[Congressional Record Volume 168, Number 100 (Monday, June 13, 2022)]
[House]
[Pages H5460-H5467]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
OCEAN SHIPPING REFORM ACT OF 2022
Mr. DeFAZIO. Mr. Speaker, I move to suspend the rules and pass the
bill (S. 3580) to amend title 46, United States Code, with respect to
prohibited acts by ocean common carriers or marine terminal operators,
and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 3580
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
2022''.
SEC. 2. PURPOSES.
Section 40101 of title 46, United States Code, is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) ensure an efficient, competitive, and economical
transportation system in the ocean commerce of the United
States;'';
(2) in paragraph (3), by inserting ``and supporting
commerce'' after ``needs''; and
(3) by striking paragraph (4) and inserting the following:
``(4) promote the growth and development of United States
exports through a competitive and efficient system for the
carriage of goods by water in the foreign commerce of the
United States, and by placing a greater reliance on the
marketplace.''.
SEC. 3. SERVICE CONTRACTS.
Section 40502(c) of title 46, United States Code, is
amended--
(1) in paragraph (7), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (8), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(9) any other essential terms that the Federal Maritime
Commission determines necessary or appropriate through a
rulemaking process.''.
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 to
complete a shipping exchange's registration.
``(c) Exemption.--The Commission may exempt, conditionally
or unconditionally, a shipping exchange from registration
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
a foreign country where the shipping exchange is
headquartered.
``(d) Regulations.--Not later than 3 years after the date
of enactment of the Ocean Shipping Reform Act of 2022, the
Commission shall issue regulations pursuant to subsection
(a), which shall set standards necessary to carry out
subtitle IV of this title for registered national shipping
exchanges. For consideration of a service contract entered
into by a shipping exchange, the Commission shall be limited
to the minimum essential terms for service contracts
established under section 40502 of this title.
``(e) Definition of Shipping Exchange.--In this section,
the term `shipping exchange' means a platform (digital, over-
the-counter, or otherwise) that connects shippers with common
carriers 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
subsection (a)), shall take effect on the date on which the
Federal Maritime Commission states the rule is effective in
the regulations issued under 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. PROHIBITION ON RETALIATION.
Section 41102 of title 46, United States Code, is amended
by adding at the end the following:
``(d) Retaliation and Other Discriminatory Actions.--A
common carrier, marine terminal operator, or ocean
transportation intermediary, acting alone or in conjunction
with any other person, directly or indirectly, may not--
``(1) retaliate against a shipper, an agent of a shipper,
an ocean transportation intermediary, or a motor carrier by
refusing, or threatening to refuse, an otherwise-available
cargo space accommodation; or
``(2) resort to any other unfair or unjustly discriminatory
action for--
``(A) the reason that a shipper, an agent of a shipper, an
ocean transportation intermediary, or motor carrier has--
``(i) patronized another carrier; or
``(ii) filed a complaint against the common carrier, marine
terminal operator, or ocean transportation intermediary; or
``(B) any other reason.''.
SEC. 6. PUBLIC DISCLOSURE.
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 detention and
demurrage invoice information by common carriers under
section 41104(a)(15) of this title; and
``(2) all penalties imposed or assessed against common
carriers, as applicable, under sections 41107, 41108, and
41109, listed by each common carrier.''.
SEC. 7. COMMON CARRIERS.
(a) In General.--Section 41104 of title 46, United States
Code, is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking
``may not'' and inserting ``shall not'';
(B) by striking paragraph (3) and inserting the following:
``(3) unreasonably refuse cargo space accommodations when
available, or resort to other unfair or unjustly
discriminatory methods;'';
(C) in paragraph (5), by striking`` in the matter of rates
or charges'' and inserting ``against any commodity group or
type of shipment or in the matter of rates or charges'';
(D) in paragraph (10), by adding ``, including with respect
to vessel space accommodations provided by an ocean common
carrier'' after ``negotiate'';
(E) in paragraph (12) by striking ``; or'' and inserting a
semicolon;
(F) in paragraph (13) by striking the period and inserting
a semicolon; and
(G) by adding at the end the following:
``(14) assess any party for a charge that is inconsistent
or does not comply with all applicable provisions and
regulations, including subsection (c) of section 41102 or
part 545 of title 46, Code of Federal Regulations (or
successor regulations);
``(15) invoice any party for demurrage or detention charges
unless the invoice includes information as described in
subsection (d) showing that such charges comply with--
``(A) all provisions of part 545 of title 46, Code of
Federal Regulations (or successor regulations); and
``(B) applicable provisions and regulations, including the
principles of the final rule published on May 18, 2020,
entitled `Interpretive Rule on Demurrage and Detention Under
the Shipping Act' (or successor rule); or
``(16) for service pursuant to a service contract, give any
undue or unreasonable preference or advantage or impose any
undue or unreasonable prejudice or disadvantage against any
commodity group or type of shipment.''; and
(2) by adding at the end the following:
``(d) Detention and Demurrage Invoice Information.--
``(1) Inaccurate invoice.--If the Commission determines,
after an investigation in response to a submission under
section 41310, that an invoice under subsection (a)(15) was
inaccurate or false, penalties or refunds under section 41107
shall be applied.
``(2) Contents of invoice.--An invoice under subsection
(a)(15), unless otherwise determined by subsequent Commission
rulemaking, shall include accurate information on each of the
following, as well as minimum information as determined by
the Commission:
``(A) Date that container is made available.
``(B) The port of discharge.
``(C) The container number or numbers.
``(D) For exported shipments, the earliest return date.
``(E) The allowed free time in days.
``(F) The start date of free time.
``(G) The end date of free time.
``(H) The applicable detention or demurrage rule on which
the daily rate is based.
``(I) The applicable rate or rates per the applicable rule.
``(J) The total amount due.
``(K) The email, telephone number, or other appropriate
contact information for questions or requests for mitigation
of fees.
[[Page H5461]]
``(L) A statement that the charges are consistent with any
of Federal Maritime Commission rules with respect to
detention and demurrage.
``(M) A statement that the common carrier's performance did
not cause or contribute to the underlying invoiced charges.
``(e) Safe Harbor.--If a non-vessel operating common
carrier passes through to the relevant shipper an invoice
made by the ocean common carrier, and the Commission finds
that the non-vessel operating common carrier is not otherwise
responsible for the charge, then the ocean common carrier
shall be subject to refunds or penalties pursuant to
subsection (d)(1).
``(f) Elimination of Charge Obligation.--Failure to include
the information required under subsection (d) on an invoice
with any demurrage or detention charge shall eliminate any
obligation of the charged party to pay the applicable
charge.''.
