[Congressional Record Volume 141, Number 40 (Friday, March 3, 1995)]
[Extensions of Remarks]
[Page E504]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                 OCEAN SHIPPING INDUSTRY CHANGES NEEDED

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                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                          Friday, March 3, 1995
  Mr. TRAFICANT. Mr. Speaker, the Subcommittee on Coast Guard and 
Maritime Transportation, upon which I serve as the ranking Democrat, 
will soon begin consideration of changes to the Shipping Act of 1984 
and the future role of the Federal Maritime Commission in the ocean 
shipping industry. As the subcommittee and, eventually, the full 
Committee on Transportation and Infrastructure, move forward on these 
issues, I would like you and our colleagues to know what I believe 
needs to come out of the legislative process.
  First, I believe the functions of the Federal Maritime Commission 
need to be maintained, particularly with regard to protecting our ocean 
carrier industry and shippers against unfair and anticompetitive trade 
practices of foreign governments and carriers. In fact, this should 
become more of a focus and a higher priority for the commission. And 
given the public's general call for smaller and more efficient 
government, the commission should take steps to downsize and rightsize 
its operations, just as we expect all Government agencies and 
departments to do.
  Second, I believe the hearings held in February by the subcommittee 
indicated that important modifications can be made to the Shipping Act 
of 1984 that would provide a much greater degree of flexibility in the 
business relationships between shippers and ocean carriers. Right now, 
conferences of ocean carriers with broad antitrust immunity restrict a 
number of types of transactions and relationships in the ocean shipping 
business. For instance, service contracts, which are long-term large 
volume arrangements between carriers and shippers, should not be 
restricted or prohibited by the carrier conferences or their members. 
Also, carriers that want to offer a rate to a shipper that is different 
than that of the carrier conference should be able to do so on a much 
quicker basis.
  These kinds of reforms at the Federal Maritime Commission and in the 
Shipping Act will bring significant improvements to our trading 
relationships around the globe. The relationships between the shipping 
public and the ocean carrier industry would also be beneficially 
changed so that U.S. industry generally would be in a more competitive 
posture in the world marketplace.
  I look forward to working with the leadership and members of the 
Transportation and Infrastructure Committee to develop legislation to 
accomplish these ends.


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