IWLA Encourages Conference of OSRA Legislation

IWLA Encourages Conference of OSRA Legislation

In a letter addressed to leaders of the Senate Committee on Commerce, Science and Transportation and the House Committee on Transportation and Infrastructure, IWLA and 90 other trade associations encouraged Congress to conference differences between the Ocean Shipping Reform Act (OSRA) bills, H.R.4996 and S.3580, passed by the House and Senate.

The OSRA seeks to modernize the Shipping Act to address 21st century challenges. Cargo owners and trucks often face increasing detention and demurrage fees for port congestion issues beyond their control. The OSRA would shift the burden of proof regarding the reasonableness of detention and demurrage charges from the invoiced party to the ocean carrier and require carriers to certify that charges comply with federal regulations or face penalties imposed by the Federal Maritime Commission (FMC).

In the letter, the 91 trade associations specifically called on Congress to support the following provisions as part of a conference negotiation of the OSRA:

A requirement for ocean carriers to adhere to minimum service standards that meet the “public interest.”

A certification requirement for a demurrage and detention charge.

An explicit prohibition of carriers from declining export booking.

A provision 1) prohibiting carriers from failing to furnish or 2) causing a contractor to fail to furnish the facilities and instrumentalities needed to perform the transportation services.

A provision allowing third parties to intervene in FMC action against ocean carriers alleging anticompetitive conduct.

IWLA first endorsed the OSRA in October of 2021 and advocated for its passage in Congress. President Biden endorsed the legislation late last year. Pending a conference negotiation and final congressional approval, the OSRA will be sent to President Biden and enacted into law.

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