances than for day-to-day regulation. In 
sum, neither the current practice of negotiating ad hoc reports nor the 
authority set forth in section 15 is an efficacious method of achieving 
consistent and predictable oversight of significant carrier agreements 
after they have gone into effect.
---------------------------------------------------------------------------

    \13\Section 15(a) states:
    The Commission may require any common carrier, or any officer, 
receiver, trustee, lessee, agent, or employee thereof, to file with 
it any periodical or special report or any account, record, rate, or 
charge, or memorandum of any facts and transactions appertaining to 
the business of that common carrier. The report, account, record, 
rate, charge, or memorandum shall be made under oath whenever the 
Commission so requires, and shall be furnished in the form and 
within the time prescribed by the Commission.
    46 U.S.C. app. 1714(a).
---------------------------------------------------------------------------

D. The Proposed Rule

    The Commission addresses the concerns discussed above by proposing 
new regulations that are designed to elicit more detailed and specific 
information on ocean carrier agreements in a more structured and 
comprehensive manner. The proposed rule formulates a sliding scale of 
information demands for three classes of agreements, ``Class A,'' 
``Class B'' and ``Class C.'' Where an agreement fits on the scale 
depends on the activities it authorizes and the parties' combined 
market share. These criteria are discussed further below. An agreement 
that does not authorize any of the specified activities would still be 
required by law to be filed with the Commission (unless it qualifies 
for one of the existing exemptions), but would not have any information 
form or reporting obligations.
    For an agreement fitting into one of the three covered classes, the 
proposed rule has the following important features:
     A revised information form that would accompany the 
agreement when it is first filed, requiring the submission of specific 
data on the agreement member lines' cargo carryings, revenue results 
and port service patterns before they entered into the agreement.
     If the agreement goes into effect, additional provisions 
requiring the member lines to submit reports on their operations on a 
regular and ongoing basis. Thus, the proposed rule would establish 
reporting requirements as Commission regulations that would have the 
status of agency public policy and could be enforced by Commission or 
court sanctions if necessary.
     Linkage between the information form and the subsequent 
reports. Aside from some activities that are relevant only to effective 
agreements (such as independent rate actions), the reporting 
requirements track the subject areas of the information form. This 
would enable the Commission to compare the carriers' operations and 
economic results before and after their agreement went into effect.

 1. Classification of Agreements: The Six ``Class A/B'' Activities

    ``Class A'' and ``Class B'' agreements permit the same kinds of 
activities; the difference between them is market share. An agreement 
is a ``Class A/B'' agreement if it authorizes any one of the following 
six activities:
     Ratemaking. This specifically includes not only 
traditional conference agreements, under which a group of lines agree 
upon fixed rates and practices and are bound to them under a common 
tariff, but also agreements under which non-conference lines meet among 
themselves or with a conference to discuss rates, or to discuss and 
agree upon rates on a ``non-binding'' basis. The latter types of 
agreements have become increasingly common, and their presence in a 
trade raises serious concerns about the true level of competition since 
they involve discussions and agreements about rates between non-
conference lines or between a conference and its non-conference 
competitors. These concerns are not necessarily lessened by the fact 
that any agreement reached with regard to a particular rate would not 
bind the carriers to adhere to the rate; a shipper in the trade seeking 
to negotiate a rate with a carrier would still be faced with an 
arrangement that unilaterally brings outside carriers into the rate 
negotiation process and potentially limits the shipper's ability to 
negotiate the best possible rates for its cargo.
    The ``ratemaking'' criterion is met if the agreement authorizes its 
carrier members to (1) agree on a binding basis under a common tariff, 
(2) agree on a non-binding basis, or (3) discuss any kind of basic 
linehaul rate--including port-to-port rates, independent action rates, 
overland rates, minilandbridge rates, interior point intermodal rates, 
proportional rates, through rates, joint rates, minimum rates, volume 
rates, joint time/volume rates, project rates, freight-all-kinds rates, 
volume incentive programs, service contract rates, loyalty contract 
rates, rates on commodities exempt from tariff filing, and so forth--or 
any kind of ancillary charge or allowance that affects the total 
transportation cost to the shipper. Those include surcharges, 
arbitraries, currency adjustment factors, terminal handling charges, 
pickup and delivery charges, demurrage, absorption and equalization 
allowances, and so forth.
    On the other hand, in the interest of balance and restraint, the 
proposed rule does not treat as ``ratemaking'' agreements those 
agreements that concern how rates are collected from shippers--for 
example, credit conditions and the handling of delinquent accounts--but 
do not concern the level of the rates themselves, or those agreements 
that concern charges or payments to persons other than shippers, e.g., 
inland divisions of through rates, brokerage, freight forwarder 
compensation, employment of neutral bodies for self-policing purposes, 
or development of electronic cargo information systems.
     Discussion or exchange of vessel-operating cost data. The 
Commission has received a number of agreements that do not authorize 
rate discussions or agreements of any kind, but do authorize discussion 
of or exchange of cost data among the member carriers. The antitrust 
laws have been applied against such arrangements in other industries, 
on the theory that the sharing of pricing information can have a 
significant impact on price competition.\14\ The most significant costs 
for ocean common carriers are vessel-operating costs, which the 
proposed rule defines to include wages of officers and crew, fringe 
benefits, consumable stores, supplies and equipment, maintenance and 
repair, insurance, vessel fuel, and bareboat charter hire.\15\ The 1984 
Act allows carriers to enter into agreements to discuss and exchange 
information about these costs, but the Commission believes that they 
should be subjected to the same degree of scrutiny as their close 
cousins, rate discussion agreements. On the other hand, again in the 
interest of balance and restraint, the ``costs'' criterion does not 
apply to discussion of other types of expense that are less important 
for setting rates (for example, terminal costs). In order to make this 
distinction effective, agreements seeking to authorize discussion or 
exchange of cost data must specify whether that authority includes any 
of the vessel-operating costs.
---------------------------------------------------------------------------

    \14\E.g., Sugar Institute, Inc. v. United States, 297 U.S. 553 
(1936); American Column & Lumber Co. v. United States, 257 U.S. 377 
(1921).
    \15\See 46 CFR 232.5(E)(1)(ii).
---------------------------------------------------------------------------

     Joint service, which is defined by the Commission's 
regulations as * * *

    * * * an agreement between ocean common carriers operating as a 
joint venture whereby a separate service is established which: (1) 
Holds itself out in its own distinct operating name; (2) 
independently fixes its own rates, charges, practices and conditions 
of service or chooses to participate in its operating name in 
another agreement which is duly authorized to determine and 
implement such activities; (3) independently publishes its own 
tariff or chooses to participate in its operating name in an 
otherwise established tariff; (4) issues its own bills of lading; 
and (5) acts generally as a single carrier. The common use of 
facilities may occur and there is no competition between members for 
traffic in the agreement trade; but they otherwise maintain their 
separate identities.

46 CFR 572.104(n). While the introduction of a joint service into a 
trade by outside lines may increase the level of competition and the 
range of services available for shippers, there can be negative effects 
on competition and service if the joint service is formed by lines that 
up to that point had been competing in the trade, and especially if the 
new entity would have substantial market power.
     ``Capacity management'' or ``capacity regulation''. This 
relatively new technique for dealing with overtonnaging and depressed 
rates limits the availability of vessel space to shippers but does not 
reduce the real capacity of the carriers. Therefore, such programs have 
the potential to perpetuate economic inefficiencies and unnecessary 
costs for shippers, particularly if they remain in place beyond short-
term cargo declines or surges in capacity. Agreements authorizing such 
programs have sufficiently serious ramifications under the 1984 Act to 
warrant thorough monitoring.
     Regulation or discussion of service contracts. Most 
agreements engaging in this activity are conference agreements, which 
would already be covered by the ``ratemaking'' criterion discussed 
above. However, agreements among non-conference lines may include 
authority to confer and to reach ``non-binding'' agreements on service 
contract terms, and such authority may well diminish price and service 
competition.
     Pooling, which is defined by the Commission's regulations 
as * * *

    * * * an agreement between ocean common carriers which provides 
for the division of cargo carryings, earnings, or revenue and/or 
losses between the members in accordance with an established formula 
or scheme.

46 CFR 572.104(w). While such agreements are not as common as they once 
were, they are severely anticompetitive by nature and must be closely 
regulated when they do appear.

2. Classification of Agreements: the Importance of Market Share

    The proposed rule requires any agreement that authorizes one or 
more of the six ``Class A/B'' activities to be accompanied, upon its 
initial filing, with an information form showing its parties' market 
shares both for the entire agreement and also in each of the sub-trades 
within the overall scope of the agreement, during the most recent 
calendar quarter for which complete data are available. ``Sub-trade'' 
is defined as all liner movements between each U.S. port range 
(Atlantic, Gulf and Pacific) and each foreign country within the 
overall scope of the agreement. For example, an agreement with an 
overall scope of U.S. Pacific Coast to the Far East would have sub-
trades of U.S. Pacific Coast to Japan, U.S. Pacific Coast to Taiwan, 
and so forth.
    An agreement that authorizes at least one of the six ``Class A/B'' 
activities and holds market shares of 50 percent or more in half or 
more of its sub-trades is classified as a ``Class A'' agreement under 
the proposed rule.\16\ The parties to such an agreement are required to 
submit extensive historical data on the initial information form and, 
if the agreement goes into effect, to submit detailed quarterly reports 
on their operations under the agreement. These requirements are 
discussed in detail below. An agreement that authorizes at least one of 
the six activities, but did not hold market shares of 50 percent or 
more in at least half of its sub-trades, is classified as a ``Class B'' 
agreement. It would file the same information form as a ``Class A'' 
agreement but, if it went into effect, would have significantly lighter 
reporting obligations, as also discussed below. It should be noted that 
the classification of an agreement as ``Class A'' would not be 
permanent; the agreement's ongoing reporting obligations would include 
market share data, and at the beginning of each calendar year, the 
agreement's sub-trade market shares during the most recent calendar 
quarter for which complete data are available would determine whether 
it would remain under ``Class A'' reporting obligations for the 
upcoming year.
---------------------------------------------------------------------------

    \16\For example, if an agreement with ten sub-trades reported 
that it had market shares of 50 percent or more in five or more sub-
trades, it would be a ``Class A'' agreement. By using that 
methodology rather than average market share, the proposed rule 
seeks to focus on those agreements with significant market power 
spread through at least half of their total geographic scope.
---------------------------------------------------------------------------

