Fmc

  • FMC Commissioner William P. Doyle defines the mission, machinations and many triumphs of the Federal Maritime Commission. 

     
    It would not be a stretch to say that the Federal Maritime Commission (FMC) is perhaps the least understood, possibly the most obscure, and at the very same time, one of the most important federal agencies on the commercial waterfront today. The independent federal agency is responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer. Along the way, FMC says that its mission is to foster a fair, efficient and reliable international ocean transportation system and to protect the public from unfair and deceptive practices. 
     
    In a nutshell, says, FMC commissioner William P. Doyle, fairness and efficiency in the U.S. maritime commerce sectors is the primary focus of his organization. How that gets accomplished is a bit more complicated than one might think. Doyle, who has been a fixture on the Commission since President Obama appointed him in January of 2013, arrived there via an interesting career path. He is a 1992 graduate of the Massachusetts Maritime Academy, where he earned a Bachelor of Science in Marine Engineering.
     
    Doyle, who served for over a decade as an officer in the U.S. Merchant Marine as a marine engineer aboard numerous classes of vessels, also boasts over 20 years of experience in the transportation industry, including both the maritime and energy sectors. While still serving in the U.S. Merchant Marine, he entered law school at Widener University School of Law in Harrisburg, Pennsylvania. All told; he probably has one of the broadest backgrounds in terms of maritime affairs of anyone on the FMC staff and his perspectives, because of it, are that much more valuable.  
     
    Even Bill Doyle will tell you that the FMC wasn’t necessarily on his Radar when the opportunity presented itself. He explains, “I was not familiar with the FMC while in law school, let alone as a cadet.  And, when I sailed, it was always on U.S.-Flag vessels which come under the jurisdiction of the U.S. Coast Guard and the Maritime Administration. Later, I had studied international law and become increasingly interested in the global movement of goods and the flow of energy.  To this end, I was selected to serve in a few advisory roles under both the Bush and Obama Administrations. That eventually led to a call from the White House in 2011, asking if I was interested in being vetted and perhaps nominated by President Obama for the position of Commissioner to the FMC. I said yes. And now, I have been confirmed twice by the U.S. Senate.” Nevertheless, Doyle was no stranger to contracts and regulations when he joined FMC.
     
    In 2008, he was appointed under the Bush Administration as Director of Permits, Scheduling, and Compliance with the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects. There, he managed and directed the permitting and regulatory coordination of 24 federal agencies, numerous State of Alaska agencies, and both federal and provincial agencies of Canada. Beyond this, he acted as lead negotiator for the U.S. Government in securing cost recovery agreements with private sector national and multinational companies. On the advisory side, Doyle has previously been appointed to as many as five different boards and committees under both the Obama and Bush Administrations.
     
    In Action: the long arm of FMC
    Since its founding on August 12, 1961, the Federal Maritime Commission (FMC) has worked to ensure that neither the activities of liner shipping groups nor foreign government laws or regulations impose unfair costs on American exporters, or on American consumers of imported goods. The FMC list of responsibilities is long, but says Doyle, FMC’s oversight of ocean carrier consolidations and the reshuffling of Ocean Carrier Alliances is one of the most important. That’s because there is massive overcapacity in the liner trade, resulting freight rates which are plumbing historical lows.
     
    As the industry consolidates, these potential mergers scramble the four major ocean carrier alliances that are in existence today – 2M, Ocean Three (O3), CKYHE, and G6. “The merger activity involves companies that are members of separate alliances. For instance, CMA CGM is a member of the O3 alliance, while NOL-APL is a member of the G6 alliance. Likewise, COSCO is a member of the CKYHE alliance and CSCL is a member of the Ocean 3. It’s complicated,” says Doyle, adding, “By the time this article is published there will most likely be an announcement on another formation of a new ocean carrier alliance.”  
     
    For its part, the FMC looks at price and service, reviews alliance filings and determines to what extent costs increase and service decreases as a result of these alliance(s). The FMC can stop an alliance through an injunction or allow an alliance to move forward with conditions attached through robust monitoring of the alliance(s). In this way, Doyle says simply, “We’re busy.”
     
