OSRA21 Latest Udpate

Yesterday a majority vote from the members of the House of Representatives passed the Ocean Shipping Reform Act of 2021 (OSRA21), a piece of legislation aimed to address various ocean carrier practices that are injurious to US exporters, importers, truckers and other parties involved in the supply chain. The bill was introduced and authored by Congressman John Garamendi (D-CA) and Dusty Johnson (R-SD).

While the language of the bill is heavily weighted toward US exporters, it also contains provisions that can be beneficial for all shippers. For our importer members, one of the most important items is the provision requiring ocean carriers or marine terminal operators to audit and certify demurrage and detention charges and comply with FMC guidelines for reasonable behavior. We know many of you have suffered with substantial demurrage and detention bills in the last year, and adding an enforcement capability for the FMC to issue penalties could be a significant change leading to adjustments that should benefit all shippers. 

Other provisions include reciprocal trade to promote US Exports, requiring carriers to adhere to minimum service standards, and requiring reporting of tonnage and TEU/twenty foot equivalent unit  information to the FMC on a quarterly basis.

The bill was certainly pushed on the fast track due to the current supply chain crisis as well as the endorsement of the White House. WSSA believes it is a good first step toward meaningful reforms in the shipping industry. The Senate is working on a companion bill and reconciliation of the bills will be unlikely to reach fruition until 2022.

We will continue to keep abreast of this new development and keep you informed of any updates.  Should anyone want more details on the provisions of the bill, please let us know.