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Column

Washington Watch

Maritime Antitrust Immunity in Crosshairs

By Jeff R. Vogel, Partner, Cozen O’Connor’s Transportation & Trade Group

While those in the Beltway continue to struggle to of- competition drive up prices and pro? ts. Biden used ocean fer solutions to U.S. supply chain capacity issues, it seems carriers as an example, stating, “We see what is happening apparent that policymakers have at least found their scape- with ocean carriers moving goods in and out of America. goat for these issues in the form of the maritime industry. During the pandemic, about half a dozen or less foreign-

A speci? c talking point during the State of Union Address, owned companies raised prices by as much as 1,000 percent a White House-endorsed agreement between the Federal and made record pro? ts.” The President followed these ob-

Maritime Commission (FMC) and Department of Justice servations by “announcing a crackdown on those compa- (DOJ), multiple pieces of legislation, and a vigorous hear- nies overcharging American businesses and consumers.” ing before the Senate Committee on Commerce, Science, It is unfortunate that President Biden did not instead focus and Transportation seem aimed at “? xing” the supply is- on the many positive aspects of the U.S. maritime industry sues solely through a focus on maritime antitrust immu- seen in recent years; for example, the fact that U.S. marine nity. Of course, without a more comprehensive solution terminals have continually operated without any shutdown focused on all aspects of supply chain stressors, to include throughout the entirety of the pandemic, ensuring that cargo warehousing and trucker shortages, these federal actions continues to ? ow to meet unprecedented consumer demand. may actually exacerbate the on-going supply chain issues. However, with (1) Americans facing longer wait times for foreign-produced consumer goods, (2) in? ation hitting U.S.

Biden addresses shipping competition taxpayers in the pocket in advance of midterm elections, and

If you regularly follow U.S. politics you will know that it (3) U.S. agricultural exporters placing pressure on the Ad- is a rarity to hear the maritime industry mentioned during ministration, ocean carriers proved to be an easy target.

a State of the Union Address. It is the unfortunate reality The President’s remarks followed on the heels of a “his- that our industry is not at the forefront of U.S. policymak- toric agreement” between the FMC and DOJ to “make sure ing, which is generally re? ected in the President’s annual that large ocean freight companies cannot take advantage address. Biden, however, deviated from tradition and in- of U.S. businesses and consumers.” As a February 28, 2022 cluded maritime competition in his speech in a clear ef- White House Fact Sheet (Lowering Prices and Leveling the fort to lay some of the blame for in? ation on the maritime Playing Field in Ocean Shipping) posits, ocean carriers “have industry. In addressing in? ation, Biden explained that, formed global alliances—groups of ocean carrier companies notwithstanding his general capitalist views, reductions in that work together—that now control 80% of global con- © Brad Nixon / Adobe Stock 16 | MN April 2022