More Reagan/Republican stupidity. “The free market is better!” Right.
«During the 1980s, however, Congress and Ronald Reagan abandoned the regulated-competition approach. Reaganites argued that the FMC, which at the time had a budget of just $11.8 million, had become a bloated bureaucracy, and reasoned that the U.S. could achieve economic efficiency and lower shipping prices if ocean carriers were not required to treat all shippers equally. To that end, Congress passed a series of bills during the Reagan and Clinton administrations that stripped the FMC’s ability to regulate ocean-carrier cartels.
The first-order effect was a return to the destructive competition and underhanded exploitation that had characterized the early-20th-century market. As the rise of containerization led to ever larger ships, fixed costs grew. This increased carriers’ incentives to fill empty space on ships, even at steep discounts, because at least they would lose less money than if the space were unsold. Still, profits fell, and carriers turned to waves of mergers made possible by the federal government’s simultaneous retreat from antitrust enforcement. In the seven years after President Ronald Reagan signed the Shipping Act of 1984, seven major carriers were snapped up by the competition, compared with just one during the entire period from 1966 to 1983.
American-flag carriers, which had higher costs than foreign counterparts, were particularly hurt by the rate wars, especially after the Reagan administration withdrew subsidies that had helped U.S. carriers defray the costs of paying crews livable wages. Foreign corporations acquired American President Lines and SeaLand, the two largest U.S. carriers at the time, in 1997 and 1999 respectively, leaving the United States with no globally competitive ocean carriers. Meanwhile, shipyards in Asia began to enjoy massive government subsidies.»
Here, Read This 