---
kind: "section"
citation: "46 U.S.C. § 40702"
title: "46"
title_heading: "Shipping"
number: "40702"
heading: "Rate standards"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/40702"
units:
  - "Subtitle IV — Regulation of Ocean Shipping"
  - "Part A — Ocean Shipping"
  - "Chapter 407 — Controlled Carriers"
---

# §40702. Rate standards

- (a) **Definition.—** In this section, the term “constructive costs” means the costs of another carrier, other than a [controlled carrier](/usc/46/40102.md?p=9), operating similar vessels and equipment in the same or a similar trade.
- (b) **Standards.—** In determining whether a rate, charge, classification, rule, or regulation of a [controlled carrier](/usc/46/40102.md?p=9) is just and reasonable, the Federal Maritime [Commission](/usc/46/42501.md?p=1)—
  - (1) shall take into account whether the rate or charge that has been published or assessed, or that would result from the pertinent classification, rule, or regulation, is below a level that is fully compensatory to the [controlled carrier](/usc/46/40102.md?p=9) based on the carrier’s actual costs or constructive costs; and
  - (2) may take into account other appropriate factors, including whether the rate, charge, classification, rule, or regulation is—
    - (A) the same as, or similar to, those published or assessed by other carriers in the same trade;
    - (B) required to ensure movement of particular cargo in the same trade; or
    - (C) required to maintain acceptable continuity, level, or quality of [common carrier](/usc/46/40102.md?p=7) service to or from affected ports.

## Source credit

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1536.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 40702 | 46 App.:1708(b). | Pub. L. 98–237, § 9(b), Mar. 20, 1984, 98 Stat. 76; Pub. L. 105–258, title I, § 108(5)–(7), Oct. 14, 1998, 112 Stat. 1908. |