By John F. Di Leo -
Analysis of the real story behind the Ocean Shipping Reform Act of 2022
In a lesson for the ages about political grandstanding, Rep. John Garamendi said, "Nine multinational ocean shipping companies formed three consortiums to raise prices on American businesses and consumers by over 1,000% on goods coming from Asia," as he and other members of the Swamp proudly passed the Ocean Shipping Reform Act of 2022, which former NIT-League president Ed Emmett has rightly called "a cure that's worse than the disease."
Never mind that the containership lines have actually operated these alliances, known as Vessel Sharing Agreements, for over a generation, strictly for the benefit of the consumer. The accusatory term "consortium" is utterly unfounded.
Never mind that, in boom times and recessions alike, the containership lines have been delivering most of their services to American businesses – especially exporters – at a massive financial loss, with the government's blessing, and with the market's appreciation, until the past two years.
But now that "supply chain disruption" is on the tip of everyone's tongue, the nation's politicians looked around for someone to blame, and predictably – with the Blamer-in-Chief's blessing, of course – settled on the largely foreign-based shipping lines as the target du jour.
(shown: Pier 300 Channel, photo credit The Port of Los Angeles)