Transportation Roundup: Bipartisan bill would require ocean carriers to accept U.S. container exports

Legislation now being drafted by two key members of the U.S. House Transportation and Infrastructure Committee (House T&I) aims to strengthen the ability of the U.S. Federal Maritime Commission’s (FMC) to enforce its oversight of the maritime ocean container shipping system.   

Representatives John Garamendi (D-Calif.) and Dusty Johnson (R-S.D.), chairman and minority leader, respectively, of the House T&I’s Coast Guard and Maritime Subcommittee, are proposing a bill that is largely in response to complaints from agriculture exporters about chaotic supply chain problems they face in serving overseas markets due to ocean carrier practices. 

The legislative proposal reportedly will call for amending the U.S. Ocean Shipping Act to: 

1. Strengthen the FMC’s ability to enforce its guidelines for ocean carriers’ use of detention and demurrage per diem penalties. 

1.  Bar ocean carriers from refusing to handle export bookings.     

These two issues have been the central complaints of agricultural shippers, including the Specialty Soya and Grains Alliance and Agriculture Transportation Coalition in particular, but also of other U.S. container exporters and importers. 

The legislation reportedly will call for increased funding for FMC’s Consumer Affairs and Dispute Resolution (CADRS) service to have the resources to conduct stronger oversight.  

More coverage can be found in Freightwaves and the Journal of Commerce. 

A hearing held June 15 by the House T&I Subcommittee on the Impact of Shipping Container Shortages, Delays and Increased Demand on the North American Supply Chain focused on the FMC’s efforts to address the current shipping supply chain crisis. You can watch a video recording of the hearing by clicking here. 

Compiled by Bruce Abbe, SSGA Strategic Adviser for Trade and Transportation