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54-643: The Federal Maritime Commission ( FMC ) is an independent agency of the United States government that regulates U.S. oceanborne transportation and the United States Merchant Marine . It is chaired by Daniel B. Maffei. The FMC was established as an independent regulatory agency by Reorganization Plan No. 7, effective August 12, 1961. Prior to that time, the United States Federal Maritime Board

108-448: A commission, board, or similar collegial body consisting of five to seven members who share power over the agency. (This is why many independent agencies include the word "Commission" or "Board" in their name.) The president appoints the commissioners or board members , subject to Senate confirmation, but they often serve terms that are staggered and longer than a four-year presidential term, meaning that most presidents will not have

162-649: A corporation had been set during the construction of the Panama Canal during which the Panama Railway Company was charged with much of the construction and had its stock entirely owned by the US Secretary of War . The Shipping Act had explicitly empowered the board to found such a company, which was done with issuance of $ 50,000,000 in stock all initially held by the board; the majority portion had to be retained, and another provision required

216-648: A history, see United States Shipping Board . Independent agency of the United States government [REDACTED] [REDACTED] In the United States government , independent agencies are agencies that exist outside the federal executive departments (those headed by a Cabinet secretary) and the Executive Office of the President . In a narrower sense, the term refers only to those independent agencies that, while considered part of

270-600: A massive wartime program. Though it was sometimes referred to as the War Shipping Board, the official title remained the United States Shipping Board. The board was to address the shortage of shipping through acquisition of existing hulls and, with the declaration of war by the United States on Germany on 6 April 1917, a construction program through its Emergency Fleet Corporation (EFC) was created 16 April. The precedent for using such

324-426: A maximum of three terms. If they were initially appointed to fill a vacancy for an unexpired term, they may serve three terms in addition to that initial partial term. The President designates one of the commissioners as Chairman, who serves as the chief executive and administrative officer of the commission. List of commissioners as of September 11, 2024: President Biden has nominated the following to fill seats on

378-581: A minor factor. A Maritime Intelligence Department in the division and a separate Division of Planning and Statistics collected and analyzed shipping data to help determine what level of shipping was necessary for commerce and how much could be shifted to the war effort. As of 1 June 1917, the USSB established a recruiting service with headquarters in Boston , with the first of an eventual 43 training centers, in recognition that traditional methods were too slow for

432-526: A narrower sense, the term independent agency refers only to these independent regulatory agencies that, while considered part of the executive branch, have rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or a member is limited. Independent agencies can be distinguished from the federal executive departments and other executive agencies by their structural and functional characteristics. Their officers can be protected from removal by

486-406: A person that (i) in the United States, dispatches shipments from the United States via a common carrier and books or otherwise arranges space for those shipments on behalf of shippers and (ii) processes the documentation or performs related activities incident to those shipments. The FMC regulations define "NVOCC" as a common carrier that does not operate the vessels by which the ocean transportation

540-459: A term of two years. The members of the board gathered in Washington in the first week of January 1917 to plan and organize while they awaited confirmation, which came in late January. The board's formal organization was on January 30. US vessels had suffered a disadvantage, and the laws passed by Congress had in some cases had the effect of giving advantage to European shipping, instead of

594-720: Is provided, and is a shipper in its relationship with an ocean common carrier. Licensing requirements OTIs must be licensed by the FMC before they perform OTI services in the United States. Requirements for licensing are found at 46 CFR §§ 515.11-515.27. The FMC regulations define duties with which OTIs must comply at 46 CFR §§ 515.31-515.34. The FMC regulations set out certain rules regarding fees that freight forwarders may charge to their customers and compensation that freight forwarders may receive from carriers at 46 CFR §§ 515.41-515.91. Responsibility for U.S. merchant shipping has been held by different federal agencies since 1917. For

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648-600: The Great Lakes built ships, originally War Bayonet , which became USS Lake Superior for the first war and USS Tuluran for the second. Others among the ships found service in the next war; for example, War Dido was torpedoed and sunk as Empire Springbuck in 1941, and War Dragon was seized by Japan and sunk as Renzan Maru by USS  Porpoise on 1 January 1943. Some being built for domestic shippers had long careers, with Orizaba and Oriente being examples. The Board's construction program, most notably

702-554: The Hog Islander ships, was executed through the Emergency Fleet Corporation, which it established on 16 April 1917. The shipbuilding program was concluded with the 9 May 1922 delivery of the ship completed and delivered as Western World , launched as Nutmeg State 17 September 1921, by Bethlehem Shipbuilding Corporation at Sparrows Point, Maryland . When ships were delivered from the builder to

