Biden Signs Ocean Shipping Reform Act Into Law

June 16, 2022

President Biden at the Port of Los Angeles on June 10, 2022. (Photo: @POTUS / Twitter)
President Biden at the Port of Los Angeles on June 10, 2022. (Photo: @POTUS / Twitter)

President Joe Biden on Thursday signed legislation to improve oversight of ocean shipping, which lawmakers say will help curb inflation and ease export backlogs.

The bipartisan bill passed the U.S. House of Representatives on a 369-42 vote earlier this week. Biden said he had "promised to crack down on ocean carriers whose price hikes have hurt American families."

The new law boosts the investigatory authority of the Federal Maritime Commission (FMC), the U.S. agency that oversees ocean shipping, and increases transparency of industry practices.

"It's going to help to begin to lower shipping costs," Biden said.

The law will allow the FMC to launch probes of the business practices of ocean common carriers, a term that broadly refers to cargo vessels operating on the high seas.

It will also be able to apply enforcement measures and require the vessels to report to the FMC "total import/export tonnage" each calendar quarter. The law would bar ocean carriers from unreasonably declining opportunities for U.S. exports under new rules to be determined by the FMC.

The World Shipping Council said it will work with the FMC to implement the bill "in a way that will minimize disruption in our supply chain."

However, it added: "Ocean carriers continue to move record volumes of cargo and have invested heavily in new capacity – America needs to make the same commitment and invest in its landside logistics infrastructure."

The White House said the law will "make progress reducing costs for families and ensuring fair treatment for American businesses, including farmers and ranchers."

Congress has few tools to combat inflation, which hit 8.6% in the 12 months through May, according to the U.S. consumer price index. Beyond the shipping bill, Democrats are also pushing measures to lower prescription drug prices.

Imports in the nation's major retail container ports are expected to reach near-record volume in June as retailers seek to meet consumer demand and protect themselves from disruptions in West Coast ports, the National Retail Federation said in a statement last week.


(Reuters - Reporting by David Shepardson; Editing by William Maclean and Richard Pullin)

Logistics News

PD Ports Outlines Plans to Develop UK Offshore Wind Hub

PD Ports Outlines Plans to Develop UK Offshore Wind Hub

DP World Begins $165 Million Expansion of Maputo Container Terminal Capacity

DP World Begins $165 Million Expansion of Maputo Container Terminal Capacity

Port Canaveral Invests $500 Million in Five-Year Port-Wide Improvement Plan

Port Canaveral Invests $500 Million in Five-Year Port-Wide Improvement Plan

Syria Signs New 30-Year Deal with CMA CGM

Syria Signs New 30-Year Deal with CMA CGM

Subscribe for Maritime Logistics Professional E‑News

Turkey maintains its commitment to the contested "Kanal Istanbul" project
JSW Infra, India's JSW Infra, posts 54% increase in quarterly profit due to higher coal volume
Grid says solar is not responsible for the blackout in Spain, but Sanchez was pressed by Sanchez to explain it.