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OCEAN SHIPPING REFORM ACT OF 2021
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HON. JOHN GARAMENDI
of california
in the house of representatives
Tuesday, August 10, 2021
Mr. GARAMENDI. Madam Speaker, today I introduce the ``Ocean Shipping Reform Act of 2021,'' with Congressman Dusty Johnson (R-SD). Our bipartisan legislation would better support American exporters by ensuring reciprocal trade to help reduce the United States' longstanding trade imbalance export-driven countries like mainland China.
This would be the first major overhaul of federal regulations for the global ocean shipping industry time since Congress passed the Ocean Shipping Reform Act of 1998 (Public Law 105-258). There has since been considerable consolidation amongst the `` foreign-based ocean carriers, coinciding with the continued decline of the U.S.-flagged international fleet. In late 2001, the People's Republic of China was granted permanent normal trade relations with the United States, so-called
``most-favored nation'' status, following the country's admission to the World Trade Organization.
Foreign businesses' access to the American market and our consumers is a privilege, not a right. California's agricultural exporters and other businesses are willing to pay to ensure that their products reach emerging markets in the Asia-Pacific. In turn, companies looking to offload foreign-made products at West Coast ports must provide opportunities for American exports. Congress must ensure reciprocity in trade with other countries to reduce the United States' trade imbalance, particularly with cheap imports from Asia. Even during a global pandemic, trade must be mutually beneficial, and that is exactly what our bipartisan bill would ensure.
On March 9, 2021, Congressman Johnson and I joined over 100 Members of Congress in a bipartisan letter urging the Federal Maritime Commission to crack down on anti-competitive, unfair, and likely illegal business practices by some ocean carriers during the height of the pandemic in 2020. Dozens of agricultural exporters contacted my office reporting that ocean carriers simply refused to accept cargo bookings for U.S. exports, instead choosing to send cannisters empty back to the Asia-Pacific, as quickly as possible. Outright refusing to take U.S. exports at seemingly any price is simply not an acceptable business practice by the ocean carriers.
On June 15, 2021, Congressman Johnson and I announced our intention to pursue this legislation, at the Maritime Subcommittee's hearing on the ``Impacts of Shipping Container Shortages, Delays, and Increased Demand on the North American Supply Chain.''
On July 20, 2021, the Federal Maritime Commission established a new audit program to assess ocean carriers' compliance with federal regulations on detention and demurrage and increase the agency's monitoring of the marketplace for ocean cargo services. This action underscores the need for our bipartisan legislation.
Madam Speaker, I urge all members to cosponsor the ``Ocean Shipping Reform Act of 2021.'' As a member of the House Committee on Transportation and Infrastructure, where I serve with Congressman Johnson, and the former ranking member of the Maritime Subcommittee from the 113th to the 115th Congresses, I plan to make this legislation a major priority. Specifically, I hope to include our bipartisan legislation in the maritime title of the next Coast Guard Authorization Act for fiscal years 2022 to 2023.
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SOURCE: Congressional Record Vol. 167, No. 145
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