Full Volume 19 - Federal Maritime Commission

824 FEDERAL MARITIME COMMISSION
appropriate conference to exercise westbound minibridge jllrisdiction to the Far East
Id 296297
Agreement granting the Pacific Westbound Conference authority to fIX intermodal
rates as to minibridge and interior intermodal is justified by the need to eliminate
multiple tariffs and desirability of uniformity of tariffs and by the potential for rate
instability and malpractice which exists in the trade by reason of the fact that the trade
is overtonnlllled Id 298 299
By restricting and precluding individual member lines from publishing tariffs for
through intermodal transportation and fixing the rates and charges at which such
transportation will be offered qreement of the Pacific Westbound Conference consti
tutes a clear illeaal restraint of trade As such the qreement is contrary to the public
interest unless it can be shown to be justified or warranted in terms of legitimate
commercial objectives The Conference mullt demonstrate that the agreement serves a
serious transportation need is necessary to secure important pUblic benefits or is In
furtherance of a valid regulatory purpose of the Shipping Act Id 299
Argument that conference ratemaking agreements are somehow immune from the
approval standards of section 15 of the Shipping Act including the public Interest
considerations of Svenska is whoUy inconsistent with the clear ianguaae of section 15
itself Section 15 explicitly requires that the Commission subject to its approval
requirements any agreement which provides for one or more of the activities
specifically set forth in the seven categories enumerated therein one of these being the
fixing or regulating of transportation rates AD conference ratemaking arraiJaements
are subject to the approval standards ofsection 15 Id 300
While aU conference ratemaking lIlIreements are required to meet the standards for
approval set forth in section IS the extent of the justification that need be shown for
such approval wiD vary from case to case with the intensity of the otherwise illeaal
restraint involved Thus the legitimate commercial objectives which the Commis
sion wiU accept as evidencing the necessity for the restraint willgeneraUy be determined
by the type and scope of the agreement under co1slderation The Commission does not
agree that because of the intermodal aspects of the hlstant IIIlreement the most
stringent proof of a serious transportation need is required Id 300 301
The COmmission has generaUy found IIIlreements giving conferences intermodal
ratemaking authority to be in the public interest These types of agreements are
generaUy acceptable However such agreements will not be sllll1lnal iJy approved merely
because similar agreements have been found warranted and have been approved under
section 15 in the past The Commission will not abdicate its responsibility to assure that
the conduct legalized by such agreements does not invade the prohibitions of the
antitrust laws any more than is necessary to serve the purpose of the statute Id 30t
Applying the standards of section 15 as interpreted inSvenska approval of agreement
giving the Pacific Westbound Conference authority to fIX intermoda1 rates is required by
a serious transportation need and will serve to secure important public benefits There
are some definite legitimate objectives to be derived from approval one of which is
elimination of the multiplicity of mim bridge tariffs which exists under the present system
of aUowing each PWC member to me its own individualtarift The single most important
public benefit derives from the advanll lle that conference authOrity over intermoda1
rates will offer The intermoda1 movement of cargoes aUowing for continuous movement
under a single biD of lading with less handling provides an essential tr sportati ln
service to shippers and consignees The conference system provides the manner by
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