§10766. Freight forwarder traffic agreements

(a) A household goods freight forwarder providing service subject to the jurisdiction of the Interstate Commerce Commission under subchapter IV of chapter 105 of this title may agree with another household goods freight forwarder to load traffic jointly between places served under this subtitle. However, the Commission may cancel, suspend, or require changes in the agreement when the Commission finds the agreement is inconsistent with the transportation policy of section 10101 of this title.

(b) A household goods freight forwarder providing service subject to the jurisdiction of the Commission under that subchapter may contract with motor common carriers, and motor contract carriers of property, providing transportation subject to the jurisdiction of the Commission under subchapter II of that chapter, to provide transportation for the forwarder. A copy of that contract must be filed with the Commission. The contract may govern use by the household goods freight forwarder of the services and instrumentalities of the motor common carrier or the motor contract carrier of property and the compensation to be paid for the transportation. However, the parties to a contract must establish reasonable conditions and compensation that are consistent with the transportation policy of section 10101 of this title and do not unreasonably discriminate against a party or another household goods freight forwarder. When the Commission finds that a contract, or its conditions or compensation, under this subsection is or will be inconsistent with this subsection, the Commission shall prescribe consistent conditions and compensation.

(c) Authority of Freight Forwarders To Enter Into Contracts.-A freight forwarder (other than a household goods freight forwarder) providing service which, on the day before the date of the enactment of the Surface Freight Forwarder Deregulation Act of 1986, would have been service subject to the jurisdiction of the Commission under subchapter IV of chapter 105 of this title may contract with-

(1) a rail carrier,

(2) a water common carrier providing transportation subject to the Shipping Act, 1916 (46 U.S.C. App. 801–842) or the Intercoastal Shipping Act, 1933 (46 U.S.C. App. 843–848),

(3) a motor common carrier providing transportation subject to the jurisdiction of the Commission under subchapter II of such chapter,

(4) a motor contract carrier of property providing transportation subject to the jurisdiction of the Commission under such subchapter II, and

(5) a shipper.

(d) The Commission may begin a proceeding under this section on its own initiative or on complaint.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1398 ; Pub. L. 96–296, §10(d), July 1, 1980, 94 Stat. 801 ; Pub. L. 99–521, §7(l), Oct. 22, 1986, 100 Stat. 2995 .)

In subsection (a), the word "may" is substituted for "Nothing in this chapter shall be construed to prohibit" for clarity. The word "agree" is substituted for "entering into an agreement" for clarity. The words "places served under this subtitle" are substituted for "points in transportation subject to this chapter" for clarity. The word "However" is substituted for "except that" for clarity. The word "changes" is substituted for "modification" for clarity.

In subsection (b), the word "may" is substituted for "Nothing in this Act shall be construed to prevent" for clarity. The words "contract with" are substituted for "entering into or continuing . . . under contracts" for clarity. The words "Provided, That" and "And provided further, That" are omitted as surplus. The words "parties to a contract must" are substituted for "in the case of such contracts it shall be the duty of the parties thereto" for clarity. The words "just and equitable" are omitted as surplus. The words "unreasonably discriminate against a party" are substituted for "unduly prefer or prejudice any of such participants" for clarity and as being more inclusive. See the revision note to section 10101 of the revised title. The words "When a contract under this subsection governs" are substituted for "in the case of" for clarity. The words "where such line-haul transportation is" are omitted as unnecessary. The words "at least 450 highway miles" are substituted for "of four hundred and fifty highway miles or more" for clarity. The words "the compensation paid . . . under the contract may not be less" are substituted for "such contracts shall not permit payment . . . of compensation which is lower than" for clarity. The word "rate" is substituted for "rates or charges" in view of the definition of "rate" in section 10102 of the revised title. The words "under this chapter" are substituted for "under chapter 8 of this title" in view of the restatement. The words "in accordance with such reasonable rules and regulations as the Commission shall prescribe" are omitted as unnecessary in view of section 10321 of the revised title giving the Commission the power to carry out the subtitle and to prescribe regulations. The word "finds" is substituted for "is the opinion" in view of subchapter II of chapter 5 of title 5.

In subsection (c), the word "proceeding" is substituted for "hearing" in view of subchapter II of chapter 5 of title 5. The words "may begin . . . on its own initiative or on application" are made applicable to 49:1004(d) for clarity and consistency.

References in Text

The date of the enactment of the Surface Freight Forwarder Deregulation Act of 1986, referred to in subsec. (c), is the date of enactment of Pub. L. 99–521, which was approved Oct. 22, 1986.

The Shipping Act, 1916, referred to in subsec. (c)(2), is act Sept. 7, 1916, ch. 451, 39 Stat. 728 , as amended, which is classified generally to chapter 23 (§801 et seq.) of Title 46, Appendix, Shipping. For complete classification of this Act to the Code, see section 842 of Title 46, Appendix, and Tables.

The Intercoastal Shipping Act, 1933, referred to in subsec. (c)(2), is act Mar. 3, 1933, ch. 199, 47 Stat. 1425 , as amended, which is classified generally to chapter 23A (§843 et seq.) of Title 46, Appendix. For complete classification of this Act to the Code, see section 848 of Title 46, Appendix, and Tables.

Amendments

1986-Subsecs. (a), (b). Pub. L. 99–521, §7(l)(1), inserted "household goods" before "freight forwarder" wherever appearing.

Subsecs. (c), (d). Pub. L. 99–521, §7(l)(2), added subsec. (c) and redesignated former subsec. (c) as (d).

1980-Subsec. (b). Pub. L. 96–296 inserted ", and motor contract carriers of property," after "motor common carriers" and "or the motor contract carrier of property" after "motor common carrier" and struck out provision requiring that when a contract under this subsection governed line-haul transportation of property for a total distance of at least 450 highway miles in truckload lots between concentration and break-bulk places, the compensation paid to a motor common carrier could not be less than the rate for that transportation established under this chapter.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–521 effective 60 days after Oct. 22, 1986, see section 15 of Pub. L. 99–521, set out as a note under section 10102 of this title.