U.S. Sen. Maria Cantwell (D-WA), chair of the Committee on Commerce, Science and Transportation, recently applauded the passage of the Ocean Shipping Reform Act by the Senate on Thursday.
The bill, aimed at cracking down on skyrocketing shipping costs while boosting farmers’ and exporters’ ability to get their goods to the global marketplace, passed unanimously after advancing out of committee on March 22.
“Today, we’re saying that American farmers matter and their survival matters more than the exorbitant profit of international shipping companies,” Cantwell said. “American exporters and their products are being left on the docks, and that’s why we wanted to act quickly, because the American farmer, with growing season upon us, can’t afford to wait another minute for the Federal Maritime Commission to do its job and help police this market and make sure our products and farmers are not being overcharged or left on the dock.”
The bill would provide the Federal Maritime Commission (FMC) with the tools necessary to improve oversight over international ocean carriers and address rising shipping fees facing consumers, Cantwell’s office said.
During the COVID-19 pandemic, American consumers shifted their buying habits to online shopping, resulting in port congestion that left exporters, including American farmers, struggling to get their goods to market because of unpredictable sailing, ocean carriers denying American cargo, and higher than average freight costs. Shipping rates for a 40-foot container went from $1,300 before the pandemic to $11,000 by Sept. 2021.
The Ocean Shipping Reform Act, Senate Bill 3580, would stop international shipping companies from unreasonably declining American cargo, direct the FMC to self-initiate investigations into ocean carrier’s business practices and apply enforcement measures, and improve the transparency of movement of U.S. agricultural and other exports by requiring international shipping companies to report to the commission how many empty containers are being transported, among other improvements.
The legislation, introduced by Sens. Amy Klobuchar (D-MN) and John Thune (R-SD), is sponsored by dozens of organizations, including the Agriculture Transportation Coalition (AgTC), the National Retail Federation, the National Industrial Transportation League, the Home Furnishings Association, the Hardwood Federation, the National Milk Producers Federation, American Trucking Associations (ATA), Tyson Foods, and the American Home Furnishings Alliance.