On Thursday the U.S. Senate’s Commerce, Science and Transportation Committee is scheduled to hold an executive session and hearing on the Ocean Shipping Reform Act of 2022 (OSRA22). PPAI has joined with 88 other trade associations in a letter to the committee advocating for the bill’s passage. The legislation, S. 3580, implements common-sense reforms to address long-standing issues in the maritime shipping industry that have exacerbated supply chain disruptions, particularly during the pandemic. Businesses in the promotional products industry have faced significant delays in moving and receiving cargo promptly, and PPAI has actively worked to support of the bill’s passage.
The letter, submitted to the Senate committee by the National Retail Federation, notes that bill enjoys strong bipartisan support, and that expert consensus is that the supply chain disruptions that the nation’s exporters and importers have been facing will continue throughout 2022. This continues to have a significant effect on inflation and the ongoing economic recovery.
The letter reads, “While the supply chain has been stretched from end-to-end with disruptions at every stage, there are systemic issues that need to be addressed in the maritime cargo environment. OSRA22 as introduced will address several of these issues.”
One of the biggest issues facing cargo owners and other supply chain stakeholders has been the issue of detention and demur rage. Port congestion has led to a significant increase in these fees for cargo owners and truckers.The Federal Maritime Commission has published its “Interpretive Rule on Detention and Demur rage” but as only guidance, it is not followed by ocean carriers or marine terminals. OSRA22 would formalize the rule and define the parameters for these charges.
The legislation also seeks to update key provisions of the Shipping Act, which hasn’t been updated in over two decades. The letter says, “While some changes have been a positive for the industry overall, we need to ensure the regulations remain applicable to today’s market reality. With the creation of the carrier alliances, contraction of the number of carriers in the market, changes to chassis management and others, we believe the time is right for these important reforms. It is especially important for Congress to strengthen the role of the FMC to regulate perceived unfair business practices.”