[Congressional Record Volume 167, Number 212 (Wednesday, December 8, 2021)]
[House]
[Pages H7472-H7479]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   OCEAN SHIPPING REFORM ACT OF 2021

  Mr. GARAMENDI. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4996) to amend title 46, United States Code, with respect to 
prohibited acts by ocean common carriers or marine terminal operators, 
and for other purposes, as amended.

[[Page H7473]]

  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4996

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Ocean Shipping Reform Act of 
     2021''.

     SEC. 2. PURPOSES.

       Section 40101 of title 46, United States Code, is amended 
     by striking paragraphs (2) through (4) and inserting the 
     following:
       ``(2) ensure an efficient and competitive transportation 
     system for the common carriage of goods by water in the 
     foreign commerce of the United States that is, as far as 
     possible, in harmony with fair and equitable international 
     shipping practices;
       ``(3) encourage the development of a competitive and 
     efficient liner fleet of vessels of the United States capable 
     of meeting national security and commerce needs of the United 
     States;
       ``(4) support the growth and development of United States 
     exports through a competitive and efficient system for the 
     common carriage of goods by water in the foreign commerce of 
     the United States and by placing a greater reliance on the 
     marketplace; and
       ``(5) promote reciprocal trade in the common carriage of 
     goods by water in the foreign commerce of the United 
     States.''.

     SEC. 3. SERVICE CONTRACTS.

       Section 40502 of title 46, United States Code, is amended--
       (1) in subsection (c)--
       (A) in paragraph (7) by striking ``; and'' and inserting a 
     semicolon;
       (B) in paragraph (8) by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(9) any other essential terms or minimum contract 
     requirements that the Federal Maritime Commission determines 
     necessary or appropriate.''; and
       (2) by adding at the end the following:
       ``(g) Service Contract Requirement.--With respect to 
     service contracts entered into under this section, a common 
     carrier shall establish, observe, and enforce just and 
     reasonable regulations and practices relating to essential 
     terms and minimum contract requirements the Commission 
     determines are necessary or appropriate under subsection 
     (c)(9).''.

     SEC. 4. SHIPPING EXCHANGE REGISTRY.

       (a) In General.--Chapter 405 of title 46, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 40504. Shipping exchange registry

       ``(a) In General.--No person may operate a shipping 
     exchange involving ocean transportation in the foreign 
     commerce of the United States unless the shipping exchange is 
     registered as a national shipping exchange under the terms 
     and conditions provided in this section and the regulations 
     issued pursuant to this section.
       ``(b) Registration.--A person shall register a shipping 
     exchange by filing with the Federal Maritime Commission an 
     application for registration in such form as the Commission, 
     by rule, may prescribe containing the rules of the exchange 
     and such other information and documents as the Commission, 
     by rule, may prescribe as necessary or appropriate in the 
     public interest.
       ``(c) Exemption.--The Commission may exempt, conditionally 
     or unconditionally, a shipping exchange from registration and 
     licensing under this section if the Commission finds that the 
     shipping exchange is subject to comparable, comprehensive 
     supervision and regulation by the appropriate governmental 
     authorities in the home country of the shipping exchange.
       ``(d) Regulations.--In issuing regulations pursuant to 
     subsection (a), the Commission shall set standards necessary 
     to carry out subtitle IV for registered national shipping 
     exchanges, including the minimum requirements for service 
     contracts established under section 40502, and issue licenses 
     for registered national shipping exchanges.
       ``(e) Definition.--In this subsection, the term `shipping 
     exchange' means a platform, digital, over-the-counter or 
     otherwise, which connects shippers with common carriers (both 
     vessel-operating and non-vessel-operating) for the purpose of 
     entering into underlying agreements or contracts for the 
     transport of cargo, by vessel or other modes of 
     transportation.''.
       (b) Applicability.--The registration requirement under 
     section 40504 of title 46, United States Code (as added by 
     this section), shall take effect on the date on which the 
     Federal Maritime Commission issues regulations required under 
     subsection (d) of such section.
       (c) Clerical Amendment.--The analysis for chapter 405 of 
     title 46, United States Code, is amended by adding at the end 
     the following:

``40504. Shipping exchange registry.''.

     SEC. 5. DATA COLLECTION.

       (a) In General.--Chapter 411 of title 46, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 41110. Data collection

       ``(a) In General.--Common carriers covered under this 
     chapter shall submit to the Federal Maritime Commission a 
     calendar quarterly report that describes the total import and 
     export tonnage and the total loaded and empty 20-foot 
     equivalent units per vessel (making port in the United 
     States, including any territory or possession of the United 
     States) operated by such common carrier.
       ``(b) Prohibition on Duplication.--Data required to be 
     reported under subsection (a) may not duplicate information--
       ``(1) submitted to the Corps of Engineers pursuant to 
     section 11 of the Act entitled `An Act authorizing the 
     construction, repair, and preservation of certain public 
     works on rivers and harbors, and for other purposes', 
     approved September 22, 1922 (33 U.S.C. 555), by an ocean 
     common carrier acting as a vessel operator; or
       ``(2) submitted pursuant to section 481 of the Tariff Act 
     of 1930 (19 U.S.C. 1481) to U.S. Customs and Border 
     Protection by merchandise importers.''.
       (b) Clerical Amendment.--The analysis for chapter 411 of 
     title 46, United States Code, is amended by adding at the end 
     the following:

``41110. Data collection.''.

     SEC. 6. NATIONAL SHIPPER ADVISORY COMMITTEE.

       (a) National Shipper Advisory Committee.--Section 
     42502(c)(3) of title 46, United States Code, is amended by 
     inserting ``, including customs brokers or freight 
     forwarders'' after ``ocean common carriers'' each place such 
     term occurs.
       (b) Analysis.--The analysis for chapter 425 of title 46, 
     United States Code, is amended by inserting before the item 
     relating to section 42501 the following:

``Sec.''.

     SEC. 7. ANNUAL REPORT AND PUBLIC DISCLOSURES.

