FMC Issues Its FY 2007 Performance and Accountability Report

The following are highlights of the FMC's performance goals that were discussed in the report (see report for complete listing and full details):

OTI Monitoring/Audit Program Expanded

FMC has completed its FY 2007 goal of expanding the ocean transportation intermediary (OTI) monitoring/audit program to regularly monitor non-vessel-operating common carriers (NVOCCs) and ocean freight forwarders.

In the past year, the number of audits completed increased to 140. The large majority of these were handled as compliance matters. In some cases, the audited company was found to be in compliance. In others, the company took prompt corrective action and the audit was closed without further action. In some instances where more serious violations were found and/or where corrective action was not taken, it was necessary to open an investigation on the basis of the audit findings.

Electronic Payment of User Fees to Be Implemented Through Pay.gov

The FMC's FY 2007 goal of electronic payment of user fees has been reconsidered. FMC has determined that implementation of electronic payments of all types (e.g., fines and penalties in addition to user fees) would best be accomplished through the Department of the Treasury's Pay.gov.

The implementation of Pay.gov has been made a performance goal for FY 2008.

Integration of CADRS Compliant Database with Other Agency Databases Ongoing

The FMC's FY 2007 goal to integrate the Office of Consumer Affairs and Dispute Resolution Services (CADRS) complaint database with other agency databases has not been completed. CADRS receives and works to resolve informal complaints from participants in the shipping industry.

FMC has substantially completed the goal of integrating the CADRS complaint database with other agency databases. CADRS staff worked with agency information technology staff to completely redesign the CADRS database into a Structured Query Language (SQL) format.

Once this effort was completed, relevant portions of the CADRS database were made available on an agency-wide basis to FMC personnel. This allows agency personnel to compare data from the CADRS database with data availablefrom other agency databases. As other agency databases are converted to SQL format, the CADRS database will be fully integrated into other relevant agency databases, thus allowing data comparison to be performed congruently.

The full integration of the data will be completed by the end of FY 2008, when other relevant agency databases are fully converted to the SQL format.

Development of "Best Practices" for VOCCs to Include NVOCCs

FMC's goal of providing an opportunity for VOCCs to establish a "best practices" program to limit participation of unlawful entities in ocean transportation has not been fully achieved. However, the original goal of developing a "best practices" program for ocean carriers was revised and enlarged to include NVOCCs.

The principles and model provisions, developed earlier, have been informally discussed with ocean carriers and NVOCCs. The model provisions may, however, need to be revised further based on the FMC's decision in Docket No. 06-09, In the Matter of the Lawfulness of Unlicensed Persons Acting as Agents for Licensed Ocean Transportation Intermediaries. The model provisions, revised as necessary, are scheduled for FMC review in the second quarter of FY 2008

Electronic Method for Filing OTI Applications (FMC-18) Available

In FY 2007, FMC completed the development of an automated Form FMC-18 system for filing OTI licenses.

Applicants and filers may electronically enter data into the automated Form FMC-18 with supporting documentation submitted as scanned attachments. The use of the automated system is not required; interested parties may continue to submit Form FMC-18 in paper format.

(See ITT's Online Archives or 08/17/07 news, 07081710, for BP summary announcing the optional method for filing OTI applications.)

Next Generation Internet Upgrade Ongoing

FMC has not completed its goal to implement a new Internet upgrade. The Office of Management and Budget requires that federal agencies implement the next-generation Internet protocol (version 6 - "IPv6") by June 2008.

The FMC has developed an inventory of existing Internet protocol capable equipment and has determined costs for upgrading its IT infrastructure to support IPv6. Procurement of infrastructure upgrades, including a redundant firewall, routers and other hardware, was effected in FY 2007.

FMC plans to integrate and test this new hardware during the first two quarters of FY 2008, leading to on-time government-wide implementation.

Unlicensed OTI Activity in Household Goods Trade Addressed

FMC achieved its goal of effectively addressing unlicensed OTI activity of entities participating in international ocean transportation of household goods.

FMC instituted formal proceedings against nine unlicensed, unbonded NVOCCs holding out service to household goods shippers. Injunctions were obtained in federal district court barring the unlawful operations of the companies still active. Formal proceedings were also instituted against three licensed NVOCCs that had been providing service to the unlicensed companies.

Since FMC began pursuing these initiatives, the number of complaints received by the agency's alternative dispute resolution office from household goods shippers has declined significantly.

(See ITT's Online Archives or 12/06/06 news, 06120625, for BP summary of FMC reversing an administrative law judge's initial decision approving two proposed settlement agreements with four of the nine respondents in an FMC investigation.)

FMC Also Issues Its FY 2007 "Management's Discussion and Analysis" Report

FMC has also issued its FY 2007 Management Discussion and Analysis Report, which represents the completion of FMC's program and financial management process for FY 2007.

FMC FY 2007 Performance & Accountability Report (published 11/15/07) available at http://www.fmc.gov/UserFiles/pages/File/Federal_Maritime_Commission_2007_PAR_(1).pdf

FMC FY 2007 Management's Discussion and Analysis Report (dated 11/15/07) available at http://www.fmc.gov/UserFiles/pages/File/Federal_Maritime_Commission_2007_Managements_Discussion_and_Analysis.pdf