(b) Rulemaking on Demurrage or Detention.--
(1) In general.--Not later than 45 days after the date of
enactment of this Act, the Federal Maritime Commission shall
initiate a rulemaking further defining prohibited practices
by common carriers, marine terminal operators, shippers, and
ocean transportation intermediaries under section 41102(c) of
title 46, United States Code, regarding the assessment of
demurrage or detention charges. The Federal Maritime
Commission shall issue a final rule defining such practices
not later than 1 year after the date of enactment of this
Act.
(2) Contents.--The rule under paragraph (1) shall only seek
to further clarify reasonable rules and practices related to
the assessment of detention and demurrage charges to address
the issues identified in the final rule published on May 18,
2020, entitled ``Interpretive Rule on Demurrage and Detention
Under the Shipping Act'' (or successor rule), including a
determination of which parties may be appropriately billed
for any demurrage, detention, or other similar per container
charges.
(c) Rulemaking on Unfair or Unjustly Discriminatory
Methods.--Not later than 60 days after the date of enactment
of this Act, the Federal Maritime Commission shall initiate a
rulemaking defining unfair or unjustly discriminatory methods
under section 41104(a)(3) of title 46, United States Code, as
amended by this section. The Federal Maritime Commission
shall issue a final rule not later than 1 year after the date
of enactment of this Act.
(d) Rulemaking on Unreasonable Refusal to Deal or Negotiate
With Respect to Vessel Space Accommodations.--Not later than
30 days after the date of enactment of this Act, the Federal
Maritime Commission, in consultation with the Commandant of
the United States Coast Guard, shall initiate a rulemaking
defining unreasonable refusal to deal or negotiate with
respect to vessel space under section 41104(a)(10) of title
46, as amended by this section. The Federal Maritime
Commission shall issue a final rule not later than 6 months
after the date of enactment of this Act.
SEC. 8. ASSESSMENT OF PENALTIES OR REFUNDS.
(a) In General.--Title 46, United States Code, is amended--
(1) in section 41107--
(A) in the section heading, by inserting ``or refunds''
after ``penalties'';
(B) in subsection (a), by inserting ``or, in addition to or
in lieu of a civil penalty, is liable for the refund of a
charge'' after ``civil penalty''; and
(C) in subsection (b), by inserting ``or, in addition to or
in lieu of a civil penalty, the refund of a charge,'' after
``civil penalty''; and
(2) section 41109 is amended--
(A) by striking subsections (a) and (b) and inserting the
following:
``(a) General Authority.--Until a matter is referred to the
Attorney General, the Federal Maritime Commission may--
``(1) after notice and opportunity for a hearing, in
accordance with this part--
``(A) assess a civil penalty; or
``(B) in addition to, or in lieu of, assessing a civil
penalty under subparagraph (A), order a refund of money
(including additional amounts in accordance with section
41305(c)), subject to subsection (b)(2); and
``(2) compromise, modify, or remit, with or without
conditions, a civil penalty or refund imposed under paragraph
(1).
``(b) Determination of Amount.--
``(1) Factors for consideration.--In determining the amount
of a civil penalty assessed or refund of money ordered
pursuant to subsection (a), the Federal Maritime Commission
shall take into consideration--
``(A) the nature, circumstances, extent, and gravity of the
violation committed;
``(B) with respect to the violator--
``(i) the degree of culpability;
``(ii) any history of prior offenses;
``(iii) the ability to pay; and
``(iv) such other matters as justice may require; and
``(C) the amount of any refund of money ordered pursuant to
subsection (a)(1)(B).
``(2) Commensurate reduction in civil penalty.--
``(A) In general.--In any case in which the Federal
Maritime Commission orders a refund of money pursuant to
subsection (a)(1)(B) in addition to assessing a civil penalty
pursuant to subsection (a)(1)(A), the amount of the civil
penalty assessed shall be decreased by any additional amounts
included in the refund of money in excess of the actual
injury (as defined in section 41305(a)).
``(B) Treatment of refunds.--A refund of money ordered
pursuant to subsection (a)(1)(B) shall be--
``(i) considered to be compensation paid to the applicable
claimant; and
``(ii) deducted from the total amount of damages awarded to
that claimant in a civil action against the violator relating
to the applicable violation.'';
(B) in subsection (c), by striking ``may not be imposed''
and inserting ``or refund of money under subparagraph (A) or
(B), respectively, of subsection (a)(1) may not be imposed'';
(C) in subsection (e), by inserting ``or order a refund of
money'' after ``penalty'';
(D) in subsection (f), by inserting ``, or that is ordered
to refund money,'' after ``assessed''; and
(E) in subsection (g), in the first sentence, by inserting
``or a refund required under this section'' after
``penalty''.
SEC. 9. 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
``The Federal Maritime Commission shall publish on its
website 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 each ocean common carrier covered under
this chapter. Ocean common carriers under this chapter shall
provide to the Commission all necessary information, as
determined by the Commission, for completion of this
report.''.
(b) Rule of Construction.--Nothing in this section, and the
amendment made by this section, shall be construed to compel
the public disclosure of any confidential or proprietary
data, in accordance with section 552(b)(4) of title 5, United
States Code.
(c) 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. 10. CHARGE COMPLAINTS.
(a) In General.--Chapter 413 of title 46, United States
Code, is amended by adding at the end the following:
``Sec. 41310. Charge complaints
``(a) In General.--A person may submit to the Federal
Maritime Commission, and the Commission shall accept,
information concerning complaints about charges assessed by a
common carrier. The information submitted to the Commission
shall include the bill of lading numbers and invoices, and
may include any other relevant information.
``(b) Investigation.--Upon receipt of a submission under
subsection (a), with respect to a charge assessed by a common
carrier, the Commission shall promptly investigate the charge
with regard to compliance with section 41104(a) and section
41102. The common carrier shall--
``(1) be provided an opportunity to submit additional
information related to the charge in question; and
``(2) bear the burden of establishing the reasonableness of
any demurrage or detention charges pursuant to section 545.5
of title 46, Code of Federal Regulations (or successor
regulations).
``(c) Refund.--Upon receipt of submissions under subsection
(a), if the Commission determines that a charge does not
comply with section 41104(a) or 41102, the Commission shall
promptly order the refund of charges paid.
``(d) Penalties.--In the event of a finding that a charge
does not comply with section 41104(a) or 41102 after
submission under subsection (a), a civil penalty under
section 41107 shall be applied to the common carrier making
such charge.
``(e) Considerations.--If the common carrier assessing the
charge is acting in the capacity of a non-vessel-operating
common carrier, the Commission shall, while conducting an
investigation under subsection (b), consider--
``(1) whether the non-vessel-operating common carrier is
responsible for the noncompliant assessment of the charge, in
whole or in part; and
``(2) whether another party is ultimately responsible in
whole or in part and potentially subject to action under
subsections (c) and (d).''.
