Skip to main content

Costa Introduces Bill to Take on Foreign Shipping Monopolies

February 28, 2022

WASHINGTON - Rep. Jim Costa released the following statement after he introduced the bipartisan Ocean Shipping Antitrust Enforcement Act. The legislation removes exemptions for foreign shipping carriers from federal antitrust laws and addresses unfair practices that harm American businesses.

"This bill is critical in leveling the playing field in ocean shipping,"said Costa "For far too long, a handful of shipping companies have controlled the ocean shipping industry and employed practices that have caused congestion and delays at American ports. If these companies are left unchecked, unfair practices will continue to harm American exporters and U.S. trade interests, which could worsen the supply chain crisis and drive up consumer prices."

By applying federal antitrust laws to foreign ocean shipping companies, this change unties the hands of current and future administrations to take stronger actions to defend American exporters from unfair trade practices like unjustified container rate increases, exorbitant detention and demurrage fees, unexplained changes in shipping schedules, and ships leaving ports with empty containers rather than filling them with American agricultural goods.

Unfair shipping practices have had a significant impact on California agriculture producers. According to a University of California analysis, as recently as September 2021, the share of empty containers leaving California ports hit a record 79 percent, well above pre-pandemic levels of 30 percent.

Costa's legislation answers the Biden administration's call on Congress to pass robust reforms in the Ocean Shipping Industry.