Ocean Shipping Reform Act passed in US House of Representatives

The bill was sponsored by Johnson and lawmakers John Garamendi (Democrat). Both introduced the bill in August this year following months of severe supply chain delays and anti-competitive and unfair practices on behalf of foreign flagged ocean carriers.

It will ensure a more competitive global ocean shipping industry, protect American businesses and consumers from price gouging and establish reciprocal trade opportunities to reduce the United States’ longstanding trade imbalance with export-driven countries like China, Johnson’s office said in a press release.

The bipartisan legislation now heads to the Senate for consideration. The act is supported by more than 360 national, state and local groups and businesses.

The act would establish reciprocal trade to promote US exports as part of the Federal Maritime Commission’s (FMC) mission; require ocean carriers to adhere to minimum service standards that meet the public interest and reflecting best practices in the global shipping industry; and require ocean carriers or marine terminal operators to certify that any late fees—detention and demurrage charges—comply with federal regulations or face penalties.

It would also shift burden of proof regarding the reasonableness of ‘detention or demurrage’ charges from the invoiced party to the ocean carrier and prohibit ocean carriers from declining opportunities for US exports unreasonably.

The National Retail Federation and the Retail Industry Leaders Association have applauded the development.

Fibre2Fashion News Desk (DS)