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Shoring Up Water Transportation | Hawaii Reporter – Honolulu, Hawaii

Honolulu, Hawaii 2021-07-23 13:59:14 –

On July 9, 2021, President Biden promulgated the “Executive Order on Promoting Competition in the American Economy.” Other than the Business Press, the order is long and most of the time it focuses on instructing his agency to enforce existing laws in certain relevant books, rather than announcing new laws. An industry that did not have much media coverage.

One of the industries covered by this order is shipping by sea. In 2000, the largest 10 shipping companies dominated 12% of the market. Since then, shipping companies have been enthusiastic about mergers and acquisitions.Today, the 10 largest shipping companies 82% market share..

The Executive Order focuses on one issue in the industry, the accusation of “detention and delinquency.” The shipping company charges these charges when the goods arrive at the port, but for some reason the goods cannot be unloaded immediately. These charges can add up to hundreds of thousands of dollars. Leads to complaints from shippers and truck drivers And, of course, the consumer price of the goods transported will be higher.

To address this issue, the Executive Order directs the Federal Maritime Commission to “proactively enforce the prohibition of unjust and unreasonable practices in the context of detention and detention” under the existing Marine Transportation Act. doing. that’s all. It may help us here in Hawaii, but we can’t help wondering if they’re losing forest because of the trees here.

Here in Hawaii, we rely heavily on water transportation to carry all kinds of consumer goods, building materials and everything else that cannot be manufactured. As such, we all know what happens when we need to transport goods and people over the high seas, but there is not much competition between shipping companies.There was ongoing discussion about the need for Section 27 of 1920 Merchant Shipping ActAlso known as the Jones Law, and its cousin Passenger Ship Service Act of 1886.. These are laws whose main purpose is to limit competition. It is strange that neither law has ever been mentioned in an executive order.

It’s also strange that the state of Hawaii imposes a general sales tax on shipping rather than trying to make the transportation of people and freight easier and cheaper.so Previous article on this space, Pointed out that the federal government has banned taxation on state air transport. Of course, we denied and tried to tax air transport using a somewhat creative theory. As a result, the US Supreme Court was hit hard in 1983. Since then, I have accepted the fact that air transportation cannot be taxed. But we can and do so with other modes of transportation. Why do you do that? You can, so maybe; maybe because you can get some money by doing it. Given the reliance on transportation, it is doubtful whether it is a sound social policy.

Are we serious about making sure that the cost of living for all of us in Aloha is not exorbitant? If so, we give Congressional delegations relief from the cabotage law 80 and 135 years ago, find ways to regain competition between transportation companies, and apply state tax law to our stratospheric living expenses. An industry to help lower.

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Shoring Up Water Transportation | Hawaii Reporter
Source link Shoring Up Water Transportation | Hawaii Reporter

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