Costa Votes to Strengthen Exports Out of American Ports

WASHINGTON- Congressman Jim Costa (CA-16) released the following statement after House passage of the Ocean Shipping Reform Act of 2021, which ensures shipping carriers treat American exporters fairly by accepting U.S. cargo after bringing imports into the country. The legislation, which Costa co-sponsored and secured key bipartisan support for, is a win for agricultural producers in the Central Valley impacted by supply chain gridlock seen in California ports.

"This legislation creates fair trade practices in American ports. We must do all we can to ensure California agriculture producers, and other U.S. exporters, can ship products without unnecessary delay – it's about a level playing field," Costa said. "No ship arriving with imports should leave an American port empty when products are ready to go. Enacting strong regulations will help end these disruptions to the supply chain."

Rep. Costa has taken a lead role to solve issues in our ports. In March, he organized a bipartisan letter with 100 members of the U.S. House of Representatives to Michael A. Khouri, Chair of the Federal Maritime Commission. At issue were vessel-operating common carriers (VOCCs), which serve as a vital link between American producers and overseas customers, refusing to take U.S. exports. The letter led to Rep. Costa working with Rep. John Garamendi to introducing the Ocean Shipping Reform Act.

Specifically the bill:

• Ensures carriers do not unreasonably decline export cargo if it can be loaded safely, can arrive timely abroad, and is destined to a location to which the carrier is already scheduled.
• Requires that fees imposed on exporters by the carriers for delays provide documented evidence.
• Establishes more regulation over private-sector shipping.

This legislation is the first major update of federal regulations for the global ocean shipping industry since 1998. The bill is also endorsed by a broad coalition of U.S. importers, exporters, and other industries connected to supply chain issues.

In addition, Costa voted for the Build Back Better Act, which the House passed and is under consideration in the Senate. It provides $600 million for the Maritime Administration to support supply chain resilience and increase port efficiency.