       (a)  Report on Foreign Laws and Practices.--Section 
     46106(b) of title 46, United States Code, is amended--
       (1) in paragraph (5) by striking ``and'' at the end;
       (2) in paragraph (6)--
       (A) by striking ``under this part'' and inserting ``under 
     chapter 403''; and
       (B) by striking the period and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(7) an identification of any anticompetitive or 
     nonreciprocal trade practices by ocean common carriers;
       ``(8) an analysis of any trade imbalance resulting from the 
     business practices of ocean common carriers, including an 
     analysis of the data collected under section 41110; and
       ``(9) an identification of any otherwise concerning 
     practices by ocean common carriers, particularly such 
     carriers that are--
       ``(A) State-owned or State-controlled enterprises; or
       ``(B) owned or controlled by, is a subsidiary of, or is 
     otherwise related legally or financially (other than a 
     minority relationship or investment) to a corporation based 
     in a country--
       ``(i) identified as a nonmarket economy country (as defined 
     in section 771(18) of the Tariff Act of ( U.S.C. 1677(18))) 
     as of the date of enactment of this paragraph;
       ``(ii) identified by the United States Trade Representative 
     in the most recent report required by section 182 of the 
     Trade Act of 1974 (19 U.S.C. 2242) as a priority foreign 
     country under subsection (a)(2) of that section; or
       ``(iii) subject to monitoring by the Trade Representative 
     under section 306 of the Trade Act of 1974 (19 U.S.C. 
     2416).''.
       (b) Public Disclosure.--
       (1) In general.--Section 46106 of title 46, United States 
     Code, is amended by adding at the end the following:
       ``(d) Public Disclosures.--The Federal Maritime Commission 
     shall publish, and annually update, on the website of the 
     Commission--
       ``(1) all findings by the Commission of false 
     certifications by common carriers or marine terminal 
     operators under section 41104(a)(15) of this title; and
       ``(2) all penalties imposed or assessed against common 
     carriers or marine terminal operators, as applicable, under 
     sections 41107, 41108, and 41109, listed by each common 
     carrier or marine terminal operator.''.
       (2) Conforming and clerical amendments.--
       (A) Conforming amendment.--The heading for section 46106 of 
     title 46, United States Code, is amended by inserting ``and 
     public disclosure'' after ``report''.
       (B) Clerical amendment.--The analysis for chapter 461 of 
     title 46, United States Code, is amended by striking the item 
     related to section 46106 and inserting the following:

``46106. Annual report and public disclosure.''.

     SEC. 8. GENERAL PROHIBITIONS.

       Section 41102 of title 46, United States Code, is amended 
     by adding by adding at the end the following:
       ``(d) Prohibition on Retaliation.--A common carrier, marine 
     terminal operator, or ocean transportation intermediary, 
     either alone or in conjunction with any other person, 
     directly or indirectly, may not retaliate against a shipper, 
     a shipper's agent, or a motor carrier by refusing, or 
     threatening to refuse, cargo space accommodations when 
     available, or resort to other unfair or unjustly 
     discriminatory methods because the shipper has patronized 
     another carrier, has filed a complaint, or for any other 
     reason.
       ``(e) Certification.--A common carrier or marine terminal 
     operator shall not charge any other person demurrage or 
     detention charges under a tariff, marine terminal schedule, 
     service contract, or any other contractual obligation unless 
     accompanied by

[[Page H7474]]

     an accurate certification that such charges comply with all 
     rules and regulations concerning demurrage or detention 
     issued by the Commission. The certification requirement only 
     applies to the entity that establishes the charge, and a 
     common carrier or marine terminal operator that collects a 
     charge on behalf of another common carrier or marine terminal 
     operator is not responsible for providing the certification, 
     except that an invoice from a common carrier or marine 
     terminal operator collecting a charge on behalf of another 
     must include a certification from the party that established 
     the charge.''.

     SEC. 9. PROHIBITION ON UNREASONABLY DECLINING CARGO.

       (a) Unreasonably Declining Cargo.--Section 41104 of title 
     46, United States Code, is amended in subsection (a)--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) engage in practices that unreasonably reduce shipper 
     accessibility to equipment necessary for the loading or 
     unloading of cargo;'';
       (2) in paragraph (12) by striking ``; or'' and inserting a 
     semicolon;
       (3) in paragraph (13) by striking the period and inserting 
     a semicolon; and
       (4) by adding at the end the following:
       ``(14) fail to furnish or cause a contractor to fail to 
     furnish containers or other facilities and instrumentalities 
     needed to perform transportation services, including 
     allocation of vessel space accommodations, in consideration 
     of reasonably foreseeable import and export demands; or
       ``(15) unreasonably decline export cargo bookings if such 
     cargo can be loaded safely and timely, as determined by the 
     Commandant of the Coast Guard, and carried on a vessel 
     scheduled for the immediate destination of such cargo.''.
       (b) Rulemaking on Unreasonably Declining Cargo.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Commission shall initiate a 
     rulemaking proceeding to define the term ``unreasonably 
     decline'' for the purposes of subsection (a)(15) of section 
     41104 of title 46, United States Code (as added by subsection 
     (a)).
       (2) Contents.--The rulemaking under paragraph (1) shall 
     address the unreasonableness of ocean common carriers 
     prioritizing the shipment of empty containers while 
     excluding, limiting, or otherwise reducing the shipment of 
     full, loaded containers when such containers are readily 
     available to be shipped and the appurtenant vessel has the 
     weight and space capacity available to carry such containers 
     if loaded in a safe and timely manner.

     SEC. 10. DETENTION AND DEMURRAGE.

