Monitoring Reports - Rate and Capacity Agreements

Monitoring Report Instructions
All agreements between or among ocean common carriers identified in 46 CFR
535.702(a) must submit completed Monitoring Reports to the full extent required in
sections I through III of this Report. Sections I and II must be completed, as applicable,
in accordance with the authority contained in each agreement. Section III must be
completed by all agreements subject to Monitoring Report requirements.
Where an agreement containing multiple authorities is subject to duplicate reporting
requirements in the various sections of this Report, the parties may provide only one
response so long as the reporting requirements within each section are fully addressed.
The Monitoring Report specifies the data and information which must be reported for
each section and the format in which it must be provided. If a party to an agreement is
unable to supply a complete response to any item of this Report, that party shall provide
either estimated data (with an explanation of why precise data are not available) or a
detailed statement of reasons for noncompliance and the efforts made to obtain the
required information. For purposes of this Report, if one of the agreement signatories is a
joint service operating under an effective agreement, that signatory shall respond to the
Report as a single agreement party.
For clarification of the agreement terminology used in this Report, the parties may refer
to the definitions provided in 46 CFR 535.104. In addition, the following definitions shall
apply for purposes of this Report: liner movement means the carriage of liner cargo by
liner operators; liner cargo means cargo carried on liner vessels in a liner service; liner
operator means a vessel-operating common carrier engaged in liner service; liner vessel
means a vessel used in a liner service; liner service means a definite, advertised schedule
of sailings at regular intervals; and TEU means a unit of measurement equivalent to one
20-foot shipping container. Further, when used in this Report, the terms "entire
geographic scope of the agreement" or "agreement-wide" refer to the combined U.S.
inbound trade and/or the combined U.S. outbound trade as such trades apply to the
geographic scope of the agreement, as opposed to the term "sub-trade," which is defined
for reporting purposes as the scope of all liner movements between each U.S. port range
and each foreign country within the scope of the agreement. Whether required on a
combined trade basis or a sub-trade basis, the U.S. inbound trade (or sub-trades) and the
U.S. outbound trade (or sub-trades) shall always be stated separately.
Section I
Section I applies to agreements, identified in 46 CFR 535.702(a)(1), that contain the
authority to discuss or agree on capacity rationalization as defined in 46 CFR 535.104(e).
Parties to such agreements must complete parts 1 through 3 of this section.
Part 1
State the full name of the agreement and the agreement number assigned by the FMC.

Part 2(A)
For the preceding calendar quarter, provide the amount of vessel capacity for each party
for each of its liner services that is covered by the agreement within the entire geographic
scope of the agreement, stated separately for the U.S. inbound and outbound trades as
applicable to the geographic scope of the agreement. For purposes of this Report, vessel
capacity means a party’s total commercial liner space on line-haul vessels, whether
operated by it or other parties from whom space is obtained, sailing to and/or from the
continent of North America for each of its liner services that is covered by the agreement.
When 50 percent or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was containerized, the
amount(s) of vessel capacity for each party shall be reported in TEUs. When 50 percent
or more of the total liner cargo carried by all the parties in the geographic scope of the
agreement during the calendar quarter was non-containerized, the amount(s) of vessel
capacity for each party shall be reported in non-containerized units of measurement. The
unit of measurement used in calculating the amounts of non-containerized vessel capacity
must be specified clearly and consistently applied.
Part 2(B)
For the preceding calendar quarter, provide the percentage of vessel capacity utilization
for each party for each of its liner services that is covered by the agreement within the
entire geographic scope of the agreement, corresponding to the figures used in part 2(A)
of this section, stated separately for the U.S. inbound and outbound trades as applicable
to the geographic scope of the agreement. For purposes of this Report, the percentage of
vessel capacity utilization means a party’s total volume of liner cargo, for each of its liner
services that is covered by the agreement, carried on any vessel space counted under part
2(A) of this section, divided by its total vessel capacity as defined and derived in part
2(A) of this section, which quotient is multiplied by 100.
Part 2(C)
Provide a narrative statement on any significant reductions, to be implemented under the
agreement, in the amounts of vessel capacity for the parties’ liner services that are
covered by the agreement within the entire geographic scope of the agreement.
Specifically, explain the nature of and the reasons for the significant reduction and its
effects on the liner service and the total amount of vessel capacity for such service that
would be subject to the reduction. The narrative statement for part 2(C) of this section
shall be submitted to the Director, Bureau of Trade Analysis, no later than 15 days after a
significant reduction in the amount of vessel capacity has been agreed upon by the parties
but prior to the implementation of the actual reduction under the agreement. For purposes
of this part, a significant reduction refers to the removal from a liner service of vessels or
vessel space for a fixed, seasonally planned, or indefinite period of time. A significant
reduction excludes instances when vessels may be temporarily repositioned or shifted
from one service to another, or when vessel space may be temporarily altered, or when

