Famine is Stalking 5 Supply Chain Consequences of the War in Ukraine, The Geopolitical Impacts on the Global Supply Chain, Five Long-Term Changes Covid Caused for Shipping and Logistics, 2022 Shipping Reform Act Addresses Rail Delay Causes, US Port Delays: What You Need To Know Right Now, How to Protect Your Business Against Supply Chain Disruptions, Transportation and Supply Chain Resources. DB Schenker is taking immediate steps to assure that any Detention/Demurrage invoices generated by Vessel Operating Carriers (VOCS) in association with shipments when DB Schenker is acting as an NVOCC, are compliant with new OSRA Regulations. The short term resourcesDemurrage and Detention (D&D). Amy Klobuchar (D-Minn.) and John Thune (R-S.D.) Westbury, NY 11590. Why it matters: Street dwell times are linked to shipper detention costs and are a major factor in causing port and supply chain congestion. "Ultimately, the Senate version passed and will benefit shippers and transportation intermediaries alike," said Rich Roche, Senior Vice President. NVOCC forwarders also need to comply with conditions applicable to ocean carriers, however, there is a safe harbour clause shielding them liability in certain situations. On June 16, 2022, President Joseph R. Biden signed into law the Ocean Shipping Reform Act of 2022 (OSRA), enacted as Public Law 117-146. So dont worry. The list of items that must be included in an invoice are those one would reasonably expect in terms of the facts that triggered the D&D, but they also must include contact information by which shippers can request mitigation of fees. Why it matters: Adopting technology including higher levels of automation is a major consideration by the freight industry in addressing increasing demand for container capacity at U.S. ports. 7. A version of the legislation has already passed through the U.S. House of Representatives . Summary: The FMC, consulting with the U.S. Coast Guard, shall initiate a rulemaking defining unreasonable refusal to deal or negotiate with respect to vessel space. The Ocean Shipping Reform Act, bipartisan legislation introduced by U.S. Sens. Earlier this week, the U.S. House of Representatives approved the Ocean Shipping Reform Act of 2022 (OSRA 2022) in a 369-42 vote. Orlando, FL: Today, Rep. Val Demings (FL-10) will vote for the Ocean Shipping Reform Act, legislation to fix supply chain issues, grow markets for American businesses, and bring down costs for Florida families. We are not sure what is motivating this rulemaking but from our experience there was no public outcry for a need for this regulatory action. Demand for shipping containers is up86% over first-quarternumbers as retailers gear up for the annual rise in demand that results from a return to school and the upcoming holiday Not only has the war in Ukraine had a devastating impact on the people of the country, but it has also sent profound shockwaves through global supply chains that were already reeling from years of disruption caused by pandemic-induced lockdowns. However, there may be some hidden gems in resources not previously available which might make a difference in the Demurrage and Detention (D&D) arena. An early return date (ERD) is a policy introduced to help manage the flow of export containers into ports to reduce congestion. Ocean Shipping Reform Act set for signature Written by Nick Blenkey Image: Architect of the Capitol After passing the House yesterday, S. 3580, the Ocean Shipping Reform Act of 2022 (OSRA), is on its way to President Biden, who is no fan of the giant container alliances and is looking forward to signing it. Summary: Office of Management and Budget shall approve an information collection and publication of street dwell time for containers. Deadlines: Not later than 60 days after enactment for approving the information collection and not later than 240 days after enactment (and not less frequently than monthly thereafter) for publishing dwell time statistics. Sens. We want to give you the opportunity to make an informed decision for or against the use of cookies, which are not mandatory for the technical functions of the website. Following its passage by the U.S. Senate in late March, the U.S. House of Representatives last night followed suit, passing the Ocean Shipping Reform Act (OSRA) of 2022 by a 369-42 margin. The office will help with mediation, facilitation and arbitration to resolve issues involving cargo shipments amongst other things. Pre-pandemic shipping rates for a forty-foot container could be $1,300, but by September 2021, jumped to $11,000. }); Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. AFIA Urges President to Sign Shipping Reform Bill OMB will also publish statistics relating to the dwell times used in intermodal transportation at the top 25 ports, including inland ports (subject to appropriations funding). The result will be higher prices and more delays. US House Passes Ocean Shipping Reform Act. Ahead of his signing off on the Act, US President Biden once again repeated recent tropes regarding a 1,000% increase in freight rates and a mistaken . Should a VOC fail to make necessary corrections to non-Compliant invoices within a reasonable timeframe, DB Schenker has the option of initiating a formal Charge Complaint with the Federal Maritime Commission to advise them of any non-compliances for their investigation. The FMC rules are based on reasons for delay and whether the shipper had taken sufficient steps to maintain their timelines but could not for reasons beyond their control. The common carrier shall (1) be provided an opportunity to submit additional information related to the charge in question; and (2) bear the burden of establishing the reasonableness of any demurrage or detention