       (a) In General.--Section 41104 of title 46, United States 
     Code, is further amended by adding at the end the following:
       ``(d) Certification.--Failure of a common carrier to 
     include a certification under section 41102(e) alongside any 
     demurrage or detention charge shall eliminate any obligation 
     of the charged party to pay the applicable charge.
       ``(e) Demurrage and Detention Practices and Charges.--
     Notwithstanding any other provision of law and not later than 
     30 days of the date of enactment of this subsection, a common 
     carrier or marine terminal operator, shall--
       ``(1) act in a manner consistent with any rules or 
     regulations concerning demurrage or detention issued by the 
     Commission;
       ``(2) maintain all records supporting the assessment of any 
     demurrage or detention charges for a period of 5 years and 
     provide such records to the invoiced party or to the 
     Commission on request; and
       ``(3) bear the burden of establishing the reasonableness of 
     any demurrage or detention charges which are the subject of 
     any complaint proceeding challenging a common carrier or 
     marine terminal operator demurrage or detention charges as 
     unjust and unreasonable.
       ``(f) Penalties for False or Inaccurate Certified Demurrage 
     or Detention Charges.--In the event of a finding that the 
     certification under section 41102(e) was inaccurate, or false 
     after submission under section 41301, penalties under section 
     41107 shall be applied if the Commission determines, in a 
     separate enforcement proceeding, such certification was 
     inaccurate or false.''.
       (b) Rulemaking on Detention and Demurrage.--
       (1) In general.--Not later than 120 days after the date of 
     enactment of this Act, the Federal Maritime Commission shall 
     initiate a rulemaking proceeding to establish rules 
     prohibiting common carriers and marine terminal operators 
     from adopting and applying unjust and unreasonable demurrage 
     and detention rules and practices.
       (2) Contents.--The rulemaking under paragraph (1) shall 
     address the issues identified in the final rule published on 
     May 18, 2020, titled ``Interpretive Rule on Demurrage and 
     Detention Under the Shipping Act'' (85 Fed. Reg. 29638), 
     including the following:
       (A) Establishing clear and uniform definitions for 
     demurrage, detention, cargo availability for retrieval and 
     associated free time, and other terminology used in the rule. 
     The definition for cargo availability for retrieval shall 
     account for government inspections.
       (B) Establishing that demurrage and detention rules are not 
     independent revenue sources but incentivize efficiencies in 
     the ocean transportation network, including the retrieval of 
     cargo and return of equipment.
       (C) Prohibiting the consumption of free time or collection 
     of demurrage and detention charges when obstacles to the 
     cargo retrieval or return of equipment are within the scope 
     of responsibility of the carrier or their agent and beyond 
     the control of the invoiced or contracting party.
       (D) Prohibiting the commencement or continuation of free 
     time unless cargo is available for retrieval and timely 
     notice of cargo availability has been provided.
       (E) Prohibiting the consumption of free time or collection 
     of demurrage charges when marine terminal appointments are 
     not available during the free time period.
       (F) Prohibiting the consumption of free time or collection 
     of detention charges on containers when the marine terminal 
     required for return is not open or available.
       (G) Requiring common carriers to provide timely notice of--
       (i) cargo availability after vessel discharge;
       (ii) container return locations; and
       (iii) advance notice for container early return dates.
       (H) Establishing minimum billing requirements, including 
     timeliness and supporting information that shall be included 
     in or with invoices for demurrage and detention charges that 
     will allow the invoiced party to validate the charges.
       (I) Requiring common carriers and marine terminal operators 
     to establish reasonable dispute resolution policies and 
     practices.
       (J) Establishing the responsibilities of shippers, 
     receivers, and draymen with respect to cargo retrieval and 
     equipment return.
       (K) Clarifying rules for the invoicing of parties other 
     than the shipper for any demurrage, detention, or other 
     similar per container charges, including determining whether 
     such parties should be billed at all.
       (c) Rulemaking on Minimum Service Standards.--Not later 
     than 90 days after the date of enactment of this Act, the 
     Commission shall initiate a rulemaking proceeding to 
     incorporate subsections (d) through (f) of 41104 of title 46, 
     United States Code, which shall include the following:
       (1) The obligation to adopt reasonable rules and practices 
     related to or connected with the furnishing and allocation of 
     adequate and suitable equipment, vessel space accommodations, 
     containers, and other instrumentalities necessary for the 
     receiving, loading, carriage, unloading and delivery of 
     cargo.
       (2) The duty to perform the contract of carriage with 
     reasonable dispatch.
       (3) The requirement to carry United States export cargo if 
     such cargo can be loaded safely and timely, as determined by 
     the Commandant of the Coast Guard, and carried on a vessel 
     scheduled for such cargo's immediate destination.
       (4) The requirement of ocean common carriers to establish 
     contingency service plans to address and mitigate service 
     disruptions and inefficiencies during periods of port 
     congestion and other market disruptions.

     SEC. 11. ASSESSMENT OF PENALTIES.

       (a) Assessment of Penalties.--Section 41109 of title 46, 
     United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``or, in addition to or in lieu of a civil 
     penalty, order the refund of money'' after ``this part''; and
       (B) by inserting ``or refund of money'' after ``conditions, 
     a civil penalty'';
       (2) in subsection (c) by inserting ``or refund of money'' 
     after ``civil penalty'';
       (3) in subsection (e) by inserting ``or order a refund of 
     money'' after ``civil penalty''; and
       (4) in subsection (f) by inserting ``or who is ordered to 
     refund money'' after ``civil penalty is assessed''.
       (b) Additional Penalties.--Section 41108(a) of title 46, 
     United States Code, is amended by striking ``section 
     41104(1), (2), or (7)'' and inserting ``subsections (d) or 
     (e) of section 41102 or paragraph (1), (2), (7), (14), or 
     (15) of section 41104(a)''.
       (c) Conforming Amendment.--Section 41309 of title 46, 
     United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``or refund of money'' after ``payment of 
     reparation''; and
       (B) by inserting ``or to whom the refund of money was 
     ordered'' after ``award was made''; and
       (2) in subsection (b) by inserting ``or refund of money'' 
     after ``award of reparation''.
       (d) Award of Reparations.--Section 41305(c) of title 46, 
     United States Code, is amended--
       (1) by inserting ``or (c)'' after ``41102(b)''; and
       (2) by inserting ``, or if the Commission determines that a 
     violation of section 41102(e) was made willfully or 
     knowingly'' after ``of this title''.

     SEC. 12. INVESTIGATIONS.

       Section 41302 of title 46, United States Code, is amended 
     by striking ``or agreement'' and inserting ``, agreement, 
     fee, or charge''.

     SEC. 13. INJUNCTIVE RELIEF.

       Section 41307(b) to title 46, United States Code, is 
     amended--
       (1) in paragraph (3)--
       (A) in the heading by striking ``and third parties''; and
       (B) by striking the second sentence; and
       (2) by adding at the end the following:
       ``(5) Third party intervention.--The court may allow a 
     third party to intervene in a civil action brought under this 
     section.''.

[[Page H7475]]

  


     SEC. 14. TECHNICAL AMENDMENTS.

       (a) Federal Maritime Commission.--The analysis for chapter 
     461 of title 46, United States Code, is amended by striking 
     the first item relating to chapter 461.
       (b) Assessment of Penalties.--Section 41109(c) of title 46, 
     United States Code, is amended by striking ``section 41104(1) 
     or (2)'' and inserting ``paragraph (1) or (2) of section 
     41104(a)''.
       (c) National Shipper Advisory Committee.--Section 
     42502(c)(3) of title 46, United States Code is amended by 
     striking ``Representation'' and all that follows through 
     ``Members'' and inserting ``Representation.--Members''.

     SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

       Section 46108 of title 46, United States Code, is amended 
     by striking ``$29,086,888 for fiscal year 2020 and 
     $29,639,538 for fiscal year 2021'' and inserting 
     ``$32,603,492 for fiscal year 2022 and $35,863,842 for fiscal 
     year 2023''.

     SEC. 16. NAS STUDY ON SUPPLY CHAIN INDUSTRY.