vessels are removed from a liner service and vessels of similar or greater capacity are
substituted. It also excludes operational changes in vessels or vessel space that would
have little or no impact on the amount of vessel capacity offered in a liner service or a
trade.
Part 2(D)
Excluding those changes already reported in part 2(C) of this section, provide a narrative
statement on any other significant changes, implemented under the agreement during the
preceding calendar quarter, in the amounts of vessel capacity for the parties’ liner
services that are covered by the agreement within the entire geographic scope of the
agreement. Specifically, explain the nature of and the reasons for the significant change
and its effects on the liner service and the total amount of vessel capacity for such service
that was subject to the change. For purposes of this part, a significant change refers to the
addition to a liner service of vessels or vessel space for a fixed, seasonally planned, or
indefinite period of time. A significant change excludes instances when vessels were
temporarily repositioned or shifted from one service to another, or when vessel space was
temporarily altered, or when vessels were removed from a liner service and vessels of
similar capacity were substituted. It also excludes operational changes in vessels or vessel
space that had little or no impact on the amount of vessel capacity offered in a liner
service or a trade. If no significant change was implemented, it shall be noted with the
term "none" in response to part 2(D) of this section.
Part 3
Provide a narrative statement on any significant changes, implemented under the
agreement during the calendar quarter, in the number of vessel calls at a port for the
parties’ liner services that are covered by the agreement within the entire geographic
scope of the agreement. Specifically, explain the nature of the significant change and its
effect on the frequency of vessel calls at the port for the liner service that was subject to
the change. For purposes of this part, a significant change refers to an increase or a
decrease in the number of vessel calls at a port for a fixed, seasonally planned, or
indefinite period of time. A significant change excludes an incidental or temporary
alteration in the number of vessel calls at a port, or an operational change in vessel calls
that had little or no impact on the number of vessel calls at a port. If no significant change
was implemented, it shall be noted with the term "none" in response to part 3 of this
section.
Section II
Section II applies to agreements, identified in 46 CFR 535.702(a)(2), where the parties to
the agreement hold a combined market share, based on cargo volume, of 35 percent or
more in the entire U.S. inbound or outbound geographic scope of the agreement and the
agreement contains any of the following authorities: (a) the discussion of, or agreement
upon, whether on a binding basis under a common tariff or a non-binding basis, any kind
of rate or charge; (b) the establishment of a joint service; (c) the pooling or division of

cargo traffic, earnings, or revenues and/or losses; or (d) the discussion of, or agreement
on, any service contract matter. Parties to such agreements must complete parts 1 through
6 of this section.
Part 1
State the full name of the agreement and the agreement number assigned by the FMC.
Part 2
For the preceding calendar quarter, provide the market shares of all liner operators for the
entire geographic scope of the agreement and in each sub-trade within the scope of the
agreement. A joint service shall be treated as a single liner operator, whether it is an
agreement line or a non-agreement line. Sub-trade is defined as the scope of all liner
movements between each U.S. port range within the scope of the agreement and each
foreign country within the scope of the agreement. Where the agreement covers both U.S.
inbound and outbound liner movements, inbound and outbound market shares shall be
shown separately.
U.S. port ranges are defined as follows:
Atlantic and Gulf -- Includes ports along the eastern seaboard and the Gulf of Mexico
from the northern boundary of Maine to Brownsville, Texas. Also includes all ports
bordering upon the Great Lakes and their connecting waterways, all ports in the State of
New York on the St. Lawrence River, and all ports in Puerto Rico and the U.S. Virgin
Islands.
Pacific -- Includes all ports in the States of Alaska, Hawaii, California, Oregon, and
Washington. Also includes all ports in Guam, American Samoa, Northern Marianas,
Johnston Island, Midway Island, and Wake Island.
An application may be filed for a waiver of the definition of "sub-trade" under the
procedures described in 46 CFR 535.705. In any such application, the burden shall be on
the parties to show that their marketing and pricing practices have been done by
ascertainable multi-country regions rather than by individual countries or, in the case of
the United States, by broader areas than the port ranges defined herein. The Commission
will also consider whether the alternative definition of "sub-trade" requested by the
waiver application is reasonably consistent with the definition of "sub-trade" applied in
the original Information Form for the agreement.
The formula for calculating market share in the entire agreement scope or in a sub-trade
is as follows: The total amount of liner cargo carried on each liner operator's liner vessels
in the entire agreement scope or in the sub-trade during the most recent calendar quarter
for which complete data are available, divided by the total liner movements in the entire
agreement scope or in the sub-trade during the same calendar quarter, which quotient is