    Principal statutes administered by FMC:
    • The Shipping Act of 1984 (amended by OSRA 1998)
    • The Foreign Shipping Practices Act of 1988
    • Section 19 of the Merchant Marine Act, 1920
    • Sections 2 and 3 of Pub. L. No. 89-777, 80 stat.1350
     
    Separately, one of the more interesting (and important) tasks undertaken by Doyle and his staff in recent years involved the Value Added Tax (VAT) regime that the People’s Republic of China (PRC) implemented over the past two years. Simply stated, China decided to change from a “business tax” to a VAT. Doyle explains, “This was delicate issue. U.S. businesses including carriers and shippers were concerned about their tax treatment under China’s new VAT. There was very little guidance coming out of China on implementation plans for the new tax regime.” The FMC got to work.  
     
    U.S.-China Maritime Bilateral talks – where Doyle served as Co-chair for the United States – brought out questions as to the fair application of the tax with regard to international maritime transportation.
     
    In the end, China issued a series of circulars on the VAT that modified the rules and further explained and alleviated the concerns of U.S. businesses. It worked out well for everyone, but Doyle insists that the key to this was persistence and patience on the part of FMC.        
     
    A good example of the regulatory reach of the FMC is the power vested under the Shipping Act to make sure U.S. carriers, shippers and businesses are not disadvantaged or treated differently by the regulations of foreign governments or entities. In such cases, Doyle explains, “The FMC has the authority to tell the U.S. Coast Guard to ‘deny entry for the purpose of ocean-borne trade’ and to detain vessels already in port.  According to Doyle, such a scenario was actually set in motion in 1997. The shipping dispute involved rules set by the Japan Harbor Transportation Association. American shipping lines had complained for years that the association required all carriers to receive prior approval for even the most minor operational changes in handling cargo in Japanese ports. Those changes include alterations of schedules, substitutions of one ship for another and re-routing of ships.
     
    The rules were believed to benefit Japanese interests at the expense of all other interests including U.S. businesses. As a result, the FMC issued an order to begin the process of detaining three Japanese companies, K-Line, Mitsui OSK Lines and Nippon Yusen Kaisha. In the end – but only after the Order was issued by the FMC – Japan and U.S. negotiators resolved the dispute amicably.    
     
    Collaboration
    FMC’s reach, although long and powerful, isn’t necessarily a unilateral event. Collaboration with a wide range of players is necessary in order to get the job done. That collaboration also involves a necessary separation powers when it comes to maritime regulations. For example, and in 1950, the regulatory programs of the United States Maritime Commission were transferred to the Federal Maritime Board at the Department of Commerce, where they resided until the FMC’s creation in 1961. Doyle sums up the beginnings of FMC neatly. “Post-World War II brought new thinking to maritime policy and regulation. One of those policy concepts included promotion of the U.S.-Flag maritime industry and regulating the rapidly expanding international maritime trade. The school of thought was how can the same agency promote its national maritime interests and regulate the international side of maritime trade? Basically, it was a perceived conflict of interest. This led to the 1961 JFK Presidential executive order that gave MARAD 
    the promotional responsibility and FMC the regulatory role.”       
     
    MARAD, often referred to as “America’s Maritime Cheerleaders,” is a direct US DOT executive branch agency under the exclusive jurisdiction of the President. Commissions like the Federal Maritime Commission are independent federal agencies. The President nominates Commissioners who then must be confirmed by the Senate. The FMC comprises five Commissioners, who serve staggered 5 year terms. Doyle explains the process further, saying, “I have been confirmed twice, and my current term would expire in July 2018, 1-½ years past the upcoming Presidential election. With respect to policy positions and orders, the Commission is an independent agency governed by majority rule – we each cast one vote.
     
    In practice, Marad and FMC work side by side in certain areas, especially where they relate to international shipping matters and trade negotiations. With respect to bilateral maritime consultations, FMC and MARAD co-chair the U.S.-side of the bilateral. In the recent past, for example, the United States has held bilateral maritime discussions with China, Vietnam and Japan.   
     
