Rep. Courtney Votes to Support Farmers and Manufacturers by Cracking Down on Exorbitant Ocean Shipping Costs

Press Release

Today, Rep. Joe Courtney (CT-02) voted to pass bipartisan legislation to ease the burden of rising costs on American families, farmers, and small businesses, while also boosting American exporters' ability to efficiently deliver products to the global marketplace. The Ocean Shipping Reform Act (S. 3580) will crack down on exorbitant fees being charged by international shipping companies and prevent American-made goods from being left on the dock. Rep. Courtney Ocean Shipping Reform Act passed the was previously passed by the U.S. Senate, and now heads to the President's desk for signature. 369-42

"Our agriculture sector was among the hardest hit by COVID-19, and I've stayed close in touch with our farming families here in eastern Connecticut since the start of the pandemic to ensure they had access to support when they needed it, and more importantly to help offset unstable market conditions for the long-haul," said Congressman Courtney. "Relief funding through bills like American Rescue Plan has helped many of our farmers make it through, but what they need more than anything is a return to a more predictable market where the rules are fairly enforced. Unfair shipping practices have raised the cost of goods here at home, and they've prevented many of our farmers and manufacturers from selling onto the global market. The Ocean Shipping Reform Act will give the Federal Maritime Commission the authority and the resources it needs to reign unfair shipping practices back in, and in turn will provide a boost to our farmers and manufacturers who export their products, boost American competitiveness, and help lower prices here in Connecticut. Proud to help pass this bill on a bipartisan basis."

Foreign-based shipping companies have driven up costs during the COVID-19 pandemic by impeding the ability of American farmers and small businesses to get their products to market. Exporters and importers continue to face unpredictable shipping itineraries, rising freight costs, and even refusal by shipping companies to carry American cargo.

The Ocean Shipping Reform Act will help level the playing field by empowering the Federal Maritime Commission (FMC) to strengthen oversight of the shipping market and lower costs for consumers. The bill will boost funding for the FMC and implement several key measures:

Ensuring Fairness in Shipping--The bill would help prevent international ocean carriers from unreasonably declining American cargo space, as determined by the Federal Maritime Commission, and directs the FMC to self-initiate investigations of ocean carriers' business practices, and to apply enforcement measures where necessary.
Combatting Exorbitant Shipping Costs-- The bill shifts the burden of proof regarding overcharging certain container fees--called "demurrage and detention" charges--from the complainant to the international ocean carriers to help level the playing field and improve the FMC's enforcement capacity, and requires international ocean carriers to report to the FMC regarding how many empty containers are being transported, which will improve transparency of movement of U.S. agricultural and other exports.
Improves Service for American Businesses--The bill would formally establish the FMC Office of Consumer Affairs and Dispute Resolution Services to improve the complaint and investigation process for American businesses seeking assistance from the Federal Maritime Commission.
Provides Necessary Resources to the FMC--The bill authorizes the FMC to operate for FY 2022-2025, increasing the funding for the FMC from $32 million in 2022 to $50 million in 2025. This would ensure the FMC has the resources it needs to conduct its enhanced role.
The Ocean Shipping Reform Act has been endorsed by a broad coalition of more than 94 trade groups representing U.S. importers, exporters, manufacturers, agricultural producers, and other supply chain stakeholders. Endorsing organizations include the National Association of Manufacturers, American Association of Exporters and Importers, National Retail Federation, Association of Food Industries and Consumer Technology Association.

This legislation builds on House's ongoing work to strengthen supply chains and bring down costs for working families. Later this week, the House will vote on the Lower Food and Fuel Costs Act to slash prices in the grocery aisle and at the gas pump by supporting America's farmers and ranchers.

The House previously passed the Consumer Fuel Price Gouging Prevention Act to combat excessive gas price hikes within the oil industry. Earlier this year, the House passed the America COMPETES Act to strengthen the United States' broken supply chains and prevent goods shortages.

Additionally, the Bipartisan Infrastructure Law (the IIJA) delivered $17 billion in funding for the United States' ports and waterways--the largest-ever federal investment in port infrastructure.

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