Strengthening FMC Oversight: Reauthorization Act Passes House and Moves to Senate

The U.S. House of Representatives passed the Federal Maritime Commission Reauthorization Act of 2025, H.R. 4183 (the Reauthorization) on Dec. 16, 2025. Rep. Dusty Johnson (R-S.D.) introduced the Reauthorization bill to bolster the U.S. maritime sector and specifically the Federal Maritime Commission (FMC), continuing the government's efforts that began with the Ocean Shipping Reform Act of 2022 (OSRA 2022). (See Holland & Knight's previous "The Commission" blog post, "House Reviews FMC's FY 2026 Budget Request Amid Leadership and Workforce Transitions," July 23, 2025.) The Reauthorization is cosponsored by Reps. Mike Ezell (R-Miss.), John Garamendi (D-Calif.) and Salud Carbajal (D-Calif.).

Beyond extending the FMC's funding through 2029, the Reauthorization would also introduce significant additions to the agency's mandate. These new provisions are designed to give the FMC greater power to execute its core mission of regulating the international ocean transportation system. Specifically, the substantive changes include:

• Expanding the Definition of a Controlled Carrier. Section 5(a)(4)(2)(ii)-(iii) of the Reauthorization would amend 46 U.S.C. Section 40102(9) to broaden the definition of "Controlled Carriers," which are subject to rate review standards to protect against unfair competition. The current definition focuses on direct or indirect ownership or control of an ocean common carrier by a government (or government agency or a public or private person controlled by a government). Under the proposed definition, a Controlled Carrier would also include any ocean common carrier that is directly or indirectly owned or controlled by a corporation (or otherwise related legally or financially (other than a minority relationship or investment), that is "based in, headquartered in, or significantly linked to a country" 1) identified as a nonmarket economy under the Tariff Act of 1930, 2) a country on the U.S. Trade Representative (USTR) priority watch list or 3) a country otherwise subject to USTR monitoring. The Reauthorization would also repeal existing exemptions. The House Committee on Transportation & Infrastructure (House T&I Committee) noted that one of its concerns was the extent to which governments like the People's Republic of China are involved in companies and networks that deliver containerized cargo to the United States. Rept. 119-401.
• Refining Shipping Exchange Registry Legislation. With the passage of OSRA 2022, Congress granted the FMC a new mandate to regulate "shipping exchange registries," defined as "a platform (digital, over-the-counter or otherwise) that connects shippers with common carriers for the purpose of entering into underlying agreements or contracts for the transport of cargo, by vessel or other modes of transportation." 46 U.S.C. Section 40504(e). In the House T&I Committee Report on the Reauthorization, the committee noted its "[c]oncerns about potentially nefarious and anticompetitive behavior by the People's Republic of China are not limited to support for shipping companies," raising particular concerns about the Shanghai Shipping Exchange, which prompted the expansion of the Shipping Exchange Registry legislation in the Reauthorization. Rept. 119-401. The Reauthorization would further refine the regulatory authority granted by OSRA 2022 by adding a provision on "Complaints Against Shipping Exchanges" (Section 6(b) of the Reauthorization, to be codified at 46 U.S.C. Section 40505) and eliminating previously enacted exceptions from regulation. Additionally, the Reauthorization would extend the FMC's rulemaking timeline for shipping exchange registries, changing it from three years after OSRA 2022's enactment to two years following the enactment of the Reauthorization.
• Establishing a National Port Advisory Committee and a National Ocean Carrier Advisory Committee. In the passage of OSRA 2022, Congress established a Shipper Advisory Committee (46 U.S.C. Section 42502) to advise the FMC on policies related to the "competitiveness, reliability, integrity, and fairness of the international ocean freight delivery system." The Reauthorization would task the FMC with establishing port and ocean carrier counterparts to the advisory committees, in addition to the existing Shipper Advisory Committee. The National Port Advisory Committee would comprise 13 members, with mandated representation from marine terminal operators, port authorities and longshore/maritime labor organizations. The National Ocean Carrier Advisory Committee would comprise nine members, with mandated representation from ocean carriers and at least three ocean transportation intermediaries. By expanding the Advisory Committees to ports and carriers, the bill would extend the capacity for industry engagement in an advisory capacity to a broader range of industry stakeholders. The House T&I Committee report also noted "that ports exist in locations outside the seacoasts" and pressed the FMC to take action "to ensure ports from inland rivers and United States territories are aware of the opportunity to serve on the National Port Advisory Committee," with particular interest in the Indo-Pacific region. Rept. 119-401.

The Reauthorization bill now advances to the U.S. Senate for a vote, although a timeline for its consideration has not yet been established. Holland & Knight will continue to closely monitor the progress of this legislation in the Senate, as well as developments at the FMC, and will provide timely updates as new information becomes available.