Ocean Carriers Criticize Biden's State of the Union Address
The World Shipping Council pushed back against comments by President Joe Biden that the ocean carrier industry is unfair and uncompetitive, saying carriers “actively compete against one another in the global marketplace, including on the shipping lanes most relevant for U.S. trade.” In his first State of the Union address March 2, Biden said ocean carriers benefit from uncompetitive practices that drive up shipping prices.
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“Allegations that the container shipping industry is highly concentrated and uncompetitive are factually incorrect,” the WSC, which represents many of the world’s major carriers, said in a statement this week. After Biden's speech, WSC CEO John Butler called it "disappointing that unfounded allegations are being levied against an industry that is moving more cargo right now than at any time in history in order to meet the unprecedented demand for imported goods” during the COVID-19 pandemic.
The WSC also called the Ocean Shipping Reform Act “deeply flawed,” adding that it won’t “solve the landside logistics breakdowns that are at the heart of America’s supply chain problems.” The House recently passed the bill -- which would seek to hold carriers accountable for unfair fees and practices -- and a similar measure was introduced in the Senate (see 2202040009 and 2202030062).