On June 10th, President Biden spoke at the Port of Los Angeles to obtain approval for the most significant US shipping law reform in nearly 25 years. The Ocean Shipping Reform Act is designed to give the government’s shipping competition commission with greater authority to help U.S. exporters.
“One of the key ways to fight inflation is by lowering the cost of moving goods through the supply chain. The Senate passed legislation and I’m hopeful the House is going to act soon to crack down on these companies I’ve asked and lower the cost”, the President remarked.
The Senate bill would require container lines to certify that their detention and demurrage fees comply with US shipping laws. The first version was approved in March by the Senate.
The Ocean Shipping Reform Act(OSRA) would “Ensure an efficient and competitive transportation system for the common carriage of goods by water in the foreign commerce of the United Sates, encourage the development of a competitive and efficient liner fleet of vessels of the United Sates capable of meeting national security, support the growth and development of United States exports through a competitive and efficient system for the common carriage of goods by water in the foreign commerce of the United States by placing a greater reliance on the marketplace and promote reciprocal trade in the common carriage of goods by water in the foreign commerce of the United States.”
This reform is also calling for the Federal Maritime Commission to create a law that sets standards for carriers that could refuse to load exports and to monitor how many exports container lines can handle.
We will continue to provide updates as they become available.