The Chair of the House Committee on Transportation and Infrastructure Peter DeFazio, Chair of the Subcommittee on Coast Guard and Maritime Transportation Salud Carbajal, and Congressman John Garamendi applauded House passage of S. 3580, the Ocean Shipping Reform Act of 2022, considering key steps toward easing current supply chain challenges.
pecifically, this legislation:
- Expands safeguards to combat retaliation and deter unfair business practices;
- Clarifies prohibited carrier practices pertaining to detention and demurrage charges and vessel space accommodation;
- Establishes a shipping exchange registry through the FMC;
- Expands penalty authority to include refund of charges;
- Increases efficiency of the detention and demurrage complaint process.
This critical legislation will build on actions that House Democrats and the Biden administration have already taken to alleviate our congested ports and boost competition, including passing the Bipartisan Infrastructure Law and sending the Water Resources Development Act of 2022 to the Senate
Rep. DeFazio said.
According to Rep. Garamendi “the ‘Ocean Shipping Reform Act’ will provide the Federal Maritime Commission with the necessary tools to protect American businesses and consumers and address America’s longstanding trade imbalance with China and other countries.”
Following Congressional passage of The Ocean Shipping Reform Act of 2022, S.3580, the World Shipping Council said that it appreciates “the time and effort that Congress has put into crafting this bill and look forward to engaging in productive conversations with the Federal Maritime Commission to implement OSRA in a way that will minimize disruption in the supply chain.”
But as long as America’s ports, railyards and warehouses remain overloaded and unable to cope with the increased trade levels, vessels will remain stuck outside ports to the detriment of importers as well as exporters
WSC also added its dismay over “the continued mischaracterization of the industry by U.S. government representatives, and is concerned about the disconnect between hard data and inflammatory rhetoric.”
The increased rate levels we have seen over the past years are a function of demand outstripping supply and landside congestion, exacerbated by pandemic-related disruption