Today, the U.S. House of Representatives passed the Senate version of Axne-backed shipping reform legislation that will address congestion at U.S. ports, lower prices, and protect Iowa agricultural exports from supply chain disruptions. The bill now heads to the President’s desk for signature.
The Ocean Shipping Reform Act, which passed the Senate in March, is the first major update of federal regulations for the global ocean shipping industry since 1998.
"While profits for major shipping companies have skyrocketed, Iowans -- the second largest exporters of agricultural goods in the U.S. -- are feeling the squeeze and have fewer methods to ship their goods," said Rep Axne. "The Ocean Shipping Reform Act will level the playing field for Iowa's exporters while shoring up our supply chains to protect American consumers and companies from the 300% price increases foreign-owned companies have been charging to import goods. I look forward to seeing how this critical legislation will support consumers and agricultural communities in Iowa and across the country.”
The Ocean Shipping Reform Act makes up one of the components of Rep. Axne’s Supply Chain Solutions Agenda – a collection of bills she’s pushing Congress to pass to strengthen supply chains and alleviate economic disruptions that are affecting Iowa’s small businesses, middle-class families, and agriculture community. This is the third bill of Rep. Axne’s Supply Chain Solutions Agenda to pass the House, including the Bipartisan Infrastructure Law and the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology and Economic Strength (COMPETES) Act, which included a version of the Congresswoman’s Supply Chain Resiliency Act.
Specifically, the Ocean Shipping Reform Act will:
- Require ocean carriers to adhere to minimum service standards that meet the public interest, reflecting best practices in the global shipping industry
- Require ocean carriers or marine terminal operators to certify that any late fees —known in maritime parlance as “detention and demurrage” charges—comply with federal regulations or face penalties.
- Shift burden of proof regarding the reasonableness of “detention or demurrage” charges from the invoiced party to the ocean carrier or marine terminal operator.
- Require ocean carriers to report to the FMC each calendar quarter on total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that makes port in the United States.
- Authorize the FMC to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures, as appropriate.
The legislation is endorsed by more than 94 organizations including the American Farm Bureau Association, National Retail Federation, American Trucking Associations, Corn Refiners Association, National Association of State Departments of Agriculture, National Pork Producers Council, U.S. Dry Bean Council, U.S. Meat Export Federation, and the United Fresh Produce Association.
Original source can be found here.
