During a House Transportation Committee hearing in July, Rep. John Garamendi (D-CA) asked Rebecca Dye, Commissioner, Federal Maritime Commission, about congestion at ports.
00:00Well, you didn't do what I hoped you would do, which is really go through the detail, but you were kind to mention all of the work that's been done.
00:09We've actually come a very, very long way in providing the Commission with the tools it needs to deal with the reality of the international trade on the oceans.
00:21And the new piece of legislation, the Reauthorization Act, which Mr. Johnson is the lead on it this year, is going to further provide the necessary tools and strengthen the existing tools that the FMC needs to deal with a very rapidly changing environment.
00:45When we started, the 2022 bill really came about in part because of the pandemic and all of the changes that occurred there.
00:57The situation, that is the ocean shipping situation, remains very, very volatile.
01:05So the new legislation will provide additional tools.
01:09I want to commend the Commission for taking up the 2022 bill and using it to deal with practices that are simply not fair.
01:22It took a while to do it.
01:23We've had discussions about this in previous hearings.
01:26I remember one in California not so long ago that you were in the process of trying to understand the new law
01:33and then implement it in the regulatory processes using the rather difficult but necessary process of putting in place regulations and rules.
01:47I want to commend you for having done that.
01:49I see your colleague, Commissioner, back there who's interested in having done this piece of work.
01:57So we're going to carry forward.
01:59The new piece of legislation provides some additional clarity and additional strength to the work you do.
02:08Also authorizes a higher level of funding.
02:12And that's been talked about back and forth here.
02:14$49 million, $200,000.
02:17It looks like you're probably going to, if we can hold at $40 million in this environment, we ought to be quiet, take the money and run, and go back to work.
02:30But the future is out there.
02:32So if we can put in place an authorization of $49 million and then ramp it up over the years, ultimately in four years, to $57 million,
02:41you'll be able to bring back on board the necessary staff and deal with the very rapidly changing.
02:47The tariff issues are out there.
02:50They're going to have an effect.
02:51If you'd like to speak to that, Ms. Dye, I would urge you to do so.
02:55So be careful.
02:57You don't want to go jump into that snake pit.
03:04Just the effect that it may have on you.
03:06I talked and corresponded with several of our major ports recently.
03:16The reasons for port congestion are different.
03:20I've done now four major fact findings during periods of extreme dislocations.
03:32The results are always the same.
03:36Well, here's what we're...
03:37And so that's why I look to encouraging more port processes that are clear and predictable.
03:46But volatility is...
03:53We're going to be in a very volatile situation, certainly for the remainder of this year and perhaps on into next year,
04:00and it'll have some significant...
04:01Also, the continued consolidation.
04:04And as you said earlier, five of the six biggest are really government-controlled carriers.
04:10And so the FMC, the original reform, and then the new Reauthorization Act will provide you with additional tools to deal with that.
04:21I know that Mr. Johnson will undoubtedly add to this and provide more clarity along the way.
04:26But thank you for your service and your colleague who's there in the front row to the far...
04:36That would be to the far right or the far left, right down the middle.
04:42I yield back.
04:43Oh, one more, if I might.
04:44Yes, sir.
04:45I want to thank the chairman of the committee and the ranking member of the committee.
04:49The Reauthorization Act is your work as well as Mr. Johnson and mine.
04:54So thank you, both of you, for your support and for your insight and the development of the bill.
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