“Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years, raising costs for consumers and hurting our businesses. Meanwhile, ocean carriers that are mostly foreign-owned have reported record profits. This bipartisan legislation will level the playing field for manufacturers, farmers,and consumers – a major win as we work to strengthen our nation’s supply chain.” 
- Sen. Klobuchar

Port congestion accelerated during the COVID-19 pandemic and left exporters, including American farmers, struggling to get their products to global markets. Unpredictable sailings and ocean carriers denying American exports exacerbated the pain as freight costs skyrocketed. By September 2021, shipping rates for a 40-foot container climbed to $11,000 from $1,300 before the pandemic.

The Ocean Shipping Reform Act cracks down on skyrocketing ocean shipping costs and eases supply chain backlogs that are raising costs for consumers and making it harder for U.S. farmers and exporters to get their goods to the global market.

“I’m going to tell you that it doesn’t make any sense that we allow ships to leave our ports empty. Now, if the big guys are more powerful than the United States, then we’ve got to figure out something else. Because it sounds like they do what they want, whenever they want, with damn little transparency, charge whatever they want, don’t let that information get out to the general public – so they know how bad they’re getting taken to the cleaners – and we don’t have the tools to deal with that. This is a hell of a problem… if we can fix this, this would be a giant step forward.”
- Sen. Tester 

In March 2022, Sen. Cantwell visited a pop-up port in Seattle that allowed Washington exporters to preposition agricultural containers to boost exports that have been stalled due to port congestion. Growers were able to transport their goods to the pop-up port for storage so that they could quickly be loaded on ships at the export terminals nearby. The USDA partnered with Northwest Seaport Alliance to open the site at Terminal 46, as part of the Biden-Harris Administration’s Supply Chain Task Force efforts.

“This addresses the number one concern of growers, which was to make sure that they got their product to the markets. Some of our growers have lost customers because of these delays. And more containers are leaving our port empty instead of being filled with Washington products. In the next few weeks, this terminal will start filling with containers full of hay, grains, apples, peas, lentils, refrigerated dairy products. Our growers can ship them here, keep them here, and when the next ship is ready to go, their product will be on it.”
- Sen. Cantwell

Sen. Cantwell at the port with USDA Under Secretary Jenny Moffitt and local leaders.
Photo from the Northwest Seaport Alliance

Sen. Klobuchar and Sen. Thune introduced the Ocean Shipping Reform Act in February 2022. Sen. Cantwell shepherded the bill successfully through the Commerce Committee on March 22. The Senate unanimously passed the legislation on March 31 and President Biden signed the bill into law on June 16, 2022. 

Sen. Cantwell and Sen. Klobuchar at President Biden's signing of the Ocean Shipping Reform Act on June 16, 2022

Ocean Shipping Reform at Work: After the Ocean Shipping Reform Act was signed into law, U.S. supply chain backlogs subsequently trended downwards from record highs earlier last year. By October 2022, shipping rates for a 40-foot container dropped to $3,689, a 64 percent decrease from peak rates in September 2021.

The Ocean Shipping Reform Act:

• Stops international ocean carriers from unreasonably declining American export cargo.

• Directs the Federal Maritime Commission (FMC) to self-initiate investigations of ocean carrier business practices and apply enforcement measures.

• Shifts the burden of proof regarding overcharging certain fees, called “demurrage and detention” charges, from the invoiced party to the international ocean carriers to help level the playing field. 

• Improves transparency of movement of U.S. agricultural and other exports by requiring international ocean carriers to report to the FMC regarding how many empty containers are being transported.

• Stops retaliation by international shipping companies against American exporters and importers.

• Formally establishes a new FMC service to improve the complaint and investigation process for American businesses seeking assistance from the FMC.

READ MORE ABOUT THE OCEAN SHIPPING REFORM LAW