Repealing Ocean Shipper Antitrust Immunity

SMART has joined a broad industry coalition in urging the new Congress to pass legislation limiting the longstanding antitrust immunity enjoyed by ocean carriers.

In a Jan. 12 letter to House Transportation and Infrastructure Committee Chairman John Mica (R-FL), the coalition called upon the Congressman to repeal the nearly one hundred year-old antitrust exemption which allows foreign shipping companies to collectively fix freight rates, service terms, and vessel capacity offered to U.S. importers and exporters. The coalition argued there is no basis for allowing these anticompetitive practices, which create damaging higher costs and unpredictable shipping patterns, in today's global marketplace. And further, "Repealing ocean carrier antitrust immunity would place U.S. importers and exporters on a level playing field with the carriers, not cost one penny of government money and would allow U.S. companies to be more competitive in overseas markets and better serve their customers here at home."

Former Transportation Committee Chairman Jim Oberstar (D-MN) introduced a bill repealing the shipping antitrust exemption during the last Congress. However, that measure, the Shipping Act of 2010 (H.R. 6167), failed to move due to a packed legislative agenda and Rep. Oberstar subsequently losing his seat in the November elections. Although it’s unclear whether Mica will support repeal legislation, the coalition is hopeful that the Oberstar bill will serve as an important starting point for future reform discussions in the current Congress.