House Passes Ocean Shipping Reform Implementation Act to Guard Against China Data Monitoring

Kate Nishimura
·3 min read
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House lawmakers passed the Ocean Shipping Reform Implementation Act on Thursday with the ambition of safeguarding U.S. retailers’ access to reasonable shipping rates and ocean freight capacity—and shielding them from undue influence and data monitoring by the Chinese government.

Introduced by U.S. Representatives Dusty Johnson (R-S.D.) and John Garamendi (D-Ca.) last year, the bipartisan bill builds upon the Ocean Shipping Reform Act (OSRA), which was signed into law in June 2022. According to the new legislation’s sponsors, it will protect American business by preventing U.S. ports from employing China’s state-sponsored LOGINK software, which could potentially provide the country’s government with valuable insights into American shipping information, cargo valuations and routing data.

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It also empowers the Federal Maritime Commission (FMC) to probe foreign shipping exchanges, such as the Shanghai Shipping Exchange, for improper business practices, and authorizes the commission to streamline data standards for maritime freight logistics.

Referring to the bill as “OSRA 2.0,” Rep. Johnson said its passage “gets us one step closer to further securing our ocean shipping supply chains.”

“The FMC needs authority to crack down on China’s unfair shipping practices,” he added. “I hope the Senate considers our bill soon.”

“In 2022, Congress passed our landmark reform to the nation’s ocean shipping laws for the first time in nearly a quarter century to protect American businesses and consumers from price gouging by foreign-flagged ocean liners,” Rep. Garamendi added. “Congressman Johnson and I are committed to seeing that bipartisan 2022 law implemented fully to support American exporters and correct our nation’s longstanding trade imbalance with countries like China.”

“We are finally making free trade fair trade and stopping Chinese state-controlled companies from ripping off our country and gutting our manufacturing jobs,” he added. “Our implementation bill introduced today will finish the job.”

U.S. trade associations were quick to commend the bill’s passage in the House and push for consideration in the Senate.

“The Ocean Shipping Reform Implementation Act picks up where the Ocean Shipping Reform Act left off last Congress,” David French, senior vice president of government relations for the National Retail Federation (NRF), said. The 2022 legislation primarily sought to protect American industry from unreasonable fluctuations in ocean freight pricing and guarantee fair access to cargo space.

“Most importantly, the bill continues to focus on data standardization and collections that are critical to providing the full picture of what is happening in the supply chain and being able to address the next disruption,” French added.

According to Agriculture Transportation Coalition’s Executive Director, Peter Friedmann, the Ocean Shipping Reform Implementation Act “will advance national security which is fundamental to maintaining robust U.S. agriculture exports to global markets.”

Retail Industry Leaders Association (RILA) director of supply chain policy Sarah Gilmore said, “Retailers rely on global maritime shipping to deliver products for American consumers every day.” The group includes more than 200 retailers, manufacturers and suppliers from across the country.

“Though apt at navigating myriad supply chain challenges, retailers welcome the Ocean Shipping Reform Implementation Act to address long-standing issues in the ocean shipping industry, untangle supply chain congestion, and remove barriers to the movement of goods,” she added. “We appreciate the House prioritizing this legislation and encourage the Senate to follow suit, recognizing its importance in strengthening U.S. supply chains.”