Ocean Shipping Antitrust Enforcement Act (OSAEA): What It Is & How It Could Impact Shippers

Table of Contents#

What Is the Ocean Shipping Antitrust Enforcement Act (OSAEA)? 1.1 Origins & Legislative Background 1.2 Core Objectives of the Act
Key Provisions of OSAEA 2.1 Strengthened Antitrust Enforcement Authority 2.2 Mandatory Transparency Requirements 2.3 Targeted Protections for Small Shippers 2.4 Enhanced Penalties for Violations
OSAEA vs. Previous Ocean Shipping Regulations: Key Differences 3.1 Comparison to the Ocean Shipping Reform Act (OSRA) 2022 3.2 Focus on Antitrust vs. General Regulatory Reform
Impact of OSAEA on Industry Stakeholders 4.1 Small and Medium-Sized Shippers 4.2 Ocean Carriers and Alliances 4.3 Global Supply Chains
Criticisms and Debates 5.1 Carrier Concerns Over Regulatory Burden 5.2 Questions About Enforcement Capacity
Looking Ahead: The Future of Ocean Shipping Antitrust
References

1. What Is the Ocean Shipping Antitrust Enforcement Act (OSAEA)?#

1.1 Origins & Legislative Background#

The push for OSAEA began in 2021, as U.S. shippers grappled with a crisis in ocean shipping. Freight rates for container shipments from Asia to the U.S. West Coast surged from around $1,500 in 2020 to over$ 20,000 by late 2021—a 1,200% increase. Major ocean carriers were accused of colluding to limit capacity, raise prices, and prioritize large corporate clients over smaller businesses.

Historically, ocean carriers enjoyed limited antitrust immunity under the U.S. Shipping Act of 1984, which allowed them to form alliances and engage in certain collaborative practices without facing legal scrutiny. However, this immunity was intended to promote efficient shipping operations, not to enable price-gouging or anti-competitive behavior.

In response to widespread complaints, lawmakers introduced the Ocean Shipping Antitrust Enforcement Act in the U.S. Congress. The bill aimed to narrow the scope of antitrust exemptions for ocean carriers, strengthen the authority of the Department of Justice (DOJ) and Federal Maritime Commission (FMC) to investigate violations, and create protections for small shippers. While an earlier version of OSAEA was considered alongside the Ocean Shipping Reform Act of 2022—which President Biden signed into law on June 16, 2022—the standalone OSAEA bill was reintroduced as H.R. 1696 in the 118th Congress (2023) by Rep. Jim Costa and referred to the House Judiciary and Transportation committees. As of 2026, OSAEA has not been enacted into law, though its core goal of repealing antitrust exemptions for ocean carriers continues to be the subject of Congressional hearings and bipartisan advocacy.

1.2 Core Objectives of the Act#

OSAEA was crafted with four primary goals in mind:

Restore Fair Competition: Eliminate anti-competitive practices like price-fixing, capacity manipulation, and collusion among ocean carriers and alliances.
Protect Vulnerable Shippers: Level the playing field for small and medium-sized businesses that lacked the negotiating power to push back against unfair carrier practices.
Increase Transparency: Ensure shippers have access to clear, upfront information about pricing, fees, and service terms to make informed decisions.
Strengthen Enforcement: Give regulators the tools and resources needed to hold carriers accountable for violating antitrust laws.

2. Key Provisions of OSAEA#

The act includes several critical provisions designed to address the root causes of anti-competitive behavior in ocean shipping:

2.1 Strengthened Antitrust Enforcement Authority#

OSAEA narrows the antitrust exemptions granted to ocean carriers under the Shipping Act of 1984. Previously, carriers could collude on rates, capacity allocation, and service schedules through alliances without facing DOJ scrutiny. Now, such practices are only exempt if they are proven to benefit consumers and not harm competition.