    Market share measures an agreement's potential for abuse of 
economic power and unreasonable or discriminatory price and service 
practices. The break point of 50 percent in at least half of the sub-
trades was chosen in the belief that an agreement that is a relatively 
minor presence in a majority of its sub-trades--that is, a ``Class B'' 
agreement--is unlikely to be able to impose unreasonable or unfair 
rates or practices regardless of what it authorizes its parties to do, 
and does not require extensive gathering of information about its 
operation. While commenters on the proposed rule are free to argue for 
a different break point, it should be noted that an important feature 
of the proposed rule is that the market share calculation for rate 
discussion agreements and ``non-binding'' rate agreements adds the 
market shares held by the non-conference lines to those held by the 
conference lines for purposes of determining whether such an agreement 
should be classified as ``Class A'' or ``Class B''.
    The new focus on sub-trades results from the Commission's belief, 
resulting from the agency's experience over the ten years since passage 
of the 1984 Act, that economic analysis of an agreement is facilitated 
and acquires depth of understanding if it is done according to the 
agreement's smaller components. This is particularly true since, as 
noted above, the Commission is now seeing more and more agreements that 
have multi-coast or even multi-continent geographic ranges. Further, in 
some of the more geographically fragmented parts of the world, such as 
the Far East and the South Pacific, sub-trades can constitute separate 
and cloistered markets. Agreements that serve a comparatively unified 
landmass, such as Europe, might still implement practices that differ 
from area to area within the general market. These factors all argue 
for information-gathering systems that acquire data relevant to an 
agreement's sub-trades, rather than only the market defined by the 
agreement's total scope.\17\ Accordingly, the information (besides 
market share) sought by the proposed rule for ``Class A'' and ``Class 
B'' agreements is, for the most part, concerned with the agreements' 
sub-trades.
---------------------------------------------------------------------------

    \17\This approach also allows for the possibility that 
Commission or court sanctions against an agreement could prevent an 
agreement only from operating in a particular sub-trade, rather than 
from operating at all.
---------------------------------------------------------------------------

    It should be stated at this juncture that the proposed rule 
includes a procedure whereby the Commission may grant a waiver from 
full compliance with the rule's requirements, if a group of carriers 
applies for and justifies such relief. A waiver could apply to any part 
of the rule, including the requirement that data be reported by 
individual country sub-trades. For example, an agreement might be 
permitted to report by a multi-country region rather than by individual 
countries, if it could show that the major moving commodities moving 
into or out of a particular group of countries did not vary much 
country by country, and so regional data would provide a reasonably 
accurate and complete description of the trades with those countries. 
The waiver procedure could also be used to allow conferences made up of 
relatively small carriers serving a relatively small trade to submit 
post-implementation monitoring reports at wider intervals (for example, 
once a year). The waiver provisions specifically state that the 
Commission will take into account the presence or absence of shipper 
complaints in considering an application for a waiver.

3. ``Class A'' Agreements Under the Proposed Rule

    The information form for a ``Class A'' agreement begins by 
requiring a listing of all effective agreements covering all or part of 
the geographic scope of the proposed agreement, whose parties include 
one or more of the parties to the proposed agreement. This provision is 
designed to ensure that the Commission has accurate information 
regarding the recent trend toward networks of agreements connected by 
common parties. Next, the form requires an identification of all 
``Class A/B'' activities that the agreement seeks to authorize.
    After obtaining the market share data discussed above, the 
information form then inquires into the recent agreement-wide cargo 
carryings and revenue results of each of the carriers that would now 
join together into the agreement. Otherwise, the information form 
focuses primarily on the state of affairs in each of the agreement's 
sub-trades before the agreement was filed. This is done by reference to 
the major commodities moving to and from the United States in each sub-
trade.
    Using the actual commodities moving under an agreement as the chief 
frame of regulatory reference is an important feature of the proposed 
rule, and represents a significant departure from current practice. At 
present, the information obtained by the Commission on carrier rate and 
service practices via the monitoring reports submitted for certain 
major agreements does not describe the cargo being transported, and is 
stated in the aggregate (for example, total number of service contracts 
executed) or as broad averages (for example, average revenue per TEU of 
all cargoes). In contrast, the proposed information form, while 
continuing to require the submission of aggregate data in certain 
areas, mainly requires carriers to identify the commodities that have 
made up the bulk of their cargo in each sub-trade and then to submit 
data on the price and service practices they have applied to each of 
those commodities. With this information in hand, the Commission will 
have a reasonably comprehensive summary of pre-agreement rate and 
service practices in each sub-trade covered by the new agreement, as 
well as in the agreement's entire geographic scope. If the agreement is 
permitted to go into effect, that summary will serve as a baseline for 
analyzing the corresponding information later obtained through the 
post-implementation reports.
    In sum, the proposed rule both changes the orientation of agreement 
review to that of the cargo being affected, and also calls for more 
refined and differentiated data from the carriers. These reforms should 
provide the Commission with improved and more useful indicators of the 
potential or actual impact of an agreement on the needs of shippers for 
good service at reasonable rates, and in particular whether the 
agreement might cause or has caused unfair or unreasonable conditions 
for specific commodities, classes of shippers, or geographic areas. It 
should be noted that, while the proposed rule is constructed around the 
major moving commodities in each sub-trade, nothing prevents the 
Commission from taking appropriate action if it receives information 
that an agreement is harming the fair and reasonable transportation of 
a relatively minor commodity.
    The information form also inquires into the effect of the agreement 
on ports within its geographic range; it should be noted that it is 
unnecessary to segregate data on port calls by sub- trades. In 
addition, the information form imposes special requirements on any 
``Class A'' agreement that authorizes ``capacity management'' or 
``capacity regulation.'' Because such programs are designed to address 
problems of excess capacity, the information form inquires into each 
agreement member line's recent capacity utilization experience within 
the geographic service area to be covered by the proposed program and 
its initial capacity level under the program. These data are to be 
provided within a ``geographic service area'' because a capacity 
management or regulation program that is part of a larger agreement can 
be designed to cover less than the entire geographic scope of the 
agreement. This section of the form also requires the submission of any 
reports or studies dealing with capacity utilization and related 
topics, but only to the extent that such documents were both recently 
prepared and shared among the agreement lines, and thus may have 
influenced the formation of the capacity management program.
    If the new agreement were permitted to go into effect, then the 
reporting requirements for ``Class A'' agreements would become 
applicable. Changes in membership in other agreements would be 
reported, and the parties' market shares would continue to be tracked 
by entire agreement geographic scope and by sub-trade. Otherwise, the 
reporting requirements would mirror the information form in order to 
provide ``before and after'' depictions of the trade, with some 
additional provisions that can apply only to an effective agreement. 
For example, the special provisions of the information form applicable 
to a capacity management program would be expanded to carefully monitor 
the actual operation of the program. In addition, a new section 
entitled ``Independent Rate Actions'' would apply to ``Class A'' 
conference agreements and would require:

    For each sub-trade within the scope of the agreement, and for 
each of the leading commodities * * *, and for each party, state the 
number of independent rate actions taken during the calendar quarter 
that were applicable to that commodity moving in that sub-trade, and 
the total number of TEUs of that commodity covered by the 
independent actions. Also, state the name of each shipper for whom 
an independent rate was taken on that commodity during the calendar 
quarter, and state whether the shipper was a beneficial cargo owner, 
a non-vessel-operating common carrier, or a shippers' association.

This provision would allow the Commission to monitor the level of 
independent rate activity (or the lack of such activity) on specific 
commodities, and to take appropriate action immediately if it appears 
that certain commodities or types of shipper are receiving more rigid 
rate treatment than others.

4. ``Class B'' agreements under the proposed rule

    As already stated, the proposed rule prescribes the same 
information form for ``Class B'' agreements as for ``Class A'' 
agreements. This establishes the same pre-agreement baseline as is done 
for ``Class A'' agreements. However, assuming the ``Class B'' agreement 
were allowed to go into effect, the reporting requirements are limited 
to quarterly updates on market share, agreement-wide cargo and revenue 
results, membership in other agreements, and changes in port service. 
The agreement would be monitored by the Commission, particularly the 
sub-trades where the agreement holds more than 50 percent of the 
market, and if there were indications of possible rate or service 
problems in a sub- trade, further information would be obtained--by 
either informal negotiation or a section 15 order--and compared against 
the original baseline data to determine whether further action was 
necessary.

5. ``Class C'' Agreements Under the Proposed Rule

    An agreement that authorizes service rationalization, such as space 
charters, coordination of service frequency and port rotations, and 
coordination of the size and capacity of vessels to be deployed by the 
parties, but does not authorize ``capacity management'' or ``capacity 
regulation'' (or any of the other five ``Class A/B'' activities), is a 
``Class C'' agreement. Although such agreements have rarely presented 
serious regulatory concerns, some oversight is necessitated by section 
6(g)'s admonition against agreements that cause unreasonable reductions 
in service. For a ``Class C'' agreement, the proposed rule provides for 
information form and reporting requirements limited to membership in 
other agreements and the level of service at the ports within the 
agreement's overall scope. Those provisions should provide the 
Commission with adequate warnings in case service rationalization 
reaches the point where a port, and the shippers which use that port, 
begin to suffer.

6. Other Amendments

    The proposed rule contains a number of other amendments to the 
Commission's existing regulations in 46 CFR part 572. For the most 
part, these amendments are not substantive and are designed to make the 
existing regulations consistent with the proposed rule, to eliminate 
certain outdated regulations, or to reorganize certain subparts of the 
existing regulations. They include the following:
     In Sec. 572.104, new definitions are added for such terms 
as ``capacity management or capacity regulation agreements,'' 
``monitoring report,'' ``rate'' and ``vessel-operating costs.'' In 
addition, the present definition of a joint service is revised to 
eliminate the reference to ``consortium,'' which is a term not defined 
by the 1984 Act and could include a number of commercial relationships 
besides joint services.
     In subpart C, the exemptions of certain kinds of 
agreements are revised to eliminate unnecessary references to 
``Information Form'' requirements. These changes have no effect on the 
exemptions themselves.
     Subpart D is revised to include existing subpart E, so 
that all regulations governing the content and organization of filed 
agreements will be contained within one subpart. Also, proposed 
Sec. 572.401(a)(2) states that five copies of the new Information Form 
must be filed along with a new agreement; this is the minimum number of 
copies that will be needed by the Commission in order to review and 
process an agreement. Subparagraph (h) of present Sec. 572.402 is 
deleted as no longer necessary. Also, the proposed rule eliminates the 
requirements in current Sec. 572.403(a)(2)-(3) that Information Forms 
must accompany ``significant modifications'' to effective agreements; 
they will not longer be necessary since the agreements addressed by 
those regulations will in all likelihood be subject to ongoing 
reporting requirements. Also, the standards presently set forth in 
Sec. 572.404 for granting a waiver are revised to remove the 
requirement that the applicant show that ``beneficial results'' will 
occur if the waiver is granted, and instead to require that the 
applicant show that granting the waiver will not impair effective 
regulation by the Commission, consistent with the language of section 
16 of the 1984 Act, 46 U.S.C. app. 1715. Similar language is used in 
the proposed rule's other waiver provisions in revised subparts E and 
G.
     Section 572.608(b)(2), which sets forth an exception to 
the confidentiality of submitted material, is revised to more closely 
reflect the language of section 6(j) of the 1984 Act, 46 U.S.C. app. 
1705(j). Similar language is used in the proposed rule's provision on 
confidentiality in revised subpart G.

