Federal Maritime Commission Reauthorization Act of 2025

The Federal Maritime Commission Reauthorization Act of 2025 represents a comprehensive modernization of U.S. maritime shipping regulation, significantly expanding the Federal Maritime Commission's oversight authority and creating new mechanisms for industry engagement and transparency. The legislation responds to evolving challenges in international ocean freight transportation by establishing three national advisory committees to provide structured input from key maritime sectors, enhancing investigative powers over shipping exchanges and market practices, and implementing robust reporting requirements to monitor trade imbalances and anticompetitive behavior. The bill fundamentally restructures the regulatory framework governing ocean carriers, marine terminal operators, and shipping exchanges while authorizing substantial funding increases through fiscal year 2029 to support these expanded responsibilities. By formalizing advisory mechanisms and strengthening enforcement capabilities, the legislation aims to improve the competitiveness, reliability, and efficiency of the international ocean freight delivery system while protecting American commercial interests from market manipulation and unfair practices.

The legislation establishes three national advisory committees under Title 46 of the United States Code: the National Shipper Advisory Committee, the National Port Advisory Committee consisting of thirteen members including five marine terminal operators, five port authorities, and three longshore and maritime labor representatives, and the National Ocean Carrier Advisory Committee comprising nine members with at least three ocean transportation intermediaries. These committees advise the Commission on policies affecting the competitiveness, reliability, and efficiency of international ocean freight delivery systems. The bill creates a new complaint mechanism under Section 40505 enabling shipping exchanges to report market manipulation or anticompetitive practices directly to the Federal Maritime Commission, which must investigate submitted information and report findings to Congressional committees. Section 40102 expands the definition of ocean common carriers to include entities with legal or financial connections to corporations in specific countries, broadening the Commission's regulatory jurisdiction. The legislation mandates that within one year of enactment, the Commission must issue an advance notice of proposed rulemaking on containerized ocean freight price indexes, followed by final rule publication within three years. New reporting requirements under Section 41110 require analysis of trade imbalances resulting from ocean carrier business practices and disclosure of Vessel-Operating Common Carrier Audit Program results. The bill authorizes appropriations of forty-nine million two hundred thousand dollars for fiscal year 2026, fifty-one million six hundred sixty thousand dollars for fiscal year 2027, fifty-four million two hundred forty-three thousand dollars for fiscal year 2028, and fifty-seven million sixteen thousand dollars for fiscal year 2029, representing a substantial increase from the thirty-two million eight hundred sixty-nine thousand dollars authorized in 2022.

The Federal Maritime Commission bears primary responsibility for implementing all provisions of this legislation, including appointing advisory committee members with particular expertise in maritime matters, conducting investigations of shipping exchange complaints, and promulgating required rulemakings on containerized freight indexes. The Commission must establish investigation protocols for submitted information regarding market manipulation and anticompetitive practices, with mandatory reporting of findings to the House Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation. Implementation requires coordination with the U.S. Trade Representative, Department of Commerce, and U.S. Customs and Border Protection for data collection and analysis of trade imbalances. The legislation imposes quarterly reporting requirements on maritime commerce practices and mandates detailed disclosure of carrier operations while limiting data reporting to prevent duplication. Committee members appointed by the Commission must possess specific expertise in maritime operations, though the legislation does not specify term lengths, compensation mechanisms, or detailed qualification criteria beyond general expertise requirements. The Commission must develop consistent investigation protocols for shipping exchange complaints and establish clear boundaries for identifying market manipulation, though exact enforcement mechanisms and specific penalties for identified violations are not fully specified in the statutory text.

The legislation directly benefits multiple maritime industry stakeholders by providing formal advisory mechanisms and enhanced transparency in shipping operations. Ocean carriers, marine terminal operators, port authorities, longshore and maritime labor organizations, ocean transportation intermediaries, and merchandise importers and exporters all gain structured channels for influencing maritime policy development. The advisory committees create unprecedented opportunities for industry input into Federal Maritime Commission decision-making processes, potentially improving regulatory outcomes through expert guidance on competitiveness, reliability, and efficiency issues. The funding authorization represents a seventy-three percent increase from 2022 levels to 2029, reflecting substantial expansion of the Commission's capabilities and administrative burden. Enhanced investigative powers and reporting requirements impose significant compliance obligations on shipping exchanges and ocean carriers, requiring detailed disclosure of business practices and submission to scrutiny for potential market manipulation. The legislation increases regulatory oversight of international ocean freight systems, potentially deterring anticompetitive behavior while creating additional administrative costs for regulated entities. Trade imbalance analysis and carrier audit program reporting provide Congress and stakeholders with improved visibility into maritime commerce dynamics, enabling more informed policy decisions. The expanded definition of ocean common carriers subjects additional entities to Commission jurisdiction, particularly those with connections to foreign corporations, broadening the regulatory reach and potential compliance universe.

The legislation operates under Congress's constitutional authority to regulate interstate and foreign commerce under Article I, Section 8 of the U.S. Constitution, specifically the Commerce Clause power over maritime activities. The bill amends multiple sections of Title 46 of the United States Code, which governs shipping and maritime commerce, building upon the existing statutory framework established by the Ocean Shipping Reform Act of 2022. The expanded definition of ocean common carriers and new investigative authorities represent significant modifications to federal maritime law, potentially affecting international trade relationships and treaty obligations. The legislation interfaces with the Trade Act of 1974 and Tariff Act of 1930, requiring coordination between maritime regulation and broader trade policy enforcement mechanisms. The Commission's enhanced investigative powers and complaint procedures create new administrative law obligations for shipping exchanges and carriers, subject to the Administrative Procedure Act's requirements for notice, comment, and judicial review. The advisory committee structure must comply with the Federal Advisory Committee Act's transparency and procedural requirements. The legislation does not explicitly address preemption of state or local maritime regulations, though federal maritime law generally occupies the field of international shipping regulation. Judicial review provisions follow standard administrative law frameworks, allowing affected parties to challenge Commission actions in federal court under the substantial evidence standard for factual determinations and arbitrary and capricious review for policy decisions.

The legislation presents several implementation challenges requiring careful attention during the regulatory development process. Defining precise boundaries for market manipulation and anticompetitive practices in shipping exchanges remains ambiguous, potentially creating uncertainty for regulated entities and inconsistent enforcement. The expanded definition of ocean common carriers to include entities with legal or financial connections to foreign corporations raises questions about extraterritorial application and potential conflicts with international trade agreements. Ensuring diverse and qualified advisory committee membership while balancing competing stakeholder interests poses practical difficulties, particularly given the requirement for specific maritime expertise across multiple industry segments. The substantial funding increases may face appropriations challenges in future fiscal years, potentially undermining implementation if Congress fails to provide authorized amounts. The three-year timeline for final rulemaking on containerized freight indexes may prove insufficient given the complexity of international shipping markets and the need for comprehensive stakeholder input. The legislation does not specify penalties for identified market manipulation or detailed enforcement mechanisms, leaving critical implementation details to future Commission rulemaking. Increased compliance burdens on shipping exchanges and ocean carriers may generate industry opposition and legal challenges, particularly regarding data collection requirements and investigative authority. The advisory committee structure risks capture by dominant industry players if appointment processes fail to ensure balanced representation across large and small entities. International carriers may challenge the expanded regulatory jurisdiction as discriminatory or inconsistent with bilateral shipping agreements. The quarterly reporting requirements and trade imbalance analysis impose significant administrative costs on both the Commission and regulated entities without clear metrics for measuring effectiveness or sunset provisions to evaluate continued necessity.