756-908: The Securities and Exchange Commission , the Federal Reserve , the Commodity Futures Trading Commission , the Federal Deposit Insurance Corporation , and the Consumer Financial Protection Bureau . Generally, the heads of independent regulatory agencies can only be removed for cause, but Cabinet members and heads of independent executive agencies, such as the head of the Environmental Protection Agency , serve "at

810-695: The U.S. Department of Transportation ). The passage of the Shipping Act of 1984 brought about a major deregulatory change in the regulatory regime facing shipping companies operating in the U.S. foreign commerce. The subsequent passage of the Ocean Shipping Reform Act of 1998, with its further deregulatory amendments and modifications to the Shipping Act of 1984, represented another pro-market shift in shipping regulation. The principle statutes or statutory provisions administered by

864-525: The US president with confirmation by the US Senate as the United States Shipping Board (USSB) to acquire and construct suitable vessels and to create corporations under its control to execute the programs. In essence, the board was given "complete control over American ships and shipping." US President Woodrow Wilson made public his nominations for the board on December 22, 1916, with some dissatisfaction in

918-426: The executive branch , have regulatory or rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or a member is limited. Established through separate statutes passed by Congress , each respective statutory grant of authority defines the goals the agency must work towards, as well as what substantive areas, if any, over which it may have

972-707: The Commission are: the Shipping Act of 1984, the Foreign Shipping Practices Act of 1988, section 19 of the Merchant Marine Act, 1920, and Public Law 89-777. Most of these statutes were amended by the Ocean Shipping Reform Act (OSRA) of 1998, which took effect on May 1, 1999, and the Ocean Shipping Reform Act of 2022. The commission is composed of five commissioners, appointed by the President by and with

1026-561: The EFC. Shipbuilding before America entered the war had been expanded to some extent, with domestic shipping companies replacing ships withdrawn from trade by belligerents and both the United Kingdom and neutral countries contracting for ships in US yards. The UK had contracted for ships through private British companies for security and for US neutrality needs. In March 1917, just before

1080-564: The US entered the war and the USSB shifted to full wartime operations, there were about 700,000 tons of new construction underway for the private US owners, and all 234 building ways in the US were occupied by either those or by ships for neutral and domestic shipping lines. There was no possibility for a quick expansion of capacity to incorporate the USSB/EFC shipbuilding program. The most readily available hulls were 91 German vessels of 594,696  GRT aggregate tonnage refurbished for use by

1134-417: The US registry and operate under the US flag and to repeal certain penalties for those using foreign-built vessels. The net effect was negligible as shipbuilding in the United States declined almost equally with the benefits gained. The US entered the war just over two months after the board had begun its work, which completely changed its focus from generally strengthening the nation's maritime position to

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1188-471: The US yards for ships over 2,500  DWT . The first order was signed by Chairman Hurley on 3 August 1917, to be executed by the EFC to secure control of the shipyards and construction already underway. The action was immediately protested by nearly every shipyard and owner of the ships under construction, with the foreign owners protesting through the US State Department . A large number of

1242-765: The USSB and under legislation of 12 May 1917 and an executive order of 30 June 1917 giving the USSB formal power to seize the vessels and enter them into the US registry. The report of December 1918 showed one Austrian steamer, 87 German steamers that now included four from Cuba, and seven sailing vessels seized. Some of Germany's premier liners, such as Amerika , George Washington , Kronprinzessin Cecilie , Astoria , Pensacola , Aeolus , Mercury , Pocahontas , Powhatan , Prinz Eitel Friedrich , Republic , President Lincoln , Kaiser Wilhelm II , Antigone , Rhein , Kronprinz Wilhelm , Covington , Friedrich der Große and Vaterland , were among

1296-474: The USSB was initially the head of the EFC, but the General Manager had all real authority except the power to sign contracts. The division of authority between the USSB and the EFC and the construction program's direction led to conflict between USSB Chairman Denman and EFC General Manager Major-General George Washington Goethals . That resulted in the resignation of both men and the reconstitution of

1350-420: The USSB withdrew from the commission agreement and decided to deal with shipping workers directly. The commission ceased operations on October 1, 1920. The USSB operated a shipping business with its surplus ships until 1920, when the overseas freight market collapsed, and it began to lay up its vessels. In 1925, Henry Ford bought 199 of the out-of-service ships for $ 1,697,470 as part of an investigation into

1404-575: The USSB, they came under the management of the Division of Operations, which allocated them to the US War Department , US Navy Department , or commercial service, based on needs and the class and type of ship. By December 1918, the division had become the largest ship operating entity in US history, with a total fleet of 1,386 vessels totaling 7,498,075  DWT owned outright, managed, or chartered. For more control of traffic required by

