Date: 1998-04-21
Speaker: ADEAR SENATOR BREAUX (democrat)
Chamber: S

We wish to convey April 20. 1998. to you our full support for the managers Hon. BOB GRAHAM. floor amendment for S. 414. The Ocean ShipU.S. Senator. Senate Office Building. Washing- ping Reform Act of 1998. without additional ton. DC. amendments. It represents a carefully craftRe: S. 414: The "Gorton Amendment"-Votes ed compromise serving a broad cross section YES for Small Business and US Exports of the maritime industry including importDEAR SENATOR GRAHAM: On Tuesday morn- ers/exporters. ports. carriers. and labor. ing S. 414 will come before the Senate and We understand that Senator Slade Gorton Senator Slade Gorton will offer an amend- plans to offer an amendment to S. 414 manment on behalf of small exporters and ship- agers floor amendment that would alter curpers. Members of the New York/New Jersey rent law and allow nonvessel operating comForeign Freight Forwarders & Brokers Asso- mon carriers (NVOCCs) to offer confidential ciation. Inc. encourage you to vote YES on service contracts directly to the proprietary the Gorton Amendment and help make the owners of the cargo. Some interests have arOcean Shipping Reform Act true "reform" gued that the retention of current law would for small business and US exports. disadvantage smaller volume shippers who S. 414 is about international trade. The might dtilize NVOCCs in order to obtain Gorton Amendment is about whether the competitive rates with larger volume shipsmall guy is going to benefit from this legis- pers. lation or suffer as a result of special inter- However. the perceived benefits that ests. Voting YES on the Gorton Amendment smaller shippers might receive from the abilwill help to protect in the global commerce ity of NVOCCs to enter into service conof the 21st Century the 70% of U.S. exports tracts with their customers is largely misthat small shippers produce. The Gorton understood. Under current law. NVOCCs are Amendment helps ensure that the small allowed to enter into service contracts with shipper and business will be able to compete carriers and this can generate a significant by enabling the freight consolidator cost savings that is passed onto shippers. (NVOCC). who works on behalf of smaller This would not change under the latest vershippers. to sign confidential contracts with sion of S. 414. NVOCCs would however benethe shipperclient. Without the Gorton fit from the provisions allowing confidentialAmendment. large multinational compa- ity of certain terms in their contracts with nies. that dont use NVOCCs. would be able carriers. Smaller volume.shippers would also have the option to consolidate their cargoes by joining shippers associations who may then negotiate lower rates as larger volume shippers. Therefore. we urge you to oppose the Gorton amendment. This amerdment is unnecessary and would kill legislation which has been carefully constructed by the bills sponsors to make U.S. ocean shipping law compatible with the rest of the transportation industry and which will benefit the U.S. economy. Sincerely. American Association of Port Authorities. APL. Limited. Council of European and Japanese Shipowners Associations. Crowley Maritime Corporation. Internal Longshoremens Association. International Longshoremens & Warehousemens Union. The Chamber of Shipping of America. The National Industrial Transportation League. SeaLand Service. Inc.. Transportation Trades Department. AFLCIO.