· The house of representees recently passed The Ocean Shipping Reform Act (OSRA) by a vote of 369 to 42. This reform to US shipping law is the most widespread reform in over 25 years and aims to force container lines to have the burden of proof for detention and demurrage invoicing. This reform act will also provide additional oversight by the FMC or the Federal Maritime Commissions to review and monitor container lines responsibility to load exports.
· This reform however does not include any additional oversight or governing of the record high container rates that have provided historically exorbitant profits for container lines while causing increased inflation for consumers.
· President Biden is expected to sign this reform into law after asking for ORSA to be passed on Friday. During his speech at the Port of Los Angeles President Biden said “the rip-off is over”.
· The real question is will this reform help to curb raising shipping costs for companies and lower consumer prices? The outcome is unclear at this point however any drop-in fees charged to consignees and shippers can only be seen a positive helping to improve the bottom line for many companies and consumers alike.
Thursday June 16, 2022
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