[Congressional Record Volume 168, Number 62 (Thursday, April 7, 2022)]
[Senate]
[Page S2095]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself and Mr. Whitehouse):
  S. 4040. A bill to amend subtitle IV of title 46, United States Code, 
with respect to ship agents, and for other purposes; to the Committee 
on Commerce, Science, and Transportation.
  Mr. REED. Mr. President, today I am introducing the Ship Agent 
Licensure Act along with my colleague Senator Whitehouse. This 
legislation seeks to improve supply chain efficiencies and port safety 
and security by creating a Federal standard and licensure for 
independent ship agent companies, just as we already do for 
transportation intermediaries like Freight Forwarders and Non-Vessel 
Operating Common Carriers, NVOCCs.
  Ship agents are one of the most important yet least understood 
stakeholders in the international marine trade supply chain, but in the 
United States, there is no Federal licensing for these essential 
players.
  A ship agent can best be understood as the general contractor of the 
port call, tasked by ship owners and charterers with managing thousands 
of vendors to ensure a safe, secure, and cost efficient port call. This 
includes coordinating critical Federal Government clearances and 
inspections for Agencies that include the Coast Guard, Customs and 
Border Protection, the EPA, USDA, and others. Government officials rely 
on ship agents to fulfill their critical role of facilitating commerce, 
and protecting life, property, and the environment. More than any other 
stakeholder, the ship agent facilitates efficiencies at the Nation's 
ports of entry, the frontline of the supply chain.
  While the United Nations Conference on Trade and Development has 
established minimum international standards for ship agent competency, 
quality, and fiduciary responsibility, there is no requirement for 
independent ship agent companies to abide by these, or any set of 
standards in the United States. Many domestic independent ship agent 
companies voluntarily certify through third-party accreditation 
associations in accordance with these international standards, but not 
all do. When ship agents are not properly trained and do not carry the 
appropriate bond and insurance, it creates delays and inefficiencies 
during vessel calls, jeopardizes port entry and clearance, and 
increases risk for Federal Agencies.
  That is why it is critical to require Federal licensing for 
independent ship agent companies. Indeed, such a licensing requirement 
represents a unique opportunity for the United States to adopt its own 
uniform nationwide standards, consistent with the existing 
international standards, to ensure that ship agents have the knowledge, 
experience, and skills needed to manage these high stakes vessel calls 
and help our government agencies fulfill their responsibilities.
  I urge our colleagues to join us in supporting this commonsense 
legislation.
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