PROBLEM SOLVING—Supply Chain Edition
By Rep. Dusty Johnson
March 18, 2022
Supply chain problems are still plaguing producers, manufacturers, transporters, and consumers across America. These high prices and delayed shipments have been aggravated by steady increased demand. Consumer spending on e-commerce is expected to hit a record $1 trillion this year due to the shift of online shopping driven by the pandemic. This is a 13% increase from 2021.
Increased demand is placing more stress on our port system and this stress is complicated by unfair practices by foreign ocean carriers. These carriers are leaving American exports at our ports and going back to Asia with empty containers—leaving American products heading overseas, stuck. This new practice increased the largest ocean carrier profits by more than triple over the last year.
This dilemma is what led U.S. Rep. John Garamendi (D-CA) and I to introduce the Ocean Shipping Reform Act (OSRA), which passed the House overwhelmingly (364-60) in December 2021. As OSRA is still pending Senate consideration, members of the House are still speaking up to ensure its quick passage.
On Thursday, I held a roundtable discussion with some of my Problem Solvers Caucus colleagues—U.S. Reps. Jim Costa (D-CA), and David Valadao (R-CA)—and supply chain experts to discuss these problems and how OSRAwould help alleviate some of the supply chain delays felt across the country.
Last month, loaded exports from the Port of Los Angeles decreased 24.7%, while the number of imports increased. With the current state of the supply chain, manufacturers are expecting delays to continue into the first half of 2023. This is alarming.
Experts in American manufacturing and agriculture made it clear at this week’s roundtable: America’s economy and businesses need OSRA signed into law. There are solutions to some of the problems we’re seeing with our supply chain and foreign flagged ocean shippers – OSRA establishes rules of the road and puts America on an equal playing field.
The Senate will hold a markup on OSRA on March 22. Getting this bill across the finish line and signed by the President is crucial to begin easing the costly problems created by foreign carriers’ unfair shipping practices. My colleagues and I in the House will keep working alongside industry experts to ensure Senate passage of the House version of OSRA to strengthen our supply chain security.