Washington, D.C. — The following are opening remarks, as prepared for delivery, from Ranking Member of the House Committee on Transportation and Infrastructure Rick Larsen (D-WA) and Ranking Member of the Subcommittee on Coast Guard and Maritime Transportation Salud Carbajal (D-CA) during today’s hearing titled, “Future of United States Maritime Part 1: Review of Fiscal Year 2026 Federal Maritime Commission Budget Request.”
Video of Ranking Members Larsen’s and Carbajal’s opening statements can be found here and here.
More information on the hearing can be found here.
Ranking Member Larsen:
Mr. Chairman, thank you for scheduling this afternoon’s hearing to review the Fiscal Year 2026 budget request for the Federal Maritime Commission.
While a small agency, the Federal Maritime Commission has an important role. It protects shippers and consumers by monitoring and taking action against unfair and uncompetitive foreign shipping practices.
Ocean shipping is dominated by foreign shipping companies with U.S.-flagged operations comprising less than 2% of imports and exports. The supply chain crisis associated with the pandemic and ongoing international conflicts demonstrate the need for robust oversight to ensure a fair playing field.
Fluctuations in service and pricing are normal, but it is the role of the FMC to ensure that those fluctuations are justified in a competitive market.
The President’s fiscal year 2026 budget request for the Federal Maritime Commission—is flat. I look forward to hearing from our witness how the agency can ensure fair shipping with flat funding.
The FMC has begun to use its new investigative and prosecutorial authorities provided under the Ocean Shipping Reform Act of 2022. I look forward to hearing an update on the implementation of these new authorities.
Since passage of the Ocean Shipping Reform Act of 2022, container prices have fallen and queues at ports have evaporated.
The FMC has also improved its reporting process leading to an increase in charge complaints from American businesses. One of which resulted in a $2 million settlement over findings that the shipping company knowingly and willfully violated the Shipping Act.
This means lower costs for consumers thanks to quick action by Congress and President Biden.
These are positive trends. But, I am concerned this will be short lived if the Administration neglects the FMC. The FMC has lost nearly 20% of its workforce due to the Deferred Resignation Program and the ongoing hiring freeze. This means fewer investigators finding unfair shipping practices and fewer attorneys prosecuting cases.
The FMC is also operating without two Commissioners and there’s currently no chair. As a bipartisan, independent agency, the FMC’s critical functions cannot be overstated.
I look forward to hearing from Commissioner Dye about ways to ensure a fair and competitive maritime supply chain and to build upon the success we have seen so far.
I yield back.
Ranking Member Carbajal:
Thank you, Chair Ezell, for scheduling today’s hearing on the “Future of United States Maritime Part 1: Review of Fiscal Year 2026 Federal Maritime Commission Budget Request.”
I look forward to hearing from Commissioner Dye of the Federal Maritime Commission, or FMC, on the President’s budget request and their agency priorities for the upcoming year.
In 2022, we worked hard to pass the Ocean Shipping Reform Act out of this subcommittee which subsequently became law. I am particularly eager to hear about its implementation, and how its new authorities have helped maintain a resilient and efficient supply chain.
As the federal agency tasked with ensuring fairness for American shippers, carriers, and consumers, the FMC plays a crucial role in safeguarding transparency and enforcing equitable maritime commerce. According to the U.N., over 80% of world trade volume is carried over the ocean. In 2024, over 11% of the total U.S. G.D.P. came from ocean shipping – which translates into over $4 Trillion dollars.
In a global economy, the FMC is often our only referee for a fair shipping market.
We know from recent history that weaknesses in our supply chain were exposed as landside port congestion and unfair shipping practices by foreign ocean carriers led to backlogs and price increases. This contributed to higher prices for Americans on almost everything they buy.
The reforms in our bill strengthened the FMC’s authority to investigate unfair fees and help facilitate the efficient movement of cargo through U.S. ports. I am proud to say that since the passage of the OSRA, vessel congestion at ports has decreased and in the three years since the enactment in 2022, more than $5.8 million in fees have been waived or refunded in undue charges by carriers.
In May of this year, the FMC launched an investigation into flagging practices of foreign governments, otherwise known as “Flags of Convenience.” These practices severely undermine flag states that employ rigorous standards, ensure fair pay, and provide basic human rights. I hope that the FMC will leverage every authority they have to address this systemic global problem.
Further, the FMC is currently undertaking a rulemaking aimed at ensuring that exporters are given fair access to cargo space. It is important that the FMC is sufficiently funded so that it can properly carry out these reforms, which will greatly benefit American businesses and the American consumer.
While I am pleased to hear about all the success that FMC has been having, I would be remiss if I did not mention my growing concern with the shortage of commissioners, the loss of employees to the deferred resignation program, and the lack of a Chair of the agency. The absence of leadership threatens the positive momentum they have had so far.
I look forward to a robust discussion about how the FMCs ongoing actions will ensure stronger maritime industry.
I yield back.
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