charges pursuant to section 545.5 of title 46, Code of Federal Regulations (or successor regulations). Your company organized a trucking company to transport goods to the port over the next week. This is complemented by the fact that now, the burden of proof lies with carriers when complaints are filed against them. Here you will find answers to your questions about shipping documents, payment options, how to get a quote and more. Home Freight Forwarder Freight Services FBA Amazon Shipping About New FAQ Contact. It is our sense that the basic issues relating to Port Congestion are more reflections of economic realities, and these could change on their own, but the D&D issues will remain with us, but in less drastic formats than we have been experiencing. Loaded & Rolling (Enterprise Fleet News/Analysis), Biden slams ocean carriers ahead of Port of LA speech, Maritime official wants more control over ocean carrier contracting, New legislation would strip ocean carrier antitrust protections. Sam Chambers June 14, 2022 2 2,285 1 minute read The White House The US House of Representatives yesterday voted overwhelmingly in favour of the Ocean Shipping Reform Act (OSRA), which. first introduced the bill in February 2022. Carrier retaliation is clearly prohibited, addressing issues regarding fear of retaliation which has long been an issue for forwarders. For example, imagine you just successfully finished a grueling negotiation to deliver a large shipment to an overseas buyer. There is no easy fix to problems stemming from changes in ERDs. Temporary Emergency Authority. gptAdSlots.push(gptSlot); Public disclosures outlining all findings of the FMC on false demurrage and detention invoice information and the penalties imposed or even assessed against common carriers, will be published and listed by each ocean carrier company. Suddenly, all your careful planning is for nothing, and you face extra costs at every turn. googletag.cmd.push(function() { These investigations can lead to refunds and penalties to ocean carriers. This has time frame of no later than April 1, 2023. Why it matters: Some shippers of cargo that qualify as hazardous materials have complained they have been unreasonably denied vessel space as demand for capacity has increased over the last two years. Information from its description page there is shown below. The NVOCC Role. President Biden has signed into law S. 3580, the "Ocean Shipping Reform Act of 2022.". The House of Representatives passed the Senate of the Ocean Shipping Reform Act of 2022 on June 13th by a vote of 369-42. Press Release. In all, revisions were made to almost 20 different regulations within OSRA, with effective dates for the revisions ranging from immediate effect to up to 3 years. Follow us on social media to stay updated on our latest efforts. 4. googletag.pubads().collapseEmptyDivs(); The worst part is that ERDs can, and all too often, change with little notice. S. 3580 is a bill in the United States Congress. The U.S. House of Representatives approved legislation Monday to improve oversight of ocean shipping, which supporters say will help curb inflation and . Representatives Dusty Johnson (R-S.D.) The Ocean Shipping Reform Act of 2022 S. 3580 which was based on the Ocean Shipping Reform Act of 2021, H.R. Last month, President Biden signed into law the Ocean Shipping Reform Act of 2022 on the grounds of the need to reign in the international container shipping industry which is accused of contributing to U.S. inflation through increased freight rates. Charge complaints. Dwell Time Statistics. Advertisement "I've said many times, tackling . This act revises requirements governing ocean shipping to increase the authority of the Federal Maritime Commission (FMC) to promote the growth and development of U.S. exports through an ocean transportation system that is competitive, efficient, and economical. googletag.pubads().enableSingleRequest(); . President Biden signed the Ocean Shipping Reform Act of 2022 (OSRA 22) into law. }); googletag.cmd.push(function() { 2nd September 2022 Seatrade Maritime Podcast Seatrade Maritime by Informa Markets. The long term fixes, which require Federal Maritime Commission rule-making, establishes additional requirements requiring the FMC to issue rules related to certain fee assessments, prohibited practices, and establishment of a shipping registry, and prohibited conduct for ocean carriers. We are a full-service transportation partner that can help your business face challenges in transporting goods worldwide. }); Summary: The FMC shall issue regulations that set standards for registered national shipping exchanges. Section 5 clearly prohibits carrier retaliation, where refusal of space or even a threat to retaliate is deemed an offense. We trust (hope) that this section will get different attention if such retaliation should become prevalent in the D&D scenario, but there are unaddressed issues in the refusal to negotiate arena. It was developed and issued as a decree to alleviate problematic measures by ocean shipping companies that are affecting American importers and exporters. For example, the bill requires the FMC to (1 . There are other longer term projects related to adoption of technology at U.S. We would have liked to see regular import container dwell time averages on a weekly basis for loads in order to measure when ocean carriers and/or NVOCCs are not utilizing due diligence in removing loaded containers from terminals within free times, or at least within the average dwell times for such loaded containers. These statistics include a) total street dwell time when the equipment is not in a terminal, and, average out of service percentages for equipment. Among other provisions, the bill April 4, 2022 The Ocean