Ocean Shipping Reform Implementation Passes House
The Ocean Shipping Reform Implementation Act, which gives the Federal Maritime Commission power to investigate allegations against shipping exchanges, passed the House March 21 by a vote of 393-24. It also directs the FMC to establish standards for price indexes published by shipping exchanges, such as the Shanghai Shipping Exchange.
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When the bill was first introduced a year ago by Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D., (see 2303290079), it was supported by both trade groups that represent agricultural product exporters and the Consumer Brands Association.
The bill is aimed at addressing the influence of the Chinese government on ocean-going commerce to the U.S., and gives the FMC the ability to designate a private vessel based in a nonmarket economy (such as China) as a controlled carrier. The FMC can regulate market rates for controlled carriers.
It also prohibits port authorities from using LOGINK or any similar Chinese state-affiliated transportation logistics platform.
The bill also creates a committee with marine terminal operators and port authority officials to advise the FMC on efficiency, reliability and competitiveness in ocean freight.