Several areas were addressed in a sweeping executive order signed by President Joe Biden July 9, including several that dealt with transportation issues.
One element of the order would ask the Justice Department to work with regulatory agencies against foreign-owned shipping alliances and monopolized rail routes that the administration believes have driven up shipping costs nationwide. “It doesn't sound right to most people that there are three shipping companies that are dominating the market and upping and increasing costs for suppliers, small businesses, people across the country,” White House press secretary Jen Psaki said. “And on domestic freight railroad, the executive order urges the Surface Transportation Board to allow shippers to more easily challenge inflated rates when there is no competition between routes.”
The American Association of Railroads says the coming competitive switching rule “would roll back the foundational market-driven principle that keeps the industry viable, reduce network fluidity, and ultimately undermine railroads' ability to serve customers at a time when freight demands have dramatically increased.”
Plus, the Federal Maritime Commission will be ordered to deal with the fees and surcharges of ocean carriers. It will be important to read this executive order carefully as impacted sectors and businesses will be doing the same. The expectation is that some of the actions called for in the order will most likely be challenged in court.