    On any given day, Doyle leverages the full breadth of his career experiences to provide value wherever necessary on the waterfront. Looking back, he explains, “With MEBA, I negotiated hundreds of contracts, grievance adjustments and prosecuted arbitrations. I was able to draw on this experience when the West Coast PMA-ILWU contract negotiations were in full swing (late 2014 / early 2015).” Working with the White House and Secretary of Labor Tom Perez, Doyle eventually helped to bring the negotiations to a successful conclusion.         
     
    FMC: always there, on the move
    Commissioner Doyle and his colleagues get around. After managing the most recent update to the 2012 FMC Study of U.S. Inland Containerized Cargo Moving through Canadian and Mexican Seaports, Doyle also surveyed construction sites for the Panama Canal’s third set of locks – a major transit point for FMC-regulated vessel operating common carriers and a critical component to international oceanborne commerce to and from the United States.
     
    When not on the road, Doyle works with fellow Commissioners to adjudicate a backlog of cases filed with the Commission. He reports that the Commission now resolves over 90% of its cases within two years. Chances are, whether you know it or not, FMC decisions have impacted and probably benefited your maritime organization. In fact, wherever and whenever the fairness and efficiency of the U.S. international ocean transportation system comes into question and/or under pressure, the FMC typically steps in to sort it out. Quietly, efficiently and typically under the Radar – that’s the one thing you can count on in the fast-paced, ever-changing world of maritime logistics.  
     
     
    FMC Mandates at a Glance:
    • Review, Monitor ocean common carriers and marine terminal operator agreements.
    • Ensure that foreign carrier agreements do not cause substantial increases in costs or decreases in services.
    • Maintain, Review confidentially filed NVOCC Service Arrangements.
    • Provide a forum for exporters, importers, shipping public to prevent impediments to ocean commerce.
    • Ensure tariff rates, charges are published in private, automated tariff systems and electronically available.
    • Monitor rates, charges, and rules of government-controlled carriers to ensure they are just & reasonable.
    • Address unfavorable conditions caused by foreign government or business practices.
    • Protect the public from financial harm.
    • Resolve disputes involving shipment of cargo, personal or household goods
    • Resolve disputes between cruise vessel operators and passengers.
    • Investigate & rule on rates, charges, classifications complaints.
    • License shipping companies with appropriate character & adequate financial responsibility.
    • Identify and hold regulated entities accountable for mislabeling cargo.
    • Ensuring that cruise lines maintain financial responsibility to pay various passenger claims.
     
     
    (As published in the Q3 2016 edition of Maritime Logistics Professional)
  • , perhaps that’s because its scope of oversight reaches many sectors of maritime business; some more obscure than others. In February, we caught up with FMC commissioner William P. Doyle, who provided the perfect primer on this important agency. What does it take to become a Federal Maritime Commissioner

  • tirelessly to meet consumer and manufacturing demand.Early on in the response to COVID-19, I asked my fellow Commissioners and Federal Maritime Commission (FMC) staff to identify any regulatory relief our agency could grant that might make a difference to American shippers and consumers, ocean carriers, non-vessel

  • The Federal Maritime Commission (FMC) will be busy in the next few months investigating a host of countries for unfair shipping practices. Under the Omnibus Trade Act of 1988 and the Shipping Act of 1984, the FMC has the authority to combat practices by foreign governments which create unfair trade

  • The Marine and Rail Equipment Division of FMC Corporation, Portland, Ore., received a c o n t r a c t r e c e n t l y from Puget Sound Freight Lines, Inc., Seattle, Wash., for construction of an oceangoing deckhouse barge. The 253-foot barge has a 4,400- ton capacity to carry newsprint and other

  • In an effort to effect regulatory change, the Federal Maritime Commission (FMC) has issued three notices of proposed rulemaking to amend certain FMC regulations. Docket No. 92-26 proposes an amendment to regulations that exempt certain marine terminal barge operators form Shipping Act tariff filing

