This time last year, as US ports were moving more cargo than ever, the seaport industry led the call for a strengthened and better-funded US Federal Maritime Commission (FMC) to increase trust and reliability in the system.
Congress funds the FMC annually at $29 million, but the industry it oversees generates a total (direct and indirect) economic value of more than $5.5 trillion. The nation deserved a rightsizing of attention in its supply chain.
The Ocean Shipping Reform Act of 2022 was a solid step forward. Congress recognized during the debate, however, that port and terminal dwell fees are instrumental for keeping “baggage from piling on the carousel.” AAPA strongly encourages that the FMC respects the principle of ‘fluidity incentives’ as the agency modernizes the proverbial rules of the road for ocean transport business.
Seaports work with the government on other ideas to improve the supply chain — for example, by incentivizing the timely pickup and return of cargo and assets, such as containers and chassis. Similarly, allowing for extended hours of operations and improved data exchange between transport modes and users will assist in strengthening maritime operations.
Across the federal government, in the face of the old adage that “freight doesn’t vote,” there is a palpable and exciting improvement in how policymakers support the freight mobility system, including through the creation of the nascent Office of Multimodal Freight Infrastructure and Policy within the US Department of Transportation — and through hundreds of millions of dollars in port infrastructure modernizations. AAPA fully supports this added capacity and focus within the US Department of Transportation and looks forward to its implementation.