- Potential benefitCreates a clear numerical benchmark for assessing rate reasonableness in noncontiguous trade.
- Potential benefitAligns domestic noncontiguous rates with widely used international market price indicators.
- Potential benefitCould lower shipping costs where domestic rates exceed comparable international indexes.
Noncontiguous Shipping Reasonable Rate Act of 2024
Sponsor introductory remarks on measure. (CR E90-91)
This bill amends 49 U.S.C. 13701(d) to define a "reasonable" rate for noncontiguous domestic ocean trade as a rate within 10 percent of a rate set by a comparable international ocean rate index recognized by the Federal Maritime Commission. It ties the domestic benchmark for such routes to an international ocean rate index chosen or recognized by the FMC.
Progressives emphasize consumer protections and fairness
Relative to its intended legislative type, this bill directly and narrowly amends statutory law to define a legal standard (reasonable rate) with a clear numeric threshold, but it leaves several practical and procedural elements unspecified.
This bill amends 49 U.S.C. 13701(d) to define a "reasonable" rate for noncontiguous domestic ocean trade as a rate within 10 percent of a rate set by a comparable international ocean rate index recognized by the Federal Maritime Commission.
It ties the domestic benchmark for such routes to an international ocean rate index chosen or recognized by the FMC.
The change applies to noncontiguous domestic ocean trade (routes serving noncontiguous U.S. areas).
Targeted, low-cost statutory clarification with constituency appeal increases chances, but industry opposition and legislative priorities introduce uncertainty.
Relative to its intended legislative type, this bill directly and narrowly amends statutory law to define a legal standard (reasonable rate) with a clear numeric threshold, but it leaves several practical and procedural elements unspecified.
Progressives emphasize consumer protections and fairness
Who stands to gain, and who may push back.
These are examples from the analysis, not a ranked list of the most-affected groups.
- Potential burdenMay constrain carriers' pricing flexibility and reduce carrier revenues on thin routes.
- Potential burdenCould make service to low-density noncontiguous routes less economically viable for carriers.
- Potential burdenImposes an administrative duty on the FMC to identify and recognize comparable international indexes.
Why the argument around this bill splits.
Progressives emphasize consumer protections and fairness
Likely supportive as a consumer-protection measure that limits inflated shipping rates to noncontiguous U.S. areas by linking them to international benchmarks.
Views the 10% rule as a clear standard that can curb excessive pricing and improve fairness for residents and businesses in Alaska, Hawaii, and U.S. territories.
Cautious support conditional on implementation details.
Sees value in an objective benchmark to reduce dispute friction, but wants guardrails to avoid unintended harms to carriers and service reliability on thin routes.
Likely opposed as an unnecessary federal intervention in commercial pricing that constrains market flexibility and could harm carrier incentives to serve remote routes.
Views the measure as a regulatory price constraint tied to an externally chosen index.
The path through Congress.
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Still ahead
Targeted, low-cost statutory clarification with constituency appeal increases chances, but industry opposition and legislative priorities introduce uncertainty.
- No cost estimate or regulatory impact analysis included
- How FMC will identify or recognize 'comparable' international indexes
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Progressives emphasize consumer protections and fairness
Targeted, low-cost statutory clarification with constituency appeal increases chances, but industry opposition and legislative priorities i…
Relative to its intended legislative type, this bill directly and narrowly amends statutory law to define a legal standard (reasonable rate) with a clear numeric threshold, but it leaves several practical and procedural…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.