New Federal Law Will Impose Greater Transparency on Ocean Carriers
Washington, DC, July 5, 2022-President Joe Biden has signed the Ocean Shipping Reform Act of 2022 (OSRA), aimed at reducing port congestion and related fees in order to keep goods moving throughout the country.
Per the White House, OSRA "authorizes appropriations for the Federal Maritime Commission (FMC) for fiscal years 2022 through 2025; establishes additional requirements and prohibited conduct for ocean carriers; requires the FMC to issue rules related to certain fee assessments, prohibited practices and establishment of a shipping registry; and authorizes the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers."
Citing a related ad slogan by the National Retail Federation, NRF senior vice president of government relations David French said the move has the potential to "'Lower Inflation Now’ and ease pressure on American businesses, workers and consumers.” NRF is one of many trade organizations in support of the bill.
Following the bill's June 16 ratification, FMC chairman Daniel Maffei said they will begin with new rules addressing export shipments.
In a statement, the World Shipping Council, which represents the world’s largest container line operators, said it "look[s] 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." However, it also stated that, "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. ... Until the import congestion is remedied, export congestion will persist."
The group called on the government to invest in its landside logistics infrastructure.
Related Topics:FEI Group