The Administration strongly supports increased competition and decreased
paperwork for the ocean shipping industry. The Administration has no
objection to Senate passage of the amendment in the nature of a substitute,
which we understand will be offered to S. 414. The Administration will
seek amendments in the House, however, to:
- Require public disclosure of essential contract terms established
collusively by two or more carriers.
- Prohibit conferences of carriers from adopting voluntary guidelines and
procedures for their members' service contracts.
- Eliminate undercharge penalties for non-conference carriers who charge
less than their published tariff rates, and for individual conference
members who charge less than the tariff rates published by the
- Clarify that section 5(c) of the bill, prohibiting anti-competitive
practices by parties to ocean carrier agreements, applies to conference
- Delete Section 401, which would extend eligibility for veteran's burial
and funeral benefits to certain U.S. merchant mariners. The Secretary
of Defense has adequate authority and administrative procedures under
existing law to make determinations regarding the status of civilian
groups who rendered service to the Armed Forces of the United States,
and has agreed to reconsider the cases of certain World War II merchant
- Delete Section 501, Title V, which restricts the Secretary of
Transportation from issuing Title XI loan guarantees or commitments to
certain vessel operators.
- Assure continued access by Federal agencies to information necessary
to assure compliance with statutory requirements regarding shipping
rates charged to Federal agencies by U.S. ocean carriers.
S. 414 would reduce receipts; therefore it is subject to the pay-as-you-go
requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990. OMB's
scoring estimates of this bill are currently under development.