NITL Shipping Act Proposals are Unnecessary and Unworkable
Washington, D.C. - The Shipping Act changes suggested by the NITL are both unnecessary and unworkable. In many cases the changes would amount to the Congress micro-managing the FMC in the Commission’s exercise of powers that it already has. In other cases, the proposals would fundamentally change the Shipping Act from a regime that primarily relies on the market to deliver an efficient and competitive ocean transportation system to a government-managed system that prevents private parties from managing their own commercial affairs. It is hard to believe that this is really what shippers want.
The World Shipping Council and its members recognize the disruptions to the U.S. international ocean transportation system that have been caused by the highest levels of import cargo in history. That cargo demand is the result of altered consumer spending patterns because of COVID-19 and government economic stimulus measures. Carriers are dealing with these highly unusual conditions as best they can, including engaging all available equipment and vessels to move this massive amount of cargo. The fact is, however, that the entire system is overwhelmed, including ports and marine terminals, customer warehouses, longshore labor, and land transportation capacity.
There is no legislative policy that can change the systemic physical challenges caused by the COVID-19 cargo crunch. The efforts of the entire supply chain must be focused on managing through this situation, not wrangling about vague and intrusive regulatory measures that would not and cannot address the problem, but that would change the U.S. ocean transportation system from a free-market model to a government managed utility – much to the detriment of the nations’ international trade.
The World Shipping Council and its members stand ready to work with all regulators and industry stakeholders to navigate a path through the turbulence and disruption of the past year and remain focused on finding solutions to the problems at hand.
Contact
Anna Larsson
Communications Director
Tel: +47 484 06 919
Email: alarsson@worldshipping.org
About World Shipping Council
The World Shipping Council is the united voice of liner shipping, working with policymakers and industry groups to shape the future growth of a socially responsible, environmentally sustainable, safe, and secure shipping industry. We are a non-profit trade association with offices in Brussels, Singapore and Washington, D.C. Read more at www.worldshipping.org