# What This Bill Does

This bill creates a clear rule for what counts as a "reasonable" shipping rate for boats traveling between non-adjacent U.S. territories and the mainland—places like Hawaii, Alaska, Puerto Rico, and Guam. Right now, there's no specific definition of what "reasonable" means, which can lead to disputes between shipping companies and customers about whether prices are fair. This bill fixes that by saying a rate is reasonable if it stays within 10 percent of what international shipping rates are for similar routes, using an official index that the Federal Maritime Commission recognizes.

Think of it like this: if international shipping companies are charging around $1,000 to move cargo on a comparable route, then a domestic shipping company can charge anywhere from $900 to $1,100 and still be considered reasonable under this law. This gives everyone—businesses, consumers, and shipping companies—a clear benchmark to understand whether they're being charged fairly. For people living in Hawaii or Alaska, this could mean more predictable shipping costs for goods coming from the mainland, since companies can't charge wildly inflated prices without violating this standard.

The practical impact is mainly about transparency and fairness in shipping costs to remote U.S. locations. Businesses that rely on shipping goods to these areas will have a clearer understanding of what they should expect to pay, and they'll have a concrete standard to point to if they believe they're being overcharged. This could help keep prices more stable and competitive for residents and businesses in noncontiguous states and territories that depend heavily on ocean shipping.

Noncontiguous Shipping Reasonable Rate Act of 2024

Case, Ed

Noncontiguous Shipping Reasonable Rate Act of &nbsp;2024This bill provides that a rate for service in noncontiguous domestic ocean trade is reasonable if such rate is within 10% of a rate set by a comparable international ocean rate index recognized by the Federal Maritime Commission. (Under current law, a rate is required to be reasonable, and the Surface Transportation Board generally has the authority to determine whether certain rates are reasonable.)