On Wednesday, December 8, 2021, the U.S. House of Representatives approved the passing of the Ocean Shipping Reform Act (OSRA) of 2021. The new legislation addresses complaints from U.S. shippers regarding ocean carrier storage fee policies and container prioritization practices.
The bill was sponsored by John Garamendi, the Democrat Representative for California’s 3rd Congressional District, and received a majority of the House’s support. OSRA will need approval from both the U.S. Senate and President before it is signed into law.
OCEAN SHIPPING REFORM ACT OF 2021
This bill 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.
Congressional Research Service Legislative Summary
- Sets forth requirements for operating a shipping exchange involving ocean transportation in the foreign commerce of the United States;
- 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 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;
- Requires ocean common carriers to adhere to minimum service standards that meet the public interest;
- 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;
- Requires ocean common carriers to report to the FMC each calendar quarter on total import and export tonnage and the total loaded and empty 20-foot equivalent units per vessel that makes port in the United States;
- Authorizes the FMC to initiate investigations of an ocean common carrier’s fees or charges and apply enforcement measures, as appropriate; and
- Revises annual reporting requirements for the FMC on foreign laws and practices to include practices by ocean common carriers.
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