H.R. 666: Noncontiguous Shipping Reasonable Rate Act of 2024
This bill, known as the Noncontiguous Shipping Reasonable Rate Act of 2024, aims to establish a clearer definition of what constitutes a "reasonable rate" for shipping goods between noncontiguous regions within the United States through domestic oceans. Here are the key points regarding the bill:
Objective of the Bill
The main objective of the bill is to provide specific guidelines that determine reasonable shipping rates for noncontiguous domestic ocean trade. Noncontiguous regions refer to areas that are not physically connected to the main body of the United States, such as Alaska, Hawaii, and U.S. territories.
Key Provisions
- The bill proposes to amend current regulations to replace an existing paragraph with a new definition of a "reasonable rate".
- According to the new definition, a shipping rate will be considered reasonable if it is within 10 percent of a rate established by a comparable international ocean rate index that is recognized by the Federal Maritime Commission (FMC).
Impact of the Bill
By establishing this standard for reasonable rates, the bill could affect how shipping companies price their services for shipping goods to noncontiguous regions. It aims to ensure that shipping rates remain fair and not excessively high, promoting competitive pricing in the industry.
Implementation
The enforcement of this bill would fall under the jurisdiction of the Federal Maritime Commission, which would recognize the relevant international ocean rate indices to gauge what constitutes a reasonable rate.
Purpose of the Amendments
The amendments are intended to protect consumers and businesses in noncontiguous areas from being overcharged for essential shipping services. By aligning shipping rates with international standards, the bill seeks to create a more equitable shipping environment.
Potential Regulatory Changes
The bill may also prompt regulatory changes regarding how shipping companies report and structure their pricing models, ensuring they adhere to the new reasonable rate benchmarks.
Relevant Companies
- UPS (United Parcel Service) - This company could be directly impacted as it provides shipping and logistics services, and may need to adjust its pricing strategies to comply with the new definition of reasonable rates.
- FDX (FedEx Corporation) - Similar to UPS, FedEx may also be affected as it operates in the shipping sector and will face the need to align its rates with the new regulations.
- CMA CGM - As a major shipping line, CMA CGM may need to evaluate its pricing structures in light of the new reasonable rate criteria established by the FMC.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
2 bill sponsors
Actions
4 actions
| Date | Action |
|---|---|
| Feb. 04, 2025 | Sponsor introductory remarks on measure. (CR E90-91) |
| Jan. 23, 2025 | Introduced in House |
| Jan. 23, 2025 | Referred to the House Committee on Transportation and Infrastructure. |
| Jan. 23, 2025 | Referred to the Subcommittee on Coast Guard and Maritime Transportation. |
Corporate Lobbying
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