7. Carrier Costs and Profits

    The Commission's obligation under section 6(g) of the 1984 Act to 
police against agreements that may cause, or have caused, unreasonable 
increases in transportation rates, and the 1984 Act's purpose of 
providing an efficient and economic transportation system in the ocean 
commerce of the United States, 46 U.S.C. app. 1701(2), raise the 
question whether these policies can or should be pursued by monitoring 
the costs and/or profitability of the carriers to a particular 
agreement. The proposed rule does not include provisions on carrier 
costs or profitability, but the Commission wishes to solicit comments 
on the lawfulness and feasibility of such provisions. Commenters should 
address whether such provisions would be inconsistent with Congress's 
directive that ``[t]he determination whether an agreement is likely to 
produce an `unreasonable increase in the price of transportation' does 
not authorize the FMC to engage in the type of ratemaking analysis 
undertaken by regulators of public utilities or as applied in the 
domestic offshore trades.'' H.R. Rep. No. 600, 98th Cong., 2d Sess. 35 
(1984). That aside, commenters should also address how such provisions 
might be structured, particularly given the proposed rule's focus on 
individual country sub-trades; whether costs and/or profitability under 
a particular agreement can be measured accurately, particularly if the 
carriers to the agreement have other operations elsewhere; and whether 
arguments that an agreement is necessary to control costs or to improve 
profits are better explored in the context of an investigation of a 
particular agreement, rather than made the subject of regulations 
applicable to broad classes of agreements.

8. Effective Agreements Under the Proposed Rule

    The Commission's present intentions regarding the treatment of 
effective agreements under the regulations proposed in this proceeding 
are as follows. Upon publication of a final rule, the regulations would 
become effective immediately for new agreements, which thus would be 
required to comply with the revised Information Form provisions. 
However, the proper application of the new regulations to agreements 
already in effect could not be determined immediately, because the 
market share data necessary to separate Class A/B agreements into Class 
A and Class B will not be readily available.
    Accordingly, the Commission intends to stay application of the 
final rule to effective agreements. The Commission then will direct all 
existing Class A/B agreements to submit reports under section 15 of the 
1984 Act that would include all the information demanded of new Class 
A/B agreements under the Information Form regulations, including market 
share data. Upon review of these reports, those agreements will be 
appropriately classified into Class A or Class B, the stay of the final 
rule will be lifted, and the orderly filing of the regular monitoring 
reports (including those applicable to Class C agreements) will begin. 
The initial section 15 reports will provide baselines (albeit not pre- 
implementation baselines) against which the subsequent reports will be 
compared as part of the continuous monitoring of each agreement. For 
those agreements already in effect that are subject to reporting 
requirements negotiated by the Commission's staff, those requirements 
will be superseded by the final rule.
    The Federal Maritime Commission certifies, pursuant to section 
605(b) of the Regulatory Flexibility Act, 5 U.S.C. 605(b), that this 
rule will not have a significant economic impact on a substantial 
number of small entities, including small businesses, small 
organizational units and small government jurisdictions. The ocean 
carriers affected by the rule are not ``small organizations'' or 
``small governmental jurisdictions'' as defined by 5 U.S.C. 601 and, as 
large and predominantly foreign-based enterprises, are not ``small 
business concerns'' as defined by 15 U.S.C. 632 and regulations issued 
thereunder.
    The collection of information requirements contained in this 
proposed rule have been submitted to the Office of Management and 
Budget for review under the provisions of the Paperwork Reduction Act 
of 1980 (Public Law 96-511), as amended. The incremental public 
reporting burden for this collection of information is estimated to 
range from an average of 46 hours to 144 hours per response, including 
the time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. Send comments regarding this burden 
estimate, including suggestions for reducing this burden, to Bruce A. 
Dombrowski, Deputy Managing Director, Federal Maritime Commission, 
Washington, DC 20573, and to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503.

List of Subjects in 46 CFR Part 572

    Administrative practice and procedure; maritime carriers; reporting 
and recordkeeping requirements.

    Therefore, pursuant to 5 U.S.C. 553 and sections 4, 5, 6, 10, 15 
and 17 of the Shipping Act of 1984, 46 U.S.C. app. 1703, 1704, 1705, 
1709, 1714 and 1716, Part 572 of Title 46, Code of Federal Regulations, 
is proposed to be amended as follows:

PART 572--AGREEMENTS BY OCEAN COMMON CARRIERS AND OTHER PERSONS 
SUBJECT TO THE SHIPPING ACT OF 1984

    1. The authority citation for Part 572 continues to read as 
follows:

    Authority: 5 U.S.C. 553, 46 U.S.C. app. 1701-1707, 1709-1710, 
1712 and 1714-1717.

    2. In section 572.103, the first sentence of paragraph (a), the 
first two sentences of paragraph (b), the first sentence of paragraph 
(c), and the second sentence of paragraph (d) are revised; in paragraph 
(e), the third sentence is revised, the last sentence is revised, and a 
new sentence is added as follows:


Sec. 572.103  Policies.

    (a) The Act requires that agreements be processed and reviewed, 
upon their initial filing, according to strict statutory deadlines. * * 
*
    (b) The Act requires that agreements be reviewed, upon their 
initial filing, to ensure compliance with all applicable provisions of 
the Act and empowers the Commission to obtain information to conduct 
that review. This part identifies those classes of agreements which 
must be accompanied by information submissions when they are first 
filed, and sets forth the kind of information for each class of 
agreement which the Commission believes relevant to that review. * * *
    (c) In order to further the goal of expedited processing and review 
of agreements upon their initial filing, agreements are required to 
meet certain minimum requirements as to form. * * *
    (d) * * * In order to minimize delay in implementation of routine 
agreements and to avoid the private and public cost of unnecessary 
regulation, the Commission is exempting certain classes of agreements 
from the filing requirements of this part.
    (e) * * * This, however, requires greater monitoring of agreements 
after they have become effective, to assure continued compliance with 
all applicable provisions of the Act. * * * Only that information which 
is necessary to assure that Commission monitoring responsibilities will 
be fulfilled is requested. It is the policy of the Commission to keep 
the costs of regulation to a minimum and at the same time obtain 
information needed to fulfill its statutory responsibility.
* * * * *
    3. In section 572.104, paragraphs (e) through (r) are redesignated 
(f) through (s); (s) through (x) are redesignated (u) through (z); (y) 
is redesignated (cc); (z) through (cc) are redesignated (dd) through 
(gg); (dd) is redesignated (hh); and (ee) and (ff) are redesignated 
(ii) and (jj); new paragraphs (e), (t), (aa), (bb), and (kk) are added; 
in newly redesignated (g), the last sentence is revised; newly 
redesignated (j) is revised; the heading of newly redesignated (o) is 
revised; newly redesignated (cc) is revised; and in newly redesignated 
(hh), the last sentence is revised to read as follows:


Sec. 572.104  Definitions.

* * * * *
    (e) Capacity management or capacity regulation agreement means an 
agreement between two or more ocean common carriers which authorizes 
withholding some part of the capacity of the parties' vessels from a 
specified transportation market, without reducing the real capacity of 
those vessels. The term does not include sailing agreements or space 
charter agreements.
* * * * *
    (g) Conference agreement * * * The term does not include joint 
service, pooling, sailing, space charter, or transshipment agreements.
* * * * *
    (j) Effective agreement means an agreement approved pursuant to the 
Shipping Act, 1916, or effective pursuant to an exemption under that 
act, or effective under the Act.
* * * * *
    (o) Joint service agreement * * *
* * * * *
    (t) Monitoring report means the report containing economic 
information which must be filed at defined intervals with regard to 
certain kinds of agreements that are effective under the Act.
* * * * *
    (aa) Rate, for purposes of this part, includes both the basic price 
paid by a shipper to an ocean common carrier for a specified level of 
transportation service for a stated quantity of a particular commodity, 
from origin to destination, on or after a stated effective date or 
within a defined time frame, and also any accessorial charges or 
allowances that increase or decrease the total transportation cost to 
the shipper.
    (bb) Rate agreement means an agreement between ocean common 
carriers which authorizes agreement upon, on either a binding basis 
under a common tariff or on a non-binding basis, or discussion of, any 
kind of rate.
    (cc) Sailing agreement means an agreement between ocean common 
carriers which provides for the rationalization of service by 
establishing a schedule of ports which each carrier will serve, the 
frequency of each carrier's calls at those ports, and/or the size and 
capacity of the vessels to be deployed by the parties. The term does 
not include joint service agreements, or capacity management or 
capacity regulation agreements.
* * * * *
    (hh) Space charter agreement * * * The arrangement may include 
arrangements for equipment interchange and receipt/delivery of cargo, 
but may not include capacity management or capacity regulation as used 
in this subpart.
* * * * *
    (kk) Vessel-operating costs means any of the following expenses 
incurred by an ocean common carrier: Salaries and wages of officers and 
unlicensed crew, including relief crews and others regularly employed 
aboard the vessel; fringe benefits; expenses associated with consumable 
stores, supplies and equipment; vessel fuel and incidental costs; 
vessel maintenance and repair expense; hull and machinery insurance 
costs; protection and indemnity insurance costs; costs for other marine 
risk insurance not properly chargeable to hull and machinery insurance 
or to protection and indemnity insurance accounts; and bareboat charter 
hire expenses.


Sec. 572.30  [Amended]

    4. In section 572.301, paragraph (b) is amended by removing the 
words ``Information Form'' and the comma immediately thereafter.


Sec. 572.302  [Amended]

    5. In section 572.302, paragraph (b) is amended by removing the 
words ``Information Form'' and the comma immediately thereafter.


Sec. 572.303  [Amended]

    6. In section 572.303, paragraph (b) is amended by removing the 
words ``and Information Form.''


Sec. 572.304  [Amended]

    7. In section 572.304, paragraph (b) is amended by removing the 
words ``and Information Form.''


Sec. 572.305   [Amended]

    8. In section 572.305, paragraph (b) is amended by removing the 
words ``and Information Form.''


Sec. 572.306  [Amended]

    9. In section 572.306, paragraph (b) is amended by removing the 
words ``and Information Form.''


Sec. 572.308  [Amended]

    10. In section 572.308, paragraph (b) is amended by removing the 
words ``and Information Form.''


Sec. 572.309  [Amended]

    11. In section 572.309, paragraph (a) introductory text, is amended 
by removing the words ``Information Form'' and the comma immediately 
thereafter.
    12. In subpart D, the heading thereof is revised, as follows:

Subpart D--Filing of Agreements

    13. In section 572.401, the heading thereof and paragraphs (a)(2), 
(c), (d) and (e) are revised to read as follows:


Sec. 572.401  General requirements.

