FMC Head Describes Common 'Anti-Competitive' Shipping Practices From Foreign-Flagged Vessels

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During a House Transportation Committee hearing prior to the congressional recess, Rep. Addison McDowell (R-NC) asked Commissioner of the Federal Maritime Commission, Rebecca Dye, about "anti-competitive" shipping practices from foreign vessels.

Transcript

00:00I now recognize Mr. McDowell for five minutes of questioning.

00:03Thank you, Mr. Chairman, and thank you, Commissioner Dye, for being here.

00:06It's good to have another North Carolinian in the room today.

00:10But, Commissioner, you stated that the FMC's budget request for FY2026 is $40 million,

00:18which is level funding from fiscal year 25.

00:21Yes.

00:21And so within that budget, can you explain why you've set aside more funding for rent

00:27and security services and why your resources needs are different from last year?

00:34Well, the biggest change in this budget is that we are dedicating more resources to IT.

00:43We were in the position that we literally could not buy parts for our system

00:50because they weren't made anymore.

00:52And so we're pleased that we were able to devote more to those systems

00:59that will also benefit our shipping public.

01:04Sure.

01:06But you mean the $150,000?

01:09Mm-hmm.

01:10Well, security costs have gone up,

01:14and I think that's – I think they went up.

01:22Sure.

01:23The price has increased.

01:24Yeah.

01:24How does your commitment to carrying out the commission's core objectives

01:29play into your budgeting process?

01:33I support the $40 million.

01:38As I said, this is level funding.

01:40We didn't get cut, which I think speaks well for our mission and our approach.

01:51And I'm convinced that with our reorganizations and refocusing that we've done,

01:59that we will be fine.

02:00Can you explain further how the Ocean Shipping Reform Act changed the FMC's operations?

02:07Well, we had a couple of rulemakings to accomplish.

02:18Some of the reports, we have learned some very valuable information.

02:24And I support the bill.

02:28And I think that the Reform Act has helped us, especially with charge – the charge complaints

02:37have helped the shipping public deal with a lot of the charge complaints.

02:42Gentle lady, will you suspend – will you suspend – could you speak into the microphone

02:46just a little more, please?

02:49I'm hard of hearing, and I can't hear you.

02:51No, I understand.

02:52There you go.

02:53All right, sir.

02:57Well, there you are.

02:58Is that better?

02:59Well, good.

03:01I hear myself better, too.

03:05Just to – I'll ask you another question.

03:08But can – the commission has relatively broad authority to investigate unfavorable or anti-competitive

03:16shipping practices of foreign flag vessels.

03:19Generally, what are the most common scenarios that require the commission to intervene?

03:24Well, I think that by – I'm not able to talk a lot about the existing investigations.

03:36But those examples in my statement were good ones.

03:41Any time that the U.S. flag is disadvantaged, then I – as we have intervened for the Great

03:56Lakes carriers, certain carriers who were denied entry into the Spanish ports, and I support

04:08those, and this fact-finding authority has proved to be very valuable for us.

04:16So has the number of complaints increased or decreased since the Open Shipping – Ocean

04:24Shipping Reform Act of 22?

04:26Well, we – allowing the charge complaints has been very valuable.

04:32And it's allowed our shipping public an avenue to quickly resolve some charges with the FMC

04:47overseeing it.

04:48And that's been effective.

04:51Well, thank you, ma'am.

04:52And, Mr. Chairman, I yield back.

04:54Gentleman, you.

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