The pandemic seemingly brought the cracks in our supply chain to the surface. From cargo ships to planes, semi-trucks to trains, it seems we have hit roadblock after roadblock the last few years. It’s time to get our supply chain on the right track — literally.
As a Representative from an agriculture dominated state, the flaws in our system became extremely apparent in the food processing space and ocean shipping industry at the end of 2020. We all witnessed the unprecedented number of cargo ships clogged at American ports from California to Florida. South Dakota dairy was sitting at ports waiting to be shipped overseas for months – eventually rotting – because foreign-flagged ocean carriers were prioritizing Chinese electronics over American food exports.
These unfair shipping trade practices got so bad, it resulted in billions of dollars in losses to American food producers. Someone had to step in. I found a partner in a Democrat from California, Representative John Garamendi, and we got to work on the Ocean Shipping Reform Act.
Our bipartisan bill, now law, was the strongest fix to our maritime laws in a generation. The Ocean Shipping Reform Act strengthened the authority of the Federal Maritime Commission (FMC) by providing it with new tools to help level the playing field for American exporters and counteract anticompetitive behavior. It allows the FMC to more efficiently resolve disputes between ocean carriers and shippers, while also taking actions at the U.S. Department of Transportation to alleviate strain across the supply chain.
The Ocean Shipping Reform Act strengthened the authority of the Federal Maritime Commission by providing it with new tools to help level the playing field for American exporters.
The bill has evidently eased supply chain pressures by addressing unfair ocean carrier practices, speeding up the resolution of disputes over carrier fees, and improving the movement of goods at our nation’s ports. But there’s more we can do.
I’m working on a number of additional proposals to further strengthen our supply chain.
First, I want to do more to solidify America’s supply chain. That’s why in March, Representative Garamendi and I introduced the Ocean Shipping Reform Implementation Act, or OSRA 2.0 as I like to call it. Our bill builds on the progress of its predecessor and further cracks down on the Chinese Communist Party’s attempt to disrupt and influence America’s supply chain.
OSRA 2.0 prohibits U.S. ports from using Chinese state-sponsored shipping software, allows the FMC to investigate foreign shipping exchanges like the Shanghai Shipping Exchange to preempt improper business practices, and authorizes the FMC to streamline data standards for maritime freight logistics.
Many of our supply chain woes are a result of dependency on China and a lack of accountability towards their improper business practices. OSRA 2.0 corrects that.
OSRA 2.0 builds on the progress of it’s predecessor and further cracks down on the Chinese Communist Party’s attempt to disrupt and influence America’s supply chain.
We know the areas of our supply chain that need improvement—Congress should act now rather than wait until the next crisis arises. American consumers and businesses need stability. While congestion levels at U.S. ports have significantly declined, businesses continue to face domestic shipping delays. I want to solve our domestic problems, too.
That’s why I introduced the SHIP IT Act, which includes a number of initiatives that would help add fluidity to the movement of freight in America. My bill would strengthen our supply chain by increasing shipping capacity, lessening the burdens on current and future truck drivers. Specifically, it would modernize the authority for certain vehicle waivers during emergencies, allowing waivers in response to disease and supply chain emergencies. It would also provide incentives to recruit and retain drivers by allowing truck drivers to apply for workforce Innovation and Opportunity Act grants and would create targeted and temporary tax credits for new truck drivers.
The SHIP IT Act would also increase truck weight allowing for increased shipping capacity across the United States.
There is a menu of solutions to our nation’s supply chain issues. Congress should take a serious look at solving these problems before they turn into a crisis. I’ll continue to push for these important solutions.
Dusty Johnson represents South Dakota in the U.S. House of Representatives and serves as co-Chair of the bipartisan Congressional Supply Chain Caucus.