Upcoming EO to Address Unfair Ocean, Rail Practices, Report Says
President Joe Biden plans to issue a wide-ranging executive order this week that will address anti-competitive practices, including those affecting traders in the ocean and rail shipping industries, The Wall Street Journal reported July 8. Although White House Press Secretary Jen Psaki said the order will address broad wage and labor issues, it will also call on the Federal Maritime Commission to help traders overcome challenges that have impeded the flow of goods for months, the report said.
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The order will specifically address ocean carriers that impose unfair detention and demurrage fees and form large alliances in the shipping market, which allows shipping companies to charge higher rates, the report said. Biden will ask the FMC to “crack down on such fees” and “take all other steps to protect American exporters from high fees,” the report said (see 2107010082). The FMC and the Justice Department are expected to sign a memorandum of understanding to improve cooperation on investigating those unfair charges, the report added. The FMC has been investigating those practices since last year (see 2102170060 and 2011200024). The FMC and Justice Department didn’t comment.
Biden also will ask the Surface Transportation Board to combat increasing consolidation practices, which has given railroads a monopoly over certain regions of the country, the report said. The order will specifically “encourage” the STB to move forward with a long-standing proposed rule on “reciprocal or competitive switching,” a practice whereby shippers served by a single railroad can request bids from a competing railroad, the report said.
The order also includes several directives for the U.S. Department of Agriculture, including a provision on labeling. The order would prohibit meat raised and slaughtered abroad from bearing “Product of the U.S.A.” labels, according to the report. The White House didn’t comment.