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US House passed Ocean Shipping Reform Act of 2021 on December 8
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The bill prohibits ocean common carriers and marine terminal operators from retaliating or discriminating against shippers that have patronized another carrier
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It directs that rules should be established to prohibit ocean common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention fees
The US House of Representatives passed legislation on December 8 providing for the first major revamp of US international ocean shipping laws in more than two decades as bottlenecks at the nation’s ports continue to disrupt supply chains.
The Ocean Shipping Reform Act of 2021 (OSRA) “revises provisions related to ocean shipping policies and is designed to support the growth and development of U.S. exports and promote reciprocal trade in the foreign commerce of the United States,” according to a release from Congress.gov.
Among other provisions, the bill:
- Prohibits ocean common carriers and marine terminal operators from retaliating or discriminating against shippers because such shippers have patronized another carrier, or filed a complaint;
- Requires the US Federal Maritime Commission (FMC) to publish and annually update all its findings of false certifications by ocean common carriers or marine terminal operators and all penalties assessed against such carriers or operators;
- Directs the FMC to establish rules prohibiting ocean common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention fees;
- Authorizes the FMC to initiate investigations of an ocean common carrier’s fees or charges and apply enforcement measures, as appropriate.
Essentially, OSRA aims to crack down on unreasonable practices by container shipping lines, bolster US enforcement against uncompetitive carrier practices, and improve transparency for exporters.
The passage of the bill comes as retailers struggle to cope with growing delays in cargo movement because of supply chain disruptions. The congestion buildup at key US ports such as the Los Angeles and Long Beach port complex now threatens to derail the holiday season highly anticipated by businesses and customers while also adding to the mounting rates for trans-Pacific ocean freight.
The Ocean Shipping Reform Act of 2021 was introduced by US congressmen John Garamendi and Dusty Johnson and was approved by the House with a vote of 364 to 60. The bill now goes before the Senate for further consideration.
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