The Shipping Act is the main law that regulates common carriers
both vessel and non-vessel operating (NVOCCs) as well as marine
terminal operators (MTOs) for orderly growth of maritime commerce
in the U.S. The ocean carriers and other corporate entities which
enter into cooperative agreements were mandated to justify those
agreements to the Federal Maritime Commission, which often made the
approval process time-consuming.
Since 1961 when the FMC was established, it ensures that neither
the business activities of liner shipping groups, laws of foreign
government or regulations impose an unfair cost burden on the U.S.
exporters, or U.S. consumer of imported goods. Therefore, FMC
strives to maintain an efficient and competitive international
ocean transportation market by gauging the agreements between ocean
common carriers and MTOs and create level playing field for the
industry players.
