AAFA Says FMC Rulemaking, Infrastructure Not Fast Enough to Deal With Shipping Crisis

The American Apparel and Footwear Association asked the Biden administration to bring businesses, shippers and port authorities to the table to find short-term solutions to the shipping crisis.

"Without immediate action, and immediate relief, this dire situation will derail America’s fragile economic recovery now, hitting American small businesses particularly hard. The rising inflation numbers drive home this looming threat," AAFA CEO Steve Lamar wrote July 15. "The bipartisan infrastructure package is an important long-term investment, and we are pleased to partner with you and so many other stakeholders to see this legislation passed now so we can set our economy on a path of long-term growth. But even if quickly approved and signed into law, this [bipartisan] infrastructure package won’t address the immediate shipping crisis."

He said that the July 9 executive order that encourages the Federal Maritime Commission to consider further rulemaking and receive recommendations from the National Shippers Advisory Committee on detention and demurrage helps the U.S. with forward progress. But he cautioned that since "rulemaking takes time and the membership of the NSAC is not even in place yet," other enforcement action is needed right now.

Lamar said that getting clothes and shoes to stores ahead of back-to-school and holiday shopping seasons is not predictable because of stranded container ships and is also becoming cost-prohibitive with spiking freight costs. "[W]ith costs spiraling out of control, companies, particularly small businesses, need help now. I urge you to take strides to offset these costs by immediately removing the biggest single cost on our industry -- tariffs, including by ending the U.S. government’s punitive Section 301 tariffs on China and renewing the Generalized System of Preferences (GSP) program and the Miscellaneous Tariff Bill (MTB). "