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Clinton-Era DEREGULATION, Consolidation Is Responsible For The Supply Chain Crisishttps://www.youtube.com/watch?v=BdnLA1CywXYThe 1998 Ocean Shipping Reform Act resulted in the consolidation of the shipping industry. An elimination of small & medium sized ship & end of American owned shipping companies & enlargement of port that exclusively handled giant ships & elimination of smaller ports.https://mattstoller.substack.com/p/too-big-to-sail-how-a-leg...Today I’m writing about supply chain disruptions at the ports, and the Bill Clinton-era law(Ocean Shipping Reform Act) that caused it.The OSRA eliminated a system that had kept shipping relatively stable through booms and busts. Prior to the OSRA, the U.S. regulated ocean shipping as a public utility, based on the Shipping Act of 1916.The key change they settled on was to eliminate the transparency provisions of the Shipping Act by allowing secret deals between ocean carriers and shippers, while retaining the antitrust exemption. Now carriers could discriminate against smaller exporters or importers, they could retaliate against anyone who complained or used a competitor, they could price-gouge without anyone knowing about it, and antitrust enforcers and regulators basically had to stand aside.Small shippers were apoplectic and complained about that the act: "guarantees that the real marketplace in ocean shipping will be completely confidential shipping contracts to which no regulatory or legal constraints will apply.”Longshoremen similarly attacked deregulation and complain that "“large carriers and huge multi-national shippers easily and purposefully agree to bypass entire port communities in an attempt to monopolize the market and inflate profits.” The small would became prey for the big.
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