Update on supply chain legislation: Ocean Shipping Reform Act 2021
The Ocean Shipping Reform Act of 2021 (OSRA) passed in the House yesterday (364-60) and now the Senate is preparing their version of the bill. OSRA legislation contains provisions to address various ocean carrier policies that are negatively impacting US exports, imports, truckers and other parties in the supply chain.
A few things that OSRA 2021 aims to do:
1. Expand the reach of the Federal Maritime Commission (FMC)
2. Impose minimum service standards on carriers (specifically to address ocean carriers from unreasonably declining export cargo bookings if the cargo can be loaded in a safe and timely manner)
3. Prohibit retaliation from ocean carriers on any party that has patronized another carrier, filed a FMC complaint, or any other reason
4. Reform demurrage and detention rules, require a certification that any demurrage or detention charges under any tariff/contractual obligation comply with all FMC rules and regulations and establishes penalties for non-compliance. The current container supply chain crisis certainly pushed this bill forward and addressing the export refusals and unfair demurrage and detention practices would benefit our members who have had to constantly deal with these issues in this past while.
We will continue to monitor the progress of the Senate with this legislation and update you on new developments.