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Saturday, Aug. 8, 1998

Shipping bill in Congress would help U.S. vessels

Measure would let importers and exporters keep their contracts with shippers secret

By CARLA BASS
Scripps Howard News Service

   WASHINGTON -- Domestic ocean shippers moved closer this week to further deregulation that they say will help them compete internationally.
   The House passed the Ocean Shipping Reform Act Tuesday which, among other changes, would let importers and exporters keep their contracts with individual ship owners a secret. Operators have said that requirements to disclose the terms of their contracts with larger shippers give too much information to overseas competitors.
   ``This brings U.S. shippers and carriers on to the same playing field,'' said Edward Emmett, president of the National Industrial Transportation League.
   His organization is part of a coalition that has helped piece together this legislation, a process that has taken four years.
   The bill, sponsored by Sen. Kay Bailey Hutchison, R-Texas, also maintains an antitrust immunity for the shipping industry, which can set prices as cartels under the watch of the Federal Maritime Commission.
   The House removed a provision from the bill that would have provided veterans death and burial benefits to a small group of living World War II-era members of the merchant marine. This change means that the bill must now go back to the Senate for consideration.
   The legislation only applies to operators who ship goods in containers, and not to bulk goods such as oil or wheat. There were about 13.2 million containers shipped in 1995, the most recent year that figures were available from the Association of American Port Authorities.
   Port of Corpus Christi officials said that they have not issued a formal statement concerning the new legislation. But the port has expressed support before.
   Emmett said Corpus Christi's was first port to come out in favor of this bill, testifying in favor of it two years ago.
   Several ports opposed the legislation until the last few months.
   ``It was essentially a compromise legislation,'' said Kurt Nagle, president of the Association of American Port Authorities. ``The earlier version had been a far-reaching deregulation that not all ports were comfortable with or supportive of. The legislation now is a balanced approach.''

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