This ease involves a challenge under Sections 289 and 883 of the coastwise shipping laws, 46 U.S.C. §§ 289, 883 (1976 & Supp. V 1981), to the legality of certain shipping services provided by a foreign-flag water carrier. Section 289 bars foreign-flag vessels from transporting passengers between United States ports either directly or by way of a foreign port. Section 883 presents a similar bar to foreign-flag transport of merchandise between American ports. A group of plaintiffs comprising land carriers, U.S.-flag water carriers, and
While we agree with most of the District Court opinion, we think the court improperly denied the union standing to bring a claim under Section 289. Because we find the union has standing under this section, we address the merits of this claim as well as the claim under Section 883 and we find that the foreign-flag service challenged in this ease violates neither section. We therefore affirm the District Court’s conclusion that SWC’s service should not be enjoined.
I. Background
Scandinavian World Cruises, Ltd. (SWC), a corporation organized under the laws of the Bahamas, has since October 1, 1982 operated three Bahamian-flag vessels in the Atlantic trade. One vessel operates between New York and Freeport, Grand Bahama. The other two make daily voyages between Freeport and Florida (one to Miami and the other to Port Canaveral). All three vessels carry both passengers and automobiles. Passengers pay the same price whether or not they bring their automobiles. Automobiles are treated as baggage; passengers simply drive them onto ble vessels and have access to them throughout the voyage.
Though SWC does not provide direct service from New York to Florida, it does advertise a New York to Florida cruise. On July 25, 1982 SWC ran an advertisement in the New York Times that read: “Cruise to Florida for less than it costs to drive.” Federal Defendants’ Statement Of Material Facts As To Which There Is No Genuine Issue ¶ 4, JA 25. Passengers desiring this service travel from New York to Freeport in one SWC vessel, disembark and clear customs, and then transfer to another SWC vessel for the trip from Free-port to Florida. Ninety-eight percent of the SWC passengers leaving New York with automobiles during the period October 30, 1982 to December 30, 1982 had reservations to continue to Florida with SWC, and 90 percent of this group spent less than 48 hours in Freeport. Similarly, 75 percent of all SWC passengers — those with automobiles and those without — who booked a New York to Freeport trip had advance reservations to continue to Florida on an SWC vessel. Ninety percent of these through-travellers spent less than 48 hours in Freeport, most less than 24 hours. See Intervening Plaintiffs’ Statement Of Material Facts As To Which There Is No Genuine Issue, Tables 1 & 2, JA 35-36.
This litigation commenced in the summer of 1982. In response to SWC’s advertisement in the New York Times on July 25th, several interstate truck and rail carriers of automobiles (the land carriers)
The gravamen of plaintiffs’ complaint was that SWC’s indirect New York to Florida service impermissibly infringed the coastwise monopoly guaranteed to American vessels under Sections 289 and 883 of Title 46 of the United States Code. Section 289 states: “No foreign vessel shall transport passengers between ports or places in the United States, either directly or by way of a foreign port * * *.” 46 U.S.C. § 289 (1976). Section 883 states: “No merchandise shall be transported by water, or by land and water, * * * between points in the United States, * * * either directly or via a foreign port, or for any part of the transportation, in any other vessel than a vessel built in and documented under the laws of the United States * * Id. § 883 (Supp. V 1981). These statutory sections are bulwarks of a legal structure that guarantees a coastwide monopoly to American shipping and thereby promotes development of the American merchant marine.
The District Court denied plaintiffs’ motion for a preliminary injunction prohibiting SWC’s service. Findings of Fact and Conclusions of Law, September 21, 1982, JA 11. Both plaintiffs and defendants then moved for summary judgment, and on March 8, 1983 the District Court entered summary judgment for defendants. The court found that no plaintiff had standing to bring a challenge based on Section 289 and that only the water carriers and the union had standing to bring a challenge based on Section 883. On the merits the court held that SWC’s service did not violate Section 883 because the automobiles shipped were not “merchandise” within the meaning of the statutory term, but were merely the accompanied baggage of passengers. Mem.Op., JA 49. The water carriers and the union then appealed to this court.
