Posted: September 28, 2010

Maritime labor voices concern on amendments to Ocean Shipping Reform Act


The following letter signed by five unions, including American Maritime Officers, was sent to Congressman James Oberstar (D-MN), chairman of the Transportation and Infrastructure Committee in the House of Representatives.

On behalf of the undersigned American seafaring and longshore labor organizations, we are writing to express our concerns about proposed legislation to amend the Ocean Shipping Reform Act of 1998. Specifically, we are concerned that the introduction of legislation to alter the existing regulatory framework governing the U.S. liner shipping trades without prior agreement among the liner shipping companies, shippers and seafaring and longshore labor as to the changes to the Act that are practical and necessary, may disrupt the efficient and economical operation of vessels in this segment of our industry. Such disruption and resultant adverse economic impact for American liner operators can directly impact the jobs of the American maritime workers our organizations represent.

We greatly appreciate the opportunity that has been given to us by your staff to discuss the specific proposals that may be included in legislation to amend the 1998 Ocean Shipping Reform Act. We understand that a number of these proposals are, in many respects, an attempt to address the severe economic downturn that affected the liner shipping industry and our entire economy beginning in 2009 and which caused a reduction in shipping capacity for American exporters seeking to ship their products to overseas markets. We further understand that the carriers have addressed and continue to address vessel space and container capacity issues, and that available capacity now exceeds American exporters' demand.

Consequently, with the serious short-term capacity crisis over, we firmly believe that through your good offices, the carriers, shippers and labor can be brought together to discuss what actions the industry and the Government should take to mitigate against any such crisis in the future. Also, as you well understand, the ocean shipping industry, unlike the airline industry, has no barriers to entry. This fact, coupled with the fact that the ocean shipping industry is not highly concentrated, can and should be taken into consideration by the carriers and shippers and others when determining what type of regulatory system is warranted. In this manner, the affected parties can work constructively in the closing weeks of this Congress. Otherwise, the closing weeks of the 110th Congress will, unfortunately, be dominated by a counterproductive and polarizing dispute between parties that share the same interest: how to best facilitate the efficient and economical ocean transportation of liner cargoes in the United States export and import trades.

Maritime labor stands ready to participate in this process and to work with you, your staff, the shipping industry and shipper community so that together, we can support realistic and meaningful reforms.

We thank you for your consistent and strong support for the U.S.-flag merchant marine.