The U.S. Senate Commerce Committee recently advanced bipartisan legislation that would level the playing field for American exporters by making it harder for ocean carriers to refuse goods ready to export.
The Ocean Shipping Reform Act would require ocean carriers to certify that late fees, known as detention and demurrage charges, comply with federal regulations. This shifts the burden of proof regarding the reasonableness of detention or demurrage charges from the invoiced party to the ocean carrier.
The bill also would prohibit ocean carriers from unreasonably declining shipping opportunities for U.S. exports. It would require ocean common carriers to report to the Federal Maritime Commission (FMC) each quarter on total import/export tonnage and 20-foot equivalent units per vessel that makes port in the United States.
The bill would establish a new authority for the FMC to register shipping exchanges.
Finally, the bill would authorize the FMC to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures, as appropriate.
U.S. Sens. Amy Klobuchar (D-MN) and John Thune (R-SD) introduced the bill.
The American Association of Port Authorities, representing more than 130 port authorities across North and South America, endorses the bill with more than 100 organizations, including the American Trucking Association.