[Federal Register Volume 64, Number 75 (Tuesday, April 20, 1999)]
[Notices]
[Pages 19359-19360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9855]
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FEDERAL MARITIME COMMISSION
Fact Finding Investigation No. 23--Ocean Common Carrier Practices
in the Transpacific Trades; Amended Order of Investigation
On September 21, 1998, pursuant to the Shipping Act of 1984, 46
U.S.C. app. 1701 et seq. (``Act''), the Federal Maritime Commission
(``Commission'') commenced this nonadjudicatory fact finding proceeding
to investigate allegations that ocean common carriers in the eastbound
Transpacific trades were engaging in activities that may be in
violation of certain provisions of the Act. Commissioner Delmond J.H.
Won was appointed as Investigative Officer and was authorized to hold
hearings and to utilize compulsory processes, including subpoenas, to
obtain relevant testimony and documents. Commissioner Won conducted an
[[Page 19360]]
expedited investigation and submitted a confidential Report and
Recommendations (``Report'') to the Commission on January 5, 1999.
A summary of Commissioner Won's Report was released to the public
on March 12, 1999. Generally, as indicated by the summary, evidence
cited in the Report corroborates allegations that carriers in the
eastbound Transpacific trades, faced with shortages of space during the
peak 1998 holiday shipping season, refused to carry low rated cargo at
applicable rates, targeted the cargo of non-vessel-operating common
carriers (``NVOCCs'') for rate and space discrimination, and imposed
significant and sudden increases in rates and charges. Among other
things, the Report indicates that space was allocated in many instances
on the basis of profit to the carrier; and that bookings were often
rejected unless the shipper agreed to significantly increased rates or
charges. Large, reliable contract shippers were said generally to have
received preferential space allocations.
The Commission has determined to pursue certain of the Report's
findings through further investigation and enforcement action under
sections 8, 10 and 11 of the Act, as appropriate. To facilitate such
further investigation, the Commission is continuing this proceeding to
assist in developing additional evidence concerning the activities of
ocean common carriers listed in Appendix A hereto during the period
July 1, 1998 to November 1, 1998 in the eastbound Transpacific trades,
and related to the following issues:
1. Refusing to provide vessel space or equipment to shippers under
existing service contract rates;
2. Demanding or charging rates higher than those set forth in
applicable tariffs or service contracts;
3. Subjecting any particular non-vessel-operating common carrier
(``NVOCC'') or NVOCC traffic generally, to any unreasonable refusal to
deal, to any undue or unreasonable prejudice or disadvantage, or to
unjustly discriminatory rates or charges; and
4. Transporting cargo for, or soliciting service contracts from,
individual members of shippers' associations at rates higher than those
found in existing contracts of the applicable associations.
In addition, the Commission is designating Vern W. Hill, Director,
Bureau of Enforcement, as the Investigative Officer for the continued
phase of this proceeding. Mr. Hill will have all of the powers formerly
delegated to Commissioner Delmond Won to pursue the issues set forth
above.
Interested persons are invited and encouraged to contact the
Investigative Officer named herein, at (202) 523-5783 (Phone) or (202)
523-5785 (Fax), should they wish to provide testimony or evidence, or
to contribute in any other manner to the development of a complete
factual record in this proceeding.
Therefore, it is ordered, That pursuant to sections 8, 10, 11, 12
and 15 of the Shipping Act of 1984, 46 U.S.C. app. 1707, 1709, 1710,
1711 and 1714, and part 502, Subpart R of Title 46 of the Code of
Federal Regulations, 46 CFR 502.281, et seq., this nonadjudicatory
investigation into practices of ocean common carriers in the
Transpacific trades is continued in order to develop the issues set
forth above and to provide a basis for any subsequent regulatory,
adjudicatory or injunctive action by the Commission.
It is further ordered, That the Investigative Officer shall be Vern
W. Hill, Esq., Director, Bureau of Enforcement, of the Commission. The
Investigative Officer shall be assisted by staff members as may be
assigned by the Commission's Managing Director and shall have full
authority to hold public or non-public sessions, to resort to all
compulsory process authorized by law (including the issuance of
subpoenas ad testificandum and duces tecum), to administer oaths, to
require reports, and to perform such other duties as may be necessary
in accordance with the laws of the United States and the regulations of
the Commission;
It is further ordered, That the Investigative Officer shall issue a
report of findings and recommendations no later than 180 days after
publication of this Order in the Federal Register, and interim reports
if it appears that more immediate Commission action is necessary, such
reports to remain confidential unless and until the Commission provides
otherwise;
It is further ordered, That this proceeding shall be discontinued
upon acceptance of the final report of findings and recommendations by
the Commission, unless otherwise ordered by the Commission; and
It is further ordered, That notice of this Order be published in
the Federal Register.
By the Commission.
Bryant L. VanBrakle,
Secretary.
Appendix A
Ocean Common Carriers
APL Co. PTE, Ltd. (``APL'')
American President Lines, Ltd. (``APL'')
A.P. Moller-Maersk Line (``Maersk'')
COSCO Container Lines, Ltd. (``COSCO'')
Evergreen Marine Corp. (Taiwan) Ltd. (``Evergreen'')
Hanjin Shipping Co., Ltd. (``Hanjin'')
Hapag-Lloyd Container Linie GmbH (``Hapag-Lloyd'')
Hyundai Merchant Marine Co., Ltd. (``Hyundai'')
Kawasaki Kisen Kaisha, Ltd. (``K-Line'')
Mitsui O.S.K. Lines, Ltd. (``MOL'')
Nippon Yusen Kaisha (``NYK'')
Orient Overseas Container Line, Inc. (``OOCL'')
P&O Nedlloyd B.V. (``P&O Nedlloyd'')
P&O Nedlloyd Ltd. (``P&O Nedlloyd'')
Sea-Land Service, Inc. (``Sea-Land'')
Yangming Marine Line (``Yangming'')
[FR Doc. 99-9855 Filed 4-19-99; 8:45 am]
BILLING CODE 6730-01-M
