House Passes Act to Update Ocean Shipping Rules and Limit Certain Chinese Software

The House passed the Ocean Shipping Reform Implementation Act to update ocean shipping rules, study Shanghai's shipping impact on the U.S., ban selected Chinese logistics software for certain groups, and correct typos and reorganize sections for clarity, without a specific party being the driving force.

This is about the Ocean Shipping Reform Implementation Act of 2023. It changes some rules to help ships that carry goods between the United States and other countries work better and more fairly. Here's what it does:

  1. Updates Goals and Definitions: It changes the goals for how the United States wants shipping to work, like promoting trade and being clear about which ships and shipping companies these rules apply to, especially focusing on companies from countries not following market economy principles.

  2. Addresses Complaints Against Shipping Exchanges: If someone has a problem with shipping exchanges (places where shipping services are traded) because they think they are not playing fair, they can now complain to the Federal Maritime Commission, who will check these complaints.

  3. Removes an Old Rule: A specific section of the law that we don't need anymore is taken out.

  4. Better Data Collection: It makes sure the Federal Maritime Commission gets the data it needs without asking for information that other government parts already have, making things more efficient.

  5. New Advisory Committees: It sets up new groups made up of experts to give advice on shipping and port operations. These groups include people from different parts of the shipping industry, like ship operators, port authorities, and workers.

417 votes
Yea393
Nay24
Not Voting15
Mar 21, 2024, 02:37 PM (Washington D.C.)
0

  1. Referred in Senate

    Changes in the current document compared to the previous document:

    1. The current document introduces a section for an annual report and public disclosures, amending Section 46106(b) of title 46, United States Code, with new subsections focusing on anticompetitive practices, trade imbalances, and the aggregated findings of the Vessel-Operating Common Carrier Audit Program.

    2. It includes a section on containerized freight indexes, instructing the Federal Maritime Commission to propose rulemaking on price indexes for containerized ocean freight for U.S. shippers and to publish a final rule within specific timeframes.

    3. A data standard for maritime freight logistics is established by requiring the Federal Maritime Commission to propose rulemaking on such a standard. The rulemaking must develop a data standard for voluntary sharing of supply chain data, incorporate data from stakeholders, consider relevant data standards from the private sector, and ensure confidentiality and cybersecurity.

    4. The document mandates an independent study and report on the Shanghai Shipping Exchange, including a study on its business practices, influence by the People's Republic of China, impact on American businesses and consumers, and the ability of U.S.-based shipping exchanges to report market manipulations.

    5. A policy concerning LOGINK, a logistics software, is introduced. The policy prohibits covered entities from utilizing LOGINK or any logistics software provided by the People's Republic of China or Chinese state-affiliated entities. Guidance will be published listing prohibited logistics technologies, and consultations will be conducted with the United States-China Economic and Security Review Commission.

    6. Lastly, numerous technical amendments were made, including amendments to sections concerning administration, investigations, award of reparations, national shipper advisory committee, monetary penalties or refunds, national advisory committees, and the analysis for certain chapter and sections.

    Notable Observations:

    • The changes aim to enhance maritime freight logistics, address anticompetitive behaviors, improve transparency and reporting in ocean shipping, and establish clear policies on the use of technology provided by foreign adversaries.
    • It emphasizes collaboration among maritime and shipping communities, including advisory committees, and underscores the need for cybersecurity and data protection in the logistic operations.
  2. Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.
  3. Motion to reconsider laid on the table Agreed to without objection.
  4. On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 393 - 24 (Roll no. 98).
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  5. Passed/agreed to in House On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 393 - 24 (Roll no. 98). (text: 3/19/2024 CR H1213-1215)
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  6. Considered as unfinished business.

  7. Engrossed in House

    After comparing both documents, here are the changes:

    1. The title "Ocean Shipping Reform Implementation Act of 2023" stays the same.

    2. Changes in Section 101, Purpose of the Federal Maritime Commission:

      • Original text and amendments regarding goals and operations of ocean commerce in the United States remain unchanged.

