[Congressional Record Volume 167, Number 145 (Tuesday, August 10, 2021)]
[Extensions of Remarks]
[Page E888]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   OCEAN SHIPPING REFORM ACT OF 2021

                                 ______
                                 

                          HON. JOHN GARAMENDI

                             of california

                    in the house of representatives

                        Tuesday, August 10, 2021

  Mr. GARAMENDI. Madam Speaker, today I introduce the ``Ocean Shipping 
Reform Act of 2021,'' with Congressman Dusty Johnson (R-SD). Our 
bipartisan legislation would better support American exporters by 
ensuring reciprocal trade to help reduce the United States' 
longstanding trade imbalance export-driven countries like mainland 
China.
  This would be the first major overhaul of federal regulations for the 
global ocean shipping industry time since Congress passed the Ocean 
Shipping Reform Act of 1998 (Public Law 105-258). There has since been 
considerable consolidation amongst the `` foreign-based ocean carriers, 
coinciding with the continued decline of the U.S.-flagged international 
fleet. In late 2001, the People's Republic of China was granted 
permanent normal trade relations with the United States, so-called 
``most-favored nation'' status, following the country's admission to 
the World Trade Organization.
  Foreign businesses' access to the American market and our consumers 
is a privilege, not a right. California's agricultural exporters and 
other businesses are willing to pay to ensure that their products reach 
emerging markets in the Asia-Pacific. In turn, companies looking to 
offload foreign-made products at West Coast ports must provide 
opportunities for American exports. Congress must ensure reciprocity in 
trade with other countries to reduce the United States' trade 
imbalance, particularly with cheap imports from Asia. Even during a 
global pandemic, trade must be mutually beneficial, and that is exactly 
what our bipartisan bill would ensure.
  On March 9, 2021, Congressman Johnson and I joined over 100 Members 
of Congress in a bipartisan letter urging the Federal Maritime 
Commission to crack down on anti-competitive, unfair, and likely 
illegal business practices by some ocean carriers during the height of 
the pandemic in 2020. Dozens of agricultural exporters contacted my 
office reporting that ocean carriers simply refused to accept cargo 
bookings for U.S. exports, instead choosing to send cannisters empty 
back to the Asia-Pacific, as quickly as possible. Outright refusing to 
take U.S. exports at seemingly any price is simply not an acceptable 
business practice by the ocean carriers.
  On June 15, 2021, Congressman Johnson and I announced our intention 
to pursue this legislation, at the Maritime Subcommittee's hearing on 
the ``Impacts of Shipping Container Shortages, Delays, and Increased 
Demand on the North American Supply Chain.''
  On July 20, 2021, the Federal Maritime Commission established a new 
audit program to assess ocean carriers' compliance with federal 
regulations on detention and demurrage and increase the agency's 
monitoring of the marketplace for ocean cargo services. This action 
underscores the need for our bipartisan legislation.
  Madam Speaker, I urge all members to cosponsor the ``Ocean Shipping 
Reform Act of 2021.'' As a member of the House Committee on 
Transportation and Infrastructure, where I serve with Congressman 
Johnson, and the former ranking member of the Maritime Subcommittee 
from the 113th to the 115th Congresses, I plan to make this legislation 
a major priority. Specifically, I hope to include our bipartisan 
legislation in the maritime title of the next Coast Guard Authorization 
Act for fiscal years 2022 to 2023.

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