Ocean Shipping Reform Act Passes Senate
The Ocean Shipping Reform Act, which aims to end unreasonable detention and demurrage and make ocean carriers accept more exports, passed the Senate by a voice vote on March 31.
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The Senate and House versions of the bill are different, with some agricultural trade groups saying the House bill is more proscriptive. But one of the sponsors of the House bill has said they will find a compromise and get it done (see 2203180050).
In the Senate bill, the Federal Maritime Commission is instructed to issue a final rule "further defining prohibited practices by common carriers, marine terminal operators, shippers, and ocean transportation intermediaries ... regarding the assessment of demurrage or detention charges."
It is also instructed to issue a rulemaking within six months "defining unreasonable refusal to deal or negotiate with respect to vessel space," language that is aimed to reduce the number of declined export shipments.
Importers and exporters hailed the bills; the trade group that represents ocean carriers says that it is problematic and will not solve port congestion.
Senate Majority Leader Chuck Schumer, D-N.Y., said on the Senate floor that he hopes the bill will become law soon.
"This bill will make it harder for ocean carriers to unreasonably refuse American goods at our ports, while strengthening the Federal Maritime Commission’s ability to step in and prevent harmful practices by carriers," he said. "This bipartisan shipping bill is exactly the sort of thing that the Senate should focus on: it’s cost-cutting, it’s bipartisan, and it will directly give relief to small businesses and consumers alike."