The act also enhances collaboration between the DOJ and FMC. The FMC, which oversees ocean shipping regulations, can now refer suspected antitrust violations directly to the DOJ for criminal prosecution. Additionally, the DOJ has the authority to investigate carrier alliances for anti-competitive behavior, even if the alliances are registered with the FMC.

2.2 Mandatory Transparency Requirements#

OSAEA mandates that ocean carriers disclose detailed pricing information to shippers and regulators, including:

Upfront disclosure of all surcharges, fees, and contract terms, eliminating hidden costs that often caught small shippers off guard.
Regular reports to the FMC on capacity levels, service schedules, and rate changes, allowing regulators to monitor for potential market manipulation.
Publicly available data on carrier performance, including on-time delivery rates and container availability, to help shippers choose reliable providers.

2.3 Targeted Protections for Small Shippers#

Small shippers were disproportionately affected by post-pandemic shipping chaos, as carriers prioritized larger clients with more volume. OSAEA addresses this by:

Establishing a dedicated complaint portal at the FMC for small shippers (defined as those with annual freight expenditures under $5 million) to report unfair practices. The FMC is required to prioritize these complaints and provide assistance to help shippers navigate the resolution process.
Prohibiting carriers from denying service or offering preferential treatment to small shippers based on their size. Carriers must also ensure that small shippers have equal access to containers and competitive pricing.

2.4 Enhanced Penalties for Violations#

To deter anti-competitive behavior, OSAEA increases the penalties for antitrust violations:

Carriers found guilty of price-fixing or collusion can face fines of up to $10 million per violation, or three times the amount of ill-gotten gains, whichever is higher.
Individual executives involved in violations can face criminal penalties, including fines and imprisonment.
Shippers who have been harmed by anti-competitive practices can file civil lawsuits against carriers to recover damages, providing an additional layer of accountability.

3. OSAEA vs. Previous Ocean Shipping Regulations: Key Differences#

OSAEA is often paired with the Ocean Shipping Reform Act (OSRA) 2022, but the two acts focus on distinct aspects of ocean shipping regulation:

3.1 Comparison to the Ocean Shipping Reform Act (OSRA) 2022#

OSRA 2022 is a broader regulatory reform that addresses operational issues like detention and demurrage fees, container availability, and carrier service obligations. Key provisions of OSRA include requiring carriers to return empty containers to U.S. ports and giving the FMC the authority to challenge unfair detention fees.

In contrast, OSAEA is specifically focused on antitrust enforcement. While OSRA targets individual unfair practices, OSAEA tackles systemic issues like carrier collusion and market power abuse that lead to higher prices and reduced competition. Together, the two acts form a comprehensive framework to reform the ocean shipping industry.

3.2 Focus on Antitrust vs. General Regulatory Reform#

Prior to OSAEA, most ocean shipping regulations focused on operational standards and dispute resolution. OSAEA shifts the focus to competition policy, ensuring that carriers cannot use their market dominance to exploit shippers. This is a significant departure from previous laws, which prioritized industry efficiency over consumer protection.

The landscape of carrier alliances has also shifted significantly. The 2M Alliance between Maersk and MSC dissolved in January 2025, with Maersk forming a new Gemini partnership with Hapag-Lloyd and MSC choosing to operate independently. The Ocean Alliance has extended its agreement, while THE Alliance restructured. These changes, combined with continued market concentration—the top four carriers now control roughly 60% of the global container market—have intensified calls for stronger antitrust oversight.

4. Impact of OSAEA on Industry Stakeholders#

OSAEA has far-reaching implications for all players in the ocean shipping ecosystem:

4.1 Small and Medium-Sized Shippers#

For SMEs, OSAEA is a game-changer. The act provides greater negotiating power, as carriers can no longer collude to set artificially high rates. The dedicated complaint portal and anti-preferential treatment rules ensure that small shippers have equal access to containers and fair pricing. This stability allows SMEs to better plan their supply chains and budget for freight costs, reducing the risk of unexpected expenses that could harm their bottom line.