       (a) In General.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     seek to enter into an agreement with the National Academy of 
     Sciences under which the National Academy shall conduct a 
     study on the United States supply chain that examines data 
     constraints that impede the flow of maritime cargo and add to 
     supply chain inefficiencies and that identifies data sharing 
     systems that can be employed to improve the functioning of 
     the United States supply chain.
       (b) Contents.--The study required under subsection (a) 
     shall include--
       (1) the identification of where bottlenecks or chokepoints 
     are most prominent within the United States supply chain;
       (2) the identification of what common shipping data is 
     created with each hand-off of a container through the United 
     States supply chain and how such data is stored and shared;
       (3) the identification of critical data elements used by 
     any entity covered by subsection (c), including the key 
     elements used for various supply chain business processes;
       (4) a review of the methodology used to store, access, and 
     disseminate shipping data across the United States supply 
     chain and evaluation of the inefficiencies in such 
     methodology;
       (5) an analysis of existing and potential impediments to 
     the free flow of information among entities covered by 
     subsection (c), including--
       (A) identification of barriers that prevent carriers, 
     terminals, and shippers from having access to commercial 
     data; and
       (B) any inconsistencies in--
       (i) terminology used across data elements connected to the 
     shipment, arrival, and unloading of a shipping container; and
       (ii) the classification systems used across the United 
     States supply chain, including inconsistencies in the names 
     of entities covered by subsection (c), geographical names, 
     and terminology;
       (6) the identification of information to be included in an 
     improved data sharing system designed to plan, execute, and 
     monitor the optimal loading and unloading of maritime cargo; 
     and
       (7) the identification of existing software and data 
     sharing platforms available to facilitate propagation of 
     information to all agents involved in the loading and 
     unloading of maritime cargo and evaluate the effectiveness of 
     such software and platforms if implemented.
       (c) Collection of Information.--In conducting the study 
     required under subsection (a), the National Academy of 
     Sciences shall collect information from--
       (1) vessel operating common carriers and non-vessel 
     operating common carriers;
       (2) marine terminal operators;
       (3) commercial motor vehicle operators;
       (4) railroad carriers;
       (5) chassis providers;
       (6) ocean transportation intermediaries;
       (7) custom brokers;
       (8) freight forwarders;
       (9) shippers and cargo owners;
       (10) the National Shipper Advisory Committee;
       (11) relevant government agencies, such as the Federal 
     Maritime Commission, the Surface Transportation Board, and 
     the United States Customs and Border Protection;
       (12) to the extent practicable, representatives of foreign 
     countries and maritime jurisdictions outside of the United 
     States; and
       (13) any other entity involved in the transportation of 
     ocean cargo and the unloading of cargo upon arrival at a 
     port.
       (d) Facilitation of Data Sharing.--In carrying out the 
     study under subsection (a), the National Academy of Sciences 
     may solicit information from any relevant agency relating to 
     the United States supply chain.
       (e) Report.--Not later than 18 months after entering into 
     an arrangement with the Secretary under subsection (a), the 
     National Academy of Sciences shall submit to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate, and make available on a 
     publicly accessible website, a report containing--
       (1) the study required under subsection (a);
       (2) the information collected under subsections (b) and 
     (c), excluding any personally identifiable information or 
     sensitive business information; and
       (3) any recommendations for--
       (A) common data standards to be used in the United States 
     supply chain; and
       (B) policies and protocols that would streamline 
     information sharing across the United States supply chain.

     SEC. 17. TEMPORARY EMERGENCY AUTHORITY.

       (a) Public Input on Information Sharing.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Federal Maritime Commission shall 
     issue a request for information seeking public comment 
     regarding--
       (A) whether congestion of the common carriage of goods has 
     created an emergency situation of a magnitude such that there 
     exists a substantial adverse effect on the competitiveness 
     and reliability of the international ocean transportation 
     supply system;
       (B) whether an emergency order described in subsection (b) 
     would alleviate such an emergency situation; and
       (C) the appropriate scope of such an emergency order, if 
     applicable.
       (2) Consultation.--During the public comment period under 
     paragraph (1), the Commission may consult, as the Commission 
     determines to be appropriate, with--
       (A) other Federal departments and agencies; and
       (B) persons with expertise relating to maritime and freight 
     operations.
       (b) Authority to Issue Emergency Order Requiring 
     Information Sharing.--On making a unanimous determination 
     described in subsection (c), the Commission may issue an 
     emergency order requiring any common carrier or marine 
     terminal operator to share directly with relevant shippers, 
     rail carriers, or motor carriers information relating to 
     cargo throughput and availability, in order to ensure the 
     efficient transportation, loading, and unloading of cargo to 
     or from--
       (1) any inland destination or point of origin;
       (2) any vessel; or
       (3) any point on a wharf or terminal.
       (c) Description of Determination.--
       (1) In general.--A determination referred to in subsection 
     (b) is a unanimous determination by the Commission that 
     congestion of common carriage of goods has created an 
     emergency situation of a magnitude such that there exists a 
     substantial adverse effect on the competitiveness and 
     reliability of the international ocean transportation supply 
     system.
       (2) Factors for consideration.--In issuing an emergency 
     order under subsection (b), the Commission shall ensure that 
     such order includes parameters relating to temporal and 
     geographic scope, taking into consideration the likely 
     burdens on ocean carriers and marine terminal operators and 
     the likely benefits on congestion relating to the purposes 
     described in section 40101 of title 46, United States Code.
       (d) Petitions for Exception.--
       (1) In general.--A common carrier or marine terminal 
     operator subject to an emergency order issued under this 
     section may submit to the Commission a petition for exception 
     from 1 or more requirements of the emergency order, based on 
     a showing of undue hardship or other condition rendering 
     compliance with such a requirement impractical.
       (2) Determination.--Not later than 21 days after the date 
     on which a petition for exception under paragraph (1) is 
     submitted, the Commission shall determine whether to approve 
     or deny such petition by majority vote.
       (3) Inapplicability pending review.--The requirements of an 
     emergency order that is the subject of a petition for 
     exception under this subsection shall not apply to a 
     petitioner during the period for which the petition is 
     pending.
       (e) Limitations.--
       (1) Term.--An emergency order issued under this section 
     shall remain in effect for a period of not longer than 60 
     days.
       (2) Renewal.--The Commission may renew an emergency order 
     issued under this section for an additional term by a 
     unanimous determination by the Commission.
       (f) Sunset.--The authority provided by this section shall 
     terminate on the date that is 2 years after the date of 
     enactment of this Act.
       (g) Definitions.--In this section:
       (1) Common carrier.--The term ``common carrier'' has the 
     meaning given such term in section 40102 of title 46, United 
     States Code.
       (2) Motor carrier.--The term ``motor carrier'' has the 
     meaning given such term in section 13102 of title 49, United 
     States Code.
       (3) Rail carrier.--The term ``rail carrier'' has the 
     meaning given such term in section 10102 of title 49, United 
     States Code.
       (4) Shipper.--The term ``shipper'' has the meaning given 
     such term in section 40102 of title 46, United States Code.

