The Bill was tabled by Congressmen Oberstar and Cummings on 23 September, and should abolish cartel activity, including price fixing, liner conferences and discussion agreements in U.S. liner shipping markets.

It has been said that the Bill marks a significant step in a process that the U.S. National Industrial Transportation League (NITL) and FTA initiated in 1992.

FTA’s General Manager of Global and European Affairs, Chris Welsh, said: “Make no mistake, these legislative steps represent an historic landmark in the abolition of the sorts of unacceptable cartel activity that have plagued shippers around the world and caused such disruption to the global supply chain.”

The FTA reported that cartels have been behind the cynical rate increases, unfair or deceptive surcharges, capacity shortages and other “unacceptable” shipping practices. These have come to characterize the liner shipping industry in the last year, the FTA said, which has experienced tough trading conditions recently.

The NITL has been a driver behind Congressman Oberstar’s new Ocean Shipping Reform Bill, according to the FTA, which revealed there had been unprecedented complaints from U.S. shippers over “roll overs”, the tearing up of service contracts and capacity withdrawals by carriers in the Trans-Pacific trades.

“Reforming international ocean shipping was never going to be a quick win, but it is immensely satisfying to see the seeds we planted nearly 20 years ago bearing such fruit,” Welsh added.

“Our attention is now firmly fixed on seeing the safe passage of the Ocean Reform Bill through Congress, and imposing the same sorts of legislation in fast emerging economies such as those found in Asia.”

Edited by Darrel Moore

For more information, visit the Freight Transport Association website.