Bill Overview
Title: Ocean Shipping Reform Act of 2022
Description: This act revises requirements governing ocean shipping to increase the authority of the Federal Maritime Commission (FMC) to promote the growth and development of U.S. exports through an ocean transportation system that is competitive, efficient, and economical. For example, the bill requires the FMC to (1) investigate complaints about detention and demurrage charges (i.e., late fees) charged by common ocean carriers, (2) determine whether those charges are reasonable, and (3) order refunds for unreasonable charges. It also prohibits common ocean carriers, marine terminal operators, or ocean transportation intermediaries from unreasonably refusing cargo space when available or resorting to other unfair or unjustly discriminatory methods.
Sponsors: Sen. Klobuchar, Amy [D-MN]
Target Audience
Population: Individuals affected by changes in international shipping and trade regulations
Estimated Size: 50000000
- The bill impacts international trade and shipping logistics.
- It primarily affects entities directly involved in ocean shipping, including ocean carriers, marine terminal operators, and transport intermediaries.
- As it governs U.S. exports and shipping, its effects ripple to U.S. businesses that export goods, including manufacturers and agricultural producers.
- Consumers who rely on imported goods may experience changes in product availability or cost.
- The global supply chain, which interconnects multiple countries, is likely to feel the effects indirectly.
Reasoning
- The Ocean Shipping Reform Act primarily targets businesses involved in exports, including manufacturers and agricultural producers. These sectors will likely see impacts in shipping logistics and costs.
- Shipping companies and intermediaries will need to adjust to new regulations, potentially affecting their operational processes and efficiency.
- Consumers may indirectly experience changes in prices or availability of goods due to logistics and shipping cost changes.
- Economic benefits could be distributed unevenly, with some sectors benefiting more based on their reliance on exports.
- The policy budget of $50,000,000 USD for year 1 may limit large-scale infrastructure or technological improvements but could fund regulatory changes and enforcement.
Simulated Interviews
Logistics Manager (Los Angeles, California)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This law could streamline some of our operations, but it also means adjustments to how we manage cargo space.
- Finding the right balance to follow the new regulations without overcommitting space will be challenging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Manufacturing Export Specialist (Chicago, Illinois)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The ability to reliably secure shipping space could significantly improve our delivery timelines.
- It might mean a better service for our clients abroad, which could enhance our company's reputation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
International Trade Economist (New York, New York)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 8/20
Statement of Opinion:
- This act could potentially boost U.S. export capacity, but only time will reveal its effectiveness.
- There are many moving parts in global trade, and one policy might not have a sweeping impact.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Farmer (Houston, Texas)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- If this helps keep shipping rates stable or lowers them, it could be beneficial for us farmers.
- Small disruptions in logistic chains can lead to big problems when exporting produce.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Tech Entrepreneur (San Francisco, California)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- While this policy is not directly related to imports, shifts in export efficiency may influence import logistics indirectly.
- Keeping an eye on changes in shipping times and costs will be crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Marine Terminal Operator (Miami, Florida)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- Adjusting to fair cargo space allocation will require us to revisit our logistics protocols.
- Ensuring compliance might add some workload initially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Agricultural Distributor (Seattle, Washington)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Any improvements to fair space allocation could help reduce overhead costs and spoilage due to delays.
- Better shipping reliability would enhance our delivery promises.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Automotive Export Coordinator (Detroit, Michigan)
Age: 62 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 5/20
Statement of Opinion:
- The reform could streamline some of our shipping processes, although its long-term effects remain to be seen.
- It's crucial to have predictable logistics to manage our manufacturing output appropriately.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
International Trade Consultant (Baltimore, Maryland)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- My clients might find it easier to guarantee shipping availability, potentially reducing costs and improving delivery speed.
- A more predictable shipping environment would be beneficial for new exporters.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Retail Buyer (Phoenix, Arizona)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- Although my job focuses on imports, any improvement in the logistics chain due to changes in export regulations could end up affecting import dynamics.
- We have to keep watch for any changes that ripple through the supply chain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $51500000 (Low: $40500000, High: $61500000)
Year 3: $53045000 (Low: $41410000, High: $62670000)
Year 5: $56203635 (Low: $43874394, High: $65181981)
Year 10: $61748494 (Low: $47647800, High: $68770843)
Year 100: $11258999068426240 (Low: $8671199316538240, High: $15049679089642016)
Key Considerations
- Regulatory compliance costs which are unpredictable but impactful.
- The influence on U.S. exporters and the potential boost to export-driven industries.
- Possible geopolitical ramifications involving U.S. trade.
- Impact of global supply chain disruptions and recent history of similar reforms.