---
kind: "section"
citation: "46 U.S.C. § 40904"
title: "46"
title_heading: "Shipping"
number: "40904"
heading: "Compensation by common carriers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/40904"
units:
  - "Subtitle IV — Regulation of Ocean Shipping"
  - "Part A — Ocean Shipping"
  - "Chapter 409 — Ocean Transportation Intermediaries"
---

# §40904. Compensation by common carriers

- (a) **Certification of License and Services.—** A [common carrier](/usc/46/40102.md?p=7) may compensate an [ocean freight forwarder](/usc/46/40102.md?p=19) for a [shipment](/usc/46/40102.md?p=22) dispatched for others only when the [ocean freight forwarder](/usc/46/40102.md?p=19) has certified in writing that it holds an [ocean transportation intermediary](/usc/46/40102.md?p=20)’s license (if required under [section 40901 of this title](/usc/46/40901.md)) and has—
  - (1) engaged, booked, secured, reserved, or contracted directly with the carrier or its agent for space aboard a vessel or confirmed the availability of the space; and
  - (2) prepared and processed the ocean bill of lading, dock receipt, or other similar document for the [shipment](/usc/46/40102.md?p=22).
- (b) **Dual Compensation.—** A [common carrier](/usc/46/40102.md?p=7) may not pay compensation for services described in [subsection (a)](#a) more than once on the same [shipment](/usc/46/40102.md?p=22).
- (c) **Beneficial Interest Shipments.—** An [ocean freight forwarder](/usc/46/40102.md?p=19) may not receive compensation from a [common carrier](/usc/46/40102.md?p=7) for a [shipment](/usc/46/40102.md?p=22) in which the [ocean freight forwarder](/usc/46/40102.md?p=19) has a direct or indirect beneficial interest. A [common carrier](/usc/46/40102.md?p=7) may not knowingly pay compensation on that [shipment](/usc/46/40102.md?p=22).
- (d) **Limits on Authority of Conference or Group.—** A [conference](/usc/46/40102.md?p=8) or group of two or more [ocean common carriers](/usc/46/40102.md?p=18) in the foreign commerce of the United States that is authorized to agree on the level of compensation paid to an [ocean freight forwarder](/usc/46/40102.md?p=19) may not—
  - (1) deny a member of the [conference](/usc/46/40102.md?p=8) or group the right, upon notice of not more than 5 days, to take independent action on any level of compensation paid to an [ocean freight forwarder](/usc/46/40102.md?p=19); or
  - (2) agree to limit the payment of compensation to an [ocean freight forwarder](/usc/46/40102.md?p=19) to less than 1.25 percent of the aggregate of all rates and charges applicable under a tariff and assessed against the cargo on which the services of the [ocean freight forwarder](/usc/46/40102.md?p=19) are provided.

## Source credit

(Pub. L. 109–304, § 7, Oct. 6, 2006, 120 Stat. 1539.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 40904 | 46 App.:1718(e). | Pub. L. 98–237, § 19(e), Mar. 20, 1984, 98 Stat. 88; Pub. L. 105–258, title I, § 116, Oct. 14, 1998, 112 Stat. 1912. |

In this section, the words “ocean freight forwarder” are substituted for “ocean transportation intermediary, as defined in section 1702(17)(A) of this Appendix” and “ocean transportation intermediary” because the definition of “ocean transportation intermediary” in section 1702(17)(A) contains a definition of “ocean freight forwarder” which is restated as a separate definition.

In subsection (d)(1), the word “calendar” is omitted as unnecessary.