Jimmy Panetta

06/16/2022 | Press release | Distributed by Public on 06/17/2022 12:30

Rep. Panetta Joins President Biden for Signing of Bipartisan Shipping Reform Bill

SALINAS, CA - Today, Rep. Jimmy Panetta (D-CA) joined President Joe Biden for the signing of the Ocean Shipping Reform Act, which Rep. Panetta championed over the past few months. This legislation puts the interests of American farmers first, cracking down on skyrocketing shipping costs and boosting exporters' ability to get their goods to the global marketplace. It will provide the Federal Maritime Commission (FMC) with the necessary tools to protect American businesses, farmers, and consumers, while addressing America's longstanding trade imbalance with China and other countries.

"Certain practices by foreign and international shipping companies have contributed to the high cost of food for Americans," said Rep. Panetta. "The bipartisan Ocean Shipping Reform Act will help lower prices for families in our communities and remove excessive shipping fees faced by farmers all across our country. I'm proud to have helped push this bill over the finish line, and look forward to continuing to work with my colleagues and the President to tackle inflation."

During the COVID-19 pandemic, American consumers increased their online purchases, resulting in port congestion that left exporters, including American farmers, struggling to get their products to global markets. This occurred because of ocean carriers denying American cargo and skyrocketing freight costs. Shipping rates for a forty-foot container went from $1,300 prior to the pandemic, up to $11,000 by September 2021.

The Ocean Shipping Reform Act will provide the following tools and capabilities:

  • Stop international ocean carriers from unreasonably declining American cargo, as determined by the FMC in new required rulemaking.
  • Direct the FMC to self-initiate investigations of ocean carrier's business practices and apply enforcement measures.
  • Shift the burden of proof regarding overcharging certain fees, called "demurrage and detention" charges, from the complainant to the international ocean carriers to help level the playing field and improve the FMC's enforcement capacity.
  • Improve transparency of movement of U.S. agricultural and other exports by requiring international ocean carriers to report to the FMC regarding how many empty containers are being transported.
  • Stop retaliation by international shipping companies against exporters and importers.

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