The U.S. House of Representatives on Wednesday, 8 December, passed a bill that seeks to reform the Federal Maritime Commission and reduce the country's trade deficit.
By a 364-60 vote, H.R. 4996, the Ocean Shipping Reform Act, now heads to the U.S. Senate. In a statement, co-sponsors U.S. Rep. John Garamendi (D-California) and U.S. Rep. Dusty Johnson (R-South Dakota) said that the legislation would protect American consumers and businesses.
“If you want to do business with American ports, you need to play by our basic rules,” Johnson said. “I am proud of the coalition Congressman Garamendi and I have worked to build over the last year. The Ocean Shipping Reform Act puts American consumers, farmers, retailers, truckers, manufacturers, and small businesses first.”
In March 2021, the two congressmen joined with more than 100 other House members to call for the commission to protect American interests after hearing reports that some cargo ships refused to accept U.S. exports for shipment back to Asia.
The bill calls on the FMC to add “reciprocal trade” to promote exports as part of its mission, prevent carriers from denying unreasonable opportunities for U.S. exports, and require those carriers to report quarterly to the commission on import and export tonnage per vessel that reaches a domestic port.
“Access to the American market and its consumers is a privilege, not a right,” Garamendi said. “Congress must restore balance at our ports and tackle the longstanding trade imbalance our nation has with China and other countries head on.”
The legislation comes as the country has faced a backlog of cargo ships looking to unload their shipments at U.S. ports. The Biden administration last month called on Congress to act and give the commission more tools to address the shipping crisis. That call included support for H.R. 4996.
While the lawmakers focused more on agricultural exports in pushing for the bill, the legislation may also help the U.S. address the seafood trade deficit, which reached nearly USD 17 billion (EUR 15.1 billion) in 2019.
National Fisheries Institute President John Connelly said in a statement the bill represents “a good first step” to finding a solution to pressing trade issues related to high shipping prices, shipping companies’ prioritization of Asian goods coming to the U.S., and ongoing port congestion in the U.S.
“Especially for small businesses, the supply chain crisis continues unabated, and whether it’s preventing shipping lines from sending empty containers back or expanding U.S. enforcement powers, a focus on these issues now is needed,” Connelly said.
Photo courtesy of Philip Pilosian/Shutterstock
