Costa Votes to Strengthen American Exports, Fix Supply Chain Issues

Press Release

Congressman Jim Costa (CA-16), a senior member of the House Agriculture Committee, released the following statement after he voted to pass the bipartisan S. 3580 -- Ocean Shipping Reform Act of 2022, which ensures shipping carriers treat American exporters fairly by accepting U.S. cargo after bringing imports into the country. This legislation will now head to President Biden's desk to be signed into law.

"No ship arriving with imports should leave an American port empty when products are ready to go," said Costa. "This bipartisan legislation creates fair trade practices in American ports so California farmers, and other U.S. exporters, can ship products without unnecessary delay -- it's about a level playing field. I am proud to have helped lead this effort."

Unfair export practices have disproportionately impacted California farm exports. Carriers have left thousands of pounds of perishable products ready for export stranded in California ports without consequence. This legislation gives the Federal Maritime Commission more authority to confront unfair trade practices.

Specifically, the bill:

- Ensures carriers do not unreasonably decline export cargo if it can be loaded safely, can arrive timely abroad, and is destined to a location to which the carrier is already scheduled.
- Requires that carriers provide documented evidence to justify fees imposed on exporters for delays.
- Improves transparency of movement of U.S. agricultural and other exports by requiring international ocean carriers to report to the Federal Maritime Commission how many empty containers are being transported.
- Stops retaliation by international shipping companies against exporters and importers.

This legislation is the first major update of federal regulations for the global ocean shipping industry since 1998. The bill is endorsed by a broad coalition of U.S. importers, exporters, and other industries connected to supply chain issues.

Costa has taken a lead role to solve issues in our ports. He is an original co-sponsor of the House version and secured bipartisan support for the bill.

President Biden has stressed that his administration is ready to confront the problems that have resulted from ocean shipping companies that have monopolized the market. Costa is pushing to pass his bipartisan Ocean Shipping Antitrust Enforcement Act, which would remove exemptions for foreign shipping carriers from federal antitrust laws and address unfair practices that harm American businesses.

President Biden endorsed this legislative fix in his State of the Union remarks. Combined with the Ocean Shipping Reform Act, these pieces of legislation will defend American exporters from unfair trade practices and protect American consumers.

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