Fact Finding Investigation No. 21; Activities of the Trans- Atlantic Agreement and Its Members; Amended Order of Investigation

FEDERAL MARITIME COMMISSION

Fact Finding Investigation No. 21; Activities of the Trans-

Atlantic Agreement and Its Members; Amended Order of Investigation

On July 27, 1994, pursuant to sections 5, 6, 8, 10, 11, 12 and 23

of the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1704, 1706,

1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of Title 46 of

the Code of Federal Regulations, 46 CFR 502.281, et seq., the Federal

Maritime Commission (``Commission'') issued an order (``July 27

Order'') to institute a nonadjudicatory investigation into the

practices of the Trans-Atlantic Agreement (``TAA'') and its member

lines. Recent events have demonstrated a need to clarify and amend

various parts of the July 27 Order as explained below.

On July 5, 1994, the TAA member lines filed amendments to the TAA,

including a change of the conference's name to the Trans-Atlantic

Conference Agreement (``TACA'').\1\ As noted in footnote 1 of the July

27 Order, the Commission intended that this nonadjudatory investigation

would continue if TACA became effective. On October 24, 1994, TACA

became effective, with certain modifications. To ensure clarity as to

its intent regarding investigation of TACA, the Commission is revising

the first ordering paragraph of the July 27 Order to state expressly

that this nonadjudicatory investigation is to develop evidence on

whether or not TAA, TACA, and some or all of the sixteen ocean common

carriers which comprise TACA's membership\2\ may have engaged in, or

may be engaged in activities violative of various provisions of the

1984 Act, and to provide a basis for any subsequent adjudicatory,

assessment or injunctive action.

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\1\Despite this modification, the members continue to refer to

the modified agreement as TAA. For clarity, this order refers to the

modified agreement as TACA.

\2\On August 29, 1994, Hanjin Shipping Co., Ltd. became a member

of TAA (and, subsequently, of TACA); the Commission is amending the

appended list of conference member lines to include this carrier.

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By three separate orders issued this date, the Commission has

commenced adjudicatory proceedings to determine whether TAA and some or

all of its members violated various provisions of the 1984 Act in

connection with the establishment and operation of container pools;

limitations on the right of independent action; and restrictions

contained in certain vessel sharing agreements in the trans-Atlantic

trades. In view of the institution of these adjudicatory proceedings,

the Commission will not seek testimony or further evidence from TAA (or

TACA) and its members in the remainder of the Fact Finding

investigation as to the issues under adjudication.

To ensure a thorough examination of the facts regarding TACA's

implementation, and to provide adequate resources and flexibility for

addressing the issues remaining in this investigation, the Commission

is amending the July 27 Order to add a sixth Investigative Officer to

the proceeding and to give the Investigative Officers additional time

for the preparation of a final report of findings and recommendations.

The July 27 Order required issuance of a final report within 180 days

after publication of that Order. The amendment extends that deadline

for approximately two months, to March 24, 1995.

Now therefore, it is ordered, That pursuant to sections 5, 6, 8,

10, 11, 12 and 23 of the Shipping Act of 1984, 46 U.S.C. app. 1704,

1706, 1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of Title

46 of the Code of Federal Regulations, 46 CFR 502.281, et seq., the

Commission's July 27 Order is amended to preclude the Investigative

Officers from seeking additional testimony or further evidence in this

proceeding from the Trans-Atlantic Agreement (or the Trans-Atlantic

Conference Agreement), or any of its members on the following issues:

1. Whether or not TAA (or TACA) or any of its members has

violated or is violating any of the prohibited acts set forth in

section 10 of the 1984 Act by providing chassis and/or container

equipment to shippers at U.S. West Coast and interior locations

other than the carrier's designated containeryard or terminal

facility;

2. Whether or not TAA (or TACA) or any of its members has

violated or is violating section 5(b)(8), 10(a)(2), or 10(a)(3) of

the 1984 Act, or 46 CFR 572.801 of the Commission's regulations by

imposing restrictions on the right of members to take independent

action; and

3. Whether or not any of the members of TAA (or TACA), and of

agreement Nos. 203-011171, 203-011394, 203-011395, and 203-011396,

has violated or is violating section 5(b) (2) or (3) of the 1984

Act, by failing to provide reasonable and equal terms and conditions

for admission and readmission to conference membership, or by

failing to permit any member to withdraw from conference membership

upon reasonable notice without penalty.

