Sea-Land Service, Inc. v. Federal Maritime Commission and United States of America

404 F.2d 824, 131 U.S. App. D.C. 246, 1968 U.S. App. LEXIS 5202, 1969 A.M.C. 824
Court of Appeals for the D.C. Circuit·Decided October 21, 1968·No. 21529_1·Published·Cited by 19 cases

Opinion

BASTIAN, Senior Circuit Judge:

This action is' a petition for review of an order of respondent, Federal Maritime Commission (hereinafter referred to as FMC). Petitioner, Sea-Land Service, Inc., (hereinafter cited as Sea-Land) is a large common carrier by water, with extensive operations in the transportation of containerized cargo. Since 1964, petitioner has operated between Seattle, Washington, and Anchorage, Alaska, a port-to-port service, including local motor pick-up and delivery. Sea-Land held itself out to the shipper or to the consignee in the Seattle and Anchorage port areas as the carrier solely responsible for the door-to-door transportation of the goods. This was done within the regulatory ambit of the FMC; the tariffs covering this service were filed with and approved by respondent. On June 26, 1967, Sea-Land filed notice to cancel this tariff, asserting that, with respect to its Seattle-Anchorage route, it would change from single carrier services and rates to joint through water and motor services and rates and would now redesignate its activities as those of a participant in a joint effort with a motor common carrier. Tariff schedules for this endeavor were accepted by the Interstate Commerce Commission (hereinafter referred to as ICC).

Sea-Land’s notice to FMC of cancellation of tariffs was followed by respondent’s order of suspension and investigation. 1 There followed a hearing which resulted, on October 23, 1967, in the issuance by FMC of a report and order 2 declaring that Sea-Land’s activities in question are subject to FMC jurisdiction rather than to that of ICC. Sea-Land’s petition for reconsideration of the order was denied by respondent. This proceeding ensued.

We have before us, in effect, competing claims of regulatory jurisdiction by two federal agencies. We must therefore review the legislative development of the particular activity sought to be regulated. Under the terms of the Shipping Act of 1916 3 and of the Inter- *826 coastal Shipping Act of 1933 4 jurisdiction over water common carriers engaged in interstate commerce in the Alaska trade was reposed in the FMC. This jurisdiction was buttressed by the Alaska Statehood Act 5 of 1958, Section 27(b) of which provides:

Nothing contained in this or any other act shall be construed as depriving the Federal Maritime Board of the exclusive jurisdiction heretofore conferred on it over common carriers engaged in transportation by water between any port in the State of Alaska and other ports in the United States, its territories or possessions, or as conferring upon the Interstate Commerce Commission jurisdiction over transportation between any such ports.

Congress undoubtedly deemed this language necessary because the Transportation Act of 1940 6 had transferred to the ICC jurisdiction over water transportation between the then existing forty-eight states. To the extent that the Shipping Acts of 1916 and 1933 were inconsistent, they were repealed. Further, it should be noted that motor common carriers picking up or delivering goods, preceding or following shipment by water between the mainland and Alaska, are subject to the regulatory requirements of the ICC under the Motor Carrier Act of 1935. 7

The distillation of the spirit of all of this legislation reduces itself to the following :

The FMC has jurisdiction over all-water transportation between Alaska and the mainland; the ICC must certificate motor common carriers connected with such transportation. However, neither Agency would accept tariff schedules establishing through routes and joint rates involving a combined transportation service between both motor and water common carriers. It was this problem to which Congress addressed itself in 1962 when it passed Public Law 87-595 8 which amended Section 216(c) and 305(b) of the Interstate Commerce Act. 9 Indeed, it is the language and intent of this so-called Rivers Bill upon which our case turns. The pertinent wording provides :

As used in this sub-section, the term ‘common carriers by water’ includes water common carriers subject to the Shipping Act, 1916, as amended, or the Intereoastal Shipping Act of 1933, as amended (including persons who hold themselves out to transport goods by water, but who do not own or operate vessels) engaged in the transportation of property in interstate or foreign commerce between Alaska or Hawaii on the one hand, and, on the other, the other States of the Union, and through routes and joint rates so established and all classifications, regulations, and practices in connection therewith shall be subject to the provisions of this part.

Thus did Congress declare that) as to through routes and joint rates, jurisdictional authority shall vest in the ICC.

Respondent does not contest ICC’s exclusive jurisdiction “where a motor carrier joins with a water carrier in establishing a combined motor-water service to Alaska via Seattle from an interior point in one of the contiguous forty-eight states.” 10 However, respondent contends that this is the limit of Public Law 87-595, and that it does not extend to combined motor-water services where the motor portion is confined to pick-up and delivery in the port areas. We do not agree.

The first and most significant barrier to the FMC’s position is the actual language of Public Law 87-595. Nowhere in the statute do we read, as respondent *827 would have us do, a mileage limitation upon the authority of the ICC to regulate through routes and joint rates. The language of the statute makes no distinction between motor carrier participation of line-haul dimensions and motor carrier participation of merely pick-up and delivery in the port areas; no distinction between a thousand miles and a few blocks, as long as both motor and water carriers are performing a ,j.oint through service. ■

Perhaps the crux of respondent’s position is that Sea-Land’s terminal area motor pick-up and delivery activity is merely incidental to the line-haul water transportation, and thus, does not constitute a valid through route service. However, an analysis of the component parts of a through route service indicates that the extent of the motor participation is not the determining factor. What is required is that both motor and water carriers hold themselves out to the public as participants in a joint transportation endeavor and file appropriate tariff schedules reflecting these joint rates and through services.

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Sea-Land Service, Inc. v. Federal Maritime Commission and United States of America, 404 F.2d 824, 131 U.S. App. D.C. 246, 1968 U.S. App. LEXIS 5202, 1969 A.M.C. 824 (D.C. Cir. 1968).

404 F.2d 824 (Sea-Land Service, Inc. v. Federal Maritime Commission and United States of America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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