  • trade, as well as a detailed survey of the attitudes of Virgin Islands shippers toward the quality of the ocean transportation services they utilize. FMC Chairman Richard J. Daschbach o b s e r v e d that the study "should provide additional information required for enlightened regulation of the maritime

  • The Marine and Rail Equipment Division of FMC Corporation, Portland, Ore., r e c e n t ly launched the fourth in a series of four of the world's largest r o l l - o n / r o l l - o f f (ro/ro) barges. The 580-foot-long t r i p l e - d e ck trailer barge (shown above) was delivered in December to her

  • is also money to start a long-term NOAA fleet modernization and replacement program. Conferees compromised on an appropriation of $17.6 million for the FMC, with an instruction that the agency fill its vacant New Orleans district director position as soon as possible. They approved nearly $234 million for

  • Coffin Turbo Pump, a Division of FMC Corporation, has signed a letter of intent to manufacture and distribute Turbo Charger Union b.v. (TCU) turbochargers in the U.S., announced John Burrows, operation manager. TCU is based in Amsterdam, Holland, and has produced turbochargers for diesel engines

  • FMC Corporation launched an oceangoing tank barge recently at the Marine and Rail Equipment Division in Portland, Ore. The vessel, named Barge 4506 (shown above), was christened by Mrs. Roy D. Jurgensen, wife of Crowley Maritime Corporation's senior vice president and general manager of the Northwest

  • FMC Corporation recently laid the keel that began construction of an oceangoing tank barge at the Marine and Rail Equipment Division in Portland, Ore. This is the second of two sister barges being built by FMC for Crowley Maritime Corporation. The barges, each measuring 400 feet long by 99 feet 6

  • MN Nov-22#18 , Federal Maritime Commission (FMC), and 
in leadership will)
    November 2022 - Marine News page: 18

    the U.S. Coast Guard (USCG), Maritime Administration of the House and Senate, there is a guarantee that changes (MARAD), Federal Maritime Commission (FMC), and in leadership will occur in some of the key Congressional certain aspects of the U.S. Army Corps of Engineers (US- leadership positions that

  • MN Apr-22#17  between the United States  the FMC already possesses this)
    April 2022 - Marine News page: 17

    since January 2020, and tion service or increase in transportation costs. Notably, increased rates for freight shipping between the United States the FMC already possesses this authority, which it has and Asia by over 1,000% over the same period.” Finally, the rarely exercised. In addition, the bill

  • MN Apr-22#16  these ob-
Maritime Commission (FMC) and Department of Justice)
    April 2022 - Marine News page: 16

    as 1,000 percent a White House-endorsed agreement between the Federal and made record pro? ts.” The President followed these ob- Maritime Commission (FMC) and Department of Justice servations by “announcing a crackdown on those compa- (DOJ), multiple pieces of legislation, and a vigorous hear- nies overchargi

  • MN Mar-22#43  roles as sec-
Vekich Swon in as FMC 
retary and treasurer.)
    March 2022 - Marine News page: 43

    People & Companies Fuentes who will serve dual roles as sec- Vekich Swon in as FMC retary and treasurer. Each will hold their Commissioner positions for a two-year term. Max Vekich was sworn-in as a Com- Vekich Kastner missioner of the Federal Maritime Com- New Leaders at MITAGS mission for a term

  • MR Sep-21#48  
management platform with the FMC, as the agency looks at)
    September 2021 - Maritime Reporter and Engineering News page: 48

    track to move a record nearly 11 million TEU in 2021, has announced that it will be sharing data from its Port Optimizer data management platform with the FMC, as the agency looks at removing supply chain bottlenecks. The port’s Executive Director, Gene Seroka, has long championed the idea of a nationwide

  • MR Sep-21#47  
July announcement from the FMC that it would be examining)
    September 2021 - Maritime Reporter and Engineering News page: 47

    the week just prior to the introduction of OSRA 2021, the carriers and shippers were already jousting. Shortly after a late July announcement from the FMC that it would be examining the actions of nine large carriers serving U.S. markets concerning detention and demurrage charges, a Pennsylvania- based

