Bill Would Limit Ocean Carriers’ Anti-Trust Immunity

 

Among other things, the legislation would limit the current anti-trust immunity enjoyed by ocean carriers and impose new oversight on the ocean carrier community.

 

The bill was introduced Sept. 23, shortly after American Footwear and Apparel Association joined with a growing coalition of retailers, agricultural interests and others major shippers to send a September 15 letter to Chairman Oberstar urging Congress to immediately enact legislation to address the issue.

 

In March 17 hearing before the Committee on Transportation and Infrastructure, importers, exporters, agricultural shippers, manufacturers, retail stores, and raw products exporters complained that ocean carriers did 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. Shippers testified that there is no willingness on the part of conference agreement participants to negotiate rates. This has significantly increased the costs of U.S. exports and made it difficult for U.S. importers to price their products.

 

Many sporting goods companies have reported that a lack of ships and containers has delayed their imports from China and other Asian locations into the United States since last year. Many shippers allege that shipping companies have colluded to shrink their equipment fleets and jack up rates until the recoup losses from 2009, when import plummeted.