multiplied by 100. The market shares held by non-agreement lines as well as by
agreement lines must be provided, stated separately in the format indicated.
If 50 percent or more of the total liner cargo carried by the parties in the entire agreement
scope during the calendar quarter was containerized, only containerized liner movements
(measured in TEUs) must be used for determining market share. If 50 percent or more of
the total liner cargo carried by the parties was non-containerized, only non-containerized
liner movements must be used for determining market share. The unit of measurement
used in calculating amounts of non-containerized cargo must be specified clearly and
applied consistently.
Part 3
For the preceding calendar quarter, provide each party’s total liner revenues in the entire
geographic scope of the agreement, total liner cargo carried in the entire geographic
scope of the agreement, and average revenue. For purposes of this Report, total liner
revenues means the total revenues, in U.S. dollars, of each party corresponding to its total
cargo carried for its liner services that fall under the agreement, inclusive of all ocean
freight charges, whether assessed on a port-to-port basis or a through intermodal basis;
accessorial charges; surcharges; and charges for inland cargo carriage. Average revenue
shall be calculated as the quotient of each party’s total liner revenues in the entire
geographic scope divided by its total cargo carried in the entire geographic scope.
When 50 percent or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was containerized, each
party shall report only its total carryings of containerized liner cargo (measured in TEUs)
during the calendar quarter, total revenues generated by its carriage of containerized liner
cargo, and average revenue per TEU. When 50 percent or more of the total liner cargo
carried by all the parties in the geographic scope of the agreement during the calendar
quarter was non-containerized, each party shall report only its total carryings of noncontainerized liner cargo during the calendar quarter (specifying the unit of measurement
used), total revenues generated by its carriage of non-containerized liner cargo, and
average revenue per unit of measurement. When the agreement covers both U.S. inbound
and outbound liner movements, inbound and outbound data shall be stated separately.
Part 4(A)
For the preceding calendar quarter, provide a list, for the entire geographic scope of the
agreement, of the top 10 liner commodities (including commodities not subject to tariff
publication) carried by all the parties for their liner services that fall under the agreement.
For purposes of this Report, commodities shall be identified at the 4-digit level of
customarily used commodity coding schedules. When 50 percent or more of the total
liner cargo carried by all the parties in the geographic scope of the agreement during the
calendar quarter was containerized, this list shall include only containerized commodities.
When 50 percent or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was non-containerized,

