[Congressional Record Volume 144, Number 16 (Thursday, February 26, 1998)]
[Senate]
[Pages S1067-S1068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE OCEAN SHIPPING REFORM ACT
Mr. LOTT. Mr. President, I rise today to report on the status of the
Ocean Shipping Reform bill, S. 414. This bill is one of two very
important bills in the Senate which are badly needed to reform
America's maritime industry. The other such bill would implement the
OECD Shipbuilding Agreement.
A few months ago, I reported that the Ocean Shipping Act was D.I.W.--
``dead in the water''. Down on my native Gulf Coast, that usually means
the engines are broken. ``D.I.W'' doesn't mean you're sinking--it just
means you've got some work to do. It means that everyone's got to roll
up their sleeves, get down in the engine space, pitch in and get the
problem fixed.
And, I'm glad to say, that's just what the maritime industry has
done. Rolled up their sleeves and fixed the engine of the Ocean
Shipping Reform bill.
I am pleased to report that staff members of the shippers, port
authorities, ocean carriers, and labor unions--all rolled up their
sleeves and have fixed this legislation.
It was very important to get everyone working together on this bill.
The maritime industry is very large and very complex. Given the many
interests involved, it is not surprising it has required slow, steady,
and difficult work to get this bill ship-shape and steaming along.
But that work has been done--and I want to congratulate those who
have done the heavy repair work. We are now prepared to move quickly to
pass this legislation.
Mr. BREAUX. Mr. President, I too am pleased to report on the
successful efforts to prepare S. 414 for Senate passage. I would concur
with the Majority Leader that the OECD Shipbuilding Agreement bill is
badly needed and I believe it is long overdue. I am hopeful that the
progress made on S. 414 would provide momentum to pass the OECD
Shipbuilding Trade Agreement implementing legislation.
At the end of the last session, we prepared a draft Senate floor
manager's amendment to this bill and circulated it within the industry
and to members of the Senate. That draft manager's amendment was
helpful in moving S. 414 along, but it also continued to present some
serious problems to various sectors of the maritime community.
Accordingly, over the past several months, representatives of those
affected maritime sectors have worked to find an acceptable solution
and to resolve their differences. With the Commerce Committee staff's
help and guidance, a package of modifications to that original
manager's amendment have been agreed upon.
The diverse segments of the industry--U.S. ocean carriers, foreign
ocean carriers, shippers, labor, and the ports--are now in agreement on
how to reform and reduce government's role in international ocean
transportation. More importantly, all these industry sectors have
agreed on meaningful deregulation of the ocean shipping industry to
allow greater choice, flexibility, and competition in this
transportation mode.
Let me say that again. Mr. President, all these industry sectors are
now in agreement. Although it is a delicate balance, it is still an
agreement.
[[Page S1068]]
This agreement will lead to greater efficiency in providing ocean
transportation services to U.S. importers and exporters, and will
benefit American consumers. U.S. importers and exporters will now,
under the reforms of S. 414, be able to enter into more comprehensive
and productive contractual relationships with ocean carriers. At the
same time, S. 414 provides important protections for ports and labor
which will safeguard their interests in a more deregulated environment.
Mrs. HUTCHISON. Mr. President, I'd like to join my colleagues in
commending the industry representatives for their efforts in crafting
the modifications which have allowed them to join together in support
of ocean shipping reform. The scope of industry support is impressive
and includes U.S. and foreign flag carriers, the National Industrial
Transportation League, the American Association of Port Authorities,
and organized labor.
I would like to detail some of the modifications to the manager's
amendment of S. 414. I believe these modifications show how much
thought and work have gone into this agreement. Those modifications
being made to the manager's amendment of S. 414 are as follows:
1. Amend section 8(c) of the 1984 Act to provide that all service
contracts are treated in a uniform manner. Individual ocean carrier and
agreement service contracts would be filed confidentially with the FMC,
and an abbreviated set of essential terms would be made publicly
available. A similar uniform method of contract regulation was
unanimously adopted by the Senate Committee on Commerce, Science, and
Transportation for S. 414 and was included in the bill as reported.
This addresses the core concern and goal of shippers and various
carriers who want to be able to enter into contracts with confidential
rates and service terms. At the same time, it allows for some
transparency, thereby addressing the concerns of ports, labor and some
small shippers and carrier interests.
2. Revise section 8(c) of the 1984 Act to provide for a mechanism for
labor organizations to obtain information on the movement of cargo in
the dock or port area that would otherwise not be disclosed as a result
of these amended service contract publication requirements. This will
help these organizations to continue to enforce their collective
bargaining agreements with ocean carriers.
3. Continue the existing requirement that NVOCCs offer their services
to shippers pursuant to tariffs, instead of service contracts. NVOCCs,
as shippers, are free to pursue the purchase of ocean carrier service
through the amended service contract process.
4. Amend section 10(c)(4) of the 1984 Act to permit ocean carriers to
jointly negotiate U.S. inland transportation rates and services with
truck, rail or air carriers when such negotiations are subject to pro-
competitive restrictions, such as the antitrust laws. Today, ocean
carriers cooperate with respect to the utilization of space on vessels.
Enabling them to cooperate in connection with rail service, for
example, will allow for greater efficiencies. Such cooperation could
improve movement of containers in and out of the port area.
5. Revise section 13(f) of the 1984 Act to make clear that, while a
common carrier may be penalized for charging shippers less than its
tariff or service contract rates, a carrier should not be able to
collect from the shipper the difference between the tariff or contract
rate and the rate actually charged and agreed upon in writing. The
collection of these so-called ``undercharges'' was a major problem for
shippers when the trucking industry was deregulated. We want to avoid
any recurrence of that problem in connection with ocean shipping
reform.
Finally, we will clarify that members of an agreement will not be
penalized under the revised 1984 Act because a member divulges
confidential service contract information. The offending member will be
liable for breach of contract damages, but the government should have
no role in policing the confidential agreements of carriers and
shippers. While no revision to S. 414 is needed to accomplish this
objective, an appropriate statement of clarification will be made by
the managers of the bill.
Mr. President, again let me express my appreciation to all those who
have worked on and support these modifications and the passage of
meaningful ocean shipping reform. I and my colleagues, as well as the
maritime industry, look forward to enacting this bill this year.
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