Bill Overview
Title: Ship Agent Licensure Act of 2022
Description: This bill revises provisions related to ocean shipping policies. Specifically, the bill sets forth a definition for the term ship agent to include a person who is engaged in the business of representing a ship's owner, operator, or charterer in performing carriage while in a port of the United States; responsible for certain services such as crew changes and repatriations; and not owned or controlled by a common carrier or cruise line; prohibits a person in the United States from advertising, holding out, or acting as a ship agent or providing ship agent services in the United States unless the person is domiciled in the United States and holds a license issued by the Federal Maritime Commission (FMC); prohibits a person from advertising, holding out, or acting as a ship agent unless the person furnishes a bond, proof of insurance, or other surety in a form and amount determined by the FMC to insure financial responsibility; and requires the FMC to suspend or revoke a ship agent license if it finds that the ship agent is not qualified to provide ship agency services or willfully failed to comply with provisions in the bill or with an order or regulation of the FMC.
Sponsors: Sen. Reed, Jack [D-RI]
Target Audience
Population: people acting as ship agents globally
Estimated Size: 1000
- Ship agents form a specialized segment of the shipping industry workforce involved in representing ships' owners, operators, or charterers.
- There are global ship agents since the shipping industry is international, and many ship agents likely work with ships entering US ports.
- The requirement for certification and licensure by the Federal Maritime Commission (FMC) is specific to operations within the United States.
- Given the significant number of ports and shipping activities within the United States, a substantial number of individuals working as ship agents in the US will be affected.
Reasoning
- The policy mainly affects ship agents involved in representing vessels at US ports, requiring them to be domiciled in the US and licensed by the FMC. It impacts their operational legality and ensures financial responsibility.
- There might be limited visibility initially among ship agents, combined with potential reluctance to acquire an FMC license due to costs or procedural barriers. Additionally, insurance or surety bonding can be expensive, impacting the agents' financial operations.
- The budget allows for a limited number of agents to be licensed in the first year and over the next decade, primarily for those already established and willing to comply with bonding and certification.
- There is a possibility of reduced competition and an increased compliance burden which may deter some existing agents or newcomers unless the benefits or returns of being licensed are perceivably advantageous.
- Wellbeing scores of the agents might not drastically shift due to career adaptations, operational adjustments or external economic factors in the shipping industry.
Simulated Interviews
Ship Agent (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I have been in this business for 20 years and understand the need for regulation, but the licensure process is going to be a hassle.
- The additional burden of proof of insurance is worrying because it might increase my operational costs significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Ship Agent (Miami, FL)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- As someone new to the industry, the licensure requirements could make it expensive to maintain my role.
- I understand the need for it, but it'll require companies to pay more attention to compliance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
Retired Ship Operator, now a Ship Agent (Houston, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I find that these new requirements are expected in modern times. Regulations are part of making things secure and standardized.
- However, I'm concerned if smaller operations can survive financially with these added costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Logistics Coordinator (New York, NY)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'm not directly affected by needing a license, but our company might restructure due to the policy, impacting jobs like mine.
- The policy makes things seem expensive overall for the shipping sector.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 7 |
Ship Agent (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Given the unpredictable nature of shipping in the last few years, these extra costs might make staying in this line of work unviable.
- Policy compliance looks like it will extend beyond just getting a license. It involves financial guarantees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Ship Agent (Savannah, GA)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- We deal with so many regulations internationally already, adding US-specific ones is complicated.
- I question if the FMC will handle the certification process smoothly or if it'll be costly and slow.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Shipping Company Manager (New Orleans, LA)
Age: 47 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- It'll centralize and streamline operations, but the adaption phase will be tough and requires investment.
- Ensures accountability, but not without transitional friction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 9 |
Independent Ship Agent (Philadelphia, PA)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Navigating the licensing requirements seems daunting given the varied port regulations.
- I'm committed to my role but unsure how these new requirements will impact profitability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Maritime Law Consultant (San Francisco, CA)
Age: 35 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 2/20
Statement of Opinion:
- The policy means more work and business for consultants like me, ensuring ship agents stay compliant.
- Although it's positive for my work, it's important agents see value beyond compliance to engage healthily with this new law.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 10 | 10 |
| Year 20 | 10 | 10 |
Port Authority Manager (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 10
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- The new regulations will streamline port operations by establishing clear agent qualifications, minimizing operational risks.
- Licensing ensures better service quality.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 10 | 10 |
| Year 2 | 10 | 10 |
| Year 3 | 10 | 10 |
| Year 5 | 10 | 10 |
| Year 10 | 10 | 10 |
| Year 20 | 10 | 10 |
Cost Estimates
Year 1: $10000000 (Low: $8000000, High: $13000000)
Year 2: $9000000 (Low: $7000000, High: $12000000)
Year 3: $9000000 (Low: $7000000, High: $12000000)
Year 5: $10000000 (Low: $8000000, High: $13000000)
Year 10: $11000000 (Low: $9000000, High: $14000000)
Year 100: $15000000 (Low: $12000000, High: $18000000)
Key Considerations
- The ship agent licensure requires a robust administrative setup and clear criteria for evaluation by the FMC.
- The costs and savings depend significantly on the efficiency of the licensing process and compliance enforcement.
- The market for ship agents in the US is relatively specialized; thus, the population affected is limited.