The US Senate yesterday passed the Ocean Shipping Reform Act, as the House of Representatives did in December. Now the two versions of the bill \u2013 the Senate\u2019s and the House\u2019s \u2013 will need to be reviewed and differences resolved, before a single version can go to President Biden for signing.<\/p>\n
Senator John Thune, co-sponsor of the legislation with Senator Amy Klobuchar, said the legislation, \u201cwould level the playing field for American farmers, exporters and consumers by making it harder for ocean carriers to unreasonably refuse goods that are ready to export at US ports. Especially with record inflation in prices of goods, this legislation would also benefit consumers by promoting the fluidity and efficiency of the supply chain.\u201d<\/p>\n
Klobuchar emphasised the legislation\u2019s expected positive impacts on port congestion and shipping costs. \u201cOcean carriers that are mostly foreign-owned have reported record profits. This legislation will help American exporters get their goods to market in a timely manner for a fair price,\u201d she said.<\/p>\n
The act would strengthen the investigatory and enforcement authority of the Federal Maritime Commission (FMC) and give the agency a new rule-making authority. Ocean common carriers would be required to report to the FMC each calendar quarter on total import and export tonnage and TEUs (loaded\/empty) for each ship that calls at US ports.<\/p>\n
On March 22, the World Shipping Council issued a statement saying that the Ocean Shipping Reform Act \u201caddresses none of the root causes of the US landside congestion.\u201d The Council noted that \u201cimport congestion is also consuming the capacity and space needed to ensure the uninterrupted flow of US exports.\u201d According to the WSC, the House version of the bill \u201cwould make existing congestion worse.\u201d<\/p>\n