    (a) * * *
    (2) Where required by this part, an original and five copies of the 
completed Information Form referenced at subpart E of this part; and
* * * * *
    (c) Any agreement which does not meet the filing requirements of 
this section, including any applicable Information Form requirements, 
shall be rejected in accordance with Sec. 572.601.
    (d) Assessment agreements shall be filed and shall be effective 
upon filing.
    (e) Parties to agreements with expiration dates shall file any 
modification seeking renewal for a specific term or elimination of a 
termination date in sufficient time to accommodate the waiting period 
required under the Act.
    14. In section 572.402, paragraph (e)(2) is amended by changing the 
references to ``Secs. 572.501 and 572.502'' to ``Secs. 572.403 and 
572.404,'' paragraph (f) is amended by changing the references to 
``Secs. 572.501(b)(3), 572.501(b)(6) and 572.502(a)(1)'' to 
``Secs. 572.403(b)(3), 572.403(b)(6) and 572.404(a)(1),'' and paragraph 
(h) is removed.
    15. Section 572.405 is removed and section 572.403 is redesignated 
572.405 with paragraphs (a) and (g)(3) revised as follows, and section 
572.501 of subpart E is redesignated 572.403 with paragraphs (a) and 
(b) amended by changing the references to ``Sec. 572.502'' to 
``Sec. 572.404'':


Sec. 572.405  Modifications of agreements.

* * * * *
    (a) Agreement modifications shall be: filed in accordance with the 
provisions of 572.401 and in the format specified in 572.402; with the 
content and organization specified in 572.403 and 572.404 and in 
accordance with this section.
* * * * *
    (g) * * *
* * * * *
    (3) The filing of a republished agreement, as described in 
paragraph (g)(2) of this section, may be accomplished by filing only an 
executed original true copy. No Information Form requirements apply to 
the filing of a republished agreement.
    16. Section 572.406 is redesignated 572.407 and section 572.404 is 
redesignated 572.406 and revised as follows, and section 572.502 of 
subpart E is redesignated 572.404 with paragraphs (a) and (b)(1) 
amended by changing the reference to ``572.501'' to ``572.403'':


Sec. 572.406  Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive the 
requirements of Secs. 572.401, 572.402, 572.403, 572.404 and 572.405.
    (b) Requests for such a waiver shall be submitted in advance of the 
filing of the agreement to which the requested waiver would apply and 
shall state: (1) the specific provisions from which relief is sought; 
(2) the special circumstances requiring the requested relief; and (3) 
why granting the requested waiver will not substantially impair 
effective regulation of the agreement.
    17. The heading of subpart E is removed and new subpart E is added, 
as follows:

Subpart E--Information Form Requirements


Sec. 572.501   General requirements.

    (a) Certain agreements must be accompanied, upon their initial 
filing, with an Information Form setting forth information and data on 
the agreement member lines' prior cargo carryings, revenue results and 
port service patterns.
    (b) The filing parties to an agreement subject to this subpart 
shall complete and submit an original and five copies of the applicable 
Information Form at the time the agreement is filed. Copies of the 
applicable Form may be obtained at the Office of the Secretary or by 
writing to the Secretary of the Commission.
    (c) A complete response in accordance with the instructions on the 
Information Form shall be supplied to each item. Whenever the party 
answering a particular part is unable to supply a complete response, 
that party shall provide either estimated data (with an explanation of 
why precise data are not available) or a detailed statement of reasons 
for noncompliance and the efforts made to obtain the required 
information.
    (d) The Information Form for a particular agreement may be 
supplemented with any other information or documentary material.
    (e) The Information Form and any additional information submitted 
in conjunction with the filing of a particular agreement shall not be 
disclosed except as provided in Sec. 572.608.


Sec. 572.502   Subject agreements.

    Agreements subject to this subpart are divided into two classes, 
Class A/B and Class C. When used in this subpart:
    (a) Class A/B agreement means an agreement that is one or more of 
the following:
    (1) A rate agreement as defined in Sec. 572.104(aa) and 
Sec. 572.104(bb);
    (2) A joint service agreement as defined in Sec. 572.104(o);
    (3) A pooling agreement as defined in Sec. 572.104(y);
    (4) A capacity management or capacity regulation agreement as 
defined in Sec. 572.104(e);
    (5) An agreement authorizing discussion or exchange of data on 
vessel-operating costs as defined in Sec. 572.104(kk); or
    (6) An agreement authorizing regulation or discussion of service 
contracts as defined in Sec. 572.104(dd).
    (b) Class C agreement means an agreement that is one or more of the 
following:
    (1) A sailing agreement as defined in Sec. 572.104(cc); or
    (2) A space charter agreement as defined in Sec. 572.104(hh).


Sec. 572.503   Information form for Class A/B agreements.

    This section sets forth the Information Form for Class A/B 
agreements, with accompanying instructions that are intended to 
facilitate the completion of the Form. The instructions should be read 
in conjunction with the Shipping Act of 1984 and with this part 572.

Information Form for Class A/B Agreements

Instructions

    All agreements between ocean common carriers that are Class A/B 
agreements as defined in 46 CFR 572.502(a) must be accompanied by a 
completed Information Form for such agreements. A complete response 
must be supplied to each part of the Form. Where the party answering 
a particular part is unable to supply a complete response, that 
party shall provide either estimated data (with an explanation of 
why precise data are not available) or a detailed statement of 
reasons for noncompliance and the efforts made to obtain the 
required information. All sources must be identified.

Part I

    Part I requires the filing party to state the full name of the 
agreement as also provided under 46 CFR 572.403.

Part II

    Part II requires the filing party to list all effective 
agreements covering all or part of the geographic scope of the filed 
agreement, whose parties include one or more of the parties to the 
filed agreement.

Part III(A)

    Part III(A) requires the filing party to indicate whether the 
agreement authorizes the parties to collectively fix rates under a 
common tariff, to agree upon rates on a non-binding basis, or to 
discuss rates. Such rate activities may be authorized by a 
conference agreement, an interconference agreement, an agreement 
among one or more conferences and one or more non-conference ocean 
common carriers, or an agreement among two or more non-conference 
ocean common carriers.

Part III(B)

    Part III(B) requires the filing party to indicate whether the 
agreement authorizes the parties to establish a joint service.

Part III(C)

    Part III(C) requires the filing party to indicate whether the 
agreement authorizes the parties to pool cargo or revenues.

Part III(D)

    Part III(D) requires the filing party to indicate whether the 
agreement authorizes the parties to establish capacity management or 
capacity regulation programs, whereby some part of the capacity of 
the parties' vessels is withheld from a specified transportation 
market.

Part III(E)

    Part III(E) requires the filing party to indicate whether the 
agreement authorizes the parties to discuss or exchange data on 
vessel-operating costs, which include wages of officers and crew; 
fringe benefits; consumable stores; supplies and equipment; 
maintenance and repair; insurance; vessel fuel; and charter hire.

Part III(F)

    Part III(F) requires the filing party to indicate whether the 
agreement authorizes the parties to regulate or discuss service 
contracts.

Part IV

    Part IV requires the filing party to provide the market shares 
of all liner operators within the entire geographic scope of the 
agreement and in each sub-trade within the scope of the agreement, 
during the most recent calendar quarter for which complete data are 
available. Sub-trade is defined as the scope of all liner movements 
between each U.S. port range within the scope of the agreement and 
each foreign country within the scope of the agreement. Where the 
agreement covers both U.S. inbound and outbound liner movements, 
inbound and outbound market shares should be shown separately.
    U.S. port ranges are defined as follows:
    Atlantic--Includes ports along the eastern seaboard from the 
northern boundary of Maine to, but not including, Key West, Florida. 
Also includes all ports bordering upon the Great Lakes and their 
connecting waterways as well as all ports in the State of New York 
on the St. Lawrence River.
    Gulf--Includes all ports along the Gulf of Mexico from Key West, 
Florida, to Brownsville, Texas, inclusive. Also includes all ports 
in Puerto Rico and the U.S. Virgin Islands.
    Pacific--Includes all ports in the States of Alaska, Hawaii, 
California, Oregon and Washington. Also includes all ports in Guam, 
American Samoa and Saipan.
    The formula for calculating market share (in either the entire 
agreement scope or in a sub-trade) is as follows:
    The total amount of cargo carried on each liner operator's liner 
vessels (in either the entire agreement scope or in the particular 
sub-trade) during the most recent calendar quarter for which 
complete data are available, divided by the total amount of cargo 
carried on all liner vessels (in either the entire agreement scope 
or in the particular sub-trade) during the same calendar quarter, 
which quotient is multiplied by 100. The calendar quarter used must 
be clearly identified. The market shares held by non- agreement 
lines as well as by agreement lines must be provided, stated 
separately in the format indicated.
    The amount of cargo is to be measured in TEUs. Liner movements 
is the carriage of liner cargo by liner operators. Liner cargoes are 
cargoes carried on liner vessels in a liner service. A liner 
operator is a vessel-operating common carrier engaged in liner 
service. Liner vessels are those vessels used in a liner service. 
Liner service refers to a definite, advertised schedule of sailings 
at regular intervals. All these definitions, terms and descriptions 
apply only for purposes of the Information Form.

Part V

    Part V requires the filing party to state, for each agreement 
member line that served all or any part of the geographic area 
covered by the agreement during all or any part of the most recent 
12-month period for which complete data are available, each line's 
total cargo carryings (measured in TEUs) within the geographic area, 
total revenues within the geographic area, and average revenue per 
TEU. The Information Form specifies the format in which the 
information is to be reported. Where the agreement covers both U.S. 
inbound and outbound liner movements, inbound and outbound data 
should be stated separately.

Part VI

    Part VI requires the filing party to identify, for each sub-
trade within the scope of the agreement, the top 10 commodities by 
cumulative TEUs carried by all the parties during the same 12-month 
period used in responding to Part V, or the commodities accounting 
for 50 percent of the cumulative TEUs carried by all the parties 
during the 12-month period, whichever is greater. Where the 
agreement covers both U.S. inbound and outbound liner movements, 
inbound and outbound sub-trades should be stated separately.

Part VII

    Part VII addresses how each of the parties to the proposed 
agreement has carried each major commodity in each sub-trade, and 
the revenue results experienced by each party from its carriage of 
each commodity. The Information Form specifies the format in which 
the information is to be reported.

Part VIII

    Part VIII is concerned with the levels of service at each port 
within the entire geographic scope of the agreement. The filing 
party is required to provide the number of calls at each port by 
each of the agreement lines over the 12-month period used in 
responding to Parts V, VI and VII, and also to indicate any change 
in the nature or type of service to be effected immediately by the 
agreement.

Part IX

    Part IX is required to be completed only where the agreement 
authorizes capacity management or capacity regulation as defined by 
46 CFR 572.104(e). The filing party is required to state the total 
TEU capacity provided by each party in the geographic service area 
covered by the capacity management or capacity regulation program 
during the same 12-month period used in responding to Parts V, VI, 
VII and VIII, the number of those TEUs that were utilized, and each 
party's initial capacity commitment or allocation under the program. 
Where the capacity management or capacity regulation program covers 
both U.S. inbound and outbound liner movements, inbound and outbound 
data should be stated separately. Copies of specified kinds of 
reports must also be provided.

