In a rare show of bipartisanship, the U.S. Senate passed a version of the Ocean Shipping Reform Act designed to reduce supply chain bottlenecks and help agricultural exporters.
“I am glad to see the bill pass the Senate,” International Fresh Produce Association official Robert Guenther reportedly said. “The Ocean Shipping Reform Act is essential to our industry and the U.S. export market. We encourage our representatives to reconcile the differences with the House and get the bill to the President.”
Following a unanimous voice vote in the Senate, the measure heads back to the U.S. House for reconciliation. The House previously moved a version forward with wide-reaching bipartisan support on a 364-40 vote. The Act seeks to rectify the disadvantages American ranchers and growers suffered during the peak of the supply chain bottlenecks. Shippers reportedly fast-tracked empty containers back to China and Asia to turn around products and secure higher profits. Perishable agricultural exports were jeopardized by lengthy delays.
“Farmers have lost out on up to $4 billion in agricultural exports because of lack of access to export containers, record shipping costs, and harmful surcharges. Limited trade has also hampered farmers’ ability to get crucial supplies like fertilizer at a time when supply chains are already stressed,” American Farm Bureau Federation President Zippy Duvall reportedly stated. “AFBF encourages lawmakers from both chambers to work quickly to reconcile differences in each version of the legislation and get it to the president for his signature, so farmers can continue putting dinner on the table for families in America and overseas.”
The International Fresh Produce Association reportedly sent a letter of support co-signed by nearly 40 organizations, including the California Fresh Fruit Association, Western Growers, and California Citrus Mutual. More than 100 organizations have endorsed the Ocean Shipping Reform Act from wide-reaching industries. The Senate version was sponsored by Democrat Sen. Amy Klochubar and Republican Sen. John Thune. These rank among the critical protections U.S. exporters can anticipate.
- Ocean carriers must certify that late fees — known as “detention and demurrage” charges — comply with federal regulations or face penalties.
- Shift the burden of proof regarding the reasonableness of “detention or demurrage” charges from the invoiced party to the ocean carrier.
- Prohibit ocean carriers from unreasonably declining shipping opportunities for U.S. exports.
- Ocean common carriers must report total import/export tonnage and 20-foot equivalent units (loaded/empty) per vessel that make port in the United States.
The measure would also empower the Federal Maritime Commission to initiate investigations into potentially unethical and unlawful shipping practices if signed into law. Industry insiders expect that fast-tracking empties back to Asia while American produce, goods, and materials linger would come to an end.
Sources: logisticsmgmt.com, npr.com
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