---
type: "LegalText"
title: "46 U.S.C. § 40701"
description: "Rates"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 46
title_name: "SHIPPING"
chapter_number: "407"
chapter_name: "CONTROLLED CARRIERS"
section: "40701"
citation: "46 U.S.C. § 40701"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc46@119-100.zip"
source_identifier: "/us/usc/t46/s40701"
source_file: "data/legal/raw/us/code/title-46/usc46.xml"
source_hash: "b68fbcfb72c76c2aea5d9fd4879e41fe865fe10a6aa26b80333a0b7a40e1ae47"
raw_snapshot_hash: "eb1331aa3c08ed87231a3606d86b30d1b5942cdf8542f6a3df8ac1d66e86057f"
text_hash: "f22ea253b2735c2538e0f0392117bbc5c5d00c547ce55eff8d27441e0827a172"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---

# 46 U.S.C. § 40701 - Rates

## Text

(a) In General.— A controlled carrier may not—

(1) maintain a rate or charge in a tariff or service contract, 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 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, 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 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 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 is void and its use is unlawful.

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

## Notes

Historical and Revision Notes RevisedSectionSource (U.S. Code)Source (Statutes at Large) 4070146 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.