(b) Clerical Amendment.--The analysis for chapter 413 of
title 46, United States Code, is amended by adding at the end
the following:
``41310. Charge complaints.''.
SEC. 11. INVESTIGATIONS.
(a) Amendments.--Section 41302 of title 46, United States
Code, is amended--
(1) in subsection (a), in the first sentence, by striking
``or agreement'' and inserting ``agreement, fee, or charge'';
and
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Agreement''
and inserting ``Agreement, fee, or charge''; and
(B) by inserting ``, fee, or charge'' after ``agreement''.
(b) Report.--The Federal Maritime Commission shall publish
on a publicly available website of the Commission a report
containing the results of the investigation entitled ``Fact
Finding No. 29, International
[[Page H5462]]
Ocean Transportation Supply Chain Engagement''.
SEC. 12. AWARD OF ADDITIONAL AMOUNTS.
Section 41305(c) of title 46, United States Code is amended
by striking ``41102(b)'' and inserting ``subsection (b) or
(c) of section 41102''.
SEC. 13. ENFORCEMENT OF REPARATION ORDERS.
Section 41309 of title 46, United States Code, is amended--
(1) in subsection (a), by striking ``reparation, the person
to whom the award was made'' and inserting ``a refund of
money or reparation, the person to which the refund or
reparation was awarded''; and
(2) in subsection (b), in the first sentence--
(A) by striking ``made an award of reparation'' and
inserting ``ordered a refund of money or any other award of
reparation''; and
(B) by inserting ``(except for the Commission or any
component of the Commission)'' after ``parties in the
order''.
SEC. 14. ANNUAL REPORT TO CONGRESS.
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), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(7) an identification of any otherwise concerning
practices by ocean common carriers, particularly such
carriers that are controlled carriers, that are--
``(A) State-owned or State-controlled enterprises; or
``(B) owned or controlled by, a subsidiary of, or 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 1930 (19 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 United States Trade
Representative under section 306 of the Trade Act of 1974 (19
U.S.C. 2416).''.
SEC. 15. TECHNICAL AMENDMENTS.
(a) Section 41108(a) of title 46, United States Code, is
amended by striking ``section 41104(1), (2), or (7)'' and
inserting ``paragraph (1), (2), or (7) of section 41104(a)''.
(b) Section 41109(c) of title 46, United States Code, as
amended by section 8 of this Act, is further amended by
striking ``section 41102(a) or 41104(1) or (2) of this
title'' and inserting ``subsection (a) or (d) of section
41102 or paragraph (1) or (2) of section 41104(a)''.
(c) Section 41305 of title 46, United States Code, as
amended by section 12 of this Act, is further amended--
(1) in subsection (c), by striking ``41104(3) or (6), or
41105(1) or (3) of this title'' and inserting ``paragraph (3)
or (6) of section 41104(a), or paragraph (1) or (3) of
section 41105''; and
(2) in subsection (d), by striking ``section 41104(4)(A) or
(B) of this title'' and inserting ``subparagraph (A) or (B)
of section 41104(a)(4)''.
SEC. 16. DWELL TIME STATISTICS.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Bureau of Transportation Statistics.
(2) Marine container.--The term ``marine container'' means
an intermodal container with a length of--
(A) not less than 20 feet; and
(B) not greater than 45 feet.
(3) Out of service percentage.--The term ``out of service
percentage'' means the proportion of the chassis fleet for
any defined geographical area that is out of service at any
one time.
(4) Street dwell time.--The term ``street dwell time'',
with respect to a piece of equipment, means the quantity of
time during which the piece of equipment is in use outside of
the terminal.
(b) Authority to Collect Data.--
(1) In general.--Each port, marine terminal operator, and
chassis owner or provider with a fleet of over 50 chassis
that supply chassis for a fee shall submit to the Director
such data as the Director determines to be necessary for the
implementation of this section, subject to subchapter III of
chapter 35 of title 44, United States Code.
(2) Approval by omb.--Subject to the availability of
appropriations, not later than 60 days after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall approve an information collection
for purposes of this section.
(c) Publication.--Subject to the availability of
appropriations, not later than 240 days after the date of
enactment of this Act, and not less frequently than monthly
thereafter, the Director shall publish statistics relating to
the dwell time of equipment used in intermodal transportation
at the top 25 ports, including inland ports, by 20-foot
equivalent unit, including--
(1) total street dwell time, from all causes, of marine
containers and marine container chassis; and
(2) the average out of service percentage, which shall not
be identifiable with any particular port, marine terminal
operator, or chassis provider.
(d) Factors.--Subject to the availability of
appropriations, to the maximum extent practicable, the
Director shall publish the statistics described in subsection
(c) on a local, regional, and national basis.
(e) Sunset.--The authority under this section shall expire
December 31, 2026.
SEC. 17. FEDERAL MARITIME COMMISSION ACTIVITIES.
(a) Public Submissions to Commission.--The Federal Maritime
Commission shall--
(1) establish on the public website of the Commission a
webpage that allows for the submission of comments,
complaints, concerns, reports of noncompliance, requests for
investigation, and requests for alternative dispute
resolution; and
(2) direct each submission under the link established under
paragraph (1) to the appropriate component office of the
Commission.
(b) Authorization of Office of Consumer Affairs and Dispute
Resolution Services.--The Commission shall maintain an Office
of Consumer Affairs and Dispute Resolution Services to
provide nonadjudicative ombuds assistance, mediation,
facilitation, and arbitration to resolve challenges and
disputes involving cargo shipments, household good shipments,
and cruises subject to the jurisdiction of the Commission.
(c) Enhancing Capacity for Investigations.--
(1) In general.--Pursuant to section 41302 of title 46,
United States Code, not later than 18 months after the date
of enactment of this Act, the Chairperson of the Commission
shall staff within the Bureau of Enforcement, the Bureau of
Certification and Licensing, the Office of the Managing
Director, the Office of Consumer Affairs and Dispute
Resolution Services, and the Bureau of Trade Analysis not
fewer than 7 total positions to assist in investigations and
oversight, in addition to the positions within the Bureau of
Enforcement, the Bureau of Certification and Licensing, the
Office of the Managing Director, the Office of Consumer
Affairs and Dispute Resolution Services, and the Bureau of
Trade Analysis on that date of enactment.
(2) Duties.--The additional staff appointed under paragraph
(1) shall provide support--
(A) to Area Representatives of the Bureau of Enforcement;
(B) to attorneys of the Bureau of Enforcement in enforcing
the laws and regulations subject to the jurisdiction of the
Commission;
(C) for the alternative dispute resolution services of the
Commission; or
(D) for the review of agreements and activities subject to
the authority of the Commission.