  • MR Sep-21#46  an early 
Maritime Commission (FMC) to initiate investigations)
    September 2021 - Maritime Reporter and Engineering News page: 46

    2021. The The bill would beef up the enforcement powers of the Federal Biden administration had included liner shipping in an early Maritime Commission (FMC) to initiate investigations into de- murrage and detention issues (frequent subjects of complaints July Executive Order (EO) titled “Promoting Competition

  • MR Sep-21#44  CONTAINERSHIPPING CHALLENGES
FMC: 
Ocean 
Shipping 
Challenges)
    September 2021 - Maritime Reporter and Engineering News page: 44

    SHIPPING & PORTS CONTAINERSHIPPING CHALLENGES FMC: Ocean Shipping Challenges Abound Photo courtesy Port of Los Angeles 44 Maritime Reporter & Engineering News • September 2021 MR #9 (34-49).indd 44 9/7/2021 10:36:21 AM

  • MR Feb-21#17  Act re-
quires the FMC to annually submit to Congress)
    February 2021 - Maritime Reporter and Engineering News page: 17

    Relief Program as well as a Tanker Security Fleet Program. Federal Maritime Commission The Federal Maritime Commission Authorization Act re- quires the FMC to annually submit to Congress reports that describe the Commission’s progress toward addressing the issues raised in each un? nished regulatory

  • MR Feb-21#16  Federal Maritime Commission (FMC).
The Coast Guard Authorization)
    February 2021 - Maritime Reporter and Engineering News page: 16

    maritime sections, including Authorization Acts for the Coast Guard (USCG), the Maritime Administration (MARAD), and the Federal Maritime Commission (FMC). The Coast Guard Authorization Act allows for acquisition of thority of a coastal state beyond its territorial sea. an additional National Security

  • MR Oct-20#25  and the U.S. Coast Guard. 
The FMC’s Shipping Act concern)
    October 2020 - Maritime Reporter and Engineering News page: 25

    “The mis-declaration of hazardous materials is an area where we work in cooperation with Customs and Border Protection and the U.S. Coast Guard. The FMC’s Shipping Act concern is the market fraud when a shipper declares to a common carrier in its shipping documents that the tendered cargo is some

  • MR Oct-20#24  SHIPPING & PORT ANNUAL
FMC: Ocean Shipping 
Challenges)
    October 2020 - Maritime Reporter and Engineering News page: 24

    Insights | Federal Maritime Commission 2020 SHIPPING & PORT ANNUAL FMC: Ocean Shipping Challenges Abound By Michael A. Khouri, Chairman, Federal Maritime Commission ince early Spring 2020, American consumers have the earliest phase of this Fact Finding, Commissioner Dye and received a practical

  • MR Oct-20#4  
Connor Maritime Commission (FMC). of technical, operational)
    October 2020 - Maritime Reporter and Engineering News page: 4

    . Khouri Martin & Ottaway, a marine consulting Michael A. Khouri is Chairman, Federal ? rm that specializes in the resolution Connor Maritime Commission (FMC). of technical, operational and ? nancial Christopher J. Connor is President and issues in maritime. CEO of AAPA. MacLennan Rod MacLennan is North

  • MR Oct-20#2 . 
  
  by Michael A. Khouri, FMC
 By Elaine Maslin 
26 U)
    October 2020 - Maritime Reporter and Engineering News page: 2

    seismic operations isn’t that dissimilar to 24 Ocean Shipping Challenges managing – and protecting – port facilities. by Michael A. Khouri, FMC By Elaine Maslin 26 U.S. Ports & COVID-19 by Christopher J. Connor, AAPA 42 Diversity Drives Growth in Milwaukee 28 Cargo Fumigation Adam Tindall-Sc

  • MR Jun-20#18  and a  the U.S.-fag feet.  The FMC unanimously voted to accept)
    June 2020 - Maritime Reporter and Engineering News page: 18

    have Federal Maritime Commission alleging discrimination against shuttered amid a decrease in overall demand for power and a the U.S.-fag feet. The FMC unanimously voted to accept the broad switch to natural gas-powered generating plants and re- petition and initiate an investigation into the allegations

