U.S. proposed changes to FMC in bill hr4005

The United States House of Representatives has passed a bill (drafted by the transportation committee)
regarding the U.S. Coast Guard, the Federal Maritime Commission (FMC).

The essence of the changes regarding the FMC appears to limit the terms of the commissioners, AND, put restrictions on a Commissioner having any investments in the industry, and prohibits commissioners from holding a job in addition to being an  FMC Commissioner.

It's rather sad this must be added into the law, but can only presume there has been some breach of what should be good conduct by an appointed official.  Well, certainly wouldn't be the first time.

It appears the committee is also trying to figure out why U.S. Flag Vessels are not competitive.
Really?   It's quite sad they are asking the National Academy of Science and the U.S. Coast Guard
to prepare reports regarding this lack of competitiveness.  I guess it will give some academic types something to do.

Here's the short version.  The commercial shipping companies  buy ships built in China, Korea, and places which have really cheap labor,  AND crew their ships with people from countries such as Bangladesh, India, Indonesia.      AND, these companies aren't even making money at the moment.   This should be all that is needed to say, but logic is rarely introduced in Washington, D.C.

click here for the link to U.S. Bill hr4005

Fall out from illegal price fixing U.S./Puerto Rico

In general, I have a problem with this whole idea that only U.S. Flag carriers can offer service between the mainland and Puerto Rico. That also applies to Hawaii and Alaska.

To add insult to injury, the carriers operating between the mainland and Puerto Rico got together to illegally fix their rates. Some people went to jail for this action.

This is the outcome for Horizon Lines, one of the carriers.

Horizon Lines was facing multiple class action lawsuits from customers who claimed financial damage because of the company’s allegedly unlawful conduct, after the US Department of Justice antitrust division’s investigation into price fixing between Horizon Lines and its trade rivals became known.

HORIZON Lines has agreed to pay $20m and freeze freight rates in its Puerto Rico trade lane for two years to settle a class action lawsuit brought by disgruntled customers.

Customers with Puerto Rico contracts with the Jones Act container line would have the option, in lieu of receiving cash, of a freeze on their base rates for two years beyond the expiration the contracts.

If I were a customer of Horizon, I would do 2 things.

1) Take the money, not the freeze on rates

2) Start looking for services from Europe and South America to Puerto Rico. Start shopping the rates from those origins, and use these to negotiate new rates with your carrier.

Who knows, maybe in the end it will be cheaper to source products from someplace other than the mainland U.S.

How many U.S. flag ships sail in the Indian Ocean?

The U.S. Coast Guard doesn't know how many U.S. Flag vessels are sailing in waters which are vulerable to pirate attacks.

They think it's probably from 1- 7 ships? And they can't figure it out?
How hard is that!!! What idiots.

If I had about 4 hours to kill I could figure it out.

From the JOC

Christensen said the Coast Guard still doesn’t know just how many U.S.-flag vessels are plying the Indian Ocean, although getting an accurate tally is top priority before Adm. Brian Salerno, assistant commandant for safety, security and stewardship, will testify Wednesday before the House Transportation and Infrastructure Committee.

“We’re probably looking at 13 or 14 companies that operate ships in that area,” Christensen said. Some ships are transiting the region, while others are in liner service along the coast of East Africa. “The data varies. It could be one ship, it could be seven ships. We’re trying to get a better handle on that right now.”