Part X(A)

    Part X(A) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding the Information Form and any 
information provided therein.

Part X(B)

    Part X(B) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding a request for additional 
information or documents.

Part X(C)

    Part X(C) requires that the filing party sign the Information 
Form and certify that the information in the Form and all 
attachments and appendices are, to the best of the filing party's 
knowledge, true, correct and complete. The filing party is also 
required to indicate his or her relationship with the parties to the 
agreement.

Federal Maritime Commission

Information Form For Certain Agreements By Or Among Ocean Common 
Carriers

Agreement Number-------------------------------------------------------
(Assigned by FMC)

Part I Agreement Name:-------------------------------------------------

Part II Other Agreements

    List all effective agreements covering all or part of the 
geographic scope of this agreement, whose parties include one or 
more of the parties to this agreement.

Part III Agreement Type

    (A) Rate Agreements
    Does the agreement authorize the parties to collectively fix 
rates on a binding basis under a common tariff, or to agree upon 
rates on a non-binding basis, or to discuss rates?

Yes {time}   No {time} 

    (B) Joint Service Agreements
    Does the agreement authorize the parties to establish a joint 
service?

Yes {time}     No {time} 

    (C) Pooling Agreements
    Does the agreement authorize the parties to pool cargoes or 
revenues?

Yes {time}     No {time} 

    (D) Capacity Management or Capacity Regulation
    Does the agreement authorize the parties to establish capacity 
management or capacity regulation programs?

Yes {time}     No {time} 

    (E) Vessel-Operating Costs
    Does the agreement authorize the parties to discuss or exchange 
data on vessel-operating costs?

Yes {time}     No {time} 

    (F) Service Contracts
    Does the agreement authorize the parties to discuss or agree on 
service contract terms and conditions, on either a binding or non-
binding basis?

Yes {time}     No {time} 

    Parts IV, V, VI, VII, VIII and X must be completed for all 
agreements. If Part III(D) is answered ``Yes,'' complete Part IX as 
well.

Part IV Market Share Information

    Provide the market shares of all liner operators within the 
entire scope of the agreement and within each agreement sub-trade 
during the most recent calendar quarter for which complete data are 
available. The information should be provided in the format below:

Market Share Report for (Indicate Either Entire Agreement Scope, or Sub-
                         trade Name) Time Period                        
------------------------------------------------------------------------
                                                          TEUs   Percent
------------------------------------------------------------------------
                Agreement Market Share                                  
                                                                        
Line A................................................    X,XXX       XX
Line B................................................    X,XXX       XX
Line C................................................    X,XXX       XX
                                                       -----------------
      Total Agreement Market Share....................    X,XXX       XX
                                                                        
              Non-Agreement Market Share                                
                                                                        
Line X................................................    X,XXX       XX
Line Y................................................    X,XXX       XX
Line Z................................................    X,XXX       XX
                                                       -----------------
      Total Non-Agreement Market Share................    X,XXX       XX
                                                       =================
      Total Market....................................    X,XXX      100
------------------------------------------------------------------------

Part V Cargo and Revenue Results Agreement-Wide

    For each party that served all or any part of the geographic 
area covered by the entire agreement during all or any part of the 
most recent 12-month period for which complete data are available, 
state total cargo carryings in TEUs within the entire geographic 
area, total revenues within the geographic area, and average revenue 
per TEU. The same 12-month period must be used for each party. The 
information should be provided in the format below:

                               Time Period                              
------------------------------------------------------------------------
                                                                 Avg.   
                Carrier                   Total      Total      revenue 
                                           TEUs    revenues     per TEU 
------------------------------------------------------------------------
A......................................  .......  $           $         
B......................................  .......  $           $         
C......................................  .......  $           $         
Etc....................................  .......  $           $         
------------------------------------------------------------------------

Part VI Leading Commodities

    For each sub-trade within the scope of the agreement, list the 
top 10 commodities by cumulative TEUs carried by all the parties 
during the same time period used in responding to Part V, or list 
the commodities accounting for 50 percent of the cumulative TEUs 
carried by all the parties during the same 12-month period, 
whichever list is longer. The same 12-month period must be used in 
reporting for each sub-trade. The information should be provided in 
the format below:

Time Period (Same as That Used in Responding to Part V)

I. Sub-trade
    A. First leading commodity
    B. Second leading commodity
    C. Third leading commodity etc.
II. Sub-trade
    A. First leading commodity etc.

Part VII Cargo and Revenue Results by Sub-Trade

    For the same time period used in responding to Parts V and VI, 
and for each sub-trade within the scope of the agreement, and for 
each of the leading commodities listed for each sub-trade in the 
response to Part VI, and for each party, provide the following 
information:
    (1) Total TEUs carried port-to-port under tariff rates, and 
average gross revenue per TEU.
    (2) Total TEUs carried port-to-port under service contracts, and 
average gross revenue per TEU.
    (3) Total TEUs carried by intermodal service under tariff rates, 
and average gross revenue per TEU.
    (4) Total TEUs carried by intermodal service under service 
contracts, and average gross revenue per TEU.
    The information should be provided in the format below:

Time Period (Same as That Used in Responding to Part V)

I. Sub-trade A
    A. First leading commodity
    1.Carrier A
    (a) Port-to-port service under tariff rates
    (1) Total TEUs of first leading commodity carried
    (2)Average gross revenue per TEU
    (b) Port-to-port service under service contracts
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    (c) Intermodal service under tariff rates
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    (d) Intermodal service under service contracts
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    2. Carrier B
    (a) etc.
    3. etc.
    B. Second leading commodity
    1. Carrier A
    (a) etc.
II. Sub-trade B
    A. First leading commodity
    1. etc.

Part VIII Port Service

    For each port within the entire geographic scope of the 
agreement, state the number of port calls by each of the parties 
over the same time period used in responding to Parts V, VI and VII. 
The information should be provided in the format below:

                               Time Period                              
               [Same as that used in responding to Part V]              
------------------------------------------------------------------------
                                        Port   Port   Port   Port   Port
------------------------------------------------------------------------
Carrier A............................                                   
Carrier B............................                                   
Carrier C............................                                   
Etc..................................                                   
------------------------------------------------------------------------

    Also, for each port within the entire geographic scope of the 
agreement, indicate any change in the nature or type of service to 
be effected immediately by the agreement, including base port 
designation and frequency of vessel calls.

Part IX Capacity Management or Regulation (if Applicable)

    For each party that served the geographic service area to be 
covered by the capacity management or capacity regulation program 
during all or any part of the 12-month period used in responding to 
Parts V, VI, VII and VIII, provide the information indicated in the 
format below:

                               Time Period                              
               [Same as that used in responding to Part V]              
------------------------------------------------------------------------
                                       Total TEU                        
                                       capacity                         
                                       provided     Total    Initial TEU
                                        in the       TEUs      capacity 
                                      geographic   utilized  commitment/
                                        service               allocation
                                         area                           
------------------------------------------------------------------------
Carrier A...........................                                    
Carrier B...........................                                    
Carrier C...........................                                    
Etc.................................                                    
------------------------------------------------------------------------

    In addition, provide copies of any reports or analyses dealing 
with cargo space utilization, cargo level forecasts or new ship 
buildings, which were prepared during the 12 months prior to the 
filing of the agreement and circulated among at least two parties.

Part X

    (A) Identification of Person(s) to Contact Regarding the 
Information Form

(1) Name---------------------------------------------------------------

(2) Title--------------------------------------------------------------

(3) Firm Name and Business---------------------------------------------

(4) Business Telephone Number------------------------------------------

(5) Cable Address------------------------------------------------------

    (B) Identification of an Individual Located in the United States 
Designated for the Limited Purpose of Receiving Notice of an 
Issuance of a Request for Additional Information or Documents (see 
46 CFR 572.606).

(1) Name---------------------------------------------------------------

(2) Title--------------------------------------------------------------

(3) Address------------------------------------------------------------

(4) Telephone----------------------------------------------------------

(5) Cable Address------------------------------------------------------

    (C) Certification
    This Information Form, together with any and all appendices and 
attachments thereto, was prepared and assembled in accordance with 
instructions issued by the Federal Maritime Commission. The 
information is, to the best of my knowledge, true, correct, and 
complete.

Name (please print or type)--------------------------------------------

Title------------------------------------------------------------------

Relationship with parties to agreement---------------------------------

----------------------------------------------------------------------
Signature--------------------------------------------------------------

Date-------------------------------------------------------------------

Sec. 572.504  Information form for Class C agreements.

    This section sets forth the Information Form for Class C 
agreements, with accompanying instructions that are intended to 
facilitate the completion of the Form. The explanation and instructions 
should be read in conjunction with the Shipping Act of 1984 and 46 CFR 
part 572.

Information Form for Class C Agreements

Instructions

    All agreements between or among ocean common carriers that are 
Class C agreements as defined in 46 CFR 572.502(b) must be 
accompanied by a completed Information Form for such agreements. A 
complete response must be supplied to the Form. Where the filing 
party is unable to supply a complete response, that party shall 
provide either estimated data (with an explanation of why precise 
data are not available) or a detailed statement of reasons for 
noncompliance and the efforts made to obtain the required 
information. All sources must be identified.

Part I

    Part I requires the filing party to state the full name of the 
agreement as also provided under 46 CFR 572.403.

Part II

    Part II requires the filing party to list all effective 
agreements covering all or part of the geographic scope of the filed 
agreement, whose parties include one or more of the parties to the 
filed agreement.

Part III

    Part III is concerned with the level of service at each port 
within the entire geographic scope of the agreement. The filing 
party is required to state the number of calls at each port by each 
of the parties over the most recent 12-month period for which 
complete data are available, and also to indicate any change in the 
nature or type of service to be effected immediately by the 
agreement.

Part IV(A)

    Part IV(A) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding the Information Form and any 
information provided therein.

Part IV(B)

    Part IV(B) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding a request for additional 
information or documents.

Part IV(C)

    Part IV(C) requires that the filing party sign the Information 
Form and certify that the information in the Form and all 
attachments and appendices are, to the best of the filing party's 
knowledge, true, correct and complete. The filing party is also 
required to indicate his or her relationship with the parties to the 
agreement.

Federal Maritime Commission

Information Form For Certain Agreements By or Among Ocean Common 
Carriers

Agreement Number-------------------------------------------------------
(Assigned by FMC)
Part I Agreement Name:-------------------------------------------------

Part II Other Agreements

    List all effective agreements covering all or part of the 
geographic scope of this agreement, whose parties include one or 
more of the parties to this agreement.

Part III Port Service

    For each port within the entire geographic scope of the 
agreement, state the number of port calls by each of the parties 
over the most recent 12-month period for which complete data are 
available. The information should be provided in the format below.