SEC. 18. TEMPORARY EMERGENCY AUTHORITY.
(a) Definitions.--In this section:
(1) Common carrier.--The term ``common carrier'' has the
meaning given the term in section 40102 of title 46, United
States Code.
(2) Motor carrier.--The term ``motor carrier'' has the
meaning given the term in section 13102 of title 49, United
States Code.
(3) Rail carrier.--The term ``rail carrier'' has the
meaning given the term in section 10102 of title 49, United
States Code.
(4) Shipper.--The term ``shipper'' has the meaning given
the term in section 40102 of title 46, United States Code.
(b) Public Input on Information Sharing.--
(1) In general.--Not later than 60 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 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 under this section 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.
(c) Authority To Require Information Sharing.--On making a
unanimous determination described in subsection (d), 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.
(d) Description of Determination.--
(1) In general.--A determination referred to in subsection
(c) is a unanimous determination by the commissioners on the
Commission that congestion of 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 pursuant to subsection (c), the Commission shall tailor
the emergency order with respect to temporal and geographic
scope, taking into consideration the likely burdens on common
carriers and
[[Page H5463]]
marine terminal operators and the likely benefits on
congestion relating to the purposes described in section
40101 of title 46, United States Code.
(e) Petitions for Exception.--
(1) In general.--A common carrier or marine terminal
operator subject to an emergency order issued pursuant to
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 impracticable.
(2) Determination.--The Commission shall make a
determination regarding a petition for exception under
paragraph (1) by--
(A) majority vote; and
(B) not later than 21 days after the date on which the
petition is submitted.
(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 the
petitioner during the period for which the petition is
pending.
(f) Limitations.--
(1) Term.--An emergency order issued pursuant to this
section--
(A) shall remain in effect for a period of not longer than
60 days; but
(B) may be renewed by a unanimous determination of the
Commission.
(2) Sunset.--The authority provided by this section shall
terminate on the date that is 18 months after the date of
enactment of this Act.
(3) Investigative authority unaffected.--Nothing in this
section shall affect the investigative authorities of the
Commission as described in subpart R of part 502 of title 46,
Code of Federal Regulations.
SEC. 19. BEST PRACTICES FOR CHASSIS POOLS.
(a) In General.--Not later than April 1, 2023, the Federal
Maritime Commission shall enter into an agreement with the
Transportation Research Board of the National Academies of
Sciences, Engineering, and Medicine under which the
Transportation Research Board shall carry out a study and
develop best practices for on-terminal or near-terminal
chassis pools that provide service to marine terminal
operators, motor carriers, railroads, and other stakeholders
that use the chassis pools, with the goal of optimizing
supply chain efficiency and effectiveness.
(b) Requirements.--In developing best practices under
subsection (a), the Transportation Research Board shall--
(1) take into consideration--
(A) practical obstacles to the implementation of chassis
pools; and
(B) potential solutions to those obstacles; and
(2) address relevant communication practices, information
sharing, and knowledge management.
(c) Publication.--The Commission shall publish the best
practices developed under this section on a publicly
available website by not later than April 1, 2024.
(d) Funding.--Subject to appropriations, the Commission may
expend such sums as are necessary, but not to exceed
$500,000, to carry out this section.
SEC. 20. LICENSING TESTING.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the Federal Motor
Carrier Safety Administration (referred to in this section as
the ``Administrator'') shall conduct a review of the
discretionary waiver authority described in the document
issued by the Administrator entitled ``Waiver for States
Concerning Third Party CDL Skills Test Examiners In Response
to the COVID-19 Emergency'' and dated August 31, 2021, for
safety concerns.
(b) Permanent Waiver.--If the Administrator finds no safety
concerns after conducting a review under subsection (a), the
Administrator shall--
(1) notwithstanding any other provision of law, make the
waiver permanent; and
(2) not later than 90 days after completing the review
under subsection (a), revise section 384.228 of title 49,
Code of Federal Regulations, to provide that the
discretionary waiver authority referred to in subsection (a)
shall be permanent.
(c) Report.--If the Administrator declines to move forward
with a rulemaking for revision under subsection (b), the
Administrator shall explain the reasons for declining to move
forward with the rulemaking in a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Transportation and Infrastructure of the House
of Representatives.
SEC. 21. PLANNING.
(a) Amendment.--Section 6702(g) of title 49, United States
Code, is amended--
(1) by striking ``Of the amounts'' and inserting the
following:
``(1) In general.--Of the amounts''; and
(2) by adding at the end the following:
``(2) Nonapplicability of certain limitations.--
Subparagraphs (A) and (B) of subsection (c)(2) shall not
apply with respect to amounts made available for planning,
preparation, or design under paragraph (1).''.
(b) Emergency Designation.--Amounts for which outlays are
affected under the amendments made by subsection (a) that
were previously designated by the Congress as an emergency
requirement pursuant to section 4112(a) of H. Con. Res. 71
(115th Congress), the concurrent resolution on the budget for
fiscal year 2018, and to section 251(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985 are
designated by the Congress as an emergency requirement
pursuant to section 4001(a)(1) and section 4001(b) of S. Con.
Res. 14 (117th Congress), the concurrent resolution on the
budget for fiscal year 2022.
SEC. 22. REVIEW OF POTENTIAL DISCRIMINATION AGAINST
TRANSPORTATION OF QUALIFIED HAZARDOUS
MATERIALS.
(a) In General.--Not later than 90 days after the date of
enactment of this Act, the Comptroller General of the United
States shall initiate a review of whether there have been any
systemic decisions by ocean common carriers to discriminate
against maritime transport of qualified hazardous materials
by unreasonably denying vessel space accommodations,
equipment, or other instrumentalities needed to transport
such materials. The Comptroller General shall take into
account any applicable safety and pollution regulations.
(b) Consultation.--The Comptroller General of the United
States may consult with the Commandant of the Coast Guard and
the Chair of the Federal Maritime Commission in conducting
the review under this section.
(c) Definitions.--In this section:
(1) Hazardous materials.--The term ``hazardous materials''
includes dangerous goods, as defined by the International
Maritime Dangerous Goods Code.
(2) Ocean common carrier.--The term ``ocean common
carrier'' has the meaning given such term in section 40102 of
title 46, United States Code.
(3) Qualified hazardous materials.--The term ``qualified
hazardous materials'' means hazardous materials for which the
shipper has certified to the ocean common carrier that such
materials have been or will be tendered in accordance with
applicable safety laws, including regulations.
(4) Shipper.--The term ``shipper'' has the meaning given
such term in section 40102 of title 46, United States Code.
