In June, ocean shipping companies will see new restrictions put in place. The US Congress is set to hold a final vote on a popular measure to ease pressure on the clogged global supply chains and seaports that are helping to inflate prices throughout the industry.
The Ocean Shipping Reform Act will crack down on shipping companies currently exploiting their market power to hike up fees, refuse transport for exporters and, as a result, reap record profits.
Back in February, Biden’s administration assisted in an agreement between the Federal Maritime Commission and Justice Department to enforce legal protections for the industry against the shipping cartels.
However, the bill didn’t address a significant cause of the market consolidation which enables shipping companies to extract such exorbitant profits. The problem lies in their current exemption from anti-monopoly prosecution.
As such, there will be a rewrite of legislation introduced in March called the Ocean Shipping Antitrust Enforcement Act.
“This is a strong bill that will rein in the abusive practices we have seen from these shipping companies, and we look forward to this legislation being signed into law.”
Klobuchar spokesperson, Jane Meyer
“The ocean shipping companies need to be aware that their day is coming, that their ability to manipulate the market — to purposefully, for their own economic benefit, for their profitability, to really screw American exporters — is over, and that I’m not backing away from this issue.”