Regulated MTO Activities

The scope of the FMC authority to regulate the activities of an individual MTO is generally defined in terms of  activities prohibited under the Shipping Act of 1984 such as unreasonably refusing to deal or negotiate with a carrier customer or shipper customer 46 U.S.C. App.1709(b)(10);  failing to establish just and reasonable regulations for receiving, handling and delivering cargo  46 U.S.C. App. 1709(d)(1); or giving an unreasonable preference or advantage to one customer over another. 46 U.S.C. App. 1709(d)(4).  

The Commission regulates agreements among MTOs and among one or more MTOs and one or more ocean common carriers to:  discuss, fix, or regulate rates or other conditions of service; or engage in exclusive, preferential, or cooperative working agreements, to the extent that such agreements involve ocean transportation in the foreign commerce of the United States.  46 U.S.C. app. § 1703(b).  Such agreements generally must be filed with the Commission, although there are exemptions from the filing requirement for certain arrangements, such as terminal services and facilities agreements, and from the waiting period requirements of the Shipping Act for certain other MTO agreements.  46 CFR § § 535.308, 535.309, 535.310.  Such agreements are otherwise generally subject to the same regulation and requirements placed on agreements between or among ocean common carriers.