     SEC. 18. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Garamendi) and the gentleman from South Dakota (Mr. 
Johnson) each will control 20 minutes.
  The Chair recognizes the gentleman from California.

[[Page H7476]]

  



                             General Leave

  Mr. GARAMENDI. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on H.R. 4996, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. GARAMENDI. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I want to thank the chairman of the committee, Mr. 
DeFazio. Congressman Dusty Johnson and I announced our intention to 
pursue this bipartisan legislation, the Ocean Shipping Reform Act of 
2021, just this past June. In late August, we introduced H.R. 4996 and 
have since earned the support of more than 90 bipartisan cosponsors. On 
November 17, the Biden administration put out a public statement 
endorsing our bipartisan bill.
  Now, less than 4 months since we first began to develop this 
legislation, I am thrilled--in fact, I am awed, and I am amazed but 
very happy--that the House is taking up our comprehensive reform.
  The amendment in the nature of a substitute reflects relatively minor 
changes and a reorganization of H.R. 4996 as introduced. In other 
words, it is not important to the substance of the bill. I am thrilled 
with the compromise legislative text reached by the committee's 
majority and minority staff and the members.
  This is what the voters sent us here to do, to identify problems, 
develop practical solutions, and then work together across the aisle to 
reach a compromise to achieve a result. That is exactly what the House, 
both Democrats and Republicans, are now doing in taking up this 
bipartisan Ocean Shipping Reform Act of 2021 on this date.
  I want to thank the gentleman from Oregon (Mr. DeFazio); the 
gentleman from California (Mr. Carbajal); the ranking member, the 
gentleman from Missouri (Mr. Graves); and the gentleman from Ohio (Mr. 
Gibbs) for working with me and my Republican counterpart, the gentleman 
from South Dakota (Mr. Johnson) to get this result.
  I will very, very briefly go through what the bill attempts to do. We 
are all aware that the pandemic highlighted the longstanding issues of 
the ocean shipping industry and also the staggering vulnerabilities in 
the integral supply chain that drives global commerce.
  The Ocean Shipping Reform Act would be the first overhaul of Federal 
regulations for the international ocean shipping industry since 1998. 
For decades, the United States has run a significant trade imbalance, 
due in large part to export-driven, nonmarket economies like mainland 
China.
  In 2001, the People's Republic of China was granted permanent normal 
trade relations with the United States, the so-called most favored 
nation status, following that country's admission to the World Trade 
Organization. There has since been considerable consolidation among the 
foreign-based ocean carriers, coinciding with the continued decline of 
the U.S.-flagged international fleet in favor of foreign flags of 
convenience.
  A handful of foreign-flagged ocean carriers now dominate the global 
ocean shipping industry, three of which are from China, another from 
Korea, and a fifth from Europe, several of which are effectively 
controlled by these foreign governments. Foreign business access to the 
American market and our consumers is a privilege; it is not a right.
  In 2001, the United States' trade imbalance with the People's 
Republic of China was approximately $83 billion in nominal dollars. In 
2020, our trade imbalance with mainland China was $310 billion, having 
increased year over year most every year.
  This legislation would ensure reciprocal trade to help reduce the 
United States' longstanding trade imbalance with export-driven 
countries like China.
  California agricultural exporters and other businesses are willing to 
pay to ensure that their products reach markets in Asia, but they can't 
pay a fortune to do it. One example, Jelly Belly, the candy company in 
my district, last spring would pay $3,000 for a container full of candy 
to ship to the Western Pacific. Today it is $31,900. That is the 
problem.
  The Ocean Shipping Reform Act does make critical reforms requested by 
major U.S. importers, like the National Retail Federation's member 
companies. There are many, many examples. I will let those go for now.
  Mr. Speaker, I reserve the balance of my time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield myself such time as 
I may consume.
  It is impossible for any American to ignore the supply chain crunch, 
a supply chain crunch that seemingly impacts most every part of the 
American economy.
  In that kind of an environment, I want to echo so much of what my 
friend from California said. I am indeed thrilled that the House is 
taking up this bill today. I am grateful for his leadership. I am 
grateful to be the lead Republican on this, and I am grateful that this 
bill has been endorsed by 360 national, State, and local groups. This 
is much-needed legislation.
  How did we get here? With a massive influx of Federal dollars into 
the economy and with COVID-19 changing how Americans purchase goods, 
for more than a year, United States ports have faced unprecedented 
volumes of cargo. Some estimates say that American demand for consumer 
electronics has gone up 40 percent compared to prepandemic. This 
pressure on our ports has trickled down to every other part of the 
supply chain, leading to what Americans have seen: delays and product 
shortages.
  Now, those constraints and the resulting extremely high shipping 
rates have made it more difficult not just for our country to receive 
imports but also for us to ship our manufactured goods and agricultural 
goods out to the rest of the world.

                              {time}  1100

  We have seen unprecedented rejection of American container loads by 
the large ocean carriers. They are in contravention of their 
contractual obligations, just refusing to haul that cargo, preferring 
instead to take the empty containers and get them back to Asia for a 
quick turn. That has caused serious problems, not just conceptual 
dollars, real dollars, real cents. The American dairy industry has seen 
$1 billion worth of losses just in the first 6 months of this year.
  Now, Mr. Speaker, I am a big fan of the free market, but the free 
market is many buyers and many sellers, and that is not in place today. 
Mr. Garamendi so rightfully talked about the consolidation we have seen 
in this industry. And indeed, 30 years ago the largest foreign-flagged 
ocean carriers controlled about 15 percent of this traffic. Today, they 
control about 75 percent. That is not quite the free market that we 
used to have.
  And so, H.R. 4996, the Ocean Shipping Reform Act of 2021 helps to 
address these supply chain bottlenecks. It helps to promote American 
competitiveness. And it holds accountable these foreign-flagged ocean 
carriers, which I would note are increasingly dominated by Chinese 
state-backed firms.
  Now, let me be honest and let me be clear, this bill is no silver 
bullet, but shame on us if we fail to act. This supply chain crunch has 
laid bare the deficiencies in the marketplace, and we have an 
opportunity today to address many of those deficiencies.
  Probably the most common question, Mr. Speaker, my colleagues ask of 
me about this bill is why a Congressman from the plains of South Dakota 
would be so interested in maritime law. I would just remind them of the 
world's great hunger for American beef, American beans, American corn, 
and American dairy. Indeed, 60 percent of South Dakota's soybeans are 
exported abroad.
  In that environment this is not just a coastal issue, but it is an 
issue that impacts lives from the farm gate to every Main Street.
  And indeed, I have been hearing from South Dakota businesses like 
Strider Sports International in Rapid City to Valley Queen, a cheese 
processor in Milbank, and they are telling me about how these issues 
are having a real impact on dollars and cents.
  Valley Queen has two million pounds of lactose. This is a product 
that has already been sold to Asian markets, and it is just sitting 
there in their warehouses waiting for an opening at

