| October 25, 2010 | Contact: Jessica Franken Government Affairs Consultant |
SMART Backs Bill That Would End Ocean Shipper Antitrust Immunity
SMART has joined a broad industry coalition in backing legislation that will significantly curtail longstanding antitrust immunity enjoyed by ocean carriers.
The bill, the Shipping Act of 2010 (H.R. 6167), introduced by Rep. James L. Oberstar (D-MN) Sept. 22, would prevent liner carriers from discussing or agreeing upon rates and charges, including guidelines that form the basis of pricing services for their customers, and enact a host of other changes. Carriers would still be given antitrust immunity for the purpose of sharing space on each others' vessels in order to provide better service.
Oberstar said he introduced the legislation partly in response to a March hearing where importers, exporters, agricultural shippers, manufacturers, retailers and raw products exporters all complained about rising prices and lack of cargo capacity.
"Shippers complained that ocean carriers do not have enough capacity in the market to meet the demands of U.S. shippers and that rate increases imposed through new service contracts have skyrocketed," Oberstar said. "Shippers expressed concern that there is no willingness on the part of conference agreement participants to negotiate independent rates. This has significantly increased the costs of U.S. exports and made it difficult for U.S. importers to price their products."
Predictably, the World Shipping Council, whose members carry over 90 percent of international containerized trade, has condemned H.R. 6167. "If enacted, the bill would create an ocean transportation system that would make U.S. trades less efficient and more costly for carriers, resulting in less choice, less capacity, lower service quality, and higher costs for U.S. exporters and importers," the WSC said in an Oct. 15 statement.
Although it’s unlikely the bill will be enacted during the lame-duck session of Congress because of other legislative priorities, most agree H.R. 6167 will serve as an important starting point for future reform discussions in the next Congress.
To view the Shipping Act of 2010, click here.
Secondary Materials And Recycled Textile (SMART) Association
As an international trade association, SMART strengthens the economic opportunities of our diverse membership by promoting the interdependence of our industry segments and providing a common forum for networking, education and trade. Since 1932, SMART has been at the forefront of recycling. SMART members use and convert recycled and secondary materials from used clothing, commercial laundries and nonwoven, off spec material, new mill ends and paper from around the world. SMART member companies create thousands of jobs worldwide. Our members prove each day that you can make money by being socially responsible. For more on SMART, visit our website, www.smartasn.org.
