On 28 February, the US House Agriculture Committee listened to the challenges American producers face in the farming sector. One of the concerns raised by Peter Friedmann, executive director of the Agriculture Transportation Coalition (ATC), was the need for more ocean shipping legistalive reforms.

Representing US exporters, Friedmann told the Committee, “if we cannot deliver affordably and dependably, both our foreign and US customers can, and have proven they will shift their purchases to those other countries, sometimes permanently.”

Freight Waves reported that while Friedmann acknowledges that the market is currently seeing “plenty of competition” when it comes to container ship operators, he believes reform is necessary for when “the economy turns again, and there’s more demand and even fewer ocean carriers around.”

“We’ll have to ensure there’s competition,” he said. Friedmann was referring to a provision to be included in the Ocean Shipping Reform Act of 2022 (OSRA) to prevent anti-competitive ocean carriers’ agreements, according to Freight Waves.

“There are significant requirements in OSRA designed to prevent or alleviate significant unreasonable practices by the ocean carriers which at times rendered US agriculture an undependable and unaffordable supplier to the world during the past few years of the COVID supply chain crisis,” Friedmann said in his testimony before the US House of Representatives.

He also claimed that international shipments to inland rail ramps require more clarity. “Currently, for international ocean shipping movements that originate or end at inland locations, regulatory jurisdiction is unclear,” he said. In the case a dispute occurs between a shipper and a railroad or ocean carrier, it is not clear which regulation applies – the OSRA or the Federal Maritime Commission regulation.

The issue of regulations surrounding ocean shipping was not the only topic raised by Friedmann. ATC director also highlighted the need to resolve contract issues of port workers on the West Coast, ensure an adequate supply of transportation services and improve port, rail and road infrastructure.