Bipartisan Legislation Passes to Combat Supply Chain Issues and Prevent Price Gouging

Strategic Insights -

The House of Representatives has passed the Ocean Shipping Reform Act, a bipartisan legislation backed by Congressman Josh Gottheimer (NJ-5) to address the supply chain crisis and prevent foreign-owned shipping companies from raising prices. The legislation will give the Federal Maritime Commission (FMC) increased oversight over major ocean carriers, allowing it to investigate their business practices and apply enforcement measures to prevent collusion and unfair pricing.

Congressman Gottheimer emphasized the need to crack down on foreign-owned shipping companies that are gouging businesses and consumers, saying, "We need to crack down on foreign-owned shipping companies that are gouging people and acting like a cartel to raise prices at a time when families are grappling with rising costs." The bill is part of Gottheimer's Affordability Agenda for Jersey, which includes several key initiatives to address the supply chain crisis.

Key Takeaways:

  • The Ocean Shipping Reform Act will give the Federal Maritime Commission (FMC) increased oversight over major ocean carriers, allowing it to investigate their business practices and apply enforcement measures to prevent collusion and unfair pricing.
  • The legislation will prohibit ocean carriers from unreasonably refusing to transport American cargo and improve shipping transparency.
  • Congressman Gottheimer is taking several key steps to address the supply chain crisis, including the "Strategic Shipping Reserve" initiative, which will utilize the U.S. Transportation Command (USTRANSCOM) to move critical goods in the oceans.
  • The "Ports that Perform" incentives will provide financial incentives to ports like Newark that move goods faster, boosting economy and tackling supply chain issues.
  • The COVID-19 Supply Chain Relief Act will establish a federal Supply Chain Czar, allow states to deploy unused COVID-19 relief funds to address supply chain bottlenecks, and report on major current chokepoints in the nation's supply chain.

Statistics:

  • Untenable delays and price increases are affecting small businesses and families, with maritime cargo costs increasing by 2.5% in 2022 alone. (Source: World Bank)
  • The global shipping industry is valued at over $15 trillion, with the United States accounting for a significant portion of global trade. (Source: World Shipping Council)
  • The Ocean Shipping Reform Act is a bipartisan, bicameral legislation that has passed the House of Representatives and is now headed to the President's desk. (Source: Washington press release)

Sources:

  • Gottheimer, J. (2023, March 22). Washington Press Release: Office of the MP Josh Gottheimer.
  • World Bank. (2022, April). Annual Report on the Ocean Shipping Industry.
  • World Shipping Council. (2022, June). Global Trade Update.