Federal Maritime Commission FMC

Federal regulation of ocean shipping began with the Shipping Act of 1916, which created the U.S. Shipping Board to oversee ocean carriers and their rate-setting cartels, known as conferences. After several reorganizations, Reorganization Plan No. 7 of 1961, effective August 12, 1961, created the Federal Maritime Commission as an independent regulator, while ship subsidies and promotion went to what is now the Maritime Administration. The FMC has five commissioners appointed to five-year terms, no more than three from one party.

The FMC oversees the ocean carriers, marine terminal operators, and freight forwarders and brokers that move goods in U.S. imports and exports. It reviews agreements among carriers, such as global shipping alliances, to prevent harmful anticompetitive effects, licenses and bonds freight intermediaries, investigates complaints, and enforces rules against unreasonable practices. It does not set shipping rates, which are largely determined by market forces.

During the supply chain crisis of 2021 and 2022, shipping rates soared and importers and exporters complained of excessive detention and demurrage fees and refusals to carry American exports. Congress responded with the Ocean Shipping Reform Act of 2022, signed on June 16, 2022, which strengthened the FMC's powers to police these practices. In 2025 the Commission opened investigations into foreign regulations and practices affecting U.S. shipping. Supporters say the 2022 law gave shippers needed leverage against a concentrated industry, while carriers argue that heavier regulation could raise costs and reduce service.