                               Time Period                              
------------------------------------------------------------------------
                                        Port   Port   Port   Port   Port
------------------------------------------------------------------------
Carrier A............................                                   
Carrier B............................                                   
Carrier C............................                                   
Etc..................................                                   
------------------------------------------------------------------------


    Also, for each port within the entire geographic scope of the 
agreement, indicate any change in the nature or type of service to 
be effected immediately by the agreement, including base port 
designation and frequency of vessel calls.

Part IV

    (A) Identification of Person(s) to Contact Regarding the 
Information Form
(1) Name---------------------------------------------------------------
(2) Title--------------------------------------------------------------
(3) Firm Name and Business---------------------------------------------
(4) Business Telephone Number------------------------------------------
(5) Cable Address------------------------------------------------------
    (B) Identification of an Individual Located in the United States 
Designated for the Limited Purpose of Receiving Notice of an 
Issuance of a Request for Additional Information or Documents (see 
46 CFR 572.606).
(1) Name---------------------------------------------------------------
(2) Title--------------------------------------------------------------
(3) Address------------------------------------------------------------
(4) Telephone----------------------------------------------------------
(5) Cable Address------------------------------------------------------

(C) Certification

    This Information Form, together with any and all appendices and 
attachments thereto, was prepared and assembled in accordance with 
instructions issued by the Federal Maritime Commission. The 
information is, to the best of my knowledge, true, correct, and 
complete.
Name (please print or type)--------------------------------------------
Title------------------------------------------------------------------
Relationship with parties to agreement---------------------------------
----------------------------------------------------------------------
Signature--------------------------------------------------------------
Date-------------------------------------------------------------------


Sec. 572.505   Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive any part 
of the information form requirements of Secs. 572.503 or 572.504.
    (b) Requests for such a waiver shall be submitted in advance of the 
filing of the information form to which the requested waiver would 
apply and shall state (1) the specific requirements from which relief 
is sought; (2) the special circumstances requiring the requested 
relief; and (3) why granting the requested waiver will not 
substantially impair effective regulation of the agreement, either 
during pre-implementation review or during post- implementation 
monitoring. The Commission will take into account the presence or 
absence of shipper complaints in considering an application for a 
waiver.
    18. In section 572.601, paragraph (a) and the first sentence of 
paragraph (b)(1) are revised, as follows:


Sec. 572.601   Preliminary review--rejection of agreements.

    (a) The Commission shall make a preliminary review of each filed 
agreement to determine whether the agreement is in compliance with the 
filing requirements of the Act and this part and, where applicable, 
whether the accompanying Information Form is complete or, where not 
complete, whether the deficiency is adequately explained or is excused 
by a waiver granted by the Commission under Sec. 572.505.
    (b)(1) The Commission shall reject any agreement that otherwise 
fails to comply with the filing and Information Form requirements of 
the Act and this part.
* * * * *
    19. In section 572.608, paragraph (b)(2) is revised, as follows:


Sec. 572.608   Confidentiality of submitted materials.

* * * * *
    (b) * * *
    (2) It is disclosed to either body of Congress or to a duly 
authorized committee or subcommittee of Congress.
* * * * *
    20. In section 572.701, paragraphs (b), (c) and (d) are removed, 
paragraph (a)(1) is redesignated (b) and is revised, paragraph (a)(2) 
is redesignated (c), a new paragraph (a) is added, paragraph (e) is 
redesignated (d) and is revised, a new paragraph (e) is added, 
paragraph (f) is redesignated (g) and is revised, and a new paragraph 
(f) is added, as follows:


Sec. 572.701  General requirements.

    (a) Certain agreements are required to submit quarterly Monitoring 
Reports on an ongoing basis for as long as they remain in effect, 
setting forth information and data on the agreement member lines' cargo 
carryings, revenue results and port service patterns under the 
agreement. In addition, certain agreements are required to submit 
minutes of their meetings.
    (b) Address. Monitoring Reports and minutes required by this 
subpart should be addressed to the Commission as follows: Director, 
Bureau of Trade Monitoring and Analysis, Federal Maritime Commission, 
Washington, D.C. 20573-0001. Copies of the applicable Monitoring Report 
form may be obtained from the Bureau of Trade Monitoring and Analysis. 
The lower, left-hand corner of the envelope in which each Monitoring 
Report or set of minutes is forwarded should indicate the nature of its 
contents and the related agreement number. For example: ``Monitoring 
Report, Agreement 5000'' or ``Minutes, Agreement 5000.''
* * * * *
    (d) Time for filing. Monitoring Reports shall be filed within 30 
days of the end of each calendar quarter. Minutes filed on an annual 
(calendar) year basis shall be filed by February 15 of the following 
year. Other documents shall be filed within 30 days of the end of a 
quarter-year, a meeting, or the receipt of a request for documents.
    (e) A complete response in accordance with the instructions on the 
applicable Monitoring Report shall be supplied to each item. Whenever 
the party answering a particular part is unable to supply a complete 
response, that party shall provide either estimated data (with an 
explanation of why precise data are not available) or a detailed 
statement of reasons for noncompliance and the efforts made to obtain 
the required information.
    (f) A Monitoring Report for a particular agreement may be 
supplemented with any other information or documentary material.
    (g) Confidentiality. The Monitoring Reports, minutes, and any other 
additional information submitted for a particular agreement will be 
exempt from disclosure under 5 U.S.C. 552, except to the extent:
    (1) It is relevant to an administrative or judicial action or 
proceeding; or
    (2) It is disclosed to either body of Congress or to a duly 
authorized committee or subcommittee of Congress.
    Parties may voluntarily disclose or make Monitoring Reports, 
minutes or any other additional information publicly available. The 
Commission must be promptly informed of any such voluntary disclosure.
    21. Section 572.702 is redesignated 572.706, the heading thereof is 
revised, and a new paragraph (d) is added, as follows:


Sec. 572.706  Filing of minutes--including shippers' requests and 
complaints, and consultations

* * * * *
    (d) Serial numbers. (1) Each set of minutes filed with the 
Commission should be assigned a number. For example, a conference 
filing minutes of its first meeting upon the effective date of this 
rule should assign Meeting No. 1 to its minutes, the next meeting will 
be assigned Meeting No. 2, and so on.
    (2) Any conference or rate agreement which, for its own internal 
purposes, has a system for assigning sequential numbers to its minutes 
in a manner which differs from that set forth in paragraph (d)(1) of 
this section may continue to utilize its own system thereof.


572.703  [Redesignated]

    22. Section 572.703 is redesignated 572.707, and the reference to 
``Sec. 572.702'' in the introductory text is changed to 
``Sec. 572.706,'' as follows:


Sec. 572.707  Other documents.

    Each agreement required to file minutes pursuant to Sec. 572.706 * 
* *.
* * * * *
    23. Section 572.704 is redesignated 572.709 and is revised, as 
follows:


Sec. 572.709  Application for waiver.

    (a) Upon a showing of good cause, the Commission may waive any 
requirement of this subpart.
    (b) Requests for such a waiver shall be submitted in advance of the 
filing of the Monitoring Report or minutes to which the requested 
waiver would apply and shall state (1) the specific requirements from 
which relief is sought; (2) the special circumstances requiring the 
requested relief; and (3) why granting the requested waiver will not 
substantially impair effective regulation of the agreement. The 
Commission will take into account the presence or absence of shipper 
complaints in considering an application for a waiver.
    24. A new section 572.702 is added, as follows:


Sec. 572.702  Agreements subject to Monitoring Report requirements.

    Agreements subject to the Monitoring Report requirements of this 
subpart are divided into three classes, Class A, Class B and Class C. 
When used in this subpart:
    (a) Class A agreement means an agreement that is subject to the 
definition set forth in Sec. 572.502(a) and has market shares of 50 
percent or more in half or more of its sub-trades.
    (b) Class B agreement means an agreement that is subject to the 
definition set forth in Sec. 572.502(a) but does not have market shares 
of 50 percent or more in half or more of its sub-trades.
    Classification of an agreement as ``Class A'' or ``Class B'' for 
purposes of its reporting obligations under this subpart shall be done 
by the Bureau of Trade Monitoring and Analysis, based in the first 
instance on the market share data reported on the agreement's 
Information Form pursuant to Sec. 572.503, or on similar data otherwise 
obtained. Thereafter, at the beginning of each calendar year, the 
Bureau of Trade Monitoring and Analysis shall determine whether the 
agreement should be classified as ``Class A'' or ``Class B'' for that 
year, based on the market share data reported on the agreement's most 
recent quarterly Monitoring Report.
    (c) Class C agreement means an agreement that is subject to the 
definition set forth in Sec. 572.502(b).
    25. A new section 572.703 is added, as follows:


Sec. 572.703  Monitoring report for Class A agreements.

    This section sets forth the Monitoring Report form for Class A 
agreements, with accompanying instructions that are intended to 
facilitate the completion of the Report. The instructions should be 
read in conjunction with the Shipping Act of 1984 and with this part 
572.

Monitoring Report for Class A Agreements

Instructions

    A complete response must be supplied to each part of the Report. 
Where the party answering a particular part is unable to supply a 
complete response, that party shall provide either estimated data 
(with an explanation of why precise data are not available) or a 
detailed statement of reasons for noncompliance and the efforts made 
to obtain the required information. All sources must be identified.

Part by Part Explanation

Part I

    Part I requires the filing party to state the full name of the 
agreement, and the assigned FMC number.

Part II

    Part II requires the filing party to indicate any change 
occurring during the calendar quarter to the list of other 
agreements set forth in Part II of the Information Form.

Part III(A)

    Part III(A) requires the filing party to indicate whether the 
agreement authorizes the parties to operate as a conference.

Part III(B)

    Part III(B) requires the filing party to indicate whether the 
agreement authorizes the parties to establish capacity management or 
capacity regulation programs, as defined in Sec. 572.104(e), whereby 
some part of the capacity of the parties' vessels is withheld from a 
specified transportation market.

Part IV

    Part IV requires the filing party to provide the market shares 
of all liner operators within the entire geographic scope of the 
agreement and in each sub-trade within the scope of the agreement 
during the most recent calendar quarter. Sub-trade is defined as the 
scope of all liner movements between each U.S. port range and each 
foreign country within the scope of the agreement. Where the 
agreement covers both U.S. inbound and outbound liner movements, 
inbound and outbound market shares should be shown separately.
    U.S. port ranges are defined as follows:
    Atlantic--Includes ports along the eastern seaboard from the 
northern boundary of Maine to, but not including, Key West, Florida. 
Also includes all ports bordering upon the Great Lakes and their 
connecting waterways as well as all ports in the State of New York 
on the St. Lawrence River.
    Gulf--Includes all ports along the Gulf of Mexico from Key West, 
Florida, to Brownsville, Texas, inclusive. Also includes all ports 
in Puerto Rico and the U.S. Virgin Islands.
    Pacific--Includes all ports in the States of Alaska, Hawaii, 
California, Oregon and Washington. Also includes all ports in Guam, 
American Samoa and Saipan.
    The formula for calculating market share (in either the entire 
agreement scope or in a sub-trade) is as follows:
    The total amount of cargo carried on each liner operator's liner 
vessels (in either the entire agreement scope or in the particular 
sub-trade) during the calendar quarter, divided by the total amount 
of cargo carried on all liner vessels (in either the entire 
agreement scope or in the particular sub-trade) during the calendar 
quarter, which quotient is multiplied by 100. The market shares held 
by non-agreement lines as well as by agreement lines must be 
provided, stated separately in the format indicated.
    The amount of cargo is to be measured in TEUs. Liner movements 
is the carriage of liner cargo by liner operators. Liner cargoes are 
cargoes carried on liner vessels in a liner service. A liner 
operator is a vessel-operating common carrier engaged in liner 
service. Liner vessels are those vessels used in a liner service. 
Liner service refers to a definite, advertised schedule of sailings 
at regular intervals. All these definitions, terms and descriptions 
apply only for purposes of the Monitoring Report.

