Congressman Krishnamoorthi Votes For The Bipartisan Ocean Shipping Reform Act To Crack Down On Skyrocketing Shipping Costs

WASHINGTON - Tonight, Congressman Raja Krishnamoorthi joined his colleagues in voting to pass the bipartisan Ocean Shipping Reform Act to combat skyrocketing shipping costs that are driving up the prices of food and other household essentials. In March, in his capacity as Chairman of the Oversight Subcommittee on Economic and Consumer Policy, Congressman Krishnamoorthi partnered with Rep. James E. Clyburn, Chairman of the Select Subcommittee on the Coronavirus Crisis, to send letters to three of the world's largest ocean freight carriers-A.P. Møller Maersk, CMA CGM Group, and Hapag-Lloyd AG-requesting information about dramatic increases in the prices for shipping containers as well as reports of exorbitant fees and surcharges, which have led to increased costs throughout the supply chain. Maersk, CMA CGM, and Hapag-Lloyd are among the ten largest ocean freight carriers-all foreign-owned-which control nearly 85% of the world's shipping capacity and which appear to have raised shipping rates far beyond increasing costs. In total, the ten largest shipping companies made $150 billion in profits in 2021-nine times greater than their profits in 2020.

"I launched my investigation into price gouging in the shipping industry because of the major role those skyrocketing rates play in the rising prices faced by American businesses and families," said Congressman Raja Krishnamoorthi. "While my investigation into potential price gouging by major players in the industry will continue, the bipartisan Ocean Shipping Reform Act will help American exporters and importers immediately by providing the Federal Maritime Commission the tools it needs to crack down on bad actors and their predatory profiteering."

The Ocean Shipping Reform Act will combat the rise in shipping costs by giving the Federal Maritime Commission new authorities to police the ocean shipping industry and by ensuring that American exporters are not being overcharged or left on the dock. Specifically, the bill:

• Stops international ocean carriers from unreasonably declining American cargo space, as determined by the Federal Maritime Commission.
• Directs the Federal Maritime Commission to self-initiate investigations of ocean carriers' business practices and apply enforcement measures.
• Shifts the burden of proof regarding overcharging certain container fees, called "demurrage and detention" charges, from the complainant to the international ocean carriers to help level the playing field and improve the Federal Maritime Commission's enforcement capacity.
• Improves transparency of movement of U.S. agricultural and other exports by requiring international ocean carriers to report to the Federal Maritime Commission regarding how many empty containers are being transported.
• Stops retaliation by international shipping companies against exporters and importers.
• Formally establishes the Federal Maritime Commission Office of Consumer Affairs and Dispute Resolution Services to improve the complaint and investigation process for American businesses seeking assistance from the Federal Maritime Commission.
• Authorizes the Federal Maritime Commission (FMC) for FY22 - FY25, increasing the funding for the FMC from $32 million in FY22 up to nearly $50 million in FY25, giving the Commission the funding it needs for its enhanced role.