White House Supports Ocean Shipping Reform Act, Calls for More Funding for FMC

The White House, in a blog post that noted some wins for easing port congestion, said Congress should provide the Federal Maritime Commission with "an updated toolbox to protect exporters, importers, and consumers from unfair practices." It said that the Ocean Shipping Reform Act, a bipartisan bill introduced in the House in August (see 2108100011), "includes good first steps towards the type of longer-term reform to shipping laws that would strengthen America’s global competitiveness."

The White House said the FMC needs more than $30 million a year to oversee global shipping, and there should be public reporting of detention and demurrage fees.

The Ocean Shipping Reform Act would require shippers to accept export containers if they can be loaded safely, arrive in time, and are going to a destination the ship is already scheduled to serve. The blog noted that agricultural exports are up 6% when measured by weight compared to the same period last year, but also acknowledged that those that move in containers, such as cotton and fresh fruit, are down 2%. About a quarter of agricultural exports go by container, the White House said. Savannah's port moves the most containers of ag exports, it said, and said that the five pop-up container yards established near there will provide farmers more ways "to get commodities via truck or rail to this critical port."

The White House also noted that they convinced carriers to clear out empty containers faster to ease port congestion, including by bringing ships in just for empty removal.