II. Analysis
We agree with the District Court’s result and with much of its reasoning. Our analysis differs from that of the District Court with respect to the union’s standing, however, and this difference requires us to reach the issue that the District Court found no need to reach: whether SWC’s indirect New York to Florida service violates Section 289. We hold that it does not and therefore affirm the District Court’s decision that SWC’s service does not violate the coastwide laws. See Langnes v. Green,
A. Standing
Valley Forge Christian College v. Americans United for Separation of Church and State,
Art. III requires the party who invokes the court’s authority to “show [1] that he personally has suffered some actual or threatened injury as a result of the putatively illegal conduct of the defendant,” * * * [2] that the injury “fairly can be traced to the challenged action” and [3] “is likely to be redressed by a favorable decision” * * *. * * *
Id. at 472,
Applying these principles, the District Court found that the motor carriers lacked standing to bring either a Section 289 claim or a Section 883 claim because they met neither the “redressibility” aspect of the constitutional test nor the prudential “zone of interests” test. The court then found that the water carriers met the three-part constitutional test but came within the “zone of interests” only of Section 883. The court limited the water carriers to a Section 883 claim because it found that none of the three was providing or contemplating passenger service between New York and Florida; they planned only to ship automobiles. Implicit in this holding is the view that the interest the water carriers asserted was the right to be free of illegal foreign competition in the coast-wise shipment of automobiles. Since Section 289 guaranteed a domestic monopoly for coastwise transportation of passengers the court held that these plaintiffs were not seeking protection of an interest within the “zone” of that section. Mem.Op. at 9-11, JA 57-59.
The court likewise held that the union met the constitutional test but fell within the “zone of interests” of only Section 883. Because the union did not “possess any members * * * currently serving as the crews of U.S.-flag vessels engaged in the coastwise trade between New York and Florida,” Mem.Op. at 9, JA 57, the court concluded that the union did not independently come within the “zone of interests” of either Section 289 or Section 883. The court found, however, that the union had standing derivative of that of the water carriers because the union was under contract with one of them to crew a vessel that would ship automobiles between New York and Florida. Mem.Op. at 9-11 & n. 6, JA 57-59. Thus the union, like the water carriers, was permitted to assert the Section 883 claim but not the Section 289 claim.
In our judgment the District Court correctly found that the water carriers and the union were within Section 883’s zone of interests but erred in finding that the union did not fall within Section 289's zone of interests. Though the prudential “zone” test has been roundly criticized, see Copper & Brass Fabricators Council, Inc. v. Dep’t of the Treasury,
As formulated in this circuit, the zone of interests test “requires some indicia — however slight — that the litigant before the court was intended to be protected, benefited or regulated by the statute under which suit is brought.” Copper & Brass Fabricators Council, supra,
In the present case abundant evidence confirms that Congress intended the laws creating a coastwise monopoly for domestic shippers and crews, including Section 289, to protect the livelihood of American seamen, whose interests the union represents. At least 75 percent of those who crew American passenger ships in the coastwise trade must be American citizens. 46 U.S.C. § 672a (1976). Thus in guaranteeing a monopoly for domestic shippers the coastwise laws protect the livelihood of union members.
In Curran v. Laird,
Though the District Court’s zone of interests analysis was flawed, the court’s concern over the fact that no union members crewed any Atlantic coastwide passenger ships in the New York to Florida trade implicitly raises legitimate issues that should have been resolved under the standing tests for constitutionally sufficient injury. The District Court appears to have read the union’s complaint as alleging a loss of present jobs and wages as a consequence of SWC’s putatively illegal service. If so the union should probably have been found to lack constitutionally sufficient standing since it has not alleged that its members crew or are about to crew competing ships in the Atlantic coastwise passenger trade and thus SWC’s service poses
Such injury is far greater than the “identifiable trifle” sufficient to meet the “actual or threatened injury” aspect of the constitutional test. See Public Citizen v. Lockheed Aircraft Corp.,
In the present case the chain consists of only one connecting link and it is this: absent SWC’s service, domestic carriers would move in to meet the heavy demand for New York to Florida transport of passengers and automobiles. Given that SWC has captured the market for what appears to be a booming trade and that competitors are already preparing to enter the market for automobile shipment, we find it most plausible that U.S.-flag carriers, with crew positions for union members to fill, would move in to capture the passenger market if SWC were precluded from continuing its service. Indeed, the premise that exclusion of foreign-flag shippers will prompt domestic shippers to exploit existing markets for coastwise shipping undergirds the structure of the coastwise laws; we must give great weight to this congressional finding in our standing inquiry. Similarly, though we do not know to a certainty that the requested relief would ensure future jobs for union members by drawing U.S.-flag carriers into the New York to Florida passenger trade, we find such a result highly likely. See Valley Forge Christian College, supra,
Because we have found that the union has standing to assert both the Section 289 claim and the Section 883 claim, we will proceed to the merits of those claims without deciding whether the District Court properly denied standing to the water carriers under Section 289.