SEC. 23. TRANSPORTATION WORKER IDENTIFICATION CREDENTIALS.
(a) Definition of Direct Assistance to a United States
Port.--In this section:
(1) In general.--The term ``direct assistance to a United
States port'' means the transportation of cargo directly to
or from a United States port.
(2) Exclusions.--The term ``direct assistance to a United
States port'' does not include--
(A) the transportation of a mixed load of cargo that
includes--
(i) cargo that does not originate from a United States
port; or
(ii) a container or cargo that is not bound for a United
States port;
(B) any period during which a motor carrier or driver is
operating in interstate commerce to transport cargo or
provide services not in support of transportation to or from
a United States port; or
(C) the period after a motor carrier dispatches the
applicable driver or commercial motor vehicle of the motor
carrier to another location to begin operation in interstate
commerce in a manner that is not in support of transportation
to or from a United States port.
(b) Transportation Worker Identification Credentials.--The
Administrator of the Transportation Security Administration
and the Commandant of the Coast Guard shall jointly
prioritize and expedite the consideration of applications for
a Transportation Worker Identification Credential with
respect to applicants that reasonably demonstrate that the
purpose of the Transportation Worker Identification
Credential is for providing, within the interior of the
United States, direct assistance to a United States port.
SEC. 24. USE OF UNITED STATES INLAND PORTS FOR STORAGE AND
TRANSFER OF CARGO CONTAINERS.
(a) Meeting.--Not later than 90 days after the date of
enactment of this Act, the Assistant Secretary for
Transportation Policy, in consultation with the Administrator
of the Maritime Administration and the Chairperson of the
Federal Maritime Commission, shall convene a meeting of
representatives of entities described in subsection (b) to
discuss the feasibility of, and strategies for, identifying
Federal and non-Federal land, including inland ports, for the
purposes of storage and transfer of cargo containers due to
port congestion.
(b) Description of Entities.--The entities referred to in
subsection (a) are--
(1) representatives of United States major gateway ports,
inland ports, and export terminals;
(2) ocean carriers;
(3) railroads;
(4) trucking companies;
(5) port workforce, including organized labor; and
(6) such other stakeholders as the Secretary of
Transportation, in consultation with the Chairperson of the
Federal Maritime Commission, determines to be appropriate.
(c) Report to Congress.--As soon as practicable after the
date of the meeting convened under subsection (a), the
Assistant Secretary for Transportation Policy, in
consultation with the Administrator of the Maritime
Administration and the Chairperson of the Federal Maritime
Commission, shall submit to Congress a report describing--
(1) the results of the meeting;
(2) the feasibility of identifying land or property under
the jurisdiction of United States, or ports in the United
States, for storage and transfer of cargo containers; and
(3) recommendations relating to the meeting, if any.
[[Page H5464]]
(d) Savings Provision.--No authorization contained in this
section may be acted on in a manner that jeopardizes or
negatively impacts the national security or defense readiness
of the United States.
SEC. 25. REPORT ON ADOPTION OF TECHNOLOGY AT UNITED STATES
PORTS.
Not later than 1 year after the date of enactment of this
Act, the Comptroller General of the United States shall
submit to Congress a report describing the adoption of
technology at United States ports, as compared to that
adoption at foreign ports, including--
(1) the technological capabilities of United States ports,
as compared to foreign ports;
(2) an assessment of whether the adoption of technology at
United States ports could lower the costs of cargo handling;
(3) an assessment of regulatory and other barriers to the
adoption of technology at United States ports; and
(4) an assessment of technology and the workforce.
SEC. 26. 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
``$32,869,000 for fiscal year 2022, $38,260,000 for fiscal
year 2023, $43,720,000 for fiscal year 2024, and $49,200,000
for fiscal year 2025''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Oregon (Mr. DeFazio) and the gentleman from South Dakota (Mr. Johnson)
each will control 20 minutes.
The Chair recognizes the gentleman from Oregon.
General Leave
Mr. DeFAZIO. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on S. 3580.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Oregon?
There was no objection.
Mr. DeFAZIO. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of S. 3580, the Ocean Shipping
Reform Act of 2022, bipartisan and bicameral legislation to strengthen
our Nation's supply chain and address unfair shipping practices, which
became broadly apparent during the pandemic.
Once again, we have come together to find common ground to address
the needs of the American people. I particularly want to express great
appreciation for the extraordinary leadership of my colleague from
California, John Garamendi, and Dusty Johnson, for their tireless
work fighting for this legislation.
I would also like to acknowledge Sam Graves, the ranking member of
the Transportation and Infrastructure Committee, Coast Guard and
Maritime Transportation Subcommittee Chairman Salud Carbajal, and Coast
Guard and Maritime Transportation Subcommittee Ranking Member Bob
Gibbs. Their contributions were many, and I appreciate the time they
took to work with all the stakeholders.
The COVID-19 pandemic has altered the practice of business worldwide,
perhaps permanently. It shuttered factories, changed consumer demand,
and inundated our ports with containers. In no other time have we had
such an unprecedented need for a resilient supply chain, yet if
anything, the trials of the past 2 years have highlighted the
inefficiencies of our transportation system, both domestically and
internationally.
One response will be, hopefully, with the COMPETES Act, to onshore
critical industries and components in the future. But the other is to
deal with the inefficiencies of the existing system during that
transition.
The importance of the maritime sector as part of America's supply
chain cannot be overstated. $4.6 trillion in activity takes place
annually at all the U.S. seaports.
Despite historic demand and profit levels, we have been alerted to
instances of large ocean carrier conglomerates taking advantage of
American exporters and importers. In fact, the three largest shipping
conglomerates in the world enjoyed more profits last year than the
total of their profits in the previous decade. We might call that price
gouging.
Foreign-flag commercial carriers transport more than 98 percent of
U.S. foreign commerce. Again, we need more significant steps to rebuild
a U.S. maritime industry so, as a maritime nation, we are not dependent
upon Communist China and other places, a whole bunch of developing or
even nonexistent countries with flags of convenience that are
substantially under the thumb of the Chinese.
Foreign-flag commercial carriers transport 98 percent, as I said,
which means we must be robust in our approach to the oversight and
enforcement of trade to secure fairness and economic prosperity.
The Ocean Shipping Reform Act of 2022 gives the Federal Maritime
Commission updated authority to protect exporters, importers, and
consumers from unfair practices by expanding its oversight and
enforcement capabilities, and it amends title 46 to increase penalties
for retaliation against shippers and encourage reciprocal trade. It
ensures that ocean carriers cannot refuse U.S. export cargo bookings
for arbitrary reasons and makes several reforms to the way carriers
levy detention and demurrage charges.
