--- kind: "section" citation: "46 U.S.C. § 40303" title: "46" title_heading: "Shipping" number: "40303" heading: "Content requirements" release: "119-102" url: "https://uscodex.org/usc/46/40303" units: - "Subtitle IV — Regulation of Ocean Shipping" - "Part A — Ocean Shipping" - "Chapter 403 — Agreements" --- # §40303. Content requirements - (a) **Ocean Common Carrier Agreements.—** - (1) **Restrictions.—** An [ocean common carrier](/usc/46/40102.md?p=18) [agreement](/usc/46/40102.md?p=1) may not— - (A) prohibit or restrict a member of the [agreement](/usc/46/40102.md?p=1) from engaging in negotiations for a [service contract](/usc/46/40102.md?p=21) with a [shipper](/usc/46/40102.md?p=23); - (B) require a member of the [agreement](/usc/46/40102.md?p=1) to disclose a negotiation on a [service contract](/usc/46/40102.md?p=21), or the terms of a [service contract](/usc/46/40102.md?p=21), other than those terms required to be published under [section 40502(d) of this title](/usc/46/40502.md?p=d); or - (C) adopt mandatory rules or requirements affecting the right of an [agreement](/usc/46/40102.md?p=1) member to negotiate and enter into a [service contract](/usc/46/40102.md?p=21). - (2) **Voluntary guidelines.—** An [ocean common carrier](/usc/46/40102.md?p=18) [agreement](/usc/46/40102.md?p=1) may provide authority to adopt voluntary guidelines relating to the terms and procedures of an [agreement](/usc/46/40102.md?p=1) member’s [service contracts](/usc/46/40102.md?p=21) if the guidelines explicitly [state](/usc/46/112.md) the right of members of the [agreement](/usc/46/40102.md?p=1) not to follow the guidelines. Any guidelines adopted shall be submitted confidentially to the Federal Maritime Commission. - (b) **Conference Agreements.—** Each [conference](/usc/46/40102.md?p=8) [agreement](/usc/46/40102.md?p=1) must— - (1) [state](/usc/46/112.md) its purpose; - (2) provide reasonable and equal terms for admission and readmission to [conference](/usc/46/40102.md?p=8) membership for any [ocean common carrier](/usc/46/40102.md?p=18) willing to serve the particular trade or route; - (3) permit any member to withdraw from [conference](/usc/46/40102.md?p=8) membership on reasonable notice without penalty; - (4) at the request of any member, require an independent neutral body to police fully the [obligations](/usc/46/53701.md?p=9) of the [conference](/usc/46/40102.md?p=8) and its members; - (5) prohibit the [conference](/usc/46/40102.md?p=8) from engaging in conduct prohibited by section [41105(1)](/usc/46/41105.md?p=1) or [(3)](/usc/46/41105.md?p=3) of this title; - (6) provide for a consultation process designed to promote— - (A) commercial resolution of disputes; and - (B) cooperation with [shippers](/usc/46/40102.md?p=24) in preventing and eliminating malpractices; - (7) establish procedures for promptly and fairly considering requests and complaints of [shippers](/usc/46/40102.md?p=24); and - (8) provide that— - (A) any member of the [conference](/usc/46/40102.md?p=8) may take independent action on a rate or service item on not more than 5 days’ notice to the [conference](/usc/46/40102.md?p=8); and - (B) except for an exempt commodity not published in the [conference](/usc/46/40102.md?p=8) tariff, the [conference](/usc/46/40102.md?p=8) will include the new rate or service item in its tariff for use by that member, effective no later than 5 days after receipt of the notice, and by any other member that notifies the [conference](/usc/46/40102.md?p=8) that it elects to adopt the independent rate or service item on or after its effective date, in lieu of the existing [conference](/usc/46/40102.md?p=8) tariff provision for that rate or service item. - (c) **Interconference Agreements.—** Each [agreement](/usc/46/40102.md?p=1) between carriers not members of the same [conference](/usc/46/40102.md?p=8) must provide the right of independent action for each carrier. Each [agreement](/usc/46/40102.md?p=1) between [conferences](/usc/46/40102.md?p=8) must provide the right of independent action for each [conference](/usc/46/40102.md?p=8). - (d) **Vessel Sharing Agreements.—** - (1) **In general.—** An [ocean common carrier](/usc/46/40102.md?p=18) that is the owner, operator, or bareboat, time, or slot charterer of a liner [vessel](/usc/46/115.md) documented under section [12103](/usc/46/12103.md) or [12111(c)](/usc/46/12111.md?p=c) of this title may agree with an [ocean common carrier](/usc/46/40102.md?p=18) described in [paragraph (2)](#d-2) to which it charters or subcharters the [vessel](/usc/46/115.md) or space on the [vessel](/usc/46/115.md) that the charterer or subcharterer may not use or make available space on the [vessel](/usc/46/115.md) for the carriage of cargo reserved by law for [vessels](/usc/46/115.md) of the [United States](/usc/46/114.md). - (2) **Carrier described.—** An [ocean common carrier](/usc/46/40102.md?p=18) described in this paragraph is one that is not the owner, operator, or bareboat charterer for at least one year of liner [vessels](/usc/46/115.md) of the [United States](/usc/46/114.md) that are eligible to be included in the Maritime Security Fleet Program and are enrolled in an Emergency Preparedness Program under [chapter 531](/usc/46/chstV-ptC-ch531.md) of this title. ## Source credit (Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1529.) ## Notes | Historical and Revision Notes | | | | --- | --- | --- | | Revised
Section | Source (U.S. Code) | Source (Statutes at Large) | | 40303(a) | 46 App.:1704(c). | Pub. L. 98–237, § 5(b)–(d), Mar. 20, 1984, 98 Stat. 70; Pub. L. 105–258, title I, § 104(a), Oct. 14, 1998, 112 Stat. 1904. | | 40303(b) | 46 App.:1704(b). | | | 40303(c) | 46 App.:1704(d). | | | 40303(d) | 46 App.:1704(g). | Pub. L. 98–237, § 5(g), Mar. 20, 1984; as added Pub. L. 105–383, title IV, § 424(a), Nov. 13, 1998, 112 Stat. 3440. | In subsection (c)(8), the word “calendar” is omitted as unnecessary. In subsection (d), the words “vessel of the United States” are substituted for “United States-flag vessel” (and similar variations) for consistency in the revised title.