Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4996) to amend title 46, United States Code, with respect to prohibited acts by ocean common carriers or marine terminal operators, and for other purposes, as amended. Mr.…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4996) to amend title 46, United States Code, with respect to prohibited acts by ocean common carriers or marine terminal operators, and for other purposes, as amended.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 4996, as amended.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to thank the chairman of the committee, Mr. DeFazio. Congressman Dusty Johnson and I announced our intention to pursue this bipartisan legislation, the Ocean Shipping Reform Act of 2021, just this past June. In late August, we introduced H.R. 4996 and have since earned the support of more than 90 bipartisan cosponsors. On November 17, the Biden administration put out a public statement endorsing our bipartisan bill.
Now, less than 4 months since we first began to develop this legislation, I am thrilled--in fact, I am awed, and I am amazed but very happy--that the House is taking up our comprehensive reform.
The amendment in the nature of a substitute reflects relatively minor changes and a reorganization of H.R. 4996 as introduced. In other words, it is not important to the substance of the bill. I am thrilled with the compromise legislative text reached by the committee's majority and minority staff and the members.
This is what the voters sent us here to do, to identify problems, develop practical solutions, and then work together across the aisle to reach a compromise to achieve a result. That is exactly what the House, both Democrats and Republicans, are now doing in taking up this bipartisan Ocean Shipping Reform Act of 2021 on this date.
I want to thank the gentleman from Oregon (Mr. DeFazio); the gentleman from California (Mr. Carbajal); the ranking member, the gentleman from Missouri (Mr. Graves); and the gentleman from Ohio (Mr. Gibbs) for working with me and my Republican counterpart, the gentleman from South Dakota (Mr. Johnson) to get this result.
I will very, very briefly go through what the bill attempts to do. We are all aware that the pandemic highlighted the longstanding issues of the ocean shipping industry and also the staggering vulnerabilities in the integral supply chain that drives global commerce.
The Ocean Shipping Reform Act would be the first overhaul of Federal regulations for the international ocean shipping industry since 1998. For decades, the United States has run a significant trade imbalance, due in large part to export-driven, nonmarket economies like mainland China.
In 2001, the People's Republic of China was granted permanent normal trade relations with the United States, the so-called most favored nation status, following that country's admission to the World Trade Organization. There has since been considerable consolidation among the foreign-based ocean carriers, coinciding with the continued decline of the U.S.-flagged international fleet in favor of foreign flags of convenience.
A handful of foreign-flagged ocean carriers now dominate the global ocean shipping industry, three of which are from China, another from Korea, and a fifth from Europe, several of which are effectively controlled by these foreign governments. Foreign business access to the American market and our consumers is a privilege; it is not a right.
In 2001, the United States' trade imbalance with the People's Republic of China was approximately $83 billion in nominal dollars. In 2020, our trade imbalance with mainland China was $310 billion, having increased year over year most every year.
This legislation would ensure reciprocal trade to help reduce the United States' longstanding trade imbalance with export-driven countries like China.
California agricultural exporters and other businesses are willing to pay to ensure that their products reach markets in Asia, but they can't pay a fortune to do it. One example, Jelly Belly, the candy company in my district, last spring would pay $3,000 for a container full of candy to ship to the Western Pacific. Today it is $31,900. That is the problem.
The Ocean Shipping Reform Act does make critical reforms requested by major U.S. importers, like the National Retail Federation's member companies. There are many, many examples. I will let those go for now.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Costa) who alerted me to this problem early last summer.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Washington State (Ms. Schrier).
Mr. Speaker, I yield 2 minutes to the gentleman from California (Mr. Carbajal).
Mr. Speaker, may I inquire how much time is remaining?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I continue to reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time.
Occasionally, we toss words back and forth across the aisle here, and I would like to toss a word back across the aisle to Mr. Johnson.
He said compliments my way. The actual compliments go his way. It is not often that we spend time, and we spend a good deal of time working together on these bills, and we ought to do more across the aisle.
Mr. Speaker, it has been a pleasure working with Mr. Johnson and his team, and I thank him. I thank him for stepping forward, as have other Members on your side and my side of the aisle, stepping forward and saying, Hey, there is a problem. It is a problem out there. There are problems of retention and demurrage charges that are, Well, how could that be.
An importer of plastic Christmas trees and wreaths and other ornaments from China could not get his containers off of the port. Yet, he was being charged $4 million, which pretty much puts him out of business. He is not the biggest company in the world, but he would like to be. And given the unfair situation that he was facing, he may never become a major company in the United States. So we need to set up rules of the road, words that Mr. Johnson laid out so clearly. Rules of the road; the guardrails. Within these rules, operations, free enterprise, market competition can take place, but right now, it is a wide-open system in which there is a gunfight on the street, and that is leading to companies not being able to get their goods on the ships to export.
And comments that you have already heard from Mr. Costa, California is a big agricultural export, and so is South Dakota, and so is the Midwest, and so is the Southeast. All of America wants to export, but when you cannot get a container, you are not going to export and you are likely to be out of business, and you are going to incur a very, very significant charge.
So we set up a system in which these charges and the availability are regulated in a mechanism that will be conducted by the Federal Maritime Commission. We can go on and on here, and we probably ought to, but I won't take my full 10 minutes. I will say, as Mr. Johnson said earlier, this isn't the silver bullet, this isn't going to solve all the problems, but when you consider what has already occurred in legislation here--specifically, the Infrastructure Investment and Jobs Act, that piece of legislation will provide $2.5 billion to the ports so that they can upgrade their facilities, so that they can, the next time around, be able to avoid the kind of congestion that is plaguing all of the commerce in this Nation.
We also look to the Build Back Better legislation, which has another $2.5 billion in it to deal with additional infrastructure that is necessary to connect the ports to the rest of the transportation system in this Nation.
Mr. Speaker, we need this bill. We, the American farmer, needs this bill. We, the American export industry--whether it is heavy, light--and the import community, all need this bill. So I urge my colleagues to support the legislation, and in that process, we will, I believe, have a much better market system here in the United States, one that has guardrails, one that provides an equitable and balanced system for the importers and the exporters.
Mr. Speaker, I want to take an opportunity here to thank some very important people. The staff that put this together, on our side of the aisle, Matt Dwyer, the lead person on the Subcommittee on Coast Guard and Maritime Transportation; CheriAnn Thompson on that committee; Cheryl Dickson; and Iain Hart from my own staff.
Mr. Speaker, I yield 1 minute to the gentleman from South Dakota (Mr. Johnson) if he would like to thank his staff.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.