Part V

    Part V requires the filing party to state each agreement member 
line's total cargo carryings (measured in TEUs) during the calendar 
quarter within the entire geographic area covered by the agreement, 
each line's total revenues within the geographic area during the 
calendar quarter, and average revenue per TEU. The Monitoring Report 
specifies the format in which the information is to be reported. 
Where the agreement covers both U.S. inbound and outbound liner 
movements, inbound and outbound data should be stated separately.

Part VI

    Part VI requires the filing party to identify, for each sub-
trade within the scope of the agreement, the top 10 commodities by 
cumulative TEUs carried by all the parties during the calendar 
quarter, or the commodities accounting for 50 percent of the 
cumulative TEUs carried by all the parties during the calendar 
quarter, whichever is greater. Where the agreement covers both U.S. 
inbound and outbound liner movements, inbound and outbound sub-
trades should be stated separately.

Part VII

    Part VII addresses how each of the parties has carried each 
major commodity in each sub-trade, and the revenue results 
experienced by each party from its carriage of each commodity. The 
Monitoring Report specifies the format in which the information is 
to be reported.

Part VIII

    Part VIII is required to be completed if Part III(A) is answered 
``YES.'' The filing party is required to indicate the extent to 
which each party has taken independent rate actions on each of the 
leading commodities in each of the sub-trades. Part VIII also 
inquires into the type of shipper--beneficial cargo owner, non-
vessel-operating common carrier, or shippers' association--for whom 
independent rate actions have been taken. The Monitoring Report 
specifies the format in which the information is to be reported.

Part IX

    Part IX is concerned with the level of service at each port 
within the entire geographic scope of the agreement. The filing 
party is required to provide the number of calls at each port by 
each of the parties during the calendar quarter, and also to 
indicate any change in the nature or type of service effected during 
the calendar quarter.

Part X

    Part X is required to be completed if part III(B) is answered 
``YES.'' The filing party is required to submit responses to a 
number of inquiries into the operation of the capacity management or 
capacity regulation program during the calendar quarter. Where the 
program covers both U.S. inbound and outbound liner movements, 
inbound and outbound data should be stated separately. Copies of 
specified kinds of documents must also be provided.

Part XI(A)

    Part XI(A) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding the Monitoring Report and any 
information provided therein.

Part XI(B)

    Part XI(B) requires that the filing party sign the Monitoring 
Report and certify that the information in the Report and all 
attachments and appendices are, to the best of the filing party's 
knowledge, true, correct and complete. The filing party is also 
required to indicate his or her relationship with the parties to the 
agreement.

Federal Maritime Commission

Monitoring Report For Class A Agreements Between or Among Ocean 
Common Carriers

Agreement Number-------------------------------------------------------
(Assigned by FMC)
Part I Agreement Name:-------------------------------------------------

Part II Other Agreements

    Indicate any change occurring during the calendar quarter to the 
list of other agreements set forth in Part II of the Information 
Form.

Part III Agreement Type

(A) Conferences

    Does the agreement authorize the parties to operate as a 
conference?
Yes {time}     No {time} 

(B) Capacity Management or Regulation

    Does the agreement authorize the parties to establish capacity 
management or capacity regulation programs?
Yes {time}     No {time} 

Part IV Market Share Information

    Provide the market shares of all liner operators within the 
entire geographic scope of the agreement and within each sub-trade 
during the calendar quarter. The information should be provided in 
the format below:

                Market Share Report for Calendar Quarter                
       [Indicate either entire agreement scope, or sub-trade name]      
------------------------------------------------------------------------
                                                    TEUs       Percent  
------------------------------------------------------------------------
Agreement market share:                                                 
                                                                        
  Line A......................................        X,XXX           XX
  Line B......................................        X,XXX           XX
  Line C......................................        X,XXX           XX
                                               -------------------------
    Total Agreement Market Share..............        X,XXX           XX
Non-Agreement Market Share:...................                          
Line X........................................       X,XXXX           XX
Line Y........................................        X,XXX           XX
Line Z........................................        X,XXX           XX
                                               -------------------------
    Total Non-Agreement Market Share..........        X,XXX           XX
    Total Market..............................        X,XXX          100
------------------------------------------------------------------------

Part V Cargo and Revenue Results Agreement-Wide

    For each agreement member line, provide total cargo carryings 
(measured in TEUs) during the calendar quarter within the entire 
geographic area covered by the agreement, total revenues within the 
geographic area during the calendar quarter, and average revenue per 
TEU. The information should be provided in the format below:

                            Calendar Quarter                            
------------------------------------------------------------------------
                                                                 Avg.   
               Carrier                   Total       Total      revenue 
                                          TEUs     revenues     per TEU 
------------------------------------------------------------------------
A....................................             $           $         
B....................................             $           $         
C....................................             $           $         
Etc..................................             $           $         
------------------------------------------------------------------------

Part VI Leading Commodities

    For each sub-trade within the scope of the agreement, list the 
top 10 commodities by cumulative TEUs carried by all the parties 
during the calendar quarter, or list the commodities accounting for 
50 percent of the cumulative TEUs carried by all the parties during 
the calendar quarter, whichever list is longer. The information 
should be provided in the format below:

Calendar Quarter

I. Sub-trade
    A. First leading commodity
    B. Second leading commodity
    C. Third leading commodity
    etc.
II. Sub-trade
    A. First leading commodity
    etc.

Part VII Cargo and Revenue Results by Sub-Trade

    For each sub-trade within the scope of the agreement, and for 
each of the leading commodities listed for each sub-trade in the 
response to Part VI, and for each party, provide the following 
information:
    (1) Total TEUs carried port-to-port under tariff rates, and 
average gross revenue per TEU.
    (2) Total TEUs carried port-to-port under service contracts, and 
average gross revenue per TEU.
    (3) Total TEUs carried by intermodal service under tariff rates, 
and average gross revenue per TEU.
    (4) Total TEUs carried by intermodal service under service 
contracts, and average gross revenue per TEU.
    The information should be provided in the format below:

Calendar Quarter

I. Sub-trade A
    A. First leading commodity
    1. Carrier A
    (a) Port-to-port service under tariff rates
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    (b) Port-to-port service under service contracts
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    (c) Intermodal service under tariff rates
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    (d) Intermodal service under service contracts
    (1) Total TEUs of first leading commodity carried
    (2) Average gross revenue per TEU
    2. Carrier B
    (a) etc.
    3. etc.
    B. Second leading commodity
    1. Carrier A
    (a) etc.
II. Sub-trade B
    A. First leading commodity
    1. etc.

Part VIII Independent Rate Actions (if applicable)

    For each sub-trade within the scope of the agreement, and for 
each of the leading commodities listed for each sub-trade in the 
response to Part VI, and for each party, state the number of 
independent rate actions taken during the calendar quarter 
applicable to that commodity moving in that sub-trade, and the total 
number of TEUs of that commodity covered by the independent actions. 
Also, state the name of each shipper for whom an independent rate 
action was taken on that commodity during the calendar quarter, and 
state whether the shipper was a beneficial cargo owner, a non-
vessel-operating common carrier, or a shippers' association. The 
information should be provided in the format below:

Calendar Quarter

I. Sub-trade A
    A. First leading commodity
    1. Carrier A
    (a) Number of IA rate actions
    (b) Number of TEUs
    (c) Shippers affected
    (1) Shipper A--name and type
    (2) Shipper B--name and type
    etc.
    2. Carrier B
    (a) etc.
    B. Second leading commodity
    1. Carrier A
    (a) etc.
II. Sub-trade B
    A. First leading commodity
    1. etc.

Part IX Port Service

    For each port within the entire geographic scope of the 
agreement, state the number of port calls by each of the agreement 
member lines during the calendar quarter. The information should be 
provided in the format below:

                            Calendar Quarter                            
------------------------------------------------------------------------
                                        Port   Port   Port   Port   Port
------------------------------------------------------------------------
Carrier A............................                                   
Carrier B............................                                   
Carrier C............................                                   
Etc..................................                                   
------------------------------------------------------------------------


    Also, for each port within the entire geographic scope of the 
agreement, indicate any change in the nature or type of service 
effected during the calendar quarter, including base port 
designation and frequency of vessel calls.

Part X Capacity Management or Regulation (if applicable)

    For each party that served during the calendar quarter the 
geographic service area covered by the capacity management or 
capacity regulation program, provide the information indicated in 
the format below:

                                                Calendar Quarter                                                
----------------------------------------------------------------------------------------------------------------
                                                               Total TEU                                        
                                                     TEU        capacity                              Total TEUs
                                                   capacity   provided in    TEUs of    TEUs of non- utilized in
                                                  commitment      the        program      program        the    
                                                      or       geographic     cargo        cargo      geographic
                                                  allocation    service      carried      carried      service  
                                                                  area                                   area   
----------------------------------------------------------------------------------------------------------------
Carrier A......................................                                                                 
Carrier B......................................                                                                 
Carrier C......................................                                                                 
Etc............................................                                                                 
----------------------------------------------------------------------------------------------------------------


    Also, identify all member lines who declined to carry cargo on 
the basis of their capacity commitments or allocations, and describe 
the circumstance of each instance and the amounts of cargo involved.
    Also, provide copies of any reports or analyses dealing with 
cargo space utilization, cargo level forecasts or new ship 
buildings, which were prepared during the calendar quarter and 
circulated among at least two agreement members.

Part XI

(A) Identification of Person(s) to Contact Regarding the Monitoring 
Report

(1) Name---------------------------------------------------------------
(2) Title--------------------------------------------------------------
(3) Firm Name and Business---------------------------------------------
(4) Business Telephone Number------------------------------------------
(5) Cable Address------------------------------------------------------

(B) Certification

    This Monitoring Report, together with any and all appendices and 
attachments thereto, was prepared and assembled in accordance with 
instructions issued by the Federal Maritime Commission. The 
information is, to the best of my knowledge, true, correct, and 
complete.
Name (please print or type)--------------------------------------------
Title------------------------------------------------------------------
Relationship with parties to agreement---------------------------------
----------------------------------------------------------------------
Signature--------------------------------------------------------------
Date-------------------------------------------------------------------

    26. A new section 572.704 is added, as follows:


Sec. 572.704  Monitoring report for Class B agreements.

