AGOTC BACKS ELIMINATION OF OCEAN CARRIER ANTITRUST IMMUNITY

AGOTC BACKS ELIMINATION OF OCEAN CARRIER ANTITRUST IMMUNITY    The Agriculture Ocean Transportation Coalition wants Congress to abolish ocean carrier antitrust immunity.
   The coalition, which represents thousands of small, medium and large U.S. agriculture exporters, supports the passage of The Free Market Antitrust Immunity Reform Act (H.R. 3138). The legislation was introduced by Congressman Henry J. Hyde, R-Ill., last year to eliminate ocean carrier antitrust immunity in the Ocean Shipping Reform Act.
   Antitrust immunity allows carriers to collectively discuss and establish prices for ocean transportation. The AgOTC says this places smaller packers, growers and processors at a competitive disadvantage when negotiating rates and services with carriers.
   “The cost of transportation and the quality of service often determines whether our products will be purchased by foreign buyers, or whether those buyers will turn to other sources of raw processed foods and fiber,” the AgOTC said.
   The group said that recent studies show that carrier antitrust immunity raises freight rates for U.S. agricultural shippers about 11 percent higher than what they should pay.
   In contrast to carrier antitrust immunity, the AgOTC believes that taxpayers and the public benefit from antitrust immunity presently accorded to port authorities. The group said that this should be maintained, as H.R. 3138 would do.