1458-433: The adjustment and control of wages, hours, and conditions of labor in the loading and the unloading of vessels. In 1918, the initial operation and policies of the commission was agreed to between the USSB and the following parties: Subsequently, additional shipping companies and labor organizations entered the agreement with modifications. William Z. Ripley was chairman of the commission from 1919 to 1920. In July 1920,

1512-483: The advice and consent of the Senate. It is a bipartisan commission, so no more than three commissioners may be appointed from the same political party. The term of each commissioner is five years, with one term ending every year on June 30. When the term of a commissioner ends, the commissioner may continue to serve until a successor is appointed and qualified, but for a period not to exceed two years. Commissioners may serve

1566-465: The board and the corporation. The new USSB composition, which remained throughout the war was Edward N. Hurley as chairman, with Raymond B. Stevens replacing James B. White as vice-chairman and John Donald, Bainbridge Colby and Charles R. Page as members. Rear Admiral Washington L. Capps , formerly Constructor of the Navy and Chief of the Navy's Bureau of Construction, became the General Manager of

1620-466: The commission. They await Senate confirmation. List of bureaus and offices: Regulations of the FMC are found at 46 C.F.R. Chapter IV. The FMC regulations regulate the activities of Ocean Transport Intermediaries (OTIs) in the US. The FMC regulations define OTI to include two classes of logistics service providers: (1) ocean freight forwarders and (2) non-vessel operating common carriers (NVOCCs). The FMC regulations define "ocean freight forwarder" as

1674-613: The commissioners – the Appointments Clause of the Constitution vests that power in the president. The Senate does participate, however, in appointments through " advice and consent ", which occurs through confirmation hearings and votes on the president's nominees. These agencies are not represented in the cabinet and are not part of the Executive Office of the president: Although not officially part of

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1728-552: The contracts and ships under construction for foreign accounts were for the United Kingdom, and the protest was solved with the British government's agreement that the ships would be used in the total war effort. With one exception, a new ship from Union Iron Works that had already loaded for departure, War Sword , the contracts and the ships were requisitioned. Out of 431 such ships, totaling 3,068,431  DWT , 414 of

1782-484: The desired effect of making the country no longer heavily dependent on foreign shipping. With the outbreak of war in Europe, the national fleets of the warring countries became involved in those countries' wartime efforts and were withdrawn from commercial trade, which was vital to US commerce. One initial step was granting authority to the president to allow registration of foreign-built ships owned by US companies to enter

1836-581: The executive branch, these agencies are required by federal statute to release certain information about their programs and activities into the Federal Register , the daily journal of government activities: [REDACTED]  This article incorporates public domain material from Independent Agencies . USA.gov . United States Shipping Board The United States had a maritime position that had been eroding for decades with some congressional concern. Some remedies actually worsened

1890-415: The governing statute, but the functional differences have more legal significance. In reality, the high turnover rate among these commissioners or board members means that most presidents have the opportunity to fill enough vacancies to constitute a voting majority on each independent agency commission within the first two years of the first term as president. In some famous instances, presidents have found

1944-712: The independent agencies more loyal and in lockstep with the president's wishes and policy objectives than some dissenters among the executive agency political appointments . Although Congress can pass statutes limiting the circumstances under which the president can remove commissioners of independent agencies, if the independent agency exercises any executive powers like enforcement, and most of them do, Congress cannot reserve removal power over executive officers to itself. Constitutionally, Congress can only remove officers through impeachment proceedings. Members of Congress cannot serve as commissioners on independent agencies that have executive powers, nor can Congress itself appoint

1998-452: The industry. One of the USSB organizations that as specifically concerned with the issue was the Marine and Dock Industrial Relations Division, which was to coordinate all labor related matters, and by late 1918, industry and labor had begun referring disputes to the board and thus avoided any stoppages. The National Adjustment Commission was established in 1917 as an adjunct to the USSB for

2052-442: The opportunity to appoint all the commissioners of a given independent agency. In addition, most independent agencies have a statutory requirement of bipartisan membership on the commission, so the president cannot simply fill vacancies with members of his own political party. The president can normally designate which commissioner will serve as the chairperson. Congress can designate certain agencies explicitly as "independent" in

2106-419: The pleasure of the president" and can be removed without cause. The degree to which the President has the power to use executive orders to set policy for independent executive agencies is disputed. Many orders specifically exempt independent agencies, but some do not. Executive Order 12866 has been a particular matter of controversy; it requires cost-benefit analysis for certain regulatory actions. In

2160-545: The power of rulemaking. These agency rules (or regulations), when in force, have the power of federal law. Independent agencies exist outside the federal executive departments (those headed by a Cabinet secretary) and the Executive Office of the President. There is a further distinction between independent executive agencies and independent regulatory agencies, which have been assigned rulemaking responsibilities or authorities by Congress. The Paperwork Reduction Act lists 19 enumerated "independent regulatory agencies", such as

