House approves legislation to ease supply chain challenges

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On Wednesday, U.S. Reps. Peter DeFazio (D-OR), Salud Carbajal (D-CA), and John Garamendi (D-CA) applauded the passage of H.R. 4996, a bill designed to ease supply chain challenges.

DeFazio, chair of the House Committee on Transportation, said the Ocean Shipping Reform Act of 2021 would take steps toward easing supply chain issues by increasing the Federal Maritime Commission’s (FMC) authorizations by 10 percent over the previous fiscal year while strengthening the agency’s oversight and enforcement authority.

“As Americans prepare to celebrate the holidays, passing this bill couldn’t be timelier,” DeFazio said. “This critical legislation will build on actions that House Democrats and the Biden administration have already taken to alleviate our congested ports and boost competition, including passing the Bipartisan Infrastructure Law—which provides $17 billion for ports and waterways—as well as sending the Build Back Better Act to the Senate. It also comes on the heels of my committee holding a hearing last month to discuss solutions to our current supply chain challenges with industry and labor stakeholders across different transportation modes.”

The legislation will also establish a shipping exchange registry; require a new process for detention and demurrage charges; provide safeguards to combat retaliation and deter unfair business practices; and direct a study on options for efficient cargo information sharing.

“As Chair of the Subcommittee on Coast Guard and Maritime Transportation, I’ve held hearings on the ongoing supply chain disruptions and met with countless stakeholders and constituents who are feeling the impacts of these disruptions—including those who have suffered wrongdoing by ocean carriers. The bipartisan Ocean Shipping Reform Act is a big step to get supply chain issues under control, and I commend Representatives Garamendi and Johnson for their leadership and for working with the committee on this issue,” Rep. Carbajal said. “I am proud of the committee’s work on this important legislation, which will prevent wrongfully issued detention and demurrage charges and counter trade imbalances with foreign exporting countries.”

The bill now goes to the Senate for approval.