[[Page H7477]]

the ports. A recent container load of this lactose waited on the ports, 
Mr. Speaker, for 75 days. The lactose began to turn, and, of course, 
that meant a big deduction on the price that Valley Queen could get for 
that lactose. Just a destruction of American value.
  This bill is about American competitiveness. Broadly speaking, the 
legislation provides the Federal Maritime Commission--that is the cop 
on the beat--the tools they need to make sure that this system runs 
more efficiently and runs more fairly and makes sure that the interests 
of the foreign-flagged ocean carriers are better aligned with the 
interests of American shippers.
  So the bill does a number of things, but I will quickly hit on just 
five.
  First off, under this bill the FMC can set minimum standards for 
ocean shipping that makes sure that U.S. shippers are protected from 
the actions of others which leave export cargoes stranded at U.S. 
ports.
  Number two, it protects U.S. shippers from retaliation if they file a 
complaint with the FMC.
  Number three, this bill prohibits the foreign-flagged ocean carriers 
from unreasonably denying American export cargo on their vessels.
  Number four, it requires foreign ocean carriers to certify the 
accuracy of the detention and demurrage fees. These are fines they can 
hit shippers with; they have to certify that those fines are accurate.
  And number five, it would authorize the National Academy of Sciences 
to study how best to improve transparency in the supply chain.
  Now, I just don't know, Mr. Speaker, how any of my colleagues can 
allege any of these things are not reasonable. These are very basic 
guardrails. These are very basic rules of the road that people who are 
using American ports should be obligated to follow.
  And so the choice for my colleagues is simple, a vote for H.R. 4996 
is a vote to put U.S. shippers, manufacturing, farmers, truckers, 
retailers, and consumers first. That is where they should be.
  Mr. Speaker, I urge support of this legislation, and I reserve the 
balance of my time.
  Mr. GARAMENDI. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Costa) who alerted me to this problem early last 
summer.
  Mr. COSTA. Mr. Speaker, I thank Congressman   John Garamendi, a 
friend and a person who I have worked with on a host of issues over the 
years, and Congressman Dusty Johnson. This is a good example of what 
bipartisan cooperation is all about. Mr. Speaker, I commend Congressman 
Garamendi's leadership in this effort--a member of the subcommittee and 
the full committee--with Congressman DeFazio in working out the 
differences, which was important.
  Having said that, the Ocean Shipping Reform Act, of which I am a 
cosponsor, is the first major update in Federal regulations for global 
ocean shipping since 1998. Think about how much the world has changed 
in 23 years in terms of trade.
  This legislation, as I said, is a result of bipartisan efforts.
  This legislation supports U.S. exporters who have been 
disproportionately impacted by unfair trade practices in our ports and 
harbors.
  No ship arriving with imports should leave an American port empty 
when products are ready to go, and that is what is happening, sadly.
  Enacting strong regulatory framework will help end these disruptions 
to deal with the issue of demurrage and backup on the supply chain that 
has created this bottleneck.
  We can and must do more to ensure that all exporters in this country 
have a fair and level playing field. California agricultural producers, 
as well as other U.S. exporters should be able to ship their products 
without unnecessary delays. It is a national security issue.

  The increased shipping container costs and delays exporters are 
facing only continue to impact our recovery from the COVID-19 pandemic.
  Let me give you a local example. California is our Nation's largest 
agricultural producer and exporter with more than 400 commodities, over 
a third of the Nation's vegetables and two-thirds of the Nation's 
fruits and nuts. Forty-four percent of California's agriculture 
production is exported.
  The San Pedro Bay Complex, which we otherwise call the Los Angeles 
and Long Beach Ports in southern California is the ninth busiest in the 
world and provides importation of 40 percent of the container industry 
in America. Think about that. This is where the bottleneck is most 
acute.
  It is necessary that we utilize all resources to reduce port 
congestion and empower the Federal Maritime Commission to do what they 
can and should do. This is about short-term and long-term solutions to 
relieve the bottleneck in this supply chain. This is about an effort 
to, in fact, provide relief that benefits American workers, American 
consumers. It is about the economic recovery; it is about trade; and it 
is about jobs.
  I urge my colleagues to support this important bipartisan piece of 
legislation. It is a part of the short-term and long-term solution. I 
recommend a ``yes'' vote on this legislation.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I would just note Mr. 
Costa's unyielding advocacy of this project, this issue and thank him 
for that support.
  Mr. Speaker, I yield 1\1/2\ minutes to the gentlewoman from 
California (Mrs. Kim).
  Mrs. KIM of California. Mr. Speaker, I thank Representative Johnson 
for yielding, and I thank him for his passion to address the supply 
shipping crisis that we are facing in our Nation today.
  I, too, rise today in strong support of the Ocean Shipping Reform Act 
of 2021. This is a bipartisan bill I was proud to cosponsor that would 
help address the container ship bottlenecks at the San Pedro Complex, 
which includes the ports of Los Angeles and Long Beach in southern 
California near my district, California's 39th Congressional District.
  While this bill is not a silver bullet to resolving all of our supply 
chain issues like major labor shortages and warehouses overcapacity, it 
does take meaningful steps to address uncompetitive practices by some 
ocean carriers.
  H.R. 4996 provides the Federal Maritime Commission with more tools to 
address practices that discriminate against U.S. exporters, importers, 
truckers, and other players in our supply chain.
  Bottlenecks at the San Pedro Complex continue to cause supply 
disruptions that are raising prices for workers, families, and small 
businesses and hurts the ability of our manufacturers and farmers to 
export goods overseas.
  I urge my colleagues to support H.R. 4996.
  Mr. GARAMENDI. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Washington State (Ms. Schrier).
  Ms. SCHRIER. Mr. Speaker, I thank the gentleman for yielding.
  I am so proud to represent Washington's Eighth Congressional 
District, which stretches from the suburbs of Seattle in the west 
across the Cascade Mountains into the rich farmland of central 
Washington. It is home to some of the Nation's largest agricultural 
producers and exporters whose hay, apples, pears, and cherries are in 
high demand all around the world.
  For more than a year, these exporters have shared with me how 
pandemic conditions and the behavior of foreign-owned shipping carriers 
are hurting their industries, threatening export markets and 
relationships that they have developed over decades.
  They often don't know when a ship will be in port, making it 
difficult to get their products to the carrier in time. They are forced 
to pay additional fees when their products--often perishable ones--have 
to wait at the port to be loaded on to a ship.
  And shipping carriers are opting to return as many empty containers 
to China as possible for fast turnaround and their own bottom line, 
rather than accepting U.S. exports. It is better for them financially 
to return to China with empty containers to bring back TVs, iPads, and 
just about everything else we buy from Amazon versus bringing back 
Eighth District hay or agricultural goods. This rejection threatens to 
upend our Nation's agricultural industry and relationships built over 
decades for years to come.
  I was proud to cosponsor the Ocean Shipping Reform Act of 2021 
together with Congressmen Garamendi and Johnson. I thank them for their 
support. This is a great bipartisan bill

[[Page H7478]]

that will make a real difference for exporters in my district, and I 
encourage my colleagues to vote ``yes.''

