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This bill sets a clear standard for what counts as a “reasonable” shipping rate for domestic ocean trade to noncontiguous parts of the United States. In simple terms, it says a rate will be considered reasonable if it is within 10% of a comparable international ocean freight rate index that is recognized by the Federal Maritime Commission. The goal is to create a more definite benchmark for judging shipping prices in these routes.
- It changes federal shipping law to add a specific definition of “reasonable rate” for noncontiguous domestic ocean trade.
- The rate must fall within 10% of a comparable international ocean rate index.
- The Federal Maritime Commission must recognize the index used for comparison.
- The bill is intended to give a clearer standard for shipping rates on routes that serve places not connected to the mainland by land.
Official Summaries
Noncontiguous Shipping Reasonable Rate Act of 2024
This bill provides that a rate for service in noncontiguous domestic ocean trade is reasonable if such rate is within 10% of a rate set by a comparable international ocean rate index recognized by the Federal Maritime Commission. (Under current law, a rate is required to be reasonable, and the Surface Transportation Board generally has the authority to determine whether certain rates are reasonable.)
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 666 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 666
To provide a definition of reasonable rate for noncontiguous domestic
ocean trade, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Mr. Case (for himself and Mr. Moylan) introduced the following bill;
which was referred to the Committee on Transportation and
Infrastructure
_______________________________________________________________________
A BILL
To provide a definition of reasonable rate for noncontiguous domestic
ocean trade, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Noncontiguous Shipping Reasonable
Rate Act of 2024''.
SEC. 2. NONCONTIGUOUS DOMESTIC OCEAN TRADE.
Section 13701(d) of title 49, United States Code, is amended by
striking paragraph (1) and inserting the following new paragraph:
``(1) In general.--For purposes of this section, a rate is
reasonable if such rate is within 10 percent of a rate set by a
comparable international ocean rate index recognized by the
Federal Maritime Commission.''.
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