It is further ordered, That the first ordering paragraph of the

Commission's July 27 Order is amended to read as follows:

Now therefore, it is ordered, That pursuant to sections 5, 6, 8,

10, 11, 12 and 23 of the Shipping Act of 1984, 46 U.S.C. app. 1704,

1706, 1707, 1709, 1710, 1711 and 1721, and Part 502, Subpart R of

Title 46 of the Code of Federal Regulations, 46 CFR 502.281, et

seq., a nonadjudicatory investigation is hereby instituted into the

practices of TAA (or TACA) and its member lines (including Hanjin

Shipping Co., Ltd.), listed in the Appendix to this order, to

develop the issues set forth in this order and to provide a basis

for any subsequent adjudicatory, assessment or injunctive action by

the Commission.

It is further ordered, That the first sentence of the second

ordering paragraph of the July 27 Order is amended as follows:

It is further ordered, That the Investigative Officers shall be

Wm. Jarrel Smith, Jr., Vern W. Hill, Charles L. Haslup III, Carolyn

H. Grigg, Peter J. King and Martha C. Smith of the Commission.

It is further ordered, That the third ordering paragraph of the

July 27 Order is amended as follows:

It is further ordered, That the Investigative Officers shall

issue a joint report of findings and recommendations not later than

March 24, 1995, and interim reports if it appears that more

immediate Commission action, particularly injunctive action, is

necessary, such reports to remain confidential unless and until the

Commission provides otherwise;

It is further ordered, That the Appendix of the July 27 Order is

amended. The amended Appendix is attached as an appendix to this Order;

It is further ordered, That this Amended Order of Investigation be

served on the respondents listed in the Appendix attached to this Order

and the July 27 Order be served on Hanjin Shipping Co., Ltd.;

Finally, it is ordered, That the July 27 Order is in every other

respect unchanged.

By the Commission.

Joseph C. Polking,

Secretary.

Amended Appendix

Trans-Atlantic Agreement, Meadows Office Complex, 201 Route 17

North, Rutherford, NJ 07070

Polish Ocean Lines, 1001 Durham Ave., South Plainfield, NJ 07080

Neptune Orient Lines Ltd., c/o Tricom Shipping Agency, 15 Exchange

Place, 7th Floor, Jersey City, NJ 07302

Mediterranean Shipping Company S.A., 420 5th Avenue, 8th Floor, New

York, NY 10008-2702

DSR/Senator Joint Service, 50 Cragwood Rd., South Plainfield, NJ

07080

Sea-Land Service, Inc., 150 Allen Road, Liberty Corner, NJ 07938

P&O Containers Limited, One Meadowlands Plaza, 12th Fl., E.

Rutherford, NJ 07073

Hapag-Lloyd AG, 399 Hoes Lane, Piscataway, NJ 08854

Orient Overseas Container Line, 4141 Hacienda Drive, Pleasanton, CA

90731

Atlantic Container Line AB, 50 Cragwood Road, South Plainfield, NJ

07080

A.P. Moller-Maersk Line, Giralda Farms, P.O. Box 880, Madison, NJ

07940-0880

Nedlloyd Lijnen BV, c/o Nedlloyd Lines (USA) Corp., 2100 RiverEdge

Pkwy, Ste. 300, Atlanta, GA 30328-4656

Nippon Yusen Kaisha, NYK Line, 300 Lighting Way, 5th Floor,

Secaucus, NJ 07094

Transportacion Maritima Mexicana, S.A. de C.V., c/o Trans-America

S.S. Agency, 140 W. 6th Street, San Pedro, CA 90731

Tecomar S.A. de C.V., c/o Phoenician Int'l Shipping, 2350 N. Belt

East, Suite 720, Houston, TX 77032

Cho Yang Shipping Co. Ltd., 301 Route 17 North, 6th Floor,

Rutherford, NJ 07070

Hanjin Shipping Co., Ltd., 1521 Pier C Street, Long Beach, CA 90813

[FR Doc. 94-29409 Filed 11-29-94; 8:45 am]

BILLING CODE 6730-01-M