PolicyBrief
H.R. 380
119th CongressJan 14th 2025
Affordable Shipping for All Act
IN COMMITTEE

The "Affordable Shipping for All Act" ensures fair shipping rates to noncontiguous U.S. areas by preventing higher charges or exclusion from shipping services, except for items valued over $10,000. This levels the playing field for consumers and businesses in areas like Alaska, Hawaii, and Puerto Rico.

Ed Case
D

Ed Case

Representative

HI-1

LEGISLATION

Affordable Shipping for All Act: No More Inflated Shipping Fees to Noncontiguous States and Territories...Unless It's Over $10K

The "Affordable Shipping for All Act" aims to level the playing field for folks living outside the contiguous U.S. when it comes to shipping costs. The bill straight-up prohibits shipping companies, including the USPS, from charging higher rates for deliveries to or from places like Alaska, Hawaii, Puerto Rico, and other U.S. territories (SEC. 2). It also prevents these companies from refusing to ship to those areas altogether (SEC. 3).

Shipping Shake-Up: What Changes?

This bill is all about making shipping costs fairer for residents of noncontiguous states and territories. If it passes, you won't be paying extra just because you live in Anchorage instead of Atlanta, or Honolulu instead of Houston, provided that what you are shipping is valued less than 10,000 (SEC. 4). For example, if a company charges $10 to ship a pair of sneakers from New York to Los Angeles, they must charge the same $10 to ship those sneakers to San Juan, Puerto Rico.

Real-World Ripple Effects

Imagine a small business owner in Guam who regularly orders supplies from the mainland. Under this bill, their shipping costs could drop significantly, allowing them to be more competitive. Or consider a family in Alaska ordering furniture online – they'd pay the same shipping as someone in Florida, which could make a big difference in their budget. These changes could boost local economies in these areas by making goods more affordable and accessible.

The $10,000 Question

Here's the catch: the law doesn't apply to items valued over $10,000 (SEC. 4). So, if you're shipping, say, a high-end piece of industrial equipment or a luxury car to Hawaii, the shipping company can still charge a premium. This exemption might create a weird incentive for companies to inflate prices on items just under that $10,000 threshold to make up for potential losses on more expensive goods. For example, if a specialized tool costs $9,500, a company might be tempted to bump up the shipping cost significantly, knowing they can't do the same for a $10,500 item. It also opens the door to potential misclassification of goods to sneak under the $10,000 limit.

Challenges on the Horizon

While the bill aims for fairness, there might be some bumps along the road. Shipping companies could potentially raise rates across the board to offset the costs of equalizing prices for noncontiguous areas. This could mean slightly higher shipping fees for everyone, even those in the contiguous U.S. It's a classic case of unintended consequences – a well-meaning law might end up impacting people in ways nobody expected. The bill also uses specific terms like "consumer products," "producer goods," and "shipping services," which are clearly defined (SEC. 5) to avoid confusion. It’s always good to see that kind of clarity in a bill, so everyone knows exactly what’s covered and what’s not.