Shipping Act of 1916

The Shipping Act of 1916 created the United States Shipping Board and was the first US law to regulate ocean common carriers, allowing approved conference agreements to operate with antitrust immunity.

1916 US federal 39 Stat. 728

What it requires

Enacted September 7, 1916, the Act created the Shipping Board to build up a merchant fleet and regulate carriers. It required carriers to file conference and other agreements with the board, which could approve them and so exempt them from antitrust law, and banned deferred rebates, retaliation against shippers and unjust discrimination. The board's regulatory functions passed through several agencies to the Federal Maritime Commission in 1961. The Shipping Act of 1984 replaced its rules for foreign commerce.

Why it matters

The 1916 Act began the system of regulated carrier cooperation that still shapes ocean shipping, from alliance agreements to FMC oversight. Today's vessel sharing alliances, which decide which ships and ports serve each trade, are filed with the FMC under a framework that started here. For example, when Maersk and Hapag-Lloyd launched the Gemini Cooperation in 2025, its agreement was filed with the FMC beforehand, a legacy of the 1916 filing requirement. Importers feel these agreements through schedule reliability and port rotations.

Events

Related laws

Sources

Not legal advice.