46 U.S.C. § 40502 — Service contracts

(a) In General: A single ocean carrier, or an agreement^* among carriers, can enter into a service contract^* with one or more shippers, as long as it follows this section's rules.

(b) Filing Requirements

(1) In general: Every service contract made under this section must be filed confidentially with the Federal Maritime Commission.

(2) Exceptions: This doesn't apply to contracts for bulk cargo^*, forest products^*, recycled metal scrap, new assembled motor vehicles, waste paper, or paper waste.

(c) Essential Terms: Every service contract must include: the origin and destination port ranges; for combined shipping methods, the origin and destination geographic areas; what goods are involved; the minimum volume or share required; the line-haul rate; how long the contract lasts; any service commitments; any liquidated damages for not performing; and any other essential term the Commission decides, through rulemaking, is necessary.

(d) Publication of Certain Terms: Even though the full contract stays confidential, the Commission must publish -- in tariff format, for the public -- a short statement of the essential terms about port ranges, goods involved, minimum volume, and duration (items (1), (3), (4), and (6) from subsection (c)).

(e) Disclosure of Certain Terms

(1) Definitions: "Dock area" and "within the port area" mean whatever the relevant union contract between the requesting union and the carrier says they mean.

(2) Disclosure: If a carrier has a union contract, it must -- when the union asks in writing -- say whether it's responsible, at a dock or port area in the U.S., for: moving the shipper's cargo around the dock/port area or to and from railroad cars there; assigning workers to move cargo between areas of the dock/port; assigning workers to move cargo between a container yard at the dock/port and an adjacent rail yard; and assigning container freight station work and container repair work done at the dock/port.

(3) Within reasonable time: The carrier must answer within a reasonable time.

(4) Existence of collective bargaining agreement: A carrier only has to disclose this if it actually has a lawful union contract that applies. Answering doesn't mean the carrier admits any of the work is covered by that contract. Any dispute over whether work is covered, or the carrier's responsibility under the contract, is resolved only through that contract's dispute process and the National Labor Relations Act -- not under this subsection.

(5) Effect under other laws: This subsection doesn't change whether a union contract (or any part of it) is legal under this law or any other federal or state^* law.

(f) Remedy for Breach: Unless the parties agree otherwise, the only way to sue over a broken service contract is in an appropriate court. The forum chosen to resolve contract disputes can't be controlled by, or affiliated with, a carrier that's controlled by a foreign government, or by that government itself.