B. The Alleged Violations of the Coast-wise Laws
1. Section 289. Section 289 prohibits any “foreign vessel” from transporting passengers between United States ports “either directly or by way of a foreign port.” 46 U.S.C. § 289. At first blush SWC’s service would seem to fall within the range of activity that Section 289 proscribes. Most passengers on SWC’s foreign-flag vessels are traveling from New York to Florida by way of a foreign port. Were we writing on a tabula rasa we might well agree with appellants that SWC’s conduct amounts to an invasion of Section 289’s guarantee of domestic monopoly. Contrary agency interpretation of
In a letter ruling the United States Customs Service (Customs) specifically approved SWC’s proposed indirect New York to Florida passenger service. Interpreting Section 289, Customs stated: “The transportation of passengers between ports in the United States either directly or by way of a foreign port, as contemplated by the statute, includes only those cases where but one foreign vessel is involved in the continuous transportation.” Customs Ruling 103340 (1978) at 1-2, JA 83-84. Since SWC uses two vessels to provide its indirect New York to Florida service, Customs found no violation of Section 289. The agency’s ruling in this case accords with consistent Customs interpretation of Section 289. See Customs Ruling 100636 (1973), JA 82 (“In view of the fact that the passengers [on a Maine to Nova Scotia to Florida service] are not transported by a foreign vessel between two ports in the United States, two separate vessels being used with the transfer of the passengers in a foreign country, no violation of section 289 * * * will occur.”); Customs Ruling of July 1, 1954 (unnumbered), JA 80. In short, Section 289, as interpreted by Customs, aims at the route of the vessel, not the route of the passengers.
We have some trouble seeing how a focus on the route of the vessel rather than the route of the passengers better advances the congressional purpose of assuring domestic monopoly over coastwise transportation of passengers. And even if we are bound to give deference to this agency interpretation of its governing statute, we can of course overturn that interpretation if we find that it is “inconsistent with a statutory mandate or * * * frustrate^] the congressional policy underlying a statute.” NLRB v. Brown,
First, Congress has acquiesced in Customs’ interpretation for almost a century
2. Section 883. In Customs Ruling 103340 Customs approved SWC’s proposals for both passenger transport and automobile transport. The ruling stated
III. Conclusion
Though we have some doubts about Customs’ decision to permit SWC’s indirect New York to Florida service, we defer to this decision because it accords with the indicia of congressional intent we have been able to find. If we have erred in reading Sections 289 and 883 as permitting SWC’s indirect coastwise service, we expect that Congress will rouse from its long acquiescence in that interpretation and so instruct us. Absent such instruction we adhere to the current understanding that the coastwise laws do not prohibit foreign-flag transport of passengers and automobiles between two domestic ports as long as more than one vessel is used in the transport. We therefore affirm the District Court.
Affirmed.
Notes
. The land carrier plaintiffs are: Autolog Corporation, American Auto Shippers, Inc., Dependable Car Travel Service, Inc., and Auto Express, Inc.
. We echo Judge Ginsburg’s expression of concern in Copper & Brass Fabricators v. Dep’t of the Treasury,
. In Tax Analysts & Advocates v. Blumenthal,
. The land carriers did not appeal the District Court decision. We thus express no opinion on whether the court properly denied standing to this group of plaintiffs.
. This interpretation was first advanced in an opinion of the Attorney General, 18 Op. Att’y Gen. 444, 446-447 (1886), and was reiterated in 36 Op. Att’y Gen. 352, 354 (1930).
