Bill Overview
Title: Ocean Shipping Competition Reform Act of 2022
Description: This bill eliminates certain antitrust immunity for anticompetitive acts by ocean common carriers or marine terminal operators and allows the Department of Justice (DOJ), in addition to the Federal Maritime Commission (FMC), to seek injunctive relief for anticompetitive acts by such carriers or operators. The bill allows third parties to participate in civil actions brought by the FMC or DOJ against ocean carriers for anticompetitive harm. It also allows for punitive damages.
Sponsors: Sen. Klobuchar, Amy [D-MN]
Target Audience
Population: People involved in or relying on global shipping industry and supply chains
Estimated Size: 250000000
- The global shipping industry is truly international, impacting businesses and consumers worldwide.
- Marine terminal operators and ocean common carriers operating worldwide will be directly impacted by the bill as they will face increased scrutiny and potential legal action from both the FMC and DOJ.
- Antitrust legislation affecting shipping can influence global supply chains, impacting manufacturers and suppliers who rely on maritime shipping.
- Consumers globally may be indirectly affected if shipping companies change pricing strategies due to this legislation.
- This bill targets anticompetitive behavior which can affect international trade distribution channels and costs.
Reasoning
- The policy mostly affects businesses and workers in sectors relying on ocean shipping, including import-export businesses in the U.S. and globally.
- Consumers may see indirect effects in the form of changes in prices for goods if shipping costs adjust after the policy implementation.
- Large retail companies and manufacturers using ocean shipping will be more directly concerned with these changes, potentially affecting their supply chain operational costs.
- Small businesses dependent on imports may benefit if the policy leads to reduced shipping costs due to increased competition.
- Individuals not directly involved in shipping or import-export may not feel the impact directly.
Simulated Interviews
Supply Chain Manager (Seattle, WA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I think the policy will encourage more competitive shipping rates, which could lower our operational costs.
- The added scrutiny over shipping practices is welcome as our company relies on transparent operations of shipping lines.
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 | 5 |
Owner of a small import business (Houston, TX)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The ability to join civil suits against unfair practices is a significant step. It might help small businesses like mine.
- Maybe this will make the shipping market fairer and drive costs down for everyone.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Dockworker (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This could mean more competitive job opportunities if new shipping companies enter the market.
- I hope it doesn’t mean more layoffs at the terminals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
CEO of an export company (Miami, FL)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Pricing transparency and fair competition are critical for controlling export costs.
- The potential legal battles could open up new challenges or opportunities in international markets.
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 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 6 |
Economist (New York, NY)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- This policy could stimulate economic activity by ensuring fair competition.
- It has the potential to change shipping dynamics significantly, but the outcomes are uncertain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Retail Store Owner (Chicago, IL)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- If shipping prices drop, my business could afford to keep more stock.
- I'm unsure if the policy will trickle down to small retailers like me in the near term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Logistics Coordinator (Dallas, TX)
Age: 51 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Our company could benefit from more transparent shipping practices.
- The policy should help in contract negotiations with shipping companies.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Port Authority Official (Savannah, GA)
Age: 62 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This bill will possibly lead to more work in compliance and oversight at ports.
- Important to implement correctly without disrupting operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 6 |
Environmental Activist (San Francisco, CA)
Age: 23 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- This policy aligns with efforts for more sustainable and equitable shipping.
- Any changes that push shipping companies towards transparency and better practices are positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Importer (New Orleans, LA)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The legal options seem promising for fighting unfair practices; hoping it leads to fewer disruptions.
- Customs hang-ups are a problem; anything that alleviates this is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Cost Estimates
Year 1: $7500000 (Low: $5000000, High: $10000000)
Year 2: $8000000 (Low: $5500000, High: $10500000)
Year 3: $8500000 (Low: $6000000, High: $11000000)
Year 5: $9500000 (Low: $7000000, High: $12000000)
Year 10: $12000000 (Low: $9000000, High: $15000000)
Year 100: $20000000 (Low: $16000000, High: $24000000)
Key Considerations
- The scope of jurisdiction for reviewing anticompetitive behavior is broadened to include the DOJ, potentially increasing oversight capabilities.
- Third-party participation could lead to increased litigation, requiring additional judicial resources.
- Changes in legal frameworks could contribute to global shifts in competitive practices among shipping firms.