  • MN Jun-20#57  almost 50 million tons an-
(FMC) Commissioner Rebecca Dye)
    June 2020 - Marine News page: 57

    presented its Person of the Year ration. The combination of Rand and award to Federal Maritime Commission ASC moves almost 50 million tons an- (FMC) Commissioner Rebecca Dye. nually of dry bulk commodities such as The trade group said it honored Com- iron ore, coal and limestone on vessels missioner

  • MN Feb-20#8 . He is 
Maritime Commission (FMC),  a freelance writer and)
    February 2020 - Marine News page: 8

    con? rmed Presidential tions, to businesses across Volume 31 Number 2 appointee to the U.S. Federal the maritime spectrum. He is Maritime Commission (FMC), a freelance writer and regular Doyle has, over the course of contributor to this magazine. a long and celebrated career, worn many prestigious

  • MT Jan-20#33 , Ireland, is also working on a  FMC. 
www.marinetechnologynews)
    January 2020 - Marine Technology Reporter page: 33

    . XOCEAN, ROV within a Research and Develop- an Irish company, based in County ment program led by Total and Technip- Louth, Ireland, is also working on a FMC. www.marinetechnologynews.com Marine Technology Reporter 33 MTR #1 (18-33).indd 33 1/16/2020 11:33:43 A

  • MP Q4-19#27 ,	 are FMC licensed or registered)
    Nov/Dec 2019 - Maritime Logistics Professional page: 27

    Ocean Freight Forwarders and e z Freight Pricing: what you need to know. as an NV OCC since it does not hold out as either a common carrier, are FMC licensed or registered nor does it issue its house bill of lading, and would be acting much NVOCCs. The tariff rate pages like a U .S. forwarder

  • MP Q4-19#26 .  After discussing this with FMC offcials, the answer is)
    Nov/Dec 2019 - Maritime Logistics Professional page: 26

    not be a licensed or registered NVOCC. The question: Is this legal? Operating Common Carriers (NVOCCs) and customs brokers. After discussing this with FMC offcials, the answer is, “probably.” The bottom line activity is that ocean carriers are creating ben- Everything described above has regulatory risk

  • MN Jul-19#57 PRODUCTS
FMC GlobalSat Broadband
Access for Inland Cruise)
    July 2019 - Marine News page: 57

    PRODUCTS FMC GlobalSat Broadband Access for Inland Cruise Vessel FMC GlobalSat’s reliable, secure, and cost-effective connectivity so- lutions for maritime customers has been chosen to provide its 4G/LT- SAT (Long-term Satellite) connec- tivity solution aboard all four Amer- Dometic’s Titanium VARCX

  • MR Apr-19#60  and 401-K. Send resume to fmc@fmcnewor- ans Employment)
    April 2019 - Maritime Reporter and Engineering News page: 60

    ? ts vice Mariner (CIVMAR) eligible to apply under the Veter- Job Location: 6353 Center Drive building 8, Suite 202 incl. Health and 401-K. Send resume to fmc@fmcnewor- ans Employment Opportunities Act (VEOA). Active Duty Norfolk, VA, 23502 USA leans.com Service Members (ADSMs) must submit a certi? cation

  • MR Feb-19#11  contracting with nongov-
FMC Provisions placement of)
    February 2019 - Maritime Reporter and Engineering News page: 11

    sel repair, and administration of contracts mittees have been codifed. to procure data and to develop a strategy for increased contracting with nongov- FMC Provisions placement of buoys related to the move- knowingly and willfully accepting cargo ernmental entities for hydrographic data Title VII of the

  • MN Feb-19#16  Construction has 
sioner at the FMC and speak about “what was)
    February 2019 - Marine News page: 16

    suction dredge at C&C Marine lawyers would come into my offce when I was a Commis- Shipyard. It doesn’t end there. Manson Construction has sioner at the FMC and speak about “what was good” and commenced the design phase on a large-scale, self-pro- “what needed to be done.” I made it known to them early