These reforms include requiring written confirmation that the fees
charged are fair and comply with Federal regulations and establishing
that shippers have straightforward and appropriate recourse in the
event of improper detention and demurrage charges or other unfair
shipping practices.
This legislation also authorizes funding levels that would adequately
equip the Federal Maritime Commission to utilize its expanded oversight
and enforcement capabilities. Specifically, the legislation increases
the FMC's authorization from $32.9 million in 2022 to $49.2 million in
fiscal year 2025, a 50 percent increase over 4 years.
This increase would ensure that key leadership positions remain
filled at a time when one in five current FMC employees are eligible to
retire and allow for the hiring of additional staff to improve the
Commission's enforcement actions and provide timely informational and
dispute resolution assistance to consumers.
The Transportation and Infrastructure Committee has held multiple
hearings focusing on relieving the strain on our supply chain. One
recommendation we heard repeatedly is that increased data transparency
and information sharing are essential to reducing lag time at trade-off
points in the supply chain.
The supply chain consists of thousands of moving pieces--vessels,
trucks, trains, planes--that are controlled by small teams of people
making their decisions about cargo loading, timing, and routes based on
weather, pricing, and other factors. We need to make it easier for all
players in this system to talk to each other and share real-time
information with their supply chain partners so that the goods keep
flowing even when a shipper's transit plans change.
This bill works in harmony with actions taken by President Biden, the
Department of Transportation, and the Department of Homeland Security
to make pathways for the shipping community to improve its internal
communication and, in turn, relieve congestion at ports.
In closing, I stress that this legislation is vital for ensuring fair
and efficient shipping, which is integral to the well-being of our
economy.
Allow me, once again, to thank Representatives Garamendi and Johnson
for their leadership. I look forward to unanimous passage in the House,
even if a vote is called for.
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.
Mr. Speaker, one of my favorite movies is the 1993 comedy starring
Bill Murray, ``Groundhog Day.'' In that movie, every day when Bill
Murray wakes up, he goes through the same set of activities and
processes. I can't help but feel a little bit like Bill Murray, given
that this is the fourth time this body is taking up the Ocean Shipping
Reform Act, but I think we are going to get it done this time.
We first passed it in December as a standalone bill with strong
bipartisan vote totals. Then, in January, it was attached to a larger
bill. A few weeks later, it was attached to yet another larger package
of legislation.
Now, we have before us the Senate bill, and I do think that we are
well positioned to get this across the finish line.
I thank the chairman for his kind words earlier. He mentioned the
word ``tireless.'' When it comes to talking about Mr. Garamendi, I
would also use
[[Page H5465]]
the word ``tenacious.'' He was a wonderful partner to try to actually
get something done.
There are so many Members of Congress that are more interested in
complaining about problems or about having the hot tweet of the day.
But in John Garamendi, there is a Member who actually wants to get
things done. What a delightful characteristic to have in a Member of
Congress.
Our version of H.R. 4996, of course, I thought it was the perfect
piece of legislation. But the Senate is entitled to their own opinions,
so we will bring up their version.
I think it is worth us reminding ourselves, how did we get here? We
talk about a supply chain crunch. We talk about a supply chain crisis.
How did we get here, and will this bill actually help?
The influx of Federal dollars injected into the economy and the way
in which the pandemic shifted consumer spending has forced U.S. ports
to face unprecedented volumes of cargo, just stuff incoming, nonstop,
at a level at which this country has not seen.
This pressure on our ports has trickled down to other parts of the
supply chain that has led to delays in product arrivals. It has led to
product shortages, just as all the capacity in our system has been
overwhelmed.
Those soaring freight rates and capacity shortages have made it
difficult not only to receive imports but also to get our American
agriculture and manufactured goods exported for timely delivery abroad.
U.S. importers and exporters, U.S. consumers, have been hit on both
fronts.
Some might be wondering why a Congressman from South Dakota cares so
much about maritime law. The reality is that 60 percent of South
Dakota's soybeans are exported, as are a tremendous amount of dairy,
beef, and corn.
This is not just a coastal issue. This impacts lives from the farm
gate to Main Street. Whether people realize it or not, this supply
chain crunch is impacting them.
I got most involved in this issue when I heard from South Dakota
businesses like Strider Bikes, out of Rapid City, or Valley Queen
Cheese, out of Milbank, about how their ability to do business was
seriously impacted by the crunch at the ports.
{time} 1545
Valley Queen Cheese had 2 million pounds of lactose. It already had a
buyer in Asia. They couldn't get it on a container. At a time when 60
percent of containers going back to Asia were going back empty, they
couldn't get space on a container headed back to their customers.
Strider couldn't get the parts they needed so that they would be able
to sell finished products to American consumers and consumers
elsewhere.
These are real impacts that take millions and billions of dollars out
of the American economy. The American Farm Bureau estimates that more
than $25 billion of ag sales have been forgone because of this problem
at the ports. One industry, the U.S. dairy industry, in just 6 months
last year, experienced a $1.6 billion hit.
So, Mr. Speaker, the Ocean Shipping Reform Act addresses these
problems in a few ways. It addresses the supply chain bottlenecks, it
promotes American competitiveness, and it holds foreign-flagged ocean
carriers accountable for any unfair practices that they engage in.
I just said that this bill is about U.S. competitiveness, and that is
exactly right. My sense is that if you are a foreign-flagged ocean
carrier, and you are using U.S. ports, you need to submit yourself to
some basic rules of the road.
This legislation provides the appropriate authority to the Federal
Maritime Commission so that they can better protect U.S. shippers who
import and export items. They should be able to do that free from
unreasonable anticompetitive actions.
So this bill does a lot, Mr. Speaker, but I want to hit just on three
that I think are most noteworthy. First off, under this legislation,
the FMC will be able to set minimum contract standards for ocean
shipping service contracts. That is critically important. Again, those
are the basic rules of the road we need to make sure are in place.
Secondly, it increases protections for U.S. shippers from retaliation
if the shippers file a complaint with the FMC. There has been a fair
amount of discussion in committee about how loath shippers are to file
complaints against carriers because of concerns about retaliation.
Third, this bill sets standards for detention and demurrage charges
levied by foreign ocean carriers. These are perfectly reasonable
requirements. This bill says that the charges must be accurate, and of
course, they should be, and the bill sets penalties for false or
inaccurate fees.
The House-passed bill placed even more weapons in the FMC's arsenal.
Again, the Senate version is not quite that robust, but Mr. Speaker, I
see no value in us having perfect be the enemy of the good. This does
move us in the right direction, so I would ask my colleagues to vote
for S. 3580, the Ocean Shipping Reform Act of 2022.
A ``yes'' vote is a vote to put U.S. shippers, farmers,
manufacturers, truckers, retailers, and consumers first. I support this
crucial legislation, and I reserve the balance of my time.
