APPENDIX 5

THE REGULATED OCEAN SHIPPING INDUSTRY

A REPORT OF THE

U.S. DEPARTMENT OF JUSTICE

JANUARY 1977

PROJECT STAFF

This report was prepared in the Department of Justice by Antitrust Division attorneys Craig W. Conrath, James P. Denvir III, and David L. Lapides, subject to the immediate supervision of Donald L. Flexner, Chief of the Division's Regulated Industries Section, and the overall guidance of Jonathan C. Rose, Deputy Assistant Attorney General.

Final approval of the report was given by Donald I. Baker, Assistant Attorney General of the Antitrust Division.

TABLE OF CONTENTS

I. Introduction....

1

II. The Regulated Industry....

A. Brief Description of the Industry.....
1. Types of Ocean Transportation.....

4

2. History of Ocean Transportation:.....
3. The Cargo Carried by Liners...
4. The Trades Served by Liners.....
5. The American Merchant Marine....
B. Regulation of Liner Shipping in U.S.
Foreign Commerce..

6

14

17

19

24

40

a. Federal Subsidies to the
Maritime Industry....

b. The Promotional Theme in the
1961 Amendments.....

III. Congressional Reasons for Permitting a
Regulated Conference System in Ocean
Shipping....

A. The Perceived Need for a Conference
System....

47

e.

f.

4. FMC

a.

53

b.

55

C.

55

d.