46 U.S.C. § 40702 — Rate standards

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 174 words · no verdicts yet

in plain englishAI-generated · not legal advice

'Constructive costs' means what a similar, non-controlled carrier would pay. The Commission must check if a rate covers those costs. It may also weigh other factors, like matching competitors or keeping port service running.

(a) Definition: "Constructive costs" means the costs that another carrier -- one not controlled by a foreign government -- would incur running similar vessels and equipment in the same or a similar trade. (b) Standards: In deciding whether a controlled carrier's rate, charge, classification, rule, or regulation is just and reasonable, the Federal Maritime Commission must consider whether the rate (or the rate that would result from the rule) falls below a level that fully covers the carrier's actual costs or its constructive costs. The Commission may also consider other relevant factors, including whether the rate, charge, classification, rule, or regulation: matches what other carriers in the same trade charge; is needed to keep particular cargo moving in that trade; or is needed to keep an acceptable level, continuity, or quality of common-carrier service to or from the affected ports.

the actual law source: uscode.house.gov ↗public domain

(a)Definition.—

In this section, the term “constructive costs” means the costs of another carrier, other than a controlled carrier, operating similar vessels and equipment in the same or a similar trade.

(b)Standards.—

In determining whether a rate, charge, classification, rule, or regulation of a controlled carrier is just and reasonable, the Federal Maritime Commission—

(1)

shall take into account whether the rate or charge that has been published or assessed, or that would result from the pertinent classification, rule, or regulation, is below a level that is fully compensatory to the controlled carrier based on the carrier’s actual costs or constructive costs; and

(2)

may take into account other appropriate factors, including whether the rate, charge, classification, rule, or regulation is—

(A)

the same as, or similar to, those published or assessed by other carriers in the same trade;

(B)

required to ensure movement of particular cargo in the same trade; or

(C)

required to maintain acceptable continuity, level, or quality of common carrier service to or from affected ports.

Source credit: (Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)

history & why it existsrecord from the source credit

2006Enacted · Pub. L. 109-304 · 120 Stat. 1536

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.

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