  Mr. JOHNSON of South Dakota. Mr. Speaker, I yield 1\1/2\ minutes to 
the gentleman from Nebraska (Mr. Smith).
  Mr. SMITH of Nebraska. Mr. Speaker, I rise in support of H.R. 4996, 
the Ocean Shipping Reform Act.
  I thank Mr. Johnson, Mr. Garamendi, and others for joining me in 
raising the alarm back in March in a letter to the Federal Maritime 
Commission about the empty container ships leaving American ports.
  This bill follows on that effort, offering necessary reforms to 
Federal regulations overseeing the ocean shipping industry in order to 
address problems like this that have been discussed.
  Agricultural exports are critical to not only feeding the world but 
to the livelihood of the producers I represent in Nebraska.
  We cannot do that if container ships leave American ports completely 
empty.
  This bill prohibits foreign ocean carriers from refusing U.S. exports 
unreasonably and gives the FMC more tools to ensure these carriers are 
held accountable and held to a high standard.
  Trade only works if exports reach their final destination in a 
reliable and affordable way.
  This bill is great step toward facilitating exactly that.
  It is a reasonable bill, and I urge a ``yes'' vote.
  Mr. GARAMENDI. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Carbajal).
  Mr. CARBAJAL. Mr. Speaker, I rise to express my support for the 
bipartisan Ocean Shipping Reform Act, a bipartisan agreement that 
Representatives Garamendi and Johnson have reached. I thank my 
colleagues for working with me and Congressman DeFazio on this 
legislation.
  As chair of the Subcommittee on Coast Guard and Maritime 
Transportation, I have held hearings on the ongoing supply chain 
disruptions and met with countless stakeholders and constituents who 
are feeling the impacts of the disruptions, including those who 
suffered wrongdoing by ocean carriers. This legislation is a big step 
toward addressing this.
  The increase in funding for the Federal Maritime Commission, FMC, in 
this 2-year authorization is indicative of this body's strong support 
for finding an effective solution to the pandemic supply chain crisis.

                              {time}  1115

  Now is the time to ensure that the Commission has the ability to 
enforce fairness in ocean carrier practices.
  Mr. Speaker, I am pleased that the bill contains a number of 
provisions aimed at addressing wrongfully issued detention and 
demurrage fees and complements President Biden's actions to address 
this issue. The bill also includes several reporting requirements on 
issues of maritime cargo flow at U.S. ports and anticompetitive 
business practices.
  By addressing these challenges, Congress seeks to counter trade 
imbalances with foreign exporting countries, making reciprocal trade 
one of the FMC's missions.
  I am proud of the committee's work on this important legislation, and 
I look forward to ensuring that this legislation, H.R. 4996, is signed 
into law.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I thank Mr. Carbajal for 
his leadership.
  Mr. Speaker, I yield 3 minutes to the gentleman from Iowa (Mr. 
Gibbs), the ranking member of the Subcommittee on Coast Guard and 
Maritime Transportation.
  Mr. GIBBS. Mr. Speaker, I thank Representatives Dusty Johnson and   
John Garamendi for their work on this bill.
  While I support this bill, I do have concerns about the process under 
which it has been brought to the floor, and whether, by itself, it will 
have much impact on the supply difficulties we are currently facing.
  Neither a hearing nor a markup was held on this bill. Given its 
complexity, I believe a hearing and a markup would have given Members a 
better opportunity to fully understand and perhaps improve the bill.
  The bill gives the Federal Maritime Commission, the FMC, enhanced 
authorities to prevent ocean carriers, who operate ships in the 
container trade, from engaging in anticompetitive activities in regards 
to shippers, and give shippers enhanced input into the FMC complaint 
process.
  I have concerns about giving bureaucrats at the Federal Maritime 
Commission more authority to insert themselves into privately held 
contractual agreements. However, it appears to a great extent, the 
delays, port congestion, and higher shipping prices are due primarily 
to short-term contracts, unwillingness or inability to share data by 
all parties to operate efficiently, equipment shortages, lack of 
warehouse space, chassis truck and train capacity, and labor issues, 
rather than anticompetitive practices by ocean shippers.
  If ocean carriers were the sole problem, we would not see container 
ships waiting for weeks to unload. Ag exports are at record highs for 
some commodities, and it is unfortunate that some of the ag shipments 
have not been able to make it on ships in a timely and efficient 
manner. However, it is not clear to me that the decision that led to 
these products from being stranded are due to practices that are 
anticompetitive under U.S. law.
  This bill would prohibit carriers from unreasonably declining cargo 
that can be safely and timely loaded and is going to a port on the 
ship's itinerary. It will be curious to see how often this provision is 
used.
  As I said, I am willing to support this bill to assure that detention 
and demurrage is used as an incentive to move cargo efficiently, not--
as some have claimed--as an indiscriminate corporate profit center, and 
to provide shippers additional protections.
  However, as has been said by the sponsor, this bill isn't perfect and 
there is still more work to be done. I expect it to address the supply 
chain more broadly and not assume that alleged anticompetitive behavior 
by ocean carriers is the sole cause of the current supply chain 
disruption.
  The legislation needed must, number one, be comprehensive and look at 
long-term port truck chassis, train, intermodal connection, and 
warehouse capacity needs.
  Two, assure the availability of transparent, enforceable contracts to 
assure goods can be shipped at the agreed time and cost;
  And three, improve data sharing among the parties in the supply to 
assure that everyone knows where and when they must have equipment to 
move containers efficiently.
  Mr. Speaker, I urge support of this legislation and ask that we 
continue to work to address the whole supply chain crisis.
  Mr. GARAMENDI. Mr. Speaker, may I inquire how much time is remaining?
  The SPEAKER pro tempore. The gentleman from California has 10 minutes 
remaining. The gentleman from South Dakota has 7\1/2\ minutes 
remaining.
  Mr. GARAMENDI. Mr. Speaker, I reserve the balance of my time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I want to take an 
opportunity to thank Chair DeFazio and Ranking Member Graves for the 
various hearings they have had in talking with Chairman Maffei, 
Commissioner Dye, and others on the FMC about these issues. I thank Mr. 
Garamendi and others for bringing up this legislation in a number of 
hearings we have had on the supply chain crunch. I think it has helped 
to fill out the record on these incredibly important issues and the 
role that this legislation can play in advancing this cause.
  Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Georgia 
(Mr. Allen).
  Mr. ALLEN. Mr. Speaker, I thank Congressman Johnson for yielding and 
for his support on this important legislation today.
  Mr. Speaker, I rise in strong support of the Ocean Shipping Reform 
Act of 2021. Throughout the pandemic, I heard from Georgia farmers who 
were unable to access affordable shipping. Agriculture is the largest 
industry in my district and the largest industry in the State of 
Georgia. Our ports are a critical part of our Nation's infrastructure 
and it should be considered a great honor and privilege for any 
international company or entity to have access to them.
  Foreign players gain access to the largest consumer market on earth 
through our ports, with a GDP of $20 trillion and 325 million people. 
Yet,

