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Shipping Act Of 1984

963 Words4 Pages

The United States Shipping Act of 1984 The United States Shipping Act of 1984 is a legislation with regulations regarding ocean shipping to and from the United State of America. It contains pro-competition as well as anti-competition forces. This bill was later replaced by the Shipping Act of 1998.
The purposes of the Act are
Prevent discrimination with a minimum of government intervention and regulatory costs.
To provide an efficient and economic transportation system in the ocean commerce in the U.S. that is in harmony with international shipping practices.
To encourage the development of an economically sound and efficient United States-flag liner fleet capable of meeting national security needs.
Act History
The the Shipping …show more content…

Under this system, carriers that are serving the same markets are allowed to work together and set the freight rates for those markets3. These conferences are essential to understanding any sort of shipping history. An ocean carrier can be in more than one conference; it is very common for them to be in many conferences.
Increasing Competition
Under the Shipping Act of 1984, two provisions allowed for greater independence for ocean carriers and provided for greater competition as well1. According to the Federal Maritime Commission, before the 1984 Act, ocean carriers could not operate outside of the conference system. This, in effect, granted oligopolistic power to the conferences.
Also increasing competition is the ability of carriers to use service contracts. These are agreements between carriers that set the terms for shipments, including duration, volume, and service level. It was the belief of the FMC report that this could help foster rivalry between firms to provide the best service.
Problems with the …show more content…

There are still parts of the Shipping Act of 1984 that still exist today. This plays a vital role in the oceanic shipping industry, especially since oceanic shipping is the only method of transporting goods all over the world. With the world economy trending in a more and more global direction, oceanic shipping is only going to increase in importance.
In a direct sense, by adding on to laws like this it requires any carrier whom intends to ship goods to or from the United States will have to be advised by an expert on the laws in place. That would include any and all laws, in congruence with their amendments, which are still in effect.
The Shipping Act of 1984 is part of the rules that all oceanic carriers that operate in America, as well as those that deliver to the United States, have to live by. They influence everyday operations, which in turn can have an effect on what goes on further up and down the supply chain. It can affect business decisions on whether to expand or not as well as what markets to serve. It can even factor in to the packaging used for products as well as where to build manufacturing sites. This law, and maritime law in general, have a big impact on many decisions made by firms in today’s

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