Case, Moylan Reintroduce Bipartisan Measure To Ban Discriminatory Treatment And Pricing Of Shipping Of Goods To U.S. Locations Outside Of The Continent

He is joined on the measure by Members of Congress who represent Guam, Puerto Rico, American Samoa, and the Northern Mariana Islands

News Release from office of Rep Ed Case, Washington, DC, January 17, 2025

(Washington, DC) – U.S. Representative Ed Case (HI-01) today announced the  re-introduction of his bill in the U.S. House to end what he called “the discriminatory and exclusionary shipping practices faced by residents and businesses in Hawai‘i, Alaska, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, the Northern Mariana Islands and other U.S. territories.” 

U.S. Representative James Moylan (R-Guam) is the co-lead on the measure, with co-sponsors U.S. Representatives Pablo José Hernández Rivera (D-Puerto Rico), Aumua Amata Coleman Radewagen (R-American Samoa), Kimberly King-Hinds (R-Northern Mariana Islands), and Stacey E. Plaskett (D-U.S. Virgin Islands).

Case said H.R. 380, the Affordable Shipping for All Act, “will ensure that no shipping company, including the United States Postal Service, can impose discriminatory rates or exclude non-contiguous areas from receiving shipments. It will also require that shipping rates for non-contiguous areas reflect the actual cost of service, rather than arbitrary price increases.”

Case continued: “This blatant discrimination and exclusion is illustrated by Hawai‘i, my home state. We are over 2,500 miles from the West Coast and depend on shipping to bring in more than 90% of the products we need. Like our other non-contiguous family, we do not have the same manufacture, transport and delivery options as does the contiguous continental U.S.”

“I’d like to thank Rep. Case for his leadership in the matter of fair shipping practice, and I’m honored to co-lead the Affordable Shipping for All Act with him,” said Rep. Moylan. “Guam and Hawaii naturally share many similarities, but all non-contiguous areas are at a severe disadvantage in domestic shipping. I fully support this bill as it represents a step in the right direction in solving maritime disparities in the U.S.”  

“We introduced legislation so that USPS and companies like Amazon, which sell products online, don’t charge more for shipping to Puerto Rico, Hawaii, Alaska, and other jurisdictions outside the 48 contiguous states,” said Rep. Hernández Rivera.

“The people of our islands depend heavily on shipping for many goods, from basic necessities to construction materials, so cost increases in shipping can severely impact family budgets,” said Rep. Radewagen. “Thank you to Congressman Case, and I’m happy to cosponsor and support this bipartisan effort that protects the economies that rely on shipping the most.”

“One of the most significant challenges shared by those living outside the Lower 48 is the unaffordable cost of goods and materials,” said Rep. King-Hinds. “In the Northern Marianas, the people I represent work hard to live lives comparable to their fellow Americans in the states, but the reality is that the very basic necessities of food, consumer goods, and essential materials are far more expensive. A dollar simply doesn’t stretch as far in non-contiguous areas as it does in the mainland.

“I want to thank Congressman Case for shining a spotlight on this disparity in Congress, and I am proud to join him in advocating for solutions to lower costs for Americans outside the Lower 48, including those in the Northern Marianas.”

“The Virgin Islands, other U.S. territories and non-contiguous states continue to deal with discriminatory and exclusionary practices from the U.S. Postal Service and other shipping companies, which have become more pronounced within the past few years,” said Rep. Plaskett. “The Affordable Shipping for All Act is a critical piece of legislation that will ensure shipping companies, including the U.S. Postal Service are held to a uniform standard of equitable treatment.

“This is especially vital for residents in our non-contiguous districts who depend so heavily on shipping to access consumer goods, prescription medicine and other essential items. I would like to thank Congressman Case for his willingness to lead this timely bill and his inclusion and awareness of the Virgin Islands and other U.S. territories.”

Case said rather than treating us equally, residents and businesses of the non-contiguous U.S. face four persistent and unfair shipping practices that drive up costs and make life harder for millions of Americans:

“First, as confirmed by the Federal Trade Commission, many online retailers outright refuse to ship basic products our parts of the United States, effectively treating our areas as if we are foreign countries. This exclusion prevents millions of Americans from even accessing essential goods.

“Second, even when retailers do offer shipping to the non-contiguous areas, they frequently deny customers free shipping options, even though such options are readily available for customers in the contiguous U.S. This is true even when the actual cost of shipping from the continental U.S. to a non-contiguous area is higher than to another location in the continental U.S. This leaves residents in these areas at a distinct disadvantage when trying to purchase products online.

“Third, when private shipping services are made available, the prices are often inflated and bear no reasonable relation to the actual distance. For example, the cost to ship a 2-pound package from Los Angeles to Hawai‘i can exceed $45, while the same package from Los Angeles to New York City, the same distance, costs only $14. This price disparity is both unreasonable and unjust.

“Fourth, the United States Postal Service (USPS) also treats the non-contiguous areas unfairly. It recently created a new Zone 10 for shipments to Hawai‘i, Alaska and other non-contiguous areas, which will increase shipping rates for Priority Mail Express, Priority Mail and USPS Ground Advantage packages to and from those locations by 5%. The introduction of Zone 10 fundamentally discriminates against the non-contiguous parts of our country, which runs directly counter to the foundational USPS charge to provide equal access to the U.S. mail.”

Attachments:

· Text of bill is here

· Case remarks on the bill are here

HR380: Text, Status