---
kind: "section"
citation: "46 U.S.C. § 40701"
title: "46"
title_heading: "Shipping"
number: "40701"
heading: "Rates"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/40701"
units:
  - "Subtitle IV — Regulation of Ocean Shipping"
  - "Part A — Ocean Shipping"
  - "Chapter 407 — Controlled Carriers"
---

# §40701. Rates

- (a) **In General.—** A [controlled carrier](/usc/46/40102.md?p=9) may not—
  - (1) maintain a rate or charge in a tariff or [service contract](/usc/46/40102.md?p=21), or charge or assess a rate, that is below a just and reasonable level; or
  - (2) establish, maintain, or enforce in a tariff or [service contract](/usc/46/40102.md?p=21) a classification, rule, or regulation that results, or is likely to result, in the carriage or handling of cargo at a rate or charge that is below a just and reasonable level.
- (b) **Commission Prohibition.—** The Federal Maritime [Commission](/usc/46/42501.md?p=1), at any time after notice and opportunity for a hearing, may prohibit the publication or use of a rate, charge, classification, rule, or regulation that a [controlled carrier](/usc/46/40102.md?p=9) has failed to demonstrate is just and reasonable.
- (c) **Burden of Proof.—** In a proceeding under this section, the burden of proof is on the [controlled carrier](/usc/46/40102.md?p=9) to demonstrate that its rate, charge, classification, rule, or regulation is just and reasonable.
- (d) **Voidness.—** A rate, charge, classification, rule, or regulation that has been suspended or prohibited by the [Commission](/usc/46/42501.md?p=1) is void and its use is unlawful.

## Source credit

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1535.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 40701 | 46 App.:1708(a). | Pub. L. 98–237, § 9(a), Mar. 20, 1984, 98 Stat. 76; Pub. L. 102–100, § 5(a), Aug. 17, 1991, 105 Stat. 492; Pub. L. 105–258, title I, § 108(1)–(4), Oct. 14, 1998, 112 Stat. 1908. |