    This section sets forth the Monitoring Report form for Class B 
agreements, with accompanying instructions that are intended to 
facilitate the completion of the Report. The instructions should be 
read in conjunction with the Shipping Act of 1984 and with this part 
572.

MONITORING REPORT FOR CLASS B AGREEMENTS

Instructions

    A complete response must be supplied to each part of the Report. 
Where the party answering a particular part is unable to supply a 
complete response, that party shall provide either estimated data 
(with an explanation of why precise data are not available) or a 
detailed statement of reasons for noncompliance and the efforts made 
to obtain the required information. All sources must be identified.

Part by Part Explanation

Part I

    Part I requires the filing party to state the full name of the 
agreement, and the assigned FMC number.

Part II

    Part II requires the filing party to indicate any change 
occurring during the calendar quarter to the list of other 
agreements set forth in Part II of the Information Form.

Part III

    Part III requires the filing party to provide the market shares 
of all liner operators within the entire geographic scope of the 
agreement and in each sub-trade within the scope of the agreement 
during the most recent calendar quarter. Sub-trade is defined as the 
scope of all liner movements between each U.S. port range and each 
foreign country within the scope of the agreement. Where the 
agreement covers both U.S. inbound and outbound liner movements, 
inbound and outbound market shares should be shown separately.
    U.S. port ranges are defined as follows:
    Atlantic--Includes ports along the eastern seaboard from the 
northern boundary of Maine to, but not including, Key West, Florida. 
Also includes all ports bordering upon the Great Lakes and their 
connecting waterways as well as all ports in the State of New York 
on the St. Lawrence River.
    Gulf--Includes all ports along the Gulf of Mexico from Key West, 
Florida, to Brownsville, Texas, inclusive. Also includes all ports 
in Puerto Rico and the U.S. Virgin Islands.
    Pacific--Includes all ports in the States of Alaska, Hawaii, 
California, Oregon and Washington. Also includes all ports in Guam, 
American Samoa and Saipan.
    The formula for calculating market share (in either the entire 
agreement scope or in a sub-trade) is as follows:
    The total amount of cargo carried on each liner operator's liner 
vessels (in either the entire agreement scope or in the particular 
sub-trade) during the calendar quarter, divided by the total amount 
of cargo carried on all liner vessels (in either the entire 
agreement scope or in the particular sub-trade) during the calendar 
quarter, which quotient is multiplied by 100. The market shares held 
by non-agreement lines as well as by agreement lines must be 
provided, stated separately in the format indicated.
    The amount of cargo is to be measured in TEUs. Liner movements 
is the carriage of liner cargo by liner operators. Liner cargoes are 
cargoes carried on liner vessels in a liner service. A liner 
operator is a vessel-operating common carrier engaged in liner 
service. Liner vessels are those vessels used in a liner service. 
Liner service refers to a definite, advertised schedule of sailings 
at regular intervals. All these definitions, terms and descriptions 
apply only for purposes of the Monitoring Report.

Part IV

    Part IV requires the filing party to state each agreement member 
line's total cargo carryings (measured in TEUs) during the calendar 
quarter within the entire geographic area covered by the agreement, 
each line's total revenues within the geographic area during the 
calendar quarter, and average revenue per TEU. The Monitoring Report 
specifies the format in which the information is to be reported. 
Where the agreement covers both U.S. inbound and outbound liner 
movements, inbound and outbound data should be stated separately.

Part V

    Part V requires the filing party to identify any change in the 
nature or type of service at any of the ports within the entire 
geographic scope of the agreement.

Part VI(A)

    Part VI(A) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding the Monitoring Report and any 
information provided therein.

Part VI(B)

    Part VI(B) requires generally that the filing party sign the 
Monitoring Report and certify that the information in the Report and 
all attachments and appendices are, to the best of the filing 
party's knowledge, true, correct and complete. The filing party is 
also required to indicate his or her relationship with the parties 
to the agreement.

Federal Maritime Commission

Monitoring Report For Class B Agreements Between or Among Ocean 
Common Carriers

Agreement Number-------------------------------------------------------
(Assigned by FMC)
Part I Agreement Name:-------------------------------------------------

Part II Other Agreements

    Indicate any change occurring during the calendar quarter to the 
list of other agreements set forth in Part II of the Information 
Form.

Part III Market Share Information

    Provide the market shares of all liner operators within the 
entire geographic scope of the agreement and within each sub-trade 
during the calendar quarter. The information should be provided in 
the format below:

                Market Share Report for Calendar Quarter                
       [indicate either entire agreement scope, or sub-trade name]      
------------------------------------------------------------------------
                                                    TEUs       Percent  
------------------------------------------------------------------------
Agreement Market Share:                                                 
  Line A......................................        X,XXX           XX
  Line B......................................        X,XXX           XX
  Line C......................................        X,XXX           XX
                                               -------------------------
    Total Agreement Market Share..............        X,XXX           XX
Non-Agreement market share:...................                          
  Line X......................................        X,XXX           XX
  Line Y......................................        X,XXX           XX
  Line Z......................................        X,XXX           XX
                                               -------------------------
    Total Non-Agreement Market Share..........        X,XXX           XX
    Total Market..............................        X,XXX          100
------------------------------------------------------------------------

Part IV Cargo and Revenue Results Agreement-Wide

    For each agreement member line, provide total cargo carryings 
(measured in TEUs) during the calendar quarter within the entire 
geographic area covered by the agreement, total revenues within the 
geographic area during the calendar quarter, and average revenue per 
TEU. The information should be provided in the format below:

                            Calendar Quarter                            
------------------------------------------------------------------------
                                                                 Avg.   
               Carrier                   Total       Total      revenue 
                                          TEUs     revenues     per TEU 
------------------------------------------------------------------------
A....................................  .........  $           $         
B....................................  .........  $           $         
C....................................  .........  $           $         
------------------------------------------------------------------------

Part V Port Service

    For each port within the entire geographic scope of the 
agreement, indicate any change in the nature or type of service 
effected during the calendar quarter, including base port 
designation and frequency of vessel calls.

Part VI

(A) Identification of Person(s) to Contact Regarding the Monitoring 
Report

(1) Name---------------------------------------------------------------
(2) Title--------------------------------------------------------------
(3) Firm Name and Business---------------------------------------------
(4) Business Telephone Number------------------------------------------
(5) Cable Address------------------------------------------------------

(B) Certification

    This Monitoring Report, together with any and all appendices and 
attachments thereto, was prepared and assembled in accordance with 
instructions issued by the Federal Maritime Commission. The 
information is, to the best of my knowledge, true, correct, and 
complete.Q
Name (please print or type)--------------------------------------------
Title------------------------------------------------------------------
Relationship with parties to agreement---------------------------------
----------------------------------------------------------------------
Signature--------------------------------------------------------------
Date-------------------------------------------------------------------

    27. A new section 572.705 is added, as follows:


Sec. 572.705  Monitoring report for Class C agreements.

    This section sets forth the Monitoring Report form for Class C 
agreements, with accompanying instructions that are intended to 
facilitate the completion of the Report. The explanation and 
instructions should be read in conjunction with the Shipping Act of 
1984 and this part 572.

Monitoring Report for Class C Agreements

Instructions

    A complete response must be supplied to the Report. Where the 
filing party is unable to supply a complete response, that party 
shall provide either estimated data (with an explanation of why 
precise data are not available) or a detailed statement of reasons 
for noncompliance and the efforts made to obtain the required 
information. All sources must be identified.

Part by Part Explanation

Part I

    Part I requires the filing party to state the full name of the 
agreement, and the assigned FMC number.

Part II

    Part II requires the filing party to indicate any change 
occurring during the calendar quarter to the list of other 
agreements set forth in Part II of the Information Form.

Part III

    Part III requires the filing party to identify any change in the 
nature or type of service at any of the ports within the entire 
geographic scope of the agreement.

Part IV(A)

    Part IV(A) requires the filing party to provide the name, title, 
address, telephone number and cable address of a person the 
Commission may contact regarding the Monitoring Report and any 
information provided therein.

Part IV(B)

    Part IV(B) requires generally that the filing party sign the 
Monitoring Report and certify that the information in the Report and 
all attachments and appendices are, to the best of the filing 
party's knowledge, true, correct and complete. The filing party is 
also required to indicate his or her relationship with the parties 
to the agreement.

Federal Maritime Commission

Monitoring Report For Class C Agreements Between or Among Ocean 
Common Carriers

Agreement Number-------------------------------------------------------
(Assigned by FMC)
Part I Agreement Name:-------------------------------------------------

Part II Other Agreements

    Indicate any change occurring during the calendar quarter to the 
list of other agreements set forth in Part II of the Information 
Form.

Part III Port Service

    For each port within the entire geographic scope of the 
agreement, indicate any change in the nature or type of service 
effected during the calendar quarter, including base port 
designation and frequency of vessel calls.

Part IV

(A) Identification of Person(s) to Contact Regarding the Monitoring 
Report

(1) Name---------------------------------------------------------------
(2) Title--------------------------------------------------------------
(3) Firm Name and Business---------------------------------------------
(4) Business Telephone Number------------------------------------------
(5) Cable Address------------------------------------------------------

(B) Certification

    This Monitoring Report, together with any and all appendices and 
attachments thereto, was prepared and assembled in accordance with 
instructions issued by the Federal Maritime Commission. The 
information is, to the best of my knowledge, true, correct, and 
complete.
Name (please print or type)--------------------------------------------
Title------------------------------------------------------------------
Relationship with parties to agreement---------------------------------
----------------------------------------------------------------------
Signature--------------------------------------------------------------
Date-------------------------------------------------------------------

    28. A new section 572.708 is added, as follows:


Sec. 572.708  Retention of records.

    Each agreement required to file minutes pursuant to this subpart 
shall retain a copy of each document listed in said minutes for a 
minimum period of 3 years after the date the document is distributed to 
the members. Such documents may be requested by the Director, Bureau of 
Trade Monitoring, in writing by reference to a specific minute, and 
shall indicate that the documents will be received in confidence. 
Requested documents shall be furnished by the parties within the time 
specified.
    29. Section 572.902 is revised, as follows:


Sec. 572.902  Falsification of reports.

    Knowing falsification of any report required by the Act or this 
part, including knowing falsification of any item in any applicable 
Information Form or Monitoring Report, is a violation of the rules of 
this part and is subject to the civil penalties set forth in section 
13(a) of the Act and may be subject to the criminal penalties provided 
for in 18 U.S.C. 1001.

Appendix A [Removed]

    30. Appendix A to Part 572 is removed.

    By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 94-29760 Filed 12-2-94; 8:45 am]
BILLING CODE 6730-0l-W