By Jennifer Whitlock
Field Editor
Facing renewed calls for quick action on shipping issues at U.S. ports, two senators have introduced the Ocean Shipping Reform Act (OSRA) in the U.S. Senate.
Sens. Amy Klobuchar of Minnesota and John Thune of South Dakota introduced their version to the Senate after the authors of the House version, Reps. John Garamendi (D-Calif.) and Dusty Johnson (R-South Dakota), offered their bill as an amendment to the America COMPETES Act.
The original OSRA House bill passed the lower chamber in December as a stand-alone bill, but adding the measure to the trade competitive-focused America COMPETES Act may help get ocean shipping reform onto the president’s desk and signed into law sooner.
In the Senate, the bipartisan bill is cosponsored by Democrats Sens. Tammy Baldwin, Richard Blumenthal, Cory Booker, Mark Kelly, Gary Peters and Debbie Stabenow, as well as Republican Sens. Marsha Blackburn, Joni Ernst, John Hoeven, Roger Marshall, Jerry Moran and Todd Young.
“Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years. Meanwhile, ocean carriers have reported record profits,” Klobuchar said. “This legislation will level the playing field by giving the Federal Maritime Commission (FMC) greater authority to regulate harmful practices by carriers and set rules on what fees carriers can reasonably charge shippers and transporters. As we work to improve our supply chains, I’ll keep fighting to establish trade opportunities for the U.S.”
It would be the first major update to the FMC’s authority in more than 20 years. Proponents of the bill say overhauls are necessary to keep up with changing industry practices and increased port congestion.
Groups representing a broad scope of the agricultural sector say the bill would help stem the tide of losses their members have faced since the COVID-19 pandemic exacerbated those issues. Dairy farmers alone lost $1.3 billion in the first three quarters of 2021 due to export problems, National Milk Producers Federation President and CEO Jim Mulhern noted in a statement of support for the legislation.
“The improvements made by this bill would provide the FMC with the tools necessary to address unreasonable practices by ocean carriers, holding them accountable for their bad-faith efforts that disenfranchise American producers…who feed the world,” Thune said. “Especially with record inflation in prices of goods, this legislation would also benefit consumers by promoting the fluidity and efficiency of the supply chain.”
Differences between the House and Senate versions of the bill may cause tension as the legislation moves forward, however.
The House OSRA bill specifically prohibits ocean carriers from refusing to export agricultural products, including U.S. beef, pork, almonds, hay, dairy, wine and citrus. The Senate version would allow the FMC to issue new rules on that one year after the legislation is signed into law.
That delay in enforcement could prove devastating to farmers and ranchers struggling to survive, according to a coalition of more than 100 agricultural groups, including American Farm Bureau Federation, who sent a letter to Senate Majority Leader Chuck Schumer and Senate Minority Leader Mitch McConnell urging the quick passage of ocean carrier reform legislation.
“The transportation crisis for U.S. agriculture products has become increasingly dire. Many agriculture products produced in the U.S. experience significant competition from other countries. If we cannot deliver our products dependably, our foreign customers will find alternatives to our exports,” AFBF and the other organizations warned.