WASHINGTON -- The last regulated transportation service sector of the American economy -- ocean shipping -- could be deregulated without secret deals and therefore accomplished under the terms of an amendment offered by Rep. James L. Oberstar of Minnesota, Ranking Democratic Member of the Transportation and Infrastructure Committee.
The amendment, offered to the Ocean Shipping Reform Act during consideration by the full House of Representatives, would preserve the requirements in existing law for disclosure of the essential terms of contracts between carriers and shippers.
"Over the years, our Committee has led the way to deregulate America's transportation industries from economic second-guessing here in Washington, DC. But as we have done so, we have always kept our eye on matters of safety, fairness, and public disclosure," said Oberstar.
"Since the Ocean Shipping Reform Act was approved by our Committee in August of last year, an issue has come to light which threatens the success of deregulation. A flaw in the bill would allow carriers and conferences to enter into secret contracts with shippers. This provision, which runs counter to current law, would permit foreign carriers - which account for 85 percent of ocean shipping - to set prices for U.S. exports and otherwise discriminate against small shippers and disadvantage our smaller carriers and ports," Oberstar explained.
"My amendment is very simple. It would require public disclosure of contract terms and therefore reduce the specter of unfair competitive advantages of the largest manufacturers and shippers against the smallest. Anything less is unfair, unbalanced, and puts American jobs at needless risk. My amendment would also vest the newly created, independent Surface Transportation Board with the relevant oversight responsibilities currently under the jurisdiction of the Federal Maritime Commission, which would still be eliminated under H.R. 2149," Oberstar continued.
"This change in the bill corrects a problem which should never exist, and does so before the bill becomes law - not afterward. It is therefore common sense, and common decency extended towards an industry which will undergo an economic transformation in the years ahead within our increasingly interdependent and economically competitive global economy," Oberstar concluded.
Other key provisions of H.R. 2149 would remain unchanged, including: