Shipping costs are a significant factor in the price of goods for people living in noncontiguous U.S. areas, contributing to a higher cost of living. This bill matters because it attempts to address these high costs by providing a concrete, objective standard for what constitutes a 'reasonable' shipping rate, rather than leaving it open to broad interpretation.

If this bill becomes law, it could lead to increased price transparency and potentially more competitive pricing for consumers in these regions by tying domestic rates to global benchmarks. If it does not become law, the current, less specific standard for 'reasonable rates' would remain, which some argue gives shipping companies too much leeway in setting prices and can result in higher costs for consumers.