Controlled Carrier Act Law and Legal Definition

The Controlled Carrier Act of 1978 is the law that gives the Federal Maritime Commission the power to ensure that controlled carriers' rates are not unfairly low, giving them an unfair advantage over privately owned companies. The law is found in section 9 of the Shipping Act.

A controlled carrier is one owned or controlled by a government, as opposed to by private parties. The term controlled carrier is defined in 46 USCS § 40102. Controlled carrier means an ocean common carrier that is, or whose operating assets are, directly or indirectly, owned or controlled by a government, with ownership or control by a government being deemed to exist for a carrier if:

1. a majority of the interest in the carrier is owned or controlled in any manner by that government, an agency of that government, or a public or private person controlled by that government; or

2. that government has the right to appoint or disapprove the appointment of a majority of the directors, the chief operating officer, or the chief executive officer of the carrier. [46 USCS § 40102].