Shipping Reform Act (OSRA) took another step on its course to being signed into law, with the United States Senate late last week unanimously voted to sign off on it on a voice vote. Interestingly, there are currently similar regulations, including 46 545.1 Interpretation of Shipping Act of 1984 - Refusal to negotiate with shippers' associations, which in the midst of recent such refusals to negotiate with shippers associations go unnoticed or regulated. The Ocean Shipping Reform Act of 2022 (the Act) was signed by President Biden on Thursday, June 16, 2022. }); Congress will soon schedule a vote as early as next week on the Ocean Shipping Reform Act of 2022. President Biden again slammed ocean carriers as he signed Ocean Shipping Reform Act (OSRA) into law. }); Summary: The FMC shall enter into an agreement with the Transportation Research Board under which the TRB shall carry out a study and develop best practices for on-terminal or near-terminal chassis pools that provide service to marine terminal operators, motor carriers, railroads and other stakeholders that use the chassis pools, with the goal of optimizing supply chain efficiency and effectiveness. }); Summary: The FMC shall initiate a rulemaking defining unfair or unjustly discriminatory methods used by carriers against their customers. On June 16, 2022, President Biden signed into law the Ocean Shipping Reform Act (OSRA), bipartisan legislation aimed at providing relief to U.S. importers, exporters, freight carriers, port operators and other companies experiencing sharp spikes in shipping costs and supply chain disruptions since the beginning of the COVID-19 pandemic. So, in the face of such a tumultuous environment, how can shippers manage these risks and better operate under the constraints of ERD? Why it matters: New oversight authority will require higher staffing levels. UPDATE: President Biden signed the bill in a ceremony on Thursday afternoon, June 16. Early return dates (ERDs) can give anyone the chills. window.googletag = window.googletag || {cmd: []}; President Biden signed the Ocean Shipping Reform Act into law in June 2022 as his administration tries to reign in the nation's highest inflation in 40 years. Were all in this together. And the worst part is that ERDs change with almost no notice for shippers. Until you again have American Flag international carriers this will be of minimal help. read the original congress.gov source: s.3580 ocean shipping reform act of 2022 As Green continues to monitor the situation, stay up-to-date on freight and trade news by following us on Facebook . In fact, in medical terms, this might be a classic case of proposing a cure that is worse than . An emergency order could include requiring ocean carriers or marine terminals to share directly with shippers, railroads and motor carriers information relating to cargo throughput and availability to ensure the efficient transportation, loading and unloading of cargo. 4996 was passed by the House on the 13th of June 2022 and presented to the POTUS to be signed into Law.. That means there are other bills with the number S. 3580. The authorCarlos Rodriguez is a Washington D.C.-based partner with the law firm Husch Blackwell LLP. Law No. We all know the importance of providing goods and services to markets around the world. In addition, there are provisions directing authorities to examine the situation to improve chassis availability, increase technological capabilities at ports and improve inland ports to reduce congestions in the future. The lingering pandemic and high consumer demand in the U.S. resulted in high levels of congestion and delays for cargo owners. The bill changes protocols for detention and demurrage (D&D) fees, prohibits carriers from declining U.S. exports unreasonably, and requires quarterly reporting procedures, among other reforms. These provisions are closer to the recent headlines, at least with respect to D&D remedies. President Biden Signs Ocean Shipping Reform Act of 2022 | C-SPAN.org June 16, 2022 President Biden Signs Ocean Shipping Reform Act of 2022 President Biden signed a bill into. }); googletag.cmd.push(function() { With advances in technology and the surge in stakeholder interest in creating a more efficient flow of goods, ERD nightmares can soon become a thing of the past. It has bipartisan support in both the House and Senate and is expected to pass. Discrimination of HAZMAT by Ocean Carriers. It is in everyones best interest to work together to find workable solutions to todays problems. Press Release. He graduated from Florida State University majoring in English and business. Upon receipt of a submission of such an informal complaint (this term is not one pursuant to the formal Complaint procedures of the FMC regulations) with supporting documents, the Commission shall promptly investigate the charge with regard to compliance with section 41104(a) and section 41102. Problems arise because ERDs change far too frequently. We know the challenges you face and the hardships brought about by changes in ERDs. window.googletag = window.googletag || {cmd: []}; first introduced the Ocean Shipping Reform Act in February 2022. 5 Immediate Impacts of the Ocean Shipping Reform Act of 2022 The protections afforded by this act are robust and will help the FMC address faulty practices and curb rising shipping costs. The longer term pictureThe statute provides for a Shipping Exchange Registry to require exchanges such as the New York Shipping Exchange (NYSHEX) which provided a platform for certain ocean carriers to enter service contract agreements with shippers. Monday, June 13, 2022 Congress passes first major ocean carrier reforms since 1998 on Monday.
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