2214-483: The power to remove officials from agencies that were "an arm or an eye of the executive", it upheld statutory limitations on the president's power to remove officers of administrative bodies that performed quasi-legislative or quasi-judicial functions, such as the Federal Trade Commission. Presidents normally do have the authority to remove regular executive agency heads at will , but they must meet

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2268-466: The president, they can be controlled by a board that cannot be appointed all at once, and the board can be required to be bipartisan. Presidential attempts to remove independent agency officials have generated most of the important Supreme Court legal opinions in this area. In 1935, the Supreme Court in the case of Humphrey's Executor v. United States decided that although the president had

2322-475: The rapid wartime expansion for deck officers, at Cambridge, Massachusetts on 4 June. A second set of schools was created for engineering officers with those engineers destined for turbine powered ships being sent to the builders of turbines for training. The early result, between 1 June 1917 and 1 October 1918 was 11,618 licensed officers. The officer training was expanded to training for crew, deck sailors, firemen, wipers, cooks, and stewards by December 1917 and

2376-558: The requisitioned were completed after cancellations of some contracts for ships of unwanted design that were in early stages of construction or not yet laid down. A very large group of these ships, contracted with names prefixed with "War" and renamed before completion, were being built for the British Shipping Controller of Ministry of Shipping under various shipping line contracts. Examples of such ships are War Topaz , which became USS West Bridge , and one of

2430-843: The secondary use of materials. The first ship reached the Ford River Rouge Complex in November, and all of the remaining ships were broken down and recycled the following summer. The USSB was abolished effective March 2, 1934. Its successor agencies have been the US Shipping Board Bureau of the US Department of Commerce (1933–36); the US Maritime Commission (1936–50); the US Federal Maritime Board of

2484-422: The seized ships. On 15 November 1917, the USSB authorized negotiations with foreign countries that had seized German or Austrian ships with actual discussions that continued until January 1918. The result was the charter or the outright purchase of a number of ships interned from South America to China. The USSB's first action regarding new construction was commandeering every contract, hull, and even steel in

2538-425: The shipping industry about particular nominees and the board's power to set ocean freight rates raising particular concern and skepticism. The initial nominees were William Denman (chairman), who was instrumental in drafting the legislation for the establishment of the board for a term of six years, Bernard N. Baker for five years, John A. Donald for four years, James B. White for three years, and Theodore Brent for

2592-479: The situation since European shipping companies dominated overseas trade, and just over 10% of the value of trade carried in American-owned ships. The 1916 Act was the result of congressional efforts to create a board to address the problem dating from 1914. The legislation was not then a part of any war effort with specific intent, as stated in the act: A board of five commissioners was to be appointed by

2646-409: The statutory requirements for removal of commissioners of independent agencies, such as demonstrating incapacity, neglect of duty , malfeasance , or other good cause . While most executive agencies have a single director, administrator, or secretary appointed by the president of the United States , independent agencies (in the narrower sense of being outside presidential control) almost always have

2700-421: The trustees of the EFC to hold stock. During the war, Congress granted the president extraordinary wartime powers, which were used by means of Executive Orders to expand the board's authority and its corporation. The board, as a regulatory and policy body, executed its programs largely through the EFC, a separate entity that was fully under the policy control of the majority stockholder, the board. The Chairman of

2754-422: The war effort required nitrates from the west of the continent. The board's efforts were directed to shift the balance. Enforcement of rates was strict and at one point, before wide compliance, 136 steamers were held in US ports. By December 1918, the USSB directly controlled such a large portion of US shipping through ownership and charter that the USSB's prewar rate-setting regulatory function had largely become

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2808-447: The war effort, methods applied by the British were employed in which rates were adjusted and control was exercised through the division's Chartering Committee, whose approval was necessary to obtain license to refuel in US ports. With American-registered ships already under tight control, those regulations were largely directed at neutrals. A specific example was the preferred trade by neutrals in manganese with eastern South America when

2862-437: Was open to all male citizens of the ages 18 to 20 or 32 to 35 with a goal expanded from an estimated 85,000 to 200,000 because of the revised estimates of ships by the end of the war. To ensure that labor problems did not disrupt necessary war shipping, the USSB employed special labor consultants and entered agreements with labor and other government agencies to resolve labor disputes directly and also to standardize wages across

2916-590: Was responsible for both the regulation of ocean commerce and the promotion of the United States Merchant Marine. Under the reorganization plan, the shipping laws of the U.S. were separated into two categories, regulatory and promotional. The newly created FMC was charged with the administration of the regulatory provisions of the shipping laws, while the promotional role was vested in the Maritime Administration (now part of

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