Crapo, Colleagues Introduce Bipartisan Legislation to Ease Shipping Backlogs, Boost U.S. Exports

Washington, D.C.--U.S. Senator Mike Crapo (R-Idaho) joined Senators John Thune (R-South Dakota) and Amy Klobuchar (D-Minnesota) to introduce S. 3580, the Ocean Shipping Reform Act (OSRA), which would update federal regulations for the global shipping industry.  The bill would address global competitiveness issues for American exporters by making it more difficult for ocean carriers to unreasonably refuse goods ready for shipment at export facilities and it would give the Federal Maritime Commission (FMC) greater rulemaking authority to regulate harmful practices by carriers.    

“The global supply chain continues to experience lingering problems, hurting American agricultural producers supplying most of the world’s food and skyrocketing shipping costs.  This bipartisan legislation will provide the FMC greater rulemaking authority to regulate harmful practices by shipping carriers and address congestion at our ports,” said Senator Crapo.  “It’s important we continue to streamline the logistics and ocean shipping processes for American producers and businesses.” 

The bill is also co-sponsored by U.S. Senators Tammy Baldwin (D-Wisconsin), Marsha Blackburn (R-Tennessee), Richard Blumenthal (D-Connecticut), Cory Booker (D-New Jersey), Joni Ernst (R-Iowa), John Hoeven (R-North Dakota), Mark Kelly (D-Arizona), Roger Marshall (R-Kansas), Jerry Moran (R-Kansas), Gary Peters (D-Michigan), Debbie Stabenow (D-Michigan) and Todd Young (R-Indiana).  The House of Representatives passed a companion version, which was led by U.S. Representatives Dusty Johnson (R-South Dakota) and John Garamendi (D-California). 

The Ocean Shipping Reform Act would:

• Prohibit ocean carriers from unreasonably declining opportunities for U.S. exports, as determined by the FMC in a new required rulemaking;
• Promote transparency by requiring ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that makes port in the United States;
• Authorize the FMC to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures, as appropriate; and
• Establish new authority for the FMC to register shipping exchanges to improve the negotiation of service contracts.  

The FMC is the independent federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers and consumers.  The FMC is primarily responsible for ensuring that ocean carriers and marine terminal operators engage in fair and competitive practices with respect to the movement of goods, while upholding the integrity of service contracts to guard against detrimental effects to shipping.  Additionally, the FMC monitors rates, charges and rules of government-owned or controlled carriers to ensure they are just and reasonable, which promotes fluidity and competition in U.S. international trade.  

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