Following passage of the Ocean Shipping Reform Act by the House in December 2021, the Senate has now advanced the bill out of Committee to the full Chamber.  Provisions incorporated in the Ocean Shipping Reform Act are now incorporated into the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act that will assign $350 billion to a broad cross section of the U.S. economy.  The Senate recently passed the U.S. Innovation and Competition Act (USICA) that has similar provisions to the COMPETES Act but excluded the provisions of the Ocean Shipping Reform Act.

The need to make changes to the rules governing ocean shipping was highlighted during the surge in imports that resulted in extensive port congestion.  Ocean carriers also returned empty containers to Asia, depriving U.S. manufacturers and farmers of the opportunity to ship their products.

It is anticipated that both the House and Senate will conference on merging aspects of the COMPETES and the USICA Acts to resolve issues relating to ocean freight.