Shipping Reform Act of 1979

Shipping Reform Act of 1979 - Amends the Shipping Act, 1916, to stipulate that contracts for foreign commerce between water carriers (or conferences of carriers) and shippers or consignees which provide reduced rates in exchange for a fixed portion of the shipper's or consignee's business shall provide for a spread between such rates and ordinary rates charged contract shippers that is: (1) not greater than 18 percent of the ordinary rates if both the shipper and consignee are party to the contract; or (2) not greater than 13 percent of the ordinary rates if only the shipper or consignee is a party to the contract.

Requires common carriers by water to file with the Federal Maritime Commission for its approval: (1) intermodal agreements with other specified types of common carriers; (2) acquisition or merger agreements of any United States' common carrier by water by another domestic common carrier by water; (3) agreements for the acquisition of 50 percent or more of the operating assets of any domestic water carrier by another such carrier; and (4) shippers councils agreements.

Stipulates that agreements to be performed entirely within a foreign country or between foreign countries shall not be subject to the Commission's jurisdiction. Allows United States' carriers involved in such an agreement to submit such an agreement to the Commission for its approval and once approved exempts such agreements from the antitrust laws.

Establishes a presumption that agreements between carriers are in the public interest and places the burden of showing such an agreement violates such Act on the party opposing such an agreement.

Establishes civil penalties for violations of this Act. Makes such penalties exclusive and excepts such a penalized action from any penalties under the antitrust laws.

Deems agreements involving water carriers (except those which provide or limit access to cargo) to be approved by the Commission 60 days after such an agreement is filed with the Commission.

Authorizes the Commission to suspend such effective date for a period of up to seven months to investigate such an agreement upon complaint.

Authorizes shippers or consignees to organize into shippers' councils to: (1) consult and exchange information regarding their general level of rates, practices, or services; and (2) agree upon common positions for consulting with common carriers by water in foreign commerce, conferences of such carriers, or the parties to intermodal agreements regarding their general level of rates, practices, or services. Exempts such discussions from the antitrust laws.

Stipulates that no civil penalty may be assessed when the Commission finds that a carrier's rate is unreasonable.

Requires the participants in agreements which fix or regulate carrier rates or regulations by vote of the parties, to engage the services of an independent neutral body to police the obligations of such carriers.

Authorizes the President to prohibit vessels of a foreign country to enter into the United States if the foreign government involved discriminates against United States-flag vessels. Stipulates that such a sanction may not be applied against a nation of the Western Hemisphere with which the United States had in force on May 1, 1979, a Memorandum of Understanding or a Memorandum of Consultation concerning the maritime trades between the nation and the United States that provides for equal access to cargo controlled or impelled by the United States or such nation.