Mr. DeFAZIO. Mr. Speaker, I yield 5 minutes to the gentleman from
California (Mr. Garamendi), who played a very principal role in this
legislation.
Mr. GARAMENDI. Mr. Speaker, thank you so very much for the
opportunity to present this.
First, let me throw back comments that Mr. Johnson made. I would say
it precisely the same. Far too kind, but as they apply to you,
certainly in order, each and every one of them.
The pleasure of working across the aisle, but really in common, on a
set of problems that plague our constituents, and frankly, the
constituents of every Representative, perhaps that is why we had such
unanimous or nearly unanimous support here on our legislation which,
correctly, you said, will now pass this House four times.
This bill attacks inflation, and it will reduce consumer costs. It is
not going to solve every problem in the supply chain or every problem
for U.S. exporters, but it will make a very real difference for
American businesses and consumers by lowering the exorbitant ocean
shipping costs and prohibiting unfair business practices by foreign-
flagged ocean carriers.
Let me continue with a few thank-yous. Mr. DeFazio, heads up. Pay
attention. You and your staff and Mr. Graves and his staff deserve
extraordinary thanks here for really putting together some of the
details and pushing this bill along.
Also, Mr. Carbajal, the maritime staff, both minority and majority
for their work on it, and, of course, the author of this bill on the
Senate side, Senator Klobuchar. Mr. Johnson's staff and ours--and
others--worked with her early on in the process as she was preparing to
introduce the Senate version of the House version of the Ocean Shipping
Reform Act.
So where do we go? It was almost 12 months to the day, June 15, that
I reached out across the aisle on the Ocean Shipping Reform Act to work
with my friend, Congressman Dusty Johnson.
It is 12 months later, and I am thrilled that the House is passing
this bill. In a conversation I had earlier last Friday with President
Biden, he wants to sign this bill as soon as it could possibly get to
his desk.
The Ocean Shipping Reform Act, S. 3580, is the first major overhaul
of our Nation's laws and 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,
non-market economies like mainland China.
In late 2001, the People's Republic of China was granted permanent,
normal trade relations with the United States, the so-called most-
favored-nation status--certainly favorable to China, but not to the
United States--following that country's admission to the World Trade
Organization.
The United States' trade imbalance with the People's Republic of
China in 2001 was approximately $83 billion. In 2020, our trade
imbalance with mainland China was $310 billion in nominal dollars,
having increased almost every year.
Concurrently, the ocean shipping industry underwent considerable
consolidation, coinciding with the continual decline of U.S.-flagged
international fleet in favor of foreign flags of convenience--another
way of saying, ``do it on the cheap.''
[[Page H5466]]
Some nine foreign-flagged carriers now dominate the global ocean
shipping industry, several of which are effectively controlled by
foreign governments or foreign state-owned enterprises.
These foreign-flagged ocean carriers have an alliance with each
other. They are not subject to the normal American laws of
anticompetitive behavior so they go about their business. In that
business, we have found the American consumer and the American exporter
are at a disadvantage.
The global COVID-19 pandemic made all of these longstanding issues in
the ocean shipping industry and highlighted the staggering
vulnerabilities in the integrated supply chain that drives global
commerce.
According to The Journal of Commerce, the foreign-flagged ocean
carriers made a record profit of $150 billion--billion--in 2021,
compared to just $25.4 billion in 2022.
Even after more than quintupling their profits during the height of
the pandemic, an independent analysis by the maritime research
consultancy, Drewry, projects that the foreign-flagged ocean carriers
will best their 2021 record profits in 2022, and I might add, at the
expense of American consumers and at the expense of American exporters.
The SPEAKER pro tempore. The gentleman's time has expired.
Mr. DeFAZIO. Mr. Speaker, I yield an additional 2 minutes to the
gentleman.
Mr. GARAMENDI. Mr. Speaker, I better get on with it.
For every American shopper, shipper, agricultural exporter,
manufacturer, retailer, or small business struggling with skyrocketing
ocean shipping costs, I am saying this bill will be help on the way.
The Ocean Shipping Reform Act cracks down on many of the issues. The
Federal Maritime Commission is empowered.
The bill shifts the burden of proof regarding reasonableness to the
ocean carriers, so if they want detention and demurrage, they have to
prove it.
The bill also requires ocean carriers or their billing agencies to
ensure that those charges comply with Federal regulations.
Third: The bill increases the antiretaliation protections for
shippers.
Fourth: The bill establishes a new exception in Federal law that
ocean carriers make a good-faith effort to negotiate vessel space and
accommodate the cargo bookings for U.S. exports.
The bill authorizes the Federal Maritime Commission to regulate
shipping exchanges.
Finally, this is one fine piece of legislation, and I urge its
passage.
Mr. DeFAZIO. 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.
I would like to engage in a brief colloquy with my majority colleague
to ensure that we agree on section 7(b)(1) of S. 3580.
I would ask Chairman DeFazio: Section 7(b)(1) of the bill requires
the FMC to initiate a rulemaking ``further'' defining prohibited
practices by common carriers, marine terminal operators, and ocean
transportation intermediaries under section 41102(c) of title 46,
United States Code.
Section 7(b)(2) states that the contents of the additional rule
required under paragraph 1, ``shall only seek to further clarify
reasonable rules and practices related to the assessment of detention
and demurrage charges to address the issues identified in the final
rule published''--by the FMC--``on May 18, 2020, entitled,
`Interpretive Rule on Demurrage and Detention Under the Shipping
Act.'''
So, Mr. Chairman, my understanding is that any rule prepared under
paragraph 1 of section 7(b) is subject to the limitation set in
paragraph 2, and such rule shall only clarify the May 18, 2020 rule.
I also understand that any rule prepared under section 7 shall be in
addition to, not in place of, the May 2020 rule and that that May 18
rule shall remain in place during the preparation of the additional
rule after the promulgation of such an additional rule unless the FMC
chooses, unrelated to the requirements of section 7, to undertake any
amendment to the May 18, 2020 rule.
Finally, Mr. Speaker, it is my understanding that, though
characterized as an ``interpretive rule,'' this final rule was
promulgated through notice and comment and is changing ocean carrier
behavior with respect to these fees and has already led to enforcement
cases by the Commission to address unreasonable detention and demurrage
charges.
Does the Chair share my understandings with respect to section 7? Of
course, I yield time for the gentleman to respond.
Mr. DeFAZIO. Will the gentleman yield?
Mr. JOHNSON of South Dakota. Mr. Speaker, I yield to the gentleman
from Oregon.
Mr. DeFAZIO. Mr. Speaker, I thank the gentleman. I thank him for the
colloquy.
