Harder Backed Bill to Fix American Ports & Combat China Signed into Law

WASHINGTON – Today, the Representative Josh Harder backed bipartisan Ocean Shipping Reform Act was signed into law by President Biden. The law will reduce costs for Valley families and businesses by helping fix the ongoing situation at California’s ports and combatting China’s influence over international shipping. It is the first major update of federal regulations for the global ocean shipping industry in almost 25 years. Last month, Rep. Harder spoke to ABC10 about the Ocean Shipping Reform Act, calling it a “long term fix” to the nation’s supply chain issues currently causing rising prices for Central Valley families.

“Today is a huge win for Valley businesses and families who’ve seen their bills skyrocket in the last few months,” said Rep. Harder. “I backed this bill to make sure America, not China, dictates the rules of global trade. I’m proud to see President Biden sign it into law so we can get shipping costs down and keep them down for everyone in the Valley.”

Over the past two years, the cost to ship a container has increased by up to 500 percent, making it significantly more expensive to import consumer goods and export American products. Huge backlogs at the ports of Los Angeles and Long Beach, which together account for 40 percent of the seaborn imports in the entire United States, have only made prices rise higher. At the same time, China’s growing dominance in international shipping has allowed the country to drive cross-Pacific shipping rates. Together, these issues are contributing to the rapidly increasing cost of goods impacting every family in the Central Valley. 

The Ocean Shipping Reform Act:

• Establishes new authority for the Federal Maritime Commission (FMC) to register shipping exchanges.
• Requires ocean carriers or marine terminal operators to certify that any late fees —known in maritime parlance as “detention and demurrage” charges—comply with federal regulations or face penalties.
• Shift burden of proof regarding the reasonableness of “detention or demurrage” charges from the invoiced party to the ocean carrier.
• Prohibits ocean carriers from declining opportunities for U.S. exports unreasonably, as determined by the FMC.
• Requires ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that makes port in the United States.
• Authorizes the FMC to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures, as appropriate.

In California alone, the bill is endorsed by the California Farm Bureau Federation; California Rice Commission; Almond Alliance of California; California Citrus Mutual; California Cotton Ginners and Growers Association; California Fresh Fruit Association; California Table Grape Commission; California Walnut Commission; Sunsweet Growers Inc.; Western Growers Association; Pacific Coast Council Customs Brokers & Freight Forwarders (Northern California, Los Angeles, and San Diego Associations).

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