    3. Changes in Section 102, Definitions:

      • Definitions related to ocean common carriers include expanded details about financial and legal connections to corporations in certain countries, specifically mentioning nonmarket economy countries, priority foreign countries under the Trade Act of 1974, or those subject to monitoring by the United States Trade Representative. These specifics are consistent between documents.

    4. Changes in Section 103, Complaints Against Shipping Exchanges:

      • The process for exempting and investigating complaints against shipping exchanges, as outlined, remains constant.

    5. Changes in Section 104, Repeal:

      • The repeal of Section 40706 of title 46, United States Code, and the corresponding change in the chapter analysis are unchanged.

    6. Changes in Section 105, Data Collection:

      • Details about the Federal Maritime Commission's quarterly report and the limitation on duplicating submitted data to various U.S. departments and agencies are the same.

    7. Changes in Section 106, National Advisory Committees:

      • Amendments to the National Shipper Advisory Committee and the establishment of the National Port Advisory Committee, including the latter's membership structure, are consistent.

    Both files discussed the same sections with similar content, focusing on the structure, goals, definitions, and processes related to ocean shipping and the Federal Maritime Commission. No differences in terms of amendments, repeals, or added sections were noted in the textual comparison provided. The documents parallel each other in content and structure throughout the compared sections.

  8. At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
  9. DEBATE - The House proceeded with forty minutes of debate on H.R. 1836.
  10. Considered under suspension of the rules. (consideration: CR H1213-1216)
  11. Mr. Johnson (SD) moved to suspend the rules and pass the bill, as amended.
  12. Reported (Amended) by the Committee on Transportation and Infrastructure. H. Rept. 118-218.

  13. Reported in House

    The main changes between the previous and current versions of the "Ocean Shipping Reform Implementation Act of 2023" are:

    1. Section 102 on Definitions was restructured to clarify the description of an "ocean common carrier" by adding clarifications related to entities controlled or financially linked to corporations in specific countries.

    These changes reflect a comprehensive attempt to refine the bill's scope, specifically enhancing the Federal Maritime Commissions' regulatory authority, expanding the role of advisory committees, specifying prohibited technologies, and clarifying the definitions and standards for ocean freight logistics to better address contemporary shipping and trade concerns.

  14. Placed on the Union Calendar, Calendar No. 177.
  15. Committee Consideration and Mark-up Session Held
  16. Ordered to be Reported (Amended) by the Yeas and Nays: 58 - 1.
  17. Subcommittee on Coast Guard and Maritime Transportation Discharged
  18. Referred to the Subcommittee on Coast Guard and Maritime Transportation.
  19. Introduced in House

    This is a bill called the "Ocean Shipping Reform Implementation Act of 2023". It aims to change laws related to shipping goods across oceans to better support shipping businesses and promote fair trade. Here are the key points:

    1. Purpose Changes: The goals for ocean shipping rules are updated to focus more on supporting businesses that ship goods across oceans and encouraging trade that benefits both sides.

    2. Defining "Controlled Carriers": The bill makes it clearer what a 'controlled carrier' means. Now, it includes companies owned or significantly influenced by countries that the U.S. considers non-market economies or has trade issues with. This could affect shipping companies from certain countries.

    3. Service Contracts: Shipping companies must include minimum requirements in their contracts, making deals clearer and ensuring essential terms are stated explicitly.

    4. Complaints Against Shipping Exchanges: People can now report problems with shipping exchanges (places where shipping services are bought and sold) to the Federal Maritime Commission. This could be about breaking rules or unfair competitive practices.

    5. Data Collection Rules: The Federal Maritime Commission has to get reports every three months, but they can't ask for information that other government parts already collected, to avoid making extra work.

    6. Advisory Committees: Two committees are formed to give advice on making the ocean shipping industry better. One is the National Shipper Advisory Committee, which now includes shipping experts, and a new one, the National Seaport Advisory Committee, focuses on port operations and includes representatives from marine terminal operators and port authorities.

    These changes aim to make ocean shipping more efficient, fair, and supportive for businesses. They also try to ensure that decisions are well-informed by having experts advise on shipping policies.

  20. Referred to the House Committee on Transportation and Infrastructure.
  21. Introduced in House