Vessel-Operating Common Carriers (VOCCs) are required to comply with demurrage or detention billing practices established by the Ocean Shipping Reform Act of 2022.
As previously advised to the trade, there is no phase-in period for this provision of law. The law, and its requirements, related to demurrage and detention charges, became effective June 16, 2022.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
VOCCs must come into compliance with all self-executing provisions in the Ocean Shipping Reform Act of 2022, specifically the requirements for demurrage and detention billing.
The Federal Maritime Commission will pursue enforcement action against any conduct perceived to establish open-ended obligations or include coercive tactics circumventing the clear direction of Congress.
During June, President Joe Biden signed into law the Ocean Shipping Reform Act (OSRA). The law aims to stop “shipping companies taking advantage of American families, farmers, ranchers and businesses,” the president said.
OSRA was created on the back of exporters lobbying politicians to intervene during the supply chain crunch seen in the US during the pandemic.
The law will allow the US shipping regulator, the Federal Maritime Commission, to launch probes of containerlines’ business practices and to apply enforcement measures, require ocean common carriers to report to the FMC total import/export tonnage each calendar quarter and would bar ocean carriers from unreasonably declining opportunities for US exports.
