[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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