Source: United States Senator Amy Klobuchar (D-Minn)
Last month, Klobuchar introduced the Ocean Shipping Reform Act with Senator John Thune (R-SD) to help American producers export their products to the international market
WASHINGTON – In tonight’s State of the Union address, President Biden highlighted the need to take action to reform the global shipping industry through changes included in legislation introduced byU.S. Senators Amy Klobuchar (D-MN) and John Thune (R-SD) last month. The Ocean Shipping Reform Act will make it harder for foreign-owned international ocean carriers to unreasonably decline shipping opportunities for U.S. exporters and set stronger rules for what the international carriers can charge U.S. exporters, helping to address supply chain disruptions and vulnerabilities.
“It’s simple: when shipments are delayed, products don’t arrive on time, businesses suffer, and costs for consumers go up. That is why I partnered with Senator Thune on bipartisan legislation to increase U.S. exports and address supply chain disruptions. I am glad to have the President’s support as we work to pass these critical reforms, and I will keep fighting to ensure American exporters can get their goods to market in a timely manner for a fair price,” said Klobuchar.
In addition to Klobuchar and Thune, the legislation is cosponsored by Senators Tammy Baldwin (D-WI), John Hoeven (R-ND), Debbie Stabenow (D-MI), Roger Marshall (R-KS), Gary Peters (D-MI), Jerry Moran (R-KS), Richard Blumenthal (D-CT), Todd Young (R-IN), Mark Kelly (D-AZ), Mike Crapo (R-ID), Tina Smith (D-MN), Marsha Blackburn (R-TN), Cory Booker (D-NJ), Joni Ernst (R-IA), Catherine Cortez-Masto (D-NV), Mike Braun (R-IN), Raphael Warnock (D-GA), Jim Risch (R-ID), Michael Bennet (D-CO), Kevin Cramer (R-ND), Ron Wyden (D-OR), and Roy Blunt (R-MO).
The Ocean Shipping Reform Act is supported by the American Association of Port Authorities, the Agriculture Transportation Coalition (AgTC), the National Retail Federation, the National Industrial Transportation League, the Home Furnishings Association, the Hardwood Federation, National Milk Producers Federation, American Trucking Associations (ATA), ADM, National Milk Producers Federation, U.S. Dairy Export Council, Tyson Foods, the American Home Furnishings Alliance, Auto Care Association, International Association of Movers, Harbor Trucking Association, American Apparel and Footwear Association, Travel Goods Association, American Pyrotechnics Association, National Association of Chemical Distributors, American Equipment Manufacturers, National Marine Manufacturers Association, ATA Agriculture and Food Transporters Conference, ATA Intermodal Motor Carriers Conference, California Automotive Wholesalers’ Association, DairyAmerica, Fragrance Creators Association, Association of Bi-State Motor Carriers, California Dairies, Inc., Sartori Cheese, Upstate Niagara Cooperative, Inc., International Ingredient Corporation, Associated Milk Producers, American Bankers Association, International Warehouse Logistics Association, Institute of Scrap Recycling Industries, Agri-Mark, Inc., Northeast Dairy Cooperatives, Retail industry Leaders Association, Association of Home Appliance Manufacturers, United Dairymen of Arizona, Maryland and Virginia Milk Producers Cooperative, Midwest Dairy Coalition, International Dairy Foods Association, High Desert Milk, the Consumer Technology Association, Northwest Dairy Association, Darigold, Schreiber Foods, Dairy Farmers of America, First District Association, the Minnesota Soybean Growers Association, Leprino Foods Company, the North American Meat Institute, Meat Import Council of America, Leather and Hide Council of America, Milk Specialties Global, Minnesota Corn Growers Association, South Dakota Soybean Association, Pet Food Institute, Western Growers, Allports Forwarding Inc., California Fresh Fruit Association, Capay Canyon Ranch, Double River Forwarding LLC, Fornazor International, IMC Companies, International Fresh Produce Association, National onion Association, Pacific Northwest Asia Shippers Association, Pandol Bros. Inc., SB&B Foods LLC, ShoEi Foods USA, Specialty Crop Trade Council, Specialty Soya & Grains Alliance, Total Logistics Resources Inc., Williams Clarke Company, Inc, and California Farm Bureau.
The Ocean Shipping Reform Act will:
- Require ocean carriers to certify that 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;
- Prohibit ocean carriers from unreasonably declining shipping opportunities for U.S. exports, as determined by the FMC in new required rulemaking;
- Require ocean common carriers to report to the FMC each calendar quarter on total import/export tonnage and 20-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; and
- Establish new authority for the FMC to register shipping exchanges.
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