[[Page H7479]]

American farmers face high fees and barriers to getting their 
commodities into shipping containers.

  After defying the odds of weather and many other issues that our 
farmers face, it is unconscionable that our perishable exports are left 
sitting in warehouses to rot.
  This bill provides the first significant Federal update of the 
Federal Maritime Commission's powers since 1998 and will significantly 
improve our farmers' access to affordable shipping.
  Mr. Speaker, I am a proud cosponsor of the Ocean Shipping Reform Act 
of 2021, and I urge my colleagues to support this important bill.
  Mr. GARAMENDI. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I am prepared to close, and 
I yield myself the balance of my time.
  Mr. Speaker, there are a few things that I know for sure. The first 
is that when you use American ports you should be subjected to some 
very basic rules of the road. Things like not being allowed to 
unreasonably discriminate against American cargo, that is one thing I 
know for sure.
  Another thing I know for sure is that although this bill is not a 
silver bullet, and nobody is alleging that it is only the ocean 
carriers that are responsible for this supply chain crunch, this will 
help. This better aligns the interests of the ocean carriers with the 
interests of American manufacturers and American farmers and ranchers. 
That will go a long way toward helping to resolve the supply chain 
crunch.
  Mr. Speaker, finally, one more thing that I know for sure, and that 
is when you have 360 national, State, and local groups, when you have 
90 Members of Congress, when you have a bipartisan coalition that has 
come together to embrace this concept in what is all too often a 
partisan environment, then I think you know you have a good policy 
solution.
  With that in mind, I once again thank the gentleman from California 
for his leadership, and I urge all of my colleagues to support the 
bill, and ask the Senate for their expeditious consideration of it.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GARAMENDI. Mr. Speaker, I yield myself the balance of my time.
  Occasionally, we toss words back and forth across the aisle here, and 
I would like to toss a word back across the aisle to Mr. Johnson.
  He said compliments my way. The actual compliments go his way. It is 
not often that we spend time, and we spend a good deal of time working 
together on these bills, and we ought to do more across the aisle.
  Mr. Speaker, it has been a pleasure working with Mr. Johnson and his 
team, and I thank him. I thank him for stepping forward, as have other 
Members on your side and my side of the aisle, stepping forward and 
saying, Hey, there is a problem. It is a problem out there. There are 
problems of retention and demurrage charges that are, Well, how could 
that be.
  An importer of plastic Christmas trees and wreaths and other 
ornaments from China could not get his containers off of the port. Yet, 
he was being charged $4 million, which pretty much puts him out of 
business. He is not the biggest company in the world, but he would like 
to be. And given the unfair situation that he was facing, he may never 
become a major company in the United States. So we need to set up rules 
of the road, words that Mr. Johnson laid out so clearly. Rules of the 
road; the guardrails. Within these rules, operations, free enterprise, 
market competition can take place, but right now, it is a wide-open 
system in which there is a gunfight on the street, and that is leading 
to companies not being able to get their goods on the ships to export.
  And comments that you have already heard from Mr. Costa, California 
is a big agricultural export, and so is South Dakota, and so is the 
Midwest, and so is the Southeast. All of America wants to export, but 
when you cannot get a container, you are not going to export and you 
are likely to be out of business, and you are going to incur a very, 
very significant charge.
  So we set up a system in which these charges and the availability are 
regulated in a mechanism that will be conducted by the Federal Maritime 
Commission. We can go on and on here, and we probably ought to, but I 
won't take my full 10 minutes. I will say, as Mr. Johnson said earlier, 
this isn't the silver bullet, this isn't going to solve all the 
problems, but when you consider what has already occurred in 
legislation here--specifically, the Infrastructure Investment and Jobs 
Act, that piece of legislation will provide $2.5 billion to the ports 
so that they can upgrade their facilities, so that they can, the next 
time around, be able to avoid the kind of congestion that is plaguing 
all of the commerce in this Nation.
  We also look to the Build Back Better legislation, which has another 
$2.5 billion in it to deal with additional infrastructure that is 
necessary to connect the ports to the rest of the transportation system 
in this Nation.
  Mr. Speaker, we need this bill. We, the American farmer, needs this 
bill. We, the American export industry--whether it is heavy, light--and 
the import community, all need this bill. So I urge my colleagues to 
support the legislation, and in that process, we will, I believe, have 
a much better market system here in the United States, one that has 
guardrails, one that provides an equitable and balanced system for the 
importers and the exporters.
  Mr. Speaker, I want to take an opportunity here to thank some very 
important people. The staff that put this together, on our side of the 
aisle, Matt Dwyer, the lead person on the Subcommittee on Coast Guard 
and Maritime Transportation; CheriAnn Thompson on that committee; 
Cheryl Dickson; and Iain Hart from my own staff.
  Mr. Speaker, I yield 1 minute to the gentleman from South Dakota (Mr. 
Johnson) if he would like to thank his staff.
  Mr. JOHNSON of South Dakota. Mr. Speaker, I would just echo the 
thoughts of Mr. Garamendi that there have been so many who have worked 
together, and really a broad national coalition, and he is exactly 
right to call attention to the people who do the work behind the 
scenes.
  Mr. GARAMENDI. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Garamendi) that the House suspend the 
rules and pass the bill, H.R. 4996, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. GARAMENDI. Mr. Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________