Yes, I totally agree with the gentleman from South Dakota's
understandings with respect to any additional promulgated rules
pursuant to section 7 and to the May 18, 2020 rule now in place.
Mr. Speaker, I yield back to the gentleman.
Mr. JOHNSON of South Dakota. Mr. Speaker, reclaiming my time.
I appreciate the gentleman's comments, our agreement as well as your
engagement.
Mr. Speaker, I reserve the balance of my time.
Mr. DeFAZIO. Mr. Speaker, I reserve the balance of my time because I
had one additional speaker, but I think he is delayed in transit.
{time} 1600
Mr. JOHNSON of South Dakota. Mr. Speaker, I yield myself such time as
I may consume.
It has been a bit of a journey. The gentleman from California was
right, it is almost a year to the day, but we are here, and we are
about ready to punch this into the end zone.
Mr. Speaker, S. 3580 provides the FMC the crucial tools they need to
help protect U.S. shippers. Both Mr. Garamendi and myself are former
regulators at the State level, and we had shared that it is unusual in
this kind of a highly complex and sophisticated commerce environment
that the FMC has lacked these basic authorities in the past.
This bill moves us in the right direction. It is going to help during
this current crisis. And even more importantly, Mr. Speaker, it will
make a future crisis less likely. People will understand that the cop
on the beat, the FMC, has the authority they need to shave the most
jagged edges off of unreasonable behavior from these foreign-flagged
ocean carriers.
Mr. Speaker, I sincerely thank my colleagues across the aisle for
working with so many of us on this side on this important legislation.
It is a strongly bipartisan and strongly bicameral success. I think
this time we are going to get it across the finish line, signed into
law by the President. I urge support.
Mr. Speaker, I yield back the balance of my time.
Mr. DeFAZIO. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I will just expand a little bit on the gentleman from
California when he raised the MFN for China in 1990, most-favored-
nation status. Until then, we had been able, on an annual basis, to
threaten China with substantial retaliation restrictions if they
violated international norms in trade.
The Clinton administration mistakenly felt that if the Chinese were
given most-favored-nation status and put into the World Trade
Organization that somehow they would reform their practices. They
haven't; they didn't; they won't.
Interestingly, I was cleaning out a drawer in my desk today and came
across a headline story where it said, ``DeFazio predicts the largest
export to China will be U.S. jobs,'' and it has been. We have
hemorrhaged hundreds of thousands, millions of good, family-wage
manufacturing jobs in this country, developed extraordinary dependence.
The Senate version of the COMPETES Act, thanks to Senator Toomey,
would actually make us more dependent on China, do away with all
tariffs, including on medical protective gear and other things.
Did we learn nothing during this pandemic?
[[Page H5467]]
This bill is just one first step in beginning to reestablish the
United States' competitive position in the world with free and ``fair''
trade--fair, underlined eight times--including the shipping companies
and those who utilize or dominate those shipping companies.
This is critical legislation. I am hoping that we can make even more
progress in the COMPETES Act on the Senate side and not adopt their
pathetic, total kowtowing to China.
Mr. Speaker, I urge my colleagues to support this legislation, and I
yield back the balance of my time.
Ms. JACKSON LEE. Mr. Speaker, I stand in support of S. 3580 to defend
the right of American business owners and farmers to receive fair
pricing for the exportation of their valuable products across the
world.
Since the COVID-19 pandemic brought the world to a halt, the
international exchange of goods has struggled to recover.
Many Americans have felt the impact of the supply chain disruption in
their homes and pockets.
Products manufactured in factories overseas take too long to arrive
at our ports.
When they do arrive, they spend days docked on shore before
distribution to American warehouses.
However, the true crime in this broken system has been the theft of
economic opportunity to American exporters.
In the months of October and November 2021, when the global supply
chain was at its most unstable, shipping carriers had the gall to
arrive on U.S. soil, deposit foreign products and then reject the
exports of American farmers and business owners.
In these two months, ocean carriers turned away more than 175,000
containers from ports in California, New Jersey, and New York.
According to some reports, nearly 40 percent of scheduled pickups of
U.S. agricultural exports were cancelled or simply not completed.
Three out of four shipping containers left American ports empty.
That's a loss of over $630 million for American businesses.
When shipping containers were available for export, price gouging ate
into already small profit margins of our hard-working farmers.
In just two years the price of a shipping container leaving the U.S.
quadrupled.
Our business owners, our producers, our farmers are being robbed.
Foreign shipping companies should not be making all time high profits
off the backs of American business owners.
The Ocean Shipping Competition Reform Act will empower the Federal
Maritime Commission to ensure that American companies stand on equal
footing with foreign manufacturers and that these unjust practices come
to an end.
S. 3580 will ensure that shipping companies commit to fair and
equitable pricing practices.
S. 3580 will support the American economy and will empower our
business owners and agricultural leaders to compete on an even playing
field on the international stage.
That is why I stand in support of the Ocean Shipping Competition
Reform Act of 2022, and why I encourage my colleagues to do the same.
Mr. CARBAJAL. Mr. Speaker, I would like to express my support for the
Ocean Shipping Reform Act of 2022. I want to especially commend Reps.
Garamendi and Johnson, on their tremendous work cultivating a
bipartisan agreement to address supply chain issues and unfair
practices in the shipping industry.
I would also like to thank my colleagues for working with me and
Chair DeFazio on this legislation.
Mr. Speaker, the need for this legislation is clear by the fact that
every American now knows the phrase `supply chain disruption'.
Whether its delayed shipments of agricultural goods or the current
infant formula shortage, every family in America has been touched in
some way by these bottlenecks and kinks in our supply chain.
We need robust solutions to address this crisis
This bill is the first step in doing so.
It eases our stressed supply chain by creating more transparency
within our intermodal system and improves efficiency in transporting
goods at a time when supply chain congestion is severe.
The increase in funding for the Federal Maritime Commission in this
4-year authorization is indicative of Congress's strong support for
finding an effective solution to the supply chain crisis. Now is the
time to ensure that the Commission has the ability to enforce fairness
in ocean shipping practices.
I am pleased that the bill contains a number of provisions aimed at
addressing wrongfully issued detention and demurrage charges. This
includes holding shipping companies responsible for proving the
reasonableness of the charges when challenged.
To optimize supply chain efficiency and streamline operations, the
bill calls for a study to develop best practices for chassis pools that
provide service to different types of stakeholders in the intermodal
transportation system.
It also authorizes the collection and publication of equipment dwell
time statistics at the top 25 ports.
I am proud of the Committee's work on this important legislation, and
I look forward to seeing it signed into law.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Oregon (Mr. DeFazio) that the House suspend the rules
and pass the bill, S. 3580.
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. GOOD of Virginia. 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.
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