4.2 Ocean Carriers and Alliances#

Carriers will need to adapt to stricter antitrust rules. They must now ensure that their alliance activities do not violate competition laws, which may require restructuring some collaborative practices. The transparency requirements also mean carriers have to be more open about their pricing and operations, which could reduce their ability to maximize profits through hidden fees. However, the act may also benefit carriers by fostering a more stable market, reducing the volatility in rates that characterized the post-pandemic period.

4.3 Global Supply Chains#

By promoting fair competition and stable pricing, OSAEA helps to make global supply chains more resilient. When shippers can rely on predictable freight costs and reliable service, they can better manage inventory levels and meet customer demand. This reduces the risk of supply chain disruptions that can affect businesses across industries, from retail to manufacturing.

5. Criticisms and Debates#

While OSAEA has broad support from shippers and consumer groups, it has also faced criticism from some quarters:

5.1 Carrier Concerns Over Regulatory Burden#

Ocean carriers argue that the stricter antitrust rules and transparency requirements are overly burdensome. They claim that narrowing antitrust exemptions could hinder their ability to form alliances, which are essential for efficient global shipping (e.g., sharing capacity to reduce costs and provide better service to remote ports). Carriers also worry that the transparency requirements could force them to disclose proprietary information, giving competitors an unfair advantage.

5.2 Questions About Enforcement Capacity#

Some critics question whether the DOJ and FMC have the resources to effectively enforce OSAEA. Ocean shipping is a global industry, with carriers operating across multiple countries, making investigations complex and time-consuming. Regulators will need to invest in additional staff and technology to monitor carrier behavior and investigate violations, which could strain their budgets.

6. Looking Ahead: The Future of Ocean Shipping Antitrust#

The success of OSAEA will depend on how well regulators enforce its provisions and whether Congress ultimately passes the bill. In the coming years, we can expect to see:

More investigations into carrier alliances for anti-competitive behavior.
Increased transparency in pricing and service terms, making it easier for shippers to compare carriers.
Greater protection for small shippers, as the FMC implements the dedicated complaint process.

Recent developments underscore this trajectory. In March 2026, the FMC issued a significant Order cancelling portions of the World Shipping Council's Cooperative Working Agreement, ruling that broad policy advocacy activities fall outside the scope of antitrust immunity under the Shipping Act. The DOJ and FMC have also strengthened their enforcement partnership through a formal Memorandum of Understanding, with the DOJ providing antitrust expertise for Shipping Act enforcement. In January 2026, the FMC assessed $22.67 million in civil penalties against MSC Mediterranean Shipping Company for Shipping Act violations.

Additionally, OSAEA could inspire similar reforms in other countries. The European Union already eliminated its antitrust exemption for shipping conferences in 2006, and as global trade continues to grow, other governments may look to the U.S. model to address anti-competitive practices in their own ocean shipping markets.

7. References#

U.S. Federal Maritime Commission. (2022). Ocean Shipping Reform Act of 2022 Implementation. Retrieved from https://www.fmc.gov/ocean-shipping-reform-act-of-2022-implementation/
U.S. Department of Justice. (2022). Justice Department and Federal Maritime Commission Reaffirm and Strengthen Partnership to Promote Fair Competition in the Shipping Industry. Retrieved from https://www.justice.gov/archives/opa/pr/justice-department-and-federal-maritime-commission-reaffirm-and-strengthen-partnership
U.S. Congress. (2023). H.R.1696 - Ocean Shipping Antitrust Enforcement Act of 2023. Retrieved from https://www.congress.gov/bill/118th-congress/house-bill/1696/all-info
Holland & Knight. (2026). FMC Draws a Line on Carrier Coordination: Implications of the Commission's WSC Agreement Order. Retrieved from https://www.hklaw.com/en/insights/publications/2026/03/fmc-draws-a-line-on-carrier-coordination