this list shall include only non-containerized commodities. When the agreement covers
both U.S. inbound and outbound liner movements, inbound and outbound data shall be
stated separately.
Part 4(B)
For the preceding calendar quarter, provide the cargo volume and revenue results for each
party for each of the major commodities listed in part 4(A) of this section, corresponding
to the same unit of measurement used. For purposes of this Report, revenue results means
the revenues, in U.S. dollars, earned by each party on the cargo volume of each major
commodity listed in part 4(A) of this section, inclusive of all ocean freight charges,
whether assessed on a port-to-port basis or a through intermodal basis; accessorial
charges; surcharges; and charges for inland cargo carriage. If a party has no cargo volume
and revenue results for a commodity listed in part 4(A) of this section, it shall be noted by
using a zero for that party in response to part 4(B) of this section.
Part 5(A)
For the preceding calendar quarter, provide the amount of vessel capacity for each party
for each of its liner services that falls under the agreement within the entire geographic
scope of the agreement, stated separately for the U.S. inbound and outbound trades as
applicable to the geographic scope of the agreement. For purposes of this Report, vessel
capacity means a party’s total commercial liner space on line-haul vessels, whether
operated by it or other parties from whom space is obtained, sailing to and/or from the
continent of North America for each of its liner services that falls under the agreement.
When 50 percent or more of the total liner cargo carried by all the parties in the
geographic scope of the agreement during the calendar quarter was containerized, the
amount(s) of vessel capacity for each party shall be reported in TEUs. When 50 percent
or more of the total liner cargo carried by all the parties in the geographic scope of the
agreement during the calendar quarter was non-containerized, the amount(s) of vessel
capacity for each party shall be reported in non-containerized units of measurement. The
unit of measurement used in calculating the amounts of non-containerized vessel capacity
must be specified clearly and consistently applied.
Part 5(B)
For the preceding calendar quarter, provide the percentage of vessel capacity utilization
for each party for each of its liner services that falls under the agreement within the entire
geographic scope of the agreement, corresponding to the figures used in part 5(A) of this
section, stated separately for the U.S. inbound and outbound trades as applicable to the
geographic scope of the agreement. For purposes of this Report, the percentage of vessel
capacity utilization means a party’s total volume of liner cargo, for each of its liner
services that falls under the agreement, carried on any vessel space counted under part
5(A) of this section, divided by its total vessel capacity as defined and derived in part
5(A) of this section, which quotient is multiplied by 100.

Part 5(C)
Provide a narrative statement on any significant changes in the amount of vessel capacity
that occurred during the preceding calendar quarter for the parties’ liner services that fall
under the agreement within the entire geographic scope of the agreement. Specifically,
explain the nature of and the reasons for the significant change and its effects on the liner
service and the total amount of vessel capacity for such service that was subject to the
change. For purposes of this part, a significant change refers to the removal from or
addition to a liner service of vessels or vessel space for a fixed, seasonally planned, or
indefinite period of time. A significant change would exclude instances when vessels
were temporarily repositioned or shifted from one service to another, or when vessel
space was temporarily altered, or when vessels were removed from a liner service and
vessels of similar capacity were substituted. It also excludes operational changes in
vessels and vessel space that had little or no impact on the amount of vessel capacity
offered in a liner service or a trade. If no significant change occurred during the calendar
quarter, it shall be noted with the term "none" in response to part 5(C) of this section.
Part 6
Provide a narrative statement on any significant changes in the number of vessel calls at a
port that occurred during the preceding calendar quarter for the parties’ liner services that
fall under the agreement within the entire geographic scope of the agreement.
Specifically, explain the nature of the significant change and its effect on the frequency
of vessel calls at the port for the liner service that was subject to the change. For purposes
of this part, a significant change refers to an increase or a decrease in the number of
vessel calls at a port for a fixed, seasonally planned, or indefinite period of time. A
significant change excludes an incidental or temporary alteration in the number of vessel
calls at a port, or an operational change in vessel calls that had little or no impact on the
number of vessel calls at a port. If no significant change occurred during the calendar
quarter, it shall be noted with the term "none" in response to part 6 of this section.
Section III
Section III applies to all agreements identified in 46 CFR 535.702(a). Parties to such
agreements must complete all items in part 1 of this section.
Part 1(A)
State the name, title, address, telephone and fax numbers, and electronic mail address of a
person the Commission may contact regarding the Monitoring Report and any
information provided therein.
Part 1(B)
A representative of the parties shall sign the Monitoring Report and certify that the
information in the Report and all attachments and appendices are, to the best of his or her

knowledge, true, correct and complete. The representative also shall indicate his or her
relationship with the parties to the agreement.
Privacy Act and Paperwork Reduction Act Notice.
The collection of this information is authorized generally by section 15 of the Shipping
Act of 1984, 46 U.S.C. app. § 1714. The submission of this form is mandatory for parties
to agreements that contain certain authorities.
You are not required to provide information requested on a form that is subject to the
Paperwork Reduction Act unless the form displays a valid OMB control number. The
valid control number for this information collection is 3072-0045.
The time needed to complete and submit this form will vary depending on individual
circumstances. The total estimated average time to complete this form is about 63.5
hours. This estimate includes reading the instructions, collecting necessary data, and
compiling that data.
If you have any comments concerning the accuracy of the above estimate or have any
suggestions for simplifying the form, please contact Secretary, Federal Maritime
Commission, 800 North Capitol Street, NW, Washington, DC 20573-0001; or by email:
secretary@fmc.gov.