The new US Federal Maritime Commission Authorization Act takes aim at carrier alliances and recent consolidation in the shipping industry, says Holland & Knight partner Christopher DeLacy.
The legislation signed into law by President Donald Trump last week.
In a blog post, DeLacy said the act directs the Federal Maritime Commission (FMC) to crack down on anti-competitive practices the alliances might be engaged in while dealing with US marine terminal operators and other service providers.
"The Act provides a clear mandate from Congress for the FMC to exercise substantial oversight over and review of ocean carrier alliance activity with respect to the use of U.S. infrastructure," he wrote, calling the act the most significant change to the 1916 Shipping Act in more than 30 years.
DeLacy said the law gives the Department of Justice the authority to prosecute anti-competitive behavior and charges the FMC with reviewing the effects of alliances on an annual basis and prevents them from engaging in collective negotiation that results in anti-competitive impacts.
The review portion of the act is designed to protect marine terminal operators having rates pushed to unsustainable levels and impairing future investment in US maritime infrastructure.
Further, ocean transport intermediaries will need a valid license and requires marine terminal operators to file reports with the FMC.
"The overall effect of the Act will prove to be significant and should provide strong support to the long-term viability of U.S. maritime commerce," DeLacy wrote.
