The US House reauthorizes the FMC, enhancing oversight, budget, and responsibilities under the Ocean Shipping Reform Act until 2029.
The US House of Representatives has reauthorized the Federal Maritime Commission (FMC) for another four years, enhancing its oversight powers and increasing its budget, according to the New York Journal of Commerce.
Lawmakers voted to fund the FMC through 2029, raising its annual budget from $49.2 million to $57 million. This reauthorization also codifies new responsibilities under the Ocean Shipping Reform Act of 2022. The bill now moves to the Senate, although no timeline has been set for a vote.
The measure broadens the definition of a "controlled carrier," extending FMC oversight to carriers domiciled in foreign countries that are subject to monitoring by the Department of Commerce or the US Trade Representative. Additionally, the FMC must include in its annual report an analysis of trade imbalances linked to ocean carrier practices.
The agency will be empowered to investigate complaints against shipping exchanges. California Democratic Congressman John Garamendi, a co-sponsor of the bill, emphasized that the Shanghai Shipping Exchange falls under the FMC's new purview.
By 2027, the FMC must establish rules for registering and regulating shipping exchanges in the US. Within one year, it will also begin rulemaking on containerized freight indexes for shippers.
Congress has reauthorized the National Shipper Advisory Committee and authorized the FMC to create port and ocean carrier advisory committees. Garamendi stated that the legislation strengthens the Commission's independence and ensures that US businesses can compete on a fair playing field.
