OSRA21: Update to Shipping Act

We know everyone importing or exporting has been suffering due to the global crisis in the shipping industry and extreme congestion in almost every area. The problems have caught the attention of Congress and the President, as well as US Secretary of Transportation Pete Buttigieg. The FMC has also opened an investigation into the practices of major ocean carriers in regards to surcharges. On top of this, a large importer, MCS Industries, filed a formal complaint against COSCO and MSC, alleging that these carriers reneged on their contractual obligations. Today, a bill authored by Congressman John Garamendi (D-CA) and Dusty Johnson (R-SD), is being introduced to address various practices that are injurious to US exporters, importers, truckers and other parties involved in the supply chain. WSSA has added support to this bill with added comments:

Beverage alcohol represents a significant volume of cargo exported from the USA, from California wine to Kentucky bourbon and everywhere in between. This industry also represents a massive volume of imported products from virtually every country in the world, going to importers and distributors across every state in the USA. These companies are dependent on ocean shipping to operate their business, and are often held hostage and forced to pay thousands and thousands of dollars in demurrage and detention due to forces beyond their control to ship or receive their cargo. We are looking for reasonable behavior and transparency and support revisions in the Shipping Act outlined in OSRA21 that will pave the way for enforcement of reasonable practices.  Alison Leavitt, Managing Director, Wine and Spirits Shippers Association.

Should any of you want details on the proposal, please contact us and we will provide a summary of OSRA21 for your review.