The view from the Holstein Express showcases the ideal weather for the sea voyage. Photo provided by Joe Miller.

Ocean shipping reform progressing

Last week, the Senate Commerce, Science and Transportation Committee approved the “Ocean Shipping Reform Act of 2022” (S. 3580) to address longstanding supply chain issues and shipping port disruptions. The bill now moves to the full Senate; the House approved a similar measure late last year. Agriculture was well represented among 89 business groups that expressed support for the Senate bill in a late February letter to bill sponsors Sens. Amy Klobuchar (D-MN) and John Thune (R-SD). 

The groups noted that supply chain problems are expected to continue throughout 2022 and will “have a significant effect on inflation as well as continued economic recovery.” They pointed out that one of the biggest issues facing cargo owners and other supply chain stakeholders is detention and demurrage fees charged by shipping ports, terminal operators and common carriers on exporters and importers. S. 3580, among other actions, would formalize a Federal Maritime Commission interpretive rule on detention and demurrage charges and define the parameters for using them. Another provision would require greater transparency of shippers on export bookings, including reasons for declining or canceling bookings. There have been reports of shippers declining U.S. cargo so they could quickly return to foreign ports to load more exports bound for the United States. 

Check Also

Senate Commerce Committee passes Ocean Shipping Reform Act

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) lauded passage …

Leave a Reply

Your email address will not be published.